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tv   Street Signs  CNBC  June 18, 2018 4:00am-5:00am EDT

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welcome to "street signs." i'm willem marx. these are your headlines in london trade tensions hit european markets. oil prices slip after beijing warns it could reduce u.s. energy imports. angela merkel is poised for showdown talks with her sister csu party which says it intends
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to send a strong signal. and cybg creates the sixth largest bank buying assets welcome to the show this morning, everybody you can see on the board here that the european market is not off to a particularly strong start. the stock 600 is currently down 2/5 of 1% in terms of the specific sectors driving that number, you can see all four of the major equities here in europe all in the red. you've got the ftse 100 down 1%. xetra dax down 2%. the ftse mib is down 4/5 of 1% take a look at the sectors
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behind those numbers you can see the insurance sector and telephones down. the bank sector down 1/10 of 1%. oil and gas is also down a lot to watch a they're performing too well in europe so far. relationships are hard one minute you're cozying up on a beach resort in florida, next you're building barriers and freezing each other out. does that sound familiar well, as the fresh trading week starts, relationships of course are utmost in investor's minds russia and saudi arabia looked to be getting chummier by the day. they're willing to increase production ahead of this week's opec meetings. alexander novak and his saudi c co-hort are saying they're going to raise o i will -- oil by the
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day. president trump unveiled tariffs on more than 800 chinese goods that could be worth as much as $50 billion. beijing has swiftly countered by implementing measures on 650 measures as well chinese state media attacked trump's tariffs. they left room for future negotiations an editorial said a weissman buildsri, the fool builds walls. no idea who that would be referencing. this seemed to affirm ofal commentst beijing would defend its economic interests. eunice yoon reports from beijing. >> reporter: like many companies they are hoping they will build more bridges as they rely on international trade more and more. facilities like this one, is delivering more
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imported goods including from the united states to chinese consumers and that's very important for a day like today today is june 18th this is the end of an important shopping festival for an 18-day period full ever discounts. it's special to jd because it marks the founding of a company. it helped generate $17.6 billion worth of sales last year i spoke with jd's founder earlier and he said he believed the sales this year are going to break records. he isn't as concerned, he said, about the u.s. tariffs and the impact on jd itself though he is concerned about the potential for a protracted trade war this is what he had to say >> it will hurt the brand
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because obviously china's consumer, i'm sure in the larger cities almost half are there it will hurt a lot of american brands. >> reporter: now the reason that jd's founder isn't concerned about the impact of u.s. tariffs on jd itself, because he said at the end of the day jd can source its good if not from the united states then from other countries. he is concerned about his investment plans in the u.s. he says that he's giving it pause now because of the trade tensions between the u.s. and china. eunice yoon, cnbc business news, beijing. now german chancellorangel merkel has reached out to her german allies to find an answer to the issues.
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csu leader announced plans to reject migrants from germany that have already registered in other e.u. states. he says his party needs to send a strong signal today. orter: angela merkel, chancellor of germany, is facing her probably worst political crisis in her very long career at the core of the problem is the question which refugees should we allow into germany and which refugees should be directly rejected at the border? the sister party of angela merkel's party, which comes from the very south end of germany is very adamant about the fact that those people who have registered elsewhere in the european union should directly be rejected. angela merkel fanl mouse for her open door policy at the same time says we need to have a
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european solution. for now it looks that compromise is very hardo reach because both parties have been vocal about their positions, but one thing is car everybody here in berlin knows that this crisis could topple the government >> and i'm joined this morning in studio by the managing director at ten air intelligence we have varying actions in october. this is not surprising did they trourn this because of the conversation >> i think it is this has been rumbling on ever since the summer of 2015 the reason this is coming back to the forefront is definitely the fact that the csu is under massive pressure that means we're not going to see a quick resolution. >> let's talk about that pressure you're talking about it's relatively well.
