Will be solved as a whole in the near future. Maybe there will be a limited agreement between United States and china. Melt down in the steel sector shares plunge more than 10 as they lower their 2020 outlook. Fiat chrysler shares see red after they prepare for themes for a gm lawsuit welcome to the show, no deal this year. There are big barriers to a preliminary or phase one trade agreement which could push negotiations into 2020 talks have tumbled over beijings demand over tariffs and the u. S. Demanding over property rights. So i can tell you this. China would much rather make a trade deal than i would. Why havent they . Because i havent wanted to do it yet. Why havent you because i dont think theyve stepped up to the level i want the president toured the apple facility in austin, texas with tim cook. We have this report. Reporter the Unlikely Alliance between tim cook of apple and President Trump continued in austin as the president toured the facility where they manufacture Apple Mac Pro computers. Those are the high end 6,000 plus computers that apple doesnt sell a whole lot of but they are made in the United States in austin, texas. The president has been campaigning on the idea of bringing jobs back to the United States he told reporters what is going to happen to apple in terms of poe at the sh potential tariff increases the problem we have is samsung is a Great Company and a competitor it is not fair because we made a great trade deal with south korea but we have to treat apple on a some what similar basis that we treat samsung. Reporter that reference is important and comes from apple talking points about why they feel they should be treated fairly visavis their competitors around the world it is not clear as we stand here now what the president is going to do about apple exclusions or what the president is going to do in terms of the overall china trade deal but there was a report on wednesday that the face one deal might not happen in 2019 that sends an ominous signal for those watching and potentially ominous signal for apple but that one comment potentially a Silver Lining for apple and tim cook in austin, texas. Reporting for cnbc in austin the delays may have impacted the stock market here in europe, you can see the major indices trading off. The ftse down seven tenths a percent. Similar story in germany, down half a percent cac in paris trading off by around twothirds a third. In asian markets, they hit a threeweek low the nikkei down a half percent and shanghai down a quarter a percent. In europe, you can see the impact this conversation is having basic resources down around 1. 5 we are watching banks closely. They are trading lower by more than 1 . The chief european economist from jefferys joins me now david, if there is no preliminary trade truce between now and december, what happens to exporting economies here in europe the thing about the eurozone economy is all based around Consumer Spending and investment it has not been based around trade at all at the end of the day, even any resolutions, i could imagine this growth could average around 1 if you get a resolution around u. S. And china and brexit, which has been a major issue holding back the economy as well the eurozone economy could grow to 2. 5 . I wouldnt be completely negative we know that things like commercial Real Estate Market is running. The ecb was talking about that yesterday. We know changes will be coming through in terms of the fiscal front. France and portugal, if they adopt these, they will have the ability to spend more. Im not that bearish about Europe Clearly it is a major head wind and the impact on the stock market is there. If brexit turns out to be even more of a nightmare, you are still saying we have hit a flaw hopefully, if its a really disruptive brexit, that would be a problem for the europe ozone the direct link there is so much higher the other story here is trade diversion. If u. S. Trade flows with china are being impacted you can see the investments have rolled over. In the eurozone as im describing the corporate sector has moved back into deficit which is something japan hasnt seen which is another reason for seeing the slow growth in the eurozone. The corporate sector has seen a deficit. Im not so bearish if it is a disordererly brexit, we dont get a resolution beyond next year and everything goes further worse in terms of these trade negotiations thats a major issue the domestic economy is doing better than people think when you talk to investors and clients, you are looking at things like the corporate sector surplus in places like germany where else are you looking at other than france and germany . Things that always surprise investors, we show you charts of bank lending picking up in other countries. Places like netherlands, you have a lot of cash flowing the dutch market and real estate and a pick up of wages general wage increases are at a rise unemployment are up. Youve got reasonably strong real household income. When i meet investors, they dont understand or believe and we show them the evidence which is quite compelling. The problem is, we are talking about 1 to 1. 5 growth the ecb recognitions this. Christine lagarde and other politicians understand this. We are moving towards more fiscal response. On that, they highlights other economies where they saw potential risk being exceeded. Im wondering. You talk about the forecast for france, 3. 