good morning, everybody and welcome, you're now watching "street signs." i'm louisa bojesen. these are your headlines. the european commission is set to force apple toll pay over a billion shares to ireland. super national tax authority that theretoens to crack down on tax avoidance. head or cei not a step as 77,000 people sign a petition demanding a former eu to lose pension after taking job at

goldman sachs. >> hershey falling sharply after hours. walks away from talks after failing to agree on a talk for the chocolate maker. basic resource tells cnbc higher oil prices will drive more production. >> at the prices we've been all facing, we're probably not in a situation where oil supply demand will be sustainable over long-term. if we start seeing prices inching up to $50 or above, hopefully the producers are going to be able to start coming in again. >> welcome to the show. you're watching "street signs." let's jump right into data out of italy. rising sales month on month after climbing 0.3 in the month of may and retail sales were up

0.8 on adjusted year on year in the month of june. this is a decline of 1.5 in the month of may. so a little bit of an improvement in the terms of the retail sales picture, remember, yesterday, we had some poor confidence numbers for business and consumer confidence coming out of italy. also we're waiting for some spanish numbers, but i do want to tell you we had inflation numbers out of spain this morning in line with expectations. a drop of 0.3% and we're waiting for the big number. gern ppi numbers. >> i'm thinking where did the italian banking crisis go. and i'm wondering what investors are looking at with regards to italian investment case. are they looking at financials

and what's happening there? >> have to wonder. let's talk about what's going on in europe. broader europe and equity markets this morning. relatively flat. couple of points higher. up just half a percent. called a little to the upside at beginning of trade, premarket trade. when it comes to main european equity markets reflected there too with all of the markets trading in the green. the ftse mib talking about the italian market outperforming by 1.5%. telling a similar picture there with quite a bit of buying taking place. reversal from what we saw yesterday. technology autos trading higher alongside with the banks up by one and a third percent. data out of japan showing us both prime minster abe and kuroda have work to do. talking about the household

spending and retail sales falling in july in japan. not as much as expected. the jobless rate improving. in singapore taking a look at this data. >> good morning. >> what do we think now we've got it. >> it's more of the same, really. the japanese economy isn't shooting out the lights, but it's not getting worse. august is further for the boj. it does put pressure on them to do more work and take more action. if you look at the last meeting, they were relatively hesitant and it was underwhelming. they just increased and that was it. expectations were high and they dashed them. what this is telli me and lot of observers about policy is the boj is quite clearly putting the onus on abe knockics. that is really the dynamic right

now. so don't hold you breath for the boj arguably when they meet later on next month. it will be an interesting meeting in dollar yen rates are closer to $1. not a great deal of activity and conviction in the markets, but nevertheless doing a reasonable job in shaking off the less dovidove ish janet yellen at jackson hole and translation and filling in gaps of comments saying it's consiste with a rate hike in september. these marts in asia and pacific are back to square one, back to second-guessing what the fed is or isn't going to do. it's been a good ride in terms of the hunt for dividends, the hunt for field. and a lot of field trists have ended up here. some of the valuations not looking quite stretched.

you have to ask yourself what is going to take. could testimony rate environment. let me just say this very quickly. thursday is going to be important. focus could come back to the region and china data. we have pmis coming out of china, both the private survey and the officials numbers so what's that's going to tell us about the transition towards the services led consumer led growth could set the tones for the markets in the short-term. ladies, back to you. >> thank you so much for that. keep an eye on chinese data. also want to tell you what the dollars are doing. seeing another bump up. euro dollar at 1.117. >> 102 pnlts 36 and against the pound, 1.30. very important pound data later this week in cmis.

let's get out. peter, always pleasure speaking with you. i want to come back to the commen that stan fisher made at jackson hole over the weekend. he indicated the next jobs report will be a very important e. just how good will the number have to be to cement the hike in september? >> i think it has to bever 200,000. put the three month moving average about 220 and that would be enough in the market's mind to seal the credibility and move forward with a 25 basis point hike. i think it will be interesting to hear what he does say today because there may be pulling back on how is conviction level from what he said in jackson hole and crifying hisoints and really seeing if theata -- if his comments reflect how strong the da is. there are segments of the u.s economy clearly tperforming.

