tv Worldwide Exchange CNBC November 28, 2013 4:00am-6:01am EST
hello. you're watching "worldwide exchange." i'm ross westgate. the headlines today, a new dorm for italian politics. disgraced prime minister silvio berlusconi vows to push on after being expelled from parliament. the vice president tells cnbc negative deposit rates are a possibility. >> it would be a measure that we
have taken if -- if it has to be taken with caution. >> outgoing peugeot ceo gives up $21 million euros pension after overseeing 10,000 job cuts. and it's no ordinary thanksgiving here on cnbc. i'll help prepare a turkey here in the studio. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. okay. plenty to get through today on "worldwide exchange." three hours of programming. the u.s. is closed, of course, today for thanksgiving so we have extra of the good stuff here. we kick off with just a recap of the german jobless numbers. geoff, we were talking about
this at the end of "squawk box." a slight tick down in german unemployment. 2.806 million. euro/dollar back up to 1.36, about the best level in six weeks on euro/dollar. eurozone october ends three, up 1.4% on the year, lower than the forecast plus 1.7%. that means the august to october three-month average, 1.9%. weaker than the forecast 2%. and private sector loans in october down 2.1% versus 2% in september. so for those worried about deflation, disinflation, the m3 number will be adding to those concerns. less money in circulation. ecb might be tempted to do more on the back of that. in italy, silvio berlusconi
has called for a day of mourning after lawmakers voted to ex expel the former prime minister from parliament after he was found guilty of tax fraud in august. julia is in rome. jules, is this a new dawn in italian politics? are we now in the post berlusconi area or not? >> we're in a post berlusconi area as far as his politics are concerned. does anybody think he's going quietly? absolutely not. we have senators out in mourning. they had black arm bands on. berlusconi decided not to attend his final gathering. he was out here on the streets in front of his apartment talking. he was calling it a cue de ta. i'm telling you, berlusconi had
plenty of words to say yesterday and he reiterated that he's going to remain as the forefront, the leader of the party, irrespective of whether he can be a parliament heiran or not. i think that's the key here, he has expressed his wish to continue at the forefront of politics irrespective of the vote that took place yesterday. he has kekconnections, of cours still with the current coalition, the rightist party in there. he has close connections with the extreme right here. you think if you expect him to go quietly, you've got another thing coming. remember, of course, the support that he continues to have with the people here and i think this is the key point with the people out there supporting berlusconi last night. i spoke to a couple of them. they had a banner that said you love silvio, you don't question him. another lady told me that he's an angel, a guardian angel for italy. so the key question is is he a
fallen angel? he's lost his parliamentary immunity here. so he now could be arrested, treated like a criminal for some of the cases against him. does that dent his popularity? time will tell. but this coalition needs to focus on reforms. they would like to push berlusconi aside. i'm just not sure whether they'll be able to do that. >> jules, for now, thank you. let's bring you up to speed with where we are on this global trading day without the u.s. markets. advancers outpacing decliners by a ratio around about 7 to 2, something like that. now, we saw u.s. markets closing up with fresh record highs overnight. the dow up 40 points, s&p up 20.5. this morning, it's moved higher, up just 7 points.
volumes will be lighter without the u.s., but there's all that data to get through, as well. a decline in m3. the jobless numbers, a mixed data for the eurozone. xetra dax up about 0.3% at the moment. 9,377. cac 40, 4,300 up 0.2% and the ftse mib, up 0.5%, as well. we have a bond auction coming out of italy, as well. 2.5 million they're looking to raise. we'll see what happens with yields there. now, some individual stocks worth looking at today, stock in thomas cook up 10%. the british travel firm raising its revenue to cost cutting. 1 pound 68. kingfisher, on the other hand, at the bottom of the stoxx 600, down 5.5%. numbers coming in at the low end
of expectations. asian markets, meanwhile, doing fairly well during the session. the shanghai disposit up 0.8%. the nikkei 225 up 51 mers for the japanese equity market over the year. helped today, as well, by the fact that the yen went lower again, 102.28 is where we got to just below it at the moment on the dollar/yen. that's near a six-month high for dollar/yen. we're not far away from the 4 1/2 year high we hit in may. 103.74. euro/dollar, just above 1.35. we saw an unexpected jump out of cap ex in australia. sterling/dollar, moving higher again, 1.63 now for cable.
some people saying is that the top of the range. doesn't mean it can't go higher. treasury yields, 2.73%. so we continue to see things back higher. by and large, the data out of the u.s. yesterday, jobless claims, michigan sentiment, chicago pmi, all fairly bullish for the tapering argument. the yield on the 10-year, 1.737%. spending plans outlined in their coalition agreement are realistic. yesterday, the country's two biggest parties shook hands on a deal which included additional spending. annette promised us yesterday has moved up to berlin with more details. and you've been digging, annette. yes. those are quite interesting to read because, as well, what we are hearing from him is that they are planning on loosening a
little bit of their pension provisions and getting money from the pension funds in order to finance their little presence, as well, when it comes to more pensions for certain groups of society. so it still remain toes be seen how they want to finance this. yesterday, angela merkel was as well saying all rely owes tax forecasts and we all know tax forecasts can change dramatically if, for example, the economy is deteriorating. but i'm joined now, as well, by our guest, allison smea, germany's correspondent for the "new york times." i would like to start off this interview with a question on chemistry. you were absorbing yesterday's press conference between the three new figures or at least angela merkel and the two boys. how do you think they get along? >> i think what we saw yesterday
at the news conference was quite a determined display between the social democrat leader and the bavarian conservatives with ms. merkel, protected in the middle. but it was a clearly convincing show of a trio that managed to negotiate an accord over five weeks and they wanted to convey here is our team and we can get on with governing you. >> what is your take, do you think they will vote in favor or against? are there any indications? >> i think it's absolutely impossible for anybody to say that they know what these people think. we know there are just about 475,000 members of the social democratic party. nobody has ever polled them in this way before. probably only about 10% of the party membership is really active. we've heard quite a bit from party organizations how critical
they are of going into a coalition with the conservatives. now are terms are there. the social democratic leader seems confident he can sell this to his leadership. rationally speaking, it would seem like something the social democrats could support. and even if it's only introduced in stages, it's still something they wouldn't have if they're not going into government. so if you're thinking logically, it seems to me you would accept it. >> look at the coalition agreement, are you happy to see a lot of points tackles or do you think there must be something missing looking at infrastructure or other topics? >> i think that it's totally unclear how much extra spending there will be on infrastructure, something which government commissions themselves and have identified as something that needs to be paid attention to. and we know from people involved in industry and manufacturing that the closure of certain
bridges, b which were designed to take far less traffic than they're now bearing, means all sorts of detours that they have to take which is expensive. it could definitely become a problem if it's not tackled seriously. >> and looking at that coalition, just let us work under the hypothesis that we are going to get that coalition. is that a move to the left or is that the same as we had in the last year? >> i think it's a little different, honestly, because if the social democrats are there with their proud 150 years of tradition of being active here, they're very proud of being a party that never had to change its name. gabrielle seems to be trying to deliver the message to the membership let's not forget who we were supposed to traditionally represent, the disadvantaged. let's not become part of the establishment too much to the degree that we forget who we're
really here for. so in order to make that partnership, you could say in a classic left-right thing that angela merkel has moved slightly more left. but i would say she successfully occupies the center. she is definitely shifted the christian democrats in the time since she's been party leader. so she's leaving her stamp on germany one way or another. >> the last question for angela merkel. it's not her third term. it's quite a tough job to be in that role. what do you expect her to leave as a legacy? >> i think it's a great question hanging now. what does she want to leave as a legacy? i think she firmly believes in germany's place in europe, but, obviously, within the eurozone, germany's stance is not completely without controversy. i think german officials and angela merkel genuinely believe what they say. that they want both stability and responsibility taken by countries who they have to help
in the eurozone. but definitely it's not seen that way in southern europe. so it will be very interesting to see what she does with these four years. certainly she is the world leader who's unique, i think, in having won re-election twice since the financial crisis which in itself is a big achievement. >> thank you so much. probably we're moving to the left here in germany, but at the same time, she will stick, i will say, to her austerity driven eurozone policy. so that's it from here for now. back to you. >> we'll be back with you later in berlin. thanks for that, annette. also on today's show, as america enjoys its day off and a day of eating and drinking, we'll find out how to prepare the perfect turkey here in our studio. yes, i am doning a chef's outfit. plenty to come up on that.
