Transcripts For CNBC Squawk Box Europe 20171103

So presumably theres a guarantee these initial customers will actually get their hands on the device. The iphone x is important, because its about protecting margins at the Company Margins dipped below 38 guidance now is for margins to recover to 38 to 38. 5 , which means that the cost of the device is okay for customers and theres a real enthusiasm for the iphone x which is more expensive than the latest upgrade to the iphone 8. Sales of the device will be closely watched. There have been declining expectations on the back of some initial reports about what the x looked like and also production to where street forecasts dipped 2 2. 8 billion from when the iphone event was first launched to where we are today. So the market was guiding lower on what it was expecting from the new device when you talk about the device, why is it important . Hardware is about 90 of sales at apple as opposed to Services Revenue. Lets show you what were seeing on the boards in europe. It will come down to the data a bit as we got numbers coming out from the states on the jobs report the payrolls number expected to show a big build in october after we had the recovery from a dip in the month of september. Look for that event. A lot of earnings crossing this morning as we see the reaction in stocks. Insurance at the bottom of the charts autos at the top a split as we fall about 0. 2 in this basket. Telcos, were seeing a decline here about a tenth of a percent healthcare trades weaker as well and banks, trading lower soc gen, the French Company has dropped about 4 , which is the top end of the range seen in premarket trading action on the back of these numbers. Retail stocks, a move higher and accelerating as we speak its been weak for the retail basket next was disappointing at the start of the week. They are trading higher. Next trying to pull back into the green for the trading session. Household goods, pandora at the top. Technology moving higher media stocks trading up by close to half of a percent autos at the top, led by renault, strong move, about 4 higher on the stock at the start of the session lets get into what were seeing in the overall indices i was mentioning about how interesting the trade was on the ftse yesterday we had that 25 basis point rate hike from the bank of england. The first rate hike since 2007 the outlook from there on in was dovish, about two rate hikes right out until 2020 the market doesnt know how to price another 50 basis points in we saw the pound drop against the euro and against the dollar and there was a prop for the stock market we got clear through the 7,500 handle again 7568 as we stretch higher. 7506, tentative on the French Market today some of that down to socgen. The dax, 0. 2 higher recovering all of yesterdays higher when it was down 0. 8 13,469 are the levels. If we see more action that will be at 13,500 the ibex trading lower swiss market lower, slightly into the green for the italian stock market lets look at apple suppliers. We continue to chase coverage on the iphone x in london we see some early demand for the product. We are trading positive. Dialogue semiconductor, austria microsystems trading higher. The suppliers are moving on the back of the release. There was thought there might be production glitches and demand may not be strong because of the price tag. Some of that waned after the forecast from tim cook overnight. Green is charging into some of these charts this morning. Lets push on to socgen and look at that chip 3. 89 , roughly around that window, the bank posted a 15 decline in net income to 932 Million Euros missing expectations this as the bank added 300 Million Euros to its litigation reserves as it continues to resolve legal disputes with u. S. Authorities. The litigation provisions now tally up to 2. 2 billion euros. Lets get out to Joumanna Bercetche from paris you have been looking through the report what do you make from the reaction in the stock . I think, as you said, its been a challenging quarter for them the top line misses. Revenue came in lower than expectations net income also a disappointment but lets drill down into their individual businesses. So if you look at socgen, about twothirds of the revenue comes from the retail bank retail bank obviously still afflicted by low interest rates. That doesnt seem like it will change any time soon the bigger one is the Investment Bank Investment Bankrevenues down 14. 7 . I took the opportunity to ask the ceo what outlook was for the Investment Bank from here. Lets listen what happened in the Third Quarter beyond the traditional season, typically a wait and see mode, in particular in light of the decisions of the central banks, and the European Central bank regarding its Monetary Policy so what we saw is less flow, less structured products Going Forward what we will see in europe, as we know the whole Regulatory Framework for the financing of the economy means more Capital Markets the kind of Business Model we have is also very much related to saving products you know the structured products we talk about, its kind of capital guarantee or Something Like this. Plus an index. Im convinced about the potential of these products, and i dont believe the low volatility is structural im positive Going Forward well present our plans on the 28th of november but i think we have the right Business Model Going Forward thank you very much for that on societe generale. Lets look at klm, which had a jump in profit they have had a tremendous year. The numbers look good still. As improved price trends boosted Third Quarter earnings, unit revenues increased 4. 