tv Street Signs CNBC July 9, 2018 4:00am-5:00am EDT
welcome to street signs. these are your headlines the ftse opens in the green despite unrest in the british government secretary david davis over the compromised brexit plan with his successor reported to be announced within the hour. renault into the -- a briefing on emissions procedures shares take off as investors
look beyond recent disruptions the world's biggest technology listing in four years plans to light up investors as it sinks below the offer price on debut trading day in hong kong good morning everybody we've got a special street signs show for you today good to have you. >> thanks for having me. >> it's great to be out of the heat, but it's a little warmer here in the uk >> let's start talking about markets and take a look at how things are trading overnight as you can see, right before you it is a picture of green markets are behaving relatively well u.s. markets all traded higher
friday nasdaq leading the charge there. continues to do well one of the best weeks in a while. with all asian indices trading higher even though both of the tariffs on the u.s. and china side have been applied trading up at .6% only one hour into the trading session let's look at individual indices and see what the picture looks like all of the majors are trading higher this morning. the all important uk index brushing off any political uncertainty at this point in time about 20 points higher you can see that's trading up in the green. there's a positive start to the week let's get into sectors and see where some of the leadership is coming from.
technology leading the charge. technology, of course, is a -- basic resources rebounding the one sector in the red is utilities, down about half a percentage point let's take a look at foreign exchange all eyes on cable, which is surprising a little higher this morning about .4% higher all eyes rn cable. as you can see, there hasn't been that much of reaction yet in that. >> uk brexit secretary david davis has resigned from government in protest over theresa may's soft brexit plan in his resignation letter, he said the general direction of policy will leave us at best in weak positioning and possibly an inescapable one. davis expressed skepticism that the british parliament would
regain powers after leaving the eu boris johnson reported said that defending the prime minister's plan was like, quote, polishing a toured the prime minister took issue with that, and that she disagreed with the characterization of brexit policies she's going to tell mps that she's listened to every possible idea and that is the right brexit meanwhile, the support has been thrown behind the plan calling it a realistic compromise. making perfect the enemy of the good. >> davis departure comes after the cabinet backing of the compromised brexit plan sparking criticism that it is soft. during a meeting at checkers an agreement was reached for a trade -- including a treaty committing the uk. the continued harm onization with eu rules.
i'm happy to bring in sam lowe and -- sam, i'm going to start with you thank you for joining the show. >> good morning. >> since november, we've had damon green leaf, amber -- the list goes on and on. now david davis. is this the nail in the coffin for theresa may? >> people keep writing her off but it's hard to see who she'd be replaced by this is difficult, the timing is not great for her. it does create big questions over the brexit plan and her ability to see it through. it's going to be interesting to see what happens in the coming hours. it's difficult to predict exactly how it lands from eu side, they're waiting for someone concrete to negotiate with while the uk is negotiating with itself, nothing else is
happening. >> whether or not you see, one, a leadership -- needs to be -- what are the chances of another potential general election >> i hope slim i think we've had enough of them really but, but, but, the problem is there maybe it enough votes to trigger an election. so i think that they will be wary about going that route. i think we might see in the coming weeks with all of this confusion, may's laid out a compromised plan that nobody thinks will be accepted anyway. it's been shot down by one who resigned we might see control with a vote on the customs union bill and the trade bill to try and actually bind the government to at least something >> michael, i want to bring you in here. essentially you have a british government in crisis and this is just days away from a nato summit and the arrival of u.s. president donald trump
now, it seems as if though the markets aren't reacting at this point. is that something -- priced it in >> i think that's fair to sigh if you look at everything. the market takes it almost positively i think the problem all along was there wasn't a perfect solution they always called tt irish border recognizing that there are a few ideas which don't go together i think this compromise, which is just a starting point for a negotiation with the european union, just makes that a bit clearer that there have to be compromises to enable free trade across the irish border. so i think to some degree market is saying okay, we knew there were inconsistencies at least we're going ahead and we learned that earlier. that explains the relatively friendly market reaction. >> the market seems to be reacting to the news that this is looking increasingly like a
soft brexit, which is clearly what a lot of businesses have been pushing for that's where the positive boost is coming from my question to you, michael, how do you think markets would react. not only a leadership contest but another general election and the prospects of a potential -- government. >> obviously, if we would really go all the way to an election, i think market would be much more nervous. we would build in substantial risk premium you don't know the government, you don't know the strategy. according to the previous speaker on the phone, this is a low probability event in our view >> sam, i want to bring you back in the conversation, of course, we're talking about the fact that this is a very, very big week fort uk days away from a nato summit, the president coming next week, of course, you're going to have the president meeting with vladimir putin in helsinki in terms of looking at this in terms of a geopolitical narrative, how do you see this playing out?
