Skip to main content

tv   Street Signs  CNBC  August 10, 2016 4:00am-5:01am EDT

4:00 am
a sleep number store. hi, everybody. good morning. welcome to "street signs." dplad you're with us. i'm louisa bojesen. this are your headlines today. european stocks edging slightly lower with ian leading some of the losses. run low on energy. g 4 s soaring to the top of the stocks 600. confirms entering dividend and seeing substantial progress in the turn around plan. now the bank of england new bond buying plan hit some problems on only the second day of operations as the bank falls short of the guilt purchase
4:01 am
target. we're expecting a statement from the central bank very shortly. and donald trump once again at the center of controversy at he suggests united statesing the right to bear arms to stop rival hillary clinton from appointing judges. >> all right. welcome to the show, everyone. i'm very glad you're joining us. it's wednesday. middle of the week. looking at the flashing coming through on the wires from the bank of england. they say they will be incorporating 52 medical pound short fall from tuesday's reverse auction in the second half of the six-month bond purchase program. so that's what we have so far from the bank of england. it's coming off the back of what was seen as being a bit of a disappoint from them in their initial bond buying program time
4:02 am
frame. they fell short of the target to buy just over a billion pounds of uk government debt. we saw that even yesterday the sellers were being offered higher prices of market level, they still fell sort of the guilts. didn't go to plan. inkompting 52 million pounds the short fall from the reverse auction in the second half of the bond purchase program. we'll let you know if they say anything else as the statements continue to come through. ian is the founding partner of capital generations partners. good morning ian. >> good morning. >> what are you thinking with regards to the bank of england. they gave the announcement last week they're upping all of their stimulus, but it's not going too well on day two. >> it tells you something about investor's anxiety. the bank goes and says, look, we
4:03 am
want to buy these things from you. we're prepared to pay what looks like a good price. they get the majority, but not everything. that tells you investors despite offering a good price wants to hang on to against further deflation. >> in the defense in the bank of england as well. they almost reached target and were looking at some very quiet summer months. could have been different basically is the indication had it been another month. i'm not sure that holds, whether there's seasonality to it as well. >> that's part of it partly this is not the bank of england didn't want to do thm on its own volition. they were forced to do and needed to do in the light of the brexit vote. in terms of timing it wasn't in their control and they may also wanted to send a signal. maybe it's not helpful to them
4:04 am
because it's a signal they remain a strong for guild. >> you're saying there's a real difference in what and how to own it. how am i supposed to interpret this? >> i think the challenge for an investor today, let's take u.s. equity for example, we had an all-time high on monday. innova investors are air issing i want to own this market that continues to go up and on the other hand i mindful that it's gone up a lot and therefore am i going to be the last buyer. am i going to look foolish. it's exciting and dangerous at the same time. there's an alternative which is rather than buy accident cashties you express that through buying call options. >> so the right to buy puts as well?
