The year. Hugo boss goes down a size. The fashion brand pledges to slim down operations, focusing on its two main brands as it pledges to get back to growth by 2018. The iea warns of a period of greater Oil Volatility ahead but prices wont peak before 2040. Well speak to fatih baril. Welcome back. We have a full hour for you on street signs. This morning, a similar story to yesterday with the markets, most of the markets hanging on to green. A couple markets trading slightly lower. The ftse off by a couple points. The cac 40 and the ftse mib trading higher, the dax just a bit lower. Weve seen heavy weightings in the likes of pharmaceuticals. Technology up by 1. 3 . And two sectors seeing some trading, healthcare and chemicals. Looking at bouygues shares, the company confirmed 2016 earnings outlook despite the french Industrial Group posting a 3 fall in sales for the first nine months of the year the bouygues operating profit came in higher than expected at 570 million euros. The firms profits were boosted by the stabilization of the french Construction Market and the restructuring of its telecoms unit. Hugo boss expects to return to growth by 2018. It expects 2017 to be a year of stabilization and will focus on two main brands, boss and hugo, or hugo and boss going forward. Shares of bay earn have been trading up. Notes will be used to help fund the proposed acquisition of u. S. Rival monsanto. It is the biggest European Equity raising so far this year. Joining us now is james bardy, head of european equities at bank of america. James, good morning. Investors once again scratching their heads when you look at the dow jones, a seventh straight day of gains. Yes there are questions of how investors got it so wrong in the predictions of a Trump Victory, more to point, where do we go from here, particularly in europe, because equities were a little reluctant to join the rally. The big trade since trump got elected is the reflation. You can look at the top level of equity markets, but underneath theres massive rotation. Banks outperformed, commodities outperformed, then the Long Duration defensive sets are struggling. The top level masks that. Though, europe has been struggling as well, the s p has not had great performance. The dow has done better. We can see the reflation coming. We know trump will deliver fiscal stimulus, theres a question on the trade side, and then how big and how quickly. Having initially played that, we are in the situation where we say lets see what he actually starts to deliver and puts on the table, and for markets to push on from here, they will want to have comfort on the fiscal stimulus delivered. Some degree of comfort on what trump will do on the trade side, and finally the other big move weve had since trumps election is the back up in bond yields. For equity markets to make progress that needs to stabilize. We are wondering perhaps how long a pause in that reflation trade, when you look at bond markets, will last. Bunds have seen some of it as well. Theres a limit as to however you can stretch the elastic. Weve seen that gap between tenyear treasury and tenyear buns get there to historical levels. The point i made before the election is when people are looking at bond yields, how much further can they go, i said at the beginning of the year we started with treasuries at 2. 25, all weve done since the summer is largely unwind the gains weve had post the crisis in the early part of the year and post brexit. How much further can we go . Ive heard a couple people saying 3 on the 30year is looki looking too topy at the moment. Weve done a lot in a short space of time. We have various models to look at this thing. Theyve gotten into extreme oversell territory for the bond market, extreme overbought territory for the cyclicals and bank stocks. So were not far off the point where this starts to stabilize. Thats the point where we need to see more evidence out of the new trump regime as to what theyre going to do. So i would say going into next year, if you look at what trum trum is proposing, it is stimulating. The bond yield should go higher over the course of next year. So you remain a buyer on the dips. In terms of sectors, where you would putting on for the positions, where would that be . I think you need to draw distinction between what you do today and over the next few months. Over the course of the next few months, we want to be in the short duration sectors, the cyclicals, financials, and i think the Long Duration sectors, where people have hidden for a long period of time, staples, telecoms, those sectors are probably going to continue to struggle. In the shortterm, i think we do have pores, but in the longer trade that has a ways to go. Oil and gas numbers . What are your thought . Were overweight. Our overweight position is based on the view not so much what opec does in the next few days but going into next year, we think the oil market goes from surplus to deficit. Clearly if opec can deliver some stabilization in terms of their production that would help. All right. James stays with us. James bardy. Want to hear his opinion on this next story. This is a good one. We have been discussing offset the word of the year which is posttruth, as oxfords dictionarys 2016 word of the year, following junes brexit vote and trumps election in the United States. The company wanted to