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tv   Street Signs  CNBC  August 12, 2016 4:00am-5:01am EDT

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good morning, everybody. welcome wk to "street signs." european markets relatively flat at the moment. german dax disappoints after gdp data. crude inching up. stabilize slippery oil prices. murs group slipping to the top of the quarter as it contends with the glut in oil.
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k and s sinking. german company is at risk for easing the quantitative pool. >> hi, everybody. fwoorng. just getting set up. as usual, get involved so i can use your e-mails. get them through early so i can use them and pose them to our guest. we have a strategist coming up imminently so any questions rounding off the equal, "street signs" europe @cnbc.com that's the e-mail address and you can find us on twitter @louisa bojesen. let's get to the market. very flat. called points to the upslide, but now flat leading into the weekend. when it comes to the sectors and what we're seeing there and indeed the overall market, but
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the sectors to the upside. oil and gis a bit higher. insurance and health care and autos all trading lower by a third of a percent. oil and guess an o tear overnight. oil and gas price settling higher by 3.4%. brent 4.5%. trigger more bying. you've got major producers meeting in all injuria nest month. speaking of oil, mass group announcing second quarter net profits of $100 million falling short of analyst expectations as it grapples with the slump in oil. revenues also missing forecast, but the shipping group keeping the outlook unchanged. spoke to the cfo asking how the
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firm is handling the current market volatility. >> we look at the overall market and when we look at supply demand and balance and also the growth in the world, it's really we still think it's going be low growth and volatile. for us, like always, we have a view on a couple of weeks, maybe three or four weeks indication of where the market is going, but after that, it's very opaque for us as well. >> is now the time to buy? we asked how investors can be sure we're not experiencing some type of a false breakout. >> every time i see it get by, it always seems to be the wrong moment. that's worrying thing. when you look at it now it just feels wrong. we had previous buy signals in my career and we just think buying equities now is the wrong thing to do. >> let's talk more about the
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markets and whether or not it's wrong. tim hayes is a chief strategist. it feels wrong is what a past guest was saying this morning. it feels wrong at the moment. it feels wrong to continue higher. >> i think that's actually probably true about the short-term, but longer term, we're seeing very good confirmation of the fact this is going to be sustainable market we've entered. >> you've done research and put out a report today; correct. >> yes, just toot. >> it's called 12 signs of continuity. i'm wondering what the 12 signs could be at the moment of why we should continue to invest in markets. >> these are basically the same conditions that have under pinned since 2013. we've been talking about a secular market since 2012. there is a for developments that
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happened in 2009 which are still bullish for the market. the valuations, as much concern as there is for that, are still reasonable, especially on a global standpoint. on a relative basis. stocks relative to bond yields. stocks remain very cheap. we should also think about ownership of equities. still a lot of cash in the sidelines. investors have not ka piccapitu on the upside. we have a monetary environment. remember, there's all this combination of easing. there's an expression called money moves markets. that's what's been happening. we've had a wave of this this year. a set of rate cuts and qe initiatives. then there's earning factors. what we wanted to demonstrate in the report is sort of see where we are along that speck strum
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and we had been at that maximum point of panic in 2009. at some time we're going to get to the other point of extreme greed and overvaluation. the kind of things we saw in 2000. so where are we in that spectrum, still relatively early and these can go on for 10, 20 years or more. >> do you think there's a big difference of what we're seeing in the states and what we're seeing here in europe and especially also when thinking about whether or not this market rally is fake. is it really based on, well, i want to say fundamentals, but i guess fundamentals is the wrong word, but companies for example and some of their pulling back in terms of hiring and things like that and their optimism. we have seen a pull back at least in europe and a large part centered around brexit recently. that could go away in a months or year's time. is there a sense of it being a
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real market rally or are we going to start to see uncertainty feeding through in 12-6 months down the line. >> the prior version of this report, we've been updating this report over the years and what we saw last year or two years ago, where he described it as the market was basically passing the duck test. it looks like a duck, kwax like a duck, it probably is a duck. this market has been up at a double digit annualized rate since 2009. you can't argue with the data and this is not just u.s., this is global. if you take the top ten stocks around the world from market cap standpoint they are up a double digit point since 2013. the stock market is responding to all the initiatives that the monetary official haves taken to boost economic growth. by the time we start getting the economic numbers then we're going to be at the point the investors have going to buy into
