. good morning everybody. welcome. you're watching street signs. i'm louisa boej son. airbus shares descending after british authorities open allegations of fraud, bribery and corruption related to jet sales. shares of -- surging after the dutch company delivered the second quarter profit beat and disappointing trades out of china. fall by more than 12%.

that's the biggest decline since february. good morning. welcome to street signs. glad you're with us today. fresh start to the week off the back of the figures we got on friday. what a blowout. what a blowout. i'll recap those details in a minute. stock share of 600. the broad-based look higher shy of a half percent. on the open, we have a couple of points higher. main european a similar story. the set rah dax, the ftse. only denmark and portugal trading slightly off. when the comes to the sectors and the -- auto is higher. basic resources up by 1.5%.

shy of 2%. to the downside, some selling and food and beverages and health care. now, shares of -- surging until the dutch mail and parcel delivery recorded second quarter profits. 37.8 million. now delivery service group investors shrugging off a slight miss in revenues. trading up by over 10% at the moment. barclays trading higher too. it raised its target price 22% to 550 pence raising the outlook to outperform from a previous -- shy of 4% at the moment. deutsche bank in there as well. deutsche bank and -- both been dropped from the stocks 50 index of european blue chips starting today due to exit rules. shares in both companies

slumping to record lows post brexit and shed 50% of their value year to date. meanwhile, the italian banks is leading to big gains for some of the foreign peers out there. reportedly set to pay 250 million euros to banks helping to arrange capitalization rescue plan. according to reuters. the italian lenders among the highest fee payers in europe. shares having lost 4/5 of their value, trading higher this morning. >> told another newspaper that state intervention is not required -- the government will instead be focusing on measures designed to support restructuring the lenders. this after the ratings agency put the country's credit rating on review, citing uncertainty over the proposed constitutional

referendum. the italian banks this morning, all of them we're looking at in positive territory higher by 1 or 2%. almost 4% for some of the ones -- keeping in mind how much they're worth per share as i always like to say. i'm i mentioned the payroll data, kicking off this fresh week. on the back of strong data on friday, the u.s. payroll number for july crushing expectations coming in at 255,000. the consensus estimate was for the u.s. economy to add 180,000 jobs. the headline employment rate held steady at 4.9%. hourly wages moved higher inkreegs a pace of 2.6%. keeping this in mind, because a strong u.s. jobs number, investors to revise up the likelihood of a federal reserve move. they could be hiking interest rates in the coming months.

jerome powell, argued that there's no immediate impetus for the fed to raise rates. he says, quote, with inflation below target, i think we can be patient. the fed governor warned that he sees a growing risk that the u.s. economy could remain stuck in a low growth track. we'll talk about all of this. our international cio at jb morgan. good morning, nick. good to have you with us. can the board afford to be patient and not hike? >> there's two sides to this. on one side, you have the employment side, that's strong. this was an epic number. jobs created. you've got people working longer hours for more money. the other side of the coin is inflation. or disinflation. even in the u.s. you've got inflation stuck at pretty low levels. that keeps the fed on hold

probably until december. >> but we don't fear -- i think we're moving out of that type of potential environment. >> when you look at growth, though, it's still pretty tepid. think of that gdp release in the u.s. just over a percent. what do you tell your clients at the moment? can you still buy u.s. equities given the fed that could be hiking or are we thinking we should be repositioning ourselves to get into european equities? >> i would leave equities at -- that's your bigger opportunity. again, think from the fixed income perspective. the enemies are lots of growth and lots of inflation and they're largely absent. when you look at fixed income, arguably it's what type of bond. things like u.s. yield, they're pretty good. a spread close to 6% still. >> but u.s. debt is still warning us that a recession could be around the corner.

