Transcripts For CNBC Street Signs 20170522

Defense leaders they need to play their part in booting out terrorism. Every terror in the region needs absolute surety that terrorists find no sanctuary on their soil. Russian officials firing james comey would easy pressure from the investigation. Good morning, everyone. Yes, its monday. What a week that was last week with the plus 1. 4 losses given the revelations about donald trump. It seems like were more level headed this week. The ftse 100 inzex up by. 033 . This may number part down to weakness in the currency one telling you that sterling has retreated below the 1. 30 handle given weaker conservative polling numbers roughly two weeks before the election. The xetra dax is up. And i guess were consolidating after last weeks losses. Lets tell you whats happening in the specter phase. What youre seeing chemicals doing very well. And the deal between clairent and huntsman. Well get into that as well. And utilities up slightly. Lets get back to the big story, swiss chemical chi clariant and huntsman have announced a deal in a bid to create a merger where the ceo will become the chief executive of the new company. The headquarters will be in switzerland. But the main Operational Center will be located in texas. And a showdown in amsterdam gets under way today as action with all shareholders including activist investors begin core proceedings over ppgs 26. 3 billion deal. Theyve argued that the tieup would be bad for employees and the environment as well as facing antitrust concerns. Its hoping to convince judges into undergo an investigation. Lets talk more about the two deals. Joining us is the head of m a at gordon. And good morning to both of you. Lets kick things off with the clariant deal. Its finally coming good. Does it make strategic sense . I think it does, both in a commercial level. Both struggling for china. Theres a big angle for them. The companies themselves are talking about up to 400 millions in immediate costs. Thats about 20 of the total company. Butting that to 2. 3 after the deal. So, it seems on the face of it, it makes sense there are very few genuine cases of mergers. To assure, 42 going to huntsman. Thats pretty close so the sbbod is going to have equal representation. There will be a lot of product overlap but you would have also thought there would be some revenues in addition to those 400 million in cross singer jis. Clariant did better. Their revenues last year inbetweened by 2 . The overridie ining issue for bs that pricing has been difficult. Do you think now as a combined company theyll have more power . Or is it the market such that with either size, you cant really make headway there . Well talking about an industry with combined giants in there. Its going to be a roughly 20 billion enterprise value. When youre zealing with beasts that have give or take a 70 billion cap at the moment really big players here. Doubling their size doesnt necessarily give you additional. So, its to be seen. Okay. Whats the potential here for a rival bidder to come in and disrupt the deal, do you think . Clariant is being touted as a Merger Company for many other companies . Indeed. I think its quite a symbol of the past. A major lawsuit a 1 billion payoff and so on and so on. So, i suspect a deal that has the support of both shareholders on the boards of both companies theyre going to be unlike lie to want to try to put this into play. But there are certainly companies that have the capability of doing this. But as we mentioned earlier, this is a sterile industry. It makes sense. Lets talk about the other big deals in the industry. One deal thats been very, very slow out of the gates, we dont know if its going to happen is ppg and akzo. What do you think will happen by the end of this week . Im holding out for a victory for shareholder democracy. Its hard to say how its going to end up. But at the end of the day, this is an unique structure. In uk companies you cant actually see to have a poison pill to the extent you have within akzo. That structure is really unique. Its one of those battles thats almost impossible to call. I think the concerns are trumped up. There are such large players in this industry, that its probably not going to move that Competitive Landscape so much that it would not be backed by the antitrust authorities, yes. Jenna, youve been following the story for months and month, do you think by the end of this week do you think ppg will go hostile . Its very difficult to go hostile. The rules are very strict. I think thats why elliotts taking a less conventional route for many other investors, where elliott does often take a legal angle given the background of their founder. To go down this legally, i think theres an easier way for ppg to go easier. Which i think they would. They would maybe oust the chairman. I think a lot is in play. This the end of the consolidation in the chemical sector . Weve already seen a deal. Is there any more companies that could be on the chopping block, do you think . Well, theyve all