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the realization it is going to come through. then we need to be concern thad the valuations are stretched. by comparison we are out 20 pe right now on index. the u.s. benchmarks are relatively overvalued. compare that to 2000 when the pe was 50. that's the kind of level that you get at the top of a secular trend. >> i worry when i hear people telling me that we're like japan, we're just a number of years behind and whatever it is they've gone through we're going to have to go through the same thing. massive debt piles and especially after quantitative ease exacerbating the stimulus that's being input into the market and what happens when we start to withdraw it and we're at low levels with low levels of growth as well. >> the main thing we can look for in europe is if you think about maybe the u.s. has been leading the global trend in the sense that the consumption has
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started coming through. we got the wage point. the employment rate got the fed to start taking back the come. i wouldn't rule out -- i would be a little reluctant to classify this as another japan situation. the dpat is telling us that the markets are going the right direction and the economy is following as it normally does and the earnings are coming through. that's a key point. one of the justifications for people selling in the market last year was that earnings growth was going to weaken, well we got to an earnings trough and now the expectations have turned higher and this is a global situation where we're not seeing it in u.s., clear seeing in it europe, and around the world and earnings are picking up. that justifies the higher multiples. >> i've been asking people earlier this morning to tweet in questions so we can use them here on the show with good
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people such as yourself. jonathan writes in, currencies impacted by the rise in oil prices like the oz zi dollar, the canadian dollar, japanese yen, u.s. dollar, what's your thought on this correlation and whether or not we should be investing in currencies that are impacted by higher oil price if you think oil is going higher. >> i would think -- first of all if we step back and think about commodities and currencies from a secular standpoint. this is one of the factors we talked about in the report is that currencies and commodities tend to be in a trading range environment which is positive for equities. we know what commodity prices are going to be. we know what exports and imports are going to be costing. i would think about oil as probably rallying and that's going to be good for the more commodity based currencies, but this will be within a trading range so one thing to think about is watch the sentiment.
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we'll see it move between bands of optimism and pessimism. certain currencies get bought. sell off. the dollar will go up get high and come down. what's the missing ingredient is we don't have real interest rate differentials substantial anywhere in the world in this compressed global monetary environment where we have all the central banks around the world remaining accommodative we have zero or negative interest rates it's difficult to find a real advantage anywhere in the world. you have a suppressed environment with yields to currencies are driven by sentiment rather than fundamentals and i think that's what we will continue to see here. i think about energies and currencies being in a more trading range kind of environment. >> very interesting. tim, thank you very much for being with us this morning. greatly appreciated. have a good weekend. >> thank you. >> tim hayes, chief investment strategist at ned davis research. by all means. get involved.
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something to chew with the report more secular potential, 12 signs of continuity. e-mail the show as said. the address is striens europe at cnbc.com. you can also find us as usually live on twitter. either the "street signs" address or tweet me directly at @louisa bojesen. coming up on the show, toe shoe baa. bucked the trend right after this. it's friday. it's friday. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckl.
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(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) streetsignseurope@cnbc.com. hi, everybody. good morning. welcome back. you're still watching "street signs." i'm louisa bojesen. oil prices from it will saudi oil minister suggesting moves to support prices. he says that non-opec oil
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exporters will be joining members to discuss the price stabilization in a meeting scheduled for late september. rally happening yesterday. also underpinning prices are forecast from the energy which indicate crude markets are expected to tighten in the second half of this year. we're looking at a number of bigger oil companies out there all trading in positive territory this morning. not by much. now, wood group and trade unions. they've agreed to suspend the strike of shell's north sea oil pratt forms. dispute of pay cuts and working conditions forward group workers. commodity giant general core has put on hold plans to sell a chilean copper's mine. failed to attract high enough bids. that's according to reuters.
