Electric terminates a 3. 3 billion deal costing them 175 million in break fees. Big day for french local elections as the front nationale wins after a reaction to the paris attack. Translator the people expressed themselves and with the people we raise our head. There is an uneasy calm in Financial Markets. Thats the warning from the bank of International Settlements which says the fed rate hike could trigger rate hikes in emerging markets. Good monday morning. Im susan li. Also coming up on the program today, nothing ventured, nothing gained. Well be hearing from legendary tech investor sir Michael Moore on whats taking place right here in london. Also, political sweeping changes in venezuela. We assess the implications of a new government after two decades with president meduro in power. And can climate talks in paris propel us towards a greener future. The ceo of vesta speaks to us later on in the program. Welcome to the show. So we got a recovery in markets late on friday after the jobs number and also some sentiment from mario draghi which of clours slightly unwound that uncertainty from the Ecb Press Conference on thursday. Asian shares coming off those gains on friday to open positively today. Thats carried through to european trade as you can see. Everything in the green today. Continental europe up very nicely indeed. France and germany up around 1. 5 . The ftse up po. 6 . Surprising to get some reaction to the up side today. Now r lets now focus in on electrolux because shares are trading lower you can see to the tune of 12. 4 after General Electric terminated its agreement to sell the appliances business to the swedish firm. Ee electrolux says it scrapped the 3. 3 billion deal but its the u. S. Department of justice thats been investigating the proposed sales since july and has rejected it made to gain approval. Electrolux will pay ge a breakout fee of 175 million with the Swedish Company earning Fourth Quarter earnings will be impacted. Susan and carol, shares up 32 in line with the 12. 25 decline. Still today is the worst day in years after ge called out that deal. More than 2. 2 billion shares have been there. Thats according to some stats that im seeing on Thompson Reuters here. Also, monday slump wiping off the year to date gains in shares on track for a fiveday losing streak of 6. 3 year to date. The problem is why did electrolux want to buy this appliances business from ge . Because they wanted a greater footprint in the u. S. , because they wanted less exposure to europe where growth is obviously somewhat slower than it is in the u. S. So what happens now, now that they dont have this exposure . Morgan stanley on the wires that this deal termination removes this opportunity for electrolux to strengthen its position in the u. S. And to meaning fll enhance its earnings profile. Yeah, not good news. I think its on anticompetitive bases. Do you cook at all, will . Occasionally. So if electrolux actually bought out the ge appliance business, they would be selling two out of every three ranges sold in the United States. You know, for those who want to own their kitchen, do they only want electrolux appliances . I think people care about the brand, though im not an expert on purchasing kitchen wear. Tell us more. It all comes down to prices. Does it see a boost in prices . Interesting to read the writeup saying that the Competition Commission is expecting Consumer Prices to rise 5 . Im not quite sure how they come to those figures. Yes, it would have given a big u. S. Market share. When the story broke weeks ago people seemed to think it was going to get approval. This turns out as a negative surprise and lots of costs attached for electrolux with breakup fees and the like. You have to wonder what it means for cross border mergers whether theyre going to come in and discover any deal that would be perceived as having more Pricing Power for some of the rivals there. Is that avenue still open for many of the europeans who want to get into the u. S. Market but then are considered at risk of controlling it . Ge says its still up for sale, their appliance business. Theyre looking for a sale still, obviously a buyer. Do you think a european buyer would come back in . Because the d. O. J. Would skufr that again . Does it have to be a european buyer . Why cant it be a chinese buyer or someone else. Theyll wait for a suitable buyer. The u. S. President barack obama in the Rare Oval Office address, only the third in his term. He vows that the u. S. Will overcome a new phase of terrorism. On sunday night the president says that its clear that the two shooters who killed 14 people in california last week were radicalized but theres no evidence that they were directed by a terror group overseas. He says the u. S. Muslim Community Needs to be a partner in the fight against extremism, that the west is not in a fight against islam. Our success wont depend on tough talk norah ban doning our values or giving in to fear. Thats what groups like isol are hoping for. Instead, we will prevail by being strong and smart, resilient and relentless, and by drawing upon every aspect of american power. President obama also calling on congress to make it harder for mass shooters to buy guns. He says the u. S. And allies are stepping up the fight against isis working to cut off the groups financing. The president also urging Silicon Valley, by the way, to address a threat of militants using social media sites to plan and promote future violence. Meantime, British Security services are treating a stabbing