5 . It expects further increases in the Fourth Quarter one thing which is very interesting, i dont know if you have a view on the Airline Sector as well airfranceklm has had a stunning rally. I think its 160 or something its still only trading five times forward but a stock to have a rally that much and still be on such a low multiple, either has to be a manufacturer of vehicles or an airline. Nothing else is valued so slowly its a classic fixed Business Airlines didnt see all bad bumps in seats, a few hundred dollars goes straight to the bottom line. As the air france hairmce chair saying earlier, as you need to get people in, they just have gone through a phase where theyre able to do it. Emirates has found the luxury side is a problem. The Budget Airlines have found problems but air france is recovering and coming through its consolidation phase. This is an industry that is perhaps worse than the commodity industry for investing at the top of the cycle, acting so aggressively because of the leasing market its easy to start up a business, get scale. The barriers to entry are not that much. You talked about emirates. Its key what the mideastern and far eastern carriers will do next, whether its the china inspired trade or the middle east inspired trade, that will take us to the next level. Many of us have our skeptical head on when we think is there profit enough for all these players who are chasing the same luxury market. Some are state owned. Some have big backers. Theyre not all playing on the same Playing Field the name of the game is consolidation. If these Companies Need to consolidate, because the fixed class is so high, they need to be big entities. They need a home base. If you have competitors out there who have a big, deep pocket, its much more difficult to compete against them. Lets get back to Joumanna Bercetche. We reestablished the line with her. Im interested what the cfo of airfranceklm has to say about this its a question i thought was worth asking their legacy carrier is only now getting involved in the low Cost Airline Industry theyre launching a new airline called june, targeted at millenniums, foraying into that space. Coming at an interesting time given the number of high profile administrations weve seen in the last couple of months. I asked about the excess capacity in the industry and his view for further consolidation from here. Lets listen already it was a big deal as we had that meeting over the summer were seeing delta enter the same space as klm, at the same time weve taken 31 stake clearly we are seeing steps towards consolidation. We believe in airfranceklm as many of our colleagues it is key for industry its highly fragmented we have to continue to go to a more stronger consolidation into the industry which is vital if you want to see profitability of the industry as a way to increase and to improve so does you agree theres a t of excess capacity into the system we think theres too many actors in an industry too fragmented there hes highlighting the fact that the european Airline Industry is more fragmented thats u. S. Counterparts, which underwent restructuring in the last couple of years he sees further consolidation in the sector, and as mentioned still a lot of excess capacity there. Airfranceklm themselves have done a couple of high profile cart mership Shi Partnership with delta, air virgin, and with asia, thats part of the strategy Going Forward. They have the big deals on the crossatlantic front, but also foraying into the low Cost Airline Industry as well with the launch of their new carrier june in december brilliant work. Thank you very much. What a lovely place paris looks in the autumn. Thank you very much for that excellent coverage, Joumanna Bercetche, on Society General and on klm another stock thats reversing moving in the wrong direction is altice. Whats going on there . The man behind altice has huge aspirations to grow on both sides of the atlantic. Competition is the number one game in town when you talk telcos in france you can see the extent of the fall down 7. 4 . Significant in the sense that it adds to the losses weve already seen on the stock. Down 28 on altice in the past three months alone the Telecom Group lowered its guidance, all of this on the back of a fall in the Third Quarter and profits in france. French sales fell more than 1 core operating profit fell more than 3 during the period. The Cable Company says it expects ebita to come in at the low end of the growth target reinforces the view that theres too many players in the French Telecom scene. Down 8. 3 . Renault, lets look at that stock. Up 3. 