a very warm welcome to you on this friday morning. i'm wilfred frost. >> i'm seema mody. here are your headlines from around the world. >> the nikkei tumbles to a 7 month low. the negative sentiment spreading across equities. >> pessimism on china is overdone this amid rumors that fears over a hard landing will be left out. secretary general tells cnbc he welcomes the stock market

correction. >> it was a super bubble. a bubble of a bubble where you go there and the taxi driver is telling you what stocks you should invest in. it's wrong. >> ready, willing and able. the ecb pledges more easing as needed. this as the former greek finance minister tells cnbc that mario draghi is trapped in an ire cage. >> the central bank of europe is a paradox. on one hand it's extremely powerful. on the other hand it's utterly powerless. >> vladimir putin shrugs off the sharp fall in the oil price but how much of a threat is the china slow down? we have the prime minister later in this show.

welcome, everyone to the show. it is one of the most critical jobs reports in recent memory. this could be the number that decides whether the fed will lift off or push out a rate hike this month. economists are expecting another solid month of hiring. forecasts call for 220,000 in non-farm payrolls versus 215,000 in july. august tends to be quirky. numbers are inaccurate as many people are on vacation when the government conducts it's survey but a very important number. >> i wonder where it's going to fall when investors take it as this means september rate hike is there. tweet us with your prediction and where you think that crucial barrier is in terms of it if keeps september on the cards or not. now ahead of that decision and of course what it means for the rate hike we have seen some safe

haven trade over the last week or two the euro and the yen have been acting strangely as safe havens. that's seen the yen rise by 0.7% against the u.s. dollar today and as usual negative correlation between the yen and the nikkei. the nikkei selling off by 2%. let's get an update on what markets across asia are doing from sri live in singapore for us. >> well, the japanese equity markets were the lost leader today as you pointed out. 7-month low at the close. the yen was part of the equation but also underlying china dproeth concerns.

i thought it would remove a fairly considerable volatility from the market and we would see stability over the course of the week but not really. it was the case yesterday. we saw a degree of composure. a very different story today. there's real jitters in the asian markets and the emerging markets out here just ahead of the payrolls figure. let me talk to you about the korean benchmark down 1.5% but eking out very modest gains at the settlement. just over the 5,000 mark but this is a market that was down over the course of the week quite sharply so it really is the main risk event. that's the non-farm payrolls. emerging markets are watching this one very closely for any implications for the fed and whether we'll see a september lift off or not. that's where we stand. back to you. >> that negativity in asia has carried through back to europe. one line of stocks in the green

today. less than 60. less than 10% of the stoxx 600 in the green. we're looking at a minus 1.46% move in the markets today. dovish tones coming out of mario draghi pushed markets higher. around 2.5% higher yesterday. there are the individual markets. ftse 100 down over 4%. let's look at bonds. all eyes on that u.s. ten year bond yield today and what does that mean for rate hike expectations? we're at 2.13% today. we'll keep an eye on that of course throughout the day on cnbc. ten year in germany, we saw a little bit of buying yesterday. a little bit of yield compression. 0.7%. let's look at rates. at the top, the yen has been a safe haven trade over the last couple of weeks. the euro the message different because yesterday we saw 1% of

decline. the rhetoric coming from mario draghi achieved it's aim and softened the euro once again. it's bouncing back by 20 basis points. 11141. it did dip below 111. the oil price saw a bounce yesterday in the middle of trade although those abated by the end of the day. 46.1 on wti. brent just below 50. >> let's take a look at what some of the banks are saying about today's highly anticipated jobs report. over the past four years august payrolls surprised to the down side before being revised up. their belocon census number at 180,000. they're even more pessimistic predicting payrolls growth of 170,000. august employment missed consensus expectations in 21 out of the last 27 years. >> but at the other end of the scale barclays which is

