welcome to "street signs" i'm julia chatterly and these are your head lines. a triple warning. bill gross. wolf gang schaeuble and the another point to consequences of low rates as european bond yields flip to negative territory. luftansa shares heading for the nine month low after the ceo steps down in the middle of a turnaround. take it with a grain of salt says tesla. claiming there is no safety defect with its suspensions.

>> the euro is prepared to kick off in france despite wide spread strikes and outbreak of violence between fans in marseilles. a warm welcome once again to "street signs." it is friday. i'm going to gleefully tell you for the final and fifth time this week let me give you a look at what's going on in the equity markets this morning. similar to yesterday. soggy market sentiment. we're seeing the stoxx europe 600 lower so far by 12% today. struggling to find stocks actually holding in positive territory. let me show you what this means for individual markets across europe. the ftsi 100 lower by 1%. underperforming more broadly the german market. it is the banks weighing on the market this is morning.

the auto sector lower by 1.5%. the banks by 1.3%. banks have been a problem this week with lower more than 4.5% overall on the week. and luftansa weighing on the ledger sector in particular too. we had draghi hinting yesterday about the limitations of monetary policy. the need to do more and of course global growth concerns. perhaps also a bit of consolidation of risk sentiment as well this week. now as mentioned in my headlines, bill gross has warned the negative yield bond path is a super nova that will explode one day. central bank's aggressive monetary easing policies have pushed over 10 trillion dollars worth of debt below the zero yield line. highlighting rising concerns over the stability of the world's debt markets. now german officials also

continuing to caution about the risk of negative rates. bundesbank president warned asset managers could become increasingly nervous raidsing the possibility of a sunday hike in risk premiums. after finance minister told the german government thinks low interest rate rates o should remain a temporary phenomenon. and of course he's warned, accused the ecb of fuelling right wing policy in the country. and i was showing you the rate. quite interesting we've now got 15 year japanese bonds in negative territory. record lows for bund yields. the german bund yields three basis points above the flat line as well. so watching that go into potentially negative territory. richard louis, head of global equities at fidelity joins us. great to have you on the show. yesterday i was talking to a guest at this time and he was seeing this rotation and it wasn't what we expect.

out of equities into the bonds as clients basically go we're not going to see inflation and growth improve and some yield is better than nothing. what are you seeing in terms of risk sentiments and equities. >> well we are certainly not seeing a rotation from bunds into the equities. from equities into the bunds. that really would be a capitulation. who would have thought at the beginning of the year that bunds were a buy on year on 40 basis points. so we're definitely not seeing that move back from equities to bunds and i wouldn't advise it to people either quite frankly. >> why? >> bonds are massively distorted by qe. i think the qe narrative has changed in from this year from last year. this is key to me. and bunds by extension.

in 2015 and 2014 qe was a good thing for financial assets. printing money and buying financial assets good news. that is not the case anymore. what's clear now is that qe has reached such extremes that people are now really questioning whether it is a good thing and you see that from bill gross and others. >> -- stop though does it? if you look at japan, the uk. results of unsesht over recent weeks. mario draghi yesterday saying we're struggling here. we're at the limits. that kind of arguments. and in addition to what wii see in japan actually that yields can go lower. and bonds can go higher. >> no sign in policy makers in europe. that doesn't mean it is good news. doesn't mean it is the right policy and doesn't mean it is good for financial assets from this point. i think qe gunsh-- well obvious

zero rates offer support for the financial markets. they cash in the shares and put the money in the bank and think what do you do next and dragged back into the equity market quite shortly. o zero is the support. and negative interest rate is pretty bad news. and that is what the sector is telling you and if it is sustained for any length of time it will put large traunches of the european insurance and banking industry into serious difficulties. >> and that in that kind of environment equities are going to outperform. [ sounds like a risky situation. >> my own view in this environment equities are now a very broad long-term trading range. i think if big qe expansion that we saw is donor. for equities. return to alternative assets do

