Saudi arabia over the last two weeks. Feels like these days if you want a look at the implications in the oil market you need to be a geopolitical analyst at the same time and know about the ins and outs of the mideastern policy do you think its really just a geopolitical risk premium added to the oil markets is that actually something, the saudi arabia situation, that could impact the balances overall . Well, what were seeing leaving aside the geopolitical tensions for a moment is that there has been lower Production Output in Northern Iraq because of the situation there and we saw, as we said in the report, lower than expected production in one or two other places, algeria, nigeria, venezuela, mexico, lower growth than expected in the u. S added to the fact that stocks are falling as we also see in the report and demand in reasonably strong. There are some underlyingfu fundamental factors that help drive prices, but the situation in the middle east has added further momentum in the upward movement in prices well have to wait and see how that plays out i guess its very difficult to forecast what oil price also do and how this situation plays out in the next couple weeks do you think that it is sustainable . Do you think these levels and maybe were seeing fatigue around the 60 mark, do you think it does have legs at this point . What we say in the report, though today things are reasonably strong for the market, as we move into the very early part of 2018, we do see some potential softness in the First Quarter of the year. Current numbers expect that supply will actually exceed demand in the early part of 2018 that is not a recipe absent geopolitical problems to see prices rising significantly. So you said a second ago, some fatigue around the 60 a barrel mark that may be true people are focusing on the immediate geopolitical concerns and people are looking back at the underlying fundamentals. The other takeaway from your report this morning, i think its quite major, theres another downward revision of demand forecasts for 2017, but also for 2018. What does that mean for the continued rebalancing . How do you explain this disconnect from the opec side of the equation were seeing an increase in the demand forecast. How would you explain that our colleagues at opec see things differently and they have come to a different conclusion i have not seen their underlying data as far as were concerned, they have made a small downward adjustment to the 2017 demand growth number for the year as a whole. Weve explained that by the fact that since the middle of the Year Crude Oil prices, lets take brent, for example, have gone up by 40 and theyve gone up by 20 since the early part of september. That must have an impact on demand growth. Intuitively that must be the case to some extent as we carry that forward into 2018, it must have an impact there as well. Also weve seen the beginning of the Northern Hemisphere winter season, and higher than normal temperatures in the early part of the season. So we made an adjustment for that there is a downgrade to demand growth in 2018 thats true. But its still growing strongly. I dont think we should overemphasize the impact of the change at the same time im looking at an interesting report that youre not the author of, but i know youre advising on this this is about the report that the International Energy agency put out tuesday saying there will be 300 million electric vehicles on the road by 2040 this will cut 2. 5 Million Barrels per day or 2 of Global Oil Demand by that time. That report and headlines weve been running all morning is that we should not be writing the obituary for the oil markets yet. How detrimental is that to demand overall the best people to answer that question are my World Energy Outlook colleagues. From the perspective of my outlook, which is basically no further ahead than five years, the impact on oil demand within the fiveyear period and a few years beyond that from electric vehicles is modest as we look further ahead which is the job of my World Energy Outlook colleagues, the picture changes depending on policy changes made by government is, and depending by technological innovation well have to wait and see how that plays out thats a job for my world Energy Colleagues to explain. Neil, thank you very much for your time. Neil atkinson head of the oil industry and markets division at the iea. Nancy is live in abu dhabi and has been talking about all things oil prices this morning nancy, what are the Key Takeaways . I can tell you i wrapped a panel with some members in the industry as you were touching on there, the iea conclusion, dont write the obituary of oil yet, thats very much their message as well. One panelist saying oil and gas is here to stay, but they are looking at adjustments the conclusion of that panel was that a year from now, whatever the price, you will be looking at an industry more fit. That is what theyre all working towards. In fact, one ceo telling me they dont want to see the price go up dramatically because that might change some reforms taking place, some structural adjustments as they see healthy to the industry when it comes to reacting to the new normal for the sector we are here in ab due bab eu dhn thing were keeping an eye on is the saudi aramco ipo yesterday the question was asked of whether or not the ministers thought the ipo would go ahead in 2018 or not will it happen in 2018 . Yes or no . I think it can happen, but it all depends on the aramco and the government of saudi arabia what do they want for that ipo to happen . Its not just launching the ipo. It has to do with the right environment, the right price, other parameters so, actually it depends on them. Its not a speculation of whether i think