Transcripts For CNBC Street Signs 20170403 : vimarsana.com

CNBC Street Signs April 3, 2017

Clapping our hands at. They havent made the best of their economy. If you look at the unemployment in the region, its 40 under the age of 40. Marine le penn called it and a party of hatred. And corporate needing to account for it an after internal audit mixtures lower in madrid. Good morning, everybody. And welcome. Glad that youre joining us on street signs this morning. Weve got an hour together here at the top of the show, kicking off fresh starts, a quarter incidentally as well. Were looking at the eurozone manufacturing pmi data. Just glancing at the march final manufacturing pmi 56. 2 which is in line with what the flash estimate was, in february, and the highest since april of 2011. So, were looking at essentially the march manufacturing pmi delivery times index. 40. 9, the lowest since may of 2011. Factories apparently struggling a bit stay triing to meet the demand. The euro unmoved 106. In a bit rebounding a tad over the course of the last couple hours in the twoweek low that we hit at the end of last week, showing us data of the eurozone inflation also slowing by a tad more than anticipated. Economic european markets suddenly mixed. The xetra dax slight gains there, the fe se med, the cap 40 and ftse 100 flat markets. And weve got retail media and banks, but as you can see, most sectors training in positive territories. And tech and resources with gains. And right around a threeweek high zone. Theres a sense that opec will be extending its production consults and well be talking about whats going on in the ohio markets and what we anticipate. And now getting involved, send your questions and comments through, you can findous streetsigns cnbc. Streetsignseurope cnbc. Com. We can talk about the performances weve seen. Basilis papalano. Thanks for joining us. The various markets over the course of q1. 12. 5 gain in the First Quarter for asia. Extra gain which is the broadest for measures globally. Is this going to continue the money thats flowing in for the markets . We have an asset First Quarter. With europe, the markets closed at a 50week high. Weve seen Strong Performance across the board in u. S. , european and asia. Theres a reason for that, we have different fundamentals. Last week, we had this minor pullback. But i think that we expect Going Forward that trend to continue in the back of this strong Macro Economic data. So were treading on macro again, the core of whats driving us . Macro has always been for us at least the main point of preference. Variations are in line. Were not seeing excessive valuations. The macro, our playbook is that we are currently in a strong gdp environment. Health inflation, rising yields and that should support equity markets. Obviously, we have our favorites. What are your favorites . Currently, we refer to the european markets, European Equity, euro stocks or in general, the correspond indices, we have the ingredients that we like, germany, france, spain, ita italy, looks good. What we actually like with this incoming Political Uncertainty there will be more buying opportunity. Obviously on a sector level, we favor Different Things but overall, i think that the equity, European Equity space, offers valuable opportunity. So, you dont see the political push towards the farther right . You dont see that as unhinging the overall fundamentals in europe . Were not going to take a step back because of this move towards populous flight . I guess the ecb running the show. I guess the ecb is no longer runle show, were talking individual governments, i suppose . Youre right. Populism has risen. With the hawkish buyers, but i think that in april, we will see some volatility ahead of potential elections and that could be an opportunity. Now, obviously, weve been wrong in previous instances, but i think in this case, we feel confident that, you know, the center or the conservative lets say bloc will win. And that far, we should expect a decent rally in european equities. Do you think that we run the risk that brexit could unhinge europe . Not so much unhinge the uk, thats one story, actually unhinge europe, well have to go through pain and pain again because we dont have enough time to negotiate brexit trade negotiations . Or well see other countries testing a similar scenario as brexit across the yard . I dont think brexit poses a major threat. More of a headline risk because nothing will happen. No major decision will be made. Both sides will remain stronger on the views, but there will be no major developments. So the comborpts thing is what happens in the underlying economy. Versus the uk versus europe, i think that currently the eurozone looks stronger. And we have just seen the first cracks in the weaker economy. In the weaker retail sales and the weakening pound by the consumer. So, on the base of that, and the actual Macro Economical front, thats why we think that it offers a more interesting opportunity. Were seeing france, germany, italy, spain, all buying opportunities . Yeah, i mean, these are the main players in the eurozone. When it comes to sectors, investors should focus on sectors to have progrowth, sectors correlated with gdp growth. With rising yield, with health inflation, and these are the sectors that obviously the financials, these are the sectors that have these. Theres seven vowels in your last name, do you know that . Making my job difficult. Seven. Its a very common greek name. Thank you. I feel a little more stupid now. Thank you. Chief Investment Officer from dolfin, we can always practice. Banco has discovered the need for audit of previous accounts. Reflected in the first half of the year so that approximate 5 . Do keep in mind how much its worth. Credit swooiss can hoping to protect its application. Taking out numerous