because the special relationship tweent uk and the u.s. doesn't look ascertain, does it? >> president trump isn't as possible lar in the uk you may have seen a -- that somebody is going to fly an air balloon. that's been allowed in london. i don't think he takes very well to personal insults. he will notice it. there's problems there on the transatlantic side on the eu, uk issue, the uk struggles to come to terms with the consequences of the decision it's made and the tradeoffs inherent within it >> sam, another question also on the potential successor for david davis and there are reports that we could get an announcement any time soon they haven't madeone yet how relevant is that person going to be? ultimately, what everyone is saying is that a lot of these decisions were being taken by ollie rob ins and less david
davis which was one of the factors that caused him to resign in the first place. ultimately, those people who are hoping that we kwo get more hardcore brexit here could be disappointed ultimately, it's mr. robins in the driving seat. >> it will be interesting who is put into that role or even if the department is ultimately rolled up and drawn up into the cabinet office i think when you talk about david davis, he hasn't been negotiating anything this year on the eu side, they say in the entirety of this year so far, he's spent hardly four hours negotiating with them. you also have other ministers from the irish government, referring to mr. -- quite disparaging. in a sense, the person who comes into the role, won't necessarily be doing more negotiating. that's been taken over by the prime minister it will matter domestically. this is where may has a problem.
who she picks, until she sorts that out, it's difficult for her to negotiate with the eu. >> michael, i want to bring you in we've heard a lot about the idea of collective responsibility from the prime minister. a, what does that mean is that co-parenting when you look at this from the broader perspective and you try to strategize ahead. eu is sitting back waiting to see when the brits come to a decision on their own, if and when it's difficult to plan ahead, isn't it how do you strategize from here? >> good point. if you look at the visibility in global markets and especially political risk, i would agree, we are leaving in an especially tough time if you think about trade discussions, if you discuss brexit if you think about italy, for example. but i would actually think that maybe it even hence tlps the uk negotiation. there's a global conflict on
tariffs and i don't think it's especially strong in the bigger world. so i don't think now that you could say may is taking one step towards europe, i don't think she will be pushed back especially hard at the moment. i think to some degree the aggressiveness of trump that will help that europe doesn't reply as harsh to the starting point of the negotiation as maybe we would have seen otherwise. >> interesting perspective, michael. i have to leave it there thank you very much for joining us michael krauts berger at black rock and sam, we leave you as wechlt sam lowe from the center for the center for european reform. some corporate news. bp is leaving the battle to buy the american shale oil and gas assets according to multiple reports. the british oil major submitted an offer in excess of $10 billion. they added that a deal hasn't yet be reached and could take weeks.
bp and bhp haven't commented on the reports. chevron and shell are among the others as well air france has reported a 3.7% annual rise in june's passenger traffic carrying 9.3 million passengers, which has sent shares higher the load factor rose to 89.3% up from 87.7% last year air france is battling the disruption caused by strikes and uncertainty over its management structure. nissan has announced that results from its exhaust emissions deviated from the testing environment. inspection reports were based on altered measurements the nissan news is weighing on shares in its partner renault. from nato summit, it's a big week. >> if you have any views on how these -- or trump's visit,
e-mail us at cnbc.com. hadley and i are on twitter. street signs@cnbc. or hadley gamble >> had to make it difficult. the prime minister of kosovo joins us ahead of a key balkan summit that's all coming up stay with us plaque psoriasis can be relentless. your plaques are always there at the worst times. constantly interrupting you with itching, burning and stinging. being this uncomfortable is unacceptable. i'm ready. tremfya® works differently for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks... stayed clearer through 48 weeks.