you want to buy bonds on a negative yield? no i don't. >> close to all-time highs. elements of valuation concerns. they are concerned about the possibility of a draw down particularly given the last 12 months. is it now seven draw downs more than 5%. two draw downs august. december last year more than 10%. how concerned are you. >> the u.s. equity market has once again con fofounded expert. it is up and everything else is down this year. and in dollar terms it is up more. it's done a phenomenal job and there are very good reasons why it's done that. for the years -- equities is same as global ex-equities. and in a trading rage. is there a big fall? i think requires a bit of an accident in the bond market. because with these zero bond yields were very low bond yields in the treasury market that

places a floor underneath what can happen to u.s. equities. >> you're not giving me much confidence about how investors make money but we can come back to that. let my give you a look at some of today's biggest stock movers. the german airline says the cfo's decision was her own. just a month after luftansa had reached turning point in efforts to trim costs. airbus is set so sell stake in dassault. putting its 9% stake up while dassault aviation hopes to buy 5.5% of it's own shares.

>> and and puegeot told a french newspaper the family should move decisively to boost holdings. >> tesco has cree agreed to sell its take. britain's biggest retailer also announced plans to sell its giraffe restaurant chain. sale includes 54 stand alone restaurants and three restaurants within tesco stores. sticking with the sector. seanceberainsbursainsbury.

euro 2016 kicks off tonight. most will be looking forward to the football. others focused on security. >> it is one of the biggest sporting events france has ever seen. more than 2.5 million ticketholders are expected to attend the european football championships which begin on friday. millions more tourists are expected to travel to the country during the month long tournament but the championships come at a time when the country is at a state of emergency amid heightened terror fears. more than 90,000 security personnel will be on hand.

that includes more than 42,000 policemen and 10,000 showoldier. before each match officials are expected to prepare a threat assessment and stadiums will be patrolled by government forces. one of the count rice largest fan zwoones with a capacity of 90,000 people will be set up underneath the eiffel tower. it will also have the world's largest outdoor screen. but despite security concerns french citizens remain defiant. according to a poll last week, 64% said they were against the scrapping of any fan zone. phil hahn, cnbc london. >> a quick break but coming up on the show louisa is still soaking up the raies in monaco. more after this.

boris johnson came under attack from all sides yesterday. nicholas sturgeon saying the former london mayor was only interested in david cameron's job. brushing off the accusation, mr. johnson said the lead side was adding hope over fear saying they could prosper as never before outside the eu. the editor of the gloom and doom report saying a exit from the eu

is a risk britain should be willing to take. >> i happen to think that brexit would be bullish for global economic growth. because it would give other countries the incentive to leave the badly organized eu. >> richard louis still with us. richard. is it a risk britain should be willing to take? >> well first of all i have to say there are many opinions in fidelity and -- >> [ inaudible ]. >> -- position is quite leclear. fidelity has many clients in uk and europe. and whatever the decision we'll deal with it. it is not a big deal for us one way or the other. that is it. brexit is it good or bad? >> well i'll give you my thoughts on what will happen to the markets in the event of a

remain or a leave. and i actually don't think it is a big deal one way or other for markets. i think sterling has taken on board the weakness it would take on. in the event of a brexit maybe it will get marked down on the day but i don't think much lower than it is today. for the euro might be a little more worrying because there may be questions about that but if the euro comes under doubts we will undoubtedly get a reaction from mr. draghi who is demonstrated that he will do whatever it takes to keep the euro together. that is the currency side. on the stock market side i have to tell you many of our -- in the uk are getting rather bullish about uk stocks. many of the domestic stocks have been marked well down and they quite like them as a buy. that is on the equity floor. and fixed income floor and it is

completely different. because they are glass half empty fellas and they any there is gloom and doom. by own view is it is not a disaster if for equity markets or the currency if brexit happens. >> even if a brexit takes place given the valuations at uk equity markets at this moment they think this is an opportunity to buy. >> that is the way equity fund managers are leaning. >> hedged or unhedged. >> well. i think -- what i've just said about sterling. i don't ca i don't think you augment to be selling sterling here. my own view. >> bold call at this moment. talk to me about equity market correlations. back to the financial crisis and i saw how highly correlated risk sentiment was. i see the same with regional equity markets today. what does that say about sentiment at this moment?

