entering the united states. >> a financial crisis all star cast for pimco. they name their advisory board. okay let's check in on european markets. volatile session yesterday on wall street. we were down 200 points. one point for the dow jones industrials managing decline just lower. today we're looking at losses across the board. ftse 100 is down by a quarter and cac 40 suffering losses as well. here's the lead, disappointing chinese export numbers which will go through in just a bit being lead by a lot of the big mining shares with the collapse that we're looking at in prices and other commodities. here you go, lost 1% and also lower by close to 2% and u.s. futures are looking like this after a decline across the major benchmarks today. we are lower. the dow jones industrial is called down by 33 points. s&p 500 pricing in a small up session of maybe one point in the open and the nasdaq looks like we're down some 11 points or so. >> much of the decline in u.s. markets yesterday was due to the decline. the slump, the precipitous slump in oil prices. we're seeing buying this morning though. wti crude still below 40 at 37.84 but a slight rise after falling 6% in yesterday's trading session. brent crude at 41.01. higher by 0.7% on the day. in part because the chinese import numbers of oil were quite comforting but maybe this is a little bit of short covering. iron ore prices have fallen below $40. this is the lowest in a decade and so far this year they're down 45% and all of this combination is having huge impact on many of the oil and mining stocks. showing declines of almost 4%. we're off here by 6.2%. this is a record low for the company as this miner is cutting jobs. they're selling assets. they're suspending their dividend for the rest of this year and next and cutting down the size of their businesses. let's get out to steve still in paris. steve, the massive decline in oil prices not helped by the short positioning, is it? >> no, well, it's boosted by the short positioning in many ways. i was actually quite interested because you had it down from $46 barrel just down north of 41 new. i was surprised the guys didn't take their profit around the opec meeting. what they have done is recharged and carried on with that positi position. that's part of it as well. but the other part is and i disagree wholeheartedly with a guest you had on this show after i was speaking yesterday that said nothing changed because that guest is right in the fact that there was one more barrel coming on to the market that wasn't already there. now they're saying we don't have the difference anymore. we just produced what we produced as well but the difference was the change. they threw in the towel and it's all about sentiment in this market as much as it's about real physical supply. i was like teach them a lesson? they put 10 to $20 premium on the oil price on the way up. saudi should have been thanking them. there's a lot of longer term factors. i was writing about it at the start of last week. i don't think the opec producers or other producers can control the long-term structural issues and one of those is shell despite the real concerns about the financing. >> oil production in the united states has not dramatically dropped. it has gone down a little bit but it's up by 4 million barrels a day from a few years ago. the average production will still be above 9 million barrels a day. presumably the expectations are that over time we will probably see a slow reversal of that drop off and the production will be resto restored and even with our natural gas production it continues to go up and our first exports from the lower 48 will hit the water early next year. >> it was growing 1.2 to 1.5 million barrels a day. it's come a little bit off the highs but if the u.s. is still producing 9 million barrels a day in total of product that shows you how robust the response has been and cost cutting has been despite the lower cost environment has been because you have to satiate the banks in the states as well. it just shows you that i think that opec underestimated the opposition. >> we're 3% down from that april peak in terms of oil production from the u.s. so people are looking at 3240 for the west texas contract. that's the low for oil pricing. i'm wondering if you think we're going to get there? >> i have no idea. good luck to anyone that thinks they do know. the fundamentals are dreadful. the oversupply is overwhelming. it could be more than a million and a half barrels a day. and yet, the shorts are are so many shorts out there. what does it take to create a short squeeze in terms of sentiment as well? i mention the other point, this is the dollar trade as much as it's about an oil trade as well. if the dollar loses robustness because of a slower pace that could mean a rebound for commodities at some stage and other factors in there as well. that's the x factor. 