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tv   Street Signs  CNBC  August 15, 2019 4:00am-5:00am EDT

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welcome to "street signs." i'm joumanna bercetche >> i'm willem marx here are some headlines. european equities tentatively trade higher after a torride edday for global markets president trump slams the fed and blames jay powell for rising fears of a recession after the u.s. two-year and ten-year yield curve inverts. china stocks rebound after
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president trump discusses a personal meeting with xi jinping. carlsberg shares are at a fresh all-time high after reporting strong first half growth in asia smashing expectations we'll speak to cees hart at 11:00 central european time. it has been a tumultuous 24 hours for stock markets.800 poie dow, lots of volatility and red ink on the screen. all precipitated by the inversion of the twos and tens yield curve. we started off attempting to open up firmer, but as some of that positivity fizzled out in the last half hour or so
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now every european major is trading in the red the italian index is closed today for holiday. all of the rest are trading in red territory. ftse 100 down about 0.35 the xetra dax today, again, just below the flat line. a lot of scrutiny on export-sensitive sectors today we are seeing a rebound in tech, for example, one of the sectors that is exposed to the trade war. cac 40 trading below the flat line you can see the spanish index just shy of the flat line. yesterday a lot of the action happened in yields so let me take you to the picture for yields this is the global yield environment. you can see the ten-year u.s. treasury is 1.58 we rallied more than ten basis points yesterday that was the cattalyst for the yield inversion. the ten-year bund, all-time
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record lows. every day we come in and talk about record lows in the bund. yesterday again yesterday, another record low for those of you out there, it might be worth plotting, if you can, the chart of the ten-year bund versus the european banks index. strong correlation as yields keep moving lower, banks are underperforming in europe so this is the picture the ten-year gilt, 45 basis points we talked about the u.s. yield curve inversion twos and tens in the u.s., you can see that chart in front of you. we tipped slightly negative in intraday we got below zero and are trading around there now historically that's been a good indicator for an upcoming recession. though i would just say couple of words of caution. causation is not necessarily -- correlation is not necessarily
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causation. and number two, look at how long the period of inversion lasts for. if it's very brief and the yield curve resteepens, that's less of a warning sign the third thing is how the fed would react in that scenario so take all of these things in the context of what the fed may or may not do. but of course the markets were gripped by that inversion yesterday. that was a warning signal to u.s. equities. >> one causation i think we can agree on is the causation whereby we saw that yield curve inversion and then the selloff in the u.s. down 3% on the dow jones. nearly 3% on the s&p 500 more than 3% on the nasdaq it was the worst day for the day since april 2018 it is the fourth largest point drop in history, fall beg low the 200-day moving average the energy and industrial stocks are well into correction territory as are financials.
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energy industrials two of the sectors that saw the worst day this year. for a bit of perspective, don't forget these numbers compare them to christmas eve. not quite so terrible. the s&p 500 is up more than 20% since christmas eve. the nasdaq down 3% yesterday that's up 25.5% since christmas eve. and the nasdaq really moving very negatively amongst some of those tech stocks with the exposure to the trade war. let's look at commodities. gold saw a pretty strong day, as you might imagine. it's falling slightly back now still well above the 1,500 hovering near six-year highs brent trading lower. 59.26. wti. 55.13. wti almost 30% off the recent high in march of last year to give you a sense of how much an impact the concerns about global trade are having on the energy markets let's check in how asian markets
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have closed with matt taylor in singapo singapore. >> hi, willem. a number of markets ending the session firmer we started to see the u.s. futures stage a bit of a rebound. some markets are weaker. japan, lots of action there. all attention on falling yields and the inversion state side, but jgb, the japanese government bonds falling to lows. yielding the weakest we've seen in three years, since the middle of 2016. japan markets closing in negative territory, down about 1% one of the worst performers across the region. to give you a clue to the damage, the damage was fairly contained. a lot of money flowing into the yen. australia saw some of the steepest losses today, shy of 3% we saw some strong jobs numbers out there. that may dash hopes of a near-term interest rate cut.