can china cut its casho emission by almost half in 2020? we'll discuss a rollout of the new pilot scheme. oil supply in libya is pushed to a new month high. we'll spec to someone who expects the brent spread to narrow in the coming weeks. and can we expect more chinese funds flowing to british shores? we'll discuss the investment outlook with the cfo chinese gaming firm at 11:45 cet. they've just announced they're launching a mainland offer in london. plus, the typhoon and earthquake in the philippines could see nearly 11% shaved off fourth quarter gdp. the nation's economic chief says the philippines is still on track to be one of the fastest growing economies in asia. more on that when we come back.
or on is he being hounded, stephane? >> i think we need to see the emotional part of this story and the legal part. as you know, peugeot is firing more than 10,000 people and it's struggling to regain growth as the market in europe has been shrinking for the last six years. so to announce that he will get the pension of 310,000 euros per year and the provision of 21 1 million euros, indeed, the workers union were not really in favor. even the french president, francois hollande got involved and believed that was not the best solution. that is the moral part of the story. now, is it legal? there is actually in france kind of a contract. the common practice, that was signed by the main business lobby which says that the pension is usually 45% of the total gross salary, but only after nine years spent in the
company, which is not the case for phillip who has been the ceo of peugeot citron, who has been ceo of for five years. this is what he did yesterday afternoon after a secret meeting. he announced that he would renounce to this package. it doesn't mean that he won't get any money from pueugeot citron. we had a couple of reactions, including one from the french president francois hollande speaking from madrid. he said mr. varin's decision was a wise decision. but he said it was also the only possible decision anyway, given the current situation at peugeot citron. market reaction is quite positive on the share price. we're up more than 3% right now. >> all right. stephane, thank you for that. third quarter gdp came in as
a slower than spec'd 1.1% on the quarter. analysts were expecting growth of 1.4%. there were concerns that the typhoon that hit the country could dent the fourth quarter growth. the finance minister said there could be a silver lining as reconstruction provides an economic boost. economist at standard charter joins us with his thoughts, jeff, how concerned are you by the size of the dent from the typhoon? >> well, we are not that -- we're concerned about q4 gdp growth significantly. currently, we think that the q4 gdp will slow to 6.4% year on year. overall, if you translate to one or more i think it will be weighed down by effects and some
effects of the typhoon. but given that the impacted regions, are most severely impacted, only contributed about 2% of the gdp for last year. i think we don't see too much downside growth in q4. >> do you buy the argument that whatever you lose because of the storm, do you regain because of the rebuilding? >> well, definitely i think there will be some reconstruction that's going to occur in 2014. the government has already announced that the budget will be set aside for the reconstruction. i think based on the plans, as well, we do see that the upside to gdp growth next year will depend on how -- lead the implementation of this reconstruction efforts will be. >> yeah. meanwhile, what is the balance between domestic demands and external demand? >> yeah. if you look at the q3 gdp growth
result, it does show that domestic growth was stoppinger than stronger than expected. growth has picked up in q3, but the net from growth in the third quarter due to strong growth. but overall, it does show that the manufacturing sectors, i think the growth remains intact and we do see that the growth path will likely continue into 2014 and 2015. >> what about the rest of the region at the moment? what is the -- is it going to be much below to your neighbors? >> yeah. i think for the whole regionwide, we see that given there will be better external demand coming in from the advanced economies, they will have to propel growth in 2014 and that will help overall gdp growth for the next year.
>> we saw the indonesian rupee down today, lowest since 2009. clearly there's a fear here about what's going to happen next year with fed tapering, as well. >> yeah. we do see that to occur next june. i think in the real economy, implies that the u.s. economy is modestly improving and the growth trajectory will improve throughout the course of the year. that will imply that there will be better external demand. pmi has been strong throughout the region and globally, as well, overall indicating that there will be higher external demand in asia for next year. >> we're not worried, though, about negative flows because of tapering? >> yeah. i think our forecasts do reflect that there could be some upsides to the dollar. i think given the currencies,
given -- but overall, i think our trajectories show it's going tom come back for more currencies. >> good to see you. the prime minister easily has survived a no contest test in parliament by a two to one ratio. this as protests continue for a fourth day in bangkok. while in the country's south, thousands of anti-government demonstrators have escalated street rallies and occupied provincial halls including the hot tourist spot. the thai bot is now trading weaker for an 11th straight session. another player ups its offer for cheese. this time it's murray goulburn.
warrnambool has favored its bid. the company shares have more than doubled since a bidding war broke out in september. still to come, shanghai international may still have an appetite of the swallowing u.s. pork producer smithfield foods. shuanghui already has a 37% stake, but planned to shave that down. it's valued close to $11 billion. shanghai shares up more than 4% today. still to come, the continuation of militant block aids in the east of libya choking oil exports has the
prime minister warning it will not be able to pay its civil servants. plus, as americans enjoy their thanksgiving, we'll be live from an english farm to discuss the turkey's journey. during the show, we're going to have a world record attempt on the time it takes to carve a turkey. that's at the end of the program. plenty more to come.