there are significant weakne that can't be just blownway and overall the general data tends to be on the weaker side is torquically. i think the market is correct in underpricingxpectaon for5% sis point hi. clarifying the conviction level and what he meant in tms of timing is important today. >> i wld also think there's noa lot of conviction just yet. i just wonder to what spent the market is lsh wil readjust the positions based on what stan fischer says over the next couple of weeks. do you think we may get stretched again in terms of dollar positioning. >> i think it's déjà vu all over again. we were hereast september. the market was expecting a rate hike. they were so temper tantrumn the marketace. china fell off and all of a

sudden the 25 basis point hike disappeared. we ended up doing it in december. the market is going to continue to lag the dats and fed talk in terms of pricing dollar strength in. moving forward, it's going to have to sound and thdata has to be sportive for peoe to pile into this 25 basis point hike. i think it's important that pele realize that moving forward, it's going be extremely choppy extremely difficult to trade the dollar with just fed comments moving markets. >> peter, good morning. mark oz wald put out thoughts. he sd the biggest risk of not mong ietting bind the curb. then you have aituation if you wait until december, you have third quarter gdp. head line could 2%. unemploynt. do y tnk that is the biggest risk right no if they don't move, or rather they have to move for to it be a gradu

hiking scenario they have promised us, quote, unquote. >> the biggest risk is overestimating the quality of the data and looking at, say, the recenttrend-like behavior in the inflammation numbers and bor markets a. these ar extremely weak numbers. shouldn't get too ahead of ourselves thinking everything is wonderful in the u.s. because vis-a-vis other countries, america is doi relatively well. it's still gdp growth is lower than trd-like behavior. number two the we're talking about 25 basipoint hike. we're august about two or three mohs worth of delay. i dot think it's going make a big differen. i don't think getting blind the curb is really the concern here. the real concern is scaringhe market into a shock reaction and makingure that if they do raise rates, itoesn't have a significant trickle through

affect into the broader sort of risk aversion type of trend that we've seen in the past. >> so looking back at this week's big event, the payroll dates on friday. where should we be positioned in general. affects on the yen and affects on the pnd as well. >> our base scenario would continue to see choppy trading in dollar. continue to not expect a rate hike in september. in that case, we would continue to sell dollars on any rallies moving foard. in terms of the yen, we continue to see wkness in the yen. -- excuse me, strength in the yen. we don't believe the japanese authorities really have the ility to wean the y moving forwar we're about to see a central bank hit the wall when it comes to monetary policy we've heard kuroda's comments. it means the boj is going to have to act. unfortunately the market is

ready forivity and not goingo be much of an impa. when they put the next interest rate cuts andove forward with quantitative easing and don't see weakness, you're going to have a real situation. central bank that doesn't have the ability todefine tir underlying policy. >> have a goody. head of market strategy from swiss quote bank. now, speaking of banks. 's time to take banks off the naughtstep. told the financial times that the governmt needs to scrap an 8% charge on bank's profits. given the threat posed to the city of london by brexit talks. >> nearly 80,000 people have signed a petition demanding former european commission president to billion stripped of his pension after taking a job at goldman sachs. the petition was organized by eu staff and called for

investigation into his key decisions while at the commission. he let the eu executive bodies through the financial crisis and the greek debt talks. e-mail the show. streetsignseurope@cnbc.com. you can get on touch on the blog. we have a similar petition going on. the question should he be stripped of the pension or not. we have a lot of action there. >> i was listening to our colleagues debate on squawk. i'm with steve on this one. i think it's absolutely ridiculous to talk about not giving him a pension because of the jobs he's held in the public spear. i don't know what you take is on this. >> he's isn't the first one to take a job at a very well known bank. so many people have taken jobs at a goldman sachs after they ran public office. is it okay? i think you have to look at the links that they've had before, whether there are in conflicts of interest.

withdrawing the pension, that's a bit extreme. >> you don't want conflicts of interest, but everybody deserves a pension, don't they. >> if you worked for it. >> yes, exactly. you worked for it. also, it's a tough position to have. who is going to want to put their neck on the chopping block and take a position like that. >> you mean it's a tough position to be had at goldman sachs. >> you feel sorry. >> no, but people head of whatever government bodying europe or head or banks. not easy jobs. they have to put up with all the stuff that's thrown at them. >> i think he'll be fine. you can also get in touch through twitte twitter @streetsignscnbc. plans to fine apple 1 billion euros. will tim cook pay up.