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chinese markets, the shanghai closing higher the fix on the yuan was above the 7 handle again relative calm in the china markets. the hang seng, this has been beaten down, we have seen all of the gains this year erased on the hong kong market, today up by almost 1% at the close of trade. market closing imminently as we speak. guys, back to you. >> excellent some stabilization for chinese indices there. president trump resumed his attacks on the fed in the wake of the inversion-linked market turmoil. he tweeted chair jerome powell was clueless and that the fed is holding us back. worth bearing in mind that since the august 1st tweet about tariffs the dow is down 5.5% let's bring in kristoff reager
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and ron oshg golds joins us around the table some say this could be the signs of an upcoming recession, but with the 30-year u.s. yield trading below fed funds expected, isn't this just a sign of a recession pending >> it's more than meets the eye. it's not a macro driven bond market rally even yesterday when equities were plummeting, pure flight to quality, if you look at the bond market, the right prescription is flight to yield is how we put it in our daily. if you look at the tens and thirtys spreads, even btp,
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italian bonds performed in this equity selloff yesterday at a time where other indices were widening. this goes a long way to underscoring how desperate investors are to get a positive yield. and in addition to this, we have market technical factors where a lot of accounts like alm, like risk parity funds really need to receive long-dated swaps this is really causing the very vicious curve moves of late. >> it sounds like you're discounting the inverted yield curve as a harbinger of a recession. i wonder if it becomes a self-fulfilling prophecy >> feels a little bit like, i think, december last year. back then it was the twos and tens u.s. swaps curves that inverted i said i love equities
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colleagues coming up to my desk asking what's happening here are we heading to recession? in turn we had the equity turmoil which eventually then caused this change of heart from the fed and helped to stabilize things right now the fed is in easing mode, but the market wants more. i think the recession signals are clearly not what they used to be. we have the term premium at the longer end in the u.s., at record negative levels so i think it's really just this global low yield, this negative yield environment in particular in europe which is bringing down longer dated u.s./uk yields, therefore, yeah, accentuating the flattening i don't think it is purely macro gloom that is responsible this time around. >> you mentioned your equity colleagues asking you for color. let's bring in ron
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kristoff said the yield curve lost its -- well, is not as strong of an indicator as in the past for recession signals how do equity guys view this yesterday was a heavy day for banks in the u.s. and europe >> sure. banks make a lot of money from net interest income, which gets driven by the yield curve. as rates go down, it's harder for banks to make money. they lose less money because you have fewer loan losses, but generally low but steady level of interest rates are good rates in japan and the eurozone negative this is a major head wind for bank earnings. >> what is more important, the absolute level of yields or the yield curve, the spread between the two-year and ten-year? this is an important point, if we are in a situation where the ecb all of a sudden doesn't have a lower balance, they can keep cutting the negative as long as the curve stays steep. that shouldn't be as bad for the
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banking system, should it? >> what matters for the banking system is the level of the short end of the yield curve but also the level of the slope and the growth if the yield curve is steep because of growth, that's good for banks. what's bad is if the yield curve is sloped and no growth. >> what about all the banks that say they want to be data dependent, but in some parts of the world inflation data is ticking higher >> i think the market right now has pushed central banks to deliver more if the ecb fails to live up to expectations, clearly thes will badly. italian spreads are likely to rewiden more viciously even though one can clearly argue whether it makes sense to
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start net asset purchases in europe at these yield levels, they are still bound to deliver. when it comes to the fed, bank of england i think clearly -- they will have more restraint especially with politicians in the u.s. trump calling for more aggressive easing. powell should clearly think twice. at the end of the day we've had a lot of fed members, also fed research showing if really the economic situation turns worse, they need to get ahead of the curve. they want to avoid the fate basically that europe or japan, bank of japan is facing with negative -- with yields being at their limits therefore then also you have more aggressive steps likely this is what the market is discounting now. >> if banks, central banks in europe start to introduce more accommodative measures, we expect that to be a drag on bank earnings
