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tv   Street Signs  CNBC  July 24, 2017 4:00am-5:00am EDT

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welcome to "street signs." these are the headlines. shares of german car makers hit lows not seen since end of last year eu regulators investigate a cartel between volkswagon, bmw, and daimler. 55% rise in first quarter profits, the low cost carrier could fall as much as 7 to 9% sending shares lower. assets on demand management julius baer, best performance
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since 2008, sending shares to the swiss bank to the top of the 600. and shares in b and m rise on a report as there could be a 4.4 billion pound bid for the discount retailer. good morning welcome to the show. looking at pmi data for euro area crossing the wires. seeing it was very much in line. pmi services was 55.4, estimated at 55.4. and then look at the manufacturing, came at 57.4, marginally ahead, 57.2 marginally ahead of estimates at
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6.2. on france, mixed picture, weak when it came to services but strength when it came in it was traded marginally higher today. seeing a little of that received now. let's move on, talk about the top story today. looking at the auto sector reports the commission could be investigating collusion among germany top automakers, following a report that bmw, volkswagon, audi and porsche may have worked together to fix prices and designs of diesel emissions treatment systems. looking at the shares, they're really being punished. volkswagon down by almost 4% at this point daimler is not doing quite so poorly, 3.21
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bmw slightly better, negative 2.72 let's reach out to annette a, following the story. good morning >> reporter: the situation looks worse than right after the open. now we have volkswagon down almost 4%. that is, of course, adding to losses from friday friday the shares already were 4% daimler fell 2%. bmw dropped almost 3%. you see the sheer size of losses tells you the story, tells you how investors take that report very seriously we have a report out friday afternoon saying saying these three car makers and porsche at the time independent were colluding on various issues, ranging from talking about cost of components, choice of
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suppliers, and technology from diesel engines to brakes, transmissions, you see the whole package. one of the investigations that they callused on size of the attention for liquid to make diesel cleaner that's one of the worst allegations. diesel being anyway under a lot of scrutiny. so the question is who has done what when. according to spiegel, these are only based on spiegel. volkswagon has issued a statement to the authorities as soon as july last year alerting them that there have been that potential collusion between the three big car makers daimler, according to the report
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follows suit so under european law, one has to know the first whistleblower may get no crime if that is the case, volkswagon could go without a fine. daimler is highly questionable whether bmw has done anything wrong, we don't know anything for now for sure, but bmw has issued a statement sunday afternoon that tells you also the story. tells you also how much pressure is on car makers that they have nothing to do with any collusion and that the only talk between the car maker which has taken place was about a fueling system for the tanks. >> and bmw is the only one you mentioned who issued some defensive statement so far, and bmw shares are being fpunished less than pierce do you think it is related >> yes, bmw made it clear in a statement that they have a
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different technology in place than the others. we can call it an add on that's perhaps the reason they might not be punished as badly also one has to see that daimler was already under investigation before when it comes to cheating on diesel as well. so volkswagon, we know they have diesel gate already. whether the others have done something comparably, we don't know a lot of scrutiny was on daimler already before the report on friday, but now i think the pressure is adding on as there seems to be something in it as the european commission also was at least saying they don't know whether they investigated going forward but have also not said we didn't get any letter you see, i think there is something brewing here back to you. >> thanks very much for that
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update let's look at how autos effect the market overall you see markets are overall in the red. down by over a tenth of 1 percent. given the weakness in auto, not too poor a result. what we are seeing in today's markets that earnings are driving what's going on. why don't we look at how european markets are overall say the ftse is down by a half percent. dragged down by what we see in auto sector. not a tremendous amount of strength anywhere really we are seeing they're holding their head above water barely. let's look how sectors are shaping up talked a lot about how weak autos are, down almost 2% at this point on a brighter note, seeing a few sectors in green real estate top of the sack. travel and leisure dragged down