we'll discuss after this short break. don't go away.

welcome back to the show the. gene wilder has died at his home in connecticut at the age of 83. suffering from alzheimer's. taking a look back at his career ♪ there is no life i know to compare with your imagination ♪ >> reporter: gene wilder was an unlikely leading man. gentle, sweet, hilarious. >> you have to remember these are just simple farmers. knees are people of the land, you know. morons. >> reporter: and through apan of several decades, he starred in movies big and small.

and brought to the screen performances that were unforgettable. >> it's alive. it's alive! >> reporter: from young frankenstein to braising saddles, wider was magic in mel brookes movies. we was equally hilarious in silver streak. >> who are you? >> i'm a thief man. >> reporter: while it was a failure at the box office, the roll wilder was most identified with and loved for was will ly n ka. >> after his third wife lost her battle with cancer, he was a pillar of the support group, gill da's club. wilder who knew he wanted to be an actor from childhood, tired of hollywood, once said i like

the show, but i don't like the business. >> don't forget what happened to the man who suddenly got everything he ever wanted. >> what happened? >> he lived happily ever after. >> reporter: harry smith, nbc news, new york. >> takes me back to my childhood. >> it's quite emotional. >> i grew up watching a lot of his movies. it was very innocent. it was one of the only things my parents allowed us to watch at a young age. richard prior as well. the train moving was triggering my memory. silver streak, stir crazy. >> i didn't see many movies of his. it's all this chaos and then there's somebody on the train that's done something and they dress up and running around. it's brilliant, innocent fun. >> really had a big impact on you. >> it did. because i wasn't allowed to watch anything else. just a couple movies. the european commission will

today demand that apple pays over a billion euros to the irish government after getting illegal state aide from dublin. unveiling the find at midday in brussels. the decision already faces criticism. the u.s. treasury says the ruling threatens attempts to stamp out tax avoidance. >> good morning, neil. >> good morning. what do you think is going to happen with regards to the precedent this could set if -- we're expecting to see a pretty big fine. europe's largest fine being given to apple. what's going to happen next. >> the only certainty we can have at this juncture, certain people getting rich off this. lawyers. this will basically go through the courts for a number of years and have a number of sort of different legal issues, i think, that will come about from this. i really struggle with this.

the saga has talked about level playi playing fields, about going on to the one europe, digit cal economy of europe. the gulf between europe and the u.s. has widened and it's acts like this that every corporate is required to pay tax where appropriate, but at the same time you have to take the wholistic approach here. look at the number of jobs apple credit its in europe and look at the wider economy. look at this not just in isolati isolation, but the bigger picture. >> it overrides the tax codes of member states. they're also saying the u.s. treasury department that brusselss is using a different set of criteria to judge u.s. companies and what they're doing in europe. do we need to find a common president between how we operate in u.s. and in europe. >> that is part of the issue. many member states of the eu have signed up for a range of

policies of under one policy directive, but on others especially tax treatment comes down to national issues more than on eu issues. common ground would be great, but let's face it, we've had many, many issues on import duties. solo for example a massive spat between china and u.s. for a number of years. is there any progression in terms of corporates in terms of job creation when these kind of things take precedence. we have to be careful with this. >> correct me if i'm wrong, did you just insinuate this might just be a crack down on app m because europe doesn't have its own tech champions. >> it could well be, couldn't it. we haven't got any tech champions. we have one. they're about to be owned by japanese. we don't have any tech champions. what is happening in europe? nokia is slashing jobs. erickson going through multiyears of issues because it's not competitive in china

and going through again job cuts. apple has created effectively through the wider system 1.9 million jobs in the last decade. almost a million of those are outside the u.s. not just u.s. protections at play here. >> for apple this would make a difference. the 1 billion dollar fine, even if it's higher than that. they have roughly $230 billion in overseas cash to them it's just a drop in the ocean, isn't it. >> a drop in the ocean financially. some estimates say it could be as high as $19 billion. what about that tax bar. will that offshore cash they have and come sboos the case of those almost trillions of dollars held by u.s. nationals who still have come back to the u.s., but becomes a hot potato in the u.s. election in terms of this is a way of --