>> where do you want to be if a recession is around the corner? >> of course, in that recession resiermt, fixed income is your king. >> will continue to be by the looks of things. >> let's talk about the bank of england as well. we came through last week, surprised many of us. doing a lot more than what was anticipated. i wasn't expecting them to come through -- the market wasn't either. do you think it will make a big difference? will it see it through? >> it should be. the bank of england with behind side did exactly the right thing. it eased policy and took out an insurance policy. easing policy is powerful. that quarter of a percent rate cut adds to economic growth. when economic growth is hovering around zero, that's worth having. the other thing they did through that term is that -- that banks

have to pass a lot of the rate cut on and it helps protect bank margins. the insurance policy is for -- >> is it going to be -- are we going to see it in corporate -- by the looks of things when you look at the -- the forward looking business can have -- measures are still low. is anything going to change as we were talking about last week as well or are businesses going to say article 50 hasn't been implement implemented, we're going to sit tight and not see the big investments being fed back into the real economy and the uk. >> i think it feeds through actually fairly quickly. you're now paying less in, say, a mortgage. if you think in terms of businesses, they're accessing finance two ways. something like 70% of businesses access the low market. loans have just got cheaper. then the other components of uk

plc will access bond markets. that's the interesting one when you look at uk corporate yields, they're the lowest since 1899. remarkable, but of course, the bank of england are going to drive those yields even lower. >> nick is here for a while. by all means get involved. se send your e-mails through as we like to say. find us on street signs europe@cnbc.com. you can also find us on twitter. i'll log on right now. you can find us on twitter. am i the only one who can't remember any passwords any longer. at louisa bojesen.com. coming up, we've got a lot on the program. we have thailand saying yes to a military backed constitution change. what could this mean for the land of smiles?

we'll find out in a couple of minutes. we'll also be talking about oil, effects markets and more on travel later in the show as well. [car horn beeps] [texting keystrokes]

welcome back to street signs. i'm louisa bojesen. akihito has said ongoing health issues could make it difficult for him to carry out duties. hinting at possible abdication in the future. the emperor expressed concern as his condition becomes serious. china's exports and imports fell in the month of july. demand remains sluggish. kerry kang is with us in hong kong. good to see you this morning. talk us through the overarching

message that we should be taking way from the data. >> exactly. thank you very much, louisa. it was a pretty rocky start for the third quarter for china. both exports and imports falling more than expected the past month. we're focusing more on the bigger drop in imports this past month. down 12.5%. which is the biggest drop since february. we did -- it did come above the market forecast. we did come in higher than the month before. but still, this can be explained by the bigger drop in imports as well. markets participants are focusing on this drop as well. attributing some of this to the drop in oil prices. slump in imports is exaggerated due to massive flooding that impacted the slow demand and adding the weak data will likely

mean -- government policy will remain accommodative for now. we're going to keep doing the health track of the chinese economy. more economic data is due out this week. retail sales as well as inflation numbers. as for the market reaction to all of this, there wasn't exactly a market reaction to the weak china data. but it was more like a cheering on the u.s., the strong u.s. jobs data. japan leading the gains. but we're all -- across the board. the tokyo markets found comfort with relatively weaken yen as well. it stands at 1 or 2 point level. with a dollar pulling away from the three-week high against the yen. boosting some of the big exporter names in japan. over in south korea, s&p has upgraded the long-term credit

rating from double a minus to double a. so the market higher by .6% on this monday. louisa. back to you. >> sherri back to you. sherri kang joining us out of singapore. now a referendum on a new military bakd constitution has been approved by thailand. officials say it paves the way for a general election as early as december of 2018. more on the story from bangkok. >> the dust is slowly settling on sunday's constitutional referendum here in thailand. the unofficial tally with 94% of the votes counted. 60% of thai voters approving the referendum on the surface of it. it looks as though the new constitution, the new draft constitution will crackdown on corruption. the many analysts fear it will strengthen the de facto

unelected -- this looks as though it will be a vote for stability, for can have dins and predictable. we saw more than 1% rise in stocks. many investors do believe that the political unrest and the uncertainty will not be over until we see the final result of the election that is due in late 2017. what investors really want to know now is clarity on the roadmap toords the democratically elect d government here. cnbc bangkok. the russian energy minister, alexander novak said that russia sees no ground for new talks on freezing oil production, agoing that prices are, quote, at more or less a normal level. still he added that russia remains open to and is ready to discuss this. meanwhile, oil slightly on the rise today.