8% increase from china on the back of the lower prices as well but they're slowing. their carbon emissions are slowing as well. that growth in chinese demand is due in 2016 as well. so we'll just hold off a little bit on the china demand story as well and there is issues about the growth of demand more generally in 2016. so there's questions on both side of the equation on this one as well. it seems a slam dunk to carry on going lower but it's beyond me to get involved in that lower price action. >> i never thought you were shy of expressing an opinion but i think i caught you out. >> i'm pretty shy. >> i can tell. >> i just get all inhibited that's the problem. i don't like to talk. that camera inhibits me. >> that's what i noticed. we need to work on that. to get you out of your shell. thank you. we'll check in again. >> we should put him on our show for 3 hours every morning. maybe he'll get out of his shell. oh, he's already on that show. moving on to our top story, anglo american unveiled a radical overhaul which will see them consolidated from six units into three and it will scrap the dividend for the rest of this year and next. shares sinking on the news hitting a record low. those declines were off by more than 8%. 339. if we take a look at what the shares have done the last three months. they're down 50% year to date. they're off 70%. anglo is looking to reduce costs and cap ex. >> rio tinto cutting it's 2016 capex budget by half a million dollars. so they'll still spend half a billion in a year. we have been talking about it all morning long. it accounts for nearly 60% of adjusted earnings at rio. and bhp, you name it and the other iron ore plays and when you're down below $40 that's a fresh decade low. it's not surprising that we're looking at a cut when it comes to cost expenditure. >> yeah but you know what's really interesting is the fact that the more pure iron ore players, bhp, they have weathered the downturn in commodity prices better than some of the more diversified miners. i'm talking about glencore and anglo american. we saw the cut in dividend at glencore and anglo american and we haven't seen that at ri rio tinto because their cost structure is so much better. >> it's a supply play as well. i ask why do you continue at the record levels when you're not getting the pricing like you used to. it has to do with what the oil producers are doing to stamp up the small r players and get better market share and dominate the market in the future when prices do bounce back. >> you have to wonder when there's going to be light at the end of the tunnel because we thought the bottom was in september and october for the likes of glencore. cut their dividend. they're announcing they're cutting their debt. they're announcing the sell off of the assets but there's no end in sight at this point. it's very similar to what's happening in the oil market. all right. i have breaking news to share with you. let's talk about sportsouth african court. today granted bail to oscar pistorius after he was convicted of murder for killing his girlfriend reeva steenkamp in 2013. that was on valentine's day. the judge saying the athlete did not pose a flight risk. so south african court granting pistorius bail after that murder conviction. that was a surprise because the supreme court last thursday upgraded the sentence to murder from culpable homicide. this was unprecedented in the criminal history of the judicial history in south africa. so that's the south african equivalent of homicide. it's been upgraded to murder but now he's granted bail. >> what i find extraordinary is he has already served his sentence and now being convicted by the supreme court without a trial. i find that extraordinary. i'm still trying to understand the judiciary there. let's take a look at asia. we saw big declines in the asia pacific and this is on some disappointing export import numbers from china and also we had japan narrowly escaping a technical recession. it's two quarters of negative growth in a row. looks like they have missed that because they somehow squeezed out gains and expansion in the third quarter. meantime the composite closing down almost 2% posting the fifth straight months of declines and imports going down as well for multiple months and people are thinking what does this mean for demand coming from china and also the growth picture? the picture remains sluggish on the external front. exports contracted by 6.8%. imports by 7.8% contraction there. this was bad on the import side but it wasn't as bad as most were looking for. they were expecting a number of 12.6% contraction on that so the import number not as bad as forecast, 6.8% contraction tells you that the environment is still quite sluggish. the policy response will be quite interesting. now post sdr inclusion that's a hot of emphasis on the yuan and are they going to rye to engineer a lower currency in order to stabilize expert growth. that's an interesting question in terms of the policy response. in terms of the broader market action there's two dynamics. yes the trade performance underwhelunde underwelmed so that save sentiment a knock across the region. also was the oil price. been talking about this seven year lows yesterday. a degree of stabilization but it looks like the proverbial gap bounce and the energy stocks as you would expect underperformed today across the board. what will be interesting, and you saw this today, is that the countries that are the net oil exporters that really depend on the stronger oil price for oil revenue got a big hit today and i'm talking about malaysia. it was down by more than 1% and you saw this play out across the em spectrum, the peso, the ruble all hit hard by this slump in oil price so many my mind are we going to see an even more aggressive rerating if this oil price continues to decline? that's the big open ended question across the end spect m spectrum. that's the big negative feedback. back to you. >> thank you so much. still to come on the program, we're live at tech crunch here in london and today we have the ceo of aol, tim armstrong will be joining us. that conversation coming your way at 11:20 cet time. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you. they're eyeing a work force reduction to 135,000 employees at the end of 2015 so that signifies a huge reduction in the jobs at the company and they're also moving the london headquaters and finally they're not targeting asset fire sales but they're selling a significant number of assets. shares in the company did fall to a record low this morning. last time i checked they were down by roughly 8%. >> beijing has issued it's first ever red alert for smog amid dangerously high pollution levels across the country. schools have been shut and many factories closed and there's restrictions keeping half the vehicles off the road. authorities are expecting very heavy smog in beijing over the next three days and this leads us right into the climate change discussions and negotiations in paris. cop-21 and steve is back for more. steve. >> guys, i have an absolutely fantastic guest for you next. speaking to helen clark who is former prime minister of new zealand. great to see you. thank you for joining us. we were talking off camera. how do you feel it's going? >> i think it's bright and still a lot of hard issues to crunch and the issues we have known about for quite a lot of years. >> there's a key issue. what do you think the key crunch issue is that is or state's exhibit being addressed at the moment? >> it's going to come down to the long-term goal. is it going to be 2 degrees or 1.5? are people going to be accountable for the actions they commit to? these are at the core of what needs to come from paris. >> and that is the reference to some people saying 2 degrees above preindustrial times is not enough. we need 1.5 degrees now. you were saying the u.s. and the eu are getting behind that but do you think there's some developing nations or rich middle eastern nations that might not want to go there. >> 2 degree has been the conventional wisdom for a long time. it's a very exciting development to see the eu and the u.s. start to say, look, maybe we need to think about this 1.5. that would be for something else of course but i have to say the kind of extreme weather events we're now seeing with nothing like 2 degrees or 1.5 celsius rise would make you think it needs to be revised down. >> do you believe it's the old dividing lines and sticking points of developing nations versus developed nations that is still in evidence here despite the shift we've seen from china? >> having interacted with leaders for the last 15 plus years a core concern is could they reach advanced economy status on a renewable path with the means available to them? it's going to be an issue of what's the terms of technology transfer and what's the financial means. a lot of issues. people give up the right to develop them by going on a clean path so we have to show that the right to develop is enhanced by going on a clean path. >> they have questions about the trust that the money is going to turn, $100 billion per year and this is supposed to be a multidecade plan. that's a big commitment. they're right to question where that money is going to be there, aren't they? >> it's not going to be 100 billion of public money. we struggle to keep the 135 billion for official develop m assistance. so adding another 100 billion on that of public money is not so it's going to be a mix and the question is do we count for example the money no longer paid in the fossil fuels subsidies. do we count the private investment? of course we should count anything coming from the multilateral and regional and other banks so it's an issue of what is the 100 billion made up of? >> and the private sector needs to play a large role in that as well. what about loss and damage? you represent the smaller voices and give them a loud voice as well. it's a key issue. is there going to be any compensation? would it lead to more litigation? is that fair? >> so loss of damage did come into the language but i think clearly developed countries are signaling that they wanted to stop some what short of compensation so the issue would be what would be the creative mechanism that could deal with it. for example, for the smaller developing countries that we must be very much advocates for, more support for adaptation. that's the critical thing for them on financing, could there be more support for risk based insurance which would pay when things go wildly wrong. what about your ability to barrow. a huge problem is they are now middle income countries. no concessional finance and middle income country status is no guarentee you won't be wiped up in the next cyclone or hurricane so these are core issues. >> really nice to see you again. another new zealander. congratulations a passionate rugby fan. back to you guys. >> let's talk about m&a. staplings and office depot plan to fight the federal trade commissions. the decision to block the $6 million merger on antitrust grounds so the ftc said this deal would hurt competition in the u.s. office supply markets. staples and office depot falling more than 14% on monday and over at german trade we're looking at pronounced declines for office depot, staples. it's