tv Street Signs CNBC September 20, 2021 4:00am-5:00am EDT
i'm excited that we worked this out. who doesn't like money? i'm getting extra $5,000, so, hey, that was great. for ada pozo and katie phang, i'm mr. wonderful saying good night. good morning, and welcome to street signs these your headlines the stoxx 600 hits a low while the u.s. slumps with the dow down 400 points. >> the uk business and energy secretary holds crisis talks with suppliers but the uk's top 26 president plays down
concerns. >> people should be confident that the supplies will be there and we will be protecting them in terms of price rises but we're not complaisant. >> european rising stocks amid worries over construction materials from china as a developer deeply plunges this week. and the jump despite losses after the german carrier announces a 2.1 billion your euro increase to pay back part of the covid bailout good morning, everybody. welcome to street signs. what a start it is to the week as far as trading is concerned a lot of red on the board behind me after a week handover from asian stock markets. many are closed, including japan
and china but the focus is on the hong kong stock exchange down almost 3% points after fears from developers are growing. this is having knock on effects as far as contagion is concerned not just in the region but for broader macro, too that is one focus. but in europe, one of the other major themes we'll betackling is what the impact of rising gas prices means for consumers for inflation, for policy makers this is a big theme playing into the market right now so we are starting the week off in deep negative territory the stoxx 600 down today, sharp decline on the week, down 3 percentage pointsled by the 8 percentage point decline this morning. let's break it down for you. you can see, as i mentioned
everyone is trading deeply in red. the ftse we're clearly through the 7000 mark, it's been a good support level. it's now at a two month low, down 1.5 percentage points, we have basic stocks at the bottom. we have banks under performing, also areprudential prudential ug too. look at france, down 2.4 percentage points, again a lot of cyclical names coming under pressure, luxury suffering this morning, quite a lot of losses as well as steel maker mattel all basic resources coming germany, down 2 percentage points, all eyes on the federal elections this sunday. spd squarely in the lead but still a lot of questions about the permutations of the next
government we'll be talking about that in the coming days. as for sectors, every sector is trading in red z you can see i touched in cyclicals travel and leisure down 2.7 percentage points. banks down 3 percentage points and basic resources down 4 percentage points, heavy day of decline. health care and food and bev are the relative outperformers but still down .5 or 1 percentage points as well what does this mean for the recession? not well, the s&p is scheduled to open 50 points lower, dow about 400 points lower as well, a loss of about 1 percentage points so when were you looking at another day of losses for wall street in the next coming hours. one of the major themes that i
mentioned, gas prices are soaring with the uk amongst the hardest hit. prices for gas are up 250% consistency january with a 70% rise since august that is before a demand spike in the colder winter months. prime minister johnson said the problem is temporary saying high demand in asia had hit uk supplies his comments come as the biggest energy groups seek government sp support. they'll meet energy suppliers today, the spiking prices are hitting the food sector after two fertilizer plants were forced to close, shutting britain's co2 production it's not just the gas sector hit, it's having broad ramifications with these fertilizer sectors getting hit, which is going to hit other
industries as well, not least the live stockindustries this is the picture for the gas majors this morning. you can see on the year many of these are trading higher, but, in general, we are seeing some of these gas majors, depending on where they're domiciled obviously get hit, you can see it's up 55 percentage points bp and royal dutch set up pretty much as well speaking to sky news, the uk junior foreign secretary said the government would do all it can to protect consumers amid the steep rise in energy prices. >> because of the mix where we get our energy we're in a better place. other countries are also feeling the pinch. and we will do everything we can to protect consumers to make sure we have a vibrant energy supply market.
