welcome to worldwide exchange. i'm carolyn roth. >> hi, i'm seema mody. here's your headlines from around the world. >> the fomc maintains we're still approaching higher rates. they get caught in the headlights with wiping out three days of gains. >> oil slides to a six year low after a surprising increase in stock piles. energy shares leading the decline as the bears at city forecast another $10 drop in oil. >> more losses in beijing as the yuan takes another leg lower.

this after china is not ready for reserve status just yet. meanwhile, it floats it's currency sending it lower. >> supermarket sweep. profits rise amid stronger online sales. a merger looks more likely. >> all right, good morning everyone. it is coming. minutes from last month's fed meeting show, most officials believe they're approaching the first rate hike in nearly a decade. steve breaks down the market reaction to the news. >> a controversial and even confusing set of minutes from the july fed meeting in which the markets clearly saw them as dovish recommending the best chance of a first rate hike in september but a lot of them seeing them as neutral and period even slightly hawkish.

peter said fomc minutes, get me an advil. he thought they leaned dovish. what they said is the conditions haven't been achieved yet but hold on because the conditions for a hike were approaching they said. some said the conditions either had been met or would be met shortly. now it also said a prompt start to normalization is raising rates and getting up to a more normal level was seen conveying confidence in the market. there's a whole other side to this where a minority said it's not heading toward a target and the fed actually advised down their inflation. they saw it coming from lower oil prices, commodity prices and the strengthening dollar. however most on the committee saw the effects of energy and the dollar as temporary as they have in the past. a lot of talk about china there

where the spill over from china did raise some concerns from tuchlt s. economy. but the chinese stock market wasn't seen as a big impact. it wasn't seen impacting chinese growth overall but several on the fed said a material chinese slow down is the risk to the chinese outlook. they said provided the august labor data aren't disastrous and markets aren't in disarray at the time of the meeting we expect the fed to move. they said we still lean toward a move but with little conviction. that's the 16th and 17th. there's still information to come. along with some inflation data. >> the dovish tone caused the u.s. dollar index to move lower and take a leg down. despite this, our next guest calling for the fomc to begin

normalizing rates in september. that's the head of developed markets rate strategy. why september? there's no inflation pressures whatsoever? >> inflation is still a puzzling theme at the federal reserve. i think they since the july meeting have not deteriorated. they're still in lively debate in terms of the effect from the labor market but at the same time the fed is pointing toward financial stability as the main risk of keeping rates too low for such a long time. >> so what would make you change your view? is it the august jobs number or gdp revision we'll be getting next week? what would bit? >> it's the transitory effects that we see at the moment in major inflation aggregates. so if inflation kept crawling downward or stayed at this level despite the fact that we look at

the air fare numbers and rental numbers and overall if we didn't get the sense that inflation is in a rising trajectory. >> there's so many components to inflation but the biggest is wage inflation. we haven't seen that tick up as much as the fed has wanted. another big chunk is commodity price pressures. we can't see it from there. so do you expect the major upside to come from wages? >> first of all, the fed traditionally does look through commodity price and energy prices. so they do have a tradition of saying this is just a one off. it's not going to last forever. we don't take this into account in their policy decisions. come back to wages, they didn't come down so fast during the recession and they're not rising as fast at the moment. so it has to do with the technical concept of the phillips curve but as they stay

very tight this is going to be evidenced in wage growth. >> the divergence in monetary policy is well telegraphed. it was at the widest back in march. what happens to that differential if the fed raises rates. >> we can see the spread widening further. we have forecasts toward the end of this year and next year of moderately rising u.s. treasury yields. at the same time we have bond yields staying at these levels and perhaps dropping a little bit so the spread widens marginally. more important is the fact that we have a divergence at the front end of the zone. but also in terms of overall. we expected a slightly steeper german curve. >> i also want your thoughts on

high yield. that continues to be a big concern. not just from carl icahn but others as well saying there's a bubble brewing here. what's your thoughts? >> the federal reserve said it all. the risk of financial stablilit for keeping rates too low for too long will manifest themselves in real assets. the real estate market in germany and also high yield and equity markets. it's normal when the federal reserve tighten conditions so see decline of risky assets. >> any thoughts on what's happening in emerging markets? nearly a trillion dollar in outflows? what does that mean? >> it's the currency game. nobody wants to own any other currency but the dollar and at the same tune gold. that's what is here right now. it's a currency risk which benefits itself in the outflows. most of the pnl you have cancelled currency risk.

