about this recount >> cnbc learns the current u.s. tax plan features a 21% corporate rate as president trump prepares to host senate and house tax negotiators at the white house. fashion forward. net profit jumps 6% for inditech as sales get a boost from 99 new store openings. dixons carphones sales surge to the top of the stoxx 600 after there's a shakeup to the mobile phone division following a slump in first half profit good morning it's wednesday it's a bic day we have an action packed show for you. first one of our main stories, it's fomc today. it will be janet yellen's last press conference for her tenure. let's look at how european markets are looking one hour into the trading session overnight asian indices drifted slightly lower the nikkei down 0.5% a stronger session for hang seng the picture in europe is dim if you look at stoxx 600, the overall index is trading down 0.1% or so let's look at individual european markets as you can see, it's not a pretty day at all. ftse 100, just below that flat line it's a big day for theresa may there's the vote about the european withdrawal bill later on of course we get the unemployment data in about a half hour's time across the board, every index is down ftse mib down 0.2% italy announced the date for the next election that will happen march 4th next year. let's look at sectors and see how the picture is doing retail up 0.65%. travel and leisure up 0.5% laggards, utilities down 0.5%, and food and beverages also struggling a bit let's go on to one of our main stories. doug jones is set to become the first democrat to win a u.s. senate seat in alabama since 1992 in a tight race against roy moore, nbc new projects a narrow win for jones. declaring victory, he said the election was about dignity and respect. >> alabama has been in cross roads. we have been at cross roads in the past unfortunately we have usually taken the wrong fork tonight, ladies and gentlemen, you took the right road. >> moore has refused to concede the race telling supporters to hold tight and remember "that god is always in control." >> i really want to thank you for coming tonight and realize when the vote is this close, it is not over. we still have to go by the rules about this recount provision, and the secretary of state has explained it to us, we're expecting the press will go up there and talk to them to find out what the situation is. >> while moore has not concede the vote, president trump has tweeted his congratulations to doug jones he said it was hard-fought race but a win is a win >> the founder of drpm joins us. pippa, good morning. let's talk a bit about alabama and what this means for the composition of the senate. it takes the majority of the republicans in the senate to only one person. do you think this puts the tax reform plans in jeopardy >> i suspect not many democrats are lining up behind the tax cuts as well, because they're going into their mid term elections, they can see that actually the public is interested in having this happen originally they were all for a moreamental tax reform, but i think it will go through and not change nithings what will matter is the pressure on the president and this idea of impeachment impeachment, though there's nothing he's done thus far has simpea become impeachable, but the talk will increase. >> let's talk about the sequencing we have the midterm elections coming up. you would need the split to change in the senate for the impeachment process to begin >> i'm just saying you will not have a republican senate bring charges against a sitting president of their own party, even if they don't view him as one of their own if we lose this one seat position, yes, that will be news again. it will come back as a story >> of course so i want to talk a bit more about the tax reform bill. this government has struggled to pass anything on the legislative side if they pass this, what will be trump's next focus >> i think they are preparing to announce significant infrastructure story and that will partly be federal funds, partly be getting international investors to come in i suspect there will be a deal with xi jinping to bring the belt and road initiative globally into the u.s. so i suspect infrastructure is a high priority after this >> of course, there was a story run in the"wall street journal about a 2$200 billion plan. you wonder where they will get the funding for all of this spending already looking at 1 to 1.5 trillion of deficit in the next ten years, with the infrastructure plan on top that does not bode well for the economics over the medium term >> you have to remember everybody has been worried about the debt problem since forever it just gets bigger, the view in congress is that sooner or later we'll grow out of it the american economy is the best performing industrialized economy. it is doing very well. it's very competitive. so the confidence level that somehow the u.s. can get on the right track and grow their way out is higher than it's been in a while. so that implies a little let's attention to the spending side >> do you think if a tax reform win for the trump administration would embolden them somehow to proceed a little bit more vociferously when it comes to the nafta renegotiations ultimately do you see them are drawing from nafta completely? >> at the end of the day, the constitution on this is incredibly clear it's not in the president's authority. it's all trade -- all trade negotiations, trade