tv Street Signs CNBC February 29, 2016 4:00am-5:01am EST
♪ hi, everybody. good morning. it's monday, welcome, you're watching "street signs." i'm louisa bojesen. the headlines this morning, european shares following china into the red with markets on course now for the third straight month of loss us. can warren buffett, though, possibly lift the mood? he's on "squawk box" later on. morris' gain. and tesco shares sinking as the british supermarket tries to
distance itself from an elite market planning to ax 39,000 jobs over the next three years. and banks, bernstein slashes its target for hsbc sending both of those stocks into the red. good morning, everybody. really glad that you're with us today. it's always good to have your company, heading into a fresh start of the week. european markets are under a bit of water. down by a percentage point or so. we saw asia trading slightly to the downside. the nikkei initially seeing early gains, erasing some of those initial gains to close in lower territory. stocks up 600. down approximately a percentage point we're just flashing for you that the german ten-year yield is now at a ten-month low.
the main european equities, bosses, i should say, are also seeing quite a bit of red out there. you're looking at the ftse, the dax, cac, athens all trading in negative territory. and no coordinated action. some writeups this morning saying, well, the markets have been anticipating that. i don't think so. i don't think so. there had been this rumor. indeed they did talk about coordinated action. nothing was talked about. we were just aushing about the arabian markets sri's in asia. >> the focus of the selling is by mainland china. we were worse in the session, down by almost 4%. so, we we bounced off the box
and still negative at the close. i think there was a fair degree of disappointment that d-20 didn't really come up. with anything concrete in terms of solution or to really draw a line under these global growth concerns but then again, g-20 is such a fractious forum could we really expect anything concrete at the end of the day, apart from rhetoric. as monty python said, aside from the bleeding opposite, of course we do. as the appreciation pressure is still on the chinese currency then you have the housing market which is looking a little bit hotter now so there's a sense it's going to bleed or siphon some funds away from the stock market as the ipo activity in that part did last year. nikkei 225 under some pressure as well. i think the focus is going to come back to china over the
course of the week. remember on tuesday, we get the surveys both from the the private forecaster and the official number from the national bureau of statistics. then on thursday, we get the national people's congress kicking off as well. this is the main policymaking platform. and it really say forum for longer term economic planning and management. we'll get a sense on the former mention there and what the leadership has in mind for the future. so that's going to be a testament for the market. right now, underlying sentiments still fragile. and with regard to fed policy and price of oil, some pockets of strength here, but not a lot, just margin at gains. back to you, louisa. >> we're always held hostage, around we. waiting for something. i'm not sure anything ever happens. >> quite right. >> very cultured. >> very what? >> you're very cultured.
>> one can try. sri jegarajah joining us live from zyngsin singapore. amazon is making a deal with morris. speaking of supermarkets, tesco, the supermarket chain is downplaying reports that it's planning to cut 39,000 jobs over the next three years. the retailer confirmed the validity but the spokesperson said that the company is planning for a variety of different staffing scenarios. bernstein has cut its price target on hsbc and standard charter sending shares in both of those banks in the red as seen on the screen by 3%. james butterfield is first guest of the week here on
"street signs." he's executive director and head of research and investment strategy at etf securities. good morning. >> good morning. >> we're coming to an end here. >> yes. >> for the month, gold is higher by.10%, is this going to continue to strengthen? >> the big divide has been gold or gold miners, and we favor gold. saying that, we think the gold price is properly fairly valued at the moment. what really drives gold? supply doesn't nor volatility. what we find drives gold price is inverse relationship with the u.s. dollar, obviously. inflation. and we've seen inflation beat expectations. and we've seen the u.s. dollar be fairly weak.
that supported gold. and that fears of a brexit and the candidate and the united states election. >> the candidate being trump? >> or sanders as well can be construed as a french candidate. and what we see is if that could increase with gold if a french was elected in the united states or a brexit. perhaps a 15% upside. >> you say that you've seen $1.23 billion worth of inflows of gold dollars to date. is that a lot? what would be the average be? >> that is substantial, yeah. on monday, two or three weeks ago, we saw $350 million inflow in one day, and that's the largest since january 2009. so, we're not saying is this a credit crisis, by any means.