and the headlines, a new day for italian politics, silvio berlusconi vows to fight on after being expelled from parliament. the country can now push ahead with crucial reforms. cnbc is told next deposit rates are a possibility. >> it would be i think a measure that has to be taken if -- if it has to be taken with great caution. outgoing peugeot citron ceo gives up his 21 million euro pension after overseeing job
cuts. and it's no ordinary thanksgiving here at cnbc. i'm be prepare ago turkey live in the studio in 3:19. that's the world record for carving a turkey. we'll have the champion on the air. he's going to try and break his own world record. you heard it right, folks, we are going to attempt the world record for carving a turkey by tend of today's "worldwide exchange." bet you didn't think you'd see that, eh? meanwhile, the ftse 100 is up 0.2% overnight. the xetra dax is up 0.4%. the cac 40 is up 0.3% and the ftse is up 0.8%. yields are higher today. we will keep our focus on italy.
on the currency markets, real focus on dollar/yen. dollar/yen up to a fresh six-month high. 102.18. euro/dollar, 1.36. that's around about a four-week high. sterling/dollar has been moving higher today, as well. libya's prime minister says the country is suffering a financial crisis because of the un re unrest and it's seen oil drop by 2%. the government may not be able to pay salaries and called upon elders and tribesmen to help end the strikes at its oil ports. speaking yesterday, the chief said oil markets were sufficiently supplied, despite dwindling supplies from libya.
joining us with his thoughts, good to see you, thanks for joining us. brent holding at $111 a barrel because of -- in libya. that comes after the drop we had on the iran deal. where is brent going to go now? >> i think that's a price a bit elevated and ahead of the fundamentals. i wouldn't be looking too much at the current situation. i think the market needs to look at what happens if the negotiations between iran and the western powers would be successful, would come in weeks and months and iranian supplies would be coming back to the market. what happens then? because the demand for opec oil next year is likely to remain subdued. it's likely to fall by yet another 1 million barrels today. it will be very hard for opec
next year to balance out the market and to stay at the current price. i would rather think the price is between $100 and $105 would be more fair in the current conditions. >> meanwhile, we've seen wti fall. we saw another build in inventory yesterday. and the spread between brent and wti widening. is it going to widen more or is it going to narrow from here? >> actually, the spread is having a life of its own. right now, it's around $1119. you cannot justify it by any fundamental factors. basically, the u.s. market for wti and the brent oil market are delinked completely at the moment as the arbitrage possibility is not enough to provide the flow of wti towards the coast and then to release the oil products from the u.s. to the world market.
i think that the most obtainable level in the future would be probably $5 rather than $15 or $90 right now. but it's very difficult to say when it happens, if it happens next week, next month or only in six months. definitely more capacitities for the pipeline and a rail come into place as the spread is likely to narrow. >> let's talk about gold. we appear to have very strong chinese demands which appears to have to impact on the price. why? >> yeah, it's -- actually, the chinese demand is the reason why the gold prices are not yet trading at $1,000 or below. in the current conditions with very much liken in investment not only from the short terms speculators on the comics, but also on the longer term etf told us the chinese buyers.
and i think the demand for buyers are not only the private households, but also the central bank are preventing gold from falling below. we're having the kind of haven china put right now somewhere between $1,200 and $1,300. it will be very interesting to see whether it will continue to strong demand. i think it will continue and the prices will be holding above 1,200. next year, should the investment interest come back to the market, we are likely to see an increase here. but probably for mow it's still very negative picture for gold and the investors are likely to stay on the line. >> just a final word, turkeys, frozen turkeys, prices of those on thanksgiving? what's going on? i say part of it is dictated by what happens with the price of feed and corn.
>> yeah. everything is increasing in price, but price for commodities and for soft commodities like corn, falling down. so you could put a little sign for this year as the turkey price is probably will drop compared to the last year and drop from the record high levels for the turkey in september. this time around, the thanksgiving dinner is going to yet again cost less than 50 bucks and fall by, i think, 1% from the last year thanks to the lower feeding costs. >> thanks for that. always good to see you. we'll see how our former, paul kelly, thinks about that pricing when we get to him. right now, tensions heat up
in the east china sea. japan has unveiled a defense program. yukako has more for us from tokyo. >> hi, ross. japan's new defense program will be stressing sea security as the nation is rapidly expanding its military forces. the plan was outlined yesterday. it vows to maintain maritime orderes and secure the safety of sea traffic beyond the islands of north korea's development and nuclear stability. the new defense program will be launching next wednesday. prime minister shinzo abe hopes to finalize the defense program
by the end of the year. that's all from the nikkei business report. back to you, ross. meanwhile, happy thanksgiving to all our american viewers. breaking down the festive season in numbers. this is what we've got for you. 48 million turkeys are expected to be consumed just over these next couple of days. that will give give over 140 million shoppers the energy to set out and take advantage of the sales. almost $60 billion was spent last year. the holiday season started even earlier this year. i know it's unbelievable, but there are retailers who are opening thanksgiving day itself. k-mart opening -- what do you mean 6:00 a.m.? they're opening at 6:00 a.m. this morning? old navy apparently follows at 9:00 a.m. i understand that extraordinary. toys are us apparently at 5:00 p.m., walmart at 6:00 p.m. and
macy's at 8:00 p.m. i'm not even sure k smart -- this morning people are going shopping at k-mart apparently. maybe they want to repair and get some stuff for the lunch. despite a 1% drop in the classic thanksgiving dinner this year, the price of an average turkey in the u.s. has gone up by 60% since mid 2006, driven largely by overseas demand. carolin has been sent to a farm and is joining us live. >> we go above and beyond to bring you interesting television. happy thanksgiving to all of our u.s. viewers.
obviously, it's turkey day in the u.s. it is estimated that between 48 million and 60 million turkeys are prepared and eaten every thanksgiving. obviously here in the uk, we don't really celebrate thanksgiving. but christmas day is less than one month away. and according to the british turkey federation -- i didn't make that up, it actually exists. according to this federation, around 10 million turkeys are devoured in the uk around christmas every year. let's talk to a mon what lives, breathes turkey farming. let's talk to paul kelly. thank you so much for having us here on your farm. it's great to be here. and the turkeys, they're behaving quite well this morning, aren't they? there's been a lot of coverage on turkeys this year. some say the price in the store is going to go up over 20%.