deals are in congress so he can say i want to tear this thing up. it's embedded in u.s. law. so he doesn't really have the power in his hands it makes a great news story, but i don't think it's a practical issue for markets. >> coming back to talking about the u.s. economy, you're saying just now -- you said that u.s. industrial capacity is very strong we're seeing it. the growth numbers are really strong that is a reason why the fed are hiking and will probably hike later this afternoon that's fully priced in then the big issue that we talk about a lot in markets is the absence of inflation we don't see it we're been talking about reflationary trades for a couple years now. you're not seeing it even though the unemployment rate is around 4% what's your view is inflation going to materialize next year? >> the question is inflation in what form. the actual inflation rate that households face is much higher than the official data point that the federal reserve puts out. why is there a gap between the two? that's a very interesting question part of it is the way the fed calculates inflation but i think the bigger issue is the bond market no longer is capable of reflecting inflation expectations, because everybody has to buy the bonds for macro prudential reasons they're not buying bonds because of the inflation view, they're buying them because they're being told they're liquid cash assets i think if you're really running a business, your actual costs are rising much higher than the official data is telling you >> we'll get back to that conversation for now, chris pollone is in montgomery, alabama with more on the alabama story. good morning to you. it's a very big day in alabama this is the first democratic win over two decades or so the interesting thing it appears that mr. jones managed to capture some votes from a disenchanted republican voter base does this spell issues for the republican party going forward >> yeah. he certainly did he needed a very broad coalition to win here in alabama this is a heavily republican state. half the state identifies as evangelical christian. so in order to eke out a 20,000 vote win, which is what it's looking like right now, he need needed every vote he could get in terms of minorities, african-americans, young voters, and he needed moderate ors d disaffected republicans who didn't want to vote for roy moore. he certainly had to do that. there were a lot of them even richard shelby said he did not vote for roy moore a lot of analysts say that gave cover to republicans who just couldn't vote for roy moore in the race >> just the one thing about roy moore not conceding. will this be an issue? at some point he will have to concede the race, no >> right it doesn't look like it. that's putting it lightly. at this point doug jones has a 20,000 vote lead it's approximately 1.5%, and in order to cause an automatic recount here in alabama, it would have to be under a half of a percent. so, you're looking to change the vote totals by 1%. from what the secretary of state here said, it does not appear there are enough military ballots from overseas or provisional ballots -- sometimes people show up at the polling place and they're not on the list, they can cast a provisional ballot and that's judged later whether it's accepted in or not secretary of state john merrill said it doesn't appear there's enough to trig their automatic recount. beyond that, i'm not sure what recourse roy moore has everybody from both national republicans, some state republicans, and democrats are acting like doug jones is the winner yes, it appears roy moore will have to concede. >> thank you very much for more on the alabama vote, head to cnbc.com to find out why some people are blaming steve bannon for the republican's loss. italy plans to hold a general election on the 4th of march next year. according to several media reports, president sergio materella will dissolve the party later this month and an election will kick off in january. feel free to e-mail the show, streetsignseurope@cnbc coming up on the show, we get the outlook for the retail industry as dixons carphone reports latest results that and more after the break. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. wifiso if you can't live without it...t it. why aren't you using this guy? it makes your wifi awesomely fast. no... still nope. now we're talking! it gets you wifi here, here, and here. it even lets you take a time out. no! no! yes! yes, indeed. amazing speed, coverage and control. all with an xfi gateway. find your awesome, and change the way you wifi. welcome back to the show let's talk about brexit. the european parliament is currently in session discussing brexit this after britain's brexit secretary, david davis, was accused of damaging trust between the uk and eu. davis told british media that last week's brexit deal was only a statement of intent rather than legally binding barnier called on the uk to respect its commitments and warned against backtracking. he also poured cold water over davis' claims that a trade deal could be signed immediately after brexit uk prime minister theresa may is set for a collision course with brexit rebels in her own party. several conservative branches are expected to support an amendment to the government's eu withdrawal bill which calls for a parliamentary vote on any final brexit deal. with a slim majority, may faces the prospect of defeat on the legislation