8 currently. Its risen after they say they bought 10 of 14 million shares sold by the french state to loreal this is an interesting one its reported stronger than expected Third Quarter sales boosted by strong growth in china. The Cosmetics Company says demand for highend products helped offset Sluggish Performance in its massive market range what about the nestle stake . None of us know what will happen a note from the broker has said it could be 10 increase if loreal buys back the nestle stake eventually keep a watch on that in terms of what were seeing elsewhere, erste bank out with Third Quarter net profits ahead of expectations. Earnings rose thanks to the Stronger Economic environment in europe Net Interest Income fell, but the npr ratio improved to 4. 3 erste said it was on track to pay a higher dividend this year. The ceo said that Economic Conditions for the region looked good the region of Eastern Europe is doing extremely well. Were growing a lot faster than the rest of europe so our loan growth is 5 plus. But still its relatively difficult to really show a strong increase on the Net Interest Income side fees are doing well. Risk is coming down dramatically coming up on the show, unity . Unilever expanded tea brands it picked up taseo from starbucks. Well talk about that when we return lets take you to more stock movers talking about en plus, the hydro power and Aluminum Company controlled by the Russian Oligarch it was priced at 14 per global depository receipt, listed in london currently at 13. 80, down 1. 4 . So, a mixed reception to some ipos this week the swiss drugmaker novartis is exploring options for its dermatology business which could lead to a 1 1. 5 billion sale. The unit includes ointments and creams, and would keep with recent moves to cut back on noncore assets unilever agreed to buy starbucks tazo tea assets for just shy of 4 400 million unilever is in the process of diversifying its tea portfolio to include a wider range of herbal drinks. Vestas shares sunk to the bottom of the stoxx 600 after the u. S. Proposed tax reform bill included provisions to slash tax credits for the wind industry by more than a third. The credits will be phased out by 2020. Thats the problem when you have subsidies in the industry. Lets get to andrew mullener what is the most important thick ri thing dictating the destiny of treasuries a, Jerome Powell and what the fed does next december b what mr. Trump is doing on tax reform or not . Or c, the data which were getting on a regular basis and payroll the biggest of those or none of the above . D, all of the above okay. We know jay powell is the new fed chair as of february thats important it gives us an idea of the reaction function of the fed Going Forward. It will be similar to the reaction function now. The data, thats always the underlying driver. Tax reform is always part of that data outlook Going Forwards frankly its looking good in the u. S. So from the starting point of today, i think you got Jerome Powell looking to keep increasing rates at a gradual pace you look to see a further acceleration in growth but its really inflation that will drive a change in reaction function at the fed to start lifting rates bond markets seem to be correlated with a lot of this data we hear rates going on the bond market is following its own tune theres been no reaction to whats happening elsewhere yeah. Its a confusing element one of the things thats tripped up Bond Investors repeatedly over the past five years has been the impact of global qe the impact of other monetary policies stances in other large economies. So when you look at the ecb and the action theyve taken, the persistent dovishness of the boj, theres a demand for fixed income out there from an institutional perspective, its looking for a home when u. S. Treasuries offer value, you see the reaction from those overseas pools of capital that pursue those bonds that they perceive to be highly attractive from a yield perspective. Yes. What it means is it confounds the domestic story so we look at the u. S. , we say bond yields could be higher than now. But actually its not just u. S. Investors who will be owning those assets one point we raised is that Jerome Powell doesnt have experience as an economist thats not his remit, but he has worked in Financial Markets and private equity in particular and worked in treasury if you look at areas of the markets where there might be excess around valuations, private equities buying or trying to sell because of peak levels, and also on bond yields, isnt this the right experience at the time when we look for whether we got too much asset inflation right now . Yeah. Its sort of relatively recent phenomenon over the last 20, 30 years that you have the academic in charge of the central bank. Previously industry experience had been priced more highly. Yeah i dont think his resume is in any way too his detriment, as you say. Perhaps its too his benefit a view towards regulation or deregulation, a view towards financial conditions, this bubblelike market that sometimes persist, having a view on that, thats in no way a detrimental thing. Perhaps a positive but were in a situation, what is the best qualification for the central banker one key thing these days has to be leadership. Criticisms leveled at janet yellen was that so often fed governors would go awol and start saying things counter to policy and the markets surely the fed