Get done before the end of the year the deal would be to draw up something no later than but to resolve something by the beginning of december and sign it before christmas. Reporter dozens of antiprotesters leave a leading Hong Kong University after a siege that last the the last three days after carrie lam urges the remaining demonstrators to leave peace fully. They have to stop violence, give up their weapons and come up peace fully and take instructions from the Police France and germany grief eu c car regulations and volkswagen with a 30 jump in sales good morning, welcome to street signs. Lets take you to some of the market price action weve had in the past 24 hours. Wall street just about inking out gains. Tech and Consumer Staples seeing fresh closes no doubt aided by the positive commentary for once out of President Trump with respect to his meeting with the fed chair powell overnight, the mood soured a little bit and cnbc learned that china and beijing are turning a little pessimistic at the trade talks. We saw the japanese Index Trading in a positive session. The hand over from asia was pretty mixed you can see the heat map is mostly closing in the green with a nice bounce up about. 4 a percentage point from levels not seen since july 2015 actual index levels not seen the last four years or so, so a nice jump in the european equities. Starting with the uk index leading the gains nicely right up at the top. Weve got minors as some of the stocks doing well reporting strong earnings today. Also bare in mind, not shown hear the ftse midcap showing very, very strongly. The ftse 250 is at a high. Up a start of about 65 percentage points. As well as some of the banks up about 1 today in trading. In france, cac is up about. 3 as well. And the mib up about. 6 percentage point lets talk about autos strong gains mostly led by volkswagen because we had european car registrations come in strongly travel and leisure up 1. 2 good out look from easy jets even though the numbers were not that strong. That was one of the stocks driving the gains. Boosting travel and leisure and airbus with the dubai air show and those orders coming in remember yesterday and today, weve been talking about the euro next. Bank cyclicals continue their recent mode. Media down about. 2 percentage point. Since the beginning of september, these are down about 10 . It has been a very good run the last couple of months or so. In our top story today, when it comes to markets, it is due to car sales they have reached the highest level in a decade. During the month of october, new Passenger Car registrations rose 8 volkswagen was the driving force posting a 31 improvement. Renault also reported Significant Growth there was Strong Demand from buyers in france in the uk, registration fell 7 . Volkswagen leading the charge, porsche up almost 2 others up as well. Solid start to the day for trading particularly for the auto space lets switch back to hong kong witnessing several antigovernment protests exit the university the chinese territories leader ask that the demonstrators leave peace fully. They have arrest update figures. How many arrests are we talking about now . Reporter so this is from a police press conference. Good morning to you. It was held earlier this afternoon. The numbers are quite specific it is a little hard to do the attrition math at 3 00 p. M. Today, theyve arrested 1,100 people at hong kong polyand surrounding areas 1,100. Among 400 were adults suggesting the rest of them were not adults 200 were minors, so you have 600 people who voluntarily left the university which has been under siege now for three days the Police Believe the majority of people who left voluntarily were not students from the actual university. In terms of how many are left, police are saying they cannot disclose the certain number operations may suggest there may be people inside you referred seconds ago within the last hour we witnessed about 50 several dozen students being led out of the campus and into waiting balances wraps in aluminum space blankets and normal blankets as well. Where they made the exit, that ramp or walkway sloping right to left just below it further off to the left were the waiting ambulances we are showing you the expanse ands it one of seven of eight universities famous for its design all red brick. If we can pause where we see the characters written on the front of the building by the student protesters the translation said five demands, not one less. This is something theyve been referring to for six months now since the protests first erupted. If the camera can come back to me the demand that caused the most controversy, they are asking for an independent inquiry into excessive violence particularly focused on the police. There have been claims that perhaps the police were a little too heavy handed when they were going in and dealing with the protesters, they called them rioters. The Police Arrested this issue and reporters asked about two specific cases one where a Riot Police Officer was seen stomping on protesters head and another with Police Driving one of their vans at dangerously high speed both questions were answered but simply cut off and at the end of the reply the Police Spokesperson said, look, the public and the media, you