reflect what they call a highly charged political 12 months. That could be an understatement. The word has been defined as an adjective relating circumstances in which objective facts are less influential in shaping emotional opinion. Other words are becomes tear, coulrophobia and im leaving this one to lou, hygge. Hygge. What is that . Its like coziness, but ive seen that you need to have candles, a blanket. I thought by the fire. This is what were doing this morning, a hygge chat, a hygge day. A cozy mindset. Tosstruth. Were basically saying or the definition is saying that facts are less important as emotion. I guess also as communication as your ability to convey some type of emotion. Interesting its not just emotion, personal belief. I think this is very interesting coming three years after selfie was the word of the year. A lot of people are blaming the Populism Movement on the white working middle class being left out but also the party of me what do i want. And perhaps i as a voter am bigger than any one person. And with selfie, people taking pictures of their bums apparently. I dont know that one. Youre hanging with the cool kids. No, no, no. But it is interesting how communication changes and how we listen to leaders or leaders to be. Do facts matter less . I certainly think if you look at the campaigns this year, both brexit and the u. S. Election campaign, theres been an element of exaggeration, the 350 million that went around on the bus in brexit. Most people knew it wasnt really quite the right number. Theres been an attempt someone else is weighing in. But i think the point is that, you know, with twitter, with facebook, this modern age, where people have said if we throw it out there, some of it will stick. Thats been the case in both brexit and in this u. S. Election campaign as well. I think hygge will stick. By all means, email the show, streetsignseurope cnbc, were on twitter as well, louisabojesen. nancycnbc. Bonding over trump. The founder of the words Largest Hedge Fund says he expects the global bond rally to continue after the u. S. Election. Well be live from the ubs conference to talk credit strategy after this short break. Bank of England Governor Mark carney says Central Banks are not to blame for rising income and inequality. He hit back at politicians who attacked Central Bank Policies accusing them of massive blame defection exercise. The governor went on to warn a hard brexit was still a real threat to the city and could push banks to move operations abroad. The fed vice chair, Stanley Fischer admitted he was surprised by the outcome of the president ial elections. He said the world now was not where he thought it would have been last wednesday. As for implications the monetary policymaker said it was too early to assess the Market Impact of a trump presidency. St. Louis fed president , James Bullard what been speaking in the last hour. Hes been saying one Interest Rate increase possibly in december could be sufficient to bring u. S. Monetary policy to a neutral setting. He went on to say the u. S. Monetary policy outlook has not changed after the election. And that from the feds point of view, a rise in Inflation Expectations is a good thing. Busy day of fed speeches yesterday with boston fed president also weighing in saying he thinks a december rate hike is plausible barring any significant negative news. In september the historic dove joined the minority of policymakers calling for a rate hike. Mr. Rosengren said he is sticking with his hawkish predictions until year end. Im looking forward that the economy continues to improve, and that it is appropriate to tighten in december. As you have been hearing as well, the dow posting a fresh alltime closing high yesterday. Helped by an outsized contribution from Goldman Sachs, which was up by 14 points on the day. How long can the rally in banking stocks continue that weve seen since the trump election . Bob pisani filed this report. Reporter financials have been on fire since the election the rally is losing steam and with good reason. The Biggest Bank Stocks are up almost 15 since the election. Morgan stanley, Goldman Sachs, 52week highs. It will be tougher to get those gains from here. The s p Financial Sector is trading almost 20 above its 200day moving average that almost never happens. So banks have been rising for three reasons. First, theres Regulatory Reform hopes. But its not clear how much of doddfrank will be dismantled. At any rate, this would only benefit the biggest monster banks for the most part. Second, banks have been going up on rising Interest Rates. But we have no idea how much they ultimately will go up. The fed will be key here. Interest rates have also moved on the perception that more Infrastructure Spending may be inflationary. But thats a long way down the road. Third is Corporate Income tax reform. Would make sense. Banks would benefit but its not clear how much would go to the bottom line. We need more specifics. And the italian referendum and the Federal Reserve meeting, both are a few weeks away and both could trigger more bank squeamishness. Ges ceo, jeff immelt weighed in on trumpenomics. He welcomed the rise in Interest Rates. I think its so bizarre to have 0 Interest Rates for so long. Think about thinks like state pensions. 