later today. now, some more stock news, dixons carphone shares are trading higher on plans to revamp its mobile phone division the british retailer saw profit falling in the first half of the year, hit by weak demand dixons says the drive to increase sales hit profitability and that it's now planning to reposition its mobile business to deliver a less capital intensive operation. tui is trading higher after posting a 12% rise in underlying profit for 2017. this as the european tour operator booked a one-off cost of 15 million euros from the insolvency of air berlin tui said winter trading was in line with expectations noting a pick up for bookings with turkey we'll speak with the ceo at 1:1 cet. stocks have bailed me out. duquesne capital management founder stanley druckenmiller said his equity picks have helped make up for equity mistrades. >> i would have to say it's the worst year i've had relative to the set of opportunities out there that i can ever recall for me 1997 was close >> but that was an asian financial crisis >> that was pretty good opportunity. i have done very well in stocks. i've really, really mistraded macro. it's going to be -- if it was up to macro, i'd have my first down year but stocks have bailed me out. so barring a miracle, that's not going to happen. >> but you're not up 30% >> i'm not up anywhere near 30%. i'm not up double digits you know, i'm having, again, relative the opportunity a terrible year. barring a miracle, it's going to be my first down year in currencies ever. >> it's been a tricky year druckenmiller also gave his take on tencent and revealed caution about the retail sector. >> i really like tencent and i really like their position you know, they're in payments. they've got their own version of netflix. they've got their own version of cloud. wechat is probably the best platform on the entire planet for all of it. if you look at amazon, aws is basically funding all the investments they're making in the other areas. shares in inditex surged after a 6% year on year rise in net profits. third quarter results showing a net profit of 3.2 billion euros with sales rising 10% to 18 billion euros for the first nine months the owner, zara, also saw gross margins fall slightly to 57.4% ricardo perez joins us on the line in madrid good morning to you. >> hello good morning >> this morning as you heard, we're looking at strong inditex earnings they opened 99 stores worldwide. that bucks the trend against bricks and mortar shops you hear closing down and moving towards online and embracing digitalization where is inditex's strength coming from? how is it they are still doing so well and opening stores >> the flagship for inditex is now adapting the strategy to what consumers are requesting. now we're seeing consumers are asking on one side they want to have a good onlines experience, but at the same time they want to have nice jobs in city centers. they want to return to totals that they had. they are emerging strategies on one side they're doing the online experience, at the same time they're improving and now putting all the new shops in city centers so this way they can have both consumer the t the online consumers and face-to-face consumers what do you think bricks and mortar shops need to do to stay competitive in this age of digitalization i'm not talking about huge conglomerates like inditex, but the little shops what they're trying to do, they're working on their proposal they want to have consumers happy with this fast fashion that they are serving to direct consumers. bringing them all of the -- everything that they need to have in the shops. they are improving the shopping experience online and in the physical stores. >> how do you see the wedge between the outlook for the luxury sector versus the normal retail consumer sector are you seeing there's more momentum in the luxury sector given the growth we're seeing in emerging markets >> yeah. the luxury market is there they're fighting again this plan, but they are also -- they are trying to say okay they're maintaining this good service, maintaining good quality they know the luxury brands are there fighting for a piece of the pie, but they're putting the effort on was they stand for, and the main strength. >> ricardo, thank you very much for joining us that was ricardo peres, senior client directos meet this afternoon. pippa, the founder of drpm is still with us. we ended our last conversation talking about pricing in the bond market. in your view the bond market is not accurately reflecting the core amount of inflation building up in the economy >> yes all of the investors, the banks, pension funds are obliged to own the short end for macro prudential reasons all of them are trying to match their liabilities as well. it simply is not the way it used to work, where it would properly reflect inflation expectations but what's really important is big institutional investors have been nervous about buying the stock market, because it's at an all-time record high they were hoping for a 10% fall. that never comes so they're buying on 2% dips i think now with a little bit of inflation, we do see that in the bond market, a little bit is enough to push them out of cash and into equities, private equity, real economy activities that will further push the performance numbers of the economy up the fed will raise rates, not enough to compensate for this. remember, both jay powell and janet yellen take