advertisements over the weekend saying it only wishes to conduct business of people who pay their taxes. Also reaffirmed their commitment to work closely with authorities in all cases. Tesla has delivered a Record Number of cars during the First Quarter of 2017. Delivery is jumping by 69 to 25,000 vehicles now. Also marking the shopping on delays seen in previous quarters. Says were led by the model s sedan with 13,000 sold there. Wild the model x contributed more than 11,000. And the Imagination Tech shares, after apple announced they would quit using graph in its products. Seen up by 67 at the motel on the session. And the First Quarter of 2017 saw record highs for all major u. S. Indices but ended the month on the flat note. The dow and s p both extending their quarterly win streak to six. But in the red for march. We have the full breakdown. The First Quarter is in the books and its been a solid one overall with the s p up about 5 . But the bigger story is money continuing to flow into stocks. Ets has recorded their biggest quarter ever. Investors wanted stocks and wanted it for more over the world. More than half of the inflows were in u. S. Stocks but International Funds also had strong flows as well. The big winners were plain vanilla index funds like the s p or spire which we talk about every day. But we also saw significant inflows into the merging markets etfs. There werent a lot of losers but highyield etfs about 5 of its assets under management. Whats going on . Its pretty simple. Its all about confidence. Number one, Consumer Confidence is at the highest level since 2000. Some skeptics have been saying harder number have not seen the jumps like consumers have seen. Confidence in the economy. Number 2, confidence in earning. First quarter earning are tracking up roughly 10 . It would be the best showing in nearly six years. Number three, finally, confidence in the trump agenda. Lower taxes infrastructure spending. The rest of the year would be about the tension among those three factors. The big issue is can the flows and confidence continue. Its pretty clear theyre connected. The trump agenda definitely influences fund flows and center attempt. For example, the third week in march saw the first negative week in flows since the election. That was the week the house failed on its Obamacare Repeal bill. Streetsignseurope cnbc. Com. You can also find us at twitter louisabojesen. Heading into break, british babies apparently cry more than any other baby in the world. New research to be published in the journal of pediatrics found newborns in the uk they apparently have the highest levels of colic. Thats crying for at least three weeks. Babies in denmark, germany and japan have the lowest crying levels. Has your baby cried a lot . No, not at all. A very good baby. Listen, weve got much more coming up on the show. New finance minister, old problems well be heading out to johannesburg to find out what comes next in the south africa saga. And louisabojesen twitter. Or cnbc. Com. The new Trump Administration has made it clear its pursuing an America First policy. We have an obligation to the european citizen. It is about competition and europe is open for business. So, the people who are so youre having a party . How nice. Ill be right there. And the butchery begins. What am i gonna wear . This party is super fancy. Lets go. Im ready. Are you my uber . [ horn honks ] [ tires screech ] hold on. [ upbeat music ] the biggest week in tv is back. [ doorbell rings ] whos that . Show me watchathon. Xfinity watchathon week now until april 9. Get unlimited access to all of netflix and more, free with xfinity on demand. Hi, everybody, welcome back to street signs. Im louisa bojesen. Snyder electric has made an agreement to sell its data business. Around 900 million. The Company Hopes to close the deal in the second quarter. It says it will be using the proceeds to launch a 1 billion Share Buyback plan. Reckitt bencker isser. The deal includes mustard brands and franks red hot sauces. The takeover of baby food makers johnson immediate. And it could bring in as much as 2. 4 billion pounds. Virgin money is prepared to make a bid for the cooperative report. The cooperative had put itself up for sale back in february. The potential buyers have until tomorrow to post the initial bids. The losses marking the fifth Consecutive Year of losses. Moreno has claimed victory in ecuadors president ial vote securing the reelection. With the results to be confirmed, moreno has a narrow twopoint lead over the challenger who has asked for a recount. The result is set to be met with relief by Julian Assange set to remove the wikileaks founder if he won the runoff. Jacob zuma is facing pressure to resign. The speaker of the Parliament Said shell be considering a request to hold a request of no confidence. It comes as a controversial late night Cabinet Reshuffle seen last week in the zuma case last week. Joining us live once again from johannesburg with the latest. Good to see you. Weve got nine cabinet ministers having been fired. And mr. Zuma now facing a lot of pressure to resign. Absolutely, louisa. And ten new ministers and ten new Deputy Ministers having been sworn in thursday evening in this aggressive cabinetry shuffle thats taken the international and local completely at surprise. Coming in at local trade were seeing pressure coming on that. I think the key question here is uniquely south africa new finance minister is incredibly important to understand the depth of his experience. Nobody is questioning the fact that he does have 14 years of experience in cabinets. But they are questioning his financial acumen. He has a b. A. In education and a masters in social policy. Theyre also saying and asking the question as to whether treasury is now in a safe pair of hands or has president zuma now got