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tv   Street Signs  CNBC  July 22, 2016 4:00am-5:01am EDT

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good morning and welcome to "street signs." i'm nancy hungerford and these are your headlines. >> america is far less staff and stable than when obama made the decision to put hillary clinton in charge of america's foreign policy. >> lock her up. crowds cheer as donald trump
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uses his acceptance speech to slachl his democratic rival and cement his hard line on immigrati immigration. european markets start to turn higher, but still hovering in the red. shares in vodefone jump. divided defenses, dassault cuts after a stoe sore in earni >> good morning and welcome to "street signs." we want to bring you some euro zone data. sit the first one since the referendum vote and we are on the wire seeing that july composite pmi for the flash
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estimate has come in at 52.9 for the zero zone. v. the previous month came in at 53.1 so looking again at the manufacturing component here. that is just a tad bit below the forecast. that will is beating in july coming in at 52.7 compared to forecast for 52.3. so overall the composite a tad bit higher than forecast. services stronger than manufacturing. we will get some analysis lartd. a lot of central banks, economists saying still too early to gauge the brexit effect. the message we heard fra mario draghi yesterday, still tole earlier to take action.
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some were disappointed that mario draghi was not as dovish as expected. he said we are willing and ready to do what's necessary. nevertheless the global markets taking a breather since post-brexit. here with are in europe after a soflt session in asia in the read. modest losses this hour. the main market off .4%. another big day of earnings of course, but investors keeping an eye to the political situation globally, not the least of which the race for the white house stealing attention this week. donald trump wrapped up the convention with a rousing speech, declaring to make america great. he will first make america safe. cnbc has the latest from
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clevela cleveland. >> reporter: in his most watched speech, donald trump rallied republicans. >> together we will lead our party back to the white house, and we will lead our country back to safety, prosperity, and peace. >> with his wife melania watching, trump told voters he sees a law and order crisis. >> politician who does not grasp this danger is not fit to lead our country. >> reporter: meaning his opponent. >> this is the legacy of hillary clinton, death, destruction, terrorism, and weakness. >> reporter: to make america rich, donald trump vowed to redo trade deals, lower taxes and lessing regulation to grow the u.s. middle class. >> i am your voice. nobody knows it will system better than me which is why i
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alone can fix it. >> reporter: he is definitely the voice of republicans who hope this convention hopes unite their party behind donald trump. nbc news at the rnc in cleveland. >> joining us now for some more analysis on the market here is founding partner of libra investing services. pleasure to have you around us at the desk. yes, big focus at the political situation, but you can't take away the attention of the banks here. do you think that explanes the market reaction here or is that all natural breather. >> i think it's a natural breather as a consequence of everything we've seen with brexit more than anything else, and i think people would have been looking for more from draghi if markets had been in greater disarray or seen pmi
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numbers looking lower so to a certain extent they were looking for -- i don't think they expected anything from draghi because it was too early. i think markets reached the capacity at the moment. >> and we did of course here draghi saying, look, markets worked the way they were supposed to. we did not see any mass panic and despite the modest red arrows at the end of the week, important to keep in mind the ftse has made great gains post-brexit. we're looking at the stock 600, but still considering the doomsday, this is not altogether that bad, is it? >> no. this is a shock to everybody. i think you can look in the rearview mirror and say well, actually, this is an allocation decision. this is skbha explained by that.