incident as a terror attack. Two people were injured after a knife wielding man attacked and threatened a number of onlookers. Witnesses reported hearing the alleged assailant cry out, this is for syria. The attack occurred days after the u. K. Commenced airstrikes against isis in sir yeah local police armed with tasers subdued the attacker who has since been named as 29yearold mohayden meyer. The head of googles Venture Capital arm says Tech Startups are waiting too long to go public. He tells the Financial Times some may roux their decisions to push for higher valuations than doing a hyper ipo. Bill says theyre setting the bar too high and many will be able to raise more cash or be forced to accept low valuations. Lets get out to nancy at tech crunch disrupt. Nancy. Reporter thanks for that, wilford. So much of that at the conference at disrupt is how to emulate the success models in Silicon Valley. My next is the chair of sequoia capitol. Youve been in this industry for quite some time. You tally public valuation over 1 trillion. I want to get your thoughts on whether tech is facing a bubble environment. From where you sit in Silicon Valley that the appetite is waning . These things come in cycles. In the last 15 years or so about 2. 1 trillion has been developed by companies that didnt exist in 2000. A lot of companies will fall by the way side, the next 10 or 15 years over that period should be pretty good. So our appetite for young startups is energetic as its always been. But you still said as you mentioned some of these companies will fall by the way side. Specifically, do you have any names that should be on the watch list . Im not going to do that to anybody. I think its way better to look at some of the really distinctive companies in todays era that will be wonderful, enduring companies, Companies Like uber or air bnb. Im much more interested in looking at the future. Looking in terms of future, another area of concern is the disconnect between the private valuations and what companies can achieve at the public level. Is it fair to say that the ipo is the new down ground . Thats a nice way of putting it. Like everything, its not a universal truth but the public and private markets have a way of adjusting and over time theyll come into equilibrium. Some private companies obviously in their private valuations have been priced above where todays public investors are prepared to price them. Is it fair to say that some of these conditions will compete for safety in the private world . Itll be both. Itll be whatever makes most sense for them. The companies that are profitable and or will very soon be profitable and poised to go public i would imagine will try and become Public Companies and those that still have got to shape their business and show that they have a sound and durable business will stay private. And one of these companies widely speculated on to be on that public trajectory is air bnb. You have been an early investor in air bnb. Now over 25 billion, there is still some risk to this company, primarily being the regulatory risk. At the moment theyre still facing some push back from new york city regulators. Do you think theyre properly discounting them . Well, sequoia, as you mentioned, was the first major investor in air bnb. Its a wonderfully positioned company. They published a report last week showing that its only a handful of abusers in new york city and its a company thats been passively embraced by both sides of their equation, the hosts who are opening up their homes to people and consumers who just love the air bnb experience. So its a very Major Company in the making. Talking about some of the other companies youve experienced in your time in Silicon Valley, youve now written a book called meeting with sir alexander ferguson. If there was just one, who would you say is the most outstanding leader youve worked with . Im not going to answer the just one question, but the remarkable thing about talking to sir alex and looking at the leaders of the really distinctive Silicon Valley companies is even though theyre a world apart, all traffic matches from the united to Silicon Valley and technology. The distinctive hallmarks of the great leader are the same whether youre in coopertino or Mountain View or manchester. Bearing that in mind, you also were an early investor in the 90s in yahoo . Yahoo arguably one of the companies in focus when it comes to leadership. Is it time for Marissa Meyer to go . Well, again, youre right, we were the very first investor. There were only three people in the company when we invested in it. I havent been on the board of directors of yahoo for a good, long time, and thats a decision the boards going to make, not pundants like you and me in this particular case. When it becomes such a Public Discourse here about the question of leadership, is it fair to say that it is the interesting thing is its the same sort of speculation you get about Companies Companies in Silicon Valley as you do about the managers of some of the premier League Football clubs who have had a few losing games here in england. And Marissa Meyer, of course, just one of many successful women who have risen to the top ranks of Silicon Valley. Youve been caught up in a very emotional debate about the role of women in tech and youve argued, in your defense, that its more of a supply issue than demand. Were talking about the lack of qualified women. Whats the solution . Youre exactly right. There is a there is a there is a big supply problem and its a problem that the