forecasting nonfarm payrolls to rise by 225,000. they point to declines in part time employment for the bullish call. this is one of the most exciting calls in sometime. very strong performance averages of around 210 ho,000. i wonder where it needs to be. >> at the same time it will be interesting to see how global markets respond to this jobs report. does that mean if we get a disappointing number that the dollar will weaken and the implications of that around the world for emerging markets specifically china given that currencies has been a big part of the story. >> and the focus has well hasn't been on domestic u.s. data. it's been on the likes of china and caution. that's been saying can the fed hike in this environment. but they will focus on domestic

data so we have to think about this. >> they don just focus on data. the fed is not data dependent. that's a big story playing out over the last two weeks. will policy makers respond to the turmoil in the markets and the slow down in china so clearly it's a two-way story here. fundamentals and external developments that could impede the growth story. >> we want to hear from you. what jobs number would put a september hike off the table? what number does it is to be above to keep the september hike in play. join the conversation here. get in touch with us worldwide@cnbc.com. >> moving on pessimism over china's short-term economic outlook is overdone. that's according to a new report from ratings agency fich. it expects to see a pick up but the medium term forecast is

optimistic. china's growth rate could slow to 5% as it gradually rebalances it's economy. >> china's market volatility is expected to dominate discussions between central bank governors and finance ministers in turkey but cnbc understands it won't be mentioned in the communique. steve is live there for us. >> that's a hill bit of information i gleaned from one of the delegates. it shouldn't come as a surprise to anyone although i understand why it's news worthy for people. everyone wants to know about china. everyone wants to know whether the finger pointing will make it through into the final communique. it often goes on ahead of the meetings. it did with japan a couple of years ago. it's against the rules among the g movement but people shouldn't be surprised that china's not going to be named specifically

bearing in mind that it's such an important partner that it's going to be in washington and new york later this month and to upset him on that level would be undiplomatic to say the least and the fact that the g-20 had have china in 2016. that would set a very interesting situation in process. everyone is worried not only about the fed and the rate hike and the payrolls and all of that data but specifically about china and whether china has got specific control on what is going on both in it's economy, it's society and it's stock market. so i asked the secretary general of the oecd just what was going wrong in china. >> well, first of all it was in the stock market where the correction took place. one that had gone up 150%. it was a super bubble.

when you go there and the taxi driver is telling you what stocks to invest in. it's wrong. but it has happened. the question is the cruising speed. the plus, more or less 7% question. that is a critical part. can they sustain that? that's more sustainable and probably more desirable than the 11%. you and i talked about the fact that when you're going at breakneck speed you can break your neck. that's not good for the chinese or the rest of the world. so a more sustainable plus or around the 7% is probably more desirable. >> if this was just about the stock market we wouldn't have seen a host of what many have said are panicked reaction from the chinese as well. a host of measures that don't look like as jack lew has been putting it that the country is moving in the right direction on reforms, on market friendly reforms, there's a lot of things that happened in the last couple of weeks that would suggest that this is more than just about the stock market. >> there is a signaling system going on and i think the signals

are saying amber and then you have to refine your efforts and focus more and look at overinvestment in many of the sectors. the impact of over investment and over capacity. it's been enormous because you already had a very slow growth in the world and there was already overcapacity and the chinese come with an enormous amount and the market prices have dropped so these kind of impacts are very important and more and more because sometimes my impression is that chinese underestimate their muscle. >> not too worried about what's going on in china specifically but it suits a lot of other players. it suits the other 18 nations plus the eu in the g-20 to have the attention on china because from brazil to indonesia to south africa to saudi arabia, all of these countries have got all kinds of specific problems

and to have china as the focus i would suggest that suit miss people as well. one point though, the last presidency of the g-20 was australia. this was an australian presidency that promised the absolute world. they promised 2% more growth by 2018 and i would suggest they sold turkey. trying to deliver those promises of last year was always going to be a tough task let alone with the slow down we're currently seeing. so all kinds of problems for a lot of nations and not just china. back to you. >> very good. thank you for now. coming up on worldwide exchange, connected cars are causing security concerns so we're going to get the industry insight from one of the biggest auto equipment players. the ceo joining us in the next hour. >> plus is it time for lonovo to switch out of the pc strategy?

we asks as it unveils the latest smartphone in berlin. and cnbc sent john to jack dorsey's beard master to see if there's any hairy moments ahead for twitter. stay tuned, we're back in two minutes. before earning enough cash back from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or at a bank of america near you.