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equities is the only place to be invested in. the quest for eyield. i think this is shocking. i'm amazed people took the 2u7b9 and have. >> you have some specific stock picks for us. we'll get to those in just a little bit. in the meantime, viewers get in touch. you can find us at twitter. meanwhile, getting back to the global political picture here, the u.s. presidential rate, brexit and global monetary policy will likely to be the main topics at the g 20 meeting in china this weekend. let's get out to you nis is is outside the meetings. he said we really need to see a show that they were willing to work for stalktbility, but what does that mean in practice. >> reporter: i think it's going to be a combination of greater
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monetary policy as well as fiscal stimulus. that's been a lot of the discussion here. of course brexit is front and center, but what is also a topic of discussion among officials here is the tough talk by donald trump. overnight the republican nominee in his acceptance speech had heavily criticized china, awe accusing it of cheating and being a currency manipulator. usually the common practice among chinese is not to comment on other country's affairs because they don't want to be seen as metaling. other officials have been quite critical of the republican party for their own accusations of beijing so i actually pose a question to the vice finance minister of china who is attending this forum asking him about the description that trump has had of china and he said it's important that china and
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the u.s. really work together and focus on the trade relationship between the two. this is what he had to say. >> the u.s. policy we have no comment on specific candidates. we really believe economic relation between china u.s. is benefit for chinese and benefit for american people. and the poboth china and united states enjoy the real benefit from economic cooperation. now our trade investment continue increase. that's the benefit for our two countries. >> reporter: now, increasingly american companies as well as european country haves been heavily critical of china for not what they see as playing fair, but at the same time, most of those experts don't necessarily agree with trump's proposed solutions such as 45%
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tariff on all chinese goods. that aside, the other big topic is brexit. i asked the vice finance minister about that and he said he saw the uk referendum as the current biggest risk to the global economy. this is what he had to say. >> we hope the meeting can boast the global economy and promote financial market stability. after uk referendum and the financial market, but we can see the financial market finally show very strong resilience and we hope our discussion can take that strong monetary fiscal policy to promote global economy, staustainable balance d
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strong growth. >> what do you think the biggest risk to the economy is today. >> the uncertainty for the next two years. we really look for the success of negotiation and making the transition successfully. that's indeed important for uk, for you also, for the world. >> one area that economist are concerned about when it comes to brexit and chinese economy is exports. do you share those concerns. >> because that's economic growth it's a slow down. we see gdp already face a big slowdown pressure so that's why we must have policy cognition. >> after the brexit shock, we saw quite a bit of downward pressure. do you expect we're going to continue to see that type of pressure on the chinese currency for the rest of the year.
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>> that's the economic fundamental in china is good and economic resiliency is very strong and economic growth is 6.7% for half of the year. we believe continued stability and for the long-term, not any reason for devaluation and we will continue reform to show and reflect the market situation. >> reporter: and probably the most eagerly awaited vip here is the new uk chancellor, phillip hammond, he's currently in beijing and he's traveling with a very large uk delegation. his main message, nancy, is really that london is open for business and is going to retain its position as a leading financial center.
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at the same time we know there's a lot oe question about that. it's creating uncertainty and it's going the be a big topic of discussion here at the g 20 meeting. >> and such a big part of david cameron's administration, i think people want to see if anything will change under theresa may. thank you for that update. meanwhile, let's get back to the equity picture here in uk. we are now just over an hour into the european trading session. with me around the desk is rob mcleerily, in this environment you've been taking a closer look at the fair volume predicate rix here. what are the stocks you like. >> we continue to go for growth. it was a very good article a couple of days that talked about people sort of suspicious the markets fully valued here and you can't find stocks and can't find value. you absolutely can. you can't find cheep stocks, but stocks with gross trends and
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that's essentially what we continue to look for. >> tom picks. >> tarla is an consistent buy. they proved again to be the case today. you have rising value trends. the market hasn't been. they've woken up to the fact and rallied as a consequence. we have taken profits. slarl sorts of things. the marketoverpaying for much right now. >> since we are just about a month since the brexit vote, it's worth taking a look at some of the most brexit sensitive stocks and i want to talk specifically about the house builders. there was a bit of relief after the dramatic fall following the names of the shock vote. what are your thoughts there. >> when we had the brexit situation, i think everybody lnl
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choked on their corn flakes to a certain extent. we had all our indicators showing extremes of value. extremes we haven't seen since 2008. that was in relation to longer term growth trend. a great opportunity for people to steb p in if they believed everything was going to be okay. it was once in a 10-year opportunity. now what's is there are undoubtedly going to be consequences and share prices have rallied. those value trends are beginning to roll over. we've had great trading opportunities in the last month, but if you're still earning those stocks, you have to recognize the fact there are some uncertainty out there. less risk being priced in and probably time to take some money off the table and. >> we had the same william easyjet which were correctly marked down. you had a great rally.
