Transcripts For CNBC Street Signs 20171013 : comparemela.com

Transcripts For CNBC Street Signs 20171013

Good morning, everyone it is friday many people are probably thinking, thank goodness that its friday. After all the backandforth between barcelona and madrid it has impacted the spanish equities quite a bit but not the european ones. Were trading slightly to the uptick of 0. 3 we are trading close to fourmonth highs and we are on track for the fifth consecutive week of gains for these European Equity markets. Taking a look at the indices one by one, this is a picture of the ftse 100 under pressure. The cac 40 holding on to the flatline and the xatra dax, we are close to the level after hitting a record high in the morning trade. The ibex 35 is up. 2 . We are still waiting for the debt line that happens on monday when it comes to the sectors, this is the view this is the up individual stocks weve got some of the best performers here. On the downside you have expe experian i guess we dont have sectors . There we go, oil and gas and tell kons mo tellcons are ticking up. And many reports suggest that donald trump could decertify the trade deal today well see what comes out of the press conference or statement rather autos are the only sector lower to the tune of 0. 2 . Lets go to the Market Strategist and jpmorgan Asset Management we have seen how the inflows for european equities are slower, the spannish equities are lower this is probably not a surprise given the chaos happening in spain, but redemptions are the highest since the Second Quarter 2015 does this whole catalonia issue put this success in doubt . Im not too worried about it. If you look at the numbers, 90 of the people who turned out to vote wanted independence but actually only 43 people turned out to vote overall, less than 40 of catalonia who wants to leave before the referendum suggested 35 to 40 of the people wanted to leave the other key thing here is even if they wanted to leave, spain is very unlikely to allow them to leave so they where trying to clarify if independence has actually happened i think it has you think the fundamental drivers for this rally are still in place we have seen a hiccup over the course of the summer given the euro strength, by and large, corporate Profit Margins are still healthy and were still growing at a healthy clip when it comes to the economy. Corporate margins are improving but at a lower base. As sales come through, obviously, the variable fix rises. And that should lead to further margin expansion, meaning the earnings should grow more than sales. If you look at the euro, take a look at the euro relative to the dollar between 2002 and 2008 appreciation is far higher so i like to think of the euro as the headwind. That means earnings probably wont drive as much as further collapse what do we do with the u. S. Highs then we are seeing record highs, obviously this propped up some of the big tech stocks, for example. Financials have also done well, not necessarily in last nights session, though. But were expecting the titan schedule to continue were expecting the cats to perform at some point. Do we look to fluffy at this point when it comes to evaluations topping . I think the key thing in the u. S. Is if rates go up farther than expected, which is argued, that should be beneficial to financial stocks we like financials we think within tech you have to be selected. There are some stocks that alert somewhat overvalue, but tech has a whole doesnt look too expensive. So were being selective with tech we like financials pretty broadly across the base. And when we look at the u. S. Earnings spectrum, if you look at the u. S. Manufacturing index, the headline was distorted with the hurricane, but the new orders component, the new employment component, very strong that suggests to us that theres further to the upside. You say the economy is there in the cycle, and that means that recession cant be too far away is it the case for the u. S. Economy at this point in time . I think thats true the probability of there being a recession by tend of 2020 is now quite high but the profitability before that is quite low. The markets tend to look a little ahead in terms of the price and session, so we think that mediumterm rates are rising because the Interest Rates are going up faster than the market is expecting. We saw some evidence of that last week. If that happens, then in the next two to three years, the recessionists are rising in the shortterm, well still see the recession quite low. Thats round this out with the uk to be honest, i dont know whether i see the neutral as having a balanced view or view of the complete uncertainty because no one knows at this point what is going to happen with brexit. And theres still a lot of question marks about what happens with Monetary Policy where do you stand on this because you cant go with the daytoday headlines out of misha davis, can you we look across the bar and have quite a lot of conviction that the economy is doing well in u. S. And europe when we look at the uk, we see mixed signals. Its not all bad news, very low unemployment, signs of Business Investment picking up, on the other hand the signs of weakness in the London Housing market, consumer confidence, its a mixed mixedpick xhur and we are not sure what it holds i think more importantly within the u. K. , we dont want to take a bet on the midcap stocks that have a mideconomy focus so we are neutral in size as well. That makes sense. Mike bell, thank you, Market Strategist for jpmorgan Asset Management and slightly mixed messages from the top policymakers ahead of the Central Banks next meeting on