Venture Business has. The whole world of technology has. Both would be a lot better off if there were more women in it. All right. Let me get a question in from the studio from susan. Sir michael, its susan here in the studio. I want to broaden the discussion to talk internationally because youve found a real winner in nushun in sequoia capital, inbe vesting in j. D. Com, sir michael, with this ongoing slowdown people think it will be hard to exit some of these names in china. China, as youve pointed out, has been a great place to be there. Weve operated there for the last 13 or 14 years, and im delighted that we made that decision because one of the things that you didnt mention is that there are going to be more and more connections between u. S. Technology companies and Chinese Companies with Companies Like air bnb, linkedin and others going to china. And the same thing is going to be true in china as in the u. S. If the businesses are really sound, there will be no issue having, you know, what youre calling exits. And, sir michael, if i could just follow up on that one. Looking at the flow of sequoia, really questioning it for china and other Venture Capital firms, what would it take for sequoia to build up its presence in london . Europe is much better positioned than it was 15 years ago. We have now several investments in europe in pretty Interesting Companies in connor, metta switch here in london, and its all a question, we can only do so much so the more business that develops in europe, the more well be. Do you see opening an office here in london . Well have to wait and see. Thats for sounder, more balanced minds. The people running sequoia day to day, thats for them to make up they need to make up their minds on that. Thank you. There you have it, that is sir michael morris, chairman of sequoia capital. He was highlighting one of the Success Stories in the startup is clarna reaching the unicorn status. Well be speaking to the ceo of clarna. Well also speak to the ceo of snap fashion. Nancy, thanks very much for that. You can head to the tech transformer special report page. Thats on the website from all of the coverage from disrupt london and, indeed, plenty more from the world of tech. Cnbc. Com. Still to come, french voters go to the polls for the First Time Since last months deadly attacks in paris. Well bring you the results after a short break. There is an uneasy calm in Financial Markets according to the bank of International Settlements, the b. I. S. The agency saying that investors are very sensitive to the actions of the worlds major Central Banks and warns that a tightening cycle by the Federal Reserve could reverse the Current Situation and possibly expose vulnerabilities in emerging markets. This is dollar denominated debt rose to nearly 10 trillion in the Second Quarter which they say could trigger panic when it comes to e. M. Borrowers. The Ecb Governing Council intended to disrupt markets with its policy decision last week. According to a righters decision last week they felt that mario draghi raised the expectations too high coming into the meeting. The sixmonth extension to the qe program were therefore the best the ecb president could find consensus for. Julia raised that point when she spoke to the ecb Vice President last friday. However, he denied the governing council raised the expectations too much going into the meeting. One can never tell beforehand. Its very difficult to calibrate and fine tune that. What i can tell you is that what we decided yesterday was exactly what the board proposed to the governing council. So there was no change in what we proposed to the council. So we did what we intended to do. Now we have to recognize that the markets got it wrong in forming their expectations, they did, indeed, add Higher Expectations that were there and thats why they reacted like they reacted. But that was not our intention. After our meeting in october we said that we would reassess the degree of accommodation. So we were talking about a recalibration of our measures. We were not talking about ever about new type of qe 2 or Something Like that. Thats not what we were talking about. Frances nationale has swept the voting. Theyre expected to win about 30 of the vote. Lets get reaction to that from stefan. Hes live in paris. Stefan. Reporter good morning, wilford. Theyve been gaining gradually some support over the last five years with its antiimmigration and antieurope policies. It obviously benefitted from the recent effects in paris with an increasing number of french people asking for more security and the hard line on immigration. Speaking right after the election yesterday evening they claim that the Political Party was the only one able to defend the values of the french republic. Translator the National Front is the only real National Front because it is the only one to defend the national agency. Its the only one able to reconquer the lost territories. In clay we have retained 50 of the votes in the suburbs and it will honor the lost territories in the countryside. It, the National Front, is the only party to defend an authentic french republic, a republic with only one vocation, the national interest, the development of french employment, the conservation of our way of life, the development of our tradition and the defense of all the french, especially the most vulnerable. And the second round of voting will take place at the end of this week. The front nationale is in position to take control of six regions out of 13 in france. It has never cont