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welcome back to the show the u.s. relationship with some of its oldest allies will be under fresh scrutiny as president trump touches down for a nato summit. trump has hit military alliance and not contributing full amount after the summit, the u.s. presidents will come to the uk to meet theresa may before a highly anticipated meeting in helsinki with russia's vladimir
put putin. they're to discuss a range of security issues and other issues. london plays host to the western balkan summit tomorrow they will gather to discuss cooperation on a range of areas, including security and of course, the economy. the meeting is also attended to support balkan nations as they push for eu membership however, the meeting comes at a difficult time for the prime minister as she grapples with the surprise res anythiignation david davis. >> the prime minister of kosovo joins us thank you for joining us. >> yes. this is a big week in the uk the balkan summit, a few days from nato and u.s. president donald trump arriving this week to the uk amidst a government that's essentially in crisis you have found a great partner in theresa may over the years in terms of what happens with the kosovo eu extension and all of the opportunities that would
bring. are you worried this is going to put a spoke in your wheel? >> north atlantic oriented as a nation we had a very direct and trustful relations with london, with uk as we do with u.s. however, we see an advantage of becoming eu member so we are part of a team of nations on our -- as balkans for us as a small nation, this is the advantage we believe our prospect -- [ inaudible >> are you worried at all when we look at what's happening more broadly? a lot of noise out of russia, for example. we've heard the president say in the past things like crimea is a part of russia and kosovo is a part of serbia does that worry europe has
an interest in balkans all of our nations becomes eu, difference of russia or states exactly. there are other influences as well that i believe balkans will need to stay out of them >> we have a nato summit coming up next week hadley, you're going to be there. and there are more than 4,000 peacekeeper troops in kosovo right now. are you concerned when you hear the likes of president trump threatening to take away the presence there and if this is going to impact kosovo given there's a substantial peacekeeping troop in your country. >> nato peacekeeping troops are a story for every nation that
contributed in this mission. they are trusted by population they are seen as sons and daughters. they're seen as our sons and daughters. we want to be -- to contribute today kosovo is ready to offer our small force. we are in time of transition to offer for contributor for peace. if we could add our troops to uk, u.s. or any other nato member troops abroad so we are -- we see this debate of whose country on size on what for nato we would like to be part of it, to contribute for peace. >> prime minister, let's talk about the economy. because you have a lot of major infrastructure projects that are under way in kosovo. six major highways for example movement in terms of the health care sector and interested investing there.