4:05 am
sell? >> i think both work. if you're an investors -- we had a client recently had a substantial amount of liquidity. wanted to know what they should do with it. feel they should own equities, but you can express part of that by buying call options. >> we'll get into receiver options. a term you may not have heard of. receiver options stay tuned for more on that front and what exactly you should be looking closer at in these markets. great if you can do that with the partners. to increase your holding in your partner if things go well. e-mail the show, address is you can also find us on twitter @louisa bojesen. if you want the get involved, i did per popular demand i retweeted the data before and after the brexit vote. head online and find that on twitter and get involved in what you think about that. we would love to hear your thoughts on the latest donald
4:06 am
trump comments as well. is it too far for a politician to be saying these things? is it not too far? i did tweet out that little clip that everybody is talking about too and we'll be talking a little more about that later on the show with our correspondent out of washington. let's get back to the markets here. the top of the hour. stock share up 600. flat. flat, flat, flat. couple of points higher and our europe equity markets reflecting very similar story at the moment. mixed flat trade. ftse mib a little bit lower. it really is august. i think i'll be saying everything day during the month of august. sector is out there. basic resources up a bit. oil and kbas up a bit. basic utilities. we'll be talking oil in a second too. brent and the ie pex a little lower. we have august report due out
4:07 am
today as well. let's get back to the main stories. novozymes lowered. off by 8.5 pn%. the ceo told cnbc earlier the weakness was concentrated and not a problem for the business overall. >> we do see some softness of the top line compared to where we had planned to be and that's particular related to act really we saw softness in the american northern hemisphere and north american ag business in the second quarter. we're afraid we'll see some in south america as we get that season going. and in preparation for 2017 we'll see softness. the business is doing fine. agricultural is one of our major growth businesses. we're taking guidance down from two to four. mainly because of that uncertainty. >> now rk, eon has a significan
4:08 am
loss. speaking to cnbc earlier, eon cfo said conditions were looking good for next month. >> we are absolutely in the home stretch and therefore hitting all the milestones we have planned actually to early listing as i said after the overwhelming vote of confidence given by the owners of the company who deemed our strategy to be right to focus on two energy words. i'm not worried currently because if you see what's going to happen, what is happening at t commodity market, there seems to be a change of sentiment. also regulatory items are going in the right direction. if you talk, for example, the uk. frengt the markets. sweden abolishing the tax on nuclear power plants so, yes, it
4:09 am
is still a challenging market, but if you have a good portfolio and good management team, i'm not worried looking at september. >> now g 4 s shares on pace for best day after a jump in first half revenues. british security firm says demand for certifies had remained positive. reporting a slight dip in the debt saying that reducing leverage remaining the key property. shares have fallen by more than 30% in the past 12 months or so. over the last three months. see that higher by some 15% though. tdc shares trading shyer after it beat second quarter revenues. particularly strong growth in norway which rose by almost 10% year on year. staffing company adeck co-rose by 7% in the second quarter. revenue increased 9% in the
4:10 am
italy. 11% in spain and sport gull. that offset a weaker performance in north america. also made clear the group is not looking to counter rooufl the bid for monster. >> we are not interested in monst monster. i cannot comment on the strategy of the competition, but what i can say is also for us we have a three pillar strategy. we are digitizing our latest asis tense. we are also deflopping what we call digital officer. we are launching online couching. we are working on online staffing and online recruitment and also working on technologies and offers. >> the no terror rously bearish faber is predicting a drop in
4:11 am
s&p. told cnbc trading nation he was unconvinced by the recent run up seen in stock r stock markets. ian still with us from capital generation partners. ian, the warning coming from faber there, 50% drop, potential drop. granted he is bearish. we know that. do you think that's a possibility still or are you still looking at the market as having legs to the upside. >> the future is hard to forecast. yes there's a possibility what probability you attach to that, i don't know. obviously he has a higher one than i would have. i would turn it around and say it's at moments like these when a call option buying strategy is an attractive part of how you gain broad investment exposure for a long-term client. what's the benefit of options? two things. one is that you get this
4:12 am
asymmetric payoff. if the market goes up, you capture all of that growth. if it doesn't, you're downside is capped at what you pay for the option. >> yes. >> and they're relatively cheap at the moment. the irony is as we near the end of this investment cycle, volatiles are low. this strategy is cheap to execute. >> what a refer swapgs. >> a refer option is the right to buy fixed rate to buy a swap in the future. so it's a way if you buy a receiver swaption you are betting on interest rates going down further so if you wanted to protect yourself against further falls and sbrens rain interest rates you could buy receiver swapgss. >> are you seeing a lot of demand for that at the moment.
4:13 am
>> what we're seeing at cis clients and prospective clients sharing anxiety with us. many markets have gone up a long way for a long time. we want to be a part of that. we're fearful of what tchl outcome is. our recommendation is part of what you're doing, look at using options to express a view when the future is asymmetric. >> are they popular at the moment? we go through periods of kind of huge popularity in call options. and then it kientd of retraces a bit. markets are doing pretty well at the moment and there is still a lot of optimism out there. especially when looking at the u.s. i don't know what you thoughts are in the u.s. are you seeing a big increase in the demand for options at the moment. >> while we're doing it, yes we are. as it worked for us, yes it has.