>> risk on risk off correlations have reappeared in the equity market. that weren't there in tow 14 in that 2015 in that long run. but again confirms the change of environment. and risk on risk off behavior results in a bipolar correlation to the market. the two camps are negatively correlated and as a active fund manager when risk on risk often appears you need to be able to identify who's in what bucket and which one you want. risk on risk off is there i think because we're in this run and i don't think it is going to have to go. >> how do you get the balance right here? >> well if -- within a trading range environment the ideal successful strategy in a trading range environment is to move towards a risk off bucket as you approach the top of the trading

range and the risk on -- >> come on. >> if hedge fund managers can pull that off they are wizards. and many try and many succeed. >> timing it perfectly. etc. etc. >> that is the idea. >> there is a story yesterday about commerce bank allegedly looking at potential vaults they could store cash in because they don't want to post excess reserves back to the european central bank. there is a story there about negative deposit rates but there is also a story about holding cash here. how much cash should investors be holding? given everything that you have said about range trading in equities. don't touch bonds. it is tough. >> it is tough. and make no mistake about it. after the bull run we've had, particularly bunds. the future returns sfrabl financial assets are not great in the medium term. you can sense that.

so how should you treat cash? if i'm rate and we're in a trading range you have to try and top and tail of it. wi and hold not going to be the winning strategy. it will give you an awful lot of volatility for not a lot of progress. >> richard louis head of global equities at fidelity. now world entrepreneur of the year forum is still under way in monaco. now in its 16th year. culminating in a top winner this weekend. ceos of the hottest new upstarts and also more established players from the world of cloud computing. louisa is in monaco. i was hoping to get a view of the ocean there yesterday behind you. we didn't get it. now you are there. it is beautiful. and you are looking tan. -- [ inaudible ] >> exactly. >> actually very very hot here. super hot julia but we're really

enjoying it and also specially because here at the event you talk to both entrepreneurs just starting up as you say and people such as yourself. and you have got --. tell us about this space and why it's interesting at the moment. >> there is a big move to the cloud. and this really started in ernest about 10 years ago. basically people are putting more and more of the computing into these mega sized data centers which then provide all the services you use every day on your smart phone or computer. and it's already happened for the computer products and enterprise becoming software services in the cloud as well. >> i know you all sit on the board of the open compute --.

>> there is a lot of open source in the cloud for sure. the cloud is actually built upon lennox and open sis points. what we're building is the networking component that ties the computers and the cloud together. and most of the large centers use our networking gear to connect their hundreds of thousand of millions of computers to provide the services they provide. >> and what are the service drupgszs that are happening. we were talking about dprupgs at the e. >> the fundamental disruption networking was one of scale. and traditional networking solutions were not designed for that. so we build a product that was specifically targeted for this large cloud business. >> and then you have cisco as well where they have launched a

patent lawsuit against you and they allege that you are stealing parts of their technology essential. >> cissokho is the dominate vendor in the market. s cisco. some of the protocols are bits patented by cisco. and they are going after us out of the whole industry. >> how long is it going to take? >> it is just in the middle of it. this may go on for years. >> your clients include facebook. chicago boarded offings ones exchange. microsoft. other large clients. are they changing the way they are dealing with cloud now? because they have to because everything is just getting so much bigger? we're seeing exponential growth with regards to user ability zblch the important thing for

the people who have built cloud data centers is automation. everybody want toss minimize the . this only works with complete automation front and back. and our network solution is part of that. and compared to legacy networks where you have lots of network engineers running around in the cloud it is all automate. >> coming back to disruption, when you look at how much technology is changing and how quick, do you have cells from within the company that work to try to figure out how to disrupt from inside the company? or do you send people out to see what's going on around you and then come back to the mother ship? >> our strategy is pretty much built what our customers want us to do. we do whatever microsoft and others tell us they need and that is a very predictable way to build products but in terms of bigger disruptions all of