what are you hoping to see from the uk we're talking about brexit, what brexit will look like. a lot of opportunities that maybe weren't necessarily there in the past. what are you looking for in uk >> we come from a difficult time devastating economy in the past. however, we focused infrastructure first we will be in only three years from now finishing all the -- in our country. we'll be connecting with other economies. we believe kosovo will be a good, i would say not only as a smaller economy but a place for investing and reaching other economies or markets so we believe this is our advantage. young population and as well, resources. today already we have some big investments. there is an investment in energy highways, as well activating our minds as it's one of the --
[ inaudible we have interested investors >> one of the issues that kosovo grappled with is immigration about a third of the descent live outside kosovo right now. with the rest of europe very much intent on clamping down on borders whether or not you see that as a positive development for your country snienlt this happens in the past. a generation of people who left the country. many of us, we are back in our country. there is no more refugees or immigrants from kosovo today only a partner there is a partner on exchange, in economy, in trade like this week here, tomorrow in the summit, we are here to -- decorations or agreements and helps europe or helps the world. finally, from kosovo, no more, i would say, displaced people or refugees we are a partner. >> prime minister, adding on to
that, one of the things that's been a focal point for your agenda is visa-free travel for coes vans in the eu. how close are you to cheeachiev that >> we believe this is a process to happen. however, we suffer from images of the past. still today in europe people remind kosovo as a country of the war in -- refugees say -- no more they say last two years, no immigrants from kosovo to any of the european nation, including to uk or elsewhere there is not any more practice of somebody leaving the country and asking to be other status in another nation however, there is a need for exchange, for traveling, business, entrepreneurs, younger people, students, everybody. so europe keeping us isolated
and not granting the visa-free regime for kosovo is losing one of its customers or partners in the economy. >> do you think the fact that there's quite a bit of friction between kosovo and serbia is going to derail your chances of getting into the eu? >> this is still open questions between us and serbia. however, seen from very -- from a very tragic war of -- [ inaudible i think there is a promising time coming. we are very optimistic that what is left to be finalized within kosovo and serbia is on a process to be finalized on a legal binding agreement within both nations, between kosovo and serbia that would mean as well, u.n. membership, then as well nato and eu. >> to move away from the eu at the moment, i cover the middle
east for cnbc and spent a lot of time in saudi arabia saudi arabia has made significant investments in kosovo do you see more investment coming from that region? >> for us, it was very important to be open to all economies, all nations. however, few succeeded more. on what we call euro atlantic or north atlantic nations and economy. we stay open for many others we're more focused europe. >> final question for you sir. if this were to happen, when do you factor in it happening when is the timeline for that to take place >> i think this year it's realistic or expected this year an agreement between kosovo and serbia. >> sir, thank you very much for joining us on street signs hadley and i appreciate you taking the time to chat with us. the prime minister of kosovo
coming up on the show, disappoints as it starts trading in hong kong over concerns of its valuation. stay tuned are you taking the tissue test? yep, and my teeth are yellow. time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life.
welcome to street signs. i'm hadley campbell. >> i'm. [ inaudible here are your headlines. despite unrest in the british government david davis resigning over the compromised brexit plan with a successor to be announced shortly. nissan knocks renault into the red as shares in the japanese automaker slide after revealing emissions tests deviated from the prescribed environment. air france klm shares take off as investors look beyond recent disruptions to see the shares jump from a year ago. the world's biggest technology listing in four years fails to light up investors as
it sinks below the price on trading day in hong kong markets seem to have a spring in their step today it's pretty positive we had all the three majors ending higher on friday. one of the best weeks in a while for the s&p specific live. nasdaq, best day in a month on friday today the picture is positive as well dow opening 120 points higher, nasdaq about 35 points higher as well that's in line with what we're seeing with global markets this morning. european markets no different. you can see that all of the majors here are trading up in the green. a bounce, spring in their step and ftse 100 is up .2% higher when there's a lot of political
uncertainty. if anything, it's getting worse. a lot of questions on the uk political environment here but as far as markets are concerned, ftse seems to be reacting pretty positively and also what's interesting, when you look at foreign exchange, we've got cable bouncing this morning. that typical inverse reaction that you see between pound and ftse is not even holding this morning as well. cable trading about half a percentage point higher and ftse 100 also trading higher. strange things going on with uk markets this morning but we're in a brisk on day. >> shares have opened lower on the debut day of trade in the biggest tech ipo in four years emily tan joining us from hong kong emily, what happened there was a lot of momentum surrounding this ipo, wasn't there? yeah there was. but there was a lot of concerns
about the valuations being too steep. also you got now a u.s. trade war going on and a sell down during the time it was marketing stock. shares closed after the first day of trade down as much as 6% and closing down more than 1% as you can see. $16.80 that is $.20 shy of the ipo -- it did not see any gains in the first day of trade this is the world number 4 smartphone maker it was the most actively traded stock on the hong kong stock exchange with $985 million worth of shares trading hands. it was issued at 17 hong kong dollars. they managed to raise over 3 billion u.s. dollars if you take out the fees and commissions a chance to speak with the co-founder a
co-founder at the hong kong stock exchange asked him what he thought about the company's share price. this is what he had to say. >> i think sometimes that price is mostly dictated by market dimensions what we will be doing is to focus on -- of the business. auto shareholders is able to share the -- of this company be focusing on great business and great products [ inaudible >> it's amongst the most highly anticipated ipos to come to market this year also it's special because it has weighted voting rights this is the first of the dual class shares to be traded in hong kong. it's lynne bin, the president you saw, along with the founder around chairman with the weighted voting rights which make up about 75%. those are the class a shares it is a class b shares that normal people are trading.