4:14 am
does it offer a solution to what do i do now to u.s. equities, are they fairly valued. could they come up further, yes. is there ale possibility faber is right and they could fall more, yes. what do i do in that situation. that's the answer we're trying to give. >> ian, thanks for being with us this morning. now you know what a receiver swapgs is. go home and tell your partner about that tonight. a fonding partner at capital generation partners. euro star rail workers striking for seven days in august. employees of the channel tunnel train link are staging the action due to a long standing dispute over work life balance. the strike is going to be taking place over two august weekends apparently so be aware of that if you're planning to travel. the owner of pep pa pig said
4:15 am
the board has union massly turned down a offer of itv. entertainment one owns the popular cartoon franchise saw the jump on tuesday on speculation of an offer. given the full run down by friend of mine with small children recently about how popular pep pa pig is in people's households with small children. >> it's absolutely true. >> you know everything about pep pa pig. >> almost everything. >> that's brilliant. alley bibaba has after i gr with the french provider, ingenico. operates in 170 countries and alley pay in 70. keep your tweets coming through. keep your e-mails coming through as well on e-mail.
4:16 am
it's "street signs" at cn-- you can also find us on twitt twitter @louisa bojesen. we'll be talking trump and talking data points later on in the show. also coming up all eyes on senators in brazil. they voted to indict president advancing an impeachment trial. the latest on this story coming up in just a couple of minutes.
4:17 am
4:18 am
(music plays from one way or another )♪♪ ♪ i'm gonna find y♪ i'm gonna getcha ♪ ♪ getcha getcha getcha ♪ one way or another ♪ ♪ i'm gonna win ya ♪ i'm gonna getcha ♪ ♪ getcha getcha getcha ♪ one way or another ♪ ♪ i'm gonna see ya ♪ (inhales cigarette) hello, peeps. good morning and welcome back. you're still watching "street signs" on cnbc. the reserve bank of australia chief has said in the final speech there are limits to what stimulus policies can achieve.
4:19 am
shri is in singapore. more and more of the central bankers are starting to sound a similar tone. > . >> reporter: exactly. the central bank's message is the same. come on you chaps in the fiscal authorities. you've got to start carrying and doing some of this heavy lifting as well. you're going to continue to see this dynamic as monetary policy starts to hit the buffers. 1.5% i would say the rba still has wiggle room and the jury is out whether we're going to see another rate cut by the end of the year. you have to bear in mind inflation still looks quite benign in australia. another big head ache is the currency. despite the most recent rate cut of 25 basis points, the australian dollar is still quite top heavy. this is what it's doing right
4:20 am
now. we're above .77 to the u.s. dollar. we're looking at three-month highs there. another country in which this is a big headache is south korea swell. we saw the local currency at a 15-month high. the bank of korea moeets tomorrow. a lot of the currency in this region especially the aussie dollar and the kiwi we have seen a lot of dollar flows. almost victims of their own success. when we see a dip in the aussie dollar, those yield hunters who are out in force over here get in and bit that bad boy back higher. big problem for the policymaker. great deal of conviction. all comes down to central bank policy. >> i don't know. i know nothing. absolutely nothing these days
4:21 am
especially. >> gaps in my knowledge too. >> i doubt that. thank you very much. joining us there live out of singapore. now, brazil senate has vote instead favor of indicti inin i rousseff. the vice president has assumed the post of interim president since her suspension last may and will become president if she's permanently removed from office. head of emerging market research, peter, welcome back. >> thank you. >> let's start with the political front. so we now know they voted in favor of indicting rousseff. it's not a big surprise, is it? >> no. i don't think it is at all. this process has been going on more or less since december of last year. when we finally got the de facto
4:22 am
push last may, the vice president has taken the presidency on an interim basis. now that we've moved towards an impeachment trial. i wouldn't be surprised if they happened sooner than later. >> is that going change anything. >> i think from economic perspective probably not. if you look at markets, markets have rallied massively this year in brazil against all the odds. >> yes. >> additionally it's a story. the markets view we're going to get a more fiscally responsible government in brazil. that's the idea. the problem is we've actually seen a lot of talk from it will administration, but not a lot of action. you're still looking at an economy running fiscal deficit. primary deaf sis roughly 2 .5% of gdp.