15 billion euros trading with negative Interest Rates. Thats warped. I think the notion of getting a yield curve back, getting a little bit of growth back, getting productivity back in the system so you can offset inflation and things like that. Ray delio said trumps election will bring a new era of rising bond yields and the treat of globalization. The founder of bridgewater says he expects the global bond rout to continue. Car caroline is at the ubs conference in london. We were talking to our guest about how high these bond yields possibly can continue to be pushed before we see reversal. What were they saying . The view is that we have to differentiate between short trade and lgtd trade. But some say the level in the 30yearold is topy enough. We talked about the sell o off treasuries but not about the u. S. Credit market. I want to do that now with my next guest, matt mish. Thanks for joining us. What happened in the u. S. Credit . Did we see a selloff similar to what we saw in treasuries . We saw a lot of demand, particularly overseas after the initial reaction to the vote. As you move through later last week, and into the early part of this week, there was a bit more volatility, but net net the market is still, from a spread perspective unchanged. Versus levels prior to the election. Issuances have fallen off, but theyre starting to come back at a high pace and grade. It will take just a couple days and weeks and you will see that spigot open up. Why do you think we saw that after such a violence sell in treasuries . Is it that the yield surges no matter what government well see . I think a lot of demand is coming from places like japan, europe, increasingly from china. What you tend to hear is that rising rates in general are not going to be all else equal, they are a concern for those clients. What you will see, i think, is if that rise in Interest Rates pauses, more credit risks and more fundamental stress. Thats a different type of scenario. Right now people are looking through the rise in rates assuming that, a, growth expectations are rising. B, Inflation Expectations are rising. So net net a lot of the rate increases that were seeing are healthier which is something the Central Banks want to see. They want to see inflation go higher. Thats the good kind of rise in rates. What about the rise in rates that is precipitated by a rise in policy rates what if the fed has to hike rates much quicker than anticipated what does that do to u. S. Credit . Would be more concerning. If you get a rise in policy rates, you get a rise in Interest Rates, that translates into a rise in real rates. Thats a de facto tightening of policy. Credit easing or the buying of Corporate Bonds in places like europe and in the uk has driven investors into u. S. Credit. The flow story has been positive particularly for high grade credit and more broadly global credit. If you get a de facto tightening in policy thats not related to an increase in growth, the concern is you dont have earnings growth, you have a tightening of policy which potentially risks an unwind of those flows. Where you have seen at u. S. High grade, leverage loans, or u. S. High yield, most of those markets have grown postcrisis from 60 to 100 plus percent in relative terms. Want to talk about some of trumps suggested policies like the Corporate Tax reform. What happens issuance if we see that going through . You note in notes that issuance in the high yield space so far this year is down 19 . I guess that would be hit even more. We would probably say that we think more in the broadbased picture for high grade issuance. Most of the cash overseas is concentrated. Its concentrated at the higher end of the quality spectrum, so aaa to single a companies mainly in the tech and healthcare space. Think of names like pfizer. In general those Companies Issued over 150 billion last year. I think if you see repatriation, were hearing, particularly from analysts, bottoms up, is that those companies are likely to do most of the releveraging they would do. So buy backs in m a with repatriated funds. Net net we think its more of a u. S. Impact for high grade than high yield. We think 10 to 15 could be the decline. A lot depends on the details and timing. We think most of the money repatriated will be used for m a and buybacks. We think both in those sectors specifically, in both cases, we think companies are more likely to grow through acquisition into buyback stock than to grow organically. Investors would love that. Matt, we have to leave it here. Thank you very much for your time. Matt mish, head of credit strate strategy. In about an hours time, well speak to the chairman of ubs. Byebye. On the topic of rates, comments from German Bundesbank in a statement from claudia bush. Bundesbank warned investors may not be prepared for higher rates, specifically the bundesbank is looking at potential risks for lenders saying some banks are issuing loans with longer maturities locking if Interest Rates which could make the sector less flexible when there are changes. The solvency of german banks is not in doubt. Speaking of bunds bank, dont miss our interview with the Vice President of the bundesbank, claudia bush, at 12 00. Elsewhere in germany, a senior in Angela Merkels party says she will run for a fourth term next year. Merkels spokesman did not confirm the decision saying she will make an announcement at a suitable time. Iman wrul macron