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the csu needs to make sure they don't return >> it's about protecting the right flank of the csu and keeping the liberals out the afd is calling around 12, 14%. the days of the absolute majority are over. >> it's also about say hover appearing tough. >> yes, precisely. none of these two parties can do without the other, that's the reality of it. at the end of the day they're in a somewhat weak position because out of munich, he's in a hard position it might as well be a position at the end of the year where he's the big loser. >> when you look at the numbers in berlin, you have four numbers the number of cd u-verses csu members of parliament.
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>> it's true the cdu is the much larger in this at the same time in relative terms, conservative center right support in bavaria is a real strong hold. that's a story we'll see playing out all the way up to bavarian elections. >> how strong is merkel's support? >> there are many in the cdu who are quietly and secretly very sympathetic to the what the csu is doing i think you have 200 cdu employees who will be bossed around by 40 csu guys. the cdu will loyally reu ninite behind merkel. >> the new italian government have been very critical of the dublin rulings whereby migrants are registering there.
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there's a clear example of that policy coming into effect. merkel has overturned that she said, we'll welcome people into germany who have registered elsewhere. where can they find common ground, these two leaders? >> it will be ve difficult first of all, conta is not the one to talk to but the real person to talk to is savigne, exactly. that's the first point merkel with all of her liberal rhetoric is on the other end of the day. if seehoffer were to have his way, he would be the loser if they were to close the borders keep in mind, in germany the csu has no interest in a quick resolution either. they need to keep this simmering all summer long. >> any economic fallout you can see? >> no. let's face it. pls for eurozone buildout, all of that stuff, that was extremely minimal anyway this government doesn't have a massive reform agenda at home.
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the focus is on migration. the focus is on european questions where germany has taken a tough stance. >> we saw these tweets go out on friday and the idea there was a long-term rift between the cdu and csu. what are the chances this could impact her >> she is in the last three years of her chancellorship. we're going to see her there until september 2021, no doubt about that these two parties are not going to split the csu is going to push this to the brink but without pushing it over the edge. >> in terms of rhetoric from the csu, what should we expect this afternoon and this evening >> they will commit to a hard line stance as well. what they're not going to do is impose a definitive deadline that's not going to happen >> if he says i'm going to pursue this and start implementing it rather than this plan to implement it, he has to get sacked.
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>> if he now says i'm going to work in that direction, there's still room to maneuver. >> thank you so much a lot to watch in germany. now the french president, emmanuel macron, has urged the italian prime minister to work with the allies to update the e.u.'s policy. the italian leader backed a proposal for macron to build migratn centers including most importantly libya. and a ship carrying migrants, we mentioned, that had been turned around by italy and malta has been turned away they will ree humanitarian permits to stay in spain for a month and a half italy's refusal to accept the
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boat had caused a diplomatic spat nbc news's matt bradley filed this report. >> reporter: they were thescue wanted, but this morning the trio carrying hundreds of mostly african refugees was finally welcomed at the spanish port of valencia amid celebrations and smiles >> i'm happy to be free. >> reporter: survival wasn't always so certain. these migrants, pregnant women and children among them, had to be rescued off over crowded rafts and then suffered ugh seas and stormy diplomacy. both italy and malta's government refused to accept them, a decision critics called heartless. the pope also expressing concern for their care the tense situations reigniting europe's simmering immigration delay the and elise borges with
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euoueuro news was aboard the sh. >> reporter: they're finally about to disembark and start a new life in europe, one they have riseverything to achieve. >> reporter: safe on land the migrants will receive food andm journey is far from over they face lengthy immigration and resettlement procedures, all to live in a europe that's still reluctant to accept them matt bradley, nbc news >> you may well have your own views on the migration situation in europe. if you do, feel free to share them with us on twitt twitter @streetsignscnbc i'm @willemmarx. coming up on the show, brittain's banks could be facing other problems more coming up after this break.