1 spending. Italys debt to income ratio do you think it is likely those will be losened in the future . Whoever in elected in the uk on the 12th, going back to Gordon Browns golden rule and exclude the cap x and that would give us a save from potential upside it will also help portugal there is this whole issue about chime at change and Green Investment policies. The point here is that you have a fiscal response targeted it will help private Sector Investment as well there is a lot of Corporate Cash on the Balance Sheet europe will help on the upside the narrative now is very negative david owen, chief economist at jefferys. The french finance minister said he does not think the uk china trade war will come to an end soon but he hopes a limited agreement can be struck soon my colleague is in paris with more details karen, did he seem genuinely optimistic washington and beijing could find a compromise . No. I think that was one of the clear messages coming through that there will be uncertainty longer than people think there might be a limited resolution, it is not going to solve all the issues weve been seeing raised between u. S. And chinese. What is also key is the impact on european economy. Fiscal stimulus has been very important in the context of weak Global Environment it has spent about 10 million euros. The reform process hasnt finished yet pensions are the next big ticket also changes the government wants to bring having some fiscal space, incredibly important if you just think about the spending that has taken place here, it has been enough to shore up the health in france. The numbers will be even more dramatic by the end of the year where it is thought to be 1. 4 for france you can see the importance of that spending measure from the government it was a chance for the french finance minister to take a free swing at the German Economy. He didnt take up that challenge. It tells you about the partnership and agreement to tell you about growth and not just one or two. Take a listen. They need to have the high level of growth in france and germany and all of the eurozone. The challenge for all of us is to have a stronger level of growth in the eurozone we cannot be satisfied with the current level of growth in the eurozone around 1 that is not enough for our competitiveness and the creation of jobs and the prosperity of the citizen. Lets talk about the figures for growth already discord over negative rates. The louest voidest voice in supf negative rates is President Trump but hes not on the board. What do you think happens from here do we go lower or is it time for the germans to step up for some stimulus i would like to make two remarks. First, Christine Lagarde is great. She will be a great president of the ecb. Not only because shes a woman but because she has all the skills to be the great president of the ecb my second remark is to say that it is better that donald trump is not a member of the board of the ecb. Im not sure it would be the best situation for the ecb then when we are looking at the current situation, we must be aware that we are at the end of the efficiency of the policy as such i think they have made huge support and is successful. But clearly that is not enough anymore. We need more stimulus if we want to have the necessary funding for new technologies and structures right now to have a fiscal stimulus by all the countries that do have the necessary fiscal space germany, netherlands many do have the space to vest more we are asking them to make an effort and to spend more money for the sake of having more growth and more prosperity the french finance minister speaking to me on stage here i want to extract some points. The comments about fiscal stimulus that needs to happen now. The fiscal stimulus happens from germany but the minister was sayings that not the timing. He wants that spending to start right now. The other words about Christine Lagarde. A warm tone. The fact that there is some harmony is a good starting point as we talk about moving further beyo and talking about gender equality there have been measures to bring more women into the board room Record Number of women in parliament there is more work to be done. Just two women lead cac listed companies here in france i asked about what is next for the french in tackling gender equality one key point is first of all the top jobs we need to have stronger reserves for access to the top jobs for women we still have a problem with training when you are looking at the girls that are going into jobs like engineers or scientists we dont have the number of women we are expecting we want to fight against that inequality thats a key issue access will be one of the key line we will support in the very next month. We are in the process of thinking about the new low that might be passed at the beginning of next year to address those issues access to financing and top jobs for women. Access to Training Like scientists and engineers we want women to run france in the very next future the minister was also making the point when female entrepreneurs go to banks, they ask is this for your project or your husbands where we started talking around trade, everywhere in the market they are looking for some form of trade resolution. Even if we have one, it may not bring the certainty we are hoping for back to you. Thank you, karen. Elsewhere, porsche ceo said increasing duties could hit the top and bottom lines of the carmaker all increase tariffs against companies are against companies in the u. S. And all the people who work with our companies in the u. S. Is it more likely to hurt sales or profits it could be sales and profit also at the end, we have different scenarios. We are watching very deeply what happens. Sticking with auto sectors, shares of fca have continued to decline in milan the auto giant said it will defend itself against gm who filed a case which claims the carmaker bribed united auto worker officials for what it describes a pattern of racketeering and that it costed billions of dollars. In its response, fiat is astonished by the content and timing and says they are trying to close a deal with the psa and canceling the dividend for the first time in six years. It posted a steeper net loss for the full year. A weak performance in cyclical business, the industrial giant has