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how much does that vary by geography across europe? >> it varies massively when you look at the big picture for europe, profitability is high single dates as measured by r.o.e. you have the germans who will make 2%, 3% return on equity then you have the french, italians, they make 8% 10% 8%, 10% is not bad, 2%, 3% are some of the worst returns in the world. that's lower than what the japanese banks make for example. >> we'll talk about that more in the next segment kristoff, back to you for one final question what stops this bid for duration here >> sorry >> what stops the bid for fixed income and wanting to own duration here? what do you think will put an end to this circle of doom we're in >> one could have thought
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inflation. but if you look at the inflation releases this week, from the u.s. and from the uk, the market rallied after this it's just seen as delaying the inevitable rate hike -- rate cuts unduly. right now i think the self-reinforcing bullish flattening dynamic seems entrenched into the crucial central bank meetings in september. really dips are continuing to be bought across most major bond markets for the time being >> thank you for your views, sir. very interesting time. reager fm commerzbank. coming up, trump mixes messages on trade and hong kong. details after this break
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president trump has publicly linked a chinese trade deal with
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the continued unrest in hong kong in a series of tweets the u.s. leader suggested a personal meeting with president xi and said china wanted to make a deal he seemed to insist beijing should work mu mainly with hong kong first eunice yoon has more details >> reporter: so far china has yet to respond specifically to president trump's tweets on hong kong but the state media has weighed in more broadly on what they see as u.s. interference for example, the official peoples daily posted a commentary that reads to heck with the u.s.'s concern on hong kong a china daily editorial says u.s. politicians tweets expose their ugly hypocrisy beijing has told the world to mind its own business when it comes to hong kong it is unclear how president trump's tweets will affect the ongoing trade talks. there's been a concern here that president trump could use the
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hong kong situation to pressure beijing during the trade negotiations as for president trump's tariff reprieve, president trump s suggested in his tweet the u.s. expects china to reciprocate his goodwill xinhua says chinese negotiators lodged their objections to the september tariffs, but minimal reporting suggests that beijing doesn't feel the tariff reprieve is meaningful. eunice yoon, beijing. there was a lot of focus yesterday on what happened in u.s. fixed income. let's take you to some moves in the u.s. yields. the two-year, five-year, and ten-year the two-year note trading at 1.57 the ten-year at 1.58
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big questions for investors, but that did send shockwaves through markets yesterday. switching to u.s. banks, we did see some heavy declines in that sector as we were just talking about. banks are sensitive to yield curve movement, especially the slope of the curve between two-year and two-year. on the back of that, we saw heavy declines heavy day for u.s. banks also a heavy day for european banks. we're there now. to show you the picture this morning, we have deutsche, 1.4% weaker i believe this is close if not through the all-time lows there. rbs trading on the back foot, down 2.7%. another bank we've been watching closely is commerzbank, down 5%. today rebounding somewhat. italian banks are closed for business today because it's a
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holiday. let's get back to our conversation we were talking about net interest margin in our first chat obviously in the u.s., net interest margins are higher because rates are higher so talking about average net interest margin of 3%. europe has been having net interest margins moving lower and lower. we're at about 1.4%. japan at 1.3%. are european banks headed towards japan? >> that's a good question. in europe, we have much more of a divergence between profitability. so japanese rates, nims and r.o.e.s fall if you look at the 2009 and 2010 levels, r.o.e.s and nims have fallen a lot europe is holding up in aggregate. it's not gloom and doom, but within the banks there's a massive divergence some banks, specifically the germans, doing much worse.