>> top 26 president down played the concerns to sky news. >> the clear message coming out of this is there is no immediate concern in terms of supply we don't see any risks going into the winter. and when it comes to prices we, of course, have an emergency price cap there are mechanisms available to support people as well so people should be confident that the supplies will be there and we will be protecting them in terms of price rices rises t we're not complaisant, why we're having the discussions. >> a huge focus for europe and global markets let's get to dan murphy, who's looking into the drivers of what's happening in natural gas space. dan, tell us more about the catalyst for this move and exactly where relief is going to come from. >> well, where relief comes from remains to be seen
we heard the government ministers working to ease concerns about the skyrocketing price of natural gas which could have wider fears for the united kingdom, europe and inflation in particular remember, natural gas is one of the most important sources of power generation for the uk and for europe and prices have tripled this year of course, it's bad news for the united kingdom but also for countries like italy, spain and germany that rely heavily on natural gas for power generation so as you pointed out, what we're seeing is the uk business and energy secretary meeting with energy suppliers to hold the crisis talks he held talks with regulators on sunday as well and now some of the region's largest energy suppliers are requesting a multibillion pound emergency support package from the government in order to stop collapse as i mentioned there are worries about how this could impact
inflation as well. there's a thread that runs through the story here high prices for everything, heating to fertilizer, put the economic recovery at risk. i've been having conversations with 234analysts in this part of the world that say the risk is real listen in. >> this is key, we are government bond investors so the outlook for inflation on monetary policy is something we're tracking very, very closely. higher gas prices will certainly impact on headline inflation in the euro zone and in the uk. but policy makers, we believe, are unlikely to react to what should be a temporary increase in headline inflation. >> so the verdict is still out on how this could potentially translate into the infla
inflati inflatiinflationa, narratives the supply and demand dynamic, europe stock pile has been low, we've seen demand rising as economies recover and come out of covid-19 and at the same time, alternatives like renewables have struggled coming into the peak winter demand season also a chance politics are at play here, europe is largely dependent on gas supplies from russia which have a way over european pricing there is one thought here that perhaps by bringing about higher prices russia may get approval for the in pipeline what we're looking for is what type of support is going to be provided from the industry we'll get more details on that when the minister finishes some of the meetings under way today.
back over to you turning our attention to german politics. the democratic leader emerged as a clear winner of the latest televised debate a week before voters go to the polls the current finance minister faced off with the main rivals over tax policy and the minimum wage olaf schultz rehit rated his promise of 12 euros per hour >> translator: i stand for a minimum wage of 12 euros which will be introduced immediately i stand for us getting a stable pension and taking all the decisions necessary in the first year of the new government to ensure that we transform the renewable energies so we have a modern industry with good jobs
that operate in a climate neutral way. >> but his rival accused him of making promises he would not be able to keep >> translator: we have agreed you two have proposed to start at 8.5 euros and every year the unions and employers are asked to make a proposal now you say 12, and say i'll ask the unions again, which doesn't add up. >> current polls put the democrats in the lead by 26% germans will choose their next chancellor this sunday happy to bring in the assistant professor for international politics from the university of reagansburg. good morning to you. let's start talking about the -- what happens after sunday's federal election because it is going to take several weeks, possibly even months for a functioning coalition to exist and it's also very likely that the greens party will be part of
that coalition my question to you is actually about the fdp, the liberals. it seems as though they are also going to play a major rolein determining who is going to be leading the next government. what would you say is their incentive to work with spd at this point >> well, first of all, the interesting story about this election is how unpredictable it has been over recent weeks to determine who will lead the country after the election and the fdp really wants to be in the coalition government. but they have really various bridges or gaps to bridge with the social democrats they are far apart in terms of tax policy, social policy, et cetera and we have really a couple of coalitions options on the table, probably beginning next sunday so there will be tough negotiations amongst various partners, parties, which will
drag on for a while, and it will take, as you mentioned, quite some time to have a new functioning government in place. >> one other alternatives that markets are watching because it would be a complete break of what we've known in germany over the last 20 years would be a green, red, red coalitions the greens with spd but then the far left party what's the probability of that occurring in your view do you see there being an incentive on the spd's part to go down that direction >> that's a tough question the social democrats are -- have moved quite to the left, especially in the party leadership while olaf schultz, the candidate for the chancellorship, he is a conservative person from the social democrats so there have been ideas floating around the democrats could pursue a coalition with the greens on the left, it would be a precedent case because so far parties had declined to
consider going with the left at the federal level because of their views in foreign policy mostly the left wants to get out of nato, for example, a view not shared by any of the other parties in the german system so there are gaps to bridge, once again, spd, social democrats some of them favor this line because their commonalities in social policy but others are very concerned and the country as a whole would not cherish this option, i believe. >> i want to ask about olaf schultz and the potential impact of the questioning from german lawmakers. today german lawmakers are going to be asking the finance minister about the investigation into anti-money laundering obviously it hasn't a big impact on his popularity thus far could it have an impact between
now and the 26th >> it depends on how it plays out over the course of this week the issue at stake charges that suspected money laundering cases were not pursued as it should have been. it's a complicated story that cou doesn't boil down to a one liner easily it's saying that he's not as reliable, credible as he presents himself to be this comes into play when the probability or the likelihood of a red, green, red government comes into play. figures from the christian democrats say he may be a nice person but he may be not in charge when it comes to such a government because he's not been able to keep control of his finance ministry >> we'll have to, i suppose, wait to see how the debates play out, as you say. you also made an interesting
point in your latest research about the notable absence of the eu and international affairs from this entire election campaign, which is extraordinary given how important germany is to the eu and how important the eu is to germany what do you make of the fact that's been largely absent from the federal election >> this is an astounding incident, really voters name social security, social justice, climate, policy as their top priorities. and indeed foreign security policy has not fared prominently in the election campaign it's been absent from the debates in recent weeks. it shows that germans are very focused and part of the explanation probably is that the country has been doing well and that at large.