will join the race for the france presidency. He will officially throw his hat into the ring today. Macron resigned his post in hollandes cabinet earlier this year. Hes young. Young, and its a crowded field. Especially when you look at the republican side and questions over where this leaves french president hollandes whose popularity ratings continue to suffer. I did talk to an investor this week who said hes been here, fundraising. It will be interesting to see how this one pans out. The person i was speaking to said macron is young, good policies, but others worry he doesnt have the establishment behind him. It doesnt have to be a good thing to be young in a political environment. But the establishment doesnt always do you favors in this climate. Vladimir putin has dismissed econo his economy minister over bribery allegations. He with you charged with accepting a 2 milli 2 million b from rossneft. Appearing in court yesterday, he said he was not guilty but it was in his interest to cooperate with the investigation. He is the high est ranking official to be arrested since the 1991 coup. Volkswagen is said to have reached a deal with buy back or fix 80,000 vehicles equipped with emissions cheat devices. Vws recall plan involves a Simple Software update which would avoid a full buyback of affected vehicles. The fix will save the carmaker around 4 billion. That would be a big deal for them. Any agreement on this is encouraging to investors. They want this case to be closed. Also reports of the fresh investigations on the co2 emissi emissions. This should be perceived as good news today. Lets give you a check on british land which had a pretax loss for 205 Million Pound force the first half of fiscal 2017. Underlined pretax profit rose 16 , boosted by 3 rise in like for like income and improved operating cost measures. The companys ceo told this program hes seen no real change in the Property Market from a year ago, this despite brexit. Our leasing volume, the business that we do with our customers on both sides of the business has continued. On the retail side weve done a better part of three quarters of a million square feet of deals. Thats about about half of that since the vote. So, no real change. Compared with a year ago, weve done more deals, on terms with a wider variety of retailers than a year ago. I dont think thats what people were expecting. Barrett developments order book is more than 4 higher this fiscal year despite Challenging Market conditions. The home builder said it had taken pricing action on several sites. They maintained fullyear guidance saying they remain committed to developing 20 of its growth margin for fiscal 2017. We need to take a short break. Keep your tweets coming through, either nancy cnbc or louisabojesen, caroline is on twitter, too, carolincnbc. Look at our blog running the entire trading day. Good morning. Welcome back to street signs, im nancy hungerford. Im louisa bojesen. Here are your headlines this morning. Stocks in europe turn after the dow posts a sevenday winning streak and James Bullard says fears of a market shock from a trump win have not materialized. Bayer slumps to the bottom of the stoxx 600 following its 4 billion notes placement to fund the acquisition of monsanto in the biggest equity raising of the year. The iea warns of a period of greater Oil Volatility ahead but predicts Oil Demand Wont Peak before 2040. Well speak to the iaea director in a couple of minutes. Hi everybody. Welcome back to street signs. Just glancing at this uk jobless data thats coming through. The uk Unemployment Rate falling to 4. 8 , hiring slowing. The weakest growth seen the Fourth Quarter in hour by hour since 2014. Average weekly earnings, 2. 3 . That is lightly below the reuters poll. September was 2. 5 . Also weaker than september when looking at the earnings and wage inflation, something that is followed closely given the Political Movement were seeing. Some records to point out when you look at the jobless rate falling to an 11year low. Looking at the monthly count of jobless claims, higher than expected. The biggest increase since may. That data just hitting our wires and looking at bullard comments from earlier, wondering how the Central Banks will be viewing each other, and what will happen if and when we see the fed hiking rates, now an 85 chance of a hike in december. Lets look at fed futures, keeping an eye to those comments, u. S. Stocks pushed higher again yesterday. Looking here, just a bit of a pull back. The dow jones called lower by 9 points. The s p 500 less than 3 points. The nasdaq less than ten points. We did see a rebound in tech stocks that had lagged other sectors up until now. A lot of people looking at those fresh records for the dow jones wondering how long it will last. Looking at the European Equity picture, a shot of the markets one by one. We are seeing a puback here as well. Losses are just modest with the main uk market off by 0. 15 . The xetra dax lower bay quarter percentage point. The french cac 40 off by 0. 1 . The ftse mib outperforming. This as investors talk up the next big risk in europe, perceived to be the italian referendum in december. Lets give you a check on the fx crosses, people continue to watch the Dollar Strength overseas and wondering what impact it will have here. Were looking at the youeuro slightly higher. The dollar against the yen, higher by 0. 