4:23 am
unemployment continues to skyrocket. it's a lagging indicator, but nonetheless, indicates we're still in a deep recession. >> 11 million unemployed. >> very, very large. >> so if it's not going make a difference, then why do we continue to buy into brazil at the moment? are we then back to what you initially said, the dollar story. >> the dollar story. additionally if you look at most emerging markets at the moment. they're all on fire. currencies are going through the roof. hard currency bonds going through the roof. and, again, this is primarily a reflection of what's happening in developed markets where we have incredibly low yields. central banks continuing to print money. ecb continues, eoj and people talking about helicopter money. consequently with yields, people are rushing in. >> sorry, i just got distracted. i got a tweet from anthony.
4:24 am
i know this viewer well. hello and happy to have you with us. how about the commodities and the impact there. >> brazil is a commodity exporter. that is well-known. part of the commodity story is the china stabilization. beginning of the year, we were all very afraid we were going to see china fall off a cliff et cetera. that simply hasn't manifested which is our view at the time. bumpy rather than hard landing. china is a big export market for brazil. the combination of both those things has lead to markets discounted sort of. worst-case scenario for brazil. >> i'm looking at the lira as well. any reason to see a turn around in the lira story? >> no. lira is a couple of things. main thing for me is if you look at lira, it's completely under
4:25 am
performed the broader rally. worst in class. the point really isn't so much to jump into lira now, but rather when sentiment changes and turns against emerging markets. that's when you'll see real lira performance. probably when that happens we'll see what the fed is doing in september at that meeting, but until that time probably not a lot is going to happen there, but certainly i wouldn't gauge in long positions. you would say take some risk off the table when it comes to brazil at the moment. >> brazil for sure. it's having an enormous rally. we've done 25% in spot terms. 35% in return terms. so these rallies never go in straight lines. always a hick coupcup. >> have 35 thousand a year go and 50,000 now.
4:26 am
>> there you go. >> thank you for spending some of your morning with us. head of emerging market research at commence bank. have you been watching the olympics? following the medal counts? >> no. >> it's taken a while to get into it, but the swimming legend michael phelps continued to had to his record count on tuesday. collecting 20 and 21 gold medal. avenged the defeat in the 200 meter butterfly. out touching japan by 0 .04 seconds. that's is like --. to earn medal number 20. later in the night he anchored the u.s. team to victory and great britain and japan finished up third. a good day away from the pool as
4:27 am
the u.s. gymnastics team took gold by the widest margin ever. they make it look so easy. this is ridiculous. powered by simone biles the u.s. scored higher than any other team and finished with an eight point lead in a sport often measured by tenths of a point. japan's men rugby seventh team shocked new zealand in the first round of the sports appearance. japan seated tenth out of 12 teams upset the third seated new zealand thanks to a late try in conversion. was made more difficult by the loss of star sonny williams to a ankle injury. that leads us to the final medal tally so far. team usa continued to wade widen the lead. american swimmer katie la decky remains her second gold.
4:28 am
and accomplishment not seen since 1968. so congratulations. we'll be back right after this short break. we'll be talking u.s. politics. travel lounges and oil. announcer: if you drive buzzed, it could cost you around $10,000. you'll face major legal fees, major fines, and steep insurance penalties. you could lose everything. buzzed, busted, and broke. because buzzed driving is drunk driving.