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unicredit is saying the company would become ineligible if it loses invest grade rating. has bought bonds from largest supplier it's expected the bank will not sell them if the firm loses it's eligibility. i just tweeted that we're doing bonds now because a number of you are writing in for questions with the last queguest. you've got to be awake. let's show you what's going on in the bond markets. majority of yields heading south as we've seen over the last year or long time now. got a repositions with the ten-year guilt for. the german ten-year continues to move lower. for the fout day in a row,
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hitting fresh record lows. down in the region of 4 basis points or so. short-term guilt yields not performing in the same way. peter, good to have you with us. it seems this is one of the large r friends at the moment. it is that yields will continue to head south. is there anything in the way of them turning around. >> yes, i think the context for european fixed income at the moment is certainly one of the negative yield environment. low yield environment. that's certainly our strategic view. we live in a world where germany han turnedaround. i think ten-year yielded around 15% is quite a number given that negativeshee yields as you righ say are engulfing part of the
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curve. not least action by the ecb and the central banks generally when you think of the bank of england as well helping to keep yields low. >> you point out you remind us that the bonds they tend to rally over the month of august. i mean, august is what, halfway over now. we have seen that rally this month. how is the rest of the year going to look given what the fed might or might not be about to do. >> that's a good question. our tendencies for the core rafts in europe to remain low. of course we are in the summer period you mentioned when yields tend to rally, although we note the strong rally in june already. other forces at work of course. we have a benign supply environment and negative net issue and the month after to the order of minus 60 brett lawrie
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billion in september. we are getting reasonably good data out of the european area. we have relatively good data coming out. some of the gdp numbers this morning. this all adds to a relatively benign backdrop for yields and spreads in the near and medium turn. of course underlying that is of course very strong structural factors and would really place a lot of emphasis on. we live in a world where inflation rose to 2 .2%. we have the ecb buying 80 billion in bonds a month. at city we think that program can be extended further. still languishing around 1.3%. this puts you in an environment where rates can remain low for the foreseeable future. given the central banks remain firmly in the driving seat. >> a lot of people are thinking
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precisely of that. i also note you say that bond swap levels are looking cheap at the moment. what was your preferred strategy or trade be in terms of putting money into this. >> exactly. in terms of what investors should be doing at going forward. one is to remain a preference for cash versus swap. this was in the recent publication of ours. we also have a tepid ndency for flatter curves. continue to place in lower rates than previous cycles a general theme i put out as well is to move quality and yields as they continental press. we have some trading 10, 20 basis points. if indeed you can move into triple a or double a credit and add a flat spread or a spread pickup. this might prove an interesting opportunity given in yield compression we're seeing. >> thank you peter, thank you very much for being with us.
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director of european interest rate at city. good morning, oil and bonds are moving against each other. are you surprised. george, good morning to you as well. asking about gold. i'll get onto that with the next relevant guest i have on gold. july's industrial output rose 6%. 2% lift seen in the month of june. until hong kong joins us with more on the data. good morning cherry. >> reporter: good morning. happy friday. not a lot of good news to tell you at least regarding the chinese economy this week. i would call it overwhelmingly underwhelming the data points we got this morning. below expectations like you mentioned. retail sales also missing expectations and i want to focus on a fixed asset investment, a big miss here.
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coming in at rising 8.1% from the beginning of this year through the month of july. this is a slowest growth in more than 16 years that is since 1999 and zeroing in on the private sector growth, it's 2.1% of growth, which is a record low. so more evidence of a slowdown in the chinese economy, although as for the market reaction, green across the board as you can see on the board for. sort of going along with the region and global mood of the day, but if you want to find some reaction, take a look at aussie dollar. sort of a pullback, pulling back here given the australian economy is dependent on the china's appetite for commodities, but going back to that big miss on fixed asset investment out of china, especially with the big miss with the private sector growth, does this point our attention to challenges in funding and policy
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implementations in the chinese economy and do we expect more from the chinese government. is it going to be fiscal and monetary. those are the questions we're asking this morning. luisa, back to you. >> sherry king joins us out of asia. >> car sales jumping. comparison to the previous year as well. in october china slashed the purchase tax on small engine cars to 5%. this is what we're looking at in europe this morning on the european auto maker front with a slightly mixed story out there in terms of how the stocks are trading. toshiba has managed to log first operating profit. drastic restructuring in the wake of a accounting scandal. >> mow key co-joins us live.