free rein of the countrys purse. And could that be under the guise of what is termed radical Economic Transformation. Here is south africas new finance minister unpacking this term radical Economic Transformation, this having happened on saturday over the weekend. The initial Economic Transformation arises from a skepticism that for quite a long time, the stretch of the South African economy has not been changed. Weve got paid sufficient attention to the economy to industrialize the economy, to ensuring that we can aid and. Over into european programming, we heard the Euro International saying that his interpretation of radical Economic Transformation is the aggressive redistribution of land, but he wasnt quite clear on this term. I think this is potentially what is going to spook markets. We saw international immediately needing to downgrade south africas growth from 1. 1 this year to just 0. 2 . This means that all. Hard work that the South African finance minister and his deputy have done over the last 15 months, in putting the country back on to, quote, growth trajectory. And staving off the retro downgrade may be very quickly undone. We are seeing protests fast and furious coming through, labor, business, government, civil organizations, academia coming to the fore. And friday, april 7th has been touted as dday. All citizens and all organizations, Business People alike are being asked to take to the streets and protest what people are terming a travesty. Its really important to note that the finance minister, the new finance minister, took it upon himself to meet urgently, he deemed the conversations to have gone well. They were robust and cordial. However, fitch has put out a statement saying that south africas southern could be reviewed as a result of the engagement. Thank you very much. A lot going on then. Emerging markets management. Joining us in the studio, simon, good to have you with us. Why do you think weve seen such a large reaction in various Asset Classes . Im also looking at the yen extending losses again. Very volatile trade after more than 1. 5 now . Well, thats word radical essentially. And south africa does need a radical change because she sought policy play in the last five or six years. So theyve hl the opportunity to promote growth and reincome distribution. Thats why you need this radical change. What do you think happens next . Do we still believe in investing in south africa after this . I think investors are going to be very cautious. A fundamentally cautious story. Weve definitely been cautious looking ahead. This week, as you mentioned, the possibility of no confidence vote. If all opposition m. S were to vote against president zuma they would need only 50 mps from the 149. Thats not very much, with the ki kissism that weve seen. Are we going to be able to keep an investment like this . Frank list, i dont think so, agents have been waiting on to see if something positive comes out. Radical change in the finance minister is not a positive thing. Markets very much believed in the finance minister. Mo moodys could see a downgrade but s p on the 2nd of june is the most important one. Imagine markets in general, were looking at the portfolio inflows into the merging market. Thats one reason for the 26month highs. And high yields over the course of q1. A lot of this is down to the less aggressive stance that we now feel is the fed, i guess. Do you think well continue to see a very strong q2 for emerging markets . I think we are going to continue to see portfolio inflows towards the emerging markets. The main reason people need diversification. The second reason is, you have as weve seen from before, risks increasing. The development risks. So the spread that were looking at is not only from the top down because of dm but that spread is going to diminish because dm risk is decreasing as well. This is something thats been driving for the last ten years. Do you have a preferred emerging market . Well, were focusing as you mentioned the higher yields. Argentina, for example, anywhere theres a change keeping a look at the negatives from the last few years. Ukraine, to a certain extent, gives a decent spread very much politically given but those are the things were focusing on. And you say it works to stop a baby crying is put it on the washing machine . Yes. Its the noise. Not in the washing machine. Near, on. We had a story about how british babies apparently cry more than other babies. Yes. But you said that worked for your kids . Well, the washing machine seemed to calm them down. It is the noise. At one point under the exhaust fan in the kitchen. They quite like that oh, my goodness. I think putting them on your chest is the best thing to calm them. Simon, thank you very much. Thank you. Market strategist at Regal Investments management. Were steel taking your questions and comments you can find us louisabojesen on twitter. Check out World Markets live. Its a blog that runs throughout the entire day. Theres lots of good stuff on there. Well be talking about the French Election and stocks and crude oil, all of that coming up. Good morning, everybody, welcome back. Youre still watching street signs. Im louisa bojesen. Your headlines this morning, President Trump says the u. S. Will take on north korea with or without china increasing pressure on president xi jinping ahead of his meeting in florida this week. Rock solid support. Downing street said that Prime Minister theresa may is steadfastly committed to g gibralt gibraltar. The Economic Situation from spain is not something that were going to be clapping our hands at. They have been made the belt of their economy, if you look at unemployment in the region around us, its 50 for people under the age of 40. Marine le penn tell the euro, the knife

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