think of the changing transatlantic relationship, think of russia, china, the confrontation between the united states and china, the european union has a lot of things on its plate but german politics has not made quite an argument about how to pursue these challenges, what to do about them. this is something that certainly has to change after the federal elections. >> all right we'll leave it there big week in germany. coming up on the show, the uk will issue its first everever gilt this week as it prepares to host the climate change conference in glasgow.
and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. as someone who resembles someone else... i appreciate that liberty mutual knows everyone's unique. that's why they customize your car insurance, so you only pay for what you need. [ nautical horn blows ]
i mean just because you look like someone else doesn't mean you eat off the floor, or yell at the vacuum, or need flea medication. oh, yeah. that's the spot. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ welcome back to the program. the uk is set to issue the first green government bond this week as part of a wider sustainable
finance agenda as they prepare to host the climate conference in glasgow they're set to issue 15 billion pounds of green gilt this year the uk is a late comer to the party with other european countries including germany, italy, france and spain having already issued green bonds in the past saida great to have you with us. the uk is a little bit of a late comer compared to neighboring countries. how does the united kingdom's green bond framework compare with those we've seen out of france, italy, germany >> thank you i think being a late comer you learn from the other frameworks and the many questions investors have in mind so when we look at the framework, there are quite a few positives. it's a wide range of
environmental objectives starting from low energy buses or zero emission buses, renewable energy, off-shore wind but also sustainable agriculture. so all in all, we do like those framework and also user and the administration is pretty clear what is good is that the look back period is only one year, which means projects one year old could be included in the green bond framework and forward looking the next two years so all in all, it's pretty good. and also the impact that the uk is promising at this point i think that's very detailed but the most important thing which we actually engaged with with other group of investors is the social benefits of the green bond framework if you notice, every objective has some impact that will be
required on traditional carbon, for example. but it's also about jobs being created or housing having some benefits it goes to traditional uk issues like heating which need to be more energy efficient. so hopefully it's very long awaited green bond, it's very late but it will target sdg and impact investors as well >> really interesting to hear how it attempts to touch on all three letters of esg there but i have been reading that some investors have argued the uk framework is not green enough compared to others out there there what would you say to that crit criticism? >> i think for pure green investors there are controversial areas like in one area uk has left a nuclear
energy and some investors think nuclear is greener than other energy, but i think it's good they left out uk nuclear because they have good intention to do no significant harm. on the other hand, a lot of investors are not comfortable with blue energy, so gas being used to generate hydrogen. and on the other hand using carbon capture to take the carbon out of the process. and there's going directly into green energy with hydrogen and using renewable energy like wind but i think the technology is not there. and going forward, the eu needs to invest more in r&d so it can also meet the expectations of the very green investors all in all, though i think there's a new set of investors which are called sustainable investors and as you know, there are new kinds of
bonds, so i can't imagine that sustainable investors would like a bond maybe a bit more than pure green bond investors. >> to your point about investor appetite to own the green bonds and green gilts. what's interesting where they trade is they are tighter than their normal sovereign peers and what people referred to was a green premium with regards to some of these bonds. how do you expect pricing to evolve from here and with more anticipated supply to come to the market, do you expect to see some of the premium get wound out of the market? >> yes i do think that will, but at this point, the demand for green and sustainable bonds in general is much higher than the supply and that's the fact. and some of it might go away as we also see eu issuing green
bonds and huge volume of green bonds might help but experience so far is that the demand is very high. but the demand is just not about buying green bonds the objective is also the regulations forcing investors to show more transparency so if we also see as a result of the green gilt, also with good rating, so there is a structural demand there as well, are issuing green bonds and there's going on with government bonds, corporate bonds, then i guess the valuation would normalize a little bit but i don't think it in the short term. >> green washing is another theme that comes up a lot. and one of the german asset managers is under fire for alleged green washing. i'm sure this is a topic widely discussed in your space. but it seems to me if you were
an investor, investing in a sovereign green bond, there's less of a risk of green washing there because the government has to be transparent about what they're planning on doing with proceeds is that a right interpretation >> i mean, i don't want to make a generalized statement here but i think we have come to the time where you need lot of collaboration among the different government departments. in the case of uk we see it's, you know, whether it's environmental ministry, whether it's transportation, and also the treasury and the finance ministry has no special people specialized in green financing in general and investor communication. so what is very important for avoiding green washing is also, as in the uk green framework, to say where the green bond proceeds will not be invested. a clear kind of exclusion policy
and very, you know, regular and thorough impact reporting and user reporting, so i think the government has high governance in this case and to really take away the critic for green washing, they have interacted a lot with green bond investor, social bond investors. so this is certainly lot less risky than say a new green bond where you do not have any idea of the sustainability characteristic of the company as a whole. >> saida, interesting conversation thank you for joining us today in a big week for the uk's green bond program we're going to take a quick break but coming up an interesting interview. astrazeneca's new drug shows a response in treating breast cancer patients.