need to ask the police by asking these testy questions. Im paraphrasing here. The feeling here isnt very positive the scepticism is that police were a little heavy handed for now, the siege of hong kong polyseems to be withering although there may still be kids inside given the extraordinary footage weve seen, does this matter is this a turning point . The level of preparedness weve seen from these protesters what has changed has been the government approach. Since day one, they put the ownness for calming down the situation saying, look, if we are to deescalate, it is the protesters that need to do that. Now sufficiently addressing these allegations of claims of heavy handedness by police carrie lam with that soft approach offering, look, if you surrender now and leave peace fully, we will not arrest you. No response so far remember, president xi jinping suggested the crack down needs to be stronger that was underlined by an editorial which said the approach so far has been soft. Maybe they need to take a harder approach tipping point, i dont know. For now, this chapter the last three days seems to be drawing to a close back to you. Thank you for bringing us the latest outside Hong Kong Polytech university. The mood in beijing around a trade deal is pessimistic. A source said china is troubled by President Trumps reluctance to roll back tariffs well go to our reporters at the east tech west conference. This is clearly the back drop of the whole event we are primarily talking about technology but the talk is with some of the issues Like Technology transfer and ip theft will not see any progress and making life difficult for people a 90day extension, in terms of the china u. S. Trade, that is clearly the issue. This trade war has been dragging on nearly two years now. A lot of businesses are delaying decision making. They are postponing plans and adjustments are being made so everything is being delayed one of the certainties we have is uncertainty so we are having to make spending decisions right now on this dispute. Interesting, when we thought we had constructive progress over the weekend. That cnbc has learned there is pessimistic feelings not everyone is pessimistic. We caught up with the vice chairman and asked him whether he thought it was still possible wed see a deal before the end of the year. There is an ongoing discussion, a rigorous discussion taking place as we speak. There are issues remaining about agriculture al purchase target, forced technology and broader enforcement issues i think the idea would be to resolve something of course we have american thanksgiving coming up. But to try to draw up something by the beginning of december and have it done before christmas. Trump has seen hes gotten a lot of endorsement from american ceos that want to see some kind of stable iization and anchor i the trade dialogue he seemed rather optimistic there. So clearly, there are two sides trying to move forward the messaging we are getting is to let this sort it out there are concerns that this will tamp down the situation if we see the reluctance for the spending nowhere is that more true than when youve got International Companies utilizing businesses in china as part of their supply chain fulfillment. If there are consequences of being locked out of china. That is going to force companies to take more costly decisions about rerouting the supply many other companies have already made the decision. Supply chain out of china. A lot of that has gone into Southeast Asia and vietnam those decisions have been made for further expansion, there is a lot of wait and see and what will be the next big step. If i had to be a cynic, this is a lot like President Trumps own tweet that china is just tweaking the tail. They clearly want to see some progress but this hot and cold story is also having an impact that is something we do know that President Trump pays a lot of attention to thanks for tracking this for us the u. S. Commerce has once more allowed American Companies to do business with huawei the latest 90day extension was to make sure customers in Rural America would not suddenly lose cell phone coverage. They will rigorously monitor the firm to protect u. S. National security also coming up, find out what happened when President Trump and Jerome Powell met after weeks of chris call exchanges over t rheate policy well be right back. Pharmacistd memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Sfx upbeat music a lot of clothes you normally take to the cleaners arent dirty dirty. They just need a quick refresh. Try new febreze clothing quick dry mist. It eliminates odors and refreshes lightlyworn clothing. Breathe happy febreze. La la la la la. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Very good and cordial that was the assessment of President Trump. He has previously called powell a bone head and terrible communicator they discussed negative interest rates, narrative easing. The fed insisted powell did not discuss his expectations for monetary policy. Trump has for months criticized the decisions and in october described the fed as path thetic and said it was the weakest in overall territory for years. Lets talk about this meeting and see that as an opportunity for reconciliation or an opportunity to perhaps pressure mr. Powell into changing course. First of all, it is quite normal for the chairman of the fed to meet the president of the united states. That in and of itself is not like the u. S. china sit down part of the discussion between the chairman of the fed. Reconciliation you know, i wonder how much when trump sits down and talks to somebody like powell, does he talk to them with a nod and a wink and say you know these tweets and stuff just throwing red meat i really feel like in the professional setting we are is this way you have to accept the separation between these two i dont think he sits there and calls this person a bone head in person the fed seemed to be implying they are happy with what they have right now do you think that this is it right now . It is and it isnt. In terms of the actual cutting of the rate, they got it down and i think they recognize it is as low as they want the funds rate to be without triggering financial excesses this is the third round after employment and inflation they are also adding tremendous amount of capital. We have to understand there is still easing in the sense that they are still adding liquidity. If they do the 60 billion a month for eight months thats 480 billion which is about 70 to 75 in that period of time. That intermediates the Foreign Sector which opens up again the capital from the sector in the u. S. Which is where it was and tightens spreads, it eases pressure thats all going through june. The idea that theyve done the three and now are out of it is not quite correct. The fed was talking about their continued analyst of this data im organized this year and already planned my Holiday Shopping getting ared to spend money that might be burning a hole in their pocket right now how important is the u. S. Consumer when it comes to the feds looking at . Everything else, things sort of move in focus the old story is that 70 of the gdp is the consumer. Driving down the variable part, you get down to around 30 it is very important now because that is the read on which the fed out look rests the consumer is very much dependent on the equity market the one interesting aspect of the whole recovery is the increasing net worth it is the first time you had that kind of increase with household borrowing. The Balance Sheet holds much more Capital Market assets than they do in real estate if the market goes down, that clearly triggers a sharp drop in consumption. To the point about the Balance Sheet, this is all an operation to keep the equity market afloat the fed has been able to do that thats Household Wealth despite the ever improving, we are not seeing weight increase you are but not as much as historically. Can they get closer to target. When is that going to happen it is not going to happen next year. The wage and price numbers you see this year are a reflection of the economy in 2018 we know earnings are a lot lower this year. So wage growth is going to be lower next year. Part of the problem with wages generally through this cycle is that so much of the growth in employment in the u. S. Has been in low wage Service Sector jobs. Youve gotten a lot of employment but a lot well below the median average Hourly Earnings rather than construction which is well above it when you add on top of that. Technology replacing labor and globalization and other factors, you get this lid on earnings on Household Earnings with the weakness in profits this year. We all know. You get paid this year on how your firm did last year. When the wage cycle comes through, wage growth will be lower. If you are looking for stronger wage and price push, you are probably looking at the 2021 thank you for joining us. Stay tuned for continued coverage of east tech west where some of the biggest players will be speaking to cnbc and dont miss our oneonone interview coming up after this break welcome to street signs. Stoxx 600 hits record highs after trade sensitive sectors lead the gains cnbc learns beijing is pessimistic about the prospect of the agreement of the phase one trade deal but others mood are more positive wed like to resolve something of course we have thanksgiving coming up but wed like to resolve something by the beginning of december and sign it before christmas. Hong Kong University has been under siege the last three days carrie lam demands remaining demonstrators leave peace fully. They have to stop violence, give up theirweapons and come out peace fully and take the instructions from the Police Germany and france drive eu car registrations to a high as volkswagen has a 30 jump in sales. Europe stoxx 600 has hit its highest level since 2015 in the home us and china will reach a deal in their ongoing trade war. Pimco vice chair spoke they will do better to try and align their interest rather than compete america has three or four generations of Silicon Valley trained technologies china has some great examples crown jewels like huawei but they have nowhere near any type of culture like Silicon Valley or around like what we have in north california but they have an incredible manufacturing acumen the two together if they could align could be very powerful for the planet lets get out to jeff at east tech west. Hearing the interview with the vice chairman of pimco talking about the alignment