they can make it happen, and they can, if thats the question theres an interest by the International Community for it to happen, but are they going to decide at the right time, next year i think if they said so, they have a potential to do it. And i trust them not quite a yes or no thank you. I think cnbc said yes, so i will say yes, it will happen your excellency i think it will happen. Sir with the kind of delegation and commitment were seeing, most probably its going to happen, i guess. There you have it i think one minister there saying with regard to the saudi arabia ipo taking place next year, the price and environment would have to be right thats something that the Leadership Panel i talked to, theyre still talking about whether or not the price is right. But theres an acknowledge that theyre moving ahead, making the changing that need to take place in this environment. You were talking about electric vehicles there there was some discussion that perhaps this industry could learn a thing or two when it comes to automation and innovation nancy, thank you very much for that want to bring you the latest in terms of statistics this morning from italy italy posting a solid 0. 5 growth number in the Third Quarter when it comes to its gdp. So its recovery is clearly continuing and that leaves italy on course for its strongest growth since 2010 euro dollar 1. 1706 want to show you the rest of the equity markets just slightly moving to the upside this is after five days of declines. So slightly friendlier tone across the markets as we are contending with lots of earnings from a host of different companies. Want to show you the european markets. We are seeing outperformance in the dax. Very, very marginal one. The dax up by 0. 3 , on the back of very strong gdp numbers from germany as well for the Third Quarter to the tune of 0. 8 . The ftse 100 up by 0. 2 . Sectorwise, this is the view. You have basic resources, oil and gas slightly underperforming as oil prices and basic resource prices are coming off the boil technology, chemicals moving higher but i promise you, we have a host of numbers to get through today in terms of Third Quarter earnings report. Vodafone is trading near the top of the stoxx 600 after it raised its full year Earnings Guidance. The adjustment comes after it posted a strong first half performance boosted by organic growth the worlds second largest mobile operator expects ebita to grow around 10 up from a previous forecast of 4 to 8 . Vodafone saw its revenues slide a bit because of deconsolidation of its dutch business but managed to raise its dividend. Shares up by 4. 2 . Infineon shares are trading higher to the tune of 4. 3 following the decision to raise its dividend the firm increased its payout to investors despite reporting earnings which missed expectations. A different picture for henkel shares in germany shares off 3. 3 . One of the worst performers on the dax and the stoxx 600. These shares are under pressure following its warnings that Challenging Market conditions in the consumer goods sector will continue the german consumer goods company, which is behiupping it 17 Earnings Guidance after posting a 3 rise in organic sales growth alstoms first half net profit was boosted the french train maker was in a deal to merge with siemens and said it remained on target for its 2020 goals still coming up on the show, as the parliamentary debate over the brexit bill begins, we speak to the president of the Peterson Institute for international economics, thats adam pose zenn thats coming up after this short break. Happy anniversary dinnedarlin im messing up every dish, pot, and plate. To show my love. Tada all this devotion only calls for a little bit of dawn ultra. So concentrated, just one bottle has the grease cleaning power of three. Bottles of this other liquid. A drop of dawn and grease is gone. Try using dawn beyond the sink. 23 countries signed up to participate in a new European Union defense pack the initiative was proposed by france and germany as a push to deepen eu integration in the wake of the brexit vote. The only eu countries not to participate are britain, ireland, denmark and malta theresa may has been asked to speed up brexit negotiations before its too late cos warned they could move out of britain unless a transitional deal it in place. May has bowed to pressure from pro european conservatives by offering the British Parliament a full vote on a final brexit deal with the eu. Its the latest sign of her deteriorating position as turmoil within her government interrupted brexit plans Joumanna Bercetche is live in london im sure brexit is high on the agenda. We will definitely be talking about brexit joining me is adam pozen the president for the Peterson Institute for economics. Thanks for joining us. Speaking about the uk, the bank of england hiked rates a couple weeks ago. Many people are calling this a policy mistake what is your view on the hike . Do you think they were right to go if i was right on the mpc, i probably would have voted against it its not like 20 110, 2011 where it was not driven by domestic inflation it was driven by concerns over potential output in the uk. But also by brexit it meant that the bank had to be more worried about the stability of Inflation Expectations about the pound than they otherwise would have been. This is part of what happens with brexit. The bank of england is not back to the 70s, but its more like an emerging Market Central Bank in that it has to take the external situation into account. It just cant set policy based on domestic inflation. Were seeing in the uk the data beginning to slow down a bit. Of course the political back drop has begun to weigh on the currency do you think Going Forward the