>> welcome back. willingness to act was the words from mario draghi. they downgraded the forecast for growth and inflation saying europe could suffer from china's slow down and falling oil prices. draghi also reiterated that the bond buying program could extend beyond september next year. >> it emphasized it's willingness and ability to act if warranted by using all the instruments available within it's mandate and in particular recalls that the asset purchase program provides sufficient flexibility in terms of adjusting the size, composition and duration of the program. in the meantime, we will fully implemented our monthly asset

purchases of 60 billion euros. these purchases have a favorable impact on the cost and availability of credit for firms and households. they are intended to run until the end of september 2016 or beyond if necessary. >> earlier the former board member and chairman says the central bank needs to watch the fed's next move very closely. >> if the u.s. doesn't tighten then the others have to be ready to do more because the cycle is behind in europe and japan. so it all depends in the end on what happens to the u.s. and certainly the message yesterday was we're ready to do more if needed. >> i have to say he is the master of rhetoric.

>> he is. >> there was a tiny, tiny change of policy. but in general no major change of policy just his words. >> he's done this for so many years saying he'll do whatever he takes to save the european economy and he also mentioned the strengthening euro over the past couple of weeks given the uncertainty and the impact that could have but it's something to watch especially with this jobs number. interest dag ating data from th could change the he question. >> and he's got in there just before we get closer to the september fed meeting. i do also think it highlights the importance of a central baker having credibility. he has so much credibility because the market believes him. the currency moves because they believe he will come through if necessary. >> but for awhile he was losing credibility. it was all talk and not much action. some would say it was a little too late but we're starting to

see the macro economic picture improve here in europe but i would argue that the economy and the growth story is still very fragile and the big question is how china and these developments will impact europe's picture. >> he was very clear that the external factors were in play and those revisions were up to august 12th so the latest issues in global markets weren't included and that's also part of the dovish sentiment that came across. let's move forward, greece's syriza party says it's confident of winning despite polls saying the new democracy party was making ground ahead of the vote. new democracy is backed by 25.3% of respondents ahead of 25% in

favor of syriza. >> greece may have agreed to a fresh bailout deal but that doesn't mean the ecb will start buying up the bonds. athens will have to pass a review and show a commitment to reforms before any bond buying can begin. >> speaking to cnbc earlier the former greek finance minister said he will not endors endorse tsipras. he says the nation's economy is imploding. >> we have these mous not worth the paper they were written on. it doesn't even need an economist to take a look at them. a 10-year-old with some basic skills would know that if you have an unsustainable debt which we did in 2010 and you try to solve it by pretending it's a problem of liquidity and piling up on it the largest loan in history on conditions that will shrink the incomes from which the old and the new loans will

be repaid, a 10-year-old knows that cannot end well. >> we want to bring you up to date on the migrant crisis here in europe. this is a live shot from a railway station where migrants are hoping to reach germany. are refusing to disembark on a train and move to a migrant camp. you can see them outside of the train station. >> the european president will impose a major increase in the number of migrants each new company would take in. they had a previously rejected plan with over 100,000 migrants from italy, greece and hungary. david cameron resisted cause to take in more refugees after a picture shocked the nation and prompted further outcries against the government's stance.