the view if inflation went up to 3, 3.5, they're completely cool with that >> in essence you're saying the fed will be behind the curve and could get out of control but i want -- >> not out of control, but deliberately behind the curve to permit that inflation rate, the official rate, to go up higher than we've seen it in many, many years. >> i want to talk about inflation and twr will come from i know you're big on technology and artificial intelligence. when we talk about inflation or the lack of it, one thing that comes up quite often is the fact that technology has been a deflationary force same thing for globalization and the fact there's cheap labor fly. what do you make of the argument that structurally inflation levels globally will be lower? >> i have a robotics company we make commercial drones. i buy that argument that technology is suppressing prices what i don't buy is that it absolutely prevents any inflation. because technology prices are not falling as fast as they used to the chinese are no longer the cheapest manufacturer of technology actually mexico is now the cheapest manufacturer. their wages are 20%, 40% cheape than china so, yes, technology helps. what it means is that inflation can rise, but not that much. the fact is if you go from 1% inflation to 3% inflation, which is roughly what we're looking at, that is a radical change in the valuation of the stock market and radical change in asset allocation for pension funds. >> can i ask you quickly, when you think about next year, what do you think are the major themes driving markets >> i think next year is set to be a good year, just as i thought 2017 would be a good year, particularly in equities the big themes we'll see are we still have $18 trillion that is looking for a place to go. a little more inflation puts it into equities and real economy china's belt and road initiative is absolutely under way. that's a trillion dollars of connectedness in new, physical infrastructure i would say defense spending is the new quantitative easing. we'll see a huge amount of new capital from that area bullish. >> like druckenmiller, equities is where you want to be. >> i agree >> thank you very much head online for the full results of cnbc's fed survey you can check those all online of course coming up on the show, ahead of miffa ii's implementation, i will speak to one of the people putting the rules in place we'll be back in just a moment in a small town usually means hospitals aren't very close by. when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. there's nothing worse than when we're responding to the hospital, and the hospital doesn't have the right specialist. evaluating patients remotely, by an expert, is where i think we have a potential to make a difference. robots can do a lot in medicine these days, but they can't think. they're still machines. for nuanced decision making, we still need humans. we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable breakthrough innovations to take place. as we get faster and faster wireless connections, it'll be possible to bring those capabilities to more remote sites, and be able to operate on a patient in a way that was just not possible before. when you think about underserved areas, you tend to think of remote locations. but the reality is, an underserved area is anywhere where the person that you need, who has the expertise for the problem that you have, is nowhere near you. low latency is crucial for things like surgery, because the response time has to be immediate, it has to be real. i could put on vr goggles like these, and when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? (dr. vasquez) it's going to be life-changing, and life-saving. ♪ looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. welcome back to "street signs. i'm joumanna bercetche these are your headlines alabama gets its first non-republican senator in two decades. projections give doug jones the race republican roy moore refuses to concede. >> we've been at crossroads in the past unfortunately we have usually taken the wrong fork tonight, ladies and gentlemen, you have taken the right road. >> when the vote is this close, it's not over. we still got to go by the rules about this recount >> cnbc learns the current u.s. tax plan features a 21% corporate rate as president trump prepares to host senate and house tax negotiators at the white house. fashion forward. inditex sees profits jump 6% a sales get a boost from 99 new store openings. dixons carphones sales surge to the top of the stoxx 600 after there's a shakeup to the mobile phone division following a slump in first half profit good morning let's look at uk employment data that has just come out what we can see is that the employment dropped in the last three months employment dropped 56,000. vacancies have also jumped the last three months or so. average weekly earnings are up 2.p% year on year. you can see the pound is jumping on the back of that. this is the second day in a row that we get stronger inflation numbers. yesterday we had the cpi and rpi coming in stronger this morning we are getting average weekly earnings a tad stronger let's switch to u.s. futures i sound like a broken record, but dow and s&p also broke and rose to new highs in yesterday's session. the longest win streaks in a month. the win streak was lagging a bit yesterday. this morning, s&p 500 is pointed to open a tad lower, down 3 points dow