>> great to have you on the show. head of developed markets rate strategy at citi. another story is greece. greece has made a $3.2 billion payment to ecb to cover a government bond maturing today. this is according to a government source speaking to reuters. now they'll decide whether to hold snap elections which could go ahead as early as next month. now let's get a check on european markets. >> and we're so lower given the concerns about china and the drop in oil prices. xetra dax off by 2-thirds of 1%. also what's going on in the currency markets because the dollar index slumping on the back of the dovish fed minutes. a little bit of bounce back this morning against the yen at 12405 and we get u.s. retail sales in about 20 minutes time and finally want to show you what's happening with commodities this morning. well, brent crude off by

another .5%. wti crude at 40.60. we're very close to that very crucial 40 level. these are levels we have not seen since 2009. since the credit crunch and it all depends on increased production out of saudi arabia. that's increasing once again and yesterday we got that pretty bearish data as well in terms of the stock piles. >> the question is how low will it go. a hold reporting a 33% rise in second quarter net profit thanks to online sales growth. the dutch retailer says it's on track to deliver on its full year performance. analysts say this bodes well for the 25 billion euro merger with the belgian rival delhaize in june. in a first on cnbc interview,

here's what the ceo had to say about the tie up. >> it's a 50 billion in the newer company and there's still a limited number but we all know how difficult it is to extract it out of a merger. on the other hand, i think, the merger has a lot of benefits. the markets we operate, there must be benefits coming out in the future from these synergies and they match together very well. that's why we believe as we announced on the 22nd of june that this is a great merger with a great future for both companies going forward. >> i looked at an analyst note this morning, they love the underlying performance in the u.s. they say it's a clear positive. $6 billion in u.s. sales and they're growing their market shares there so these numbers are good for the tie because that chain once it's combined that new company will have a very solid position in the u.s.

market. they also like the cash flow generation of the firm and the very strong margins but you have to wonder to what extent they're recovering as they are in the u.s. in europe you're still seeing a very deflationary mind set. specifically in the netherlands. the czech republic also showing signs of weakness. >> two reasons i like this story. we typically think of luxury retailers as the big winners of weaker currency but here you go, a hold which generates two third of the sales in the u.s. a big beneficiary of the weaker euro. despite the entrance of amazon, alibaba, other e-commerce players into the grocery space some of the other players doing extremely well. despite the technology players playing a bigger role in the space, traditional players still doing well. >> good point. london listed online gambler gbc is getting to raise it's offer.

this after dwbwin agreed to an offer it sees as a more suitable fit. they're planning to talk about a higher proposal later today. >> here's what's coming up. who's in the market for a little pink pill? we have the details on the latest pharma m&a. and back and black. we'll hear from the company's ceo on the turn around. a dangerous ride. more trouble brewing for uber in california. all that and more coming up. ♪ we stop arthritis pain, so you don't have to stop. because you believe in go. onward. today's the day. carpe diem.

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welcome back. a low of $32 barrel for oil is a conceivable reality for wti crude. that's according to the latest note from citi but the team says the key question investors should focus on is what will eventually stop prices from falling any further. >> this comes as the black stuff slides to fresh six year lows. you're looking at it. wti is on track for an 8 week losing streak. a run not seen since 1986. a surprise jump in u.s. crude

inventory. the latest catalyst triggering the flows. i want to bring your attention to what we're seeing right now. brent and wti continue their slide. $40.64 and carry hin you and i were just speaking during the break. if we see wti crude below 40, break 40, psychologically that would be a huge blow. >> that's huge. i just wonder if we're seeing these levels at the oil markets at the same time the fed is still talking about raising rates whether it's september, october, december, january, i don't care but they're talking about raising rates. how does that go together? now we're at levels that we saw at the big recession for global markets. >> one would say that inflation number we got yesterday nothing to be excited about. 0.1% showing the drop in oil prices are having an impact on cpi but there's the bull out there that says lower oil prices is good for the consumer and the latest retail sales report did