lower by 5%. >> yesterday, shares in green mountain closing more than 70% higher. this after the european investment company made a $13.9 million offer for the coffee firm. that's aa 78% premium to the closing price on friday. >> a u.s. senate panel is holding a hearing at 10:00 a.m. eastern on the $107 billion deal to buy up it's rival sab miller. ab inbev's ceo and miller coors chief will be testifying and the panel will examine potential antitrust issues as the combined company would huge controlling around a third of all beer sold worldwide. >> let's talk more about where we are in the m&a cycle with professor scott miller, director of the m&a research center. >> what they claim to do, could they get that money back in the near term? they'll have to work hard on that one, won't they? >> it's interesting that they are taken private. so in a way it doesn't matter what they will look like because there's less scrutiny from the public markets. they can all do it in private. >> he can on that and that's the nice thing. this also bodes well for what might be happening with the private equity business as well because that's been one of the things that hasn't really come back in the strength that we had seen back the last time we had it. so back in 2007 driven by private equity hah hasn't been there yet. is this one of the first ones we've seen? could be. >> is that the reason why the antitrust departments are getting into action? they're being called antitrust cops. whether it's from stove ranges and even salmon producers wanting to get together. that was off the table because of concerns about the justice department and what they deem is too big for the u.s. market. definitely they're rattling their sabers. they're feeling that some of these deals -- remember this is a market that's been driven by a lot of these mega deals. mega deals pull together that market share to levels that, in fact, you just cannot ignore. when you look at this electrolux-ge deal. that's one you can't ignore. >> i think they're getting too visual because if they wanted to use that excuse about owning too much of the market, why do they allow all the u.s. air hines to merge together and we only have three big ones to dominate now. >> it's interesting because some of them seem to have a buys. baseball in the united states actually has an exemption from antitrust. >> can this continue even if rates are hiked in the month of december? can it go on into 2016? >> my prediction is that 2016 we have enough of a momentum from where we are right now. it will be higher in the first and second quarters than where we are today. and rates are increasing to a low level from an almost extremely low level. and from that perspective we'll be able to afford them. we're not looking at a steep rate hike yet. at some point in time they might be. now expectation of course is really -- and confidence is what drives the m&a market and that's where people will be thinking about what's going on six months from now. >> thank you for your time. appreciate it. director of the m&a research center. >> so we're going to go to break but coming up we'll tell you about an unlikely visitor to the kremlin. yeah. former baywatch star pamela anderson. she was praised by putin's chief of staff for her beauty during the meeting. but was she there to discuss her beauty? no. we'll tell you what it was, after this. ly big deal. the aches. the chills. the fever. an even bigger deal? everything you miss out on... family pizza night. the big game. or date night. why lose out to the flu any longer than you have to? prescription tamiflu can help you get better 1.3 days faster. that's 30% sooner. call your doctor right away. and attack the flu virus at its source with prescription tamiflu. tamiflu is fda approved to treat the flu in people 2 weeks and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. the most common side effects are mild to moderate nausea and vomiting. call your doctor right away. don't lose another moment to the flu. when there's flu, tamiflu. a sea of red sweeps over europe and iron ore prices stay below $40 a ton. >> anglo american will reduce it's work force by 70% in a radical overhaul that also sees a miner scrap it's dividend sending shares down to record lows. >> up roar over comments from donald trump. the republican presidential candidate called for a total and complete shutdown of muslims entering the united states. >> a financial crisis all star cast for pimco. the investment firm names it's advisory board. >> let's get straight to some u.k. data. i'm just looking at the u.k. october industrial output up 0.6% over the last three months. manufacturing up 0.4% over the last three months. the u.k. manufacturing output though falling unexpectedly in the month of october. it fell 0.4% on the month in october against expectations for it to stagnate and compare in september. sterling dollar is down by 0.23%. 