jones is seen opening up 37 points higher. nasdaq up 9 points let's switch to european markets, see what the picture is there. still grim ftse 100, around that flat line. we said all eyes on theresa may this afternoon you can see european equities all struggling a bit this morning. peripheries also lagging behind the counterparts let's look at foreign exchange the major focus for the markets has been the u.s. dollar that traded a touch weaker into yesterday's session. again, the u.s. dollar is trading close to three-week highs heading into the all-important fomc meeting and expected hike late their afternoon. euro/dollar trading slightly stronger 117.50 dollar/yen, still hanging in around that 113 handle really struggling to move higher there. we had some weakness in nikkei overnight. and cable is still hanging in at about that 133.50 level. now, the 3rd of january will see a regulatory change take place in the form of mifa ii it's an attempt at regulation refor reforms. the new rule book contain the up to 1.4 million paragraphs of rules. its impact will be seen on many areas. it will also force payments to be split for analyst research and trading commissions. the vice chairman from the committee on economic and monetary affairs joins us on the line markus, good morning >> good morning. >> are you confident that all market participants, everyone in the market is equipped to deal with the new set of regulations that are coming into play? >> i am confident. if you look at the time frame, we started the whole legislation in 2011. we agreed in 2014, and everything comes into play for 2018 there was a long preparation period for anyone to bring all the systems, workable and in place. and i think that will function so the survey conducted by a cloud service provider just a few months ago, found that over 1 out of 3 in financial services companies are still unsure if they are mifid ii compliant. surely that's a concern for you. >> it's not a concern for me the preparation goes to the last days but if you look deeply into mifid, it addresses a lot of problems where different market participants have to fulfill different rulings. and therefore i don't see the problems the regulated markets, stock exchanges are the most important ones because they have to deliver technical services the authorities had a lot of discussions. i had yesterday a large discussion with the supervisors. they're prepared technically and politically. therefore i'm quite optimistic but if in some banks in rural areas not everything will work 100%, that is not disturbing the whole picture. i think the normal things have to be adjusted in the weeks to come therefore i'm optimistic that everything will start properly >> sir, i want to ask you about this as well some of the criticism leveled at mifid ii is that it creates a more -- a higher barrier for access to information. essentially leading to an information system becoming more expensive as market participants have to pay for it, and that krads high barriers for entry for smaller banks out there. some say they won't pay for research in the future isn't the fact that it's leading to some inefficiencies when it comes to information collection a bit of an issue for you? >> sorry that i don't agree on this analysis which has been done, especially in the united kingdom, where clients had to pay for research without having any disclosure we are not banning anything. we only want to disclose everything so that investors know the real costs. as the united kingdom has started a ban of remuneration years ago, this research area became the new kind of remuneration, and to make it more transparent is in the interest of the investors. that will reduce prices for financial products therefore i'm quite optimistic that the whole environment will change, and to be honest it's a uk issue, not a european issue >> one last question about the so-called dark pools in the u.s. there are about 80 of them that were being looked at in terms of european regulation equivalents. so far only 33 have been deemed equivalent what about the rest of them? what about the 50 remaining, how do you plan to deal with that? >> we've been concerned about the agreement the european commission negotiated with the united states. a lot of possibilities would have occurred if we would grant 100% equitable to all of these trading places so i was happy that counsel put the same question, and the compromise that was found that only u.s. listed equities fall in this, and that will avoid tha lot of trading leaving the european union that would jeopardize the whole results we have achieved in the mifid legislation. >> sir, thank you very much for your time. rex tillerson says the u.s. is ready to talk to north korea. the secretary of state offered to begin talks with the rogue state without the precondition that pyongyang must give up its nuclear program. the change in approach comes after north korean leader kim jong-un vowed to develop more nuclear weapons. tillerson said simply let's just meet >> we are willing to talk any time they're willing to talk they have to come to the table, and they have to come to the table with a view that they will take a different choice. let's just meet. talk about the weather, talk about whether it's going to be a square table or a roundtable if that's what you're excited about. can we at least sit down and see each other face-to-face? then we can begin to lay out a map, a roadmap of