been talked about. And weve seen various combinations in every direction. The bigger the competitor gets, some of the smaller players out there are going to have to catch up to that in order to be playing on an even playing field. And then, of course, the ever question mark of the chinese. Thank you for that. Wee thank you for following the story for a long time. Lets get to other Corporate News out of europe, lafargeholcim has announced a new ceo. Theyve been with the company for over 20 years. And the surge in inflows on a strong market with julius baer rises 6 . Julius baer said its extensive hiring of private bankers in 2016 insured net inflows hit its targets. And shares surged. Theyre investing a possible share slot. Analysts at hsbc have raised their target and held it to 17. 20. Aegon has announced will sell its insurance to wilton re. The Dutch Company said it expected to book a loss on the transaction of about 270 million euros. But it added the move improve solvency by 6 . Weve got a lot to talk about, a lot of deal talk happening here in europe. Good morning. Thank you for being on the show so much as ever. Theres a lot of market debate to where we are in the business cycle, given the m a talk and the strength of the earnings. Some say margins will continue to expand from here. Some say well ride it out. Where do you stand . I think were definitely recovering in europe. For one persons increase in europe, its increased to over 2. 5 compared only 1 in europe. Clearly, the Political Risk has been off. Were not seeing that as a big factor, but growth is the real story. As we look back to 1990, only numbers of 1. 4 . Bo growth has to come back. Im just looking at bank of America Merrill lynch numbers, theyre saying allocations years on equity is the third highest on record. Do you think, mannish, that europe can deliver this time . I would say for me, im more equal with europe. I think one has questions about whats coming down the line. In france, we still have the partial meant tear election remaining. And elections in austria. And there are signs elections going down the road in italy. And then the risk. But at no point under rating the past. How do you feel about the u. S. . With much. Trump trade that was left in the market, now, were seemingly back to square one. Were back to the levels we were at november before trump was elected president. What do you do with the markets now . Do you still hope the inflation trade will come back . I like to think theyre the most important ones. In u. S. , i look at data. So, you have some starts in terms of inflation going back and forth. Are you saying it doesnt matter what comes out from trump . No, i think it doesnt matter. Lets look at 1974, the u. S. Was coming off gold standard. Oil embargo prices rising. Its not quite the same now. Im not saying that nothing will happen. But i think with everything, with the impeachment and watergate its just different that people are talking about. Do you think infrastructure, do you think cyclicals can still do well . Even if President Trump cant implement what he wants to . I think what theyre most excited about both in europe, with it and the defense. Look, nato is about to have a summit this week where theyre going to agree on their target. And how theyre going to spend in europe. I think theres a lot to learn. But theres some stock in financial, but if theres a rate hike in june if we can even get one. Theres no need to say inflation has gone away. Weve got the fed minutes that will come out on wednesday. Some say they dont really matter anymore because weve had all of these revelations about trump. Weve had a path of softer data. And then on friday, quite significantly, we have the Interest Rate hiking plans that may be too aggressive. Do you agree with that . Because it seems like President Trump cannot fully implement all of his policies, we dont need that many hikes . Well, you see its a fine line. I read in the press the cut in u. S. Spending. So, i think President Trump is going on as planned. It electrical a conversion. I think with the fed, you dont want to walfall behind. Look at it in a way theyll be heading. Perhaps to the dollar then if we do get a rate hike in june which seems to be almost the question that the market is almost 80 thats the price according to fed futures right now . I think june high, everyone expecting a hike for next month or month after. It will come down to Spending Plans that President Trump is going to lay out Going Forward. Thank you so much. Manish, the cio of crossbridge capital. You can find us streetsig us streetsignscnbc. Com. Still coming up on street signs a doubleedged sword. Well fill you on the speech that donald trump delivered to leaders. Thats coming up in two. Finding time to get things done isnt easy. But weve got the Digital Tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount President Trump has urged Muslim Leaders to do more to address terrorism and calls on Community Leaders to, quote, drive them out of this earth. In his key address