15017. we are under water today in large part because many of the mining stocks are putting the european markets under pressure and that's why you're seeing the ftse 100 off by 0.7%. shares have hit a record low after the miner announced it would cut around 70% of the work force from its current levels for the rest of the year. the miner has unveiled a radical restructuring which will see them consolidate from six units into three. iron ore prices are below $40 a ton. they have fallen 45% this year susan. they have also fallen 45% last year and it's very tough for many of these, i'd say more diversified miners like glencore and anglo american to ride out the storm. it's a lot easier for the likes of bhp and rio tinto that have low costs and they're so big. they can ride out the storm easier because they're producing so much. we're seeing that the big hit was the dividend. a lot of people expected that the dividend for 2016 would be maintained but no, it's gone for the second half of 2015 and 2016. it has been deleted. >> yeah. >> it's off. >> so there we go. more on the story in just a bit t. world's fourth iron ore producer. donald trump sparking lots of outrage from both sides of the political isle after calling for a total ban on muslims entering the united states. trump says he would keep the ban in place until our country's representatives can figure out what exactly is going on including facts about the two attackers in california. on fox news, trump said that he would ease the ban for muslims in the u.s. military but at a rally in south carolina he drew cheers when he repeated his message once again. >> it's obvious to anybody the hatred is beyond comprehension. where the hatred comes from and why, we have to figure it out. we can't live like this. hit get worse and worse. you'll have more trade centers. it's going to get worse and worse folks. we can be politically correct and we can be stupid but it's going to get worse and worse. >> donald trump is still by the way the republican front runner for the candidacy. he's being himself. tenacious, but legal experts say that trump's proposal would actually be unconstitutional. his fellow republican candidates have been quick to criticize him and the white house says that trump's plan runs contrary to u.s. values and people are looking at this. it is unconstitutional given that the first amendment rights say you have the freedom and right to exercise religion but this is timing for him since in recent polls he has now fallen behind in the iowa caucuses and primaries coming up. ted cruz is now taking the lead in the polls in the run up to that actual vote and also this comes off san bernardino and what people are seeing is as a weak message from the oval office on sunday night. trump trying to be the strong man and talk to the blue collar voters looking for the antiestablishment and some say perceived stronger leadership given the weakness they're looking at from the u. s. president in their views. >> but he received a lot of criticism and bashing for those comments. people say this put him in the camp of bigorty and unprecedented stupidity. the obama administration meanwhile they're trying to n not villify the muslims. he said the antimuslim rhetoric is a recruitment tool for is. so he's trying to tow the line here because it's a balancing act because on one hand it was muslims that shot the 14 people in san bernardino. on the other hand you cannot villify them and those trump comments provoked outrage across the spectrum. >> it's unconstitutional and also un-american. this is a country founded on immigration. so this is something that we're really talking about as we head into the polls. so cnbc now learning that an air france flight has been diverted as a result of a bomb threat. it was diverted to canada where authorities are currently checking all passengers and luggage. now they refused to elaborate on the exact nature of the threat but it hopes to resume the flights within around two hours time. 200 people on board originally scheduled to land just after 10:30 cet time. okay. so let's talk about pimco and we have been talking about this all star cast. lining them all up. higher former fed chairman ben bernanke and gordon brown and they'll be part of a board that will advice on economic, political and strategic issues. they will be leading the advisory board. >> do you think they can help stem the outflows though? that's the really important bit. >> i think that's why they're paid so much. >> but you need someone that actu actually ramps up the performance and stems the outflow. whereon if you need more brain power within the firm? you would think they have a lot. maybe it's a reputational stunt. still to come on the show, the puppy that gives pause for thought for those that think that russian-western relations are in the dog house. >> we are seeing a little bit of a rebound after yesterday's steep sell off. brent and wti were off by more than 6% this morning. brent crude at 41.17 up by more than 1%. wti crude still well below the 40 handle at 37.92 up by 0.7%. is there any silver lining because the ruble depreciates? >> it increases pressure on the governments to move along with trying to change the economy to institute reforms to create more incentives like to diversify the economy away from oil and gas dependency so we saw that for a couple of times over the last 15 years. low oil price environments does create more momentum in that regard and then completely dissipated so if you want to be cynical about it. say it's good for russia long-term but today causing pain in terms of inflation and keeping interest rates higher and slower than the economy and is pulling the ruble a lot lower. >> for 2016 we're not expecting a recovery right now. the ceo yesterday said maybe a recovery in 2017 but not 2016. how badly is it hurting the revenue or budget? >> we have built in $35 brent in the first quarter which implies 75 or 76 ruble against the dollar so we're expecting this to get worse over the winner and spring before we even reach stability. russia was actually relatively quick to move and it is one thing about the russians i think that people don't appreciate enough is that when faced with no other choice they actually do what's necessary. so you do have to get to that point quite often and russia would face the falling oil price unlike say the opec producers it just moved, it cut any support from the ruble and moved to the preflo free float. the damage to the budget has been a lot less than would otherwise be the case. russia's budget today with this current exchange rate will balance at around 70 dollars. that compared with $113 in 2013 and sort of seems to be higher. >> it seems like you're highlighting a lot of problems which is all very clear for the market. and is russia in a position of strength? because they're trying to conduct the air strikes now in syria and trying to battle on all different fronts really. >> no, russia is not in a position of strength. the best you can say is russia has been more stable this year. >> then why waste your resources connecting these air strikes. >> it's always a balance between some pursuing geo political objectives and pursuing domestic economics and you always see that balance playing out and being a great geo political leader of russia and there is a constant conflict as it were trying to balance both objectives and today russia received some objective but in 2016 you're going to see greater focus returning to the economy. the presidential election is only a year away. >> okay what about, you know, i guess putin's position given the weakness now in the russian economy and metro jet and other concerns that they look at, is this a dangerous time for putin, do you think? >> not yet. popularity is still high. it's the message coming from the cremlin and number three, president putin has a considerable amount of brownie points built up. before putin it was lawlessness, poverty and very little reason for hope and since he arrived the situation has changed so people look at putin in that regard. he's the person that pulled russia out of the chaos so i don't see anything that's happening today that would risk sort of undermining that position. i think we would have to get a lot worse for longer before we could even start to talk about that. >> thank you for dropping by. >> let's get back to our top story. share versus hit a record low after the miner announced it would cut around 70% of its work force from its current levels and scrap it's dividend for the rest of the year and next the miner has unveiled a radical restructure chg will see the mining group consolidate from six units into three. shares off by 5.2% at one point they were off by as much as 3%. thank you for taking the time to speak to us this morning. why are we seeing this excessively negative reaction in the share price? we knew that the investor day was coming. we knew there might be a cut to the dividend. >> yeah. it has been weak for awhile. it's the balance sheet and how they were going to survive with a period of low commodity prices and the fact that they suspended the dividend is a bit of a shot for the market. i don't think anyone was expected them to spend the dividend. maybe just reduce it. this looks like a radical restructuring. probably, you know, looks like a more survival plan than maybe just trimming and, you know, cutting costs and all of that. sort of things that have been seen from angelo american for awhile and i think it just puts the spot on the quality of assets within angelo american and, you know, the company talk about radical restructuring to focus on priority one assets and when you look at the portfolios you wonder how many assets angelo american has and the point sits going to be difficult for them to perform across the board so they really only have a few assets which qualifies tier one. >> at what point though do you think that the restructuring efforts even if you say they're hurting in the short-term at what point are they going to bear fruit? 2016? 2017? 2018? because the company also outlining job cuts and they extend well past 2017. so is this a two to three year story? >> definitely. but one thing we must not forget is they are within their portfolio which is a really good business and the current valuation it's just lost in all the other things that are going on within anglo american. i know it's obviously the priority one asset. but if they manage to survive they have quite a lot of debt on their balance sheet and there's a turn in the market. things should start performing and generating quite a lot of cash for them. >> it's funny that you just brought up diamonds because the ceo that was just speaking saying that the global diamond industry is facing a midstream problem because diamond stocks isn't too high. there isn't as much demand. is there really anything that they can rest on right now? >> i think, you know, what they're trying to do is they're trying to sort of put themselves in a position where they don't lose money, you know? so for example, their iron ore assets are nowhere near as good of quality as rio tinto and bhp and even though they cut cost they're still very much closer to break even than their peer group in iron ore where as i know that in