this artificial intelligence machine learning starting now that it is getting to the point where apparently computers can do things better than humans and there is endless applications for this. i would say the next big wave in silicon valley and whole world is actually artificial intelligence. in which regards. >> for example. certainly people talk and use cell phones and once the computer is good enough to understand what you are saying you don't have to type anymore just as an example. >> o counter fofr sun microsystems as well. when you want to be agile in the changing environment. do you need to stay small? or can bigger companies also have that agility. >> i will say it is up to the company. but companies like google and facebook today doing a much better job focussing on the future and what they need to stay ahead than in the past. so people who are future

oriented even as the big company can seed very well. >> thank you very much. i hope you brought your swimming trunks for a little dip later on. that's it here from monaco julia. we'll bring some sunshine back to london for next week. >> are you going to stay for the weekend lou are are you going to dock bam. >> i was going. but plans changed and i'm coming back. but i should have. >> and in case any of geography teachers are watching i know med sea is not in the ocean. that was a big fail. -- ♪

welcome back to "street signs." i'm julia chatterly and these

are your head lines. a triple warning. bill gross, wolf gang schaeuble and jens weidman point to the consequences of low rates. luftansa hits some turbulence with shares heading for a nine month low after the cfo steps down in the middle of a belt tightening turnaround plan. >> take it with a grain of salt says tesla saying no model defects. the euro is prepared to kick off in france. >> welcome back to "street signs." let me give you a look at the u.s. futures. obviously we've got a few hours until the open of the equity markets there but pretty much following the tone that was set

overnight in asia and here in europe this morning indicating at this point 58 points allow for the dow. the nasdaq 25 points lower. relatively unchanged for the s&p 500. as i mentioned a bit of time until those markets open. time for change. let me give you a look at the european market as well. we're a touch lower than 30 minutes ago. 1.1% for the ftsi 100. similar story for the spanish the french and italian markets. the german also lower by 1.6%. the autos. the banks in particular. the cyclicals that are weighing on the market. softness in oil as well after the 1.3% decliechbs we saw yesterday. still up 4% for the week in oil. we'll have to see what we happens with that baker hughes oil count later today. >> in corporate news stateside

tesla responded to reports of suspension issues saying there is no safety defect and the u.s. national highway traffic safety administration has not opened any investigation. the nhtsa said thursday it was reviewing complaints that the vehicle's suspension control arms tend to break, potentially leading to the driver losing control. a federal watchdog said it was also looking into whether tesla tried to cover up the issue by asking clients to sign troublesome non disclosure agreements. and verizon's 3.5 billion dollar offer in the second round of bids was at the low end of the spectrum according to cnbc sources. despite the obvious synergies the wireless carrier has with yahoo's assets. other offers have come in around $5 billion or more. yahoo is currently drafting a short list.

advertising agencies for the first time favoring instagram over twitter for social media campaigns. this according to a survey which reveals problems for twitter in an area which until now was a bright spot for the networking service. i mentioned this earlier. it is friday. u.s. baker hughes oil rig data is set to be released today. the data at the end of a week where oil crossed a $51 for the first time since july 2015. analysts are expected a return of modest trading activity after nine rigs were added last week. trouble continues in nigeria. militants have blown up an eni pipeline. after militants vowed to scale down. james is the co-founder of an investment group and joins us

now. you said of this actually you are surprised something like this hasn't happened sooner actually given the tensions. >> yes that is correct. i believe nigerian government has missed many, multiple opportunities in resolving the issues in the region. the local population in niger delta has been underserved. and has been pulling at the shortest end of the stick for quite some time now. initially they were able to ease some of the problems and some of the tensions through the p.a.p., the president amnesty program. the program initially awarded amnesty to some of the militants that were involved in previous up rest. and through the program they were able to ease the tension. but they are never -- they actually never solved the problem that caused those tensions. and this pretty much calls

for -- yes. after left power and came into power the program came to an end and once again with the decline oil prices and once again we see unrest and spreading because the locals are not really happy. >> you are painting a tough picture of a situation that seems to struggle to improve at least in the short-term. how much of the premium that we've seen priced into the oil markets over recent weeks do you think is actually down to nigeria? and the cuts that we've got there. and given what you just said i guess you are suggesting it is going to remain. >> well i think much of the -- i think there is a small chunk of it is due to the nigerian situation. much also is due to added optimism in the u.s.