but certainly some investors see it that way. but we're seeing a huge divergence in sentiment between investors. whilst the theme is very large and pleasant to gold, it's very large to oil. we've seen inflows to oil. clearly there are diverting opinions out there. one is update and one is cyclicly downbeat. >> i was looking at the u.s. data on friday. a whole batch of data. all better than anticipated. we saw the spending data being stronger. inflation picking up. fourth quarter gdp, looking at 1% on annual basis. so fed hike is now back on the agenda when you look at futures. >> yeah, i think the probability is still very large. i think it was almost 10% for
one rate hike this year. i think the market is going to start changing beyond this week saying it's likely there will be three rate hikes. one of the big pressures is wages and wage increases. we're seeing quite strong wage competition. wage increases or trying to find skilled labor particularly in the construction sector. so, it's probable -- the probabilities might increase. >> even if we were looking at more stimulus from europe, do you think they'd act completely independently? they're supposed to but in real life maybe more coordinated. >> certainly, janet yellen has alluded to that fact. the first thing she talked about
was the labor market. >> james, awfully nice for you to come in and visit. james butterfill, executive director and head of research and strategy at etf security. congratulations on baby number three. 2 months old, right? >> thank you, yes. >> you're tired? >> yes. >> that's what we get, right? you get to be tired. listen get in touch e-mail the show, address "street signs" firstname.lastname@example.org. write it down if you want to get to the guest or topics. you can find us on twitter,@louisa bojesen. we're also @street signs and facebook as well. coming up, india's prime minister unveiled his budget
with new aid. but is this budget more political and less of a boost for business? we'll be talking more about what was taking place there. plus, also, it took him six attempts but he got, leonardo dicaprio finally winning an oscar. and cruz accusing trump in havie ing connections in a last-ditch effort to the elections. good morning, everybody.
it's expecting ongoing challenges from the regulatory environment. it didn't propose any dividend for 2015. bunzl boasting a rise despite markets in latin america and australia. the global distribution company also raised its dividend from 3.8 per share. earlier we talked to the ceo and asked him brexit could impact it. >> we don't think brexit has any impact at all on bunzl. there isn't a whole lot of cross-border flow of products. >> weak science a good thing, right? >> weakness, if you're looking at the overall results you're exactly right. if you look at 2016, you take the spot rate where is we are
today, it will have a positive impact for bunzl. now, brexit would lead to a decade of uncertainty. that's the exclude of the uk civil servants which warns of potential impact on markets, investment and the pound. this weekend, uk prime minister david cameron challenged the outcome after europe leaving. writing in the telegraph, he called it, quote, gamble of the century. now, the lead campaign can ahead two more to their roster because terry smith and edmund poole are backing it. hi, everybody. i was just going to read your mails out there.
yes, yellow is the color of the day today. i feel like a canary i guess there are worse things to feel like. g-20 potential bankers have added brexit to the list. the europe mean commissioner wa asked. >> now it's up to the voters to decide, they will decide on the basis of campaign. we truly believe that the place of the united kingdom is at the core of united europe. >> bank of england mark kearney was warning against the dangers of negative interest rate policy. when do you feel that it's effective and when do you feel that it's dangerous? >> money is, of course, at high importance, and that is taken recently once a year where freely appropriate. and that's the case with the
ecb. mr. draghi shows a great determination to cope with the challenges that we have to face together. and we need to show trust. and money which are appropriate but as central bank has said we need to have reforms. we need fiscal appropriate base. >> why do you feel so strongly about structural assurance? >> because we see the capacity to raise productivity in global productivity, factors to be in an open world is decisive. for that, we need structure reforms. and at the same time, for all countries, because we -- over the g-20 face different kind of imbalances as well. fiscally and on structures. but we need to reform our structures each through our own
mechanism and our own problem. >> part of the problem seems to be on greater fiscal stimulus. at the same time, the german prime minister has already expressed his tolerance for a great fiscal spending. what do you think policymakers should be doing right now? >> in spite of fiscal problems are concerned we are not in the same situation. some countries, you look at europe, some suffer from that and the base which is not the threat for domestic growth. other countries have room to maneuver. and they are asked to move towards more investment. and this is precisely what germany is starting to do. and we also have to get together with the refugee crisis which we need in europe for further