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by ryan air earnings and more negative noises out of airlines. we see that carries on from what we saw last friday with weakness out of easy jet. let's look at how one of the key positive movers is swiss private bank, julius baer reported 6% rise in asset management in first half of 2017 figure rose to 355 billion swiss franks, roughly in line with analysts the greek saw adjusted income making a greater jump than predicted. let's turn to one of the weaker moves, that's ryan air, down over 4.5%. ryan air posted 55% increase in fares toward net profit beating expectation. why weakness results were boosted by stronger bookings during easter period. they expect shares to fall 9% in second quarter ryan air says it could be forced to cancel flights from april,
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2019 if uncertainty around brexit talks continue. similar message from easy jet friday where they had recently strong results but a negative outlook ahead. let's look at how super market shares are trading bmu european up 4% because they're trading higher after reports in sunday times that walmart, british super market is looking at the 4.4 billion takeover it is in the early stages only of assessing its bid let's look at one more stock, telecom i talia, up 2.5% the ceo is reportedly seeking an exit payment up to 30 million euro according to financial times comes after he resigned due to alleged disagreements with their top shareholder. barry gardner, uk secretary
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for international trade joins us shortly to talk about the latest drive of a uk trade deal, while speaking with the ceo of british american business to get his tape both of them join us after the break. break. stay witush thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
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yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once.
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this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. let's look at the top story of the morning, how auto stocks are performing in light of reports of collusion among the big german car makers. they're still continuing to feel the pain the sector is not as badly down as earlier today it was down almost 2% even ten minutes ago. still weakness there let me bring in the senior equity research expert to join the conversation good morning love to get your take on what's happening in auto sector
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seal valuations this morning, do you think it is fair what we are seeing we might have a problem with his earpiece at this point okay we'll come back to that as soon as we get a line on him. growth in japan manufacturing activity slowed to 8 month low 52.2 in july as export demands stagnated. optimism remains with index measuring expectations for future output rising to 63 that's the highest since ihs market began collecting data five years ago the international monetary fund has lowered the forecast for u.s. and uk economic growth but kept global growth forecast for 2017 unchanged slow downs in the u.s. and uk
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expected to be offset by increased growth for many countries, including germany, france, italy, spain cnbc is out at the imf now and has details for us. >> imf global growth forecasts changed 3.5 and 3.6% for 2017 and 2018 some context for you, broadly that represents improvement from 2016 growth rates at 3.2%, but the fund didn't make it clear these numbers represent levels that are still below the fund numbers. taking a hatchet job to u.s. growth forecast citing fiscal policy uncertainty imf expect growth in the u.s. context to come in at 2.1% this year and next year, that represents a revision from april.
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i asked the economic counselor at the fund whether the trump administration target of 3% is attainable >> it's a challenging goal the u.s. has not grown at that rate for awhile. at least not on a sustained basis. while we could see the quarter or two of 3% growth getting there on a sustained basis would be hard given some head winds we have seen in terms of productivity, growth, and demographics. >> the fund is looking fairly constructive on the outlook for china's growth prospects are looking strong with growth pinned over 6.5% this year and the next although talking about debt levels and nonperforming lows as a source of concern. commodities exporters look as though they'll continue to have a rough time with down grades suffered by saudi arabia for 2017 and 2018. but the bright spot looks as
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though it will be the eurozone with growth expectations bumped up by the international monetary fund, although the uk and brexit effect continues to look challenging. we got a downgrade for 2017, some stabilization for 2018. back to you now. second quarter earnings after the bell, revenue seen growing to $25 billion by continuing strength in advertising. the eu $2.7 billion fine could overshadow numbers, cutting forecasts in half. i am joined onset to talk through this welcome. tell me what should we expect? what are you most focused on in terms of earnings and the call today? >> we're going to look at the impact of this fine. average analyst expectation of $4.46, that's versus $7 in the last you can see the impact