indicate that the consumer is spending more so perhaps on that front you could say that could be a field for consumption as well as growth. >> i want to come back to the citi note. they say we should be focussing on the factors that could stop the decline in oil. what could that be? higher demand. we don't see that right now. that could be a pull back on supply. are we expecting to see that? not really. we saw the data yesterday. the nia data was really bearish and then of course we had the saudi arabia production details that also showed another increase in production so again i would come back to the point that the saudi gamble of maintaining market share and not lowering their prices, that's not paying off unless they think okay we have a really long time horizon but they must be suffering too. i just wonder what's going on in their minds. at this pointhere's no signs that they're cutting back onprodtion. when do they see the drop in oil prices? anppornityo sle bac a

help their own economy but as youoint o ts stoas fundamental factors and techca ftors aay. we were speaking to a technical strateut how oil doesn't look good brking ne, obviously. we know that already but i thi ven e tw factors at play he, clrls is to the do de. >> ablutely th international monetary fund freezes it's currency basket until next year as it considers adding the chinese yuan to the list of reserve currencies. they're trying to be viewed on a similar footing to establish reserve currencies like the dollar and the euro. the country loosened it's controls on its exchange rate earlier this month and dollar yuan at 6.39. >> for the currency dorks out there we'll teach you about a new one. the tenge lost a quarter.

it had been under pressure from falling fx values and major trading partners such as the devaluations in china, the steep fall of the rouble. now the central bank governor said he expects the currency to find a balanced rate within a week. >> the devaluations of the tenge. i have trouble with pronunciation. >> our dear producer looked it up and told me tenge. >> okay. the devaluations saw the london listed kaz mineral stock jump nearly 20%. half of the company's cost base is denominated in that currency. the bank added however that kaz minerals fx benefits could be offset by an increase in underlying inflation. all right. let's get back to corporate news.

qantas returns to profit saying it plans to make its first cash return to shareholders in six years. they posted full year pre-tax earnings shy of analyst forecasts but represents one of the fastest turn arounds in history. >> it certainly was a turn around for australia's biggest airline qantas returning to a full year profit after a $2.8 billion loss this time one year ago. the qantas ceo calling it one of the biggest turn arounds in australian corporate history. we saw 975 million australian dollars against a loss of 346 million a year ago. net profit versus that $2.8 billion loss a year ago. they're cutting $2 billion out of its cost which meant it's been able to turn around the operations and return to the black. it's also going to be offering

shareholders about 505 million australian dollars by a capital return. they plan to boost capacity by between 3 to 4% and also says that it's going to acquire 8 boeing 787-9 dream liner aircraft to replace some of its aging 747. we spoke to the ceo and bear in mind that the companies had quite a few tail winds when it comes to the last 6 to 12 months. oil prices falling to about $40 and also a lower australian dollar and i asked how qantas will mitigate the challenges that the macro environment might throw at him. that's what he had to say. >> that's why it's a $2 billion program. we still have 900 million in benefits that we're going to deliver on over the next two years and the focus on that is to make sure what the environment and qantas has an

official operation that would allow us to achieve our cost of capital through the cycle. that's the aim of the transformation and you're right. we did get some benefits on fuel and continue to do so. not all airlines are achieving that. >> qantas shares ending the session in sidney sharply lower up to about 3% at the start of trade. >> now of course if there is one sector that benefits from the drop in oil prices it is airlines but we should point out the airlines index up about 30% over the past 9 months so you have to wonder how much more can the drop in oil prices help these airline stocks fly high. but we'll see. >> really good point. you mentioned the cpi number yesterday. increased 0.1% but we saw a big, big drop in airlines fairs. so maybe they're passing it on to the customers. >> you would hope so. >> although i have been making these last minute trips for the weekend and i was paying way too much money.

perhaps that's just timing. >> that's timing. >> i'm not going to mention any names. >> lower cost ones. i do. i'm open to it. but speaking of airlines as the demand for more flights increases, airports are battling to keep up. phil has more on that story. >> who says flying is fun? at many airports there are run down terminals and seemingly constant delays due to congestion. no wonder many agreed with vice president joe biden when he blasted the condition of new york's laguardia airport. >> if i took you and blind folded you and took you to laguardia in new york you'd think i'm in a third world country. i'm not joking. >> some airports like jfk in new york are upgrading with brighter refurbished terminals. fort lauderdale built a new concourse so the airport can handle more flights and last month the vice president and new york governor andrew cuomo announced plan to tear down