lifted by reports -- venezuela, ecuador and kuwait. -- price discount, they both weigh on markets. crude now $42 per barrel. oil and gas analyst joins us is morning. good morning. >> nick garthside is here from jpmorgan asset management opec members talking about out put. is anything going to come of it? >> i doubt it. you won't see a massive change from when they spoke earlier. the talks have been derailed from saudi arabia suggesting they wanted iran on the table. has that changed? i doubt it. if it has significantly increased, it's close to -- per

day. [ inaudible ] iran doesn't want to stop at that level. iran wants more optimal level. that's not going to change between now and september. even though november annual, bi-annual meeting that opec is going to have, i doubt they will have any joint decision once again to curb the output. i also believe that -- quota without a cap and vice versa is not going to work. they have to happen at the same time. for that to happen, you have to have all the members producing at optimal level which isn't happening now. >> i'm trying to think of the last time that happened. quite a while ago. >> quite a while ago. we have a lot of destructive opec countries right now. it's not going to work as long as the countries are having outages including libya to venezuela production is declining. they're more desperate in having a cap. it doesn't really mean that all of them will agree.

especially saudi arabia. >> i thought it was interesting, the russian energy minister when he was saying press is normal at the moment. they're okay. they feel okay. am i wrong in reading this into $40 per barrel oil? >> in a way they feel okay. even if they're not okay, they're not going to show -- not going to talk about it in the media. they're looking at $40 in terms of the -- in terms of the budget. as i understand, to be honest, if you look at the oil production, it has gone up. it's still going up. why? because depreciation has helped them a lot this year and last year. >> what i hear then is you've got lots of -- when you look at the demand side, it's likely to be weak. oil is stuck where it is for a while. >> unfortunately, the way -- except demand, i have to say, has been little bit

disappointing in terms of growth. it's been growing but became too bullish early in the year. february, march data was quite strong and they started making slightly more bullish comments on the month. the demand hasn't been that strong in terms of what's expect add and what is the truth in terms of the growth. what's happening markets that rallied on the back of that, it's now trying to correct itself. >> how about -- counts in the states? we get phenomenally excited at counting rigs. what is this picture showing us in terms of what we should be setting ourselves up for? >> oil markets is one of the most fascinating. it's a jigsaw puzzle and they're continuously changing. the rally in the first half of the year led to a lot of producers to hedge at the back end of the curve. that has led to a lot of the -- feeling comfortable, not just having their costs coming down

but bringing some rigs back online because they're a little bit better hedged than the precarious situation they were in 2016. >> you were pointing out as well that the divergence between emerging market flows and oil that we've seen of late, that it isn't anything that's particularly new. >> that's right. one of the big differences this time is as oil recently collapsed, oil valuations stayed at robust levels. when you look, the company level or the country level, actually done a pretty good job of adapting to oil at these levels relative to the first oil shop when they hadn't done that. they were used to oil at $100 a barrel. >> oil dollar correlations? >> this is interesting. as it went to -- of course, we saw significant influence of dollar. now, it is back to nothing.

i'm not a big believer in dollar continuing to have a strong correlation. but in the recent times, especially around the fed decision, every time they decide whether they want to raise rates or not, brexit, we have been shocked -- we will see oil dollar coalition come and go. for that reason, i also believe that going towards the end of the year and the rest of the year, we believe that drop in oil price may be short-lived. it may not remain at the levels we're seeing now for a very long time. >> we talk a lot about supply growth at the moment. but demand growth -- you say demand is going to pick up even with indications that the economy in patches at least, in large patches is slowing. >> absolutely. in china, it remains that. we haven't changed our pru sumgss for that.

this year and last -- they have to revise it back. that doesn't mean that the demand is not there. growth is there. 1.1 is not a small number. that's why the oil price correction is -- like the rally was too quick too soon because of the last part due to financial investors. if you see the financial investors numbers data, you can see how much of -- how they've come down by almost by $3 million -- brexit. >> is this going to translate into the oil services companies and the big oil majors out there? are we going to see buying into those companies? >> been short term movements in a lot of those stocks. but i think for me one of the interesting takeaways here, actually, it's global gdp growth. when you hear this analysis

here, ultimately, if that stays at these levels in and around a couple of percent gdp growth a year, ultimately, you don't get the demand pull through that lifts oil higher. >> do you think oil could be whereby the end of the year? >> i think oil might still have a little bit downside. not much. we're in a mature market. we don't have the shock of we don't know where the u.s., how much u.s. production is going to be a shock. we could probably -- eventually towards the ended of the year, prices should recover towards 40s to 45ish. we think prices will recover to 65 by next year. >> fantastic. brillia brilliant. i see e-mails and tweets popping through as well. keep them coming through on twitter at louisa bojesen on e-mail. street signs at cnbc.com. thank you for being with us. starting off our monday abstract desk and oil and gas analyst. thank you to nick as well.