expenditures. i know this is a very emotional crisis, and it is a political change of high importance. but if you look at the economics and just at the economics, i'm persuaded that this can be capable of driving 0.2 to 0.3% growth. >> that was mr. moscovici speaking to cnbc. now, elections in ireland this past weekend mean that the ruling coalition government is unlikely to return to office. looking at some of the bigger irish companies listed here in london they're all slightly lower. but again all of the european are trading in lower. irish failed to win an election. now steve is in dublin, what
happened, steve? because voters abandoned them after a century of support and now they're back? >> reporter: yeah, they are back, but not in enough numbers to give them the chance to create a government on their own. very difficult position for martin now, does he try to persuade his party to go along the route? do they support minority government? or do they just refuse to work and maybe work towards another election a little bit farther down the road? lots of big questions. a lot of political turmoil. one response i'm getting from business people, this isn't going to do well. and the biggest recruiter in ireland as well. i mean, your reaction, first of all, to the seismic political events that we've been seeing
over the last couple days? >> well, i suppose the results of the election haven't been entirely unexpected. fianna with that expectation. i think there are a number of options i would say is in ireland, now because of the history in the last 20 years, i think they're used to coalition. so, i think the pressure will be on the various parties to try to put something pretty stable together. >> you mentioned history and you're not a politician, and i apologize for the question in advance as well, historically, it's going to be tough for these two bridge the gap because of events in longer term history? >> that's true, it doesn't seem possible today after a couple of weeks it can seem possible. i think it's all up for play.
i think the next couple weeks will be very important. >> do you think we'll get another election, though? because you talked about that stability, hard to make a mark to go into coalition with it as well. it could lead to a few problems, couldn't it? >> well, it could lead to some. but i think there are some underlying positive factors in the irish economy. we are a small, open economy, and we do look to what's happened in the rest of the world. it has been from the lower interest rates and prices. and it doesn't look like interest rates are going to go up anytime soon. so some of the underlying external factors help the irish economy. >> and yet that could solve other problems for the irish economy. you've got low interest rates but the fact of the matter is you've got an economy growing at 6.5% last year, 4.5% this year.
that's wrong for an economy, isn't it? >> i think we're in a different world, from an employment perspective. what's very encouraging is that the reduction in unemployment and growth in employee numbers has been across a very broad number of sector, 12 or 13 sectors. whereas in the past, the growth and unemployment was very much in the construction sector. >> let's talk about employment. we talked about it on camera about the irish people who go out and come back. but the young irish people aren't coming back, are they? >> well, actually, they're running a program to try to track young people to come back. young people will go abroad and get some experience and some will come back. not all come back. one thing we're hearing about coming back, it's really about family. it's about coming home here to
raise your kids. we would be perceived to have a very good particularly primary education, it's publicly funded and supported. that's really one of the main reasons that people come back. >> one other issue, immigration, and huge numbers coming into the eurozone as well. is that creating opportunity or problems for the likes of cpr? >> i think it's more an opportunity than a problem. obviously, it needs to be managed. what drives every economy are dynamic highly educated people. the largest growth in employment has been in the high-skilled sectors, so, i think we should welcome in people who are highly skilled and educated. >> anna, it's been a privilege to speak to you. the largest recruiter in ireland talking about politics. >> it's going to fall, as
opposed to fail, fianna fail. >> i wasn't even allowed to say doyle picked by my producer because he said i couldn't pronounce it. and the convention that fianna fail would have to convene. we're all learning here. >> or the t-shark. >> and tonista -- i'm getting all kinds here from our producer here. >> brilliant. steve, thank you very much. at the irish stations. the italian prime minister showed his trendy side by stopping in on the opening of milan's fashion week. he said he wouldn't be going every year. claudio is in milan, he kept a dapper figure, claudia? >> well, renzi's presence was