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it is pocket change for alphabet small amount of money for the company. but we are expecting to hear more clarity about what this means to the business in europe, whether they might have to change how they present shopping comparisons on the google page in europe, if that will have material impact on advertising revenues which is what we are focused on not so much about the one hit. we are looking to other areas of the business google recently launched youtube tv, a streaming service, $35 a month, to see indication about how well that's doing at the start. on top of that, one of the other most interesting categories of alphabet is other bets this is where you have the self driving car, and we are hoping to hear more about that. that's continued to be losing money. it has been growing revenue. there's a bit of good management when it comes to being ruthless with what google is going to
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continue with and not continue with when it comes to other bets hoping for more character on that and the self driving car is currently in lawsuit with uber hopefully more clarity on that as well. >> turn to the regulatory point. i understand at the moment it is very much concentrated, but are there implications broadly across the business and attitude of european regulators toward google and its peers >> becoming a tough regulatory environment in europe. but european union has other probes into android, mobile operating system which is dominant, four out of five smart phones run android, it is a big competitor in europe what the eu is concerned about, when you buy and dried, it comes with services. google maps, youtube, and european union commission is looking into whether this is
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anti-competitive practice from google if they find that to be the case, it can have big implications on the way google distributes android in europe. these services, maps and the rest of google business, they drive a lot of interest in the overall echo system, which is how they monetize users. could be material in the commission >> looking at the valuation to see they soared for tech players, most of all for the biggest tech players, have they gotten ahead of themselves how are they feeling about how they're sitting? >> valuations moved up, we have seen stronger earnings come out from these companies of course, alphabet looking to report from revenues and growth. we have the likes of facebook coming up on apple
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and expecting strong growth. these are companies with elevated expectations, which is a danger if they do miss, we see the market heavily in the days after when it comes to share price there's a sense that valuations are justified, particularly for large platforms, likes of amazon making bold decisions when it comes to acquisitions, new areas, and the likes of google which are continuing to grow their advertising revenue, one of the key metrics look at facebook, they continue to get users into facebook and sell products from instagram, et cetera, there's a sense that large platforms, the biggest giants are growing earnings. if you look on the flip side, snap chat, which disappointed from a user growth perspective, those companies have been punished snap chat has been hit, blue apron, delivers meal kits to people, an area amazon jumped into analysts and investors saying this business model maybe wasn't
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defendable those that aren't keeping up with earnings and user growth are being hit, likes of alphabet, amazon, facebook, apple continue to grow, are getting share price values and valuation rises too. >> let me ask you a question about growth seems to me it is becoming increasingly difficult if not impossible for a startup now to grow to the size to be a real competitor seems that somewhere along the way should be snapped up. >> i have been thinking about it is there a chance for any kind of company to go and be the size of an alpha bet or facebook, those chances are increasingly narrow look at snap chat, for example this perhaps represented the best hope so far of a company to go out and challenge the likes offacebook, but as soon as it came to market, facebook said hey, we've got 1.8 billion users, we can make a rival product. it is becoming increasingly difficult. we have seen the companies are
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growing to significant scale uber of course got into huge problems when it comes to not just regulatory side, but their own company culture. there are questions about what happens to that business now, how does it go forward, does it come to market, when does it come to market in terms of ipo a lot of questions in the start up world, particularly private markets around valuations, whether these are justified and whether they can continue to grow at the pace and scale they are without hitting major road blocks >> before i let you go, back to the regulatory question a minute seems to me it has been european regulators cracking the whip regulators in other places haven't been doing this so much. do you expect more regulatory pressure from elsewhere or is it just europe. >> seems to be focused in europe of course, when any of these companies try to crack the chinese market, there's pressure there. so far google is relatively not jumping into china too much, nor any of the other big u.s.