diamonds they're struggling but they're still, you know, they're still a cash generating business for them. >> what do you do with the stock right now? buy, sell, or hold? >> i would be a holder. >> okay. thank you so much for that. senior research analyst of mining at s&p angel. >> more problems at chipotle as 30 students at boston college including members of the men's basketball team got sick. chipotle temporarily closed it's location in boston. health officials are trying to determine whether the illnesses are actually linked back to a e.coli outbreak at chipotle restaurants. they warned friday that fourth quarter sales would fall for the first time in it's history impacted by this. down 6% in after hours in german trade. down 2% so far. >> yum brands says the cfo will re-sign in february. he will stay on long enough to complete the company's annual report though. yum says it will look at internal and external candidates for the replacement and the move comes as the company gets set to spin off it's chinese operations. yum brands and german trade off by .5%. >> verizon is eyeing yahoo!'s internet business according to the cfo. speaking at a conference he says yahoo!'s assets would be a strategic fit but it was too early to talk about an acquisition. they made a move into the online advertising and digital and video this year with the takeover of aol in a $4.4 billion deal. let's get out to nancy at tech crunch disrupt. >> that's right. that report about verizon potentially looking at yahoo! undoubtedly a topic of conversation on the floor where we're looking at media and mobile disruptors galore but the ceo of aol is here and we will be speaking to him in just a little bit on your show. but first the focus on the start up environment here in europe and as you know a hot area of course is payments and i'm joined now by one of the payment success stories. i'm joined by the ceo and co-founder. thank you for being here. there's been so much action in the payment space specifically coming from europe. you have now joined the ranks in the unicorn status but with this distinction comes great responsibility. how are you distinguishing yourself from the other payment players? >> there's in companies and they all make the a layer and it's all nationally organized. we already had a company and that's what we did in the past and we disliked it. so when we started a couple of years ago we said we're going to build it from the merchant all the way to the card schemes so we don't use banks we have our own visa mastercard licenses and the transaction never leaves our platform. >> and presumably a key part of the success as you were building the new platform is getting key customers in the united states. obviously a high growth market for you. netflix, uber and spotify among your customers. how crucial has this been? >> they're frustrated with the quality the banks can deliver to them and even a layer above it doesn't solve it. it can get to new level quality so better conversion and not saying no to valid shoppers. offering them alternative payment methods. that's why they made the move to us. >> when we think about frustration with payments. we talk about the airlines especially when it comes to the emergencier environment and dealing with customers across boarders. is this an area you expect to grow going forward? >> the travel industry has them all over the world with many different and they receive a union pay card and you wouldn't say so but airlines see more and more people trying to not pay for their tickets and we help them also significantly with their reduction. >> how is the fraud issue impacting your business model in terms of the cost structure? is this a burden you take on yourself or do you outsource when it comes to protecting against fraud, cyberattacks? >> no it's always the merchant that's impacted by the fraud. what we can do is give much more insight into which transactions to accept and which to reject. we have more data points so it's easy to out perform there. >> and when you reach the scale and valuation that you have naturally we start talking about the exit plan. successful companies before you have gone to have a takeover from the united states. is that something you see yourself following or are you eyeing an ipo perhaps? >> there's one different thing. we're profitable. so we don't need to do anything. many of our customers are public to going public at a certain point is an option but of course we can also be one of those companies that can stay private much longer. >> okay. there you have it. the ceo talking about staying successful as a private company. for now. we'll be back with much more and at 10:20 we'll be speaking to the ceo of aol. back to you. >> thank you so much. heading into the next hour of worldwide exchange, still to come on the program, donald trump known to cause controversy but has he gone too far this time? we'll explore after this. >> good tuesday morning. welcome to worldwide exchange. >> these are your headlines from around the world. >> the sea of red sweeping across europe. money stocks leading the declines today as oil hovers near a seven year low and iron ore prices are staying below $40 a ton. >> anglo american says it will reduce it's work force by 70% in a radical overhaul that also sees the miners scrap it's dividend sending shares to record lows. >> up roar over comments from donald trump. theep