4:29 am
4:30 am
ledecky ledecky ledeckily hi, everybody. welcome back. you're still watching "street signs." your headlines today, european stocks very flat. eon leading some of the losses. g 4 s soaring to the stop of the stock 600 after the security firms confirms dividend. seeing progress in the turn around plan. no monosterile plan for adeck co-. the staffing joint tells cnbc he's not interested in countering the bid for the u.s. job site after beating
4:31 am
expectations in the second quarter. politics. donald trump once again at the center of controversy. suggests using the right to bear arms to stop hillary clinton from appointing judges. actually some stay he suggested more than that. you can head to twitter. i did tweet the little piece that everyone is talking about in terms of what mr. trump said and i asked you a neutral question. is it okay for politicians to say this or is it going too far. keep them coming through @louisa bojesen is the twitter handle. you can find us on that's the e-mail address. let's take a look at the u.s. futures and while we just dplans at the u.s. futures, you're looking at a slightly higher call. i'm just seeing that prudential
4:32 am
earnings are coming through on our wires. let me give you those main figures. first half profit after tax falling 54% to $687 million pound. first half operating profit for the period. just over 200 billion pound sterling. stating they're well placed to capitalize on structural trends and remain distinctive in their ashlt to deliver both growth and cash. capit which means that figure is down 6% just so stocks are popping on the back of these numbers up by 2.5%. european equity markets were flat until a little bit lower for most of these markets at the moment. the cac, dax, ftse 100. little bit off while the ftse
4:33 am
mib is trading just a bit higher in the commodity space. just showing you some of these commodities and some of the moves we had there. imex and brent pulling a little bit lower. you had the short term energy outlook talking about 2016 crude production will fall by 700 thousand barrels a day. that was less than the expected drop. you have the opec august report due out later today as well. sticking with oil, venezuela is in talk with exporters to aim for a deal to stablize crude prices in order to prop up the country's ailing economy. the push comes ahead of august report which is set to be released in a couple hours time. richard is a gop analyst. he's with us. good to have yo with us today. let's talk about the opec
4:34 am
monthly report. what do you expect? are we going to be looking at large revisions to their forecast. >> i don't think we're going to see real fireworks when it comes to the forecast. one number we heard some headlines about is the saudi production number for july which is probably going to be a record high on a mixture of good demand for exports, crude products and also high seasonal domestic demand as hot temperatures hit. that will grab some attention in the market. the rest of the report may not give us that much to talk about. >> i note you have some interesting thoughts on the declines that are seen in nonopec supplies as well and how you think there may be a risk that we're underestimating this declines that are seen. >> i think what happened is the market focused -- far less attention placed on places like brazil, china, mexico, the fsu.
4:35 am
all of these regions much lower investment and high decline rates are really causing us to lose a lot of supplies and that's adding up. while oil may be able to come back quickly as prices recover, most of these regions will take a number of years to rebound and return to a trend of growth, even if they can manage that. that's going to be really important for several years for the oil market and not getting the air time and coverage it needs. >> why do you think we've had this slight -- i don't know if i call it a rally, but a bit of buying taking place through the month of august so far in the oil commodity? why is that? >> i think this looks a lot like shore covering. positioning and momentum had turned negative in late july, but then what we saw was gasoline prices stabilize a little bit. that really halted the selloff.
4:36 am
we have headlines about another possible round of peck producer conversati conversations. i don't think it will come to anything. again stimulating a little bit of shortcoming. people don't want to be positioned in that way when you have that conversation going on. >> do you think any of the other oil leaders are going to be listening to the venezuela yans calling for this producer meeting. >> there are several countries that downtown want to rule out straight away. they don't want to suggest that opec can't cooperate. we've been through this several times before. didn't come to anything in april. didn't come to anything when they tried to restart the conversation. the market is going to be skeptical it can deliver any real results this time around as well. >> the saudi oil plan at the moment or long-term oil plan, are we seeing any changes on that front in terms of what they're willing to do for market
4:37 am
share versus price? there's a lot of speculation about what the strategy is at the moment and whether or not we're going to through some changes in the short to medium term. >> we're definitely seeing saudidy arabia price it competitively. that just feeds back to the crude pricing. we also see more light production. they brought online about 250 thousand barrels aday of expansion of one of their light fields and that is additional barrels they are putting into the market. i don't think we're seeing a dramatic shift. they're still looking for the rebalancing that has been taking place to reach its conclusion for prices to go back higher to help them balance their overall budget. they're also busy and it's very ambitious why the economic reform plan. >> richard, dwogood to have you with us.