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>> reporter: operating profit for the three months after june. it was the first profit making quarter since 2014. it had booked a near $900 million loss for six months last year from april to september and the drastic turn around was led by a major factor, that was drastic cost cutting measures it took following the massive accounting scandal that will came to light last year. consumer electronics armed the chinese company downsized the operations and reduced over 14,000 employees. as a result it was able to lower it's fixed expenses and it has set the focus on semicon duck torres and both businesses are quite strong. components for building nuclear power plants as well as maintenance services are in
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demand in u.s. and europe. group net profit for the quarter stood at $780 million rebounding from a loss, but the firm didn't upgrade the net profit forecast for the fiscal 2016 which ends many march last year saying the stronger yen may eat into overseas profits. that's all from the nikkei. back to you. >> mgood to see you, thank you very much. now, turning to the rio olympics. u.s. gymnast simone biles took home gold in the u.s. competition. ending the night 2.1 points ahead of the silver metalist, it's only the second time they finished with both gold and silver medals in the gymnastics discipline all round. meanwhile in swimming simone
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manuel was the first african woman to win in the swimming event. speaking of first medals, figi has won first ever gold mold. came out on top, 43-7. rug by is back in the olympics since 1924. looking at the medal tallies together, the u.s. maintains the lead with 38 medals as swimming legend michael phelps got his 22 gold medal. he now holds an astounding 26 medals. 22 of which are gold. wow. some fireplace decoration that he must have at home. now, sticking with water loving mammals and i tweeted
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this out earlier this morning because it's phenomenally interesting from a life point of view. life science journal suggested the greenland shark is the longest living vertebra animal in the world. with a life expectancy of at least 272 years to 512 years, the shark surpasses sea turtles, torts tos and bow head adding layer after layer of it shatissue. they can tell how would the shark is because it starts to
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develop the islands while it's still inside the mother. so 272 to 512 years old. i was wondering when it hits puberty. that's some life span. apparently maturity is when they're about 150 years old. during the break, check out world markets live. it runs throughout the entire european trading day. we will be right back after the break you can find the shark story on my twitter hand handle @louisaboy sonson.
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good morning, everybody. it's friday. welcome back. you're watching "street signs" still. i'm louisa bojesen. european markets hugging the flat line as the german dax has disappoints gdp data.
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mask group shipping itself to the top of the stocks 600. slugging off a miss on revenue. k and s shares sinking after unicredit warns that the german company is at risk of leaving the easing pool. hi, everybody. welcome back. just glancing here at the news feeds that are coming through and grabbing the uk construction data. construction output, minus 0 .9% month on month. the reuters poll was for minus 1%. that is what we have so far on the uk construction front. just glancing at what gabcable
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going, nothing right now. just glancing at the portuguese second quarter as well. plus 0.2% on the quarter. plus 0.8% on the year. looking again at the uk construction output, again, minus 0.9 month on month which is a little bit better than the reuters poll expectations. second quarter construction output minus 0.7% quarter on quarter. according to reuters. let's move on. alan clark, head of fixed strate strategy. >> one of the plob sectors in the aftermath of brexit. we are seeing highing intentions being hit. the pmi had already dived
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leading up to the referendum. based on that survey, sector is shrinking 1.5 year over year. drag close to quarter to a half of over gdp. it's a small sector, but a troublemaker. >> 10% of the course of how long. >> you could see that coming out on the desks in the early months of next year. it probably help contribute to a negative gdp rating for q3. that comes out the end of october. the problem is with the hard data that figure was for june before the referendum. we won't get any post referendum for another month yet. even then it's the fist month and it may be a flash in the pan and reverse. we have to be patient unfortunately. >> with things like that, how long would uncertainty like this persist and, you know, when it comes to construction decision making? do you anticipate the data will
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be held back for one month, two months five months. >> two years. it could take that long to leave the eu. what will be interesting is the start of september. they're pointing to gdp pointing to half. the services one, which is 80% of the economy, the expectations is even worse. the dilemma here and the bank of england thinks it's an overreaction and it may bans back. in the past the pmi has been right and i'm a fully signed up fan of the pmi fan club. trying hard not to doubt it. >> number of people have pointed out the uk industrial sectors that they're the ones kind of behind a lot of the strength seen in the second quarter as opposed to services sector. >> august strength in gdp was down.