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giants, apart from apple really. europe is the focus. these companies have grown to the scale, became the size they are because of the product they have they managed to create monopolies because they managed to grow, there's been no competition, no google competitor or facebook competitor in europe, and that's a problem. not like the companies have necessarily done anything wrong, just that they had the better product. europe hasn't been able to compete. that's really the story. >> thank you so much for setting the scene ahead of alphabet earnings later today. as i promised you, we have the senior equity research expert joining us, still looking at the auto sector, the biggest story this morning, last time we looked was under 2% on the report of collusion. i w i would love your take on where auto is sitting and with regards to the future which looks bleak
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with self driving cars or innovations in green energy. >> yes, absolutely, i agree. a lot going on in the sector at the moment, especially europe, there's not a lot of good news good news in europe, the car market itself is growing well. europeans continue to buy cars however, german producers are faced with a lot of issues obviously the diesel cheating scandal which may also be true for some of the other players. daimler is still suspected of having devices, there are still investigations as you say, news of last friday, could be cartel elements in the german car industry. that all together is bad news for the coming two years if proven there's some form of
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cartel, they could be heavily fined. that's what share prices are reflecting next to that longer term, big question is how are they positioned for the electric car future and self driving car future we hear complaints that bmw do have the good cars, at the same time they have to invest a lot of money, have to really keep up to speed there that could depress their profitability in the coming five years. that's also the second element that's worrying investors a bit. >> another big theme driving the markets is european earnings season, we have reports out this week what's your sense of how it has gone so far, both in europe and in the united states >> yeah, i mean, it is a big week this week you look at approximately half the european large caps reports
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that 50% of the companies is going to report this week. in u.s., about 200 of the s&p 500 companies report, so it will be a busy week in that sense with a lot of big names coming talked about facebook, alphabet, intel will come this week, also in europe at the moment it is early days we have seen approximately 20% of u.s. companies have reported and about 15% of europeans we see european companies report earnings more or less in line with expectations and that u.s. companies are a bit better, better results from the u.s. so far. that's in contrast to the q 1 earnings it is early days less than 20% of companies reported this will be the week for company earnings >> thank you very much for your views. senior equity research expert.
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coming up on the show, debate over how to cap rising crude production as opec and nonopec prepare to meet in st. petersburg the latest from russia after this short break stay with us
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welcome to "street signs," i am gemma acton these are your headlines shares in german cars hit lows not seen since end of last year as eu regulators investigate a secret cartel among volkswagon, bmw, and daimler ryan air posts a soaring rise in first quarter profits, but the low cost carrier warns summer fares could fall as much as 7 to 9%, sending shares lower. assets management julius baer rates 6% in the first half,% performance since 2008, sending shares of swiss bank to the top of the 600. russia called for limits on nigeria oil production, as novak prepares to host opec and nonopec ministers in st.
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petersburg oil is trading lower after the saudi arabian energy minister told reporters there would be no discussion over deeper output cuts at this week's opec, nonopec meeting in st. petersburg the focus expected to be on libya and nigeria, both are under pressure to cap oil output once production levels stabilize. i am joined by the chief oil analyst at energy aspects to discuss this good morning love to hear what you're looking for this morning with regards to the meeting which headlines, exciting to hear them. >> i think it is very much in line with expectations i think they have been consistent in saying we are not going to consider deeper cuts, see what the summer stock rolls look like. not that they're ruling out cuts, they're saying today they're not discussing it. i don't think you're going to see any discussions until the end of august or early september
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simply because they want to see how the u.s. stocks end up end of the summer. to be fair, stock has accelerated the last three weeks, strong crude not just in the u.s. and outside the floating side of things as well. i think they don't want to do anything -- focus is on libya and nigeria, both raised production i think it is hard to tap libya but nigeria might be a slightly easier talk to have with them because production now is close to 2 million barrels a day. >> let me ask you, opec meeting with nonopec, also seeing opec be inclusive with regards to bringing people into the oil conversation, including conversations with hedge fund for the first time is opec outdated do we need a new model for the industry that makes the decisions? >> i think we always had this conversation in terms of opec