3 . Sterling moving just in the green against the greenback after disappointing inflation data yesterday to keep in focus. The Australian Dollar lower against the greenback by 0. 4 . Lets talk about oil. Were entering into a period of greater Oil Price Volatility according to the iaea World Energy Outlook which says demand should continue until 2040 because of aviation, road freights and pharmaceuticals. They say the biggest winners in the race to meet energy demands will be renewables and natural gas. Fatih birol joins us. Tell us about the environment and whether we are overestimating the impact of hybrid cars or allelectric cars on oil demand. Thank you very much. Yes, we are seeing a change in the oil demand growth. Its slowing down compared to previous years, but we dont expect it to decline or well see a peak in the next years to come because it is true that in the Automotive Industry there are changes. We see more electric cars coming. We see cars are driven more efficiently, but the growth, the biggest growth of oil demand is driven by trucks, jets, petrochemical industry. Only the asian trucks, the trucks in developing asia, china, india, Southeast Asia account about onethird of the Global Oil Demand growth. As such we expect the demand to grow and in that case it is important to see that the corresponding investments to produce oil are made in a timely manner. Fatih, i have to ask what your take is on a Trump Victory what this means for the oil and gas industry keeping in mind that mr. Trump called the Climate Change a hoax in the past and said he will vote to cancel the clean water rule, an act by many seen to regulate fracking. How do you view the oil and gas industry under a Trump Administration . How will it change business . Across the World Governments come and go. This is a normal thing. Its a normal evolution of democracy. Given the sheer size of the u. S. Economy. It is important for the Global Energy system. If the Energy Policies in the United States change, this will have implications for the u. S. Energy markets and the Global Energy markets, but i do not want to speculate now if those politics change how it will affect the Global Energy markets. Sir, if the Trump Administration does not sign on to the principles that were agreed at cop 21 in paris, is the will of the other parties signed on to the deal enough or will this hurt that agreement . As of today, almost 200 countries in the world signed the Paris Agreement, and Paris Agreement if implemented, all those pledges, if implemented will change significantly the Global Energy landscape. We will see more natural gas, more renewables, and oil still an important fuel. Today the share of fossil fuels in the Global Energy mix is about 81 . If paris pledges, which is supported by almost 200 countries are implemented, this share will go down, but not too much it will go to 74 . Even 2040, if paris pledges are implemented, fossil fuels play an Important Role, and if the countrys policies change, Government Policies change, of course this will have an implication on those numbers upwards and downwards. Fatih, can we get your view on the Oil Fundamentals at this stage. Were getting closer to the opec meeting. Once again optimism that well get some sort of an agreement lifted oil prices yesterday. Are some too optimistic . Frnlg it is the modern day wh he hea hea hea hear, what we see, and what we read in the twitters are the investment numbers. 2015 and 2016 we have seen new oil projects have declined significantly. 2017 we may have a third year decline drop in the new Oil Production projects. This, we have never seen in the history of oil that three years in a row investment declines. And this may well leave a measured gap in the next few years, which will have implications for the markets. We will see if the process goes up. The u. S. Shale oil come back. Im not sure how quickly it will come back. Nine months, one year, and this well see movement up, down, which means we see we are entering a period of greater Oil Price Volatility which means both the Oil Importing countries and Oil Exporting Countries need to design their economy policies by considering the how the volatility in the oil prices could affect their economies. All right. Thats certainly raising the question of even if we do get an opec decision whether or not it will rebalance the market. Sir, thank you for joining us. Fatih birol. Donald trump is closing in on his picks for two top roles in his 5 carl icahn tweeted that former Goldman Sachs partner Steve Mnuchin and wilbur ross. Ross served as an economic adviser during the president elects campaign. Mnuchin told reporters to expect big economic changes. Were working on the economic plan in the transition, making sure we get the biggest tax bill passed. A lot of exciting things in the first 100 days. The news comes after mike rogers, a leading contender for the top post at the cia, was ousted from the trump Transition Team. Sources say rogers exit was a purge of loyalists to new Jersey Governor Chris Christie who was demoted within the Transition Team last week. Lets get out to tracie potts who is standing by in washington with the very latest. Good morning. Reporter good morning. Lets talk about what happened in the last few hours. President elect donald trump going back to one of his old habits