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pharmaceuticals and i think it was exports to asia and the u.s. it was a flash in the pan. encouragingly there wasn't payback in the following two months. nor was the strength sustained. maybe the weakness of the pound is giving a bit of buffness to the sector. if we are heading into a much slower growth environment in the uk because of brexit uncertainties, do we at the same time anticipate we're going to see a massive increase in government spend something? are we going to have much more on that front? >> sure. mechanically if gdp undershoots by a percentage point. then it rises. i've got my growth down about 2% points. the new chancellor said we're probably going to abandon or austerity and tax cut so that
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will increase a little bit more. you could see earning going up about 30 billion, but there's that infamous sofa in the treasury. because government bond yields were lower. they're even lower now. i would love to get to that sofa before flip hammond does. >> i think a lot of us would. say that again. the correlation if you see a drop in growth by how much. >> so 1% drop in gdp would add about 10 billion pounds to your borrowing forecast. 2016 is done and won't feed through that quick. >> alan, thank you very much. have a good weekend. >> thank you. >> any nice plans. >> cycling, play with the kids, ged get a bit of a suntan. >> excellent. sounds good. our european market this is morning, they've been very flat here after the initial market open.
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we continue to see slight lil mixed market at the moment with cac and the xetra dax underperforming a tab. u.s. futures, what time is it, 9:30 here. so five hours away from the markets. it's 4:30 a.m. and you're tweeting in. i can't believe you insomniacs writing in at this hour. you should be getting your sleep. actually i just said you could sleep when you old. five hours away is for a little bit of a green picture on the start. the big wall street banks have asked the fed to push back the implement takes of the rule by five years. the likes of goldman sachs, morgan stanley. they all argue this would allow them to exit less liquid. changes would not kick in until 2022 if granted. u.s. central bank should
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hike rates this year. in an interview with "washington post," williams claimed the move would help inflation and execute a nice soft landing over the next couple of years. he added he modified downwards his expectations since the beginning of the year for multiple rates hikes in the 2016. the u.s. republican nominee blamed obamacare, high taxes and burdensome regulation after outlining economic plans in troit. earlier speaking to cnbc, he said if elected he plans to raise taxes on the rich, but cut taxes for businesses. >> i've raised the numbering quite a bit for the rich. we've raised them and yet a lot of the rich are benefitting because of the fact i've really reduced taxes for business. the business has been, you know, an unbelievable reduction. down to 15%. and right now the highest paid.
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we pay more than any other nation anywhere in the world in terms of business tax. and you can say industrialized world, most part-time like to say that, but pretty anywhere. we're the highest tax nation and that's going down into a locate category. >> trump also elaborated about claims made earlier in the week with president obama's relationship with isis. >> he was the founder. absolutely. he gets in sports they have awards. he gets the most valuable player award. he calls it ie sol because nobody else does and probably wants to bother people by using a different term. he was the founder of isis. and so was she. i called them cofounders. >> on the campaign trail, hillary clinton responded to trump's accusation calling the remarks a falls claim. said trump had no real plans to
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help middle class families argue that agenda of tax cuts and tough trade talk would throw the economy into recession. policy analyst from american surprises and he is with us this hour. james, good morning to you. thank you for being with us. let's start with the ideas of both of the presidential runners. it seems and wow point this out too that trump has one idea that he sticks to and hillary has many smaller ideas in terms of their presentation of them. is that a fair way of looking at things. >> yes, i think so. i think if you listen to donald trump both throughout the campaign and really for decades, the one thing he's always focus ds on is trade. that trade is bad for america. they're being taken advantage by other countries. now it's china, he's really been consistent about that. now more recently as you heard
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in that clip, he has been talking more about tax cuts and deregulation, more sort of traditional republican themes. i think i'm not sure he cares so much about those issues versus trade, but if you look at the polling numbers, he's really not as strong as he should be among republicans. hillary clinton is getting like 90% plus democrats. he's only getting about 75% of republicans. i think talking about more traditional themes he's hoping to get a lot more republicans. though to be honest, if you listen to him, what he thinks has rocked the economy is trade. hillary clinton on on the other hand she talks about many different policy proposes. infrastructure, paid leave, early childhood education, so it's a lot of smaller ideas though i think if there's really one big idea behind her, it's something larry summers has talked about. secular stagnation.