are those fears -- >> it all depends on which you fix your feed price with the volatility with soil and the wheat markets, that dictates your costs. you've got other inflationary coasts, but wheat and soy are the biggest issues in the uk and the volatility in that market has been phenomenal. back two years ago in january, you'd be producing relatively quick turkeys. so the retailers, whoever you're selling with has to understand as a supplier, feed is the issue and they want to get involved in making that choice. >> so i assume you're doing a lot of hedging through financial contracts? >> i tend to go 50% stock and i'll cover the other 50%. it's like playing roulette. you don't honestly know was going to happen. you take advice. but professional advice doesn't always pan out. if i think things are relatively cheap going forward, i will say
i think that's cheap enough, but i'll always have some spot. if you play spot all the time, on average, you're going to get the right price. >> you should watch cnbc more to get more information on your spot fixing. let's talk about the uk. a lot of people have been surprised. are you feeling that in your business, too, as we're going into christmas? >> there's a lot more buoyantsy. certainly when we had the crash of 2008, it wasn't that people didn't have money. mortgage rates came down. our customer genuinely had more money to spend, but there's that feeling of, oh, we can't be lavish and have a very, very good turkey. everything had to be kind of average. people are saying, you know what? let's treat ourselves again and have the best christmas ever. >> what do you expect in terms of sales this christmas, this year? >> 7 5% of our orders come through the internet, through
delivery. we're 12% up in the year. all the signs at the moment are it's buoyant. you don't skimp on christmas day. >> your business is a very seasonal one. how do you manage your business with that seasonality? how do you manage your supply chain and your cash flow? >> in the early years, cash flow was a bet of a problem. i was a matter of growing what turkeys we could and you have to build up the reserves. that is the challenge. but certainly when we have the financial crash, we had very busy months in june and july supplying lots of farmers throughout the country with this specialist broad. we in many cases have become their bank. some couldn't get the funding so we spotted them until after
christmas when we knew they would have had money. >> you've expanded in the u.s. you set up a turkey farm in virginia last year. how difficult is it to compete in a very, very competitive u.s. market? >> we're not competing with the likes of walmart. put it that way. i was there last week and looking at the prices. it's 43 dollar cents a pound. they are loss leaders. they are selling them to get people into the store to do the rest of their shop. you can get 20 of theirs for one west virginia of ours. when i talk to the industry out there, they'll say, paul, turkeys are a buck a pound, get over it. but they will not sell forever any more. but if he look at the sales of fine whines and the best champagnes, they're going through the roof at thanksgiving. there has to be a misdemeanor. it will be a niche market, but people are very prepared to pay for something special on
holidays. >> paul, we know you have many talents. i should let people know you are the world record holder in the fastest plucking of three turkeys, the world record holder in the fastest carving from a turkey, but apart from that, you can imitate the gobbling sound. can you do that for us here right now? let's see if they respond. there you go. >> they love me. it's really sad. >> it's not too sad. thank you so much for that and to our viewers out there, we're going to try to break the record in turkey carving. how much is it? >> 3:21. >> we'll try and break that record live on "worldwide exchange" this morning. back over to you, ross. >> it's a cnbc exclusive. you can't watch it anywhere else, that attempt on the world record. i grew up about 10 minutes away from where you are. i don't remember being able to do that to turkeys, though.
they love them. >> you should have have learned. that's a very, very useful thing. we have the world record holer in plucking and carving. if that wasn't enough, i'll be joined on set by nicki foley head chef at the rotunda here in london. he's going to show me and i'm going to show you how to prepare the best turkey dinner. meanwhile, china is on its way to becoming the second biggest carbon market globally as it looks to cut co2 emissions nearly in swrarn. we'll be in hong kong for the latest. we'll talk about it.
ones. fines will be raised for breaching new rules and unsafe mines will be closed. the industry has been losing money. this comes as china plans to cut its carbon emissions by 17% to 2015 in a further 40% to 45% by 2020. in order to meet this goal, china is rolling out its pilot emission trading schemes. if the pilot project succeeds in its aim of covering the approximately 700 million tons of co2 emissions, china will become the second biggest carbon market in the world. patrick is joining us in hong kong. good evening to you. thank you very much indeed for joining us. do you think china might make carbon trading work? >> thanks, ross. yeah, i think there's a good opportunity or chance that china can make the -- more.
they have been learning from europe for a long while and designed their own system. the seven-pilot system covers about 700 million tons of -- per atom, around 10% of its nationwide the emissions of carbon. but actually, that's just the start. because after the trial runs for about two years, one or two of the pilot pays will be rolled out to nationwide. therefore, nationwide ets systems on trading carbon will be established and, therefore, kek fully control the total carbon emission in china. >> it's a very aggressive target. how actually is the going to work? they're going to issue a certificate? presumably, the renewable operators have to step up to the plate a little bit. how are they going to deliver this reduction? >> well, the difference between eu trading system and china
system is china is carefully designed the total emission, which is, of course, the supply of the demand of the credits. and also, the supply of the credits will be awarded to those high efficiency power consumption or even the renewable operators. and these renewable operators will be certified as credit so-called china certified emission reduction credits which can often against accept this carbon emission. so on that trading platform, based on a quota for different business indeed piloted drones and the business that will grow their outputs according to a standard unit of the electricity or power consumption, assuming that's all thermal power, so
they're generating carbon, so if they want to produce more or sell more products, they need the buy extra quota from that platform, the trading system. on the other side, the renewable companies can provide a nexus quota to the supplier to the trading system to offset against the excessive growing carbon credits. so that's how it works. >> okay. is there any -- i'm trying to keep things fairly simple, although it's not a simple business. how do you make sure you don't get sort of unfair allocation? well, that's a good question, actually. there is no answer yet. the currently trying to focus a lot. the verification and reporting system. does that easily could go around. some people might have some room
to ip flnflate the production numbers. and the simple allocation methodology can just, based on the historical data points and keep inefficient companies too much at quota. but this can only be fine tuned over the course of the next one, two years trial period. but i wouldn't say -- yet. but i'm sure the government will more kind of doing by trial and error. >> patrick, how does an investor then play this theme? are there stocks that are going to benefit? >> well, the big beneficiary would be the ipp company who are running the renewable power, which includes wing power or solar power, etcetera. so currently, it's only one case in guangdong province are receiving cpr, the china
certified emission reduction credits, which will be generated from the renewable power company. and they -- in the future, we expect actually every zone, every whole nationwide system will receive, as well, by the ccer credits to the carbon market in china. the renewable ipps will gain actual money at their so-called cper income. according to our estimates, that will be roughly account for maybe 10% to 30% of their base after 2016. so that can be very visible. so the investment opportunity would be for the leading renewable ipps. >> patrick, good to talk to you. thanks so much for joining us. have a good evening. now, chinese industrial company profits meanwhile rose
less in october than the month before. they earned 15.11% more on the year. that's down from 18.4% jump in september. but that's still higher than this year's average. private businesses had the strongest gains widely outpacing state owned enterprises. it is thanksgiving and more than 46 million turkeys will be consumed stateside today as everyone tucks into dinner. another 10 million will be eating in the uk over christmas. beautifully cooked many may be, but the act of carving remains a task for many. this morning, we have a ring master carves. we'll be joined on set by necky foley, head chef at the rotunda in london. he'll show me and you how to prepare the perfect turkey dinner. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate.