from the campaign, tweeting in the middle of the night about the transition not going so well, he said overnight its working well, its organized, and at this point only he knows who the finalists are. Sort of a reality show reference there. But he insists everything is going fine. We know mike pence has replaced chris christie. He was there at trump tower yesterday. He will have a sitdown lunch with joe biden today. We also know the soninlaw of president elect trump, Jared Kushner is playing an Important Role in all of this. He, along with the three adult children, the three older adult children, theyre requesting security clearance, trying to find out if he can get security clearance to continue to be part of this process. Early security clearance. So, we now know who some of the movers and shakers are on the inside. We know some of the names, not all have been announced yet. We know the president elect himself in the last few hours is giving pushback to this idea that theres turmoil going on inside trump tower. He seeps to suggest its anything but. Tracie, thank you very much. Tracie potts joining us live out of washington. It does feel like the divisions are quite great. Especially in the first few days after, the talk of university, people calling themselves antitrump wanting to support him. Were seeing that shifting. Democracy, changing government is part of democracy. The u. S. House speaker, paul ryan, was renominated to the top congressional post in a unanimous vote by republican lawmakers in a closed door meeting. He will face an election in january when republicans and democrats vote to elect a new house speaker. The president elects win could mark an end to low rates. During the summer, mr. Padawan said a Trump Victory would be very bad. Two of europes leading drugmakers said they expect no relief for drug pricing in light of Hillary Clintons election defeat this despite a sharp swing to the upside in pharma and biotech stocks since trumps victory. The direction of the u. S. Marketplace is already set regardless of the next president. Violent protests marked the start of president obamas last overseas tour as the sitting president. Riot police fired tear gas at demonstrators in athens who had gathered a few kilometers away from the location where a state banquet was taking place. Barack obama spoke of the need for politics to address public anger and combat scapegoating. The u. S. President also pledged to work with donald trump to secure a Successful Transition between the two administrations. I still dont feel responsible for what the president elect says or does. But i do feel a responsibility as president of the United States to make sure that ive facilitated a good transition and i present to him as well as the American People my best thinking, my best ideas about how you move the country forwarforward to speak out with respect to areas where i think the Republican Party is wrong. But to pledge to work with them on those things that i think will advance the causes of security and prosperity and justice and inclusiveness in america. Coming up on street signs, google announces its building a new london hub. Has the computers titans decision to invest in britain calmed feared of a new postbrexit texitodous. Munch. As the pharma sector rejoices in a Trump Victory, its not so clear what could happen in other sectors. Trump favors lowering the Corporate Tax rate to 15 , but that might not benefit Tech Companies as much as some think. Analysts at bernstein note that the tech sectors tax rate averages about 20 , thats lower than the market overall. It suggests, they say, that the boost to earnings from a lower tax rate might be some 7 . For context, sectors with much higher tax rates, like transports and Consumer Staples could see earnings boosted by 20 or more. But theres also the prospect of a holiday on foreign cash repatriation. Tech companies with big off shore cash balances include apple, microsoft and cisco. Barclays says repatriation could benefit tech stocks from increased stock repurchases. Trumps stance on other issues causes concern for tech investors. His calls for tariffs on goods manufactured overseas could mean higher prices for consumers and potentially lower kale sales f those companies. And trump accused amazons jeff bezos of evading Corporate Taxes and called on a boycott of apple products after Cooks Company refused to help the fbi unlock a terrorists phone. The tech sector has been down 2 since trump won the presidency. Secret snapchat, the apps parent company, snapinc filed to go public in secret. Sources close to the situation confirmed to cnbc the offering would be in the region of 20 billion and 25 billion, making it one of the biggest tech flotations in recent years. Not so secret anymore, i suppose. I understand if you wanted to test the waters, especially something that big before telling everybody in the world. Shares in gaming giant nintendo jumping today after the company set a release date for super mario run, the first mario game for mobile. Nintendo decide to charge gamers 10 to play the full game which will be launched on the 15th of december. Analysts suggested pokemon could have generated more revenue were it not free to download. Google delivered a shot in the arm after it announced to build a new office in kings cross. The google c eseo said he was optimistic