currency will be the main release valve for how brexit negotiations are going i think the daytoday month to month movements in the markets will focus on negotiations thats not that important. For some people watching who trade it is, but for the british people and the british economy going up more than six months what will happen is a decline in the pound. Uk irrespective of how negotiations go, it is making itself less competitive. Its shutting down economies of scale where 60 of exports go. Inherently, you combine that with other imbalances in the uk, growth of consumer credit, the still large government budget deficits, the imbalance in trade thats there even before brexit, and this all weighs down on the currencies month after month people were blame politics and uncertainty fundamentals are down. Do you think thats problematic for bank of england ultimately we saw the decline in the currency last year had an impact on the inflation numbers, and some people say they were coerced into a hike because the cpi numbers were so high on back of the currencys appreciation if sterling heads another leg lower, we may see more inflation in the uk but the wrong type of inflation at a time when the economy is saying. Thats what i said to you just two minutes ago the pound is moving and the bank of england has a dilemma it didnt before, because the expectations on the inflation is not as anchored and the pound is not anchored where from 92 through 2012 it was. When the pound fell a lot in 2009, there was initial inflation, i and my colleagues in the mpc could look through it and say it will not get passed on thats what happened in a world of brexit and a shambolic set of actions by the government on fiscal and brexit policy, that anchor is not as strong yes. They have to worry about it. I dont like this idea of good versus bad inflation i dont even know what that means. With inflation, its a question of whether the first round shock, when the currency moves and that automatically, as you say, puts some inflation into the system, does it keep going does it lead to a spiral thats more at administrations ability to pass tax reform do you think eventually, if tax reform does get passed it will be stimulative for the economy absolutely. I dont think its good for the longrun growth for the economy, as many conservatives pointed out in the u. S we built up a lot of debt in the u. S. , i argue for good reasons, but we dont have much fiscal room left. Monetary policy near zero. If you go further into debt now when unemployment is low and the economy is doing well, you will not have the resources you need if another shock comes along, if a recession comes along. I think in the short run it will be stimulative they will do large unfunded tax cuts i think whatever else gets decided about the tax code, that will happen. And large unfunded tax cuts means stimulus on the order of 0. 75 of gdp a year for the next couple of years. Thats not trivial when were growing close to full employment do you think that will impact the fed policy from here, given that the fiscal impetus will be hitting the economy, there is a lot of turnover at the fed right now. The two together, does that make you believe that the fed will turn more hawkish next year . I actually am counter intuitive on this youre right to talk about the turnover at the fed as being important i think President Trump is demonstrating the old adage its better to be lucky than to be smart. So the weve never had a budget take this long to be passed for a firstyear president , but because it was so late being passed t will be his appointees rather than the yellen fisher fed that will be voting if the budget was passed last april or last june which is when it would have normally been expected, then probably would have had one or two more hikes by the previous fed. You will get a new fed, im not saying theyre compromised, but theyre going to be disposed to say, well, this is stimulus, but its also structural reform for the economy, Corporate Tax cuts are good he can need to dynamically score it we need to wait and some people like Charlie Evans or Lael Brainard who made a good case for waiting. I think theyll surprise markets. They wont turn hawkish, they will move once in march and sit still. And end there end there for a while, for a year, in my view which is something of an outlier now. What do you think is the biggest risk to the u. S. Economy you were saying the tax cuts initially will be stimulative, fed will be hiking where is the risk coming from . I dont think there is much risk people say if the recovery goes on a long time, it must die. The historical evidence for the u. S. And most advanced economies is no, something has to happen for recovery to die. Something unforeseen in addition to the fact that youre getting stimulus from the fiscal side and im arguing or im predicting that the fed will be slower too raise rates than people think, we have a balanced economy throughout the world europe is doing well japan is doing better. China is doing better than people expect. India is doing okay. You look at a world with a balanced recovery which we have not had for at least 20 years, theres less vulnerability to external shocks. You dont have the huge capital imbalances when one country is growing and another is shrinking. So again, i dont think what the trump fiscal policy does will be good for the u. S. Economy over the medium term. I think its risky in the short run the u. S. Economy will do great. Adam pose zen, thank you ver much i will be back with youguys a little bit later, perhaps tomorrow well talk about it, ill sit down with david lipton, the deputy managing director of the imf and with mr. Padawan, the finance minister of italy. Back to you. Thank