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policy whether we need a different body or not i think end of the day, opec is very much about maintaining stability of the oil market. they have to be in tune with what the market is like, new market participants because end of the day if they're out of tune with what are new ways of trading, how the market sentiment is working, they will not necessarily be able to have the same impact. i think the biggest problem with opec this year is even compliance has been high, exports haven't come down as much they decided to destrok their own crude. that's been a mistake. they have drawn down stocks in their own countries which isn't very visible, u.s. stocks are only drawn now, you and i can see on a more regular basis. >> you say stability is what they're looking for here what are the big challenges, on-going reduction in the cost
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of shale production, that's a trend they can't do much to fight against. talk about how you think this will impact surpriprice and stry going forward. >> that's a good question. that's one of the challenges, costs come down not just for shale but outside shale as well. part of what opec is trying to achieve, make sure we don't have a problem in the future is really the situation where you are losing so much nonopec supplies, not just in shale, in terms of gulf of mexico side of things and also outside the u.s. that's really the focus now. if we lose 50 million barrels, declines would be very high, we lose a chunk of that with production they don't want to see oil price spike. we are not saying that will necessarily happen in the near term, shale continues to grow and break evens continued to come down. remember, break evens have come down partly because oil prices
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are low and service sector under immense pressure when prices go up and service sector can get some of its power back, you will see break evens go up. so opec is focusing on long term projects rather than shale break evens if you ask me. >> thank you so much for giving us context as we look ahead to this afternoon opec and nonopec meeting. i am looking at the board, seeing a sea of red in europe. let's look to see if there's a read through to the u.s. market, that's indeed what we are seeing, dow-jones is expected to open 24 points lower, nasdaq up 7% look at european markets themselves are holding up, not well at all. it is a sea of red the ftse, italian markets are keeping their head above water, quarter percent higher
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auto stocks are down so far this morning, seeing dax not doing so badl badly. let's look at how currency is moving. they were enormous last week euro hit a two year high against the dollar as of friday, it has come up in light of weakness in pmi, nothing dramatic just slightly ahead in front low in germany, one-tenth percent. look at tablcable, pushing above that 130 mark. britain trade secretary in washington to meet with u.s. officials to discuss a post brexit trade deal, after he said he supports transitional arrangement of two years to ease britain's departure from
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european union speaking on the bbc, fox said it would help businesses making investment decisions, but added it would have to end before the uk next election in 2022 i am joined by a panel of people to discuss this further. joined by jeffries bringing enshore, ceo of british american business, barry gar dinner, secretary of state for international trade. from what i understand, if the uk can't strike any deal or agree on terms with anybody until it has completed exit from eu, it won't know what the relationship will look like yet, what's the key purpose and point and hope of liam fox's trip to the u.s. this week >> you're quite right. competence is needed for trade deals. that means if we have customs union, that will make a difference, we don't know that there are a lot of uncertainty, these talks are talks about
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encouragement toward technical activity down the line i think we see them as encouragement towards deeper economic relationship with the u.s., which is a good thing. really just talk at the moment >> sending people for preliminary talks, understanding they have to go recruit a lot of people to cope with all of the resources needed for trade talks with the eu. >> that's right. building resources, building capacity for good people there already. in terms of being up to speed alongside other trade negotiating powerhouses like the u.s., that's still some way away i think the stage we're at, beginning to think of things might form the subject of trade negotiations, also thinking about things that could already strengthen a huge economic relationship, probably not going to lean on technical skills right away at least in the way of trade
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deals and trade negotiations feature. >> bring you to the conversation there's comments you made about how the government is approaching its trade deals. on one hand, took so long to put together white paper to discuss international trade. >> still haven't. >> they still haven't. on the other hand, you're concerned they may rush through brexit, get a deal that doesn't work for smaller businesses. are they moving too fast or too slow at this point >> i think the important thing in any negotiation is go into it knowing what you want out of it at the other end that's the reason i have been calling for a trade partner. say these are objectives in international trade in general, when we look at the rest of the world these are the areas that we feel we are strong in, want to explore other markets and see liberalization in their markets. that's a really important way of making sure our trade policy is aligned with our whole