during his visit to saudi arabia, trump criticized iran playing out the countrys role in sponsoring terror in the region. From lebanon to iraq to yemen, iran funds arms and trains terrorists, malicious and other extremist groups that spread destruction and chaos across the region. For decades, iran has fueled the fires of sectarian conflict and terror. Its a government that speaks openly of mass murder. Vowing the destruction of israel. Death to america and ruin for many leaders and nations in this very room. Hadley gamble joining us from jerusalem. This was a highly anticipated speech, hadley. Given all the missteps by the president. It doesnt seem like there are any major missteps but he sure did focus a lot on iran. What are the major takeaways here . Well, he certainly singled out iran, care rolin over the weekend. And european and Foreign Ministers that i was speaking to over the weekend seems to single that its going to take more than talk when it comes to taking on the Islamic State and basically fixing syria. Lets listen in. Were going to move to iraq and then libya and somalia, so, we have to look at that. And holistically as well in terms we cant do thread the Security Threat and we cant thread the cultural and ideological threat. To be a proxy in syria should come at such a high price if you dont do it. The tag should stop wagging the dog. Based on these negotiations hopefully when they meet at the World Economic forum next spring in the middle east, we will see a difference here. The whole categorization you that do shortterm humanitarian relief. And then at a certain moment reconstruction has to start is completely wrong. I think reconstruction starts with humanitarian aid at the present moment. And if we miss that, we miss a big jump of perspective of really getting reconstruction right. The daesh narrative is fuelling difficult right wing movements in europe, because the daesh narrative is showing a potential islam enemy. While on the other hand, daesh is losing the right for muslims in the world to show that, europe, for example, is hostile towards islam which is completely wrong. But this is the polarization which is so dangerous in our world. Just a couple of other takeaways from the World Economic forum over the weekend. One of these things that they all seem to be agreeing on is that russia has to be a part of any process Going Forward with regard to syria and Bashar Al Assad and the twostate solution whats going to happen next with the israelis and palestinians. People are speaking saying if anyone can get a deal done that would be donald trump just by sheer force of his personality. Well have to see it. Lets talk about reports of the stamina, there are reports over the weekend saying he was exhausted. Of course, its a grueling schedule. Wasnt he during the debate last year that Hillary Clinton didnt have the stamina it takes to be president. What are you hearing . Well, to be fair, carolin, two days in saudi arabia, and being all the pomp and ceremony surrounding that, i think anybody is going to be tired. At the end of the day, were talking about a place where were hearing report over the weekend that a lot of events were supposed to be covered by the press but the press wasnt informed about them in time. In terms of stamina and whether or not he has what it takes we have to remember were talking about hours being on your feet, hours of waiting for meetings to happen. Certainly, this isnt something that too many people can be critical. 3. Hadley, thank you for that. Hadley spoke to economic leaders around the world in jordan and asked them what they expect of President Trump Going Forward . My hopes are that this presidency will follow the bath i usually saw with my colleaguents. Very experienced highly recognized minister of defense who has a very clear approach knowing that we are going up against the coalition against daesh. Knowing that the extremism is our common enemy. President trump showed by his Immediate Reaction to what took place in syria, news of chemical weapons is totally unacceptable. And he reacted in a proportional way, saying that there are limits for what we can accept in the 21st century. On planet change, we strongly believe that the paris has to be implemented for us. On the investment on humanitarian and development and peacekeeping for us, its investment in our own security because it prevents clauses. And we worry that the administration could take a different approach when it comes to financing agencies and humanitarian work worldwide. Head to cnbc. Com for five key issues to watch for Donald Trumps trip to israel which, of course, is happening today. Were going to a quick break. Check out our blog that runs through the european trading day. Well be back with more street signs in two. Welcome back to street signs. Im scare row lycarolin roth. And these are your headlines. Clariant went higher after unveiling a 20 billion allstock merger. A new ceo told the investors that the stock opens and agrees on the announcement that jan jenisch will