you very much for that. We will continue with central banking speak. We will have special coverage of an allstar panel of central bankers including janet yellen from the fed, mark carney of the bank of england, mario draghi and the bank of japans kuroda, thats a starstudded lineup thats 11 00 cet these gentlemen and the lady, they will be speaking from frankfurt from a conference there. Lets get back to big news ge shares posted their worst single day decline since april 2009 after the Company Announced it would cut its Dividend Payment in half. Ge announcedplans to restructure to emphasize healthcare, aviation and energy. Co John Flannery apologized to investors for the companys performance and promised ge would be more focused Going Forward. Morgan brennan has more on the strategy overhaul. Reporter cut dividend. Cut assets those are the crux of ges new strategy under John Flannery today flannery outlined big changes for the struggling industrial giant Going Forward, we have to focus on how we can create the most value from the portfolio of assets that we have for ou for 1989, ges dividend was cut. Ge has long been bought for that payout, with about 40 of shareholders retail investors, many dependent on that income. Still the move was widely expected what wasnt was the guidance the market is just having a difficult time and sort of envisioning what ges longterm trajectory will be and where the company will shake out at the end of this. Reporter ge now forecasts profit of a dollar to 1. 07 per share next year. 50 less than originally anticipated. But flannery outlined a new strategy, one on power, aviation and healthcare over the next two years he plans to exit a dozen others including transportation and lighting. A ge business harking back to the days of thomas edison. Even a stake in baker hughes could be up for grabs. It will all take time. 2018 will be a reset year, one that will be extremely hard with major changes and detailed execution. After that, he says profit should grow and with i hopefully, financially, the stock. For cnbc business news, im Morgan Brennan in new york city. Maybe at some point the dividend will grow again well see. On a programming note, ge chairman and ceo john fla flanny will speak at 3 00 p. M tesco has been given the goahead to buy booker the uks largest retailer said it expects the 3. 7 billion pound deal to complete early next year sticking with m a news, qualcomm rejected broadcoms 1 103 billin takeover bid the chipmaker said the offer undervalued the company and would face too many regulatory obstacles. Broadcom said they will still talk to the board about a tieup. And altice shares are falling to the lowest level since 2014 following two downgrades Morgan Stanley cutting the price target to 13. 50 from 20. 50 saying casload would be hurt by high debt load levels now weve got plenty of data points from the uk after this short break, including uk inflation, that is expect ed ed come in at 3. 1 . Whuuuuuat . Rtgage offer from the bank today. You never just get one offer. Go to lendingtree. Com and shop multiple loan offers for free free . Yeah. Could save thousands. You should probably buy me dinner. No. Go to lendingtree. Com for a new home loan or refinance. Receive up to five free offers and choose the loan thats right for you. Our average customer could lower their monthly bills by over three hundred dollars. Go to lendingtree. Com right now. So find a venus smooth that contours to curves, the smoother the skin, the more comfortable you are in it. Flexes for comfort, and has a disposable made for you. Skin smoothing venus razors. Welcome back to street signs. Im carolin roth a strong signal. Vodafone shares trade higher as the mobile operator dials up its fullyear earnings forecast after first half profits beat expectations. Full steam ahead for alston. They rally on a solid set of profits and bullish outlook forward until 2020. Tesco can load booker into its trolley. The stocks trade near the top of the stoxx 600 after the uk regulator provisionally approves the 3. 7 billion pound merger. And default. Thats s ps judgment of venezuela setting up a clash between the struggling country and its worried bondholders even as president maduro promises to avoid default. Inflation data from the uk, surprisingly it held at 3 in the month of october versus expectations of a rise of 3. 1 , which would have been a fiveyear high which would have triggered a letter from mr. Carney, the boe governor to mr. Hammond explaining why inflation deviates by more than 1 from the target of 2 were not getting that letter. 3 for the month of october. Seeing quite a bit reaction in the currency markets sterling dollar down by 0. 3 on the day after being unchanged before, given that the market got this pretty much wrong to be honest i know its a small deviation, but maybe its an important one. Were also seeing the ftse 100 jumping to a session high on the back of the weakness in the pound sterling once again, the boe saying this month after it raised Interest Rates for the first time in a decade that inflation would peak at 3. 2 in the month of october. In fact t did not. It held steady lets get more instant analysis with jane foley head of fx strategy at rabo bank. Are you surprised by the fact that inflation did hold steady i guess im surprised, but this is not a big deal we know from looking at the inflation indices that were in the process of peaking yes, its good news that it is just 3 , not 3. 