laguardia and completely rebuild it. >> best of all it's not a plan, it's not a sketch, it's not a dream, it's not a vision, it's actually happening. >> it's already happened in denver where the city built a new airport 20 years ago. since then people flying through denver increased 72%. >> more importantly, dia has the space to double in size and add up to six more runways in the future if needed. >> there's no question that 52 square miles gives us an advantage over laguardia and l.a.x. in fact, that is the future of this airport. >> why are more u.s. cities either rebuilding or adding brand new airports? well, first of all, it's expensive and either raising taxes or spending billions of dollars is a tough sell politically. second of all, many existing airports are locked into their current locations. so there's little land around them to expand and add more

runways and critics say money shouldn't be spent refurbishing terminals. it should go to improving traffic flow so there's fewer delays and less congestion. >> we need airport where is people are going to go. that means we have to have efficient airports and we'll have a much better system. >> taking the headache out of flying by improving airports and getting in the air. cnbc business news. >> and still to come on worldwide exchange, shopping or dropping? we're going to bring you the latest u.k. retail sales data as it breaks. don't go away. it's due any minute now.

fed minutes indicate no hike in september but the fomc maintains we're still approaching higher rates. the green back wiping out three days of gains. >> oil sliding to a new 6 year low after surprise increase in u.s. stock piles. energy shares leading the declines in europe as the bears at city forecast another $10 drop. >> more losses in beijing as the yuan takes another leg lower. this after the imf says china is not ready for reserve status just yet. meanwhile, they send the

currency sharply lower. >> supermarket sweep. shares get a lift after profits rise amid stronger online sales. they enjoy a ride as the merger progress progresses. we're waiting for u.k. july retail sales. we're expecting around 0.4% month on month. ahead of that sterling dollar is trading at 156.49. we're around 0.2% on the day. let's get to adam, heck of economic research and market strategy. .4%? is that what you're expecting too? >> yeah. wouldn't be surprised if it came a little bit stronger than that. >> how much attention would you want to pay to any of the monthly numbers. they're so erratic and there's always the weather impact. so do you care about the monthly numbers at all? >> of all the u.k. data retail

sales is probably the most volatile. so not only in the month of july but also revisions to reckon with as well. >> how much do you think it will help in the coming months? clearly the latest number was impressive. >> i think it's very strong at the moment. employment rate is improving. unplace of employment is coming down. so we think retail sales will be stronger. >> we have the numbers, up 0.1% month on month. 4.2% year on year so this is lower than what we had expected for the month on month figure and just lower than what we expected for the year on year figure. the forecast was for 4.4%. july retail sales up 0.4% month on month plus 4.3% year on year. let's give you the three month figure up 0.5% and the u.k. july retail sales deflator down 3% year on year and on the back of

that, as you can see on the chart there, sterling dollar falling against the u.s. dollar. 156.40. not a huge move but slight weakness now in cable. instant reaction? >> clearly the headline number is weaker. i guess the auto number is pretty much in line. so it's okay but it suggests that the consumption bounce back in july hasn't happened and adds to evidence that maybe something has slowed as we move through the summer. >> but i would come back to the previous comments two seconds ago. this data is incredibly volatile and incredibly erratic. we have better than expected gdp numbers and pick up in wage growth. isn't that data something you want to be focussing on? >> we don't attach a lot of importance to monthly swings in retail sales. what stands out to me is the retail sales deflator in prices about 3% on the year.

this picked up from .8 to.2%. it's a little bit odd what the difference will be underlying consumer price index is telling us what it is. but at the moment there's very little price pressure. >> maybe this is the new normal. can we expect a meaningful rise in retail sales if inflation continues to hover around 0.2%. >> it depends on where you think the causality falls of course. and most are expecting an improvement because of that. >> what's your outlook on the currency? a stronger pound has been a notable trend if you take a step back and look at the three month chart. the adverse impact that could have on the u.k. economy. something the central bank is voicing concern over. where do you see it heading from here? >> we expect sterling to weaken

against the u.s. dollar but that's on the view that the fed raises interest rates maybe next month. although that's looking a little less likely but we think sterling will rally a hill bit and depreciate against the euro. imports will weaken and that will help to support consumer spending. if it weakens against the dollar of course commodity prices will be firmer. so mixed performance i think. >> we had dovish fed minutes out of the u.s. overnight and then we had cpi numbers in the u.s. which were also not great. it's in line with what we're seeing in the u.k. but here in the u.k. we had similar hawkish commentary from the likes of forbes. where are we in terms of monetary policy? could it be pushed out? >> we shifted our view from november this year to february with the risk of only it could

be a little bit later than that and of course the recent data i don't think changes that. i think the fed will move first. it's a close call whether or not they move next month but the bank of england will be looking most closely at what's happening geopolitically but also to domestic spare capacity and nothing in today's numbers really change that actually spare capacity is being eroded and the date of the first rate rise is approaching. >> sterling right now moving lower after the u.k. sales number disappoint. thank you for joining us and breaking the numbers down with us. head of economic research and market strategy at lloyds bank. >> police in thailand are on the look out for a foreign suspect connected with this week's bombing in bangkok. >> the search for the bomber widens. what we understand now is the thai authorities approached interpoll for assistance.