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welcome back to "street signs. british bank cybg sealed al to buy rival virgin money. this will be the sixth largest bank by asseting shareholders receive approximately 38% of the newly merged entity. shares in norwegian air are trading higher after the ceo told the newspaper that the german carrier is in contact with norwegian it's a fresh wave of consolidation that's coming to the airline industry in europe everyone is talking to everyone norwegian has also been the subject of a bid interest in aip. france has called for general electric to face a fine. when it took over the french energy subsidiary they committed
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to create 1,000 jobs by the end of this year by the end of april just 320 positions had been created the french minister asked them to take measures to comply or receive a 50,000 euro fine for each job that is not created >> hermes joins kaka rant 40 our colleague joins me in the studio is this the landmark for the german index >> this is a wider trend because the luxury sector is now the largest sector in terms of market in the cac karant you can't argue that part of
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loreal is pushed up a bit above 20%. luxury's really taking the l lion's share the cac carant is up it's boostg the share price and is very good earnings for the past 12 years. the earnings have been boosted but their growing appetite for anything luxury including the hermes bag so i went to speak for an interview with the ceo of hermes it's interesting because 65% of the stock is still owned by the hermes family. this is the sixth generation of the family so i went to him and i asked him whether he felt like joining the cac cacant was a concentration for his group. listen. >> we are proud joining because it's a reflection of our
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facility, of our companion on the other hand, everything need to be redone, eing. >> reporter: you had standup performance in the past year or two and you called it exceptional in your earnings call in february however, in one of the big boosts of this result was the chinese consumer and the appetite for luxury and hermes bags and scarves the latest chinese data i'm showing a weaker trend there's rhetoric around trade wars including against china announced this morning by president trump. are you factoring a slowdown coming from the second half of the year >> you have to look at ing term since 2010 you see a great economic growth in china and a rising income and the demographic, we've seen a steady growth and from now i don't see
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any change >> no. this is the attraction i think we are still on a big wave and so far, i mean, c considering our company, everything is fine. >> in the past couple of weeks there's been a few downgrades of the hermes store some analysts believe that the demand for luxury might have peeked you don't agree with them? >> i think long term if you look at long term there is a great demand of are luxury what is quite new actually is that there was a polarization within luxury between brand that are doing well and brand that are doing not so well. compared to default whether it was a big average, so i think the unc and polarization, i think that the downgrade that we had before was more of a question about the pricing ratio and it's strong from there >> reporter: you are in the ultra luxury sector.
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at the same time you're trying to respond to growing demand you're opening new workshops you're opening two more in the next two or three years. so how do you square the circle of being extra luxury and being special and at the same time respond to almost mass market demand >> i think, you know, that's something very important is that first of all we don't see ourselves as a luxury company. we see ourselves as a craft man company. really the foundation is hermes is the increase. we try to do the best bag with the best quality that you can find, materials, and with a lot of training of our craft people and here is exclusivity. exclusivity is not in restraining the output of the company but it's by doing each time the best bag you can. and i think, you know, requesting the industry, exclusivity is not in the marketing plan, it's in our
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product. >> and that was axle in an exclusive interview to cnbc. interesting to listen to him talk and how they respond to the mass market demand and remain exclusive. that's the challenge with the luxury demand. they have a waiting list for their bags, which is pretty extraordinary. so one of the big boosts for their sales as well has been the ecommerce. they've been a big pioneer on that front at the same time they have the flagship stores. >> you talk about excludes sift, i do in my mind about retail space. the guys at the front door allowing you in. this is incredibly -- >> for the experience. >> how do you then repeat that online i guess that's a real challenge for luxury companies like them, isn't it >> absolutely. i did look at them it's both and they fit each other. whenever they open a new digital website in a country, they see