hadley joins us on set and still not a consensus among european leaders on the best course of action forward. >> not at all and i don't think you're going to see that resolved any time soon. look at david cameron. this is a total political tightrope for him. there were people out there that were afraid and angry so not something that's going to be easily sorted in this country and then the rest of europe and what's happening in eastern europe as well. there were certain european countries thinking about a fence they could put along the border. that's extreme. especially given the flak they have given israel over the last couple of years so you're seeing many different opinions and certainly this is all about how they're going to process these people and how they're going to pay for them. >> when do you think we get a plan of action on a series of european leaders to handle the influx of my granlts coming. >> we understand.

we say why aren't these middle east countries doing more. millions of people have flooded out of syria and been taken into jordan and turkey for example but what about the gulf states and why aren't they doing more? these are questions i think they're going to be asking in the coming days as well. >> hadley thank you very much and at the moment we've got lots of bilateral conversations between european leaders. all of them not coming together until the 14th of september so unlikely to get a clear decision from them. >> a u.s. grand jury indicted the trader that helped contribute to the flash crash in 2010. the justice department first announced criminal charges against him in april including wire and commodity fraud. commodity price manipulation and

attempted price manipulation and seeking to extradite him to the u.s. to face trial. he was freed from a british jail last month and is accused of using an automated trading program to generate large sell orders to push down prices. he cancelled those orders and bought contracts at lower prices. >> i want to bring you a flash coming out of russia. an aid is reported as saying that fx purchases should start if u.s. dollar-ruble drops below 60 roubles. the dollar up 1.6% today. 67.57. do stay tuned because we'll hear from the deputy prime minister of russia and oil revenues tumbling and that latest flash on the currency also relevant. that interview coming up live on

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risk off the table ahead of a critical nonfarm payrolls report. the nikkei tumbles as investors pile into the safety of the yen.

negative sentiment spreading across the european equities. >> pessimism on china is overdone. this amid rumors that fears over a hard landing will be left out. oecd secretary general tells cnbc he welcomes the stock market correction. >> it was a super bubble, you know? a bubble of a bubble. when you go there and the taxi driver is telling you what stocks you should invest in. it's wrong. >> ready, willing and able. the ecb pledges more easing than needed. this is former greek finance minister tells cnbc that mario draghi is trapped in an iron cage. >> the central bank of europe is a paradox. on one hand it's extremely powerful and on the other hand it's utterly powerless. it reflects the incongruities within the euro zone. >> nothing critical. vladimir putin shrugs off the sharp fall in the oil price but

how much of a threat is the china slow down. we ask russia's deputy prime minister later in this show. >> let's get a check on european markets. mario draghi's dovish commentary. european equities responding to that positively yesterday. we did see stocks close higher across the board. today stocks lower by 1 to 2%. xetra dax down 1.7%. this ahead of the highly anticipated jobs report. the uncertainty over whether this would be a good number could impact the fed policy decision and that's something that investors are grappling with today. the italian market down 335 points or a 1.5% move to the downside. >> part of the reason for negative sentiment in europe is because we had negative trade in asia. sparked really from a sell off of the nikkei which itself was caused by a rise in the yen and that negative correlation

between the yen and the nikkei holding strong as ever. nikkei down 2% as you can see elsewhere in the region. let's also look at commodities. a little bit of a bounce yesterday in line with the dovishness from the ecb although that had abated by the end of day's trade and we're down .5% for brent, 50.4. wti at 46.4. down 0.7%. right, nothing critical. that's how russian president vladimir putin has described the route in commodity prices. let's get out to julia. she is live at the forum on the shores of lake cuomo. >> you could argue that the oil price is critical wilfred. thank you so much. i'm actually joined by the deputy prime minister of russia. thank you so much for joining s

us. there's been speculation that we could see an agreement between russians and opec to limit supply. is that a possibility? >> oil prices have been fluctuating for awhile. we saw very low oil prices, 15 years ago for instance when oil prices were below $10 per barrel and we saw oil prices hike to 110 or $120 per barrel. russia is used to it and we can do it. certainly we're better off with 80 or $90 barrel but even if it's 50 or 60 we can optimize the budget expenditure and other spending to live normally at those levels. still we're talking to opec and