it is summertime. and i think all has bottomed out in the part of the year and the weaker players all have been liquidated or are not part of the equation anymore. and what we will see is prices will consolidate more the remainder of the year. and we'll see oil reaches $70 per barrel say by 2018. >> interesting. benefits in the short-term. because if you can't get the supply you want from nigeria you look at alternative sources. is it iran basically that benefits? they also benefit on the opec side as well. >> iran has been underdelivering. we all thought that iran would be able to ramp up production. but reality is it will take quite some time to build

infrastructure necessary needed to be able to have a major effect on the oil prices. and of course you have the increased demand in china. and we see that also in the manufacturing we see that u.s. highest number of suv sales in the year. so i do believe that currently the nigeria delta crisis is -- the crisis nigerians is doing well for oil. >> but there are other factors. >> yes there are other factors definitely. >> james. great to klatt with you. now the war of words between donald trump and hillary clinton has intensified with the two exchanging insults on social media. after trump fired a shot at president obama's endorsement of clinton. clinton responded with a simple

but blistering delete your account. actually donald trump's response i thought that was equally swift. how long did it take your staff of 823 people to think that up and where are your 33,000 e-mails that you deleted? and of course that spurred a whole lot of talk about who knows where the delete button is and who best knows where the delete button is. and tom democrats are rallying around hillary clinton now that she's the party's presumptive nominee. bernie sanders continues to press ahead, despite pledging to work with clinton to defeat donald trump. nbc's edwards lawrence joins us in washington to discuss these things. and we were talking about this and whether or not hillary clinton needed to drive the news agenda rather than just reacting to the things that donald trump is doing. particularly on twitter. is this the moment? >> well -- and it was a very good week for her and that is something some of the experts say she needs to do. because donald trump has dominated the news cycles up to

now. all of this means and the endorsement means that senator sanders has no way to win the nomination. it also means that hillary clinton can focus 100% on the republicans. and she's riding that wave of momentum. said she got two key endorsements actually. the first from president barack obama who says he's never met anyone more qualified to be president. the second endorsement then came from massachusetts senator elizabeth warren. that is poerimportant because s of us that snarlt would be a good pick for the vice president on either side. and --. joe biden hinting he would also like to have hillary clinton as the president of the united states. still senator sanders won't throw in the towel but after the face-to-face meeting at the white house, sanders did hint at party unity. he will though continue campaigning. the last pliemry is here in

washington d.c. sanders will continue d.c. tryi votes for that. president obama said that he will start campaigning for hillary clinton starting next week in green bay, wisconsin. julia. >> thank you. now a hollywood movie is being made about theranos. the blood testing firm was once worth $9 billion before coming to knees amid accusations of customer fraud. jennifer lawrence will play ceo elizabeth holmes who topped forbes list of richest self made women last year. now a quick break. i have to get my teeth back in so i can speak properly. as euro 2016 kicks off in france we find out if economics and financial muscle can predict the winning teams. stay with us. we're back in two.

former football champion pelee has raised over $5 million. it was a white glove auction where every lot was sold. >> he's known to many as the greatest footballing legend of all time. at aged 75 pele still holds the guiness record for goals in a career. now 2,000 pieces of memorabilia went under the hammer. >> something for everyone. fantastic history. and certainly most important sporting event because it is hifz changing hands. >> some proceeds will go towards the largest children's hospital in brazil.

>> going to help everybody. that is the best way i could help a lot of people. >> because it is pele he doesn't have to wear gloves. >> the only player to have won the world cup three times and given his very own jjules space rimet. perhaps the most nostalgic is this 19 7 photogra7 photograph. that is of course the late muhamed ali.