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sales boosted in the shops and online so they said it's two systems actually fit each other. and the flagship stores, they're like corner shops because there are windows and they're part of the show and the experience. sometimes they say to the customers they go in the shop and have a look, go online and buy it online and go to the store to buy it. not two systems that cannibalize each other, they complete each other. as long as we make it similar, they work really well and boost your sales as well. >> thank you so much for joining us talking to the head, mr. dumas of hermes. a combination of a bubble, ponzi scheme and environmental disaster that's how one official has described cryptocurrencies in the report from the bis, the umbrella group the world central banks. they say digital coins are not scaleable and could lead to a breakdown of efficiency and
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trust the more that they're used it said user reliance are flawed and overly expensive speaking of overly expensive a lot of questions around tesla. the founof the company, elon musk, said the company needs to make, quote, radical improvements to meet quarterly targets. mr. musk congratulates employees on the progress they've made on model 3 production but said more work needed to be done tesla has repeatedly set and missed production and delivery goals for that model 3 e-mail comes from -- story comes out of mary mcormack tweeted a video of her husband's tesla bursting into flames there hasn't been an accident and the incident came out of the blue, in her words the automaker has called it, quote, an extraordinarily unusual occurrence and said it was investigating the issue. that is not doing any benefit for their pr
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look at the vehicle burning. coming up on the show, is the era of the madmen model over we're live where they're discussing the latest trends in their industry. it's lights, camera, action as we get under caans. we find what it takes to make a successful campaign in 2018 and how the industry is coping with srti thnogs.diupveecolie
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welcome back to "street signs. i'm willem marx. these are your headlines this morning from london. trade tensions hit european markets as china slaps 25% tariffs on almost 700 american goods in retaliation against the u.s. saying only fools build walls. oil prices slip after beijing warns it could reduce tensions and russia and saudi arabia will agree on an output release. angela merkel prepares for a showdown with her csu partners
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and cybg seals a 1.7 billion pound takeover deal for virgin money creating brittain's sixth largest bank by assets well, it's been a pretty disappointing start for european equities let's take a look how the u.s. counterparts are fairing on that side of the atlantic as you can see, pretty much looking flat the nasdaq being called down 3 points, the dow jones being called down just over 1 point. the s&p 500 squeaking above the flat line there. in terms of those european markets, the major indices all into the red the ftse 100 down more than 10%. the xetra dax and the cac and the ftse mib down all around 1%. we can see the euro is weaker by a quarter of a percent the dollar weaker itself against the yen.
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cable interesting to watch thi week as we have more brexit discussions, debates vot in the house of commons and lords this week in westminster and the pound is weaker by 1/3 of 1% and finally the u.s. dollar also slightly weaker by 1/10 of a percent against the swiss. now unilever is saying good-bye to social media influencers who buy followers. the chief marketing officer is due to announce today it will never buy followers or, indeed, who doith so-called influencers keith weed said the practice undermines trust my colleague karen has no need to buy followers she joins us from sunny caans. >> i wouldn't mind lifting my 8,000 followers a little bit more fake everything. fake news has been a problem for the industry the content from brands placed
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alongside inappropriate or fake content. that's something that the industry battles as more technology comes into the mix. it's only moving in that direction more aggressively. last year we're talking about facebook google. this year everybody's talking about amazon which, of course, has a platform for some of the marketers to talk to those buying directly on amazon. they're making it as easy to buy ads as products. put them into a shopping cart and check out. that's a massive issue ft. meade yeah agencies. they're cut out of the business. so huge changes going on in the industry there's a feeling that the mad men era that existed for many decades is now over that's something that i spoke to mike casant about. he's the founder of media link take a listen. we did a little bit of cnbc branding around cannes this week. >> it's funny you said 2018. i kind of feel like we're back in 1859.
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>> 1859? >> yes i know i'm not that old. >> 1859. >> whawas in 1859? >> there was an interesting thing that happened in 1859. i'm going to sound very literary here in 1859 charles dickens wrote his famous "tale of two cities oh the opening lines were the best of times, the worst of times. >> right. >> for some it's the best of times, for some it's the worst of times similarly, in 1859 charles darwin wrote "the origin of species" which talked about the survival of the fittest and how only those who can adapt can survive and thrive i think 1859 feels a lick bit like 2018. it is the best of times and the worst of times, as in e same industries oft times and i would agree for sure with charles darwin that only those who can adapt can survive.