struggled with a process that has halted full profit warnings coming up, the key milestone two luxury groups have reached plus france wins the lottery find out how they are cashing in with a highprofile debut. My mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to the program. Tiffany shares rose on reports lvmh has increased the offer for the jeweller the French Luxury Group has upped the bid up from 120 billion. Looking at these share prices, investors dont seem all that happy. Is there anything analysts are suggesting is behind that negativity it is no surprise this discussion is moving forward it makes sense for lvmh to go after tiffany. The question is finding the right price. For lvmh, they have deep pockets. No question. But there is no bidding war. There is a turnaround at tiffanys the multiple when they were higher but we cant compare it to tiffany the turn around there is much greater. It is very unlikely dif any will create the same amount of money for lvmh of course they are upping the offer, the first offer of 120 per share, they said this is too low, we want to have more. The question is how much farther. Reaching 130 per share, we are getting close and we see the price getting closer to 140 per share for the right offer to be accepted is there a possibility they are looking at that increase already thinking we dont want to pay that much, thats why they are selling off it is a big endeavor to take on tiffanys. There is a lot of work that needs to be done there lvmh is good at doing that they want tiffany. High luxury is the sector they want to develop. It is the Fastest Growing sector jewelry is something they want to go after. There are not many brands as iconic as tiffany. They have one big brand which is bvlgari, they offer the right price. The ceo and another board member have worked at lvmh and they know very well they know each other it is a step forward and the price is being revised up. They are nervous to see how far the price will go and not going too far because of the turn around days needed france has won the lottery the ipo part of a wider program to privatize we can talk a little more about. How does this fit into the context of frances plans. You can see a successful ipo that is the message giving the market more encouragement to push further when macron was elected president they would disinvest that is about 100 billion euros. They want to disinvest in some of them and have the debt. They want to invest in an Innovation Fund and create something in ai and other technology some of this will go towards that 1. 8 billion euros from this ipo will go to that fund that opens the door and gives them argument to push further. The key one here is really the crown jewel. The french government owns about 50 and is the operator of the paris airport. That would make a huge amount of money for the french government. It is very controversial in france it has been blocked saying this Strategic Asset has been blocked and put on ice until 2020. The local election, there is a constitution put in place for the moment this success obviously give arguments to push further with further asset sales. It is not a controversial one. It is not seen as a Strategic Asset. The infrastructure are seen as strategic. They really encourage retail investors. It is also a cultural exercise to bring people to vest back in the french market. The number of individual investors are divided by two since 2008 also bringing people in already to the campaign to invest in these iconic brand they have 25 million adults. It is a big brand. They used this ipo to bring people to veinvest in the stock market and other assets that could come in 2020 thank you for those stories coming up later, well speak with theodors in a flowery fog. Will be interesting. Rs. With a 100 natural propellent. Rs. It leaves behind a pleasant scent youll love. [deep inhale] freshen up. Dont cover up. Febreze. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to street signs. Im willem marx in london. Stocks decline around the globe. A report suggests u. S. And china may not sign a preliminary or phase one trade agreement this year the french finance minister says you cant build growth in europe while the world superpowers fight a trade war but there may be soon a limited resolution i dont think that this war will be solved as a whole in the near future. Maybe there might be a slight agreement, limited agreement between United States and china and i hope it will be the case might apple get a pass. President trump suggests the tech giant could be exempt as he joins ceo tim cook for a factory tour in texas. The night part is you dont have to worry about tariffs when you build in the United States hes a very special person as far as this country is concerned because of the great job potential. Fiat chrysler shares shee rd as they prepare for a lawsuit brought on by tgm the ftse 100 trading off almost four fifths a percent lower. The dax trading off a half a percent. You can see the cac trading off three fifths of one percent. And the mib down around four tens of a percent. The dollar slightly weaker against the yen, also the pound and the euro the pound slightly higher on the back of some of the Political Developments weve had more holes coming out in the conservative party which they tend to seem better the dollar also slightly weaker there. We check against the u. S. Futures. You can see after that pretty negative day around the dow jones. Those are the worst day yesterday. All three of those to open slightly more than 30 points right now. Back here in europe. Moodys has lowered the out look from negative to stable. Low Interest Rates were away on credit worthiness. Take a look at share prices where they are both trading pretty significantly lower on the back of that review from the ecb talking about the continued low profitability from the