about britains future despite the brexit talk. A vote of confidence coming from google, the big tech giants are not alone. Why are you so confident on london as a hub for European Headquarters . The first reason is we followed the business here. We started in the u. S. , had Great Success there, all of the success with the customers in the uk, we followed them here and set up operations here and have grown it to meet that demand. Brexit doesnt worry you . Brexit is a concern for a lot of people. We think about it carefully. The big picture for us is that the Technology Trends were facilitating and providing are universal trends despite any kind of trade deals or any kind of National Decisions or even new president elects like in the United States. I was going to say, since you are straight off the flight from San Francisco what is the view . Are people coming around . Adjusting to what Trump Administration might look like . We heard a lot of criticism from San Francisco, Silicon Valley in the runup. First i think we were surprised. Like a lot of people in the u. S. We were surprised by the results of the election. I think were optimistic about the future of technology, our company and what can happen with this administration. For us, the big thing is people. People that built our company and employees. We need great people. We have the perspective of we have jobs to fill that we cant fill, so we need Technology Workers to come into our country and into europe and flow freely. Have you seen indications thats stopped happening in the runup to the election and after as we have in the uk . I spoke to a number of people off camera who said in my company, x, y, z positions were supposed to be filled, after the brexit vote they have chosen not to take these positions. You have seen similar . We have not seen that change the rate of hiring. Weve seen people be concerned. They were concerned with policies what policies could change and how that could effect the flow of tech workers across borders. Were optimistic about this. We think the Technology Trends are in our favor. Todd, i do speak english, but your cloud Identity Management company. What does that mean . What we do for companies, we believe theres the potential that every company could achieve with technology, whether thats creating better systems for customers, employees, and then what theyre doing today. Theres a gap between that potential and what theyre doing today. We help them bridge that gap. We help take advantage of technology, deploy it securely, make sure its easy to use. Your website was disrupted recently. There was a ddos attack. You were implicated in that. There are risks even if you are a company like your own. With all the benefits of technology sometime theres are hiccups. We had a hiccup a couple weeks ago and recovered quickly. When you spoke to cnbc in may, you suggested an ipo could be on the way. You are closer to that date . We will be a Public Company some day. We dont have a date as of yet. Have you been reassured by the market calm and rally stateside that this is a market more hospitable to Tech Companies . Could be a positive for us, too. You were invited to a microsoft conference, disinvited, and then invited again. Microsoft said something because you are competitors now. Microsoft is a great partner of ours. We work very well with their collaboration and communication products and also a competitor on some products we compete on with them. They are trying to figure out how we both partner in. That was a hiccup. We worked it out. They are partnering with Companies Like skype. Theyve been good at part noering with us and a lot of companies. Since you work with the major cloud players, do you think any one is really winning this war . I think the winners are the customers. Customers are receiving huge innovation and benefits. Theyre doing it with lower cost of ownership, its a better experience for employees, customers. The users and companies are the winners. Do the smaller players survive . In technology the smaller players always become the bigger players of the next generation. Unless they die. So, the mood, San Francisco, you know, is it optimistic youre saying . Yeah. Everyone was surprised. We thought that the election was going to have a different result. A lot of the polling folks did. We took a few days to get adjusted to it, think about what it will mean for us, were moving forward now. Tovdd, thank you very much fr joining us. Were been talking about the posttruth, oxfords dictionary word of the year. What do you think the word of the year would be . Innovation. All right. Thats not a bad one. Thats it for us. Thank you for joining us. Posttruth is a good one, meaning the facts dont matter as much as communication, emotion getting that like anything else there will be a correction at some stage. Thats it for us. Im nancy hungerford. Im louisa bojesen. Back to our colleagues sta s stateside. Byebye. Good morning. Markets now, the dow on a sevenday winning streak closing at another new alltime high. Oil shock. Crude prices pulling back following a huge rally. Well ask if an opec deal is really in the cards. And washington watch trump supporter carl icahn weighs in on twitter on two possible administration picks. Its november 16, 2016, Worldwide Exchange begins now. Good morning. Warm welcome to Worldwide Exchange on cnbc