noticed more here more than the words he may not come every year, but the fact that he did come. at this event, it's the first time that an italian prime minister has participated. it's a strong message that comes to the italian economy, about 75% of the $62 billion that this sector generates is in fact exported. so very important equisector. renzi's presence was very important to many, most importantly, king george, this is what he had to say about renzi's presence. >> translator: it's really good that he did this. it was of his own initiative. a personality like renzi here today means something. in a way it lets feel protected and involved which is something that was missing in this sector. >> first of all, it was kind of a booster for all of the industry and the people involved because of his confidence in the
growth in italy is commitment to one of the sector, a second sector of the italian economy. and the commitment to support it globally to the embassy and to the different systems. it's fundamental. the second point is phased to the foreigners who can come to milan sometime, not so convinced about fashion week. it really was a very, very strong and commitment. and he's also somebody who knows the fashion system. nose the company, knows the management. is in love with the product, the way of producing, the territories, and where it is. and i think that he could have an even stronger effect if he keeps coming or staying. >> speaking of michel norsa i asked him what he thinking about the impact of the slowdown for a
brand like ferragamo which represents about 7% of the business. he did say that he expected 2016 to be similar to 2015. of course with issues like currency and inability and the slowdown in china to be issues to be watched but is confident this will be another strong year. cautious optimism was also in the words of the ceo of fendi part hgl group since 2001. this is what he had to say. >> it's an intense revolution, digital revolution, the changing area, china being really soft. and other areas coming up strongly like australia, like canada. and others coming up like nigeria. so it's a moment of change. with change there is opportunity. everybody is looking to grab opportunities all around. and for fendi, it's a very good
moment, coming out of 2015, we grew to well above 20%. and we started on the same path for 2016. and hopefully, we finish like that. >> so, a week that's about to end, and it will then move on to paris ends with giorgio armani that show about to end any moment now, started out with gucci, the new executive director showed a very renaissance-style catwalk. and dolce and gabbana, and prada, one of the big italian names that everybody was watching with wool and gold and embroidery and mixed fabrics. a lot of fur for the next winter. very much into strong colorful elements. so it was definitely a strong
week also in terms of the fashion side as much as it was the business side. remember there's 73 cat walks, 180 collections presented. 90 presentations. a very important week for milan in general that expected in 2016 for the sector to go by 2.5% versus 2015. what certainly came out this week, louisa, is that milan matters. >> absolutely. another reason milan matters as well. i go to italy, i like my cappuccino without the foam on the top, i just like it that way, if i ask for that very nicely, you can please make the cappuccino without the foam, they look at me like i'm eating a saw. and then china. with starbucks, a big change in how coffee is made. >> it is, the founder got the idea to launch starbucks in 1980
when he came to italy. quite a big day announces officially it will be opening in italy. definitely a big test for starbucks. but they're being cautious and careful. they do say they're going to have special blends for the italians. but they're going to point more to the idea this is a place between home and work you can spend some time. italy, normally, you're having coffee, you're standing up, you're moving, you're in and out. maybe that's how they'll leverage when they do add up. >> claudia, they say isn't a cappuccino a latte without the foam? >> no. >> claudia, good to see you. thank you very much. live out of milano. >> i just want to mention to you some moves that we're sneegt german tbond with lows that you
see on the screen. in fact, we've seen movement across the board. you also saw four-week highs being hit. and u.s. treasury -- on the back of the two-year treasury yield, i should say, on the back of data friday was so much better than anticipated. so we've become a little more optimistic or bullish on the fed and when they'll be hiking. >> now, back to the brexit story, ubs putting out a couple lines saying that sterling could fall to parity if a vote. to parity against the euro. they say they could reverse if they have a 40% chance of brexit. we'll be right back here at "street signs." keep your comments coming at louisa bojesen.
hi, everybody. welcome back. you're still watching "street signs." i'm louisa bojesen. it's monday. these are your monday headlines. european shares following the red with markets on course for the 30 straight month of losses. can warren buffett lift the mood? he's on "squawk box" later on. and tesco shares sinking as the british supermarket tries to distance aitself from a leaked document revealing plans to ax 39,000 jobs over the next three years. and banks are the biggest drag on the european markets as bernstein slashes its price target for hsbc and standard chartered sending both of those shares into the red.