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>> the average return on equity for german banks right now is 2% to 3%, versus italian banks, 8%, 10%. the focus eventualhaven' recent. should we really be worried about profitability within the german banking system? if so, what can be done? >> sure. from a profitability perspective, the german banks are in a way worse position than italian banks. italian banks have done clean-up on the balance sheets. the germans next year will make 2% to 3% return on equity. this year will be worse. that is half of what the japanese make. the big japanese banks make 5%, 6% a lot of clients ask me are we turning japanese when i go to japan they say are we turning european? >> german banks is one of the banks in europe that has been
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trying to aggressively restructure and cut costs. i wondered from your perspective, which banks in europe have seemed to do that well, and have been fitted from it >> the best restructuring stories or cost cutting stories have been northern european. scandinavia and the dutch banks. over the last ten years, they cut headcount. they've done it because of two things their flexible labor markets and smart management teams they're forward looking. they view digitalization and restructuring well the french are showing signs of getting on this bandwagon. they're showing -- the market applauded this -- the french began to talk about cost cutting, and the markets are waiting for that that's a big difference between japan and europe some parts of europe you have seen aggressive cost cutting and balance sheet rationalization, much more than in japan. one country that we have not mentioned is the uk. i want to ask you about british
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banks. if you're looking at the stocks, which is the greater challenge is it brexit for domestic-focused banks or global economic slowdown for those banks that are listed here that maybe have a slightly more global outlook and it particular some of those that have a focus on asia? >> we've been cautious in the hsbc this year for that reason the global economic slowdown but also hsbc has been the traditional safe haven stock a lot of invests own it. it's a positioning call. a lot of people own it the domestic uk banks have been less owned we're quite concerned about hsbc, in particular hong kong profitability being at peak levels we think that will come down over the next couple of years. >> is this the year we will see a cross-border merger or acquisition effort within the eurozone banking system? >> short answer, i doubt it. europe needs it. europe needs more consolidation. i doubt they'll get it
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>> we'll leave it there. thank you for chatting with us and breaking down the situation for the european banking system. coming up, u.s. bond yields are flashing recession signal but the boss of deutsche post siz econom says economic fundamentals in germany are strong (client's voice) remember that degree you got in taxation? (danny) of course you don't because you didn't! your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you.
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welcome back to "street signs. i'm willem marx. >> i'm joumanna bercetche. these are your headlines this morning. european equities search for direction after a torrid day for global markets that saw the dow plunge 800 points. president trump slams the fed and blames jay powell for rising fears of a recession after the u.s. two-year and ten-year yield curve inverts. chinese stocks rebound as trump links a trade deal with beijing to protests in hong kong
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and suggests a personal meeting with xi jinping to discuss the ongoing crisis carlsberg shares are at a fresh all-time high after the beermaker reports strong first half growth in asia and smashes ebit expectations. we'll speak to the ceo at 11:00 cet. some uk retail sales, not great, not terrible. up 0.2% for the month. up against june's number of 0.9% better than the expectation of negative 0.2 so they've increased july retail sales for the year up 3.3%. not quite as good as the june number of 3.8, but it is again better sthan tthan the expectedr the july retail sales 2 --
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ex-fuel, 2.2%. a beat again the context here we've seen wage numbers increasing the fastest growth in 11 years >> we had lots of data out of the uk all of them have been solid. we had strong wage growth. we had better-than-expected cpi numbers, and now the stronger retail sales numbers all of this tells you a picture of a still relatively robust spending out of the uk consumer. >> i would say this. we have this consumer resilience i saw some interesting data coming from the eu commission about the expectation of brits when it comes to the economy here in the uk this is in the context of brexit they are more negative about the economic future of the uk than any other country in europe bar bulgaria sterling there trading up almost a fifth of a percent against the
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u.s. dollar. >> attempting to rally a bit there. also tempting to rally are european indices most of them are hovering around the flat line. xetra dax trading around flat. yesterday was an extremely heavy session. stoxx 600 down about 2%. xetra dax down about 2.5%. we are recovering a little bit today. but still really struggling to find a solid bid this morning with so much negativity out there and the ongoing bid for fixed income continuing. the spanish index is down about 0.3% italy markets are closed today for a public holiday that does tell you that periphery still a bit under pressure this morning. again, with the focus yesterday on the global yield environment that brief curve inversion we had in the u.s., twos and tens briefly dipped into negative territory. that sent shock waves throughout markets. typically that's been a leading indicator for recession.