2 its good news that the bank of england doesnt have to write that letter but ultimately we still have strong inflation in the uk the message that it says is that maybe theres more reason for the bank of england to just sit on its hands, not do anything with respect to Interest Rates in the future, during the first half of next year. And that is detrimental for the pound. I do think that really thats where sterlings ability lies is not with economics, a lot is with the price and the shenanigans with the politics and uncertainty about the political position of theresa mays government and brexit talks into the end of the year you hit the nail on the head. I wanted to clarify with you what comes first in the pecking order when it comes to the key drivers for the pound sterling is it brexit and brexit trumps boe and boe trumps data . I think because we had the bank of england meeting over and done with for november, that was an important meeting we had that Interest Rate hike, its out there, its done. Given thats the situation that can be pushed one news and we were told last week within two weeks the uk needs to make concessions if the eu are going to agree in december to move forward and stop talking about trade. Thats crucial for the markets meanwhile theres lots of pressure on the may government many people wonder if the may government will be in place to see through brexit talks so the politics for now are important given that the bank of england meeting is out of way. If we dont move ahead to trade negotiations by the december Council Summit for the uk, what happens to pound sterling . Has that already been priced in, the fact this will be pushed out to march i think that would come as a disappointment certainly we would have to say theres a reasonable proportion or percentage of hard brexit priced into sterling right now that percentage would likely rise if those trade talks did not start in december. Of course if we look at the way politicians work, the negotiations between the eu and uk, its likely that if they do reach a deal, its likely to be a lastminute deal nevertheless, the longer time goes, or the close their march 19 deadline approaches without the start of talks, the market will naturally have seen the greater the percentage is that well have a hard brexit and no trade deal would be put in place. That is really important for sterling before i let you go want to ask i about the euro dollar pair its making some headway this morning to the tune of 0. 3 . At 1. 1706. We got strong german and italian data we have hesitation between the house and the senate over the tax bill is this the chance for the euro to break out maybe a little bit longer than just by one day against the u. S. Dollar . Is interesting. If you look, we are above the 200 average right now. Its interesting but i think youre right the european news has been good. The imf out with revisions yesterday. The german gdp, very good news i think the yushl piecrucial pif news is regarding u. S. Tax reform if they push forward with that, the dollar can still rise. If they dont, yes, euro dollar will break higher again. Jane foley, head of fx strategy. Staying with fx, we were talking about some big pairs want to show you how cable is trading. We reduced some earlier losses on the back of the inline or the unchanged cpi print. Were down by 0. 2 at 130. 85. And euro dollar is 117. 08 on the back of strong data out of germany and italy. As far as equity markets are concerned in europe, we are stronger today after five days of losses. The xetra dax trimming some of its earlier gains as well. Up by 10 points now. The ftse 100 up by 13 points the cac 40 higher to the tune of 4 points i should tell you we got china data which was disappointing when it came to retail sales, fixed assets we are still very much focused on the earnings season negative. Dow jone points the s p falling by 1 1 2 the nasdaq seen off by 7 points. Yesterday, the dow and s p 500 rose for the first time in three sessions the nasdaq rose for the second time in three sessions obviously all those gains were capped by ge,the heavyweight whose shares fell by some 7 . Powerful forces are changing how big banks do business from waves of consolidation to Digital Technology annette spoke to the ing ceo on how that bank is changing to compete in the new environment i think were at a cross roads. Were three years in being the supervisor for the larger bank in the eurozone. We found a standard for supervision, capital levels, all of that. The question really is how where do we go from here what is the advantage now of having the ssm clearly we are same standards, same scrutiny. More transparency across border. Thats all very helpful. Will this lead to european consolidation . Thats the real question how confident are you that we will see a real european consolidation, let alone the german we terribly need consolidation in some markets, local consolidation is warranted the italian market is going through consolidation. The German Market as well. Thats where you find the First Benefits of consolidation, local consolidation of taking costs out of the system. If you go to cross border consolidation, its about how can i make sure that i build the skill for digital banks Going Forward. So you can actually share your digital costs, your digital layout crossborder. On top of that you need benefit from Capital Trust in order to get that one done we need the next step in will we form a european deposit guarantee system or not . Are we going to find a general back stop for banks or how are we going to make sure that local banks are less and less dependent on local governments so, theres quite some steps for cross border consolidation to happen but there are certainly benefits if it comes to the digital side of that. But the real benefits are all on local consolidation for the moment would you look into expanding other markets than your present right now in order to leverage your digital base . So the question is, if you compare ourselves to, for