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industrial strategy. now, they haven't done that, but i welcome the fact they have gone to america, that we are beginning discussions. we need to have a good, strong trading relationship with the u.s., indeed we already have it is our single largest bilateral partner, trading partner after the european union, and it is important that we develop that further because the likelihood is that our trade with the eu will decline slightly after brexit. we want it as friction free as possible likelihood is it will decline at some point we want a good trade deal with america. but we need to establish where the american markets need to liberalize their market to us. i notice that a lot of people are saying there had been dispute about washed chicken allowed to come into the uk. some in the cabinet, liam fox
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saying this is fine, others saying it wasn't that's about how we liberalize our markets. it is not clear that the influx has gone to america, to say we will open up our markets in this way, that's not what he should be doing what he should be doing is going to americans and saying look, these are the areas of your market where we believe you're overly protectionist, where we believe there are too many subsidies, and we need to see liberalization here, and this then becomes a two-way street. at the moment, looks as we go as the supplement, liam fox is saying just come in, do what you like to our market there's always balance between the producer and consumer. i believe that very often liam fox gets the consumer interest right but doesn't take care of the british producer >> jeffrey, barry raises an interesting point, saying the uk is discernibly smaller
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others are concerned we will be forced to take whateve agreement is offered at some point, even if we manage to fight back is this a concern of yours >> the u.s. economy is roughly 6 or 7 times larger than uk economy. i think we would be right to be thinking of how would we approach trade negotiation what's in it for britain, for the u.s., what is win-win. we start thinking about legislative conversation, and also about broader conversation with businesses, small businesses particularly that can benefit from elimination of duplicative barriers, opening the conversation more broadly in our countries to capture the imagination of perhaps new ways about what trade can do for people straightforward things like that when it comes to the crunch and negotiations, comes to thinking
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about what seven times your size means in terms of tradeoffs, we have momentum and support for more difficult decisions, those tradeoffs as barry talks about sometimes trade produces for consumers. to avoid that, we need to find forward looking areas, opportunities that don't zero some down to what we've seen before >> let me ask about this lot of talk about the u.s. and eu, as we go forward, new paradigm, further afield, where are the -- we saw a lot of communications last year, with previous government as well, with china is that an area of focus >> absolutely. look, the way in which the consumer market in china is developing means it has to be one of the key objectives for international trade strategy yes, america may be the biggest at the moment, but i think we
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will see china rapidly catching up with that we need to be developing our business and we need to be doing things like teaching mandarin in schools. if we want to do business, have a common language to do it in. we need to be far better engaged with the chinese market than we are, transport links to china have to be upgraded. we have, what is it, two daily direct nonstop flights from london to china. you want to do business with 160 cities in china that have a population of over 10 million. and then actually we need to just rethink the way we are approaching this i think it is a hugely exciting market, and if you look at the opportunities for food and drink there, dairy industry, one of the biggest things they're saying at the moment is cream teas have become big in china
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because they have been watching british programs huge opportunity here, we need to get out there, need exporters out there, and need our small and medium size companies to be leading that charge and not just leaving it to the big ones. >> barry, do you have last comment? >> let's not lose sight of the opportunities in the uk and u.s. million jobs, investment, $250 billion in trade we can grow that significantly perhaps more quickly than we can grow difficult further afield relationships. so i think we could ask our political leaders to look for immediate areas of opportunity amongst planning for trade deals. you can already start to take advantage. >> a topic not going anywhere in the next two years, talking about it more. thank you for setting the scene at the start of brexit negotiations just ahead of liam fox's trip to washington, d.c. that was the ceo of british american business anbar ee
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gardner, junld secretary of state for international trade. still on the u.s., we bring you the latest on russian sanctions and another controversial trip for the white house, that's coming up on the show
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donald trump ready to slap tougher sanctions on russia. the white house said the u.s. president is open to sign a new law that would tighten the screw on russia, after congress members struck a deal, allowing new sanctions on russia, iran, and north korea and limiting trump's power to lift the sanctions. staying on russia, the russian ambassador reportedly discussed campaign related matters with jeff sessions "the washington post" reports intercepted conversations between kislyak and moscow indicated they talked about policy issues of interest to the kremlin.