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as we've been december cuiscuss time could be different because of the vast amount of negative thinking going into the market that takes some of that signaling out of the market. people are watching that closely, and there's a lot of fear prevailing. you can see ten-year bunds, minus 65 basis points. record lows for the bunds. we say this day after day after day. minus 65 is where we are the entire yield curve is negative as we've been talking about. ten-year u.s. treasuries, 1.58 this morning ten-year japan, minus 23 basis points gilt, we have that trading at 45 worth bearing in mind the uk gilt curve is also inverted, minus 2 basis points the ten year yield is lower than the two year yield in the uk interesting for a bank that is implying rate hikes. a quick look at u.s. futures
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after yesterday's worst session of the year with dow closing below it's 200-day moving average, down 800 points on the session, today all three majors are seen opening up in positive territory. steve liesman filed this report on the selloff state side and the possibility of an impending u.s. recession after two white-knuckle nosedives in the dow this week and a bond market signal flashing a tried and true reserbary sign, the "r" word is being thrown around a lot. global growth has been weakening. the trade policy uncertainty affecting many economies and are the central banks out of bullets? that's the concern of mohamed el-erian >> it's actually a very rational reaction a rational reaction to concerns about global growth after the numbers we've gotten this week about policy ineffectiveness by central banks, about liquidity
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being not as deep as people have, and a sense we entered a deglobalization phase. put all these things together, what you're seeing is a very normal market reaction >> we learned today that german growth contracted in the second quarter. joining three other european countries including the uk, sweden and norway that have shrunk their economies this year china's growth is slowing, hit by tariffs and other issues. the fear is that tariffs and weak global growth wash up on these shores to be sure ture, it could be ths economy overcomes this the economy is growing at a decent 2% pace, but markets are strongly expecting further interest rate cuts from the federal reserve as much as three quarters of a spent taj poiperct over the remainder of the year >> a cut in rates is very, very
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likely to be appropriate on current facts. but i think that the economic debate is largely missing the major issue. the major issue is that the fed doesn't have that much fuel in the tank >> the fed gathers next week at their annual retreat in jackson hole, wyoming, where we will find out how they will use what they have left in their tank and throwing around the "r" word let's talk about some european corporate news. carlsberg posted a 6.5% rise in first half sales on the back of better margins and stronger demand for premium beers the danish brewer reported solid growth in asia but struggled in russia, a key market, where
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total volume fell 3% we'll hear from the ceo at 11:00 central european time. maersk backed its full-year gi guidance they said global containers grew during the period at 2%. they said further setbacks in trade negotiations between the u.s. and china would hurt the container business and aegon reported a worst than expected solvency rate in the first half of the year they blamed low interest rates and unfavorable market developments for the weaker capital position the company did report better than predicted pretax profits. the firm announced this yeek wes ceo would step away next year. worth bearing in mind, they are
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levered to the interest rate environment. this one down 35% in the last 12 months walmart will report second quarter earnings later today they are expected to post a 1.6% increase in year-on-year revenues, but the rooming threat of those added tariffs on goods from china could weigh on the company according to analysts. i want to bring in patrick london thank you so much for being with us if the u.s. sees a recession, that's a hypothetical, how recession-proof is walmart >> walmart is a global company it's not recession-proof in terms of looking at a global recession. but they're well positioned in terms of what they've been doing. looking at 130 billion for q2. that's what wall street suspecting 1.9% to 2% up. that's on par with what's happening with the markets in terms of retail in general retail is doing okay in the u.s. quite a lot of confidence. >> i want to bring it back to
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what willem was saying on tariffs. particularly because the second round of tariffs that is postponed to december, the 300 billion was targeted more to consumer products that would typically be sold in a place like walmart appar apparel, toys, things like that. what would that mean for walmart's earnings, margins and is there an expectation that they would be forced to pass the pricing on to consumers? >> i think one strength of walmart is the supply chain. so in terms of how it's sourcing the products, i think you can look at other sources rather than just china. they can kind of negate those potential tariffs. yes. tariffs will potentially have an impact i think they've got to be thinking about that. if you're looking at the tariffs and the way they were announced, there was a 10% tariff on consumer goods that's been pushed out to december we'll see how that happens in terms of earnings. in terms of earnings for q2 and
