And after the german Power Utility Company has shares higher, the investors are sluggish off profits. And the tech market has an 8 million business acquisition to harman national. Good morning, everybody. Welcome. Hope you had a fantastic weekend. Were you reading all about the president elect as i was, or were you putting it to one side saying youve had enough . We are looking at the European Equity markets opening a little higher up by right around a percentage up point. By and large, most of the European Equity markets are trading across the territory as seen here. And we see that reflect in the main european markets. With all of them trading in positive territory, some by 1. 5 when it comes to the cac40. Some of you are near 4. 5 . When it comes to the sectors out there, basic resources are strong, 2. 5 for Financial Services. They are higher by almost 2 . Telecoms real estate and utilities there. If we are to see a loose anything of regulation, for example, in Financial Services as trump proposed, same for the pharmaceuticals, we could see these boost. Lets just recap what type of markets we have been seeing over the last week or so. Because the postelection stock rally in the u. S. Was more subdued on friday. The dow gaining 40 points to close out the best week since 2011. Industrials and transports outperform on the back of Infrastructure Spending from the president elect while gold fell by more than 6 for the worst week since june. So the dow up by Something Like almost 5. 4 with the best showing since 2011. And the s p 500 seeing an almost 4 gain, 3. 8 gain, the strongest in two years as well. Meanwhile, speaking of cnbc on friday, jeff gunda shared his market news saying he likes financials at the moment but is avoiding something. Take a listen. When we get the closes of 21 30, down nine days in a row, culminating in a crash overseas when the news was apparent that trump would win, that turned out to be a buying opportunity. But right now the market is in no mans land. You have the 2200 type of ceiling. If you look at the charts with a 2100 type of floor, let it prove itself either way. All right. Here at the top of the hour im joined by the ceo of hercules capital. How are you . Good. Happy monday. A new beginning after last week. I am shell shocked but yeah. Some people are talking about how youre going to be looking at a business from now on. What does hercules do . We provide capital to Growth Companies by leading venture capitalists in the country. We have a portfolio that provides capital to technology and Life Sciences companies. So a debt provider. So we are a debt provider. Now a lot of people would say investing in technology right now is not the way to go given that we have seen these massive runs in tech stocks before the election, only then to see a huge reversal because the thinking is he is not close to the trump or the trump administration. The question is that many folks in the silicone valley were against mr. Trump, but the Life Sciences side has done quite well. We are seeing in our portfolio a significant resilience coming through the companies today. And some Technology Companies emerge as quite strong. You still need American Technology to advance further. Trump was against many of the backers that supported Technology Companies that didnt support him and supported hillary, but i think they will go to him just fine. You dont believe now is the time to focus back on kind of core old american stocks as opposed to all the new tech . Well, clearly we have seen a rally going on in course talks like caterpillar. Ironically, smith and westin have gone down after trump came into office, but we still need technology if our every day lives. Our mobile phones, big communication, big data analytics, that is all important of technology and part of our lifestyles we go to today. So including the political environment and putting it to one side for a second, there are those who say the runup smells too much like 2000 and we need to see some type of an eveninging out in this runup to technology. Well, having lived through 2000 i would tell you i did, too. I would say the market is quite different between then and now. Today evaluations are certainly higher in certain sectors, but we are seeing pullback in other areas to make it attractive. We are still seeing good signs of adventure capital. So far we expect adventure capital in 2016 to be about 50 billion, albeit down from 75,000 la 75 billion last year. You say technology, Life Sciences, clean and renewable technology, again an area where a lot of people would say trump is trying to loosen the regulation as indicated in the oil and gas sector. And that would be positive. The oil and gas stocks are negative with clean Energy Players out there. Absolutely. We have a little bit of a pullback. Teslas evaluation most recently is a threat of trump coming into the administration. But we also see other areas. We know well stand for just solar and other energies related to fossil fuels. One company we are very excited about that makes electric bus manufacturer. They are competitive. They make an electric bus to compete with the chinese manufacturer and is doing well. They are seeing a strong order. Is this called proterra . Proterra. Listed as private and doing quite well. What should we anticipate over the next few days in the ipo market . Unfortunately the ipo is not that exciting. I hate to say that to viewers of yours, but we are struck by how nonexistent it is today. We are seeing very strong interest and continuing to acquire companies. Its been busy for us and we are excited about the m a opportunity. Let me just interrupt this for one second just to bring some flashes that