the performance is being seen as a test of investor sentiment this as there's a growing list of tech companies waiting to list in the hong kong market >> thank you for that. we're joined onset by argen. what happened here you have the trade war brewing you have a lot of things with respect to kmien is this about the company or the context? >> in that interview, there are -- it's a victim of some of the hype it's brought up itself. they're very -- liken to the apple of china when you look at apple's business, it's different from this apple makes hardware, yes, but it has a lot larger service. apple pay, apple music and the rest
it derives about 8% from service. there is a misunderstanding about the business right now i think it that is to tell that story to the market a bit better and as it develops, try to diversify the revenue streams more >> argen, i was looking into the numbers this morning we spoke friday about where the revenue comes from 70% still comes from smartphones you said on a valuation perspective, it's being valued at 1.5 times apple. to me, that's surprising because apple has high gross margins, about 60% the other only about 8, 9% gross margin as they move away from a competitive environment or increasing the margin somehow, it's going to be difficult to adjust the valuations. >> that's correct. hardware margins are very low. the ceo said it doesn't want to make a net profit margin of over 5% ever. that's interesting because --
but that's on hardware if you look at the software side of the business, which admittedly is very -- that's quite important. the valuation you're seeing now, a product of what is happening with chinese companies their valuations with ginormous. they're massive. secondly, this is a startup. still, very much a startup only founded eight years ago the valuation, i think, is hoping and looking forward to a company that could potentially diversify the revenues. >> again, the question is, is it a hardware company or software company? many examples of other companies, like go pro, fit bit who ipo'd a couple of years ago and one way down. >> that's because they were very much hardware companies. if you speak to them, we are an internet company that means we have both the hardware and we have the software as i mentioned, the software is a tiny part of that revenue stream the only way the company will be
able to justify its valuation is by being able to broaden out and build up the software sector of the business. >> thank you for the latest. let's see how this performs the next couple of days. brazil's appeals court overturned a judge's decision too release former president from prison. this comes months before the country's presidential elections. according to polls, da silva could win a third team brazilian law prevents them from holding office within eight years. he's serving a 12-year prison sentence for corruption. a high risk operation under way to extract the remaining eight boys and their football coach from a cave in thailand. at least four young players have been brought to safety and nbc aes bill neely has more. >> for one small boy, the end of a nightmare. it's a moment many feared would never come
they had battled through this, swirling water, narrow passageways, a route that already proved a death trap. commanders chose the strongest boys first they told divers they were ready. this is d-day said the commander. we have to act now the rescue began at 10:00 local time this morning. ten divers reaching the cave and attaching two boys, each one to two divers less than eight hours after it started, the boys emerged. two hours later, a second pair four were free one diver told nbc news, the boys were totally calm but it was a rescue made urgent by falling oxygen levels in the caves and falling rain outside the rescue, he said, was a masterpiece of planning. eight boys and their coach remain trapped their lives still hanging in the balance.
this isn't over. but the boys' long journey home has begun. >> the rescue operation has started well but it's not dawn on day two and the divers are getting ready to do it all again. one diver told nbc news the greatest danger is complacency nine lives are still to be saved. bill neely, nbc news northern thailand. >> really is remarkable that story, hadley. what a miracle. >> nine more to go >> nine to go. we'll be watching that closely we've also gone through a lot already on the show. if you have any views on politics, on kosovo, our interview with the prime minister and hadley in nato coming to london as well. >> it's going to be a big week the magic is happening. >> the magic is happening. you bring the magic, hadley. the address is street signs europe at cnbc.com and as ever, we're on twitter
tweet us. china opens the possibility of increased trade with eastern europe as markets adjust to the reality of the u.s./chinese trade conflict your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.