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q3, it won't impact them now >> out of interest, is walmart better positioned than other big u.s. retailers when it comes to the supply chain options available to them? will they face the same challenges as competitors? >> i think what walmart has done, it has grasped digital and e-commerce much more than competitors. walmart is expecting the e-commerce sales for walmart to be 35% up year-on-year last year it was over 40% for the whole year it's a positive. >> do you see walmart actively taking market share away from amazon amazon still captures about 40% of the e-commerce market in the u.s. walmart had been growing quite extensively in that space. growing north of 35% in e-commerce are they succeeding at taking market share away from amazon? >> both those two major companies are growing massively. nair ta what we're seeing from an amazon
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point of view, we've done research and found that 52% of online spend is now on amazon. so it's massive. walmart was like a lot of retailers, a bit slower to the market, didn't see the amazon threat early on. they bought jet.com in 2016, and they bought a culture of digital and are digitally transforming their business, much quicker than their competitors >> i want to ask you to look into a crystal ball. do you think by not moving as they might have done to counter the threat from amazon, that five, ten years from now we'll see that in the market share but also in the margin >> i think certainly what you'll see is walmart have grasped that quicker than competitors they should be in a stronger position since they have a global footprint they are able to think digitally now, not just across the u.s. but also globally and grow the markets. >> patrick, thank you very much for joining us
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welcome back the economic warning signs may have been flashing in the u.s. and germany, but europe's largest postal company, deutsche post, tells cnbc that economic fundamentals remain strong annette joins us from frankfurt with more details. you sat down with the ceo of deutsche post what did he tell you about the macro environment and the impact on his business >> actually sort of for the short-term he is also clearly worried about the deterioration of the global outlook, talking about trade, et cetera he's quite optimistic that in the medium term we can get i
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fixed and things will be better in the medium term that's an interesting one. he's not so much concern like those doom say sayers that we'r head headed towards a new era of globalization and taking away all those benefits that we've been having. he's more or less an optimistic person when it comes to the outlook. let me bring you the interview now. he clearly talks about the global economy outlook and also what he thinks will be crucial for the next decade. take a listen. >> at the moment we see a slight slowdown of the economy. that's true. but overall the fundamentals are still intact we have increasing middle class around the world they will buy more we hopefully will get more certainty as well. that's the biggest issue with the current discussions, that it
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creates uncertainty. uncertainty means for business that they delay investment and for consumers that they potentially delay investments because they might worry about if they still have jobs sooner or later if that goes away, we will see a very good development again in 2020 we expect decent development in 2019 what's your vision for the trade war which we're currently seeing between the u.s. and china do you think it will go away if so, has it done already a lot of harm which can't be remedied? >> i hope that they find good compromise, of course as always a need for compromise. if you are look, no one country is completely right, the other completely wrong they have to find a balance to the benefit of both and to the benefit of the overall world i'm optimistic that china and the u.s. will come to common ground
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do you think the whole topic will spill over to europe in that we are going to see more of a trade war between europe and the u.s. as a next step because it seems like that is very much on the agenda. >> overall i think connectiveness and open trade is good for everybody we measure that connectiveness, and this index clearly shows that the countries who are most open have developed the best and to the best extent there's not a single country that's ever been successful with protectionism. there is none. and that's the reason why i believe all politicians will see that the way going forward is open markets this year is a great sign. the eu signed with japan now we signed with latin america, another free trade agreement. that is all encouraging. the trend is heading in the
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right direction. europe has to ask themselves why we want to introduce these things that are hindering trade. that is not right. so we ask ourselves first do we need products which are coming to europe, if that is necessary. so the better it is for everybody it is when we have really open borders. that's very clearly visible if you look into the statistics >> so, as you are hearing, he's clearly an advocate for europe and thinks that europe's a very good place to be in to do business at the same time he urges polecymakers to wake up. we need a rational approach to economic policy. and he was also saying we need to have bigger champions in europe, referring to the haven't