example, the larger technology companies, they build a platform a digital platform that leads to a standardized experience that you can roll out to different countries. What were currently building is between what we do in spain and italy and france, austria and the check republic building one platform across five countries already active in five countries. Were building both similar back end and front end. Once you have that, you can actually roll it out into many new countries. The only difference that you will probably still run into is some of the underlying products, banking products are distributed to local laws, local regulations, or, you know, tax treatment. So on the product side you would still see some differences local by local, country by country in terms of the experience, im convinced you can equalize it. Would that be something you envision for the future for ing . Yes thats what were building now as i said, were trying to or were building this model bank as we call it across five countries. Once we have that, we can go into any country again, we will have special coverage of an allstar panel of central bankers including janet yellen from the fed, mark carney of the bank of england, the Ecbs Mario Draghi and the bank of japans haruhiko car rokuroda s p ruled venezuela to be in default after it failed to make two Interest Payments on its bonds this adds pressure on the troubled government which offered no firm proposals on how it plans to deal with the 60 billion debt pile during an investor meeting yesterday frustrated creditors said the only concrete offerings at the talk were bags of venezuelan chocolate. I hear there was also some venezuelan coffee involved i dont know if that will make things sweeter or better at this point. Michelle carusocabrera has the details. Reporter a controversial meeting in caracas ended with no deal on monday for venezuelan bondholders. The meeting was vont vercontrov because of who might be leading it the Vice President of venezuela has been put in charge of negotiations on behalf of his country. The only problem is hes on the u. S. Sanctions list. The department of justice says he is a drug kingpin so all american also be prohibited from doing deals with him and most banks think they shouldnt be meeting with him. Its unclear if anything will be able to get done and very few americans went to the meeting in the first place. Also inconclusive was the meeting held today by the committee deciding whether or not venezuelas default swaps should be triggered. The country has been late on a couple of payments but they have paid the Committee Says they will wait one more day before making a decision michelle carusocabrera, cnbc headquarters speaking to steve sedgwick, the ceo of bp said venezuela was a part of the world that he thinks poses the biggest risk for the oil markets. Most people would say the gulf region. I would say venezuela. I think venezuela is defying economic gravity thats a wildcard. I wont comment on the situation in the gulf, everybody is talking about it i dont feel nervousness here about it you can head to cnbc. Com to read bob dudleys full thoughts on the situation on venezuela and other global risks he sees as well. Coming up on the show, u. S. President donald trump wraps up a whirlwind tour of asia and the philippines. Well take stock of the president s time across the park after this short break my friend susie cracks me up. But one laugh, 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, like. Its great when you see a hundred orders come in, but then you realize ive got a hundred orders i have to ship out. Shipstation streamlined that whole process. The order data, the weights of the items, everything is seamlessly put into shipstation, so when we print the shipping label everythings pretty much done. Its so much easier so now were ready, bring on the orders. Shipstation. The number one choice of online sellers. Go to shipstation. Com tv and get two months free. Lebanons president welcomed plans for hariri to return to the country soon hariri resigned as lebanese Prime Minister earlier this month. He has hinted he could withdraw his resignation if the Shiite Group Hezbollah stops interference in conflicts in the middle east. Willem is in dubai at the Global Financial forum willem thank you very much egypt of the countries in the middle east is an icon of stability now compared to whats happening in saudi arabia and lebanon in particular. Im happy to say were joined by the chairman of cib, one of the largest banks in egypt i wanted to ask you about Economic Reforms in egypt. We them recently we heard nothing but praise. How are people of egypt with these reforms . Thank you for having me we have to separate egypt into several groups the government has done an outstanding job of protecting people under the poverty line and the poor there are several programs that the government interintroduced a introduced to protect the people below the poverty line or lowincome families. The one that impacted the reforms were the middle class and the upper class. We saw that clear in their behavior of spending at the start of change. Its obvious that those reforms have a dear price to pay the most important thing is to protect the people who are unable this is what happened. For the middle class and upper class, its a matter od producty start to catch up pre the levels of the reforms and see the impact of the reforms. Egypt went through those reforms back in the early 90s the same pattern that were seeing today egypt came out at that said croe nile if you remember back in 95 and 96. What im trying to say those reforms were long overdue. I think with the political willness of the president and the government they have taken the right