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so if you look at where we are today in the various industries that intersect and the cannes lions is the perfect place to manifest that intersection, marketing, media, advertising, entertainment and technology all coming together, and i guess if you take my 1859 approach, you might agree that it's kind of a similar day. >> michael cassant there a lot of long-time industry plays. among the 16,000 delegates but some new creative players. it's quite a fun filled week lots of parties and you can imagine this beautiful setting of the french riviera here let's talk more about the changes taking place in the indy joaggerty joins me, founding partner. thanks for joining us. >> great to be here. >> let's talk about the evolution that's been taking place. we've been talking all morning
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about the mad men era. the three martini lunch being a bye gone era for the advertising industry that must have been a fun time. >> three martinis at lunchtime, it would have killed you the drinking would have killed you. yeah, it was great fun. >> it was a symbol for largess in the industry. the ad agencies would go back to the client and say, here's what we came up with. those times are changing it feels as though the market of once the advertising guru wants them much closer than they have been in the past. >> the industry constantly evolved, constantly changes. we talk about technological change and technology's always been a driver of creativity but we forget the impact, the invention that television had on advertising and its ability to communicate with sound and
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pictures and emotion and all of the things that it did so we're an industry that's alwa under change, always constantly changing but i think today the pace of change is quite extreme. and nobodyeally knows quite where it's going to come out there are all kinds of predictions going on we were just saying earlier i remember in the end of the '90s, beginning of the '90s tivo was launched i was in new york there and "the new york times" doing a huge piece in their magazine on the sunday saying this is it this is the end be of advertising. people aren't going to watch it anymore. what are we now going to do? and it was a huge piece and, of course, where's tivo advertising is still here. advertising is still here. >> disrupted along the way >> yeah, of course it changes it evolves and the answer in all of those things is managing that evolution. but at the end of the day, you know, i always say principles remain practice in change and i
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think that, you know, ultimately creativity is the answer to those problems to make it better. >> let's talk about some of that creativity i'll let the viewers into a secr secret you do not meant to be here at cannes pays for it or you pay for yourself >> well, publicists can say that, but i'm here. >> and you deserve to be here. you're up for a big award. do you want to talk about how clean your clothes are >> well, i'm here for two reasons. i'm here, one, for the u.n. project that we are working on, which is share the meal app which is fantastic for the cinema industry. they've given the u.n. 30 million, something like $30 million worth of free air time to play out a plea to people to download this app so they can share a meal with a starving child. 3 million children a year die of starvation which is terrible, just absolutely shocking so i'm here for that
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i'm also here for screen vision. they're doing a lot to promote creativity within the cinema so i'm here for two reasons. we're keeping our fingers crossed on the share the meal app. we'll see. >> that's one of the big changes you're seeing in the industry where everybody is talking about real campaigns and the brand awareness for good you're talking about those various issues, not about some of the commercial benches that i have spoken about. >> i've been around for so long it's embarrassing almost for how long i've been around. one has seen a greater segment of advertising going against what we could call good. that's been a sort of constant growth in our industry as more issues appear. we're dealing with more and more complex issues communicating the solutions to those is fundamentally important. advertising has a role to that so you're seeing that growth but also there is still a commercial agenda here as well
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very important one. >> what do you make of the creative ads we're sthis year, talking about it's a tide ad last year one of the big awards was around the fatherleearless l that stood against the charging bull on wall street. what do you make of the campaigns in 2018? >> well, i am slightly suspicious of some of these things i think we've got tore weary of stunts versus long-term campaigns? >> reporter: do you think they're stunts >> i kind of think they've become stunts. we talk in advertising about persuasion and promotion both are fundamentally important. both are important to a brand. what we are tending to see today is an awful lot of promotion, not persuasion i an, i always use the example of the nike fuel band. wonderful promotion. everybody raved about it, it was fantastic. as a runner i'm a new balance man so i don't care how many
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fuel bands you've invoebted, how incredible they are, i never am going to b a nike. so a brand has got to think about persuasion and promotion where some say not enough emphasis on how am i persuading long term? how am i building the value to this brand. >> what's the role of technology in the mix ad tech is huge and the ability to target you with an individual campaign versus me as we sit next to each other on the sofa and watch television that's coming our way next. >> that's fantastic. it's a great thing to do you've got to remember, brands are shared experiences it's like culture. >> like the water cooler moment. >> like the water cooler moment. i want to share things targeting is fantastic its a wonderful, but also you've got to make sure you're talking to a broad audience. you've got to cast your net wide how do you know where your market is? how can you be absolutely sure you've got to kind of in a sense convert. i mean, part of advertising a
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job is to convert and people are for getting that that's the persuasion part of it. >> are you worried about the fake bots out ther the influencers who effectively don't have the followers they say they have and paying those influencers for the amount of eyeballs and views that the content is getting does that worry you? >> no different from a magazine claiming i've got readership of, you know, 200,000 people and actually it's 20,000 i mean, the same things apply. i have to say i'm chairman of wayla, a great influencer agency and they're very rigid about how they measure their influencer's audiences and how they can verify that to their clients, but i think that's an interesting development in the advertising world where you've got influencers who have an audience, know how to talk to that audience and a brand can say, okay, can i talk to them through you about what i'm doing? i think that's a great development, actually.