at the meetings and they're discussing it. it does mean that we'll come to the agreement but they help to establish common ground. >> countries like venezuela are pretty desperate at this point but you're saying you're willing to engage in conversations about the oil price but this time is no different to any other times when you engaged in conversations with opec members about the oil price. there's not going to be any kind of action. >> nobody wants excessive instability in oil markets and most of the participants are better off with prices more like $60 per barrel. so i think it is useful to have some kind of transparent policy of all stakeholders toward reaching those more comfortable levels. >> but you're not going to cut supply? >> for russia given the structure it's very difficult to cut supply artificially. if oil prices will be low enough

for a long period of time supply will go down the natural way and i think it's the most efficient stabilizer for the market. the saudis are at 3 year highs. it's making a bad situation worse. >> one way you can deal with that is to stop providing excessive tax for countries who mine credit oils and expensive oils. at this point we are not doing that. we continue to provide those preferences and have the right approach but given the budget restraints at one point we can think about this more. again, still we believe that at this exact point in time we do not need intervention into the

market forces but we cannot exclude any steps in the future. >> for now russia won't blink first. >> no. >> let's mover on because i think this will be a dominant theme. a concern that china is not in control at this stage. managing reforms and slowing growth that everybody has been expecting. are you concerned that as far as policy is concerned things are out of control. >> it's very safe and predictable partners for oil countries and they were able to manage their economy very well over the last few decades and we are confident that china will find ways to stabilize it now and go to sustainable growth rates over the next few years.

those rates are not going to be as high as before and nobody expects china to grow again 10% in the future. but 6 to 7% is quite natural growth rate for china and we believe in it. >> a lot of people are concerned that they're not going to be able to sustain 6 to 7%. we're looking at percentage rates more like 3, 4, 5%. we are having negative growth rates but sustainable growth rates over the medium perm perspective 6 to 7% for china is possible. >> as you rightly point out you're also struggling. the china weakness and commodity story all filters in and makes the likelihood of your recovery that much more difficult,

doesn't it? >> it causes reduction in growth rate. it all depends on chinese development. and we believe they'll be able to come back to normal and help the rest of the world as it grows. >> i want to ask you about the latest sanction measures that the u.s. has taken. europe has rolled over a number of their measures but we have seen additional measures taken by the commerce department that includes that. what is your sense of the further sanctions that are being imposed here and will there be a response? >> first all the steps to impose new sanctions or to widen existing sanctions for us it just will continue stupid policies conducted by our

partners in france. creates not just for russia but for themselves. for europe in particular. to some extension sanctions against europe is europe and not russia. so i think that at some point european authorities, european countries will think twice about continuing those policies. we are responding. our entire cultural sector benefits from that. financial sanctions create difficulties for financing for oil companies. >> was it a measured response? you have 20% food price inflation. it looks like an expensive political point for me.

>> we have to find something to support them and food embargo was a good way to support our agriculture sector. it's growing at a sustainable basis. we are -- you have new products. very good basic products and not at high prices yes, short-term inflation is a direct consequence of a lot of sanctions but rouble deflation and that's unfortunate but increased domestic supply will seize stabilization of prices. >> is russia doing everything it can aside from the sanctions and responses that we're seeing to abide by and enforce the deal

because ukrainians argue that you're not. >> those are agreements between parties. and those parties, ukraine and europe. issues on all sides. russia does all things possible to implemented agreements. unfortunately we cannot say the same about ukraine and europe. we need to see much more from the ukrainian side in terms of implementation of the agreement and that can stabilize the situation. we need a safe stable partner. >> is the agreement, to use your terminology, already broken. we've already seen a pick up in violence. you're not seeing enough support on either side. >> it's only a basis for