october 26th. Mario draghi said the eurozone Interest Rates will remain at record lows well past the end date of the bondbuying program. This is in response to german calls for the acb to speed up the exit from easy policies. Prolonged quantitative easing is likely to result in asset bubbles. And Steve Liesman will be sitting down exclusively with mark carney from bank of england at 19 20 cet it is late on a friday, but it is definitely worth tuning in for that italys lower house has approved electoral reform. The new system a mix of the first house constituencies and representation that now requires the senates approval. Activists from the populist fivestar movement staged a protest outside the Italian Parliament claiming this law will penalize them in the upcoming general election. Now we are going for a quick break. Coming up on the show, acting legend jane fonda talks to tanya briar about what it is like to be an older icon on the silver screen. You wake up every day and you go to the bathroom and you fart and you do all the things that you always did and nobody quite feels like an icon that said, i would be lying if i said it doesnt feel good to be someone who gives older women the sense of hope. I mean, i get because im active on social media, i get a lot of input from people from women of all ages and on the street and so does my pal, lily women say to us, you give us hope when you are young and you workout, its about how you look when you are older, its about, if im backing up, can i look over my shoulder can i turn my head that far . Or can i pick up my grandkids . 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The number one ch of online sellers. Go to shipstation. Com tv and get two months free. Throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Welcome back to street signs. Spaniards marked their national day with a sense of unity. They took to the streets in solidarity despite the future of catalonia. They have until thursday next week to clarify the independence pledge and clarify talks with the Spanish Government jeff caught up with the economy minister at the imf meeting in washington to ask if his government was willing to trigger article 1 that would allow madrid to run the catalonia region if they are not within the boundaries of the spanish restitution, well have to trigger article 155. We have the support from the party. And i think the restitution of the parties will be unit ed you dont see this as an issue that could trigger a political crisis in madrid and lead to fresh elections . No, i dont think so. Now the constitutional parties of spain are united behind the policies enacted by the government and i do not see any sort of uncertainty or question mark coming from it so far. If 155 is triggered, are you in madrid willing to guarantee that 6 billion euros of debt issued by the catalon government well, they are behind any Regional Government of spain we have not allowed any Regional Government to default. And it will continue that way, i can assure you. But are you willing to guarantee in. Without knowing for sure, the catalon debt is the debt of the region of spain. And they are going to be backing that that has been the case over the last five years. Here now onset with me now, i dont see a lot of clarity coming from this interview and whatever has been said in barcelona and madrid this week it seems about semiman tigency. Theres an agreement between his body and the socialists, but thats not true. The socialists say they want dialogue so they are not entirely behind the government so that is disingenuous about him. There are parties inside catalan because all of them have parties. They also have been pushing on the social site for dialogue some of the people i spoke to in the last couple of weeks have said that. And a member of the fourth major spanish party, they have been pushing since last year for a National Referendum on constitutional reform. The argument from madrid has always been, this is outside the constitution we cant have dialogue without them returning to within top constitutional framework many say democracy is not about the constitutional framework but the word of the people and i had to chance to sit down with one of the main figure heads of the famous party in t catalonia and i ask hid about this dialogue. Heres what he said. Translator dialogue starts on being able to talk about anything and i mean anything for us, we believe whether it happens now or later theres only one solution. And this doesnt go by the majorities of the parliament, it goes by the fact in catalonia, 80 of people want referendum. This is the tension between bars ocelona and madrid. Theres a majority of catalonians would like a determination on whether they vote yes or no, and madrid cannot allow that with the constitution the constitutional reform is going to be challenged because in order to change the constitution to allow that vote in catalonia, you need a majority of the spaniards to agree to it. And the majority dont want catalonians to have the vote so they are representing constituencies that have made the differences. Remind me again, what happens exactly next week. Because im a bit confused about the debt market. You have one on monday and thursday on monday, 10 00 a. M. , madrid time, he has to get a response from puigdemont as to whether the speech was a real declaration of independence or whether it was a smudge because of what followed on. If he gets that clarification and puigdemont says it was further independence, he has until thursday to rectify the situation. Otherwise he will invoke article 155. He has not said he definitely will do that, but he holds