>> said she's going to be deciding on the ruling in around about an hour and a half or so. we'll hear more about the size of the actually fine. they're expected to appeal. so what does that mean? are we just going to drag on and on and on. >> probably will. probably will drag on. of course the irish government is on the same page as apple and not surprising when apple spent almost a billion dollars on data centers in ireland. google are investing heavily in ireland. microsoft heavily in hire land. not just apple versus the world here. is there another issue under the hood that we've had brexit already and will this lead to again -- they've done it once before. ological they again lead to the threats of job cuts in ireland could lead to another vote on the eu inclusion. this could be a tipping point of many other things to come. >> you talked about one tech

champion that europe has, but we're going to lose it to japan effecti effectively. arm holdings are expected to improve. this despite criticism of the deal by some high profile commentators such as lord minors. the form city minister says assurances given to the government over protecting jobs and keeping arms cambridge headquarters were not worth the paper they were written on. neil, we've seen so many deals in the chip space. you say this deal is different. this deal is specific. why? >> most of the other deals in this space have been about consolidation for scale. scale is necessary without getting too jog nisic because of the way the technology is evolving. the cost of building new plants are escalating. multibillion dollars. arm is effectively a software company. they provide the ip. they provide the key ingredients

for the internet of everything. i do mean everything. we talk about vehicles and overnight we talk about putting sensors into nfl footballs, for example, all of that is only made possible by arm technology. this is much around the technology ip of itself. if your soft banks, the vision reliever they have, looking at a 30 year view and want to be the leading champion globally, you need to have presence not just in telecom or internet, but everything that connects it together and that's what arm is. >> who else is going to merge on the back of this because they feel forced to given what you just told us, it's going to be such a powerful group. >> in terms of other tech companies. >> yes, exactly. what is going to be spurred because you can't compete with a power house like this. >> there will be further consolidation in chip space.

lynn ye linear was one that got acquired. when you move to the next generation of computing and better computing and use of power and technology, unique ip in that space as well. >> what do you invest in now? as an investor, what have you been an avid investor into arm, but you can't do that anymore because it's taken over by softbank. do you go to softbank directly? pretty slim pickings. >> you can look at it from a anymore row field. if you look at the whole again, internet and everything it connects, you have big companies out there that can range in tencent and facebook. autonomous vehicles. there's over a dozen companies very well placed in that space as well. >> neil, thank you so much for

your time and insight. thank you so much. senior vice president and head of global tmt research at northern trust securities. we're going to go for a quick break. still coming up in the show. eight months isn't enough. spain's political deadlock could be extended further still. we discuss after this short break. it's ary when the lights go out. peopleet anxiousnd my office gets flooded with calls. so my things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital id manas d reutes pow, soervice can be restored within seconds. priority number onis epinthose lights on. it takes ingenuity defeat the moters that live in the dark.

welcome, you're watching streen signs. carolyn wroth. >> i'm louisa bojesen. your headlines. european commission force apple to pay 1 brett lawrie euros in ireland. accusing of coming a international tax authority that threatens to crack down on tax avoidance. head of cbi taken off the naughty step as 77,000 people

sign a petition demanding a former eu official losing pension after taking a job at goldman sachs. hershey falls sharply as mondayly walks away fromover talks. oil prices edging upwards. this is basic resourcings giant tells cnbc that higher oil prices will be driving for production. >> the prices we've been all facing we're probably not in a situation where oil supply demand will be stainable over long-term. if we start seeing prices inching up into $50 brent or above, hopefully the producers are going to be able to start coming in again. >> hi, everybody. welcome back. let me get you the data hitting our wires right now. by the looks of things, july mortgage approvals for the uk falling to 60912 to be exact.