governor needs to be somebody showing leadership and but we have so many speakers out there in the public arena. When you have a market thats been a oneway bet, its been good having a lot of different speakers, because its put a twoway bet in the market on the dollar and some other assets, hasnt that worked in Janet Yellens favor she is the communicator at the fed. She knows how this will be received maybe but whats happened also i markets get confused move one way and then another. During the good old days of greenspan, volcker, bernanke, the markets knew where the fed was going. What direction there was we lost different voices and theres a sense of maybe discord within the fed i think thats less healthy than throwing out different ideas i disagree. I think you get more price discovery and you have a market going one way higher, you might get a firmer stock market as well i think its a good thing they are communicating, jawboning, because it cant be janet yellen who can be keeping easing Monetary Policy in place and retreated from this massive overhang of bonds. Surely its a good thing having so many speakers out there you can always leak alternative views. But you need to have some sort of consistency within the committee. Alternative views can come they dont have to come from the governor what are you offering us in terms of return . What can you offer viewers who are terrified about the stock market levels or want to own something in the fixed income face its an open question. When you look at developed market fixed income, it doesnt offer a lot of return. The benefits of taking a global approach means you can dip in markets where theres more to offer or being more nimble around your strategies give our viewers something slightly away from the mainstream that you think they are not looking at in the fixed income space where they can have a safe, decent yield if you look towards europe, parts of the periphery look attractive from a risk return perspective, even then youre not talking about big yields youre talking about 2 , 3 for the long end of the peripheral market its not something you get excited about. You go into the emerging markets, you can find 7 in places like mexico that looks interesting also noise around nafta, political stories as well there. There is yield available but you have to do your homework all right were going to leave it there. Richard will stay with us until the end of the show. Coming up, doors open for customers for the apple iphone x. More after the break accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. My business was going nowhere. So i built this kickin new website with godaddy. Building a website in under an hour is easy 68 of people. Who have built their website using gocentral, did it in. Under an hour, and you can too. Type in your business or idea. Pick your favourite design. Personalize it with beautiful images. And. Youre done and now business is booming. Harriet, its a double stitch not a cross stitch build a better website in under an hour. Free to try. No credit card required. Gocentral from godaddy. Your bbut as you get older,ing. It naturally begins to change, 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. Apple earnings sore past expectations as Stores Across the world open with the most mobile phone, iphone x Society General net income falling 10 as low waits and litigation expenses continue to press the bottom line. We are hoping to be able to find a resolution of the two disputes in the coming weeks or months. Altice falls at the open as the telco lowers guidance on the back of falling sales in its home market and tv customer losses in the united states. And shares sink on the first day of conditional trading in the first major russian ipo in london since western sanctions were placed on moscow. Stocks in europe have been trading for a half hour so far some stronger signals on certain markets. In particular the uk market still reaching for fresh highs we are not far off the 7,600 level, bouncing up by a third of a percent. Strong day weakness in sterling pushed the market further ahead weaker on other markets. France is a weak one only up by a tenth of a percent on the broader benchmark index by sector, a lot of earnings crossing today thats impacting some of these sectors in the Red Construction materials, telecoms, insurance and banks. Socgen behind some of the losses in banks altice also disappointing in france, impacting telecoms elsewhere, autd tos are strong,d media stocks bouncing 0. 6 you can see this morning that were chasing the story around apple. Thats impacted some Big Technology suppliers in europe after expectations around for the ten and production hiccups which have been calmed overnight after apple results. Comments from tim cook lets look at what were seeing on the individual stocks renault, 4 higher after the french state reduced some state in the auto. The stock has gained again it was one of the stronger players in session about 2. 6 higher. Pandora quite strong today as well the buy rating for barenberg they have the largest Production Capacity to gain market share in the sector so looking at upside production. Hugo boss, which was reporting yesterday, the Luxury Company moving south today by 4. 