what we might be willing to work towards >> that could be a disappointing meeting if they only talked about the weather. the united states described vladimir putin's victory in syria as premature this after the russian president announced a major withdrawal of troops from the country. putin said the work of russian forces against islamic state militants is largely done. a russian court reportedly frozen 1$1.7 billion of assets o systema. the omove was called groundless accusing rosneft of destroying the company's shareholder value. we discussed a lot of things on the show today feel free to e-mail us streetsignseurope@cnbc.com you can follow us on twitter, streetsignseurope@cnbc or tweet me @cnbcjou. stanley druckenmiller says bitcoin will "probably go down with the rest of the stuff." more when we come back some air fresheners are so overwhelming, they can... send you and your family running. introducing febreze one for fabric and air. no aerosols. no dyes. no heavy perfumes. it cleans away odors for a pure light freshness... so you can spray and stay. febreze one, breathe happy. welcome back to the show good news for the viewers in sheffield. the uk city of sheffield has lifted the suspension of the taxi app uber's operating license. that's good news uber provided satisfactory replies to the questions asked by sheffield city council about the management of uber >> we're in the midst of a busy week of central bank news. the fed is expected to raise rates when it meets today. the ecb and bank of england will release their latest monetary policy decisions tomorrow. our next guest predict the the goldilocks years of positive growth and coupled with extremely low interest rates could be coming to an end. david rally from blue bay asset management joins us. i want to ask about your goldilocks statement why is it coming to an end growth has been phenomenal all of the outlooks for next year are positive on growth. interest rates are still very low by historical standards. why is this going to come to an end in 2018? >> all good things come to an end. >> like bitcoin. >> has not come to an ent yesterdaend yet. goldilocks 2017 was a fantastic environment for all assets not only was growth strong but it surprised on the upside not only was inflation low, but it surprised on the down side. that meant it kept rates low, allowed central banks to tiptoe out of the qe era, and market volatility was low i still think we'll have strong growth next year, that's baked in we're more likely to get some upside surprises on inflation. the market is underpricing the fed. we'll get timing from the central banks in the latter half of next year going into 2019 we'll see more volatility and somewhat less favorable for risk assets i think you can have positive returns and a lot of assets during the course of next year it will be a much bumpier ride it's been too good to last into 2017 >> before we get to what that means for fixed income, let's talk about the fed and today's meeting. it's not really about the hike that's more than 95% priced in, it's about the dots. what signal the fed will give about the pace of hikes for next year is there any chance the median dot may move to four hikes >> i think there's a good chance that the median dot for next year will move to four hikes they are going to be upgrading, as you said, growth forecasts for 2018 and beyond. unemployment is going to be cut to below 4%. that comes against the back drop where we have to factor in a big fiscal stimulus coming from the tax cuts puts that together, and janet yellen has quite a tough task in her last press conference. she needs to explain the rational and what that means in forward guidance as far as a faster pace of rate hikes going forward. if that's not the case, in terms of the dots, kind of explain why if growth is going higher, unemployment is going lower. why the fed is staying pat in terms of the rate hikes it has for 2018 and 2019. >> let's talk about what that means for bond markets and being a credit fixed income investor yourself, let's ask initially about how tax reform will impact certain sectors and investment grade space. are there some spekters set to benefit more than others from the announcements introduced in the tax reform bill? >> i think there will be some meaningful sectors and individual credits there's still uncertainty around precisely what the form of the tax cuts will be you have the extent to which state and local and interest deductibility, how that's measured relative to earnings. broadly speaking, for the higher leveraged lower rated corporate credit within u.s. high yields, sort of triple c, single bs, it's going to be possibly negative, at best neutral. for double bs moving into investment grade space, it will be a net positive. >> so not that good for high yield. we've begun to see an under-performance in the high yield sector in the u.s. people were focused on that. how does that pair up versus your views on europe we have ecb tomorrow not a major one, but we get updated forecasts as well. they're expected to update growth and inflation forecasts valuations are extremely tight in european corporate credit do you still want to own european bonds here? >> we still like the sovereign credit, so portugal, cyprus, greece, we think there's room there. it's hard to see much scope for meaningful spread compression in european credit. it's also hard to see why that moves out wider. the european mick