this is "worldwide exchange." i'm ross westgate. a new dawn for italian politics. silvio berlusconi vow toes fight on after being expelled from parliament. there is hope now the country can push ahead with crucial reforms. the ecb warns policymakers to brace for shocks as the vice president tells cnbc negative deposit rates are a possibility. >> it would be certainly a measure that has to be taken
if -- if it has to be taken -- with caution. outgoing peugeot citron ceo foregoes his pension after overseeing 10,000 job cuts of the struggling carmaker. and it's no ordinary thanksgiving here at cnbc. i'll be preparing a turkey in the studio. and 3:19, that's the curve world record for carving a turkey. we'll have the champion on the program attempt to go break his own world record. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. all right. if you happen to be up and awake stateside, happy thanksgiving state side. we'll get some tips on how to
prepare the perfect dish here in the studio. if you are awake and warping what to do, don't worry, you are in the right place. a fresh record close in the states yesterday, the do i up 24, s&p up 4.5 and nasdaq on a 13-year high. in japan, the nikkei up 1.8% today. nearly the highest for six years. we've seen this market up 51% year-to-date in japan, helped by the fact that the yen today down at a fresh six-month low against the dollar, four-year low against through, five-year low against the pound. the hang seng was fairly flat as was the s&p/asx. european equities, meanwhile, have continued that trend. more green on the board. we're about the highest level for the session so far.
the if it ftse 1100 up 0.4%. we saw n3 contract even more for october for the eurozone, 1 is.4% on the year is expected to be 1.7%. so even more signs of disinflation in the eurozone. it's not out of the question we might cut deposit rates. and the prime minister silvio berlusconi has been expelled from parliament. thomas cook up nearly 13%. the british travel firm raised its targets for revenue and cost cutting. not so good for kingfisher. 5% lower. the bottom of the stoxx 600 after third quarter numbers cam in at the low end of the expectations. i talked about dollar/yen on the
currency market. this is the bond market. maybe we can have the currency markets. i don't know whether we could. there we go. thank you very much. 102.19 is where we stand at the moment. euro/dollar, around the 11.36 mark. and sterling just above 1.63. climbing ever higher on cable. as far as bond markets are concerned, treasury yields ticked higher yesterday, pretty much the data out of the u.s. yesterday, fairly supportive for those wonder background tap tapering. this as the ecb says systemic stress has fallen back. the scaling back of the bond's fed bond buying program could cause market shots. annette has moved from frankfurt to berlin and she joins us for more. annette. >> yeah.
yesterday, i was meeting. the president of the ecb and responsible for this financial stability report. and he was actually saying that he is seeing a pick up in lending for the end of the year, looking at this data now, i very much worry about that outlook because we, as well, see that bank lending to the private sector has declined now for the eighth straight month. so i don't really see a pick up in lending for the eurozone banks for the end of the year. that is one risk and they're obviously very concerned about that blocked credit channel transmission, that it is literally not working on the periphery rates being very high and they were, as well, reports that the european central bank is thinking about something like an extended s&e program linked to another ltro, i.e., that they will only allow sxerexcerpts to
we are using that money to lend to the real economy. that was one of the things i was speak, vicker. but, of course, we were, as well, talking about the external risk to eurozone financial stability. and that brought us directly to the likelier tax of the fed tapering. take a listen of what he said. >> we are concerned if indeed the bond yields will go up, in particular if it is very southern. i think that the reaction of the markets in may was really unexpected. and with a lot of overshooting, overreaction to the near announcement of possible tapering, which would be gradual in any case. so it was really overblown, the effect.
so i hope that by now with all the talk that these may happen, markets will have already incorporated part of this and that the reactions will not be significant and steep as they were last time. >> so that the incoming data now suggesting that the bank lend sg not really picking up towards the end of the year. at the same time, we are seeing slight or at least some green shoots of growth in the southern hemisphere of the eurozone. it's a big question of what the ecb is going to do. he was saying yesterday, as well, that only if we are heading towards an adverse economic scenario, the ecb was wondering negative deposit rates because, of course, they would enter unchartered territory here and nobody really knows what that would mean for the bank. but at the same time, they probably have to act if they are looking at that inflationary or
rather deflationary pressure, i should say, with that incoming data. so all eyes will be, of course, on the ecb next week when they hold their last monthly press conference for this year. and probably we'll hear more about the projections, as well, when the ecb is convening next week. their inflation projection, as well, growth projection, which gives us an idea how optimistic or pes mittic they are, ross. >> okay. annette, we'll see what happens with that. see you a little bit later, as well. more to come from berlin. in italy, silvio berlusconi has called for a day of mourning for democracy as lawmakers voted to expel him from parliament. julia is in rome. how many people there are mourning, julia? >> certainly the senators were
mourning yesterday, ross. they were wearing black arm bands -- >> we have a problem with the sound quality. we apologize for that. we'll try and work on that. our apologies, julia. meanwhile, while we do that, a reminder of some of the other stories today. the number of americans filing for new claims for unemployment unexpectedly fell last week. initial claims fell 10,000 to a seasonally adjusted 316,000. that figure marking a two-month low. the full week average of claims is a less volatile than the regular figure. "the wall street journal" says a cash component would form part of a larger bid for time warner cable. charter is funded by media
corporation. still to come, thanksgiving is becoming a more internationally celebrated occasion each year. so to mark the american holiday, even though we're here in the uk, we're going to be cooking up a turkey storm with an irish chef. i'm going to go and find out how to do it. oh, yeah. we'll be back in just a few moments.
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investors get ready, market drops can be expected says the ecb. and the ceo of peugeot citron misses out on a 21 million euro payout amid job loss at the automaker. all right. now, more than 47 million turkeys will be consumed stateside here today. here on cnbc, we're going to show you how to tuck into -- i'd like to put the jacket on
properly. can you help me out? thank you very much. it's inside out. there we go. nicki foley, welcome to "worldwide exchange." nicki is a chef at the rotunda restaurant here in london. this is a huge amount of food. what are we preparing? >> first we're going to prepare a classic bread stuffing. we're going to chef it up a bit and put some fresh chestnuts in here. we're got some cranberries here, very important. and fresh sage, as well. >> and this turkey, is this a kelly bronze turkey? >> no. this turkey is a rolely poly. it's happy bars. >> how do you know that? did you ask it? >> i did, indeed. >> and look at this.