it suggests he could have a foreigner but also may have fled the country. the thai police chief is quoted as saying it could be a group behind the attack consisting of at least 10 people. half of which could be foreigners and he said this was a well planned attack bangkok remains a city on edge. they talked about a cancellation rate of around 5%. the impact does look limited but much depends on the outcome of this final vags investigation. cn . >> the incident in the city's northern district partially destroyed the building and left a crater in the street. no death versus been reported but let's get more on that story.

hadley gamble joining us around the set. >> it's interesting to look at what we were speaking about laws put in place by the president and if you talk to anyone in government they'll tell you this incident is one of the main reasons why they put these new laws in place and essentially what we're hearing from other journalists is this is tamping down on our freedom of the press and it's not going to make any of these things better and unfortunately this is a case of the government not knowing how to address these problems. we have the problem with the militants in the sinai and the islamic government is taking credit for these. you can't fight terror with tanks so this is one of those last ditch efforts to do something about this problem and unfortunately this means that a lot of social freedoms are going to be taken away. >> we want to touch on turkey. turkey's ruling a.k. party proposed a snap election following weeks of political

deadlock. the move comes after the country's prime minister ended attempts to try to form a coalition government. meantime, more violence in turkey, too. 8 turkish soldiers have been killed after a bomb attack on their vehicle. this according to reuters citing security sources. the army placed the game on curdicur kurdish militants. the economy is in dull drums. we're seeing the currency going from record lows to record lows against the u.s. dollar. do we expect more certainty now that we have a date? >> the government is hoping that will help to at least stabilize the lira but it's doing the worst of almost all market current with the exception of brazil. it's a major problem for him but he's calling for these early elections or another round of elections and even if you gain seats for the a.k. party that

doesn't mean he'll be able to get the power he wanted. broadening the scope of the presidency. so with no real plan in place things for turkey seem to be going south quickly. >> if you take a step back, china looking to weaken their currency more and yet at the same time you have turkey. their down 20% against the u.s. dollar. what unconventional policies could the turkish central bank use to prop up their currency in the coming months. >> what we have seen over the last couple of days is he's trying to put more liquidity into the system but will that actually work? and there's bigger questions about whether the central bank in turkey is independent. we've seen he's had major problems with the president and attacking hill consistently saying they're working against turkish growth. so when you have that kind of thing happening and you don't have a government and you're

having wars on two fronts and you're fighting the kurds and have a problem with the islamic state within your own borders it doesn't shape up to a positive outlook. >> and then the fundamentals problem. they always had a very high account deficit and we had a guest this morning say this is one of the merging economies that didn't take advantage of the good time. so that window has closed because now we're coming up toward a fed hike but hadley, thank you for that. >> a story we will continue to watch. but moving on, more than 20,000 migrants landed on the shores of greece last week alone. this according to the united nations which has been warning of a counting crisis. bill nealy filed this report from the greek island. >> the world's worst refugee crisis are washing up on these shores. thousands of people are arriving here on this small island fleeing the wars in syria, iraq and afghanistan.

risking their lives on a short sea crossing from turkey and it's a crisis that just got a lot worse. >> just after dawn the first of dozens of boats nears europe filled with desperate people fleeing war. >> this is one small boat. it's meant to hold 15 people. must be 40 on this one. this is wave upon wave of refugees washing up on the shores. >> they struggle off in tears. >> it was so horrible we were dying. >> i'm happy. very happy. >> all newborn refugees part of the biggest migration in half a century. escaping syria and the terror group isis. >> they come to kill us. >> my sister.