which means the lowest level we're looking at since january of 2015. mortgage lending, 2.67 rounded up. billion pound sterling for the uk. which is quite a bit lower than what we saw in june. that figure was closer to 3.2. consumer credit. 1.2 billion pound sterling. also quite a bit lower than what we saw in june. the smallest increase of 2015. that figure just glancing through lines. the first fall though, since december of 2014 and that particular consumer credit growth arena. money supply growth. let throw that in there as well. 1.2% month on month versus 3.9% year on year. this being the strongest annual since february of 2010. kind of a mixed bag we're getting right now. just glancing as well because

the uk july net gild purchases by foreign investors buying into uk gild, minus 4.4 billion sterling versus plus? june. seen a huge dropoff by foreign investors out there. all of this hitting wires now. mortgage falling in july. lowest level since january of 2015. >> that's hardly surprising, isn't it. let take a quick look at u.s. futures at this early hour. s&p 500 up half a point. dow jones up 14 after seeing a triple digit gain yesterday. nasdaq seen up by a little bit more than 1 point. i do want to remind you that volumes are still very, very low. in fact yesterday we saw the lowest volume day of the year with only 2.6 billion shares traded. averages roughly 3.3. today bealso get u.s. consumer confidence. i want to show you what's going

on with the europe markets as well. ftse mib rallying quite hard. xetra dax up 0.8%. ftse 100 is lagging somewhat. just hugging the flat line. in part because basic resources are down today. keep in mind this mavgt was closed yesterday. in terms of the bond markets we saw yielding edging up. unwinding some post yellen and fischer trades: ten-year french yield at 0.16. very important data point out of germany, 0.4% more or less. >> will spain socialist party could be set to reject the bid for re-election and further extend at eight month political deadlock.

rajoy is relying on the tip of staying in order to succeed in vest attitude vote. if rajoy is unsuccessful, a third election in the year could be called as early as christmas day. daniel, what do you anticipate will be the outcome of this confidence vote? >> caller: good morning. it looks unlikely this vote will go ahead to help vote new government because socialist party has very well said are adamantly saying that they will vote no. and the support that mr. rajoy has been able to gather only gives me 170 yes vote he needs about 181. therefore the numbers don't add up because everybody else looks

to be voting no instead of on staining which would help form a new government. >> there have been a lot of suggestions that the pp party, if they teamed up, they could both squeak through to maintain majorities. why don't we see more of a backing towards a pop list party. >> they have reached a level which will allow the co conservative party to gets votes. however that agreement of principles doesn't seem to be backed bid any other party. i believe mr. rajoy was sort of hoping the socialist would adhere to this agreement of principals because it was pretty similar to the one that the

socialists achieved wibefore th second election, but seems the deadlock remains. >> daunielle, how can it be in country that doesn't have a government for eighth months seeing government bonds rally so hard. this should be reflected in the bonds. i mean, if we take a look at the ten-year spanish paper, that's rallied 6.6% this year. it outperformed italy which is unusual. >> i think there are two reasons. the first is there are certainly a momentum in the spanish economy. tourism is absolutely at record levels. consumer spending is growing. unemployment is falling. the macro economic sort of tailwind continues to work. also, exports have grown to about 35% of gdp so the

commercial deficit is falling rapidly. i think that's in that sense what you have is a macro positive relative to the rest of the european union. you mentioned italy. italy on the contrary has seen gdp stall, france as well. i think that is helping to sort of counter balance the risk of a political deadlock. >> wouldn't you think at some point the spanish economy is going to be feeling the pain from the political vacuum? we've already seen a bit of a drop in construction, for example. >> absolutely. it's already evidence. the tailwind exists, but for example, the path and the pace of the job creation is slowing down. the growth is there, but it's 0.1, 0.2% of gdp lower than what would be the potential. so there is already some signals

of risk, for example, financial investment capital expenditure, all those are sort of suffering. more than in the fact there's egrowth because it continues to be. >> daniel, thank you so much for your time. appreciated. moving on, u.s. drug maker mylan is set to launch a generic version of epipen for 300 dollars. the announcement marks an effort to counter last week's backlash steep price. let's get out to tracie potts. will this be enough? >> reporter: well, maybe not because we understand that today activists are delivering petitions with 600,000 signatures asking mylan as they put it to stop the price gouging and drom tp the price of this d

that has increased so dramatically, this life saving drug, i should say, as a result of the recent controversy. mylan has decided to rebrand, relabel, or come out with a generic that will be significantly less, but still more than many families have been paying and a lot more than many families can afford. expanding the limit of people who will qualify for coupons to further reduce the price of the drug, but you're question is it enough, apparently not so for people who are very frustrated about this. mylan earning a billion dollar as year off a drug that coasts only a few dollars for the drug and the injector for that life saving drug. ceo heather bresch said that spent millions of dollars on development and that's part of the cost here. they're doing what they can to reduce the cost, but really with

the exception of one little known alternative, there's just not a lot else out there. there's mylan with the epipen. and now mylan with what's going to be a generic for its own drug. >> tracey, can i ask you completely different. there's a top aide to clinton who is now separating from her husband who used to be a member of congress and he in the past has sent inappropriate pictures to people who weren't his wife, people found out about that, had to step back from role. he's not been sending inappropriate pictures again. some are saying this is casting a bad shadow of the clinton campaign because of the position and how close she is to clinton. what are people saying where you are. >> she's probably the closest adviser to hillary clinton. one of the closest. very much in her inner circle.