the french government warned the united states can expect a strong response to tariff increases. speaking at an economic conference, the french finance minister said a trade war was already under way. president trump's trade strategy will only hurt the country in the long run says chairman lorenzo maggie. speaking exclusively to cnbc, he said getting -- starts with talking rather than taking things away. charlotte, of course, you did speak over the weekend making good points there, specifically on the trade side ultima ultimately, he thinks this will backfire with the u.s.
>> that's right. the index that was the word on everybody's lips all about protectionism and trade war. so yes, i -- the chairman or former ecb board member. i asked him about now that trade war seems to have moved from a war of words to real actions, how he felt that europe should have supported president trump on trying to make trade fairer with china take a listen. >> if you want to get to a system which is fairer and freer, you don't start by raising barriers you start by talking i think the -- have a way of putting it when you want something or when your counterpart wants something, you ask wa they want and you kind of find a balance of what you also want in exchange you don't start by taking away
things i think this strategy in the end will hurt everything starting from the u.s >> so yes on the principal but not on the method? >> yes i think the method is wrong. it's clear that the chinese have to -- they have been integrated as an emerging economy or i would say under developed economy. now they're the largest economy in the world nearly and largest exporter so we need to adapt the rules of the game i think they're ready for that we just need to push them. more efficient to push them together with the u.s. than just separately >> if we look at the eu and the context of trade war, also a report of tariffs on $300 billion of u.s. goods if in retaliation of further measures that would be -- how concerned are you by that tit for at that
time escalation and the impact on the economies just after to recover? >> i hope this is just a -- do not happen we have to get to a point where we see the two economies sit at the table and really try to look how to reverse i don't think the approach of the u.s. is the correct one to just look at imbalances. because i mean, the world is not -- everybody has a zero balance. you have to look at the underlying savings investment equilibrium of the barriers. clearly, the u.s. has a deficit problem. i don't think that the best way to reduce it is to threaten the others but this has to be solved,
trying to look at the concerns of the u.s. and see what we can obtain not just -- we are concerned we should be concerned as europeans that we are not taking the right track to address the issh at a global level. >> does it -- >> certainly, trade has been a main driver of growth over the last few years it has slowed down over the last couple of years. if it continues to slow down, i think this will be a problem for everybody. soit would be a problem for europe and a problem for the u.s. >> if we look at the impact on -- for the ecb in this context of trade war, the last forecast published said it did not factor in potential trade measures they haven't been implemented just yet in that context with the forward guidance from the ecb, do you think that we'll -- if there is a -- we see impact on the
economy, will it stop qe at the end of this year and will they be able to raise rates next summer or is that going to delay that process >> on qe, i think it's the -- through it it will be a loss of -- to get back on interest rates, i don't think they have said they will raise rates after the summer i think they will keep rates low until next summer. doesn't mean that they will not keep them beyond we discuss it in light of the developments so what i could expect is that really tend to slow down the economy and the recovery in europe, we will have longer rates for longer a lower rates for longer, i think. so the first hike could be delayed down the road. >> that was lorenzo, former
board member of the ecb saying that trade war on the economy, impact -- would impact the calendar for rate hikes with the ecb. >> it's interesting. when you talk to all of these big businesses and more and more of them are coming out and speaking about the possible tit for at that time that's going on he also admitted to you, charlotte, i picked up on it, ultimately some of the roles do need to be redefined china is still classified as a developing economy perhaps they don't necessarily agree with the method with how this is being dealt with but everyone agrees perhaps there needs to be a push for a fairer system in the world. >> we might have a big fat baby trump hanging over london. but we're going to talk about what happens next with china and european trade in a way, it's a disrupter isn't this potentially positive in the long-term >> today's meeting angela merkel in germany