move to the helm from sika. Donald trump in the middle east. Talking about a 110 billion defense deals. Every country in the region has an absolute duty to ensure that terrorists find no sanctuary on their soil. Pressure on the president mounts at home as reports suggest trump told russian officials firing james comey would ease pressure from the investigation. Good morning, everyone. If youre just tuning in, lets show you what u. S. Markets are up to when it comes to futures. Yes, were still a few hours away from start of trading. S p 500 is seen opening a tad higher. And dow jones set to add 23 points nasdaq set to rise by roughly 5 points. This is after the dow closed over 100 points higher on friday. Stocks very much recovered towards the end of the week, after we saw the back and forth, the tumuhaumultuous week in washington. By and large, we have recovered from that. Lets have a look at what the european markets are doing this morning. Were higher. The 100 a slight bit higher, 0. 4 . This may have something we the currency. Ill get to that. Xetra dax up by 1. 4 . In italy, ftse, slightly underperforming to the tune of 1 . Lets get to the markets, what youll see the cable versus the dollar is back below the 1. 30 level. This is because of a survey telephone poll published on monday saying the lead to 9 Percentage Points with labor up 5 points and conservatives down 5 points. Were seeing a narrowing of the polls here for the conservatives. The big lead on the polls has been something thats driving the currency higher. Euro dollar, 1. 117. As President Trump continues his foreign trip congress and a special counsel are moving forward into investigation with possible collusion between russia and the Trump Campaign. Nbc has more. Reporter President Trump on his first overseas trip, as washington digs further to find out what he said to Russian Diplomats about firing fbi director james comey who was investigating possible collusion between the Trump Campaign and russia. Leaders of the House Oversight Committee Want to see notes of that oval office meeting. There have been so many lies, so many contradictions. And i think documents will help us to ferret out exactly whats the truth and whats a lie. Reporter reports say in that meeting, President Trump allegedly called comey a nutjob and that firing him took pressure off about russia. Comments even republicans cant defend. Im almost speechless because i dont know why someone would Say Something like that. Reporter secretary of state Rex Tillerson who was there remembers it differently. I think what the president was trying to convey to the russians is, look, im not going to be distracted by all of these issues that are here at home. Reporter while others in the oval office arent commenting. Those meetings, as you know, are supposed to be privileged. Theyre supposed to be confidential. Reporter comey may just be days away after breaking his silence after being fired by the president. The House Oversight committee has invited the former fbi director to testify wednesday. Comey has already agreed to testify in public before the Senate Intelligence committee. That will happen after the memorial day holiday. Jennifer johnson, nbc news, washington. And halle gamble spoke to european leaders at the forum in europe about russias role about european and global affairs. When you ask, is it realistic or reliable to imagine that russia would pay for the destruction of syria, i wish we could, but if we look at the state of economy today, its difficult. The russian economy is more than i guess the majority or almost the economy of eu member states, individually taken. So, russias investing a lot on defense and military, but when it comes to economic power, forget it. Russia has to understand that its an in our common interest that, together, we have to fight daesh, that is our first and most dangerous enemy. And that its in our common interest to sit down at the negotiation table, mainly russia and the United States are the main superpower players, who are necessary, because their influence on iran and saudi arabia, their influence on them on the other stakeholders in the region is huge. You can disagree with russia on some issues, for example in the ukraine. But i think the iranian deal showed us that we also can work with russia on some other issues. I think this notion of them suddenly having a between europe and russia on every issue is not going to happen. In other news, iranian president Hassan Rouhani defeated raisi. Rouhani received an an excess of 23 million votes. And turkish president erdogan has been elected. After being elected president in 2014, the only candidate in the goal after last months referendum for the need for neutrality between the countrys leader and his party. And the michel teamer has moved to dismiss the alleged audio file of bribe agreements. Saying that the recordings have been manipulated. Protests then calls for his resignation has been intensifying as the story became public on thursday with Financial Markets taking