donald trump thinks so. he very quickly came out and said this is bad judgment on the part of hillary clinton to have such close tie ties. he suggested that weaner may have had access to classified information without giving any sort of proof, any sort of evidence at all as to how that could have happened. >> tracitracie, thank you very tracie potts, via nbc news live from washington. want the get to you with breaking news out of china. commercial bank of china nonperforming loans at 1.55% at the end of june. that interest margin came in at 2.21% and the capital ratio at 12.54% at the end of june. oil trading higher in the session. wti remaining on course now to post best monthly gain since april.

against this backdrop, the ceo of resources giant, red. >> we have a lot of royalties in india. we're all suffering lower oil prices. better price environment than we were facing six months ago. as we see brent between 45 and $50 a barrel. we're at the cusp of pricing environment that we can just begin investing again. i think our situation is probably not that atypical. somewhere between 45 and $50 a barrel. you may start seeing people coming back and spending a little more capital. as we see it now, i just saw some information over the past couple days that the rate of discoveries worldwide were the lowest they've been for decades

in the past year. so at the prices we've been all facing, we're probably not in a situation where oil supply demand will be stainable over the long-term. if we start seeing prices inching up into $50 brent or above, hopefully the producers are going to start coming in again and be a little more security supply. people are saying there's no such thing as $100 oil coming in. low for this period of time, you could see increased price shock in the future. >> that's really fascinating, but what you're saying is $6 lifting cost, mr. xetra from $25. others across the world including especially the non-opec countries are getting their cost down aggressively. becoming swing producers at lower prices as well. it seems to me that actually the ability to turn the taps on aggressively doesn't come ck at 60, $70. it's coming back 45, 50 as well. makes it harder to get discipline in terms of production from anyone, doesn't it? >> also i come from a

basic resources today. actually quite massive. down 4-5%. set off a similar amount. this is in part because yesterday the uk markets were shut so we're seeing a little bit of catchup. also, we're seeing iron ore futures dropping to a two-week low. reuters says this is ahead of closers for the g 20 summit next week. just something to keep in mind. >> keep your e-mails and tweets coming through.

what's your twitter handle. always happy to hear your comments on anything we're discussing in the program. coming up in the show, should you take a bet in brazil. waiting decision of strip ipingf presidency. talk about brazil in a couple of minutes. :

welcome back to the show. monday lease has walked away from hershey. proposed offer. shares in hershey fell heavily in u.s. after hours trade on the news. reuters reports hershey was

looking for $125 share bid. not such a sweet deal after all. >> maybe not. >> no pun intended. >> of course not. the u.s. defense secretary is calling on turkey to stay focused on isis and not target kurdish rebels based in syria. circ circ circumturkey is claiming they are terrorists trying to launch attacks in their country. president obama will be meeting president erdogan to discuss the conflict on sunday. i erdogan said the fights won't stop until turkish fighters no longer threaten turkey. talks of the so-called jungle refugee camp. meeting counter parts later today. for migrants to be able to apply from france for asylum in the uk. expected to declare a complete

nonstarter kpliet the brexit vote. reports indicate britain is willing to rip up wider security agreement with france if it does not get its way. this is exactly what people who, you know, who wanted to leave the eu, what they should have known they were voting for because essentially now you move the border from calais to dover. moving on. ub ub ub uber suspends services. 50 uber and drivers were detained in the capital over the weekend. joining us now. what's this about. >> a lot of different layers. this coming off the last several months. you have kareem, the sort of

arab based version of uber and big saudi investment into uber three and a half months ago. a lot of excitement around the ride sharing services. are the governments really prepared to deal with them. you're seeing that reaction coming from the abu dhabi regulator. who are the people driving cars, have they be vetted. background checked and a lot of concern about the possibility a lot of random people on the road who haven't been properly vetted by the government or the company employing them. kareem employ a limo company and employ folks. in terms of the labor laws, you have to have a worker visa which means you have to be properly vetted by the government. the worry of course is folks working for the companies could come in and be not just average folks who want to pick up extra hours. they might work somewhere like united states or london, but that doesn't work for the regulators in abu dhabi.