>> that is exactly where where he go now. thousands expected to fill an arena in louisville, kentucky are where they will say goodbye to their hometown hero muhamed ali. a funeral sara? or a celebration of life? >> good morning julia. as you mentioned in just a few hours the doors to this stadium behind me will open and some 18,000 people will file in to say goodbye to muhamed ali. according the his advisors he had helped plan the funeral over the course of a decade laying out his desire for it to be open to the public and for people of all faiths. it will begin with a slow procession through the streets of louisville. a final trip past his childhood home and the muhamed ali center. he'll be eulogized by former president bill clinton. comedian and friend billy

crystal and broadcaster bryant gumbel. tickets were handed out earlier this week in less than an hour. for those who weren't able to get a ticket or make the trip here to kentucky the service will be live streamed online julia. back to you. >> thanks so much sarah. euro 2016 gets under way in paris this evening with 24 teams battling it out. wilfred frost is looking at another battle as two sportswear giants go head to head. he joins us now from cnbc hq. >> thank you for letting me do a hit from the u.s. on something happening in europe. awe passion area of mine. i appreciate it. today marks the european soccer championships. indeed just this week cristiano ronaldo was named by forbes as the highest paid sportsman in the world easterning $88 millio

year. over 30 which is in enkodorsemes highlighting two brands he's sponsored with. and the number two was lionel messi. adidas has the biggest presence, sponsoring 37% of the teams. they also sponsor the tournament itself. followed by nike. 25% of the teams and indeed soccer one of the new sports where adidas matches nike in terms of scope. both had global soccer sales of $2.2 billion in 2014. and cristiano ronaldo's nike deal dwarves all of the other european players. $22 million per year. rooney, eeb habraham vich some e

ibrahimovic. nike has more followers on twitter and facebook. but adidas reportedly has better engagement. both will no doubt be impacted by how well their players and their teams do at the tournament. on that note hosts france go off as fairs at 3 twun followed by germany and spain. and england are --. and check out austria and wales. wales 80 to 1. both performing very well in the qualifying with strong defenses and one or two attacking style play ores like adidas's --. france versus romania is the first game today at 3:00 p.m. julia. but i know you will be tuning in tomorrow at 3:00 p.m. when england kick off against russia. >> i was writing that down actually because i didn't even know. who do you think is going to win overall? >> i can't look past germany.

i france are the hosts but germany is very good and they always deliver in the soccer pitch. >> as wilfred said and it is interesting. france may be the current favorite according to the bookmakers but a recent survey suggests current champions germany are set to lift the trophy. ian bryant joins us now. we were just talking about this off camera. great to have you on this show. germany's favorite according to 9 out of the 13 countries that you surveyed. tell me what's going on here. >> yes. well when we actually asked who is going to win 9 out of 13 said it is germany. >> current champions. >> current champions? >> current world champions but european champions. >> i know. >> ah. spain is the most expensive team, followed by germany.

so which one is going to win there? so you end up is this super team thing going on. >> efficiency measure then. >> oh yes. well marketing measure let me put it that way. it goes even further than that. -- said i've never seen a bag of money actually score a goal. so we went to people look are you actually prepared to back up your teams. would you prepared to give up 1% of your income for your team. yeah. would you be prepared to give you are your mobile phone for a month. >> no. >> well yeah. so we figured out who are the super fans. turkey. >> turkey? >> turkey turkey turkey. and around half of them said yes they would give up a the % of. >> -- to give up in order for their team too win. >> so we went to the colleagues in turkey.

and said --. just imagine that your team got to the finals. and you could buy a ticket. and would you be prepared to spend money too. and basically haid half said no i can't be bothered. but around 10% from turkey said yeah i'm prepared to pay. >> sure. hang on. certain proportion of the population would be willing to give up 1% of their annual income but they wouldn't be willing to spend 200 euros to go and watch their team in the final? something. >> it is part of the -- what people say they will do and what they will actually do will be quite different. >> are you saying people lie? >> well i think sometimes what they say they do and when actually reality comes around they find it a bit more

difficult. >> -- phone. >> exactly. giving up the mobile phone. for goodness sakes who would ever do that of course. but there is a partly serious side of this. for example when you say yes i'm prepared do it and would you actually be? and you turn it onto the sorts of things which i'm concerned with which is how people actually think about money. what people say they do and what they actually do can be quite different. and we use these analogies from sports to demonstrate how difficult it can be, for example, to change any tension into actual actions. so whilst you might think this is a really great idea. when you actually do it it is -- >> what about the cheapest team then? who's actually spent the least money on their squad? because, you know, i kind of like the underdog. who's underdog here.