ahit. Joining me around the desk to talk about the fallout of this renewed bribery allegations. Are we looking for the second impeachment of a president in brazil in less than a year, what do you think . Well, the Bar Association isnt brazil seems to think of. With rousseff, they were the first ones to recommend impeachment. In fact, anybody can recommend impeachment. The problem here is that the institution of the presidency has now been so tainted in brazil, the question is who do you appoint instead. Is there a viable alternative . Because he doesnt even have a Vice President when he was brought into office. Well, i would love to say so, yes. But the whole car washing case and the jbs thing apparently indicates about 1,000, 900 politicians are. Who knows who is implicates. The big question is can congress get on its feet and push this ahead without the president s spirit. What mr. Temer is hoping to do is lead this country out of a yearlong recession. What well have to do, what he has on his plate is essentially a reforming of the labor market. Do you think theyll even get to that stage where he can do that . Well, he needed 308 mps out of 500. He was going to try to get to 320. Now, youre seeing the coalition break apart. Its very difficult to see a large number of mps going behind president temer with the whole issue behind him. I think the reform can be delayed quite a lot. Thats the thing thats hitting brazil at the moment. Whats interesting at the moment, yes, we have seen pressures on brazil. Im looking at bank of America Merrill lynch and american markets has actually strengthened last week, despite all of the brazilian turmoil. Even on thursday when all of this came to light, the inflows have strengthened. How do you explain that . Why is that . The thing is this Political Risk is not just yenrelated. Its also developmentmarket related. We see the issues in the european union, brexit, french presidency elections, everything. Whats happening, weve been talking about this for several years now that the risk, underlying risk is increasing as well. The spread is contracting between em and dm from the lower side as well. Thats why investors are pushing money into emerging markets. Its not only equities. We have Record Number of inflows into bond flows already this year higher than 2013. Theyre no longer going into brazil for the foreseeable future. We dont know how long this will last . Where else would they go . Latin america has been a darling of investors in the last several months especially brazil and argue tina. There was a huge overweight in brazil, especially in bond space and equities. I think well see a bit of shifting goes to places like maybe south africa or turkey but em, you cant eem as a whole pot of parties now. Its idiosyncrasies. Whats interesting south africa has seen inflows on the back of this brazil trade. That sort of was the leader, if you will, when it comes to the reemergence of the merging market trade. Do you think that investors will think twice about some more of these idiosyncratic movements from these countries . Its interesting, you hear that investors are complacent. Were not. Were looking at this on a daily basis. Its very difficult to resist the inflow side on that side. I think what em investors will be cherry picking if you like, maybe the cherries are not so beautiful, but they will be cherrypicking in the future. Clares wont be so beautiful or so sweet, i guess. So sweet. What about the biggest factor for the emerging market. As you see, its been the idiosyncratic stories. But we know its also been the fed and china tightening. China seems to be tightening a little more and the fed seems to be hiking. All of that doesnt seem to be boding well for the e judgment. It doesnt. Youre facing 8 yields in subsaharan africa. If the fed goes on a more aggressive rate hiking phase, well, then it will be a bit of a problem. The market is looking for 25 or 50 this year and we can deal with that. Do you buy the dip in brazil right now . I wouldnt. I would say cautious with brazil on the dips right now. I think people are selling on the pickups that were seeing. Simon, thank you for that. Emerging Market Strategist for yield general investment management. Saudi arabias oil minister will travel to iran to discuss an extension of the deal ahead of opec on thursday. Speaking over the weekend, the saudi minister said, quote, everyone i have spoken to supports a ninemonth extension. Opec have a number of options at this meeting. Members could choose to follow the lead of saushg adi arabia a russia by extending out the deal. Some believe producers could be looking for a sharper price reaction to reduce inventories faster. And third less likely scenario is that an opec member like iraq chooses to opt out of the deal altogether, jeopardizing the groups ability to reach the agreement. Speaking at the World Economic forum in jordan about where he expects the price of crude to go next. Take a listen. Youre going to see continued cohesion not just within opec, more importantly