banks. Commerzbank down around half a percent. And last year, the central bank warned the German Economy was not prepared to weather a recession on the back of the global trade tensions and uncertainty. My colleague is in frankfurt now focused on the bundesbank. What should we watch for from todays review reporter most likely comments coming out of the bundesbank and the state of the german banking scene we although profitability is low. You will think whether they will weather an economic down turn or not. The other point is on the assessment of the bundesbank where they stand on the economy. The ecb still painted a rather gloomy picture the Vice President was saying that he is actually seeing some Silver Lining on the economy because some of the tensions have gone away like hope for a trade deal brexit is not more of that concern. It is interesting to see what the assessment for the German Economy is clearly, we have seen a lot of weakness due to all of these uncertainties. On top of that, im sure well get comments on the adverse effect of the new stance which was enacted back in september. The lower for longer effects on the ability as such and also the insurance and pension industry not to forget, they play a huge role in europe and germany we have loads of those corporation in the saving society and what it does to that sector and the system will be a topic here in the press conference the release will come a little later after the press conference well bring you an interview with the president and governor of bundesbank and responsible for that financial stab illity review the feds already signaled the because in monetary easing for the third time most officials believe the move would be enough to support the economy and members saw tentative signs that trade sanctions are easing before those minutes came out, we were told trade uncertainty is a major factor weighing on the u. S. Economy weve taken out some insurance against that we still hear from our business contacts that they are sitting on the sideline waiting for some of the uncertainty to be resolved i dont think the expectation is for a major deal but even a truce would be significant reduction in you uncertainty for a lot of businesses around the country that are sitting on the sidelines in terms of investment lets take a look at oil price. Brent trading off about a fifth of a percent wti at 56. 95 not so far off the mark but down around a tenth of a percent. Putin has slammed countries like the u. S. For ignoring the Environmental Impact of shale production he called it a barbaric process. He struck another stone about opec translator only coordinated steps can bring the opt mall effect for the Energy Market in this sense, we will continue working with saudi arabia with the gulf, with opec countries within the framework established in the recent years. Of course, we have certain differences on certain insignificant aspects but we have a shared task, the task of making the markets balanced, acceptable for producers the markets should be predictable. We with go live to the same event. The Russia Calling Forum in moscow reporter im pleased to bring in our next guest. The ceo of europes largest producer of phosphate based f t letter lieser. A very interesting story when you look at the story of u. S. china russian trade first of all, how are you seeing demand today there is a demapped fnd for e fertilizer and the food. We are 7. 7 billion people and well soon be 9. 7 billion. We see an increase in agriculture. We see a change in demand, a steady change for all times. Fertilizer in particular there is growth every year this year in particular, we saw some disruption particularly in the United States because of flooding and with the environmental weather conditions in the states, they have already three seasons. This will have a very big impact i believe that in terms of real demand this will be very healthy. I want to ask you about the u. S. china trade war china is a huge exporter of phosphate. Do you see any benefit as a result of this in terms of trade wars for phosphates, we dont see the disruption particularly. There is a situation with the market of course, the trade war puts pressure on the growth and this is very important. The prices are falling down. They see it in a different industry everywhere. At the same time, yes, we are competing with the chinese on different markets as well. What this trade will really cost in china, there is not evidence for that but the environmental problem for shutting down several plants from main land kleina, it was delated. I think if this trade deal was signed, well see a reduction of export from china which is also the global so others will be able to take advantage of those shifting supplies exactly how exactly for the shifting market for instance, you know we are growing. This quarter last year, we have shown plus 15 in terms of production of fertilizers. We have a surge until 2025 for another investment of 3 billion which will bring us to the question of prices well continue to grow we need to add another 25 of capacity for our production in the fert adviser. Do you think the industry has been underregulated. Trade barriers still exist for reasons within the product mix is that an issue for you that is an issue. The agriculture al business in the world is the most regulated business today, there is evidence in terms of the basic cost of the people there are several situations today in europe, south african, kenya, vietnam and many countries as in russia that reduce the levels of heavy metals inside fertilizer, in the land, in the water it also gives us a huge opportunity, our rock, the phosphate rock is the most purest today you can find in the world. We may come with this product and the current demand for healthy food which comes from states and europe. The fertilizer comes from not companies. Particularly to the European Market we are out of time thank you for joining us today we appreciate it back over to you thank you so much coming up, bombshell testimony from a key witness that bolstered allegations of the quid pro quo with ukraine. Well have more on that after this break people talking for every dollar you spend at a small business, an average of 67 cents stays local. 