>> fantastic. that's a sprout and at the top we have a sprout top which now we use as a cabbage. >> if you sold sprout in the market like this, people would go crazy. >> and people eat the top? >> right. >> what are we going to do with all this? >> we're going to cut the crust up with the bread. do you want to do a lot of this? yeah. go ahead. >> you can cut. >> i'm going to speak to my agent and find out if i have insurance. just cut the crust offer? >> yes. >> we blend the bread in a mixer. i crisscross the chestnuts. >> come in close, mike. >> we don't crisscross them when we put them in the oven, they'll
explode everywhere. do you want to have one of those? >> peel the clementine. >> yes. and then we get into segments. >> okay. i don't have to keep the peel in one go? >> no. >> i have an 8-year-old daughter and she likes to keep the peel in one piece. >> and then we have the onion. >> you've chopped it already. >> do you want a whole onnon? i have a trick for onions. >> have you? >> do you want me to chop it up more? >> i've always wanted to do this. are we aus decisions to be tv chefs now? >> there you go. that will do. did you get that, mike? that was excellent. you got that, right? and that all goes on this plate? >> that all goes on the plate. >> and is this making the
stuffing? >> this is the base of the stuffing. we have the bacon over here. that is cured at the rotunda. we do that ourselves. >> you have a farm in north cumberland. >> we do, indeed. we deal with beef and lamb on the farm. so that's a middle weight pork. >> are those all the ingredients? >> yes. >> what we're going to do is you're going to go back and prepare the the stuffing from these wonderful ingredients. >> yes. >> so that's coming up. more to come from nicki as we do that. don't forget, as well, stay tuned because we're going to be going out to paul kelly. carolin is with him at his farm in essex. he's going to attempt to break his own turkey carving record. it's 3:19. later, we'll see whether paul can break his own world record. it's a turkey fest here on "worldwide exchange." we're going to prepare our stuffing before we actually do it. see you in a few moments.
moment. we haven't been far away from the 4 1/2 year low, as well. this is as japan's finance minister saying he will have no choice but to intervene in the markets if the exchange rates are excessive. the weakening is a result of the country's policies aimed at beating deflation. johnson web is head of fx strategy, joins me in the studio. you're not cooking, so you're safely in the right place there. strange comment to make, we would intervene if we thought the moves were excessive. is it the government's aim to weaken the yen? >> yeah. i think they're referring to if we did see very sharp moves. but i see very little prospect of the boj stepping into the market at any point. they're very happy to see the yen weaken at this point. >> dollar/yen this morning is at 102.28. we have failed to sustain any
great meaningfully below 100 or dollar above 100. is it different now? is this a break that's going to be held? >> yeah. i was very kindly invited on to your program, on to cnbc at the beginning of the month. and i was saying i think the time is now right to see a weaker yen. and i think a number of things are starting to come together. in particular, the reason why the yen couldn't weaken after the first comments about fed tapering, problems with asset markets, this market is selling off made it very hard. japan has some safe haven status. that made that very difficult. but now in some respects we're past that. we can taper without another sell-off. but domestically, we think that we -- you know, we wouldn't be surprised to see the bank of japan will take further measures next year around the time when consumption tax starts to go up. so there are a few things starting to come together for
the yen. and, you know, i think we thought the yen would start to come down and very happy to see it above 100. 1100 is the key level i think psychologically. if we close up here by tend of the year, i think the japanese asset managers will probably be more willing to start pushing money overseas or are more concerns that this move will continue. >> that would be an interesting point. how much of whether we stay above dollar/yen is predicated by we believe tapering is coming. you start pricing it in. >> in a way, they've done quite a good job in that i think this time they can taper, i think, without this sort of big sell-off. and bernanke made very clear the reason. he said in a speech last week why they didn't taper was because they were concerned that the short end was selling off. and i think they've done quite a good job now of getting this idea clean. bond yields will be up at the
long he. but at the short end, they are very clear. it's lower for longer. don't think the fed is going to start moving rates anytime soon. and i suspect this time around tapering, which i think will be good for the dollar, won't actually lead to the big sell-off. >> the yen is not only just -- we're not far away. i think the 4 1/2 year highs, 103.77, somewhere around there for dollar/yen. we're down against four-year lows against the euro and five-year lows against the pound, as well. this weakness against trading partners, what is that doing for china and the rest of the asian region? it's a bit of a competitive disadvantage. >> i would say it will get worse. to me, dollar/korea, we're thinking the central bank was going to become more aggressive to stop dollar korea going down
and if anything, they'll want to see dollar/korea going up. the one thing to bear in mind is that after the cry cities, dollar -- the korea fell a long way against the yen. and so there is some sort of correction going on. in our view, you know, the korea is vulnerable. >> what target would you use just for the -- there's only four weeks left. is four weeks even meaningful trade in the currency markets? but this level we've got this morning, do you think we can push it further on dollar/yen? >> i think so, actually. i think that staying above 100 is key. 105 is a reasonable target. but i think more importantly, a number of factors for next year suggest that we could be looking at 110, back into the old range,
really. >> just a quick word about sterling. if you're at 11.63 against the dollar, we're getting into recent terminology, fairly rare here. and when we last stopped at 11.06, people said we would get down to 1.48. what's the outlook for cable? >> we're very constructive on sterling. we see the uk economy is outperforming. we see growth picking up. particularly and relative to europe. and the other big thing that is sort of hanging there over markets is the vodafone verizon deal. we know that shareholders are going to get paid i think $38 billion. quite a lot of those sterling based investors will not want to keep those. there's a big sterling purchase to take place, probably sometime in the first quarter. and i think it is something that is going to keep a bid under sterling. >> jonathan web, have a good
day. stay around and is we'll share some turkey i might cook a little later. still to come, talking about sterling, the bank of england is getting ready to deliver its latest financial stability report. we'll be at the bank right after this. and our very own in-house chef is preparing the perfect turkey for us here on "worldwide exchange." i'll be giving him another helping hand as we not only make the stuffing, we then apply it. more to come.
these are the headlines on "worldwide exchange." the former pm silvio berlusconi vows to fight on after being expelled from parliament. 310,000 euro after overseeing 10,000 job cuts at the struggling carmaker. and it's no ordinary thanksgiving here on cnbc. we're preparing a turkey live in the studio. plus, 3:19, that's the current world record for carving a turkey. we'll have the champion preparing to break his own world record live on the show.