daeconomic da been fantastic the ecb is more or less parked into the middle of next year and is still buying bonds. the search for yield in europe is still very, very powerful so it's going to be a coupon clipping, avoid the land mines, avoid the ones that blow up on you. because with evaluations at these levels there is not a lot of upside, but there's a lot of down side if you get it wrong. >> david, thank you very much for your views that was the head of credit strategy at blue bay management. we will talk about the federal reserve's rate decision and bitcoin with jeffrey gundlach at 18:30 cet later today. our u.s. colleagues will catch up with martin sorrell as the british advertiser deals with a slowdown in client spending and increased competition. that's at 15:00 cet. shares are out of the gate in abu dhabi's biggest ipo in a decade the national oil company listing a 10% stake in its fuel distribution unit on the abu dhabi securities exchange. hadley spoke about the company's debut. >> we feel great about the whole proce process, the whole day it's ban long time coeen a longg international investors bringing world class investors into abu dhabi, fantastic local demand, it's great for us, this is a long-term play we have a great plan there place. going forward we're really excited. >> are we talking about expansion plans as well? where will you go next >> firstly, within the uae, we'll move into dubai. we have a transformation program in place around our convenience stores, to enhance the customer offer. this is about customers. we will grow with them we will look at internationally, saudi, as i said dubai we have a great lubricants business and we feel great international opportunities for that >> tell me about the broader picture and ipos in the uae. what do you think is happening next this is the largest ipo in abu dhabi in the last ten years. my experience has been international investors have been hugely excited about developing a position in the uae. they see the good growth fundamentals here. it's a great place to invest that's what they've done >> how important is it that this distribution ipo goes well in terms of what happens next with the aluminum business next year? frnlg>> investors looked at thee for us, we need to lead the way and build krcredibility. >> the price of bitcoin has hit another fresh peak as investors look towards the start of another futures exchange for the cryptocurrency bitcoin prices temporarily rose to more than $17,400 this as the regulated group is set to be the second u.s. exchange operator to launch a bitcoin futures contract stanley druckenmiller weighed in on bitcoin's wild swings >> bitcoin is like anything else, it's worth what people are willing to pay for it. right now people are willing to pay -- i haven't looked in the last five minutes, are withey ae willing to pay 17,000. the tulips were worth that when them were paying that for them the concept that bitcoin could be a medium of exchange has been eliminated you can't do retail transactions with something with this kind of volatility if people think bitcoin is worth 17,000, that's what it's worth today. i think at some point figure out when this will end, and then either get out or go short by the way, when this ends and it will, i'm talking about this monetary radicalism period we're in bitcoin will probably go down with the rest of the stuff >> there's a wide disparity in bitcoin prices on the different exchanges. so why the big gap bob pisani explains. >> if you're looking to invest in bitcoin, you may be frustrated by the fact that bitcoin prices can vary wildly across the different exchanges it makes some people crazy, frankly. the price difference among the exchanges can really be significant. at 11:00 a.m., bitcoin was trading on crakin', 17,212, gdax, 17,150, but bit stamp below 17,000 the differences can be as low as 2% and more on smaller exchanges. what's going on? first is liquidity volumes on the larger exchanges run into thousands of bitcoins a day, some smaller ones may do a few dozen. that can lead to significant price differences. second, no standard agreed upon way to price bitcoin that's a problem third and most importantly, you have an arbitrage issue here to arbitrage the price differences, you need to own bitcoin and cash at the exchanges. so, for example, if you want to buy bitstamp and sell coinbase, you have to have dollars already at bitstamp, you have to have bitcoins at coinbase, and you need a lot of both you need a lot of collaterals to make the moves quickly because if you don't, you have to move money across the exchanges, that could take a lot of time and the art could be lost finally the infrastructure issue. no management tools allow you to execute across multiple exchanges. you can't push a button and make it happen. the challenge is how quickly can you build infrastructure this is an issue i'm sure a lot of companies are looking into this. i'm bob pisani, cnbc business news, new york. some people are still bullish. michael novogratz thinks bitcoin could reach 40,000 let's take a quick look at u.s. futures before we go. s&p 500 pointed to open a little bit higher, 2 points dow jones up 33 points that's it for today's show i'm joumanna bercetche "worldwide exchange" is up next. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. my friend susie cracks and hello sensitive bladder. ring a bell? 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