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Ambassador to the eu Gordon Sondland as he testified yesterday. He claimed that the desire for a quid pro quo came directly from President Trump. He described how the president s personal lawyer Rudy Giuliani broke it at a meeting in the oval office for an investigation into joe bidens sons. President trump denied that by saying i want nothing. I want no quid pro quo last night, the fifth democratic primary debate jay gray filed this report reporter ten candidates, two hours. First of all, we have a criminal living in the white house. Explosive testimony from ambassador sondland. We have a president who is not only a pathological liar, likely the most corrupt president in the history of america. The questions were rapid fire what was once called Climate Change is now a Climate Crisis do you describe your Campaign Including your plans for medicare for all as a Political Revolution branching out to include issu issues of inclusion and inequality i do not have the experience of being discriminated because of the color of my skin, i do have an experience of feeling like a stranger inmy own country. When donald trump was elected, knots even sworn in buddied up to steve bannon senator harris is unfortunately continuing to traffic in lies. Looking to make an impact with less than 11 weeks now before the first in the nation iowa caucus. With the feel growing, former Massachusetts GovernorDuval Patrick getting in the race. The Founding Partner of Hamilton Place strategies. Sondland either a key witness or key coconspirator according to one of my colleagues, how critical do you think yesterdays testimony may have been it is clearly the most powerful testimony so far. You pointed out two of the key points one is confirming the quid pro quo. That there was a quid pro quo involving something in exchange for action by the ukrainians to investigate the bidens and everyone knew. He said repeatedly, everyone was in the loop. What was most important was not just the what but the who. This is not just a Career State Department employee or defense employee this is a political appointee of the president and a longtime political and campaign supporter. You cant make the case that this is some biased Obama Administration holdover. Another colleague spent the afternoon reaching out to republican strategists and representatives and asking them about their reaction he came away with the impression that essentially many of them didnt think it was all that damaging to the u. S. President do you expect the Republican Party and senators will stay united around President Trump . I do. I think johns assessment is exactly right on that. We could look at this and see what the facts are saying. Independent voters may come to a different conclusion the Republican Party right now is a trump party they have circled the wagons around the president both around the house and the senate it is hard to see right now whether there is enough to sway some votes in the house and certainly any votes to convict the president in the senate. We may see additional testimony from fiona hill which will add more color and context ultimately, if there is going to be a grand testimony that is bigger than what we saw from Gordon Sondland yesterday, it is if they are ultimately able to get john bolton, the former National Security advisor to the president in a witness chair that would be perhaps the best chance that democrats have to persuade republicans one final question, you talk about republicans staying united last night, we Democratic Candidates very united on the topic of impeachment but not other issues including the idea of wealth tax. Do you think some of those proposals could get watered down because there are different views in the party i think so. I dont think the math is working out very well. Im surprised there werent more attacks on elizabeth warrens plan there has been a lot of independent criticism that her plan doesnt add up and shes double counting numbers. The front runners yesterday. Buttigieg, warren, biden, sanders, they probably all held their ground well. They didnt attack each other very much. The two movers are probably cory booker and klobuchar who both had very good nights thank you very much for our european movers, do stay with us, well be talking about the german bundesbank. It will be releasing the latest Financial Stability review well move over to the u. S. Futures as we move to the u. S. Programming. vo the moth without hope, struggles in the spiders web. With every attempt to free itself, it only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Did you know that feeling sluggish or weighed down could be signs that your digestive system isnt working at its best . Taking metamucil every day can help. Metamucil supports your daily Digestive Health using a special plantbased fiber called psyllium. Psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. Metamucils gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. So, start feeling lighter and more energetic by taking metamucil every day. It is 5 00 a. M. In atlanta 7 00 p. M. In tokyo trade fears putting investors back on edge from retail remembering to alltime highs what a difference a day makes and why amazon may have a real problem. Designed in california, built in america. That was the message from the president to tim cook. The two look to broker a new kind of trade deal not just tim cook. A report that the president met with another top silicon valley