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the report contradicts the attorney general assertion that he, quote, did not have communications with the russians i am joined now by professor at city university who is going to talk through some of the issues with me. good morning >> good morning. >> i have been looking through your notes, thinking more broadly about the geopolitical situation, north korea, syria, russia, i don't even know where to start i am going to hand it to you, ask you where would you say is the biggest cause for concern. >> big cause for concern for many people was donald trump suggested during the election campaign and in various speeches as well that the world order was broken that america had been taken advantage of by practically everybody else the whole international system after 1945 was at fault some way or another and he was going to do something about it, he was going to reset relations with vladimir putin and rush more generally. actually what happened since his election over time is that
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concerns about russia have continued, but overall, you could say that president trump has not really shaken up the international system in its fundamentals things are changing, not everybody was happy with the international system as it was liberal to right wing are unhappy. china and india aren't happy with the u.n not everybody is happy some change will happen. from what president trump has done until now, look at north korea, for example, he said a lot of things about how he was going to sort that problem out, but actually compared, made a speech as aspen institute the other day where he said north korea fired one icbm, they better not get an arsenal of them, which suggests what previous presidents since george w. bush recognized, there's not much you can do with a well armed nuclear power, despite the fact that your arsenal is bigger than theirs. not much change despite all of
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the big talk. >> do you think that could be why we have seen a slump in trump's ratings, popularity is down since the election, theresa may, are they coming in on too high expectations they couldn't deliver on >> i think their programs are the big problem, not the expectations they promise to deliver many things, prosperity, jobs, et cetera, but their programs are broadly market oriented, that is to say that a lot of people need state subsidy or state intervention to create a flow. these governments have been largely focused around the opposite greater degrees of deregulation, for example. which means there's going to be tougher, greater pressure on wages and salaries and so on, that therefore meant that inequality of wealth income and political power has increased. so the reason they're losing
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popularity is because they're not actually addressing the big problems you can see that in president trump's numbers. those who strongly approve of him, that number has gone down those who strongly disapprove as just disapprove has gone up. consequence is therefore more and more people are more skeptical about donald trump and theresa may and macron, too, mack ron was elected as a radical centrist you look at the kind of speeches he made since elected, going to reduce union rights, worker rights, levels of salary in the public sector. that's not going to win popularity >> running up against the end of the program. quick thoughts on an issue seen confusion out of white house politics with russia, one hand donald trump jr. testifying about colluding with the russians, trump saying he might impose further sanctions on the
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russians where does this go >> on the sanctions front, there's more heat in media coverage nothing has been done by trump administration to diminish already existing sanctions on russia up to now now he is going to say pass this, i will enforce it. on the other hand, there's talk about collusion. i suspect that's much more to do with possibly the business interests of the trump corporation, maybe trump international interests. >> thank you so much for joining us today that's it for today's show i am gemma acton "worldwide exchange" is up next. have a great day you know what's awesome?
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gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids. and these guys. him. ah. oh hello- that lady. these houses! yes, yes and yes. and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too.
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good morning earnings overflow. nearly 40% of companies in s&p 500 release quarterly results this week. we gear you up for the jam packed agenda straight ahead. what's on tap in washington. president trump is set to speak about health care after turning up pressure on republican lawmakers. details are coming up. plus, a dramatic victory jordan spieth is the open champion we have all of the historic highlights it is monday, july 24th, 2017. "worldwide exchange" begins now. ♪

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