4:38 am
looking at your e-mails. ray writes in talking about views on brexit. little bit long to read out loud. wilfred is staying in the states from what i know. you have to watch him on "world wide exchange" after this show. keep your tweets coming through on brexit by all means. i tweeted a little chart showing the data before brexit and after brexit. a lot of you getting angry with me saying i'm super impartial. i really don't care. i want to understand what's going on and life goes on and everybody survives and stuff it's not the end of the world. so all is fine. all is fair. also, i'm really enjoying seeing your tweets this morning too. i asked whether or not donald trump has gone a little too far in his statement and i did tweet the little bit that everybody is talking about. if you haven't seen it, you're welcome to find it online and let us know if you think that
4:39 am
his wording was okay or gone too far being a politician. whether a politician should have limited to what should be said. vladimir putin and counter part put aside differences during a high level meeting. relations between turkey and russia became sense when a plane shot down near the border last year. first visit abroad since the failed coup in turkey which put him at odds with a lot of people in the west. two leaders agreed to boost trade, tourism, and energy links: putin olive branch talks may be set to continue as the rush president has agreed to me meet theresa may. they stood on opposing sides in both you crane and syria crisis. phone call initiated by britain to patch up differences and
4:40 am
cooperate against terrorism. could be a good thing to have leaders speaking together. can't achieve a lot if you don't talk. on the campaign side, donald trump as i was just indicating has sparked fresh controversy with comments on the democratic's plan to reform gun control. >> hillary wants to abolish, essentially abolish the second amendment. by the way, if she gets to pick, if she gets to pick her judges, nothing you can do, folks. although the second amendment, people, maybe there is. >> well, the democratic senator chris murphy described the presidential nominee comments as quote an assassination attempt. condemn accident trump's speech saying a person seek to be the president of the united states should not suggest violence in any way. tracie potts joins us from
4:41 am
washington. causing quite a furry. what's the take from the states? i've been reading through the media reports and what was taked, whether or not he crossed the line. one report the went the gop must donald trump trump. a bloody line has been crossed that can't be ignored and that causing people to question whether or not this could help clinton. >> reporter: womell, and people were already starting to question whether or not donald trump crossed the line before he made the comments, but now you've got republicans saying wait a minute, step back. is this something that goes too far. it's that last part of what he said, well, people who support the second amendment maybe can do something about it. the democrats took as a vailed assassination threat that maybe peel who are gun owners should do something literally about hillary clinton. now, donald trump's people say that's absolutely ridiculous.
4:42 am
he came out roady giuliani came out and others saying he just meant that gun owners should go vote against hillary clinton so they don't lose their gun rights. he said it's the other side that's gone overboard with this. it has stirred a lot of furry. one of the most interesting comments came from former congresswoman who was a victim of gun violence. she said the problem is not specifically what he said and whether or not he meant for people to go out and commit violence against hillary clinton, but it's the fact that it could have influenced over unstable people who might be prone to bloodshed so maybe he didn't mean that, but it could certainly influence people who often tend to be his followers who might be prone to doing something like that. so a lot of people are talking about it this morning. trump tweeting overnight it's the media's overreach. they're trying to coverup hillary clinton and her stance on the second amendment, but
4:43 am
yes, absolutely. a lot of people talking about it here in the states. >> i continue to read through comments on this. and we're open to hearing all of your comments and whether or not the media is going too far or trump is going too far. whoever is going too far. has the race changed? we think back and think about how past races have been. we have a short-term memory as humans. we forget how nasty they think so were in the past and say now we've never seen anything like it. is the feeling the race and the tone of the race is changing even more or has it always been this way? >> reporter: so the whole idea was the tone of that primary was nasty and trump said this himself would tone it down in the general election. then we get comments like this that seem to stir things up. looking clearly by the numbers the race is changing because we're getting this larger distinction between hillary clinton and donald trump in the
4:44 am
polls. eight points, ten points. him losing support among white men and not college educated. hillary clinton gaining support in those groups which had been his stronghold so there does seem to be this pause by not all obviously, but a significant number of donald trump voters as we head into the general. now, obviously we still have a couple of months to go. haven't even hit the debates yet. donald trump hasn't made it clear if he's going to debate hillary clinton. the numbers today are certainly not taken to be what the number is going to be in november. >> then of course also maybe what a number of you are thinking out there as well. keith tweets in and saying just venting at 4:30 in the morning. can't below these are the choices. tracie, thank you very much to you. tracie potts at nbc use. keep your comments coming through. keith was haven'ting on his own. you can find us on twitter.