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the kbrd there's not demand in the economy. if you look at her policies, there's a lot about infrastructure, increasing demand, and redistributing from wealthy americans to everybody else. >> what do the two have in common? >> it's sort of the nonrepublican ideas that the trump wants which is infrastructure. he hasn't talked much about it. he talked more about it late. during the speech he talked about it that we need to rebuild america are american steal and american roads that kind of thing. so actually some overlap or infrastructure. neither hillary clinton nor donald trump really seem to be that worried about the budget deficit. kind of a nontraditional republican proposal. so there's -- and the little -- he has come up with child care plan which of course hillary clinton criticized yesterday because it would really only
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help upper sort of upper middle class or wealthy americans and not really working class or poor americans. >> can i ask you about the controversy isis comments. it makes the case that in the beginning when he first started speaking at the rallies you had kind of middle ground republicans and democrats going to rallies out of curiosity or because they support the republican party listening to what he had to say. as time has come along it's become a very large and angry mob he's talking to. he doesn't care what he's saying. he wants to appeal to the mob. that's the case that's made by this particular opinion piece. has he given up winning by civil means do we think. >> listen. when donald trump is in an arena he feeds off the energy in the
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arena. if he says something that seems to play well with the people, he's going to keep repeating it. i don't think he's going to think about, this is how our alleys will see it or enemies will see it. he's going to keep repeating that phrase. the he thinks what got him here was being outlandish saying controversy things. people keep waiting for him to pivot to sounding more like a traditional candidate. that's obviously not going to happen. he thinks, this helped me beat a whole bunch of other republicans. why should i change. why should i listen to all these campaign advisers when donald trump got donald trump to where he is today by being donald trump. >> james, thank you very much. james is the economy policy analyst at the american enterprise institute. again, very open to your comments on this. there's no right or wrong. you can all have your opinion. that's absolutely fine.
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find us on streetsignseurope@cnbc.com on em. you can also find us on twit. i'm wondering if there's such a thing as sportsmanship in politics. if you're a swimmer in that olympic pool and right before you start, you turn and you say something really cruel to the swimmer next to you about let's sayparents are something. and it throws the swimmer off. it would be shown as unsportsman. do we need the same in politics? >> canadian police have said the man killed in a raid at his home in ontario was a supporters of militant group islamic state. believe he was getting ready to attack a city. police also claimed to have
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received credible information about the man's intentions from u.s. authorities. thailand's police chief said intelligence pointing to imminent attacks, but didn't know the times what it was like after a string of bomb attacks in several promises killed at least two people and injured dozens. four explosions targeted three luxury reports in southern thailand. other blasts hit pew ket and copan yan friday. come after a few days of referendum which saw the country voting in favor of a military backed constitution. the german government has produced a series of proposals now to tighten dmes t domestic curt. the german interior minister also urging euroe ining europea closer together. >> translator: the three elements of the new measures are firstly the number of organization in our security authorities. secondly, prevention and i went
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gas station. thirdly those who break the law, those who support radicalization. maintaland portugal is bein ravished by fires. around 400 firefighters have been deployed to battle the flames raging in the country's center, north, and northwest. one person has been killed by the fires on the mainland and further three in madera. we need to take a short break. we will be right back with more guests for you and see you then.
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♪ ♪keep on the sunny side ♪always on the sunny side ♪keep on the sunny side of life♪
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♪keep on the sunny side ♪always on the sunny side ♪keep on the sunny side of life♪ hi, everybody. welcome back. you're still watching "street signs." consumer spending has been a bright spot for the u.s. economy this year. today's sales could give an
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indication of future growth. that data is out at 8:30 a.m. eastern time or 14:30 cet. now at the same time, we've already seen gains in the beg for the u.s. department stores as macy's and kohl's both close the session up by more than 16 pkts. macy's second quarter earnings beating expectations as the retailer announced it could cut cost by closing 100 stores. terry lundgren macy's ceo explained the decision. >> we've been first in the sfri to take a very aggressive stance at moving us forward. that's just part it. by closing 100 stores is not easy. we closed 40 last year. we're getting out in front of this. >> kohl's beating forecast as mentioned. thanks to warmer weather lifting demand for summer clothes.