stabilizati stabilization. >> thank you so much. deputy prime minister of russia. >> closing today's session down more than 2% with japan's mixed wage data contributing to negative sentiment. joining us to discuss is live from the nikkei. over to you. >> yes, good to see you too. data shows that were released today that real wages in japan rose in july for the first time in more than two years. data released by the labor ministry shows that nominal wages were up 0.6% rising for the first time in two months and even after adjusting for price fluctuates real monthly wages in july were up 0.3% from a year ago and that was the first rise since april 2013 when it climbed 0.4%. the figures are based on data from around 33,000 businesses that have five employees or more and higher wages has been a priority for the abe

administration that's been urging businesses to raise wages in hopes to lift the economy and the rise comes as the hikes spread from among blue chip companies to smaller firms after this year's spring labor management negotiations but growth of special payments such as bonuses was a disappointing 0.3% which is far less than some economists expected and may not heed to a much needed boost in consumer spending. that's all from the nikkei. back to you. >> thank you so much. coming up on worldwide exchange, switching on your oven while at the wheel of your car. could that be the future of the connected car? we'll find out as we talk to a major player live after this short break.

pessimism over china's short-term outlook is overdone. they expect to see a pick up over the next six months. joining us is the head of asian pacific sovereigns at fitch ratings. thank you. so this new report comes out and you guys are less pessimistic in

the short-term over china than you feel consensus has become. what gives you confidence that china can do better than people are expecting? >> hi, well i think that growth of about 6.8% for 2015 is more or less baked in unless something extraordinary happens. we point to the relationship between gdp growth and the metric called the credit impulse which is how much extra credit is hitting the economy and if you look at the -- although credit has slowed so has gdp so the amount of credit hitting the economy should deliver a pick up in growth later this year. basically policy easing. >> so andrew when we look at the fact that the stock market has fallen so sharply, that the authorities felt it necessary to devalue the currency and, indeed, to shut the equity market over the last couple of days none of that gives you cause for concern? >> i wouldn't say it doesn't give us cause for concern and i

think certainly evidence of volatility in the chinese economy is coming through and the title of the report is china's new normal slower growth with volatility so i don't want to give that impression but i would point to the signs of resilience in the economy including the robustness of retail sales which grew about 10% at an annualized rate in july which is roughly in line with it's 12 month average despite the volatility in the stock market. the labor market as far as we can judge seems to be holding up and fiscal policy is swinging more into expansionary mode. in the medium term, i think prospects are being reassessed but in the short-term we're relatively confident that a hard landing can be dodged. >> china concerns were amply identified -- amplified by the depreciation. should they use the currency

regime to spur domestic demand and improve the export picture? >> well, exports have been stacked for the first part of the year and that's feeding into some deterioration in the labor market. overall it's a healthy surplus of vacancies over job seekers but it's weakened. in terms of the currency, depreciating the currency probably isn't their number one policy option. i think it's on the contrary probably the 2nd to last policy option just because it would cut across their broader objectives and ambitions to rebalance the economy. but traditionally the government has by jealous of its own balance sheet. so government stimulus is probably the last thing on the agenda. >> andrew, thank you for joining

us today. head of asia-pacific sovereigns at fitch ratings. >> all right. security concerns have been front and center in the connected car space following a number of high prostyfile incidents. the industry continues to push through with a number of products. they have 25 million automobiles on the road equipped with it's audio and connected car systems. joining us is the ceo of harmin international. a pleasure to have you on the show. help us understand the opportunity in connected cars and the role that your company is playing. >> can you come again, please. a lot of noise in this area. >> sorry about that. let's start with the smart car. you're trying to play a bigger role in the space given that you're a leader in automobile

equipment. what are your thoughts on the connected car and the role that your company is playing in this space? >> very good. we just had an investor analyst day in new york city and the theme was about connectivity in the car in the home and in the enterprise. i believe that connected driving is here and they're playing a big role in it. when connected all the functionality in the car without disrupting the safety and also making sure that security is not compromised. so cyber security is going to may a big role and we have been making bigger roads in terms of investing almost $400 million in research last year in connected car and smart audio which is the theme in berlin. >> but there's many players in this space including google.