were just getting through from the ecb projections are predicted on the current portion of things persisting. He has an abnormal degree of uncertainty after bonds have gone nuts. The president ial stock is to be careful to draw conclusions from the market developments and the movements result from the fact that Inflation Forecasts are where the market is at the moment, especially stateside. He talks about how so far the Development Scene points to a u. S. Rise in Economic Growth but in the context of an America First policy. Not sure if that is to mean that protection is back on the table, but hes definitely indicated and says headline inflation is above 1 as of next spring. Does this also mean given these inflation projections now that much higher well see a lot more aggressive wording from the fed heading into next year, regardless of whether we get a hike in december . Well, the hike in december is now up for grabs. Its very clear now that trump has gone to office and trumps very strong views on the fed policy. And mrs. Yellen, in his view, that the fed should be more controlled by the government. So its supposed to be independent. We are prepared for the portfolio to be attractive. And we provide venture debt, which means it allows investors to get access to yield by paying our stock. We pay a 9 dividend stock as an example of that. Right on. Thank you very much for being with us. Thank you. Henricko is the ceo of hercules capital. Siemens has agreed to buy mentor for 4. 5 billion or 37. 5 per share. They expect 100 Million Euros within four years and the transaction is expected to close in the Second Quarter of 2017. Mentors 8. 1 shareholder Elliott Management has committed to support the siemens deal having said the shares are completely undervalued. And novartis is looking to sell their Eye Care Division called alcon. The chairman said alcon has not developed as expected in the last two years. And samsung will arequire the Auto Supplies from harman for 8 billion. It will boost in developing automotive technologies. Thats a big deal in the country. And greencore plans to buy Peacock Foods for 747 million. The Irish Food Company announced a 2 rise in operating profit while the companys total dividend rose by 8. 1 . Speaking to cnbc earlier, the ceo discussed the merger in more detail. For five years now we have tried to build the scale in the u. K. And the u. S. And we have been looking for a number of years for the right way to scale up the u. S. Business. Unfortunately, we came across Peacock Foods back as early as march, actually, and we have been working with them on a bilateral basis to put in place the arrangement that we announced this morning. Well end up post transaction about the same business in the u. K. And the operating profit rose by 7 thanks to costcutting measures and property sales in what has otherwise been a difficult period for the german utility. The cfo said the company is on track to meet the upper range of its fullyear forecast raising the forecast by 300 Million Euros. And Taylor Wimpey is on track to improve profits this year despite smaller cans collations to 13 year to date. The u. K. Home builder struck an upbeat tone as trading followed up with the eu referendum. Youve been super active already this morning on twitter. Good morning to you all. Im glad to see that you are wideeyed and bushytailed this monday morning. Keep your questions and comments coming. I would love to use them throughout the show today. And you can tweet the directly as well louisa bojesen. Now in other news, a rare supermoon, its actually the moon, but its called a supermoon will be lighting up the sky as it orbits closer to earth than what its done since 1948. The full moon will be at its biggest and brightest today look at that, quite extraordinary. The closest full moon to date in the 21st century according to nasa. Dont worry if you miss it because apparently theres going to be another supermoon on the 14th of december. Im told the one here in november today is going to be bigger than the one seen in december. So if youre feeling moody or strange this week, that might be why. Also, if youre an avid sky watcher head to cnbc. Com for more statistics. Well be back just after this. Weve got plenty more guests, lots of discussions coming up. So join us on street signs on the other side of the break. Welcome back. You are still watching cnbcs street signs. Im louisa boys en. Two people have been killed following a 7. 8 magnitude earthquake in new zealand. Strong aftershocks continue to hit the region. Nbcs Lucy Cavanaugh has more. Reporter we just heard from new zealands Prime Minister who said two people lost their lives in this earthquake. 7. 8 magnitude. They dont have indications that the death toll will rise, but they arent ruling it out. At this point i want to give you precise information of what caused those fatalities, but as soon as we hear the information well come back to you. Reporter military helicopters are being sent to the village near the epicenter about 57 miles away from christchurch. The second largest city in new zealand. The earthquake struck just after midnight local time so people were in bed getting ready to go to sleep. The whole house was moving. It was creaking. It was creaking, moving, yeah, it was pretty it was a scary thing. Reporter it was felt 150 miles north in wellington, the countrys capital. We saw roads cracked, a highway onramp collapse and the terrifying sounds of tsunami warnings surrounding telling people to move to higher ground. Christchurch was devastated by a deadly quake in 2011. 185 people kill in that one. That was a 6. 3 on the richter scale. This one 7. 