we'll speakto david frederickson after the break do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you
have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance.
welcome back to "street signs," everybody. these are your headlines the stoxx 600 hits the lowest level since july with german and french markets trading more than 2% in the red. u.s. futures slump with the dow called lower by almost 500 points. >> european gas prices soar, they hold crisis talks with suppliers but the uk's top 26 president plays down concerns. >> people should be confident that the supplies will be there and that we will be protecting them in terms of price rises but, of course, we're not complaisant about this european mining stocks follow the asian peers lower
over worries of construction materials from china >> and astrazeneca shares jump as the drug maker's new breast cancer treatment demonstrates a 72% efficacy rate in reducing disease progression. we'll discuss the findings with david frederickson in just a few moments. ♪ good morning, everybody, and welcome back to "street signs. what a start to the week it is for european markets with all trading deeply in negative territory, ftse 100 down 4 percentage points, we have minors basic resources name trading at the bottom from the
potential ramifications of a restructuring of ever grand in china. germany, down more than 2 percentage points, so 2.1 percentage points lower on the day. and the focus is on the german federal elections coming up on the 26th france down 2.1 percentage points here. we're seeing the cyclical names, banks, luxury stocks come under selling pressure and the geopolitical tensions that have arisen between france and the caucus, so that's another story circulating over the weekend but the big story from a market per speckive is twofold. let's look at what's going on in basic resources space. these are some of the key miners, most of them domiciled in the uk but deep declines today, anglo american down, bhp
down the australian mining index also in negative territory overnight. this on the back of potential reverberations from china and the property sector there and what is going on with ever grande so basic resources coming under heavy pressure we're looking at what's happening with natural gas and what that means for consumer prices going forward as well as policy makers, decisions and potential ways of dealing with the issues today, natural gas is trading weaker, to the tune of 1.7%. look at the chart, year-to-date natural gas prices have doubled, and all of that has happened can be the bulk of it has happened in the last couple of months i think we've been watching very
closely and one the uk papers have picked up on over the weekend. with other sectors like the fertilizer industry getting knocked in the uk too. we have heard from the business and energy secretary of the uk who told people they should not be concerned, even though there is, overall, a low level of inventory, a big theme here in europe this is the picture for some of the european gas majors today. taking their cue from the price of natural gas and because natural gas is trading on the back foot we are seeing a decline in the gas majors in russia, down 1 percentage points they have been criticized by some european counter parts for not providing more gas but some of the british energy companies, bp trading down .9 percentage points, shell down about 2 percentage points. this is today's snapshot for the year the stocks are up
substantially. the picture for wall street. u.s. futures a negative session is looking like it's going to ensue the dow seen opening up about 470 points lower s&p about 50 points lower. remember we had a weak session on friday. let's not forget it's a major week for the u.s. this week we have the f1c coming up on wednesday, that's a big catalyst for where markets go from here julian na. >> let's turn to key corporates in focus they plan to issue new shares lufthansa said the carrier will issue almost 600 million new shares from september 22nd to october 5th. prudential plans to raise almost $3 billion in a share sale on the hong kong stock exchange they'll offer 300 million new
shares with trading expected to begin in early october turning to pharma, astrazeneca's medicine showed a 72% efficacy rate in reducing the risk of breast cancer progression compared to existing drugs. they said the antibody drug is effective at reducing tumor size and could be significant for future treatments. and very pleased to say to discuss these very exciting trial results in more detail, david frederickson joins us now from astrazeneca thank you for being with us. so pretty big news that came out overnight. demonstrating a 72% reduction in the risk of disease progression or death this is when it comes to breast cancer in terms we can all understand, according to this new data, what can this breast cancer treatment do >> it's wonderful to be here
today. our goal at astrazeneca on kolg is to eliminate cancer as a cause of death in terms of -- in patient terms what this drug really means if we look at the data and the study we presented the results from this weekend, we see that four out of five women respond to therapy, compared to one out of three women who responded in the control arm. and also, equally, if not more importantly, three out of four women were progression free at one year compared to one out of three being progression free with what was recently the best standard of care that means more women with adnced her 2 positive breast car, and remember once it's advanced, there's no cure. more women have a chance to get