that in his back pocket. To what extent do you think this will be a perpetuating story for years to come because we had the referendum two years ago and now have another one this will likely yield another proindependence government, which will probably call for a referendum once again, whenever that would happen. What is the end game here . Well, everyone you speak to in catalonia dont know, theres no eacertainty because it depens on the folks at the top. And it depends on the opinion polls, coalitions, whether that is in madrid or barcelona. Theres a French Coalition including conservatives and the far leftwing fringe individuals. And to hold onto that majority within the catalonian assembly, he has to keep everyone happy. Youre seeing photos of violence in the streets of barcelona. Clearly the tensions, that was just yesterday on Spanish National day, a number of groups getting angry with each other about this division in society it is getting increasingly divided. You are hearing people calling each other names and that is something both sides of leadership want to avoid, and yet the cabinets are launching the attacks against this thank you so much for your work earlier this week and this morning. I really appreciate it now a completely different story, new allegations of Sexual Harassment have emerged against Harvey Weinstein the new yorker magazine announced 13 women have claimed that weinstein sexually harassed or assaulted them. Tanya caught up with jane fonda and spoke about the scandal that has ripped through the entertainment establishment. And tanya is joining me around the desk what did she have to say well, look, caroline, we were there to talk about her work, her life and new fill. Shes come out with, but jane fonda is an activist herself and this is something she suffered personally when she was a young actress in hollywood so i asked about what she felt about the allegations against Harvey Weinstein and i asked her if she was surprised. And this is what she had to say. No, im not surprised im glad it is coming out, thank god it is coming out thank god women are talking. Because back in the days, we were too scared to talk because we thought, no one would ever hire us again. And the more women are brave enough, and make no mistake, women who come forward and talk about being sexually harassed, abused or raped, its very, very hard you dont get anything out of it except fingers being pointed at you. And too often people dont believe you. So it is very brave of these women to do it and it gives courage to other women. What should happen to Harvey Weinstein and people like him . Well, i think they should all go to jail lets put bill cosby in there. But the question is not just hollywood, you know, make no mistake, this is epidemic. This goes on all over the world on all kinds of levels and, you know, very, very powerful men and not very powerful men but i think that they have to be put in jail. And i think that the women who come forward have to be applauded, respected, listened to and gotten help for because it really has psychological consequences. Had you ever worked with harvey yourself . No. No and the few times that i have run into harvey, he was he was always, first of all, by the time i got to meet him, i was old. If youll notice this kind of thing happens to young women who are vulnerable and really cant, well, its hard for them to den fend themselves. Its hard for them to have agency over the situation. And i was old when i met him but the friends that i know who had this happen, by him and by others, are usually young and vulnerable as you can see, shes very outspoken there. I also asked about what she felt about President Trump and the Current Administration and this is what she had to say. I never in my wildest dreams imagined he would actually become president when he did, the first thing that happened, and i think it happened to just about everybody across the board, i felt something in my body that i had never felt before. It was, first of all, i felt like i was living in a dream this cant be real and the same time, i felt like i was hit by a truck it was a feeling, im almost 80, and in all those years, i have never felt this feeling. This is unlike anything that has ever happened before i mean, inept in that, people have been elected to office in the United States before and we could say to each other, well, this is really bad, but, you know, we can work hard during these four years and well come out the other side and well change things. Thats not the way it is anymore because of climate the Climate Crisis that were facing means theres no window, we have no wiggle room to make mistakes he is doing things that if they go forward, and please god, for the entire world, it just cannot happen if they go forward, what were facing is going to be a crisis i mean, it just sounds, you know, it sounds like rhetoric, but what with you have seen happen in the United States, the floods, the fire, the earthquakes, the hurricanes, the disasters, this is just the tip of the iceberg what advice would you give to activists now that north korea is in a war of words with the u. S. Now well, its politicians. Its trump its people who understand that diplomacy, negotiations, diplomacy. It has worked up until now you dont taunt and go nuhnuh to the president of north korea. You work diplomacy, and trump is the absolute worst, worst person we could have in office right now. Its just too volatile and dangerous. And im just hoping that the investigation will get him, frankly. They have so much material and i just hope, i hope he doesnt last fo

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