is the google car an opportunity or a threat to your business? >>. >> google has been a great partner. google and many other companies are investing heavily in this area. it's an ecosystem and we have to collaborate. no one company can succeed alone and we collaborate and it's cooperation and i believe that combined power of ibm, microsoft, google, harman is going to take it forward. they have to work in long-term partnership like we're doing. 5th generation bmw but collaborating with intel and google and microsoft and with $23 billion order book we're so excited that the new technology in cyber security and safety and smart connectivity in the car would have a lot of

functionality which we have been only dreaming about without sacrificing our safety and our data security and privacy. >> at the moment your systems are focused in the cars of three or four auto makers only. or would you rather spread the risk and get your systems into many more auto makers cars in the near future? >> that's a great point you made. traditionally we started with the high end luxury cars. harman has fully penetrated. to grow we had to go in mid segment market which we have. we're very happy the volkswagen growth, toyota, suburu, chrysler, fiat, general motors. they're all our new customers and we're growing and at the same time the market is divided into ultrahigh end with a lot more risk takers and innovators.

t the german car companies have always been and then the entry market of china and india which is really coming up. so we have the spectrum and we believe in scaleability and that's where we're finding growth in the marketplace. what's more important is the millennials. they don't want something forced on to them. they like personalization. what i like to describe as mass customizations. so software, software, software. that's where you might have noticed we're making a huge investment. $1.5 million in buying companies in technology space in israel and united states and europe in customizing safety and security and the environment and ecosystem in the connected car which people are willing to invest which means you buy something as a platform and you can add to it as you go. as you personalize your own

environment and that's the future. >> how do you think spotify, apple music, have changed consumers preferences for awe owe equipment that harman specializes in. has that changed the way you have invested in products in the audio space? >> this is such an exciting area. it's really allowed billions of people to benefit and share the music and listen without really investing heavily and at the same tie we as an industry are partnering with spotify and many of the companies for distribution. we have brought in the technologies and you're sacrificing quality as you digitize so we have invested heavily in technologies. it restores the lost signals during streaming to the level of

cd quality. we invested in cars in technology so all the music coming in the car we can listen almost like an hd high definition audio with restoration of sound quality and the features so it's a lot of technologies going in making it smart and connected. it's music becoming adaptive and music is being personalized. we just launched an award winning product. you can personalize your head phones to your eardrums and you can listen as if you were listening to the artist directly. connected. connected to the world. you can listen and over the

cloud. >> thank you for joining us here on worldwide exchange. ceo of harman international. you can see more of our coverage. head to our tech transformers special report page on cnbc.com. a great page to visit. apple music was tried out by 44 million people in it's first month in july. that according today at a and analytics. that makes it one of the top 15 u.s. smartphone apps even though it hasn't debuted on android devices yet. the ranking put apple music just behind twitter and ahead of snapchat and made it the second most popular chat devoted to music behind pandora but how many users will stick with apple music once the three month trial period ends in september. >> i was one of those 44 million. >> what do you think of it? >> i like it. it's definitely good but the main issue overall is not necessarily with apple music but it's just streaming in general which is when you're traveling in the car or you then get on a

plane and if you haven't already saved load of playlists you're disconnected and the difference of knowing you're not streaming of having itunes is that's always up to date and if you forget to do it then you're on the plane and you're like oh i haven't got anything new to listen to. >> that's why you save your play lists. >> but you have to do it in advance. i like it. >> my biggest thing is the battery usage. you use it for an hour and you're already at 50% of your battery. >> indeed. >> stick around. we'll be back in two minutes. we'll speak to the president of tech giant lenovo about it's new wearable tech device. that's coming up in two minutes.

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