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now you see people waking up. this is about terrorism more than brexit. so as far as the uk stocks are concerned, if you can't see growth going forward, you really need to assess whether you want to be in these stocks or not. >> all right. rob, stay with us. i also want to get your thoughts on the banks too. that is founding partner of libra investing service. meanwhile get in touch with us. you can e-mail us. street signs europe @europe. i'm at nancy on cnbc. get your comments on now. we have 40 minutes to go. we will come back to you if we can and still to come, we will tell you, which company has been compared to a victorian workhouse. find out more after this short break.
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>> good morning and welcome back to "street signs." we see the dollar just.3 higher than japanese currency. i was was the yen we were watching after speculation helicopter money was off the table, sending the yen rallying initially. >> reporter: good morning nancy. you're quite right. highlight japanese equity skbs the currency as well because i think sentiment is very sensitive right now to any head license headlines of what the boj may do. we got that report yesterday
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quoting it was dated. it was from an interview dated back on june 17 if i recall correctly saying helicopter money is off the table so the damage was done on the japanese yen, the dollar yen, i should say. was weaker. we have seen a degree of stabilization now. i think the next couple of days we're going to see a lot of headline driven volatility as the speculation comes and goes on what the boj will or will not do in terms of policy direction and action. so yet appreciation, japanese equities down by 1% today, but broadly for the week, the market equities were higher by 1%. on on to boj next week. remember in the previous meetings, that i have have elected to sit on their hands and repeat this mantra if you
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will that we are waiting for negative rates to cycle lu the economy to cycle through the system and we're waiting to see evidence of 2% inflation getting to that target. that is the issue there. what are they going to do? they could hoover up more jgb and double up equity linked purchases, but the conversation remains about outright debt monetization and even there is there necessarily any guarantee we're going to get to 2% inflation and reflate the bauder economy so it's all about monetary shock therapy next week. let's not forget we have the fed as well on the 27th of july. i'm getting my days mixed up. that's where we stand. back to you now. >> that's right. the central bank waiting game continues. thank you for that update and have a fantastic weekend. let's bring you back to the earnings picture in europe. it was super thursday.
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today we're getting a check on vodafone. 2% rise in first quarter revenue. mobile operator brushed aside cuts in roming charging performing well in spain. growth in markets also beating expectations. syngenta proflts drop. the swiss chemical company which is being taken over by chem china still expects to close. >> we expect to get that done. we've had constructive dialogue with regulators around the world. these dialogues reinforce our confidence that we will get the deal closed by the end of the year and head into 2017 with full confidence and focus to drive our performance.
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>> meanwhile, the grounding expert testimoniations at dassault aviation, they are cutting the forecast. they also reported earnings that missed on to bottom line. they blamed economic and political uncertainties saying the brexit vote had put off some customers to purchase. getting another check here on thales sales. seeing growth in mature markets, but has kept it's 2016 markets unchanged. it says it is too early to draw any sort of conclusion for the rest of the year. over at fip lphillips light thal handed in their first report since may. reported a 16% rise in second
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quarter earnings. those sells fell 6%. the company said it is hopeful to return to positive growth this year. meanwhile, skanska's came in lower than expected. brexit has not yet had a direct impact only the operations in the uk, however, the company warned the commercial building sector will likely be hit. a bit of a softer tastier story this morning of at lint. they reported sales in the first half of the year. the maker of lindor truffles said sales should continue to rise, but cautioned on a difficult environment. lindt. sab miller with take another look. after the sharp fall in the pound which has made the offer less attractive.
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the $107 billion tieup was given the green light by u.s. regulators on end. still with us on the set is rob. we mentioned we would get to some of your thoughts on banks. i want to bring up saba dell specifically. you have a position on this one. give us your view. >> we looked at it originally because it was a devalue situation. you can do that in banks periodically. you can look at things and say where are they trading relation to fair value, our fair value. the discount that is there and the risk that is being priced is such that we can afford to buy the stock here. to a certain extent, these are the things that are beginning to worry us. worry us when talking to our clients and focus base. they're turning into value traps to an extent. >> is it just sab dell and spanish banks. >> in is a classic example. you take the view we need some good news and if you get good
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news you get a share price reaction and you get rewarded. these stocks are probably being priced appropriately. >> any european banks you like. >> the answer is probably no. bnp if you had to answer. we ag gra gate that value across the sectors. >> it's not just the banks balance sheet, there are other concerns. >> correct. >> there you have it. thank you so much for joining us this morning. that is rob, founding partner at libra investment services. meanwhile, working at sports direct is comparable to a victorian workhouse. that's the conclusion of uk mp which in a scathing report said the staff are treated as commodities rather than human beings. they said founder mike ashley must be held accountable.