of u. S. And china. Youve got to think many other companies are hoping for an alignment of interest here as well yes joumanna, i have a terrific guest. Ive managed to find another european here at this event. He runs the Greater China business for ibm great to have you with us. Lets start with the difficult ones first pessimism is the message today coming out of beijing on the likelihood of the trade agreement. We dont know whether Real Progress is being made but what is the likelihood of the position here what is your wish i dont want to speculate on anything everything i read happens to be untrue well get a deal when we get a deal the option has never changed we need to merge the two governments to resolve the issues we want to have a deal we want to have the situation. The tariffs are not a solution they are counterproductive they are taxing American Business and consumers my opinion is that the reason will prevail ibm will stand for International Business machine that means we are certainly a good advisor to both governments to resolve the situation we want to do these global trade agreement, we need that. The other news weve had is that there has been a 90day extension for Companies Selling chips to huawei. Again, for those who want to see progress in the area could be perceived as a positive message. We had a very small situation with huawei. What we think is that we need to get back on the real thinking that you need to take all these companies in china to become enter prizes thats the theme we are selling right now. We have all the cap ability to achieve this thats interesting but the challenge here, it seems to me is knowing what is real and what isnt real a tf company here did an examination of how Many Companies that claim to use blockchain actually use it and it turned out to be about 10 . What are the real rates of penetration in the market . Good question we did a survey of the Business Value in ibm we found 40 of business are using ai 14 . The average is 10 china is a little ahead. There is a long way to go. There are some barriers to adoption of ai what to do with ai, just the proof of concept,the pilot you need to get out and really roll out the third thing which is a real barrier is what we call trusted ai people really need to have transparency and how you train the system so they are absolutely fair and unbiased that creates a little barrier. We can certainly extend and take advantage of full ai in all the businesses when you talk about all these barriers we look at the manpower side of the story and china is throwing out engineers and graduates. That is an astonishing amount of engineers come into this industry at this time. Does that solidify china to be the leader in areas like ai and blockchain i dont choose sides. I get asked these questions often. As a french guy, i would say we have a great deal of tall ernest in the u. S. And china because we hire them. The team is second to none in china. We leverage all the talents in order to share our clients in the technology which makes the combination of the skills and the technology and companies that we are successful you are just the man to talk about when it cops to cap exexpectations increasing the cap ex to 2020. What is your sense of this there is certainly a great deal of expectations. I can see the global index we are following in ibm is stille toing. So not really a great growth but the industry has been growing capturing the opportunity, blockchain is a great thing. We lunched the first food Safety Platform for walmart and now president xi is touting ai which we were very impressed that will be another wave of opportunity for us the risk particularly in this space that companies spend or reduce until they have more certainty. Here, they are increasing r d spend and engagement with Tech Partners where they are in ad tech bays because they feel once the bad news is out of the way, well get some kind of spring board recovery i dont know whether you read things at ibm or have a different view will it be a hockey stick rebound or look like Something Else what we can say is our r d budget has been very stable especially in good and bad times. Thats the ibm company mantra. We need to maintain. As you know, we are number one in patents in terms of ai. We are very active in this area. I cannot predict it. It has been a pleasure catching up with you joining us from ibm, ill send it back to you in london the Vice President in china of ride hailing discussing what he sees is the key difference between u. S. And china if you look at u. S. And china, there are two different markets. In the u. S. , nearly everyone owns a car in china, one car has to be shared by six people so there is a shortage of supply the condition in china and u. S. Very ifferent. We have to develop much more sophisticated marketplace to manage supply and demand as well as match drivers with passengers than our american peers. Also answering a question about when his firm might try to go public. Im a tech person i dont have a time line at this point, i think i mentioned that penetration is only 2 . We need to continue to improve our safety and continue to create user value and that is the focus for us at this point lets talk a little about the future you recently spun off the driverless car unit. What are the longterm plans and when do you think autonomous drivers will affect didi as you know, our driverless unit became an independent entity this year the value in safety and in efficiency what i mention about safety is that it can entirely eliminate human errors over 1. 