if you've just joined us stateside, happy thanksgiving. the next question is why are you up so early? but anyway, european equities are following on from the record close we had once again on u.s. markets last night. which is followed through in asia today. the nikkei up nearly at its highest close in six years. the xetra dax is up 0.4% with the cac 40, as well. and the italian market is up nearly 1%. meanwhile, the ftse up 0.4% as the bank of europe delivers its latest financial stability report. listen in. >> the shortfalls identified by the ftc and the tra and
liquidity conditions remain robust. to promote financial stability, the fpc's job is not to rest, but rather to focus on underlying emerging vulnerability. despite the return to solid growth, financial stability risks remain, including those deriving from high levels of indebtedness both here and abroad. sharp rises and global interest rates could test financial ability particularly if they are not associated with strengthening incomes. in its most recent risk assessment published this morning, if the fcc paid particular attention to recent developments in the uk housing market, that reflects the importance of housing and mortgage debt on household and banks' balance sheets. any housing downturn could affect financial stability, both
through its direct impact on banks and from the exposure more brdly to an economic downturn. housing activity has picked up from a low level and prices are 7% higher nationally than a year ago. price increase res gaining momentum and broadening out around the country. valuations well below levels reached in 2007 are high by historic standards and are likely to rise in the near term. the immediate threat to financial stability from these developments is mitigated by the highest quality and levels of capital at banks and building societies as well as by material improvements in underwriting standards since the crisis. the risks to financial stability may grow if there are further substantial and rapid increases and further build up and indebtedness. these risks would be amplified if standards on morning lending
weakened as has been the case in previous cycles. as part of the graduated response, the scc is acting with other authorities to implement a packet of measures to guard against these risks. some of these measures are in trained. collect ofly, they are significant. but they are not exhaustive. the scc outlines a wide range of additional steps it could take in the future should they be necessary to meet its statutory objective to ensure financial stability. so let me start with those measures that are already entrained that haven't yet taken full effect. first, over the course of the next year, the capital adequacy of major uk banks and societies will be assessed as part of a new ftc/pra stress test which will include a, quote, examination of the risks rising from housing-related portfolios.
second, the fca is putting in place measures to help maintain strong mortgage underwriting standards as part of its mortgage market review, or mmr. some banks are already applying these standards. all banks and societies will be required to do so by april of next year. now, authorities are announcing today two new measures. first, the tra has decided to end temporary capital release on lending from the beginning of next year. second, the bank and the treasury have announced that the funding for lending scheme will be refocused towards business lending starting next year. since fcls was launched, it was contributed to a substantial fall in bank funding costs. this has fed through to a significant improvement in house hold credit conditions. given this success, there is no longer a need for fls to provide
further broad support to household lending. instead, the fls extension will only generate additional allowances from lend, incentives heavily skewed toward lending to fme. the fcc welcomes these changes to the fls. and the ntc has judged that they will have no material impact on the monetary policy. i know they've judged that, but i don't have that page that says that. thank you. thanks. i'll read five. the mcc has judged that these changes to the fos will have no material impact on the stance of monetary policy and they noted that they do not affect the mtc's policy guidance. the package of measures that i've described today will contribute to a constructive
evolution of the housing market. by reinforcing financial stability, they further reinforce the mpc's ability to provide exceptional monetary stimulus to the entire uk economy for as long as it seems appropriate. in today's fsr, the ftc has identified a range of tools that it could use and could deploy in the future should that become necessary. these tools include recommendations on underwriting standards to help to buy schemes and the availability of higher risk loans. as well as the possibility of recommendations for directives of bank capital requirements. finally, the fcc is acting today to create a new macro tool, that is the ability to vary the affordability criteria that mortgage borrowers must meet. this will help ensure that underwriting standards don't slip and that borrowers can afford to service their
mortgages if conditions change more than they expect. the package of measures i've described is a coherent proportionate response to the evolving risks in the housing market. it's manageable and they are being managed. this will help keep the housing market and the sustainable path and ensure that the broader economy continues to receive the stimulus that it needs for as long as it needs to sustain the recovery. by acting now in a graduated fashion, authorities are reducing the likelihood that larger interventions will be needed at a later point. now, security financial stability requires much more than a resilient housing market. that's why the fcc has set out today three other extstrategic prorts for 201priorities for 20. those are helping to set the framework for banks including
conducting a role of the leverage ratio within that framework. second, working to end too big to fail. and third, identifying and addressing risks in shadow banking while supporting diverse resources in market based finance. all of these structural measures are essential to developing a more diverse and resilient financial system. as it pursues the strategic objectives, the ftc will continue to monitor carefully risky financial stability and work in close coordination with other facility toes achieve its objective. with that, my colleagues and i will be happy to take your questions. >> thank you. if you could identify yourself before asking a question, as always, in the interest of letting as many people as possible have a question, please keep to a single question and then hand back the microphone. >> all right. we've just tuned into a press
conference from the bank of england. the headline there is that they are scrapping the incentives that support mortgage financing. they're now going to concentrate funding for lending purely on small businesses. george osborne has approved the fls changes. they have the help to buy scheme for the government and so the bank has decided they're going to withdraw. we saw mr. carney say little evidence that uk housing price inflation is an immediate threat, but the risks may grow. he's putting this in the language of this is a preventive measure so things don't get out of hand. the reaction, though, is to see house price builders -- stocks of builders fall sharply. and we'll pull that up for you in just a second. sterling up at the best levels of the session, as well. sterling/dollar, 1.6331.
a sharp rise in interest rates, mr. carney said, could bring stability risks in some countries, firms and households indebtedness. persimmon, down 3.85%. taylor wimpey down 2.45% and redrow down 23.7111%, as well. more reaction on that. also, what are you to do as an investor? here is a recap of what some of the sterexperts have told us on channel today. >> so the commodities story, not really helping the emerging markets deposit level. all in all, it's a murky outlook. the dollar with euro or sterling and both of the corporates that have the strong balance sheets, we find them probably a little bit cheap against the developed market fears of credit quality with very similar balance sheets.
>> we're hitting almost an inflexion point with regards to a return to positive cash flow, particularly with bnp in 2015 bg group. and even shell is starting to join in the game a little bit with regard to try to be a little bit more disciplined in their capital spending. >> tapering is well priced in to a certain degree in the market. we see that short-term has been well anchored. they are back not only on announcement of june 19th, but before any announcement of tapering in may. >> some of the thoughts we've had on the channel already today, elsewhere, uae authorities have made efforts to reduce the penalty on oil. in dubai, diversification has
been relatively successful. he says they spoke to the national bank of abu dhabi for his view on the diversification policy. and he joins us for more. yusef. >> good to see you, ross. it's all part of the 2030 economic vision of abu dhabi. but it's not that easy one year producing some 2.7 million barrels a day of crude, expected to rise to some 3.5 million by 2017. abu dhabi produces most of that. now, the national bank of abu dhabi, effectively the government bankers is poised, of course, to benefit from this renewed oil boom. i sat down with alex who just switched from the australian new zealand banking group and here is what he thought about the role of oil going forward. >> i think the oil impact, and will continue to be, is a base, a very strong foundation. and not just for abu dhabi, but i think for the whole of the
uae, it gives it that piece of a surety that i think other people in the world want from the uae. >> you have the idea or the question of replication when it comes to tourism and finance because neighboring dubai, which has secured the expo 2020 is already ahead when it comes to that. but alex does not think that's the case. they can coexist, as he put it, just like singapore and hong kong. you can see the full conversation later on tonight. that's on access middle east with the ceo of the national bank of abu dhabi. ross. >> all right. yusef, thanks for that. meanwhile, shares in the dubai stock exchange are up 4%.