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nordstroms following suit. fell less than expected there. partly thanks to anniversary sale. now, the how net worth individual has long been a mainstay target of the travel industry. some companies are now moving to tap a particular type of highly value ed customer, namely the single female traveler. they spend more on travel, they're creating female focused luxury holidays to capture the growing trend. debra is a managing director of dukes hotel. oliver williams is head of wealth insight. welcome to you as well. >> debra, let's start with you. dukes hotel, in which way are you in particular focused on this ultrahigh net worth female traveler. >> we see great growth in the female traveler. we chose to actually do a female friendly flaws at the hotel. not only in the uk and london,
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but also hoopening it to new property we're opening in dubai. market research shows the female traveler looks for different aimmunities and accessories to the male traveler. we decided to launch in new company. we're seeing a great growth from the female traveler from the asian market, especially into london and dubai. >> what is it that women want in particular that men don't want, maybe, on their floors. >> security is key. absolutely. security. fresh flowers. magazines. great room service. the room to be service by female so if anything is taken to their room, taken by female rather than male in the room. whereas the male generation traveler is looking for a sports tv programs, great sports channels on the tvs. beer in the fridge, great shower and newspapers.
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so very, very different. >> do we have things like male only rooms or do rooms tend to be dominated by what men want to start with. >> absolutely. the majority of hotels throughout the world, they're mainly sort of -- they suit sort of both genders, but when you have an independent female traveling, that's when you would actually look at the difference. it's not making the female traveler or the male traveler actually any different, it's just showing what research the results are. >> if you are checking in at a hotel and if you're a man and you want beer in the fridge and 29 channels of sports and if a woman if i can choose some of the things you mentioned, you might choose that, why not. >> oliver, from a financial point of view, what are the stats showing you. >> let's clarify the high net worth individual is someone with
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upwards of 1 milli$1 million. obviously the wealth is growing hugely in asia. that's no surprise. one of the trends we noticed is that the wealth is being quite concentrated among the female high net worth population. which is in contrast to growth in europe and north america. we've been seeing in china or japan, malaysia, india, a lot of wealth concentrated on the female high net worth individual. >> what can companies do in order to tap into this or what should they be thinking at the moment. >> it has a huge effect. obviously there's luxury travel industry which with offer certain packages to the female high net worth individual and they're preferences with very, very different. it depend from country to country the preferences, but by and large looking for a wellness holiday. also holidays centered around the family. it's likely to be the center of the family.
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therefore organize the holiday. >> do we know how much female travelers would tend to spend if they are in that particular category. is there an average number we look at? >> i don't think the spend is any different. the spend within the property is not any different to the male or female traveler. it tend to be exactly the seam. it's more the facilities. offering wellness, yoga, that's important as well. it's not important to a male traveler. however if you have a couple traveling together, then they tend to request a spa. so the spend will be no different. >> you're saying the trend is more prevalent in asia as of now. >> very much. >> is it coming here? >> i think it's coming here, yes. so the growth in family wealth is global. it's a global phenomenon. in asia over the next ten years, we're looking at a 5% growth among the deal.
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that's people with 30 million females in asia. that's not as much in europe and north america. that's looking 3 or 4%. >> i think in asia the wealthy sort of asian female is used to a luxury lifestyle at home. so they're used to having their maids. they're used to having staff around them. so to stay in a five-star property and have a butler or staff around them. that is not seen as a luxury. that's seen as norm. hence the fact the hotel has to have that facility and offering on hand. >> it sound like hotel, but yet it sound like the service departments where you get you know, all the spoke. it's all very, very disspoke. >> you're correct some departments are growing. we're opening a huge apartment
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hotel in dubai. it's a growing sector. >> one of the trends we noticed is not only is wealth movie ing over to the female side, it's getting younger. there's younger people who are wealthier. they're looking for different experiences as well and very much on the experience side, they're looking for things they can take away with them. >> sure, oliver, thank you very much for coming to visit us. debra, thank you to you. head of wealth insight. that's it for the show. david, james, bob, sara, kevin, pf, thank you very much for all of your mails and tweets. that's it. i'm louisa bojesen. "world wide exchange" is up next. have a lovely weekend.
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♪always on the sunny side ♪keep on the sunny side of life♪ good morning. record run, the dow and s&p closing at historic highs. for the first time in 17 years. call of the consumer. the strength of the shopper getting market sentiment a boost. today's test, government retail sales and quarterly results from jason cast jcpenn jcpenney. plus going for gold in rio. it's friday, august 12, 2016 and "world wide exchange" begins right now. ♪ ♪ >> hour favorite song on

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