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in response, sports direct says it treats their staff with, quote, dignity and respect. we have to take a quick break. we're going to be bringing you uk pmi data in just a few minutes. bewe do that, check out our world market blog. get all the speed on the moves when we're not here. we'll be back in just a few minutes.
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good morning and welcome back to "street signs." i'm nancy hungerford and these are your headlines. >> america is far less safe and the world is far less stable than when obama made the decision to put hillary clinton in charge of america's foreign policy.
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[ lock her up ] >> lock her up. crowds here as donald trump uses his nomination speech to slam his rival and cement his hard line on immigration. european markets lower. shares in vodafone jump after the mobile operator surprises to the upside thanks to strength across europe. and divided defenses. dassault aviation sink after cutting forecast after thales
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now on the manufacturing side, that is the lowest since february 2013. looking at the overall composite pmi we're getting a reading of 47.7. that would be the lowest since april 2009. we are seeing some significant weakness here in the first pmi reading since the brexit vote. you can get a check on sterling there just off. let's get straight to our guest here because chris williamson is joining us. it is not a pretty picture here. tell us the story. >> there's a dramatic deterioration in the economy it looks in july. the data we collected from the 12th right up to yesterday. this is all post-brexit. what we're seeing here is the
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largest point's fall that we've zfr soon. >> this goes back nearly 20 years. bigger in terms of the fall. even in the global financial crisis. we're not down to the level of contraction being signalled, but we're nevertheless in negative territory already. >> the first month since the brexit vote was held, do you expect this trend to continue or could there be some easing as people try to negotiate what this means over the exit. >> this is the big question, where do we go from here. the services which captures firm's views on where they think their business is going to go in the next 12 months, they fell as well. that was the largest points fall since 2009. firms saying they had contracts lost, cancelled, new orders just not coming in anymore which is
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predominantly linked to brexit uncertainty. the one ray of light -- well, there's two rays of light. they picked up the weaker currency. that was the fastest growth for nearly two years. that's why services lead the downturn here. also that confidence we did see signs of it picking up with the political situation having started to show some signs of stability was a big mental factor for them. >> perhaps the new leadership announcement helped. we should just note too as investors digest this data, the markets are reacting with guilt futures gaining of course, but the sterling falling to a session low there. they perceive this as quite ugly data. what does the bank of england think looking at this report because we did hear from christ christen forbes saying we're in no rush to take action. v. >> the pmi is hard data.
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not business sentiment. it's what happened this month as compared to one month ago. this is as close as you get to rapid data. it's sendsing a clear signal that businesses want to see some signs that the economic situation is going to be turned around. policymakers wl policymakers, whether it's the government or the bank of england need to sure up confidence to stop this further: that's the signal from the bank. let's not waste any time. let's send out clear signal. >> steve: >> one reason not to waste time is they are trying to ward of recession. what are you thoughts looking at this initial data here. >> it's going to be really difficult to avoid a third quarter contraption with the index falling this low. it's going to have to rise sharply in the next two months to stave off a downturn. whether off that persistence the rest of the year all of course depend on how the situation develops, the brexit negotiations in particular.
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it's looking quite ugly at the moment. you can expect some contraction of the economy. whether it lasts the six months or not to make a recession in doubt. ting chances are you're going to see a lot of people changing their forecast now to a mild le session at least. >> the uncertainty around how these goerngss play out of course raises questions about the euro zone growth. overall germany did better than expected, but other countries not so strong. what do you think the toll will be on the euro zone. >> they were really quite encouraging given what you saw during the month with brexit, with the attacks in france. so we were quite reassured by those. yes, business confidence slipped to a 90 month low across the region, but this is holding up well. signing weakening of the fronts in europe. that's the worry. a lot of political instability coming up there and that's going to intensify the situation. there is going to be an effect on brexit.