well, let's take a look at the u.s. futures, why don't we, here on february 29th. it's leap. it's leap year. it's leap year. you've been wright in saying what are you doing on your extra day? i don't know. i don't know. i do know there are a lot of people that think that if you're a woman you can now ask the man to marry you. today is the only day out of the year that you're allowed to ask a man to marry you. if he says know and he's in denmark, he has to give you 12 pairs of gloves. remember that. if in finland and he says no, he has to give you clothe to make a skirt. and in in greece, don't get married. it's bad luck on february 29th. leap year u.s. futures are pointing slightly lower. so we're just seeing a slightly lower call for this afternoon. state side, here in europe, where we opened lower, so we're already there with the european markets off somewhere in the
region of -- well, a little bit over 1.5% when it comes to the xetra dax. in and in a move that that some bolster was made for that move. live here out of london, good to see you this morning. talk us through what the latest is out of the budget, the expected budget? >> sure. thank you very much. actually, the budget has been a bit positive and a bit mixed. again, we're not seeing any big bank reforming piece announced this is down to the fact that indian government doesn't have a majority in the upper house of
parliament. but what we have seen is that the finance minister has very much stuck to plan. he has said that he will reduce the fiscal deficit from 3.9% in the fiscal year in 2016 to 3.5% in the fiscal year ending 2017. and that clearly is something that markets will take heart from. there was some worry that might be a little easing of the fiscal conciliation targets. there's been a big push on agriculture and that this should push growth. income has taken a hit in the last five years boosting consumption really. i think the maybe question will come around, how do you really manage to provide funding for this increased expenditure. >> my colleagues on "squawk box" were speaking and saying it's important to see more capx in a
bunch of different areas. how is that pushing forward? >> clearly, there's a lot more spending announced in the terms of infrastructure coming through. clearly, that's a big positive. but, question, we do have some concerns about the fact if you are going to raise so much spending on, you know, aid and health, as well as trying to spend more on the compensation of employees, then something will have to give, if you also have to reduce the deficit. in terms of the tax revenues not much has been changed there has been some changes in sur charges but there's been no big increase in your service tax coming through. as a result, the expectation is a lot of funding for this will come through from revenue streams including something such as your divestment or this investment coming through. these are iffy for the global
environment. the field will be as you correctly talked about, that you might have to cut back on capital spending. the government has been boosting anti-spending over the last two years but the concern will be just to meet the low deficit targets they might have to push back and cut back on capital spending over the course of the year. >> i was looking at the numbers from friday that were published by the annual economic survey that was put out on indian growth, and gdp was expected to be in the range of 7 to 7.75%. still very robust growth. and yet, there are those who say that we think that growth is going to be trailing off this year. what do you think? >> well, we are looking at growth to pick up slightly from 7.4 to 7.6%. clearly the direction was one of slight improvement. and not looking for tradeoff. and the answer really lies in
maybe a change in mix in pattern of growth. we've had a boost in spending. public investment has gone up and that has helped support growth. this year, of course, the expectation is that investments will play a part, but will play a less important part in terms of consumption spending going up. you're going to see more income for public sector employees, and that should help boost growth. and also with the new packages and new agriculture packages being announced again that should boost that. and really consumption will drive the growth story, compared to the last two years where you really had investment as the primary driver. >> thank you very much. remember, you can ask a man to marry you today officially because it's leap year. >> i'm already married. >> it's no fun. just go ask somebody to marry you, see what happens. or maybe ask him again, you know, like the circle of love,
reinforce it. >> that might happen, yes. >> thank you very much. global economist of standard chartered. now, saudi arabia was speaking to u.s. businesses in a bid to secure foreign investment to plug its oil revenue gap. that's according to the financial times as the kingdom looks for way to kick-start its economy amid deep commodity slumps. concerns they've been growing over the fate of venezuela's indebted economy as the collapse in oil prices continues to take its toll. the state-run firm is grappling with payment to bond holders in 2016. the country is facing default. and oil prices, they're, quote, totally unacceptable according to nigeria's president. he called on others to think of ways to rise to the challenge fixing the problems. his comments, they come as his country's oil minister told cnbc that he expected opec to reach
an agreement on freezing oil production. and the moderate allies of iranian president hussein rouhani, they've won in the first election since the iran nuclear deal and lifting of sanctions. the result was a blow to hard-liners who failed to win a single seat having dominated for 12 years. turnout was around 60%. keep your e-mails and tweets coming through @louisabojesen r or @"street signs." and new evidence that vw knew of the device before the scandal. mathias mueller, we'll be speaking with him later.