>> hungary and northern ireland and albania. but, you know, just because you haven't necessarily spent the greatest amount of money or the transfer value with the players in the team doesn't mean that they are not in with a chance. part of the beauty -- >> leicester city. fighting spirit. >> well you have got that of course. i they were around a hundred odd million. so compared with some of these others leicester city is reasonably expensive. on any one on one competition against say spain or germany they have a one off chance to actually win. you wouldn't expect it repeated if you played 10 times in a row hungary would beat germany over the whole tournament. but in any one game -- and that

is part of the fun of the tournament. >> what about the importance of a key player like ronaldo. it was interesting. you just said the total squad value of hungary's team is 28 million euros? >> -- yeah. >> and then if i look at cristiano ronaldo he's worth 104 million euros. like four times what the entire hungarian team is worth. >> okay. so --. imagine, god forbid that mr. ronaldo picked up an injury. or in the wales case garrett bale for example. if there are a spread of players over the team then you have a diversified portfolio. and that is part of the reason why the higher value teams if i

can put it that way have a greater opportunity. they have diversified their risk virtually. if we think of the wales example. god forbid garrett bale picks up some sort of injury. because the talent. and that's part of the reason. you get what you pay for at least in these competitions. >> -- [ inaudible ] ian bright. senior economist. i think i can hear my brother and dad saying that. to football to -- cnbc takes a look at the industry leaderboard. >> it is fast. it is intense. and sometimes violent. online battlefields like this one are usually male dominated. but no men on this counterstrike team. sabrina ung is a member of one of the few all girl gaming teams

in singapore. and as she points out it is not all just fun and games. >> it gets really stressful sometimes with work and school. but you just find time to do it because you know this is going to be your passion and really a hobby. >> her passion is giving hope to a pc industry currently getting outplayed by mobile devices. global shipments of personal computers crashed almost 10% in the first quarter to the lowest level since 2007. but there was a bright spot. growing demand for more powerful and more expensive gaming pcs. a lot of it coming from asia. >> and admitted this alone isn't going to turn around the pc industry overnight. however it is still a very growing part of the market. as part of the market getting a lot of excitement. if you look at things like the comp you techs pc show in taipei last week a lot of talk was

gaming. competitive gamers on stage. and people overclocking their pcs with liquid nitrogen. you know just all of that enthusiasm and energy is really being powder into in this thing. >> it is not just hardware. you also need online platforms to lik players across the globe. and that is what singapore based -- does best with a valuation of more than $3 billion and it is turning to less developed markets to level up its business. >> i think the pc game business in greater southeast asia will continue to grow at double digit rates for the next decade. it is 1.6 billion today. we see it approaching 3, 4, 5 billion of size in the years to come. i think indonesia has the most potential because this is a wonderful nation of 250 million people that have been given limited localized entertainment options over the preceding

years. and we see this improving day by day for us. >> china's 10% has spent heavily on gaming at home. a market some analysts believe will top $25 billion. war craft the game inspired movie it helped produce with legendary and universal pictures is seeing record breaking ticket sales. zblm and that is it for today's show. i'm julia chatterly. "worldwide exchange" is up next. have a great day and a wonderful weekend.

good friday morning. investors on edge. oil prices dropping overnight. yields falling to record lows and global equities selling off. a complete market round upcoming up. >> new this morning. tesla says there is no safety defect in its model s or x. this after u.s. safety regulators raised red flag and the wait is finally other. euro 2016 starts today. pride on the line. and big bucks at stakes for athletic wear makers adidas and nike and others. friday june 10, 2016, "worldwide exchange" begins right now ♪ party rock isth