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purely through that political uncertainty creeping in. >> mario draghi was a bit reticent to give outright forecast. heard from elite document given to the uk counsel in the first days after the brexit vote it could be 0.5% of the euro zone. do you think that's accurate. >> well, based on the pmi numbers we got, there's little impact come through there at the moment. so it could be as mild as mild as that will quite easily, yes. >> of course the impact of sterling here, whether or not that will continue to be a stimulus that can offset the weakness elsewhere. what are you thoughts. >> that flip side of it the way it increases our cost. uk manufacturers, they rose at the fastest rate for five years as those specially imports from
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u.s. and dollar denominated terms spiked higher. that's going to eat into margins and push extra cost on to customers which means some gain is going to be lost. >> chris, it's been fantastic to have you here. breaking the first uk pmi's since the vote. that is is chris williamson, thanks for joining us. meanwhile, back to the race for the white house. donald trump has formally accepted his nomination. in the longest speech since 1972, trump called for remediation for my country compromised by terrorism. america cannot afford political correctness. he took several swipes at his opponent hillary clinton describing her at puppet for big business, elite media and major do anymores.
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>> america is farless safe and stable than when obama made the decision to put hillary clinton in charge of america's foreign policy. >> trump also reiterated his plans to build a great border wall to stop illegal immigration. as crowds chanted build the wall. >> we must immediately suspend immigration from any nation that has been compromised by terrorism until such time as proven vetteding iin ining meche been put in place. we don't want them in our country. >> nbc tracey pods joins us from the national convention site in cleveland. it was a resounding message of fear from donald trump last
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night really highlighting the world is a scary place and i am the one to defend you. how do you think it was perceived not just by his fans, but some of the undecideds in the gop as well. >> that's what we wait to see. what we know is donald trump stayed on message, stayed on script this time. he talked about hillary clinton, but the main focus of this hour and 15 minute long speech was what trump wants to do for america. his foreign policy as you just noted kwies isolationist. insular looking into america to see how we can protect ourselves and no so much with the rest of the world. he talked about trade and h. and more jobs back to the united states and then the moment that's trending on social media this morning that was really
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uncharacteristic for republican nominee, he talked about protecting the rights of gay and lesbian americans. that was something unusual. he even stopped his speech and said that's something i'm glad to hear republicans applauding tonight. that's something a lot of people are talking about this morning. he threw a lot of things out there, taxes and school choice. he didn't really talk about how to pay for them. >> now that the republican convention has wrapped. big focus turns to hillary clinton and who her vice presidential nominee will be. some say we could get that announcement today. what is your expectation. >> reporter: it's possible we could get it today. it's not unusual at all. typically the party that is doing the second convention will wait until after the first one is over and often that announcement does come on the day after. a lot of talk about tim kaine, the virginia senator who is in line with hillary on a lot of
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policies, but also represents a key purple state. it's virginia that the campaign expects to be donald trump's first campaign stop after leaving ohio. he's still here in morning meeting with supporters. >> thank you for that update. we look forward to all the exciting announcements if they come throughout the weekend and hopefully see you on monday. have a good one. here on the set to join us with more reaction is dominic dire. dominic, thank you for joining us this morning. it's been a busy week on the republican side here. some said the convention didn't exactly get off to the strongest start, but overall what is you take? how do you grade it? >> i think donald trump would be happy at the end of the day. a lot of people expected demonstrations and riots. that didn't happen. the were problems on the floor with some delegates saying they weren't happy with him being anointed the republican nominee, but the they closed ranks. if you consider where he was 12
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months ago it's incredible. the speech was based on fear of what's been happening and terrorism and the economy. it is resinating with a significant number of american vote sglers it resinates particularly strong with his support base. what about the undecidesundecid has he succeeded at winning them over. >> it's interesting how the media reacted to him. they haven't been largely attacking him saying he's no longer a credible candidate. they've been treating him as such. even issues on the floor, ted cruz's speech where he wasn't going to endorse him, they were quite sympathetic saying he actually came there and should have held out an olive branch and didn't choose to do so. the american public are looking at trump as a more serious candidate. of course fears, but this idea he's maybe not up to the job is not what the media are attacking him anymore.