on therapy, stay on therapy and respond to they rapy that changes the options we have, bringing a new standard of care, but equally and importantly it opens up the possibility and what we hear from investigators and advisers is the chance to bring it into earlier lines and we think for some women we're able to think about potentially offering cure. >> that is pretty huge news. when we talk about the magnitude of this impact, the number of women that could be helped by this new treatment, you talk about it becoming potentially the standard of care what is the magnitude of this addressable market >> if we just put into context, breast cancer every year across the globe there's about 2 million women diagnosed with breast cancer and unfortunately 685,000 deaths across the globe.
enhertu positive affects one fifth of all women, about 20%. so this particular medicine is for women who have enhertu positive disease but also there's lots of great therapies that have been discovered and developed over the course of the last decade for enhertu but as i mentioned before, once the disease becomes advanced, there isn't cure so there's a high unmet need so it's a rather substantial number of women this could benefit if we're able to continue not only to deliver the results we've seen but also as i mentioned move it into earl year lines of therapy and the moving earlier is the aim, the focus we do, we know we can do the best to have the best outcomes for women when we're able to treat early and diagnose early. >> one thing i want to ask you,
i know you have an existing drug which has been used to battle early stage breast cancer. can you explain to us for those who are not super familiar the difference between the new drug and the existing one and whether or not you see them as complimentary to each other? >> absolutely. one of the things that's important about what we've learned about cancer over all the years we've been studying it is that cancer is very hetero genius what that means is what causes breast cancer in one particular woman is going to be very different from what's causing it in another woman so limparza is for breast cancer in women with the g braka mutation whereas enhertu is for women with metastatic breast cancer. it's important as we talk about the need for precision medicine and new approaches that we're
continuing to look for different types of ways of treating cancer in its many forms so these represent two really important medicines for physicians to have in their portfolio of medicines they can use to treat all the different types of breast cancer that can present itself within the clinic >> very clear. thank you for the explanation on that one other question with regard to the pandemic. you hear a lot about how the pandemic has interfered with traditional medicine what has it done to overall cancer diagnoses and overall people seeing the -- the health system as a whole seeing the reluctance on the part of patients to show up for treatment and diagnose how has the pandemic affected the oncology business? >> unfortunately one of the implications of the pandemic has been with hospitals being
overrun and shutdowns taking place that routine screenings and routine diagnoses for cancer have not been taking place to the same degree they were prior to covid in europe it's estimated nearly a million cases have been missed and that 100 million cancer screenings have been missed. we've been working very dill gently with partners public and private across the globe to raise awareness of the importance of routine visits to physicians because we need to make sure that every effort is being taken to catch cancer early. when we catch it early, we have the opportunity to bring treatments and do something about it, the pandemic has strained that. but i am optimistic we're beginning to return back to the some of the levels we saw pre-covid but we have to keep our vigilance and make sure we stay on top of this. >> david, one of the bright spots if you will of the pandemic is it has offered a proof of concept for mrna
technology with the first ever vaccines using mran technology aproved for use, many are optimistic around the potential use in the fight against cancer. what do you think about the potential for mrna technology to be used to combat cancer and where does astrazeneca stand on it specifically? >> in order to treat cancer in its many forms we need to have lots of new medicines across multiple scientific platforms in order to bring the therapies necessary to patients that are suffering from disease mrna represents one very exciting platform, certainly for the future there are a number of other areas that we are really focused and spending a lot of our time and energyon the anti-body drug con ju cats we're working with our partners on bringing this there have been advancements in the ability to use immuno
therapies as well as other targeted therapies we know and believe having progress across all of these other different platforms in addition to mrna is going to be essential to bringing the therapies patients need across the globe. >> it's been delightful having you on our show today. thank you for coming on and sharing the positive results out of the latest trials we appreciate it david frederickson, at astrazeneca. coming up on the show, ever grande shares continue to sink as it enters a crucial week of deadlines for its at-risk interest payments. plus, france continues retal retaliation, canceling a defense meeting with the uk.