>> it's also about controlling growth of a company. it scaled up so fast. >> so fast. a lot of vested interest in the taxi firms operating already. their owned by some of the big families. there's also a question of course in spread of companies to other countries like saudi arabia. the question there of course is the same for all of the different countries, but the real question in terms of societal question which is one of the big booms that we've seen for the business in uber and saudi arabia is the fact women are able to use the services to go to that's the major tools of these companies to promote services which is that these drivers are going to be people vetted and

trust with your family. so it's a really big question whether or not these folks have been properly vetted. the regulator is trying to confirm that. >> has business been good for kareem and uber until the first place? was it widely used. >>? absolutely. if you look at a company like kareem, that was started by a couple of guys who worked for mckin zi. needing a basic way to get to meetings on time in a place until recently the maps were being redrawn all the time and you couldn't figure out addresses. companies like this have grown tremendously. >> hadley, thank you so much for that. suspend the brazilian president, dilma rousseff has made a passionate defense in the final days of her impeachment trial. she warned the attacks against her presidency threatened brazil's democracy. she argued the further rivals

attempts to oust her would hurt brazilian citizens the hardest. >> translator: it's proved i did not act wrongly. what i did was done for the interest of society. there is not any damage to the treasury or against the public. once again, i say as my defense did all the time, this process is marked by a diversion of power. >> regional director of lat. just how likely is it this impeachment will actually go through. >> well, good morning, first of all, the agreement is kwiek likely to happen. i think everyone in brazil and elsewhere is actually guessing it will happen tomorrow. the latest polls say around 60 or 81 senators who need to vote will vote for her impeachment. it's likely today or tonight or

tomorrow, we will see dilma row receive bei rousseff being ousted from power. >> if this impeachment goes through, we're going to have even more political problems. the mess is going to get even bigger. they might not vote for it. >> it's not the people who is going to vote. it's the senators and here you know the poll is quite exhaustive because both interim and president dilma have been talking to them. a lot of discussions going on in the corridors. it's quite assured actually this will happen. i think the polls in this sense are quite stable and reliable. >> we're just flashing on the screen saying that brazil's crisis has bottomed out. how do we know it's bottomed out? what happened? just a couple of years back, we're looking at growth rates of 4%. >> actually, we are not

forecasting the crisis has bottomed out. we are saying it's very likely in the last quarter of this year, the crisis will bottom out. and probably this is because the markets are expecting that mrs. rousseff will be ousted and new political economic policies will be put in place that would allow to regain confidence and trigger investment again in the country. so we are expecting to see a little bit of crisis, but hoping in the next quarter it will bottom out. >> with new leadership, will things change? lot of pele's discontent comes from being fed up with corruption after the scandal and all the government figures were involved. people seemed to have nuch. >> enough. >> that's right. it's always difficult to tell if things will change in the end, but we expect it will change in

the sense that, you know, the type of policies that were under rousseff will be changed in terms of fiscal policy that has been the main challenge and the main constraint for brazil. interim president, he will be implementing long-term fiscal projects. he's aiming for a change that would allow for fiscal deficit to be reduced over the long-term, but nonetheless that have risks as you are plengsing in term os of crisis. >> thank you so much. from the economist intelligence unit. >> cnbc julia chattily is in brussels. ne now that the train mak it easier to get here, the neighborhood is really changing. i'm always hopping on the ain, running all over portland. i have to gorhood wherever the work is. trns with innovative siemens technology

help keep cities moving, so neighborhoods and businesses can prosper. i can book 3 or 4 gigs on a good weekend. 'm booked solid for weeks. it takes ingenuity to make it in the big city.

. good morning. billion dollar tax bill. apple could have a hefty penalty today. setting the stage for a series of crackdowns. monday less. today's test on the market. another month of solid gains for the major averages. it's tuesday, august 30, 2016 and "world wide exchange" begins right now.