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po recent policy actions. so clearly he wants to know that europe will be successful but that means changes in the head of policymakers also in brussels coming back to your question, what it does to his business and the business model, deutsche post hiked their guidance for this year, which is an exception to the overall profit warning rule here in germany he's saying that as of now they're not affected by the trade war as such. >> thank you very much for bringing us that interview. wework revealed a first half net loss of 9$900 million, and posted revenue of 1.54 billion they plan to raise up to $6 billion in debt alongside its public offering. the work space rental company was valued at $47 billion after
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the most recent fund-raising round. wework will be the latest unicorn to go public this year this week on cnbc we have been trying to offer you food for thought when it comes to investing in what we eat we've discussed issues that include food security and sustainable farming. today we're looking at the business of food, the industry's latest innovators and the next distributors at the vma museum, you can go through the food cycle from farm, field, to fork and ask how we can reduce food waste. katherine flood, the co-curator of that exhibition which is open at the vma museum. can you just give us a taste it brings together the work of
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creative individuals, organizations, communities who are radically reinventing how we grow, distribute and experience food it's really asking questions abt how could we build a food feature that's more sustainal, fair and delicious it takes us through a journey of a food cycle starting with waste. that can be the beginning of new cycles of growth and production and looks at how artists and designers are collaborating with chefs, farmers, scientists at every level of the food system >> curation of any exhibition is always an interesting process. you're trying to find representative samples of an artist's work or a theme with something this vast, how on earth did you decide what you were going to put in there >> with great difficulty i think the amazing thing is that questions around the feature of food are fuelling a huge amount of creativity.
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and for us seeing that collaborative and experimental work we tried to select things that were all about pushing our imaginations beyond innovations that are just delivering more of the same really taking on the message of increasing food democracy, getting more people involved in the debate everybody has a stake in food. i think a lot of people feel it's something that government is, and corporations will have to decide for us behind closed doors. this is saying it's something we all need to have a say in. >> did you find certain countries or parts of the world were better at innovation during your research? did you go tthe world and think there's so much going on in this one country that perhaps it's not seen elsewhere >> as soon as you start looking at food as a system, it's a global subject so we were not trying to tick off every country, but there is a vast geographical spread in
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the show seeing a huge amount from south america, from europe in particular >> i'm interested in this concept of food democracy. you say that it's important that everyone gets involved in the conversation is it then your assessment that in order to affect change in the industry it has to come from the consumer level rather than governmental level >> i think it takes both i think we're seeing a desire from consumers for more transparency, more interest in where the food comes from. the awareness of issues of food waste. also, you know, thinking more broadly about where innovation comes from. not just within industry, but it can come from community projects it can come from artists and designers, taking a much broader view of expertise. >> one final question from me. based on all the conversations you had with people over the last few years getting ready for this exhibition, what was it people were most concerned about
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when it came to food >> right now food waste is one of the biggest conversations bio diversity as well. the problems around ecology and environment, i think they were driving issues >> all right thank you very much for running us through the exhibition. that's katherine flood, co-curator of food at the vma museum it runs through october. we had a huge locroller coar ride in u.s. equities yesterday, the dow plunging 800 points towards the end of the session today the picture is mixed indices are attempting to turn positive but we're still very much in the negative zone. ftse 100 down 0.3% german index just below the flat line we did see a bid for the dollar yesterday, but today the dollar is trading on the back foot. sterling is trading stronger we had stronger uk sales numbers
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out of the uk driving that strength euro flattish at 1.1150. a quick look at u.s. futures after that heavy day of declines yesterday, all the three makers are seen opening up in the green. all eyes on u.s. sales data. for those of you watching in europe, stay tuned, we'll speak to the carlsberg ceo about the brewer's strong first half results. that's it for our show today. i'm joumanna bercetche >> i'm willem marx "worldwide exchange" is up next.
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markets in turmoil the dow coming off the worst day of the year, dropping 800 points in its fourth largest drop of all time from that perspective this as the bond market signals a recession could be around the corner we are covering every big story impacting the markets and your money. it's thursday, august 15th "worldwide exchange" begins right now. ♪ >>

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