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>> some look to his vice presidential pick, mike pence, as part of that effort to become a more moderate candidate. a safer candidate, you could say. when you look at this convention, it was hardly about mike pence. ted cruz is the real harm it stole the limelight from the vice president. >> possibly, but at the end of the day ted cruz looked bitter that he wouldn't endorse the president. sarah palin wasn't invited. this was about trump, about his brand, about his personality. he used his family very well in terms of giving him critical support. vice presidential is seen as a safe pair of hands as a conservative in that sense as well. >> i want to get your thoughts on hillary clinton. she could be naming her vice presidential pick. tim kaine from virginia, what do you think. >> i think that could be a strong pick. there's no doubt about it, but hilly serious questions about the trust factor. the fbi investigation on her e-mails really opened up
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questions about her judgment. she wasn't held accountable for criminal action, but people feel is there a real trust here around this candidate. the media is going to focus on that next week as well. >> if not tim kaine, who do you think would be her best vice presidential candidate in terms of restoring trust. >> maybe picking a woman candidate as well would be interesting compared to two men on the other side of the equation. we'll have to wait and see. >> it will be very interesting. i'll have to bring you on during that time. that is dominic dire, fellow at the british american project. well, still to come on the show, after that dismal pmi data, can the uk chancellor drum up business from china. we'll speak to the man next after the break. nnouncer: don'i mosh with your food.
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an estimated 3,000 americans die from a foodborne illness each year. so, always separate raw meat from vegetables. keep your family safe at foodsafety.gov
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joining us now is lord sas soon. it is a real pleasure to have you on the program. we've been talking a lot about the big expectations for hammond's trip to china. a lot of the g 20 leaders waiting on him as well. what was the message in your meeting today specifically. the great thing about the meeting is it was essentially a meeting between old friends. phillip hammond may be knew as chancellor, but he's had huge contact with china in recent
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months. he's very familiar with the landscape here and the other participates around the table were financial services practitioners, regulators, many of whom have been doing a lot of business together. it was really a sense check taking advantage of the fact the phillip hammond in in china for the g 20 to see how everyone was feeling post-brexit. the mood was very upbeat which was great. >> that's an interesting point that mr. hammond represents an element of continuity in the government because we know under david cameron and chancellor osborne relations with china, investment from china was a big part of their push. do you have any reason to believe it will be different under theresa may given so far in her first week or so we've heard a lot about domestic, social justice, equality right here at home. >> all those of course are a critical issues for the government, but all i can say on the basis of what we've seen so far from the government and it's
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the first foreign visit which the chancellor has made since his appointment, it's the first cabinet minister to visit china since brexit although the trade minister was here a week or soing a. ago. the government seems to be focused on china as they had been before. the key thing is they are putting business interest first. i'm very happy to see. >> and that's the message coming from the uk. what is the feeling on the ground in beijing because you have extensive experience with business leaders not just in china, but throughout the region there. just how concerned do you think they are about brexit? >> well, actually the messages at the round table and it was a two-hour round table so a lot of time for people to speak. was overwhelmingly positive so we were hearing from some of the largest banks, the chairman of
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hsbc on the uk side, but the chairman of bank of china and senior bankers from icbc and the china construction bank continuing to talk in very positive terms about developing the uk as the international rnb center pointing out from the chinese side that london had recently overtaken singapore as the largest center for rnb trading outside greater china. so that was a good foundation. and then we went on to hear from some of the chinese asset managers who were making the point that making acquisitions in the uk is just as attractive and easy to do today as it was a month ago and they are as hungry as ever considering all the factors around brexit to carry on doing that. so it was a positive message. of course there was some markers put down about the need to make
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sure that london's ability to benefit from passporting and clearance and so on of securities. these are things which the chinese want to see, but the chancellor could not have been clearer. the priority he gives to financial services in the brexit negotiations. >> is there a sense of urgency coming from leerlds executives in china the same way we're seeing on the continent in europe that time is of the essence here. are they in any way pressing mr. hammond to press the government to bring about oorld as soon as possible. >> there was no mention of oorld 50 in the meetarticle 5050. thinking about what might go into a free trade agreement. they're looking through all of that to see what the opportunities are now for the two countries to develop even deeper services links.