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i'm louisa bojesen. denardo dicaprio has finally done it. he's taken home an oscar for best actor in role in "the revenant." the surprise of the night came from "spotlight" taking best picture. the rollups to this year's oscars were marred, though, by controversy over the lack of diversity and were boycotted by many black and ethic minority actors. the comedian and host chris rock didn't shy away from tackling the topic. >> is hollywood racism. you're damn right hollywood is racist. but it's not the racist that you've grown accustomed to. hollywood is sorority racist. it's like we like you rhonda, but you're not a cappa. things are going to be a little different at the oscars. this year in the inmemoriam package, it's going to be black people that were shot by the cops on their way to the movies.
yes, yes. >> nbc's jennifer bjorklund is in hollywood. chris rock not mincing his words, saying exactly what he thinks, jennifer? >> reporter: as he does, louisa. it was interesting to watch because it seemed like everybody was waiting to get offended at. and just when you thought he was going to go one direction, he'd make fun of the other side. it was quite an equal opportunity of ribbing he gave everybody on every side of the controversy. and at times, it might have been a little heavy-handed but it was always with humor and good humor. so he, yeah, he kept it threaded throughout the entire ceremony. and it was a ceremony not without surprises. the best picture going to the film "spotlight" which was "the boston globe's" investigative reporting of sex abuse by roman
catholic priests. there was no price in best actor and actress categories those went to leonardo dicaprio, finally his sixth nomination, finally won. and brie larson for "room." there was an audible gasp in the saad tomorrow when the supporting actor mark while et cetera was announced for "bridge of spies." there was talk for sylvester stallone which he did not. and supportive actress went to "the danish girl" which was pretty well expected this evening. or i should say last night. it's kind of tonight for us here in l.a. they're still packing up up hollywood boulevard and putting away the statuesques on forklifts. the glamour packed away for another year. louisa. >> you've got to love the trucks
that drive into your shot just as you're about to start, that always happens, jennifer. you mentioned "the danish girl" best supporting actress who is swedish. the big winners, revenant, spotlight, the bridge of spies, i don't remember seeing any on this list older than four months, three months. they never seem to award to movies out 12 months ago. >> reporter: i'm not hearing you well because of the jack hammering. >> yeah, it's always the newer movies that run off with the awards? >> reporter: fresh in the memories? >> yeah, exactly. >> reporter: you know, there are some strategic film release dates i suspect. i wouldn't say that outright. but i think they probably release films at certain dates
to get in on awards. because to be maybe fresh in one's mind. but they do send out so many of those for your consideration as well. and the shame of it is not all of the movies get watched by the academy voters and some really wonderful films fall by the wayside. but there were great surprises like spotlight winning that nobody expected, as everybody watched that one. >> no i saw it. i saw it. it's very well done. it seems like there's a lost research that went into actually making "spotlight." jennifer bjorklund, thank you very much. from nbc news, battling a bit of sound issues, the beeping truck information the background there. "inside out" the best animated film. and i cried over the volcano movie at the beginning. >> let's move on, confidence
running high in the clinton camp, this after the democratic front-runner won a landslide victory over bernie sanders in the south carolina primary this weekend. meanwhile hewlett-packard ceo meg whitman has called donald trump unfit to be president. and also criticized chris christie for endorsing the republican front-runner in his quest for the white house. now, the latest nbc poll puts trump ahead in the georgia and tennessee arenas, ahead of super tuesday, when 11 states head to the polls. it's ing to be a big day tomorrow. gabe gutierrez filed this report. >> reporter: today's firestorm is not over what donald trump did but what he didn't do. >> just so you understand -- >> reporter: failing to disavow david duke in this interview. >> would you just say unequivocally, you condemn them and you don't want their support? >> well, i have to look at the group. >> the ku klux klan.