between opec and nonopec. Whats amazing, weve seen this in the past, the iron ore, even with political tensions around some of the key players, saudis, iran, russia soen, when it comes to opec and nonopec members, theyre able to come to a deal and theres been phenomenal compliance. The key issue is actually whats happening in the u. S. The kickstart of the Shale Oil Production there is faster than anybody thought. Youre seeing it with the rig count. Youre seeing it with the cost of production. They can drill wells a third of the cost and a third of the time now. And, so, the average cost of production is coming down. So, thats going to have an interplay. There are different views but i dont see drastic changes one way or the other for a while. And then the key question, not enough focus always is china. Whats really going on with their deals. And the indian growth of oil demand is even faster than chinas now. I think there needs to be a little more focus on the demand side as well to truly get a view of the overall picture. But eye sat production cap and the possible extension of the cap next week, is that impacting your president ped troul yum investment conditions . No it doesnt affect our investment decisions. In fact, even countries like iraq where were playing a big role, hopefully, a larger role Going Forward and we see huge potential despite all of the challenges. Theyre interested in increasing their capacity, despite their compliance. I think looking at it long term, the world is going to need more and more of the middle easts oil. And the danger is we havent invested enough. Not just in the middle east, but worldwide, in the last couple of years, and we could be facing, you know, a deficit in just a few years time which may lead to price shocks back up if were not careful. Lets have a quick look at oil prices on the back of all of this talk about possible extension. Brent crude up to 54. 09. And wti crude, 50. 84. The macron and the italian Prime Minister have promised to work on dies. Gentiloni said macrons election has been trust until europe and pushed for a common migration policy. The french president called for a common eurozone budget and to strain the european institutions. Good luck with that. Meanwhile, macron also announced he is going to meet with trade unions to discuss labor reforms. In an interview, the French Foreign minister said the government wants to act quickly on the labor market but reform will be after talks with the unions. In the uk the conservative leader of the labor power, the tories are leading by 43 of votes down 5 Percentage Points from last week, though. Meanwhile, laborer is pulling 358 higher. 1. 2974 right now. Theyre all of of half of 1 on the day. Davis warns britain will quit talking with the eu unless brussel s dropped its demands f 100 billion for the euro bloc. And spains tenyear Government Bond yield has risen in early trade after they reelected Pedro Sanchez as its leader. Sanchez who won the leadership contest with nearly last l half of the volts has pledged to fight the conservative people party market policies. The you newly elected leader resigned last october following a party revolt. The trump tour rolls on. President trump heads to israel and the palestinian territories. Nbcs hadley gamble will bring us the latest from jerusalem. Well be back in two. Welcome back to the show. President trump has urged Muslim Leaders to do more to address terrorism and called on Community Leaders to, quote, drive them out of this earth. And in his key address during his visit to saudi arabia, trump softened his Campaign Rhetoric referring to islam as one the worlds great faiths. He also touted new deals between u. S. And saudi arabia worth hundreds of billions of dollars. And hadley spoke with the ceo of the King Abdullah economic city and asked him what Donald Trumps visit to saudi arabia might mean between the relationship between the two countries. I think its information about the strength of the saudi u. S. Relationship that weve known all along. I think it gives the institutions and people of both countries a push to further collaborate. I think in the institution, well see a lot more collaboration happening between the u. S. Companies, for example in the private sector, universities in the u. S. And in saudi arabia. So, you will see institution to institution, people to people, relationship reafter firm and strain Going Forward. So, the timing of this visit cant be too much of a surprise given what weve seen in the last few days as president. What kind of message does it send to iran . I dont know how theyre feeling but from a saudi regional context, its very clear from the u. S. That its right with saudi arabia. And the islamic world and that, again, is reaffirmed. Talk about whats happening today in terms of the economics. How is the private sector doing. Two years of Lower Oil Prices putting pressure on the private sector. A lot of concern about where they should invest. Is the government doing enough to del people whats happening flex . Next . What you see is like twotiered. One is oil prices dropping, spending less on construction, et cetera. So, you see that hit. But theres other one which is reform on the restructuring of the economy as a whole. So, you have the government fixing its income statement, rebalancing its port jofolio an oil and cash and more investments. I think its the private secreta sector causing it to say when will things return to normal . I think we have to embrace the new normal that this is not going to happen. Uncertainty . Exactly. The new normal is basically that the old way of doing things, government spending, and Economic Growth is not in the future. The future of today, sectors have been highlighted by the vision. If youre focused on these sectors, then youll have significant growth. But the private sector has to resist its portfolio. Were talking housing. Logistics, transport. Religion, tourism, all of these sectors. And President Trump is due to land shortly at the next stop on his foreign trip that is israel. Thats where hadley gamble joins us from. She is live from jerusalem. Hadley, there are very High Expectations for President Trump to reinvigorate the stalled peace talks. Do you think it can deliver a break or do expectations come down . Reporter thats a very good question, carolin. Over the weekend at the World Economic forum i spoke with arab and european foreign defense ministers and the message was cautious optimism. They were hopeful if anybody can cree invigorate this israeli peace negotiation can could be donald trump just by sheer force of his personality. As you pensioned u. S. President donald trump just minutes away from arriving here in israel. Hes going to meet with president rivlin who is going to head shortly to the old see of jerusalem as you can see behind me to visit the western wall. And later today, hell be speaking with Prime Minister Benjamin Netanyahu. A lot of things on the table. Not the least of which is going to be the security of intelligence, carolin. How controversial is it that, that is, President Trump, that hes actually visiting the old city . Reporter oh, absolutely, so many conversations since the campaign trail about whether or not the u. S. Would be moving its embassy to jerusalem. Of course, over the weekend, i was speaking as i mentioned with arab leaders as well who said that that is not something that theyre focused on. They think it might be something that goes away quietly with a wreath. Its whether or not they can convince folks around the table not just to talk about the Israeli Palestinian issue but what is happening with syria and convincing russia to come to the table. Hadley, give me an idea of how much pressure Benjamin Netanyahu is under, given that trump and his administration hadnt been asked lets say unequivocally proisraels as many have hoped for. Is he under pressure from hardliners in israel . All right. Unfortunately, it seems like weve lost the line with hadley. Hadley, thank you so much for that hadley gamble joining us from jerusalem is there. Lets get back to our top story, Swiss Chemical Company clariant has announced a deal to merge with texasbased huntsman. The deal combines a company of 14 billion. Talks between the two firms have faltered before in a bid to create a merger of equals. Huntsman ceo will become chief executive of a new company. Ed headquarters will be in switzerland but the main Operational Center will be located in texas. As you see on the wall there, the huntsman listing in europe and clariant rallying to the tune of 1. 5 . And a failed probable start to the week after a drubbing last week. Oil off by roughly 1 for the stoxx 600, given all of the pressure from washington and trumps administrative agenda. The xetra dax is up by 1. 1 . Same for the ftse 100 it is just back above the 7,500 level. Keep in mind currency has weakened this morning given the way the polls of conservatives where the lead has narrowed somewhat versus labor. And the cac is up by 0. 2 . And when it comes to the markets, well, thats the story i just told you about, cable is back below 1. 30. 1. 2965. Were seeing the dollaryen is inching a tad higher. The dollar was down by 1. 7 against the japanese yen. And the euro dollar is still hanging on to the 1. 11 handle. And a quick look at futures before we wrap up the show, the s p 500 seen up by a small margin, 2. 5 points. Dow jones up. And the nasdaq could rise by 5. 5 points. Nice rebound after that selling pressure last week. Thats it for todays show. Im carolin roth. And Worldwide Exchange subpoena next. Well see you tomorrow. Byebye. Good morning, breaking news ford ousted mark fields as ceo. Straight ahead. Trump trip. The president arriving in israel today. The second stop on his first voyage abroad. A live report from jerusalem coming up. Plus, crudes climb. Oil prices rising on speculation of suspended opec. And its monday, may 22nd, 2017. Worldwide exchange begins right now. I think i found myself a chariot good morning, a warm become to Worldwide Exchange right here on cn