international cio at jpmorgan asset management. let's take a closer look at the stocks. it's raised target price by 11% to 56.5. analysts at the swiss bank are upping their -- from neutral to outperforming. air france traffic numbers. declining by 0.6% in july on the annual basis as the airline was hit by strikes. solid demand helped to dampen the decline. launched a formal investigation into airbus's use of consultants. the probe based on allegations of fraud, corruption and bribery in the civil aviation business. they'll continue to cooperate

with investigators. history was made in the golfing world as american golfer jim furyk got a 58 at the travelers championship. he's the fir ever player to shoot a score that low on the pga tour. history of a different kind is about to be made when he becomes a manchester united player for a second time of 105 million euros. the italian club bought pog ba for 800,000 pounds in 2012. they'll be returning him for 89 million pounds. the french 23-year-old is a perfect fit for thinks team he says. i can do that. >> meanwhile, his new club got off to a winning start picking up the charity shield for the 21st team against premiere champions lester city. later header giving united a 2-1

win to clinch the silverware. argentina's juan martin del potro shocked over djokovic in his first round of the olympics. djokovic left the court in tears with. with an olympic gold medal the only prize to elude the player who has dominated the men's game over the recent years. then you have the british swimmer adam peaty. breaking his own world record to clinch gold in the breaststroke. defeated a childhood hero of south africa who finished in second place. peaty is the first male british swimmer in years to win an olympic title. michael phelps added a 19th gold medal to his olympic talent. 19 to become the most decorated

athlete in history. this as he helps team u.s. maintain dominance in the 4 by 100 freestyle relay. the u.s. has now medaled in the event in every sing will olympics since the sport was included back in 1964. speaking of medals, the united states took an early lead in the medal tallies boosted by strong results from swimmers, including phelps and katie lly deck i too gold in the freestyle. head to cnbc.com to get the latest. decision to ban the entire paralympics russian team due to rampant doping. more online too. we're taking a quick break. check out world markets live. it's our blog that runs throughout the trading day. we're going to be talking currencies after the break. get your questions through so i can use them. street signs up at cnbc.com.

disappointing data from china. imports in july fall by more than 12%. that's the biggest decline since february. more than a million people joining a democracy rally in istanbul wf the turkish president add wan says he would re-establish the death penalty. welcome back. we're some five hours away from the u.s. markets opening. but we may show you the early

indicators. the implied opening be a little bit of a higher start stateside. the dow called up by some 30 points as seen on the right-hand side of your screen. we're hanging on slight gains. the ftse the kpxetra dax and -- repositioning of late on the back of the bank of england. payroll data, surprising quite a few people on friday. this morning, you're looking at a euro dollar level of 110. the dollar against the yen 102 and a bit. cable around 130. the aussie dollar against the greenback at 76. simon derrick is with us. good morning, simon. >> the dollar on the back of the

payroll data, would you have anticipated more of -- or are we not really thinking the fed could be hiking? >> i think it makes perfect sense. the debate has always been there's got to be one rate hike. the question was going to be when. now, this maybe changes things slightly. still seems relatively unlike i. simply because the fed is going to produce so much in terms of persuading the market this is the case. i think nevertheless, what you have here is a market that is responding well to the idea that we can have a rate hike. responding well to -- remember, august has been a month of high volatility. here we are in the middle of month. the market isn't worried about the -- that maybe gifts fed a little more comfort than what it's been. >> is that because we're not

starting to see the good news. the economy is stronger as opposed to it's going to become more difficult for all of us. >> we're getting past a lot of risk -- we were worried about devaluation of the current. that doesn't seem to be front and center. lots of the risk events we could have been concerned about this august now seems to be far less of a concern. and the strong dollar which could have been a catalyst for concern isn't impacting. this is a market far more robust or far more blanketed. who knows? far more robust than back in january or august last year. >> you mentioned brexit. again, i'll mention to viewers