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very exciting. >> reporter: so lovely to catch up with you, sir john hegarty. i think it's time to jump in and have a bit of a swim and cool down baking here, isn't it? on that note, let me toss it back to you in the studio, willem we might be seeing new technology come into the mix and debating the reach of some of the ads. it's something the industry has long dealt with in the past. coming in a different form on technology platforms. >> enjoy the swim and the lunchtime glass of rose. now the u.s. and south korea will announce a halt to major joint drills it comes with a caveat that the exercises can resume if the north does not keep its promise to denuclearize. president trump surprised people after he announced an end to the drills if you have any views on any of those issues, feel free to get in touch on twitter or tweet me
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directly @willemmarx coming up on the show, find out why a goal in russia was responsible for a seismic activity in mexico more on that mini earthquake (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. then that data runs across our network,
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welcome back to "street signs. crude prices slightly mixed this morning. crude had come under a bit of pressure on friday you may remember after china threatened duties on american crude imports as the trade dispute between washington and beijing continues to escalate. another factor weighing on the price is an indication from both saudi arabia and russia they could losen supply constrain i'm joined by will ryan who's with granite shares. does it matter about the consensus if they say this is what we're doing >> at some level the key thing is what happened to the meeting with russia and saudi arabia are the biggest players in the opec cartel they're deciding what they're going to do. >> is that the way it goes
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>> yeah. >> for the saudis, right, they have a huge amount to make up in rms of lost grou, both in terms of their budget deficits and currency reserves, cash reserves they've been spending down the last three years. so for them, they want to increase revenues but they're also under a bit of pressure presumably from the u.s. to try to keep that price at a reasonable level that's a difficult path to tread, isn't it? >> it's always a difficult balance, who they want to have higher oil prices but at the same time there's a global market and they'll have, you know, trade pressures from the u.s., from other countries in particular but president trump's been out very vocally saying the oil price is too high, wants that oil price to come down. the u.s. and saudi arabia have that very important relationship i think he'll use that pressure to try to influence them to put more production back into the market i think for the saudis as well, they can find the way to increase production but without materially dampening the oil price which is also the key goal
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for them. >> that is presumably helped by the fact that venezuela's output is collapsing? >> that's right. >> they can fill that gap without necessarily impacting the bigger picture >> venezuela is pulling away pretty dramatically. most people know the domestic situation is there and you also have iran and while the potential short fall, particularly after the -- >> do you set any stall by this whisper, this rumor or theory that they may have struck a quiet deal with the saudis on the iran deal, one by which the saudis would agree to keep a price at a certain level as a thank you? >> i'm not sure i'm necessarily going with that entirely, but i think certainly the saudis try and maintain the price around this kind of level. >> to keep them. >> exactly at the same time they have to service their own domestic economy, keep the other opec members happy pushing for higher prices
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>> we've seen the spread between the brent and the wpi, what could narrow the spread in the future >> a lot of this is about the potential of china tiffs on u.s. imports for -- you look at the shale revolution and the shale production in the u.s. that's contributed a huge supply in the u.s. market and helped push that down a little bit. keep u.s. crude cheaper than european crude i think there's some fear if the chinese has attacks on u.s. crude imports, that could affect the spread. >> in terms of the rhetoric, what will you be watching for this week in vienna? >> i think to see exactly what sort of output gets agreed i think somewhere in the region of 500,000 barrels in terms of increase would be somewhere where i think it would be reasonable and that would, you know, probably appease the russians who would want more versus the saudis who want less