35 Million People die on the road every year. Autonomous driving can help that on the other hand, today, we were only able to fulfill 65 of user request Autonomous Vehicles is an effective way to fill in the gap. They are going to roll out in a staged fashion perhaps in some geosense area that will coexist. When do you expect to see the First Vehicles on that platform . Well announce that in shanghai very soon soon. Users can hail selfdriving vehicles that was more from east tech west also coming up on street signs. The russian tech giant strikes a deal with the kremlin. Well get the details in just a few moments. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to street signs. Lets check in on how the european markets are faring. The if the ftse 100 is leading the charge very good Performance Today out of minors. Many of those names up 1 to 1. 5 the dax up almost 150 points a good rebound session cac up. 4 car sales are drawing a big rebound. A lot of those names in germany and france volkswagen up about 2 in trading. As for u. S. Futures. Yesterday, we reached a record close inking out gains s p and down and nasdaq pointing to positive openings today well ge earnings out of home depot and kohls and of course the impeachment hearings seb has responded to a report about Money Laundering the bank received a list of 194 corporate names that will be included in an Upcoming Television broadcast and already looked into many clients on that list and already ended its relationship with 95 of them and assessment has remained unchanged. Julius baer said it would take an impairment charge of 90 million euros. The subsidiary underperformed last year and has seen further out flows and high level executive departure this year. Reported that assets under management jumped 10 . Shares in easy jet are higher today after reporting a full year profit at the upper end of guidance it also saw a dip on which the company blamed weaker comments the budget carrier announced plans to become the first to spend 25 Million Pounds each year to make things possible a Strong Performance by easy jet. They are the latest to place the new airbus order the long haul jet liner in a deal worth 50 billion putting in a 14 billion order for airbus 350 coming on the heels of the dubai air show. The tech show closed higher after agreeing to a restructuring deal we are joined now by the cfo kindly getting up early for us i want to ask you how does this restructuring work and what is the need for it . Good morning. Look, i think to get a sense of how big yandex is as a whole, youll have to imagine google and spotify are all rolled into one. So the impact we have on consumers and on society is much greater than one would have. Over the last years and months, it become clear that there is more and more concerns about things like data and protection of ip. The same issues impact a lot of folks around the world we came out with restructuring announcement, which we put out to our Share Holders yesterday we hope Share Holders will be supportive of that reflective of relief in the interest of solutions. You mention concerns about some of these issues more interestingly it has been discussed my understanding is that Legislature Might withdraw or amend that legislation, why would you pursue this kind of restructuring . Obviously the legislation is still in very early form our goal is to be proactive and come up with a solution that does balance the interest. The interest of the country and the sovereign. We think this addresses all of those concerns and we think it is just because of all of that. What about consumers . What will the likely impact be on those who use your services and enhance consumer Data Protection the way that this Public Interest works, it creates this subcommittee which has oversight over changes to our data policies and has oversight of potential sales of data to foreign entities to that case, their protection is enhanced by this creation how would you describe your relation with sberbank, they dont have the veto power anymore . Let me clarify really quickly. Sberbank are not a very large share holder not even sure if they are a share holder per se theyve blocked 25 of the shares in the company by another party. More importantly, the chairman sits on our board and we have multiple successful ven tors such as yandex post restructuring, that should not change in any way. Thank you for your time tune into our coverage of russia calling over the next few days as we hear from other countries. Thats it for ourho sw today. Im Joumanna Bercetche and im willem marx Worldwide Exchange is next support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. It is 5 00 a. M. Here in new york the dow trying for its 13th record close for the year. One former trump executive says the president s credibility is on the line. Unrest continues in hong kong a stand off now in its third day. A university there is surrounded a boost for boeing and maybe this is why markets keep going