>> your sister was killed. >> my daughter. >> you want to live? >> yeah. >> tough men who have endured horror for years weep with relief. another boat crashes on shore. nearing land, others begin to celebrate with their children. >> well, they look like they're on vacation. they're taking selfies. these men have come from syria. they're fleeing war. they're still risking their lives for a new life in europe. they begin a long journey heading for richer countries than greece, germany or sweden but they face a long wait to be registered as refugees to be free to go. at other camps there's been clashes with police waiting in hundred degree heat for three weeks.

food and water is scarce. frustration is not. tempers and temperatures boiling. >> if this is europe, we're going back to syria. >> people are having to buy water and they say cons here are inhumane. >> this is true. i mean, this is true, the conditions are unacceptable. >> the u.n. says all of this is shameful. greece cannot cope. thousands are arriving every day. they spoke with refugees fleeing not the taliban but a new threat, isis. >> it's coming up in afghanistan and it's huge. >> isis? >> yeah. >> a quarter of a million fled to europe so far this year. greece on the front line of a daily daily exodus without end. >> there's simply no end in

sight for the crisis here. it's likely to go on for as long as the civil war in syria lasts and no one expects that to end any time soon. >> i just want to bring you some flashes now. we're learning from reuters that south korea fired artillery rounds toward the south of an incoming north korean projectile in the western area of the border on thursday. this after south korean military fired 10s of 155 millimeter artillery rounds after north korea fired a projectile at a south korean propaganda loud speaker. south korea fired dozens of shells back at north corkorea. a story we'll keep you up to date on. that was to be expected. two weeks ago we saw two land mines on the south korean side

that injured two south korean soldiers. they later claimed those land mines had been placed there by north korea and as part of their retaliation they want to increase their loud speaker propaganda. north korea then said we're going to retaliate against that so this is exactly what we're seeing and there were some escalation between the two koreas. okay. back to markets and we're still seeing pressure on european markets today as we did see yesterday with steep losses for the stock 600. the ftse 100 off by half a percent. what's driving us lower? concerns about china and the oil price which dropped to another 6.5 year low overnight. also the stoxx europe 600 a good gauge of how european markets are doing. it's looking like this. let's bring this up, the stoxx

600. stoxx 50 is lower as well. let's move on to that chart. we've got it down by 0.8%. quickly moving on to the bond market as well. what we're seeing here is continued safe haven buying. as a result of the low inflation trade. the deflation nary trade. even the ten year treasury yield is at 2.11%. that came on the back of the low oil prices but also the dovish fed minutes yesterday. the 10 year bund yield is at 60 basis points and quick check on the currency markets. we talked about the index overnight to the tune of 0.7% on the heels of the fed minutes. we have stabilize in terms of the u.s. dollar rate. euro dollar at 11116 and the pound just a tad lower on the back of the slightly lower retail sales at 156. >> we'll discuss millennial trends. how are the newest generation impacting fashion retailers and

would you buy a t-shirt that los angless for 30 years? coming up right after this. shopping online... ...is as easy as it ts. wouldn't it be great if hiring plumbers, carpenters and even piano tuners... were just as simple? thanks to angie's list, now it is. start shopping online... ...from a list of top rated providers. visit angieslist.com today.

it's a follow on from the 30 year sweatshirt. let's bring in james, director at menswear brand and he is here on worldwide exchange. james, great to have you on the show. >> thank you for having me. >> tell us about this t-shirt, why do you think there's so much demand for it? >> it's a loop back t-shirt made out of italian cotton and it's available on a crowd funding website and it's just a stand against throw away fashion culture which is pretty prevalent on the high street. >> in general you are a 24-year-old that is creating fashion that appeals to a variety of different customers, specifically celebrities. how have you been able to capture the attention among some of the big customers? >> by basically just appealing to their sustainable element of clothing. they're sick of owning an item and waerg it once and throwing

it away. where we guarantee our t-shirt and the sweatshirt which i'm wearing with a 30 year guarentee. >> how can you be so sure that you'll bewaring this in 30 years assuming that you're going to stay the same size? assuming that you're going to have the same fashion taste? is that really feasible? >> i think certain items such as t-shirts and sweatshirts don't really go out of fashion. and certainly in recent times there's been a trend that go that way such as the 10-year hoodie which was very successful. it shows there's a demand for it and people want it. high quality clothing that lasts for a long period of time. >> but aren't you damaging your own volumes because you want repeat buyers. if you have one buyer that buys a 30 year t-shirt he's not going to come back is he? >> he might want more than one t-shirt. everyone would have more than one.