4:45 am
happy to take your e-mails as well. is where you can fiebnd us if you want to write in with more than 140 characters. gained one investor. willing to put millions of dollars behind donald trump's campaign because it was important to see him win: i can also praise trump's economic plans. >> i think he's right about the economy. in fact i'm going to tweet about that later today. he is exact lly right on. our country can exist when the government is at war with business. that's exactly what we have. coming up right here on "street signs," improving the airport experience. number one lounge betting or premium preflight services. what do you want to see at airports? feel free to let us know. we'll see you in a second.
4:46 am
4:47 am
4:48 am
hi, everybody. good morning and whabecome welc an impressive sports card from disney. shares dropped 2% in after hours trade. julia had the details. >> reporter: disney reporting better than expected results from the top and bottom line. growing revenue 9%. while earnings per share grew 12% to a 1 .62. that's a penny better than expected. driving the results strong performance in fact film studio as well as at the theme parks. perhaps the biggest headlines from disney's earning beat is commitment to digital. announcing it's buying a third streaming video company which plans to build a sports app
4:49 am
collaboration. we'll also use the technology to create new streams video apps for disney's other properties. >> we think it's a good investment. we love the business model. we think in today's world having the ability to scream on a scaled basis live sports and live programming is a competitive advantage. >> says the investment leaves the door open for disney to eventually bring the core espn service direct to consumers outside the tv bundle if and when it makes sense. in the meantime disney is adapting to smaller tv bundles. announcing seven biggest tv channels will be included in the directv now smaller bundle that will go over the top and direct to consumers that's in the works. back over to you. all right. we were just telling you about the bank of england a little bit earlier. just to recap what we're hearing
4:50 am
the bank of england saying that the conclusion of the full agents report is largely the same as in the august inflation report. the survey affirms that the eu referendum would have a negative effects overall in turnover in the coming year. this maybe fits well into the data points i've been tweeting that a lot of you have gotten emotional about. they're saying the agents report says business services growth is softer partly reflecting commercial property, firms also reporting slower consumer spending partly due to unusually wet whether. late june and late july. this survey just coming through via the bank of england. yelp strategy to focus on local business ads appears to be paying off. second quarter revenues hit $173 million flying past expectations. the consumer review website
4:51 am
secured a profit of almost half a million dollars. the company also raised it's 2016 guidance. signs of a turn around at coach. delivered better than expected fourth quarter earnings. >> sure coach's quarter wasn't nearly as bad as what we heard from competitor kate spade, the high end bag maker reported profits .04 above consensus. revenue did fall shy of expectations, but comparable sales in north america a very key segment for the brand gained 2%. a gain is something coach hasn't seen in that metric for quite some time. the company promised it would do it this quarter and held true this that promise. also outperformed the broader high end trend internationally posting double digit results in both mainland china and in
4:52 am
europe. in a move to sure up the premium brand image, ceo says coach is removing its products from 25% of north american stores. it's a surgical approach. removing the lowest volume locations, but they are concerned about the highly promotional environment that has been happening at the u.s. department store segment and gotten increasingly worse. that goes against what coach is trying to do, which is to take away it's promotional level and will restore that brand image at premium. >> it's about elevating the brand and making it more emotional and attractive to the consumers. >> reporter: aplouds the move and thinks it's was a solid quarter and reiterates the buy rating on coach shares. kourtney reagan, cnbc, business news. >> do you use travel lounges? do you go to airport travel lounges?