got a couple of bogeys on your six, limu. they need customized car insurance from liberty mutual so they only pay for what they need. what do you say we see what this bird can do? woooooooooooooo... we are not getting you a helicopter. looks like we're walking, kid. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ signs. another major story we've been following, china's most indebted property developer evergrande is battling for survival as a
deadline for interest maims approaches the company has over $300 billion in liabilities and is scrambling to get enough money to pay an $84 million cue upon due thursday. they're asking lenders to extend the schedule but a direct government bailout is considered unlikely shares have fallen today bringing the plunge this year to over 85% this graph illustrates it quite well, today in trading the shares are down more than 10 percentage points. let's look at the contagion it's having on other property stocks. this is the picture for some of the major ones listed in hong kong all of them down substantially, you can see declines of anything from 5 to 10 percentage points as far as the property developers are concerned many analysts on it there putting out reports suggesting this decline in property markets could have broader ramifications
and an impact on gdp as well this is one of the reasons the rest of the world is watching what's happening closely there because it might have a financial effect on conditions chinese banks these are listed in hong kong, china is closed today, but the reaction is negative as well you have to think that many of these chinese banks do have exposure to these property companies. so on a day of steep, steep declines no surprise that the chinese financial sector is down anything from 2 to 4 percentage points as well julianna >> turning to geo politics a meeting between france and the uk ministers in london this week has been called out over the aukus submarine deal
there was a deal breaking with previous contract signed with france let's get to charlotte if you thought that president macron was going to back down over the weekend, you are mistaken seems as if he hasn't cooled off yet. >> that's right. remember president macron is in the cycle. this kind of public humiliation, how france sees this, the announcement of the pact and the cancellation of the french contract, is a humiliation, so they have recalled for the first time ever their ambassador to the u.s. and australia and their talk about duplicity when this talk was sealed. listen to what the minister said this weekend. >> translator: this is very symbolic there was a lie, there was duplicity. there was a major breech of trust and disdain. things are not going well behind us, not at all it means there's a crisis. there is a symbolic aspect we recalled our ambassadors to
try to understand and show these former partner countries our deep miscontent but we'll have the occasion to evaluate our position to look t a our interest in australia and the united states. >> this is really about the method on how the deal came through. france said they had discussions with the u.s. and australian authorities in the past few weeks, including a visit of the u.s. secretary of state in paris recently with the french defense minister just a couple of weeks ago and were ensured the deal was going through and the strategy in the indoe pacific were in discussion and then they say there's been a betrayal we know that president biden has asked for a call with president macron this week we don't know when exactly there is a general assembly, president macron is not attending it this year
but they'll meet and discuss in new york the topic we heard from the australian trade minister saying he will seek a meeting with his french counterpart in paris in october. so interesting to see how this plays into the european scene as well we heard from the fed minister for france saying it's unthinkable that the eu and australia will carry on negotiating a free trade deal between the two blocks so trying to get the european counter parts to back them we haven't heard from any yet but france certainly with the shock movement to recall the ambassador to get the talks going. we know this week will be crucial in the negotiations. >> thank you for giving us the latest it doesn't seem like an issue that's going to go away any time soon we see what the phone call between biden and macron deals on the topic a quick look at u.s. futures
and just general markets as we head out because we are starting the week off in a very risk off tone you can see the three majors in the u.s. are seen opening up in negative territory the dow seen almost 500 points lower after a negative handover from asian and european markets and the negative close on friday the big focus for u.s. markets this week is going to be f1c on wednesday. this may be the week they announce a tampaer, per. who knows we'll find out in the coming week. that's it for our show "worldwide exchange" is coming up next.
it is 5:00 a.m. on wall street and here's your top five at five stocks set to fall big time, dow futures down nearly 500. this after markets have just done something for the first time in nearly a year. adding to global concerns a potential lehman brothers moment for a part of chinese economy as one of the biggest property developers teeters on bankruptcy while asia falls one red hot commodity is soaring and hitting consumers right where it hurts in the