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but i think somewhere in that region probably gets the market, you know, satisfied that increased production but it won't materially affect the price. >> who are the big losers if that price continues to rise >> well, if that price continues to rise it's anybody that consumes a lot of oil, a lot of energy so the biggest consuming countries that are not actually producing oil, someone like india, for example that's a big factor with elections coming up there. the chinese obviously still consume a lot. the largest consumer in the world. plus also donald trump don't forget the higher gas prices in the u.s. are a big deal. higher gas prices now, the highest they've been for a few years that can affect sentiment and economic growth stays materially high. >> thanks so much for coming in. will rhind here. the company spokesperson
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saying that the ceo of audi has been taken into police custody that is the latest twist and turn you can see the price now down almost 1% he has been taken into police custody and e volkswagen spokesperson saying the review hearing is ongoing to decide whether he will be remanded in custody. ♪ ♪ bad news for germany the reining champions of the world cup saw their campaign start rather badly after they faced a surprise 1-0 defeat to mexico elsewhere, five-time winners brazil were thoeld a 1-1 draw by switzerland. what were your highlights for the weekend? >> this was certainly one of them mexico shocking the world by
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inflicting the first group game world defeat making sure that germany lost their first world cup group game for the first time since 1982. the german papers have been going to town on this this morning. the biggest newspaper, defensive chaos at the world champions it's all about survival they say. >> suggesting the team has already passed their best after one game >> one game. >> where's the loyalty >> where's the loyalty, indeed they were over run and they did struggle against the mexican side that didn give them a second to breathe and there were jubilations in mexico city as you mentioned, the seismic activity was caused by the amount of mexicans. >> look at them. they're jumping up and down. >> and causing a minor earthquake but they weren't really bothered. mexico has always done traditionally well in the group stages and getting into the last 16 never making it beyond the fabled fifth game that they're calling it is key for
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them you mentioned the weekend, but just on friday evening i just want to mention cristiano reinaldo nobody was talking about him in the buildup against spain. well, it was all about spain changing their coach cristiano reinaldo had a smile on his face in the national anthems. a hat trick. i mean, he scored three goals in three previous world cups and now he's scored three in one game he's become the fourth player to score in four world cups and you may or may not notice but after the first goal scratched his chin now interpretations are that this was a dig at adidas who are promoting lionel messi as the goat, greatest of all time lionel messi fluffed his line from the penalty spot and brazil wasn't much better. >> right now 1-0 to reinaldo. >> 3-0 to reinaldo because he was stunning
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in that 88 minute free kick, 20 yards from goal, cristiano reinaldo, he h a record amount of direct kicks outscoring 44. 45th time lucky, top corner. it was almost never in doubt. >> makes it look easy. shares in virgin money have reversed course and turned negative after cybg sealed a 1.7 billion pound deal to buy its rifle lender it will create the sixth largest bank by assets let's take a quick look at the u.s. futures ahead of the market you can see all of the industries looking relatively flat the nasdaq being called down 3 points the dow jones looking to open slightly lower and the s&p 500 the only one there with any positivity though very, very slightly above the flat line let's take a look at the european markets as well the ftse 100 is back in positive territory. down 1/10 of 1%. very slightly above the flat
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line the other three major industries in europe still in the red the xetra dax down 2/3 of 1%. the long-time agreement may be under a bit of pressure. the cac down 1% and the ftse mib down 1/5 of let's take look at the foreign currency markets the euro is still weaker against the u.s. dollar. the dollar itself is weaker against the yen and ahead of a brexit related week, the pound looks to be weaker against the euro peeb dollar that's it for today's show i'm willem marx. "worldwide exchange" is coming up right here, right now
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welcome to a special edition of "worldwide exchange." live from london i'm brian sullivan we are going to hit everything from the markets to your money to mna and the best bet for your investments now. buckle up. it is monday, june 18th, and "worldwide exchange" begins right now. ♪ ♪ how could we not with the music. good morning,


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