that i tweeted some data of data points before brexit and data points right after brexit. a lot of angry people out there regards to that tweet. it was more to show just the fact that -- also to say i genuinely, not that i don't care which way the vote went but all i can do is listen to all of you experts. the majority of which in the city of london have been telling me over the last year that -- would be a better option. also open to the fact that might not be the right thing for the british -- i'm not smart enough to know that. i want to say that to viewers. i want to tweet the actual facts of the data showing. given that the data has weakened since brexit, who -- do you think that the bank of england did the right thing? >> there's so much debate about this. i'm going to go with yes.

i think that what we're looking at right now is to provide as much -- for the -- given the fact we don't know which way the data is going to break, we know there will be unknowns. to provide that extra comfort, along with one is assuming extra comfort on the fiscal side as well. i think it makes sense. now, some might argue that mr. carney isn't giving himself a great deal of room to further from it. can only go ten basis points that. argument is fair. you're going to be proactive, be proactive. what he did was a strong, strong message. >> also gave a quite strong message about not being a big fap of negative rates. there's only so much the bank of england can do and should do. how are we going to get

ourselves out of this in the long-term, right? >> when we come to all these things, it comes to what the central bank tried to -- i think -- i agree with them. i don't think negative rates work particularly well. he's right to put a break on it before we -- therefore, the only thing that's realistic is going to be qe in one form or another. or additional. we know the only thing that's done is drive asset prices higher and currencies lower at the time. he's already said that there's a limit to how far he would want it to fall if there were inflationary effects. we know that from that perspective, there is a limit to what has been -- even though he's not -- by having made those comments, he tells you he's prepared to accept a weakness. this is not about simply sending sterling sending down to the extreme number -- >> if we could get a screen up and just show the various

currencies across. talk me through what you think some of the targets will be by year end. for example, we're at 110 now. >> personally, i think the euro should be significantly lower. hasn't moved in 12 months. be a fool to try to call it -- if i was to say that was 106, 107 that would be fair. cable, i think will be in the mid 120s by the time we get there. the rates are going lower and the fed's hiking rate. every time you see that, a huge sign of what the yen does next.

they're a better bellwether than anything else. >> leave it there. simon, thank you very much. joy as always to have you here. chief strategist at ny mellon. the payroll data, crushed expectations coming in at 255,000. the consensus was in the region of -- we have more. >> one of the big takeaways in the jobs report, it's hard to find anybody to say anything bad about it. jobs added in july shows the dynamics to be improving. job growth was broad-based and up 0.3% or 2.6% year over year. most found jobs. that's why the unemployment rate was unchanged. previous months it was higher. strong job growth in leisure and

hospitality. government for a second straight month added at 338,000. manufacturing, construction up 23,000. temporary help up 17,000. retail added 15,000 jobs. that kind of job growth raises the immediate question whether it's strong enough to hike in september. some economists still think september is a possibility. but most believe december is more likely. the fed funds futures market showing a slight chance of a rate hike this september. first, there were new decline in oil prices could push deflation further. measured gdp has weakened the u.s. and the fed may want clarity to see what more accurately reflects the economy. third, the bank of england just announced more stimulus and rate cuts. europe and japan, their policy rates are still negative. the fed probably going to be wary moving the policy rate too far from those of competing central banks. back to you guys.

>> donald trump will deliver a first major speech on economic policy. speaking to the -- he plans to propose a deduction on child care spending in an effort to challenge hillary clinton. according to a poll, clinton has gathered a lead over her republican rival. tracie potts is with us out of washington. tracie, what can we expect out of trump today and the unveiling of the economic policy? >> sure. this is the week for dueling economics speeches. both in detroit. clinton is on -- today trump is going to be talking about energy, he'll talk about taxes, he'll talk about government regulation and backing off that. also about trade. this tpp deal that even democrats like hillary clinton's running mate tim kaine say they don't want to support because he's not enforceable.