4:53 am
james? no, no, no. turning our attention to travel now, the outlook for tourism has weakened in the wake of terrorist attacks and headwind. the industry still seen outpacing economic growth. my next guest is taming into the increasing demand to up lux the travel experience. nobody in my gallery uses travel lounges, but you're saying that this is something we're going to see a lot more of. >> there's also a case of that little bit of extra luxury. luxury is relative term. people who consider luxury to be a private jet escaping to places in the world most of us would never get to, but for the most part, people want to use the little cafes and up lux their journey. a lot of travel nowadays is put together not by a tour operation, but by yourself. so to pick something nice on your journey and move forward in a nice little journey that suits
4:54 am
you. >> what does number one lounges do exactly. >> we take the dead part of the juryny. you spend a long time from your if you like from your driveway to t to the runway. doesn't matter where you're going. there's a big chunk of that time at the airport just waiting. you have to get there early. you don't want to miss your flight. you're heavily penalize first-degree you to miss your flight nowadays. people get earlier and start the holiday or take that pause in the business to have that insurance policy of some time well spent at the airport. >> you ordinary, reasonable, and prudent -- operate the lounges. >> we do. >> how does it differ from ba's lounge or something like that. >> most have their own lounges because they is a way of getting people to upgrade to the next cabin, spend more money with them or not fly with competition. majority of people who aren't entitled to use those lounges which are exclusive use by the
4:55 am
premium passengers so we provide the service you can buy online and indeed airlines have lounges everywhere. airlines and their passengers to us as well e. >> what's the most tricky part about this for you as an operat operator? sometimes i go in the lounges and by the way i'm not always in lounges. quite often not found in lounges because i can never figure out which card to bring. >> quite a lot of people have said they've been to lounges when they've haven't. >> sometimes they're so far away and it takes you 500 hours to get there. what is it that people really want and what's the most difficult part about managing a lounge. >> frankly nothing simple about operating a premium product in the airport. all operations are airside. there are cost implications of doing that. everything has a premium when
4:56 am
you're operating outside. the key thing of course is to be delivering a consistently strong product. 18, 24 hours a day. >> so you rent space in airports. >> we do. >> that must be super expensive. >> you could say that, yes. >> it's the high street plus. it's a funnel in which millions, hundreds of millions of passengers are being funneled. they're there. you've got them in a spend ready mood. it's a lucrative business. the airports can reasonably charge the rent for that. >> if i'm going to pay for your service, why wouldn't a pay a bit extra and get it from the big carry anyway. >> typically it's a different model in the u.s., but in the uk and europe you can't just buy the lounge from the airline. you have to buy the ticket. so the premiums considerable. and this just allows people to pick and choose because sometimes you'll be rushing through the airport and you want
4:57 am
want to use the airline. you may want to use a faster lounge. you buy them as you want. the same as hand luggage and hold luggage. >> great britain, do you have little sleep areas. >> we do. lots of places for relaxes. if you're giving people a chance to escape, lots of different areas to choose from. >> thank you very much. ceo of number one lounges. we will be back here on the channel tomorrow same time, same place. i'll be in on bit earlier tomorrow. you'll be in the capable hands of my colleague. that's it for our show.
4:58 am
4:59 am
5:00 am
good morning. tech is back. the nasdaq powers to a presh showing investors to put a risk back into the mix. disney magic. did the media giant make subscriber problems disappear. your money, your vote. donald trump was he misunderstood or out of line. it's wednesday, august 10, 2016 and "world wide exchange" begins right now. good morning and welcome to "world wide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost.


info Stream Only

Uploaded by TV Archive on