1 a weak day erste Bank Reporting as well net income coming back a bit the bank seeing a drop in the share price. Vestas also trading lower. And altice, one of the more competitive challenges in the market is revenue sliding. Thats probably what youre seeing across many telcos. Look. Just looking at the moves on the stock market, very little move in either direction but huge individual stories earnings season vestas and altice getting smashed. Hugo boss getting smashed. This goes to the active manager story, you see market inefficiencies some individual stocks dont justify the rally and youre seeing that wake up call when the earnings cross so a reset some stocks getting undervalued so they pop when earnings cross. Its true i expect a lot of this in the Retail Sector over the coming months thats right. The one thing about being an active manager, this rotation can be annoying. You make your picks, you set your portfolio up, and the market moves away from you what a shame. Good thing youre wellrewarded. Used to be. I have a large violin the iphone x officially launched in london after throngs of apple fans camped out overnight to grab the latest device it comes out as the company turned in an Earnings Report that beat expectations on the top and bottom line. Arjun is amongst the it says revelers here at the Regent Street store i have walked nast store many times. You are a fan of technology. You are also a fan of rival devices as well. So, once we get away and we clear away from the behavior of the first day revelers as we call them, is this handset good enough to keep apple in the ascendancy and keep a disparity between their margins and the rest of the industry i think what youve seen is a lot of the people buying the device and mentioning the fact this is a radical phone, and it will improve apples margins and weve seen guidance go from the next quarter an cysts expect that margin to up over the next few quarters as supply kinks get ironed out. This phone continues to sell well the thing is, of course, yes, these are not new features on some phones theyve been seeing on competitor devices before, but now apple has caught up on a technological level, but the apple fan base is so sticky, so, so sticky, thats why youve seen lines around the corner on Regent Street. Thats something analysts are excited about. They referred to this fiscal year as the iphone super cycle kicked off with the ten. Thats something that will drive the next leg higher for apples profits and this, of course, is a make or break device for apple shares so far demand seems strong and sales are going fairly well. Isnt the clever thing about apple, they built this environment so the iphone is important, its 50 of sales, but the whole wrapping around of products that now interact with each other and get across the system the environment the key thing here thats it the key word here, ecosystem we have seen the Services Revenue grow double digit foors few quarters thats because they locked people into the ios ecosystem, they are trying to push other services, apple pay, apple music. Thats part of the key strategy here, getting those devices into the hands of people and keeping them inside of the ecosystem thats what apple has done well. Also a lot of people had questions about the apple watch when it was released this year they released the apple watch 3 with an internet connected and cellular capabilities so far its about 3 of revenues in this quarter. Thats a positive. The apple watch grew 50 this quarter according to tim cook. So the ancillary devices around the edges are also growing make no mistake, the analyst and investors are look at iphone sales, particularly the iphone x, and that is what will drive this company over the next year. Ha, you almost called it an x, youre as bad as me i did i feel like the battle is lost there. As for me a birdie tells me you have been speaking to people about this. Have you i have. One chap was here from tuesday morning. I went all the way down the line and caught up with a few people and said is the price tag not too much why are you spending that much on this phone . Heres what they had to say. The apple x is a break through from previous iphones. Thousand dollar price point, too much whatever they charge, people will buy they have the brand name they have iphone x, its an iphone, whatever price they charge, people will buy it its quite high as a student and to resell, ill make a few hundred on it. Probably worth it. The facial recognition, the oled finish, yeah, a flesh finish i tend to want the latest answer with the 1,000 price tag, it seems so high. Is that not too high for you not in terms of apple i want to have the latest, coolest gadget so people are excited about the new features, face i. D. , the almost bezelless display, the large screen, the oled screen. One guy said i usually upgrade every two years when my contract ends, this is the first time he upgraded within a year because he felt the has radically changed. Just 3 million iphone xs will be available today. Close to 30 million or 40 million will be sold by the end of the year. Tim cook saying were working on that, working to meet demand if those are sorted out, this could be a big hit for apple thanks, arjun a quick look at the numbers. No one is really buying devices for thousand pounds or front up costs. Often its ton over a monthly basis. 