from trump today, it's not clear how much he'll get into specifics, but child care deduction that you noticed is one exception to that. even some of his allies admit that his numbers don't add up. not only his but many candidates. including hillary clinton. that the numbers don't add up in the midst of the campaign. meantime, on thursday, when clinton speaks about the economy, aides tell us she is going to focus in on making this economy work for working class families and not just upper class families and the big jobs package she wants to roll out to jump-start jobs. which is something we expect donald trump to talk about. but he's been approaching it, instead, from the trade angle. if you get rid of what he calls bad trade deals, he says that will bring manufacturing jobs in particular back to america. >> tracie, thank you very much. good to seeyou. we'll chat again tomorrow.

tracie potts joining us live out of washington. turkey's president erdogan staged a -- the so-called democracy and marchers rally was aimed to show strength in unity after last month's failed military coup. at least 45 people have been killed and more than r50 injured following a bomb blast at a hospital in -- the capital of pakistan's province. a local health official said the death toll could rise. the explosion happened as mourners gathered to escort the body of a prominent lawyer who was shot earlier in the day. belgium launched a terror probe into saturday's machete attack which wounded two police woman at a police station there. the attacker who was shot dead at the scene has been identified as a 33-year-old algerian. isis claimed responsibility for that attack. german media reports that the two men responsible for last

month's ax attack on a train and suicide bombing in the country were mentored by isis. investigators are examining internet conversations that show the militant group advising both attackers how to cause the maximum number of casualties. coming up, we will be linking back to business. how is europe's travel industry, though, reacting to the increase in violence seen in europe. also, how is it expected to react to brexit. keep your e-mls and comments coming through on twitter at louisa bojesen. street signs at cnbc.com. announcer: when they test you, stand firm and move only when you hear the seatbelt click

that says they're buckled in for the drive. never give up till they buckle up.

the german state of -- is vw's largest shareholder and has veto power over the supervisory boards. elsewhere, the chinese search engine baidu is working to create driverless cars. here's the report. >> chinese internet giant baidu is moving fast for a self-driving car. considering the google of china is known for search engine rather than car engines. but baidu is bet thag it can develop the automobile of the future. >> down the road in the future, the car will be smart car and in a smart car, the value of the software will be much more important than the -- and the hardware. >> until now, the chinese companies lagged behind in the auto industry. new internet and electric technologies promise to reset

the starting line and chinese firms are hoping to get an edge. baidu is interesting in making the car just the brains. >> baidu really do have the strength to -- ai technology in this area. >> the company has hired hundreds of people in silicon valley to focus on ai or artificial intelligence and is now among the top tech firms applying deep learning where computers learn by themselves. it's also tailoring its in-car systems. so the tech savvy drivers can connect with their smartphones. baid -- more than 70% of the chinese market. >> here are our applications. you can use them to make phone calls, browse maps torques navigate and use voice recognition because it's hard to type while driving. >> do you think this app could be popular outside of china as well? >> this year, the baidu map app will be available in more than

190 countries. when the map becomes more popular overseas, we'll consider bringing the car system abroad as well. >> baidu with various automakers is aiming to sell a completely driverless car on a mass scale in five years. >> why is it important for you to be first? >> because -- you can collect more data. the more data, the system will be smarter. potentially helping baidu to surpass rivals on the road. eunice yoon. airline was hit by strikes. cost around 90 million euros. solid demand in low cost unit helped to dampen the decline. shares in the airline have fallen by almost 28% so far this year. the british fraud office

launched a formal investigation into airbus' use of consultant. it's based on frauld, corruption and bribery in the civil aviation business. they'll continue to cooperate with investigators. with the summer holiday season in full swing now, some of you might be watching from your yachts, who knows. this week we'll be focusing on the travel, leisure and luxury sectors. we'll be looking at enjoyable ways to put hard earned paychecks to work as well. that's coming up throughout the entire week. it's not all fun and games, though. while travel and tourism contributed to gdp last year. growth forecasts from the travel and tourism council, they've recently been revised downwards. hurt by economic weakness and a ramp up in terrorist attacks. according to allianz's confidence index, almost a quarter of americans say they'll cancel, delay or even reconsider

their travel plans. a quarter of all americans. a travel analyst at euro monitors national is here to talk about this. >> fine thank you very much. >> how is the health of the travel and tourism industry at the moment? >> travel is resilient industry. each though there are downward trends in certain areas, other countries perform very well. so it's not necessarily that the entire industry is falling flat and that there's no growth anywhere. the downward reassessment from wttc doesn't necessarily mean there's no growth expected. it's just everyone knows with brexit, with terrorism attacks, all of these things are not contributing to growth. especially in europe. >> people are holding back at this early stage. traveling to the uk because of brexit or it's anticipated that could happen? >> there's different ways of looking at it.