decisions. It will be a while before we start to see the impact in terms of the average income in society. But waiting longer for those reforms definitely would have been the wrong decision. So, if not reforms partially designed to help the most disadvantaged in egypt, but the prices of things like consumer goods going up and up. How does the government, how does the private sector, the Financial Sector help drive that wage growth that you say is needed well, let me talk about the Banking Sector i can tell you that the Banking Sector will notnsate 100 . The dangerous part is that you increase wages with the same productivity, then you will go to a vicious cycle for the Banking Sector, banking profits has improved in 2000, at least in the first half of 2017. I think by the end of 17, early 18, you will see another increase to compensate over the coming three, four years we will catch up in terms of productivity as well as income bracket the investors youve been talking to since the reforms were enacted, what have they been telling you the main concern was about the financial strep strengths o and the Banking Sector, and the investment plans Going Forward everyone was quite happy that the right decisions are taken finally. But the main concern is the followup. Do we have the political will to carry on those are plans for several years to come. Leaving aside the political will, what about the infrastructure you are the chairman of the International Banking federation, with that has the on is the Banking Sector in egypt ready for Foreign Investment again . There are two things. Number one, how did the Banking Sector deal with the shocking reforms, because thats big impact on the financials of banks. And i can clearly tell you the Banking Sector came out of those reforms in november of 2016 on solid ground we have a strong regulator, they are overtight on regulation. I cantell you that now we are in the phase of implementing basel iii, that will be implemented next year, 2018. We have uptodate on regulatory side and theyre careful with whats happening in the Banking Sector all banks ended up on solid ground complying now talking about the future investment, very investor who comes, they come looking for financing. The Banking Sector in egypt is very liquid. Loans to deposits less than 50 . That gives banks ample room to finance new projects we heard earlier from bill winters about the changing face of banking globally and in developing markets and how important fintech would be to that an accessing new customers is a bank like yours in a country like egypt able to find these new customers who are not currently banked egypt started very good plans for what you call the Financial Inclusion. Part of it was to stop issuing to the National Payment counsel which is head by the president himself. Several decisions were taken in terms of facility, the bank opening, either virtual banking or an actual mobile regulation has changed. The central bank has established a unit inside the central bank called the Financial Inclusion unit, which is very important as well to interact with banks and look at regulation im quite positive about the macro Financial Inclusion, as for cib, we are ready in terms of technology. We look at finteches and mobile operators and Payment Companies as partners. We collaborate together. Finteches in africa generally are not disrupting the existing model, but in fact they are complimenting the existing model. Thank you very much my pleasure talking there in many ways similar to what bill winters was trucking about at the same forum about Financial Inclusion and the role that Fintech Companies have partnering with banks very clearly enunciating that idea that banks will be working with these companies Going Forward not being excluded from the process. Willem thank you very much for that u. S. President donald trump is wrapping up his asian tour at the asian summit in manila trump is participating in the 12th east asian plenary session. He called for a strong and independent southeast asia. A new report allege thats president s son, donald trump jr. Secretly corresponded with the Wikileaks Organization during the president ial campaign and in the months after that quick look at u. S. Futures before we wrap up the show we have turned around quite a bit. The dow jones now expected to open positively to the tune of almost 10 points the s p 500 seen off by 3. 5 points, and the nasdaq off by 3. 5 points the dow yesterday was capped by the losses that we saw by ge 7 to the downside worst day in eight years after the Company Revealed its Transformation Plan and the dividend cut which shocked many investors. I want to tell you today we have cpi inflation coming out of the u. S. When it comes to european trade, looking friendly, snapping a fiveday losing streak the cac 40 is up by 0. 2 the dax adding on 17 points. A lot of earnings to contend with some better, some worse. The ftse 100 up by 0. 2 . Earlier at a session high given weakness in the power sterling after we saw inflation for october staying at 3 . Stay tuned for more coverage from europe. Well bring you the allstar panel of central banking, including janet yellen, mark carneymao ag a, ridrhind hmr. Kuroda 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. Throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Markets now, stocks pointing to a mixed open on wall street as investors remain laser focused on earnings and any new movement on tax reform. The worlds most powerful central bankers are speaking together in germany. Well bring you the breaking headlines. And going wild shares of Buffalo Wild Wings are soaring on deal news we have the full details ahead its tuesday, november 14, 2017. Worldwide exchange begins right now