8, but it was deeper in the ground. There was slightly less destructive. But daylight is just breaking over there and emergency workers are still making their way to that coastal town. So its going to be a while before we know the full impact. Lucy cavanaugh, nbc news, london. Now in business the korean yuan has weakened for the fourth straight day as the Prosecutors Office said it would investigate corruption allegations against the president. Deepening political crisis in south korea has prompted the finance minister to say that the government is ready to implement measures to stabilize Financial Markets if needed. The scandal has also led to public demonstrations across the country calling for the president s resignation. The chinese president xi jinping and President Trump talk talked on the phone. Xi jinping said cooperation is the only choice for relations going forward. Trumps victory brings a new degree to uncertainty to the geopolitical relationship between the two largest economies. And china released a mixed set of data. The retail sales are mixing the forecast but investments edged up by 8. 3 in the first nine months of the year. And the nikkei closing at its highest level since february on upbeat growth dates on a weakening yen. July to september real gdp rose by half a percent outpacing expectations for a 0. 2 increase. And stock markets staged an impressive rally in the aftermath of president elect Donald Trumps win. Is this a trump trial for just the classic postelection boost . Markets are up in the states after Donald Trumps election win. In the first two days, we saw the dow and s p go up 2 . But heres the thing, the stock market always goes up between election day and inauguration day. Back to 1952, 12 of the transition periods saw rises in the stock market. In fact, there was significant gains for the s p 500 with a full 3. 7 . Thats a lot for just a few weeks. But after that, thats when things get interesting. And you realize the market was usually overreacting. In the first 50 trading days after inauguration, the markets average return was negative. And if you look further out, 100 to 150 trading days, we saw very small positive returns. There was actually zero correlation, and i mean exactly 0. 00. Between what happens now and what happens after the president takes office. And if you want to take it even one more step, just look at every year between early november and midjanuary regardless of elections or not. The median return is 3. 5 since 1980. So maybe it is just a seasonal thing and nothing more. With all that said, be extra careful of using the shortterm trends to predict whats coming next year. We really dont know. All we know is the markets like to move up this time of the year, elections do not. Back to you. Continuing our tech conversation, we are talking technology with a guest here, netflix is down by 6 . The underperforming tech stocks are linked to the fact that overseas profits could be taxfree under a trump presidency. The managing director of Business Associates is here with me this morning. Good morning. Good morning. Do you think this is bad for technology . It is not necessarily going to be so good for Technology Shareholders if were going to be playing around with the way taxes are treated and stuff like that. But one of the major reasons why tech stocks fell so badly last week was a lot of them have this image of being antitrump. They were on the side of the democrats in the runup to the election. And there is a fear that trump will do something to get his own back, so to speak. I think this is probably unreasonable. I dont think that is precisely how hes going to go about it, but his focus is on improving the situation for the people who voted for him, which is anybody other than that group, so to speak. They could get left behind. But i think that is where the problem lies and people are interested in coming to alcoa or caterpillar at the moment. And there are people in Silicon Valley are worried that the antiimmigration stance will prevent people from moving to Silicon Valley to work within this environment that tradition has brought a lot of people from other countries come in. You presume there will be a distinction between skilled and unskilled immigration. I would be surprised if there is that much of a problem in terms of skilled immigration, which is what the Tech Companies are interested in. I guess maybe it is a psychological impact, whether people would want to move to Silicon Valley or whether they try to find an alternative. You could work on that principle. I think in one sense its overdone. But the other side was the path that tech stocks had performed fantastically well. And there is a degree of, you know, reasonable profit taking and this is just a catalyst. What were looking at right now is not so much the situation where tech stocks in general are problematic, but within the tech sector theres a swing away from the sort of Software Consumer focused ones, which is the f g stands for to more of the Hardware Companies in the supply change and on the equivalent side. I find it interesting you think that because it seems like a couple decades ago when i first started all the hype was precisely around hardware. And over the last decade especially, we have really Seen Technology being more and more defined by anything but the hardware. But you think were heading back to that. I think so. We just had the acquisition today of the 8 billion acquisition. But this is a company heavily involved in all of Technology Going to smart cars and yet because its established manufacturer is trading on point discount to the average p. E. Now, that gives you an idea first of all of the value in that route. Secondly, we see a pick u