47. 95 a month for 12 months, the plus, 38. 35. The difference is effectively about 10 quid a month. Just going to go for the top range, arent you . If its 10 quid a month, most consumers dont add up the numbers and say what is my total at the end of the day. Is that it . 38. 35. Is that the contract if you go in today and you wanted to buy the phone on a monthly basis, rather than paying the upfront cost why would i wanted to pay 152 pounds base rates have gone up massively the broader question is if you want to pay up front or per month. 48 pounds for a handset and 7. 5 interest on that and i have to buy my Data Financial literacy, most people not krufrnling th icruncr number i thought that guy was great, the third one there, he said i do it to myself every year its no worse than our age group, richard, going off and buying a new bmw or mercedes every year speak for yourself. The thing is if you look at the older phones, the higher end, the models that had a lot of memory, theyre already over 1,000 were in that territory already. What apple is clever at is adding 15 , 20 on to the last price to keep things moving and keep people interested keep those margins supported. Richard, thank you. Going to some more stocks that were chasing for you the german Metals Recycling group, befesa started trading in frankfurt today. The ipo is the largest in germany this year ahead of delivery hero and hello fresh. Befesa controls about half of the european dust recycling model. Should we let knew a secret some of these companies we dont know anything about. This is one of them today well speak to the ceo, wolf lehmann never heard of them should we talk about something but youre worth it . Loreal we know about this one. Unexpected Third Quarter sales bolstered by china demand for highend products helped offset Sluggish Performance in the mass market range. Strong growth is boosting the luxury market to a fresh high this year according to a report from bain company each sector in the market seems different in terms of growth rates, luxury cars up 6 , are we seeing a full blown recovery in r luxury or just by sector we have this year a stronger recovery across categories in luxury while luxury cars were growing also in the previous year, personal luxury goods had a couple of stagnant years this year started again growing. We have in particular the young generation entering the market, in particular the millennial 85 of the growth this year is due to purchases from younger generations. In particular from china but not only from china. In terms of the chinese demand story weve seen things here before. The volatility it gives to a luxury firms pfrl going for broke in china, having refrench again and going again. Is there a learning curve these companies have learned from their exposure to emerging markets from what happened last time around . I think they learn a lot on how to treat customers, not in a transactional way but longterm value way. So china in particular has been in a way been learning from the past year from high differentials. Chinese consumers were getting more and more sophisticated, more and more aware. And at a certain point they disappointed around the pricing policies in the last 18 months a lot has changed in the strategy of the brands they are going towards prior parity across the globe step by step in particular they are treating all the consumers like local customers. But if they are really local, they are traveling so there is an increasing attention to put the consumer at the Center Chinese customers are currently the most sophisticated luxury buyer across the globe so china is for them a very important test market of their new strategies, both in terms of product, marketing, communication and its where they really innovate the most i know you dont talk about individual stocks, but in luxury theres the gucci effect, which was effectively a turnaround strategy based on putting a whole lot of very fashionable, not just logo printed product on shelves, and pricing the product quite expensively for the customer, also the other impact behind what gucci was doing, basically turning this into fast fashion, limiting production time that it was taking to bring the product to market. How is this impacting demand across the industry . Its been adopted not just by gucci but by a mub number of brs now. Thats very important gucci like many other brands are really changing the rules of the game to embrace the new value of the customers. In particular the millennials, but not only the millennials we are talking millennial state of mind across generations a lot of products, many different products, a lot of entertainment in the store through product and visual merchandising, communication that is story telling, very visual, very scinemagraphic is telling a story not only to Luxury Products but increasing the territories of conversation. And gucci is embracing super well these new trends, and mainly the strategy focusing on millenniums. I think that the reaction of consumers to this change in strategy has been super bold and super strong and thats also very important point. So this industry is supply driven if the brands are doing something in line with the new trends and in line with the new values of the younger generation, the market reacts strongly me strongly good reading if youre interested in investing in luxury, read the content of the report yeah. Ahead, not content with being an oscar winning actor, Gwyneth Paltrow has set up a lifestyle company. Well talk to her about that after this break looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. 