>> how much does it retail for? >> the t-shirt? >> the t-shirt retails for 30 pounds. >> and the sweatshirt. >> 60 pounds. >> and it's ben stiller, daniel craig among others. >> yeah. >> it's pretty impressive. >> i want to talk about the lifestyle of the millennial men out there. what styles are good for that generation. >> they want what they want and when they want it. it's all about the experience and through social media such as facebook and instagram you make your brand more into a lifestyle brand rather than just a clothing brand which bricks and mortar stores aren't really doing. >> let's get specific. is the man bag coming back? because i remember the ceo of coach came on cnbc quite sometime back and he said the man bag was selling well because they don't like the boring laptop bag.

they want something cool and fashionable. >> yeah, i can see that happening and it certainly depends but from my personal experience it depends on how you interact with your customers on social media and instagram particularly. it's been quite a good way for us. >> jewelry too. i find that more men are waeearg bracelets and a simple necklace. >> yeah and it all links back to the way it's promoted on social media and people can find exactly what they want and read reviews from their peers on blogs and things which really helps promote. >> do you think that in 10 to 15 year times do you think there will still be brick and mortar stores millennials flock too? or online solely. >> we make most of our revenue from our website. but i still feel there will be a place for brick and mortar stores, certainly. but for the millennial

generation people prefer to shop online. >> crowd funding was an instrumental part and you received a 6,000 pound government start up loan. without the governments loan would you have been able to do this? >> we would have been able to launch our 30 year sweatshirt and t-shirt but the trouser range we have we would not have been able to launch. so my brother applied for a loan which as you say a government-based loan and that gave us the initial capital to meet with suppliers and buy for our first stock. >> all right. thank you for joining us on worldwide exchange. >> would you wear this dress for 30 years if you could. >> if it still fits me, why not? that would be great. save some money. that would be great. >> okay. let's take a look at today's other top stories. valeant is near a deal to buy sprout pharmaceuticals.

the wall street journal says valeant will pay $1 billion in crash. half up front and the rest next year. it will also take on all 25 of sprout's employees including the top leadership as they get set to start sales of the drug in october. valeant up by .3%. >> a lot of people saying this would be a big acquisition target after that drug was approved a couple of days back. health care m&a. highest levels since 2002. pretty incredible. switching focus to retail, l brands second quarter profit rose more than 7% beating forecasts thanks to continued sales growth and stronger margins. same store sales at victoria's secret rose 3% while bath and body works was up 5%. they're raising the four year outlook although they're below analyst forecasts. shares fell about 2% in after hours trade and down 3.5% in

frankfurt. >> prosecutors are broadening their civil suit against uber filing a newco complaint on tuesday. they missed people convicted of sex crimes. several criminals passed the company's screening process and were driving for uber until they were cited for providing illegal rides. uber said safety is a top priority and no screening system is flawless. and we will be speaking with deepak chopra later in the show. how do you relax and get meditation in the markets? >> get in touch with us worldwide at cnbc.com and our personal handles are at the bottom of the screen. there's so many ways to do that. meditation, yoga or you play

games. a lot of guys are still resorting to the playing games. >> so football, babble. >> i would think so or online games. >> yeah. >> i wrote a piece on this and found that many of the folks i'm speaking to on wall street are embracing yoga. it's not just a workout. it's now about the mind, body, and soul workout and that's needed in high stress environments which tends to be on wall street. so it's something we will discuss with deepak chopra known for being a guru that promotes yoga and meditation. >> have been seeing more guys in my yoga studio. >> you're a big yoga fan. >> you are too. >> listen it came from india. i have to support my people. >> it's big business too. >> it is. >> lululemon has done well.

>> we'll switch focus to something sweet. it's valentine's day in china but global chocolate makers are not feeling the love. demand has been hit by the clamp down on rivalry and recent fall in consumer confidence. hershey said it would fall to less than half the $200 million exexpected. >> still to come, u.s. corporate earnings are far worse than investors are acknowledging. stay tuned. we'll be back in two. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement.

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welcome to the second hour of worldwide exchange. i'm seema mody. >> i'm carolin roth. these are your headlines. >> the fomc maintains we're still approaching higher rates. the dollar wipes out three at as of gains. meanwhile, oil sliding to a fresh six year low. >> more losses to beijing as the yuan takes another leg lower. china is not ready for reserve status. >> supermarket sweep. shares get a lift after profits rise amid stronger online sales. the