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china those that london is the global financial center that china wants to have a increasingly deep stake here. i saw nothing today that in any way dents that. they see the opportunity form a bilateral agreement that takes things further. >> and just outside of the bilateral agreements for a minute, i want to ask about the global perception of this move or reaction against perhaps against free trade because in the wake of a brexit vote there were concerns linking it to an upcoming election whether that would build momentum for the trade. is donald trump a big topic of conversation there this your meetings and what is the feeling on the ground. >> there is so much to talk about on uk china that i'm sorry to disappoint you that we were all waiting until we got out of the meeting to catch up on the trump speech and it didn't come
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up once. >> when it comes to the talk of the uk moving to the front of the q now prioritizing with the u.s., how do you view the trump presidency? >> well, i think that on both sides the uk and the u.s. fully well understand the absolute importance of the trade and investment link so i'm hopeful that it will be in the front of the q. here i am in beijing 12 hours away from dallas keuchel and new york. i'm just ffrom dc and new york. i can tell you that beijing certainly appears to want to be at the top of the q as uk ministers do so we've got plenty to work on.
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here. here. it's $80 billion of bilateral trade. we're the uk is the second largest trade partner for china and europe. it's the preferred destination for chinese investment. they have one or two queries, but the mood is they want more and they see this as an opportunity. >> fantastic. well, lord sas soon, thank you for joining us. that is lord sas soon chairman of the business counsel. >> let's bring you back to the equity picture in europe with just a few moments to go. the xetra dax the only major market in negative territory. remember when we started the show, all the major horses were dipping in the red. a sign of pause perhaps as investors watched wall street breaking the nine-day winning streak. the ftse 100 climbing back into positive territory and the ftse
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mib. of course irngs remain the big earner here. concerns as those companies warning on growth obstacles and so much gop political uncertainty. a refresher how the u.s. did close if we can get a picture of the main markets. the dow jones breaking its winning streak. and the nasdaq composite off just .3%. reprice the odds of a fed rate hike this year. more investors. some encourt and jurying data once again on the job list weekly claims as well. that's another thing to keep in mind as we await the fed decision next week. let's get a look at how futures are called. called slightly higher. similar story for the dough jones called higher just under 30 pountds and nasdaq higher by 9 points. it was a big day of earnings in the u.s. just like it was in europe. a bit of super thursday in their
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own right. starbucks shares falling aftershares of the coffee chain missed estimates for the third straight quarter. starbucks reported global cafe sells rising 4% in the third quarter. that was short of the 5.6% expected. this as demand weakened. the seattle based company sounded a cautious tone with its guidance as well saying it now expects full year growth to rise at a single percentage rate. that was down from a previous forecast. >> shares at at&t are low. revenues missed analyst forecast and reported a fall in paid tv customers. america's second largest wireless customer posted fiscal earnings for a share of .72. that compares to .70 in the year earlier. over at visa the company announced a $5 billion buyback.
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the company posted adjusted earnings per sha of .6 which did rise over 10%. meantime, visa also announced a deal with papal to announce the service as a mobile payment option in stores. venn mow will be able to link to visa debit cards to users can instantly withdraw money and according to the deal which comes after a year of negotiations between the two companies, this rel solves some uncertainty for papal about the fees it pays to visa. a lot of action still happening in the payments phase. that is it for today's show, have a wonderful weekend. i'm nancy hundred dollsi. "world wide exchange" is come can go up next. look at today'
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wall street, straight ahead. food for thought. starbucks and chipotle fall short. the consumer is in focus. that's coming up. plus, your money, your vote. donald trump accepting the nomination for president. it's friday, july 22, 2016 and "world wide exchange" beginni n right now. >> good morning. happy friday

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