dubai has won the 2020 world expo. how big a deal is this for the region? >> well, the city is an electric atmosphere, to say the least, ross. you should have seen the fireworks yesterday. the gains on the dubai stock exchange have moderated. keep in mind this is one of the best performing indices in the world, up over 85% so far this year. authorities claim that there are a lot of economic benefits from the events which takes place just before another capital intensive project that cuts our 2020 world cup in a neighboring right beside basically the united arab emirates. the bank of america/merrill lynch put out a report, as well, on the impact that it foresees saying it expects the government to put out some 6.8 billion $6. capital spending and an additional $1.6 billion to cover the operational costs. we're at an annual 3.5% of gdp,
over 250,000 jobs. you can imagine how multi nationals will be racing to secure increase project allocation with the prime minister david cameron backed dubai early on saying it was very important for british business. so the expectations are high but, of course, concerns about price inflation, especially in the property market where, again, prices have risen very, very fast and the memories of the 2009 bust are still fresh. ross. >> extraordinary. we'll see how -- i'm sure they're going to milk it for everything it's worth, yusef. thanks very much indeed for that. meanwhile, still to come on "worldwide exchange," here in the studio, nicki is going to show me how to make and prepare stuffing a turkey, while in essex, carolin is learning how to pluck one. >> yes, definitely. we've talked a great deal about the business of turkey farming, about prices of turkeys in the u.s. and in the uk this year.
but after the break, we'll get down to business. we'll pluck a turkey. we'll be right back. ya know, with new fedex one rate you can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy.
you can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. the bank of england has been delivering its latest financial stability report.
mark carney aannounced that they are going to scale back lending for funding. it's going to concentrate on essentially lending to small businesses. he said not necessarily worried about a bubble in the housing market, but if interest rates were to rice suddenly, maybe it's preventive. and he's said we could take more steps to take away worries about the housing market, as well. that press conference is currently under way. we'll keep our eyes and reaction to that. the heavy fallen house builders as a result. meanwhile, the other headlines, house builders fall as the bank of england scales back lending. expels from parliament, silvio berlusconi vows to stay in politics. and the ecb warns on qe market shocks.
away from the headlines, we here on "worldwide exchange," because it's thanksgiving, are with nick foley head of the rotunda restaurant here in london showing us how to prepare the perfect dinner. we talked about the greens earlier. we're now ready to mix, right? >> these are the chestnuts i showed you earlier that we crisscrossed. the crisscross helps it. >> to expand. >> and that stops it from exploding. >> correct. >> what do we do, mix it in the bowl? >> put it in there. >> the whole bowl? >> whole bowl of bread crumbs, yes. these were the onions, which were expertly chopped. >> sage. nice and fresh. >> if only you could smell that. that's really good. >> then we have some
cranberries. roasted chestnuts. >> with the crisscross. these are the clementines. >> this is the bacon. >> you don't need all the bacon? >> no. molasses and honey cured bacon. >> and we're ready with the ingredients? >> yes. if you get the hands and mix all that up. >> that's an interesting feeling. i think you should be doing this rather than me, but you have to keep your hands on the focus. >> we have to add in the butter and keep on mixing. >> with my hands? >> with your hands, as well. that's warm butter, as well. this is an interesting feeling. am i -- one hand or two. >> one is enough. >> because i have to hold the bowl up so mike can get a good
shot. is that good? >> that's good. >> that's amazing. do you make that -- >> no. we've cooked that out on the stove for about 15 minutes now and then that will be ready. here is a cloth for your hands. >> it will reduce? >> yes. cook it up for about 15 minutes. >> nick, thanks very much indeed for that. you've got a log, right? log cabin at your restaurant. >> we do have a log cabin outside for the winter months, fires and marshmallows. >> sounds warmer than it might be with carolin is. once we go and cook the toughing, carolin, let's get back out to you. you're at a turkey farm in essex with paul kelly and he has a world record in carving. >> yes. we talked about turkey prices in the uk and in the u.s. in the u.s., we heard it is very much driven by heavy aggressive
discounting by some of the discounters. walmart, of course, being one of them. paul kelly says he doesn't necessarily want to compete with that. in the uk, there are press reports the price of a turkey could go up by as much as 20% this year alone. paul kelly told me this year the wholesale price will be increased by 5%. let's get down to business. let's pluck a turkey. >> okay. should we start plucking now? >> yes. what's the key to plucking a turkey? >> knowing the anatomy of the bird .plucking it carefully. there's certain parts of the bird that are very tender. the breast is very tender and the thigh up here. if you tugged in the wrong place at the wrong time, then you would rip the turkey. >> so this bird is dead, obviously, and this is not where you usually pluck the turkeys. >> no. this is my garage.
this is where i pluck them in the autumn if i've been out on the range and one has a broken wing or something, i'll come in here and pluck it and eat it a week later. this specific bird, how much will it go for at retail price? >> this, if you collected one from the farm, it would be about 60 quid, 65 quid. if you had it at home deliver, it would be a little more expensive than that. >> it's quite a steep price, but a lot of it is down to the fact that you're doing free range farming. >> that's right. and they take twice as long to grow to the same weight. of course, they're all free range, but we pluck them by hand. this is the way of plucking turkeys and it's very, very labor intensive. it's about ten times the price of a normal processing plant. >> free range has become more .more popular. there's no doubt the consumer says they want free range and they do want to buy a free range, but it's a money issue, isn't it?
the purse strings are tie .you have to cut back on that weekly shop. if they can afford it, that's what everyone will go for. whether or not they can afford it is a different fish. >> we have a rolely poly in the studio. what does paul make of reggie johnson turkeys? >> paul, we've got a question from ross. we've got a poly rolely reggie johnson? is that correct? >> reggie johnson turkey. does he like reggie johns yoens? is he any good? >> what's a reggie johnson turkey? >> he does not know what i'm talking about. >> i thought he'd say that, carolin. we've got to go. we'll come back. when we come back, we'll be attempting the world record there in essex. we're going to be preparing our stuffing, as well here. and still to come, on "worldwide exchange," we're going to be talking about china, as well.
>> in this episode of "secret lives of the super rich"... >> this is our master closet. >> this is a closet? >> yeah. >> this whole thing is a closet? >> my section. >> there's a secret world of real estate known only to the super rich. it's called the "whisper listing." it means a property is not for sale unless you're super rich. he's taken a decommissioned missile silo and turned it into luxury homes, so the super rich can survive the apocalypse in style. >> it's the ultimate access with the ultimate insider. [ echoing ] money. power.