some say there's an argument for china and europe getting closer now that they have a more hostile washington in the trade talks. maybe there's an argument for europe and china to get closer >> one of the ramifications for sure speaking of china, moving right along. beijing remains open for trade with europe. the chinese premiere telling eastern and central european leaders that china will continue to open up its market and strengthen times with the continent. we're in beijing eunice, what can you tell us >> well, hadley, i think you guys hit the nail on the held. i think china is on a charm offensive with the europeans because they're in the middle of a trade war with the united states he's meeting with the chancellor, angela merkel and this comes after a weekend in bulgaria where he was talking with several eastern european leaders. his main message has been that he wants people to know that
china is open for business when it comes to foreign investors. now, his visit comes at an important time because it's just ahead of an important event that's happening here in beijing next week. the eu china summit. it's going to be led in terms of the eu delegation by the president as well as as jean claude younger they'll be here. chung will be hosting this event as well. now, the main agenda items have typically been the two sides hairing grievances which -- airing grievances which have been market access and the like. this time around, they're expected to make some progress the past two summits did not produce a common statement because they fell apart on a lot of these similar issues. however, this time there's hope that there's going to be progress made on an investment treaty and that's because the
dynamic between europe and china changed whereby the chinese have been wooing more european support especially when it comes to presenting themselves as a united front against the united states and president trump we'll see whether or not that's going to actually change at the summit but definitely there is a change in sentiment right now between the two. >> eunice, you know what i find interesting, chinese markets have rebounded so much on friday once the tariffs went into place and now equities trading up. j is this the case do they think the worst is over. despite some of the comments from both sides or perhaps investors are optimistic that these conversations with eu could yield some results what are you pointing it to? >> i think there's just been so much volatility in the stock markets. but there was probably some relief in the market that things
didn't get much worse. i don't think that we're out of the woods just yet just because the trade war is just beginning. but i wanted to go back to some of the other comments, though, that i've been hearing about this eu, china relationship just from some senior european diplomats here they have also been a little more wary and skeptical about the efforts by the chinese to woo the europeans. i was speaking to one senior diplomat who is based in beijing. he said that it's true that the chinese have been approaching them to try to present themselves as a united front when it comes to u.s. protectionism. however, he said they don't really know whether or not this is rhetoric on the part of the chinese or whether or not the chinese are really sincere in their efforts to open up to europe a lot of wait and see at this point. >> definitely seems to be the trillion dollar question thank you.
well, hadley, i know this is our favorite segment the world cup heads into its last week as the final four teams battle it out. france take on belgium tomorrow night and england lock horns with croatia on wednesday. the three lions played their first semifinal against a croatian side which edged out russia. >> elliottmanagement poised to take control over ac milan after the owner failed to meet a deadline for debt repayment. two u.s.-based sports investors are reportedly preparing bids to buy it and the owner of the chicago cubs baseball team. the chinese businessman acquired the ac milan last year from former owner silvio
berlusconi >> this is a big week for the uk president trump is visiting. the ftse is concerned, wednesday is the day, we've got the england game to watch. the reason sterling is bouncing today is because, of course, england did win in the all important quarterfinal >> sterling is remarkably trading up about .4% let's look at ftse as well it also seems to be trading with a spring in its step up already this despite the brexit negotiator resigning and we don't know who his successor is going to be. but let's take one quick look at u.s. futures things are going to be positive it looks like. dow opening 100 points higher. >> incred blg believe. big big week that's it for us hawaii is the first state in the u.s.
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china launched tariffs after the u.s. moves >> tariffs in the world. higher or lower? >> i think they'll end up higher. >> they see diesel to practices ultimate payback for a whole series of things wit u.s. and the west have done to the chinese. i'm courtney reagan, it's 5:00 a.m here's your five at 5:00 breaking news, brexit secretary david davis is out we're live in london with the latest chinese tech giant ten cent claiming to spin off music streaming business the company wants to list in the u.s. rescue operations back under way in thailand as they try to reach people inside a flooded cave the countdown is on. less than 16 hours, president trump is expecte