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. 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. And a hollywood icon, not content with conquering the silver screen. Gwenyth paltrow has entered the Business World founding a Company Called goop. They was also one of the first actors to accuse Harvey Weinstein with Sexual Harassment you have been speaking with Gwenyth Paltrow. I interesting, the perception of her is very different from how she actually is. I traveled to l. A. To her goop headquarters for our trailblazer series out tonight we talked about her business, her life and of course importantly about whats going on in hollywood with women this was the first time she spoke out about it have a look. I think its incredible whats happening this is long overdue theres been this incredible confluence of events thats led to women coming together and feeling safe in numbers to come forward and talk about their experiences across all Different Industries and, you know, its my hope that this is the beginning of something important and different and that my daughter, when she goes into the workplace wont experience what you and presumably you, i and millions of other women have had to endure and so, you know, it feels it feels important and happy that i have played a small part in that young actresses, what advice would you give them . Theyre coming to hollywood, obviously, as weve seen, its brutal what advice would you give them to navigate . Thats a really good question its difficult because i think a lot of i think a lot of people are drawn to this industry because theyre looking to find wholeness through fame or and i would say if thats why youre here, then dont. The only reason to do this is if you have an incredible burning desire to channel creativity and to really be an artist first and foremost i think that the culture were living in now is rewarding cheap fame i think that a lot of people think that the industry is a way to do that im heartened by what i see in my daughters generation these girls are kick ass like, they are strong. They know themselves they are very protective of their physical space theyre not like i was at 13 theyre very sure footed theyre thinking big i think Something Interesting is coming in the next generation. I think these girls are amazing. Id like to think i have two young daughters, i would like to think things have changed. I remember reading a biography of howard hughes, the same repulsive behavior was going on in the 1920s and 1930s so i would like to think when i hear strong brilliant actors like Gwenyth Paltrow speaking about things changing, this has always been an industry that acted a certain way. It has. Then joan collins came out and said she was a victim of the casting couch. She was warned by other actresses, dont get in the car with him he will do this and that we didnt realize how much of it was going on actresses like Gwenyth Paltrow who are speaking out, their hope is that it will change for the next generation of women, for her daughters, for your daughters, for my daughters, for the next generation. Thats why all women in the corridors of westminster to politics to business are speaking out because they have to change things its hard to say it will change longterm, but shortterm it has its like a public lynching if you have gone near that activity, youre called out on special media. You have probably much more cautious behavior now. Thats the difference in old hollywood or Old Westminster you would not be called out as much now with social media you can. All of these women who are coming out to speak are very brave. Just a quick word talk about goop. Its actually part of her name g. P. Thats where it comes from steve, well picked up thank you very much some of her products are seen expensive or controversial about 20 seconds we will watch the show tonight. She addresses that i will watch the show she was just made ceo last year, profits have tripled so something is going right. Fantastic interview great to see thank you very much for that thank you we have to say goodbye to you. Yep sadly. Adieu until next time thank you very much. Richard harris thank you were done. Its the weekend on monday, alan higgins will join us. For us and squawk box, goodbye, have a great weekend for u. S. Viewers, stay tuned for Worldwide Exchange. Elsewhere, stre snsisetig coming up next for european viewers. 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. 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An apple a day keeps the bears away the iphonemakers market cap tops 9 billion. And shares of starbucks are under pressure as sales disappoint its friday, november 3, 2017, Worldwide Exchange begins