in a way, uk is becoming more -- a better destination to go to because the pound has fallen. especially for people from europe and america. actually, it's a better destination to go to now. we're actually -- that the uk will attract more. the problem overall, problem will not alleviate the damage it has done when you look at it more globally and especially in europe. because, of course, for uk travelers, traveling abroad will be more expensive now. that will be an issue. >> uk travelers are expected to stay at home then? are they going to be spending more at home? could it benefit the uk travel sector itself in some funny way because we see more money staying here? >> the stay-cation will come back. the popularity will grow for that. for sure. things like air bnb, budget hotels will perform better as people look at wallets and say

our travel budget may not reach as far as going abroad. if people do go abroad, they'll be more interested in paying before they go away. all clue sif holidays, cruises will become more popular amongst uk travelers. then they have a better insight on what they're going to be spending on in the future. >> we just heard that a quarter of all americans, they're considering canceling or rejigging their travel plans due to some of the uncertainty. terrorism, is that something holding people back from traveling to specific places in europe or traveling in general? >> yeah. for sure. europe overall is a popular destination for americans. what they tend to do is they don't go to one country. they tend to go to different countries within europe. the facts that there are already issues happening at the moment means they'll reconsider. it is a once in a lifetime trip. people will probably postpone this trip for now and say let me

go to mexico for example instead and see if i can do that trip once things calmed down in europe. >> how much are people spending, less or more than what we've seen? people putting their money to use -- on hotels or is it budget travel. >> people tend to spend more but it's changing. more people are interested i spending more when they're in the hotel but maybe less on airlines. low cost airlines especially between the u.s. and europe are doing very well. this is because people have different priorities. they'd rather stay in a nicer hotel than travel business class for example. this is something that we have seen for a while. for example, air bnb is doing quite well. people's expectations, people's demands are changing. what they're looking for is changing. >> does it feel like there's

kind of a place to go at the moment? every year there's a place where lots of people have gone. anecdotally, i don't know how many have gone to bhutan all of a sudden. hairdressers, believe it or not. there's a double page spread on bhutan. little did i know that was a fab place. >> a lot that's happening in the moment is due to what's happening more macro effects. you have zika, that stops a lot of people going to latin america, the caribbean. you have terrorism attacks. brexit. when you look at where are the more stable location, those tend to be at the moment the ones that are popular within europe for example. spain is popular because it's one of the countries where it's relatively quiet and calm. but it still has mediterranean ocean. >> the ocean. that's a dream. thank you very much. travel analyst at euro monitor

international. let's take a look at some of today's top stories. if you're just joining us, shares surging after the dutch mail and parcel delivery service recorded profits of 166 million euros. beating expectations for 37.8 million euros. that came via reuters. the delivery service reconfirming the 2016 outlook as well. shrugging off a miss in revenues. it's bouncing higher than more than 12%. deutsche bank -- they've been drped from the index of european blue chips starting today. exit rule shares of both companies slumping to record lows post brexit and shed 50% of their value year to date. china's exports and imports fell in july suggesting global demand is sluggish. fell by 4.4% from a year earlier. imports meanwhile falling by 12.5% from a year earlier. that is a the biggest decline

since february. so mere in europe, we're trading higher. pretty much across the board. the implied open in the states 4 1/2 hours away. we're looking for a buying, what's it called. initial buying here this morning in the states once you wake up in the u.s. when looking at things that we're watching for the week ahead, you have bank of japan, quite a bit of chinese data. u.s. advanced retail sales. much more to kochlt see you tomorrow same time. same place.

walmart set to buy online retailer jet com for $3 billion. an announcement expected today. plus, your money, your vote. donald trump heads to detroit to roll out his economic plan. it's monday, august 8th, 2016. worldwide exchange begins right now. the birthday song there. much appreciated from the team. sara's birthday yesterday. she's off today. also my