>> reporter: duke has not formally endorsed the gop front-runner but he's told his radio audience that voting against donald trump at this point is treason to your heritage. after today's interview, trump tweeted he disavowed duke. he said so on friday. >> i disavow, okay. >> reporter: but just two days before super tuesday, marco rubio pouncing. >> there's no place on the conservative movement for david duke, the clku klux klan or bigotry in america. >> reporter: so is john kasich. >> i don't understand that donald trump decided to disassociate himself. >> reporter: and trump with a quote from benito mussolini. they later admitted they made up the committee. >> you want to be associated with a fascist? >> no, i want to be associated
with interesting quotes. >> maybe it shows the business dealings are a lot less important than recorded. senator cruz, let me stop you there. that's openly speculative -- do you have -- >> sure, s and a construction owned by fat tony salerno who is in jail. >> reporter: trump locking down another big endorsement, alabama senator jeff sessions. >> i am pleased to endorse donald trump for the presidency of the united states. >> let's check in on the u.s. futures again. we are still 4 1/2 hours away from the market opens state side. but we're being called a little lower across the board. here in europe, we open in negative territory and we're still seeing a little red as
well. the euro dollar, 1.09 and a bit. we're sitting around that level. we haven't seen a whole lot of movement in the euro dollar, in comparison to what we've seen elsewhere over the course of february. the yen gaining 7.6% for the month of february, the biggest gain since october 2008. and the pound of course sitting at a seven-year low. 138.41. g-20 finance ministers on the central bank are failing to meet an agreement meeting in shanghai over the weekend. they did say the effectiveness was waning but they made only wage reference to fiscal reform. >> step aside central banks governments need to move in to help boost global growth. that was the main message after the g-20 finance ministers meeting near shanghai.
the main message that central banks can't get the job done alone. as finance ministers and central bank governors wrap up their first g-20 meeting of the yee, the communique called for fiscal policy to strengthen growth, job creation and confidence. and the finance ministers agreed to use all the tools in their tool kit whether monetary or structural or fiscal to meet their goals. a plan for coordinated stimulus wasn't included. without more of that, the recovery was at risk. >> so my sense is that there was in the room a renewed sense of urgency. and a renewed sense for collective action. the. >> reporter: the u.s. and germany had voiced their concerns about any new stimulus measures ahead of the meeting. there's also dissension about using dealt and negative interest rates, as in japan's case, to drive growth. g-20 ministers also pledged in their communique to avoid from
get tiff evaluation from currencies. >> it's also not targeted for competitive purposes. >> reporter: china used the meeting to quell concerns about its ability to manage it. the governor as well as finance minister addressed national investors in speeches before the official opening of the meeting. >> translator: i'm saying that moderately loose fiscal policy might need to be continually maintained. whether everyone has known this, it's use can't actually substitute financial policy. >> reporter: the challenge in global landscape has raised policy frictions among g-20 economies in recent months. the communique also mentioned the potential risk of a brexit as well as a european crisis. now, the dulcer on the u.s.
economy are saying dead wrong. that's what warren buffett said. babies born in america today, they're the luckiest crop in history. berkshire hathaway reported a 21% in net profit tours $21 billion in a record year for the firm. also if you look at research for 13-d which i was reading over the weekend, he also said that inflation is at 100% certainty. our colleagues state side will be speaking to the oracle of omaha himself. becky quick will be live with mr. buffett for three hours. submit your questions via twitter, facebook or instagram using the #askwarren. that's it for the show. we'll see you tomorrow on another "street signs." have a lovely day. earth hour is about inspiring climate action celebrating a global movement and impact ♪
good morning. breaking overnight -- a selloff in asia. chinese shares plunging to 15-month lows. and good as gold. the precious metal is on track for its best month in four years as investors seek a safe haven. and hollywood's big night. "spotlight" wins best picture. and leo finally gets his oscar. it's monday, february 29th. "worldwide exchange" starts right now. good morning, welcome to "worldwide exchange" here on cnbc. i'm sara eisen. >> and i'm wilfred frost.