welcome to "street signs." these are your hooins. prime minster tells in exclusive interview willing to risk appeal in order to help his country. >> translator: there's a message written on railway platforms, shortcut will cut you short. that's my opinion toochlt i'm of the opinion we should not take the opinion and the results can already been seen. situations have improved now so there isn't much to worry about. we speak first on cnbc to

italian finance min sfer about the risks posed by the referendum as former ecb member says the leadership should not be at stake. >> it would be a big mistake because this would add uncertainty to the situation and, you know, this is one reform. so many others to implement, the government should focus on the other reforms that are not yet implemented. australian prime minster calls on g20 leaders to reject protectionism, telling cnbc exclusively that raising living standards should top the agenda. >> the action is not protectionism. is ans is not fear. answer lies in more trade, stronger growth, more invasion. and in corporate news, shares no internet head back to earth. posting a first half loss of

special items. >> good morning and welcome to "street signs." a big day out of interviews from lake co-mow today. gdp data just hitting the wires. sit the final reading on a quarterly basis. we are looking at no change at basically 0%. unchanged for the second quarter. slight revision on the annual basis. that compares to the preliminary number of 0.7%. overall you're looking at the euro dollar steady there. this comes day after we got the italian pmi figures. the 20-month low. did concern some about the growth picture. >> the day before we got the very poor confidence numbers and business consumer was appalling too. zero growth, that's not good enough for a country seeing zero

or negative growth for the last four or five years. >> in this environment, you have to wonder if flat is the new normal and at least it's not contracts. >> but the ecb is throwing everything it can at all these economies and it's not helping. italy has its own banking problem too. >> our next guest may have a thing or to r two to say about that one. italian prosecutors are attempting to ban at investigation into monte dei pasc paschi. it comes adds the struggling italian bank looks to raise five billion euros weighing on sentiment towards the broader italian banking sector. joining us now juan claude, former ecb president. god to see you there. let's start with you view on italy. once the dust settled on the brexit vote shock, a lot of voices started warning that italy could be the next big

crisis. what is your opinion? >> well, first of all, i think that italy has fantastic promotional and that the cause of action of italy to embark on structural reforms is the right one, in order to have the permit being expressed in terms of growth and job creations. it is more or less what we are reflecting here in lake como. of course it's hard work. we all know that, but i am confident that italy because it embarks on those platforms that are major due with some difficulties as well have to say as the your area as a whole, we have more or less the same problem. you're embarking resolutely on structural reforms and taking advantage of the potential we have which is not expressed correctly at the present moment.

>> one of those lingering issues voilss are concerned about of course is the financial sector. beare just talking about monte dei paschi there. the current ecb president suggest thad some form of public backstop would be useful for the italian banks. do you agree. >> i think so. i think what we have in the italian bank is something which looks as a problem which can be, i would say, coped with with the appropriate backstop. and we did that in the past. it seems to me that what is suggested goes in the right direction. that being said, of course, again, structural reforms are of the essence. it has no meaning to do something if it is not to put back on its feet the banking sector with the appropriate

restructuring, which is always the right solution in the medium and long run. we have to and they have in italy, they have to get rid of this threat, which is damaging obviously because of course it creates uncertainty. >> the last couple of months have made it clear to us that monetary policy has really hit its limits because it's no longer successful promoting growth. you have repeatedly said that the central banks can't be the only game in town. would it now make sense for the central banks like the ecb to say look, that's it, we're no longer cutting deposit rates. we're no longer throwing monies at the economies. now it's over to the governments. we're done. >> i will respond to your question of course, but i would like to m underline something which is not well perceived it seems to me by observers. i compared over the last 12

months, growth, rate growth in the u.s. and europe, your area and also real growth of the last two quarters, namely tchl first semester and to my great surprise i discovered your area had growth of 1.6 oempl 12 months when in the u.s. it is 1.2%. nobody says that, but at least taking, you know, some period, a euro period, you see that the eu area is posting a growth that is totally insufficient, but we share that insufficiency with the u.s. it is a little higher than the u.s. we should not present always growth in europe and the eu area as totally miserable. we share this misry with the

other advanced economy in the present period. with that being said, it is, in my opinion, absolutely clear that the ecb did a lot of fantastic job over time and, of course, in august a very difficult period of time that i have known and that mario with the governing counsel knows now, but let me say that indeed the central bank cannot be the only game in town, and it is repeat ed in all press conferences by mar mario. we have to rely on the structural reforms. i mentioned in the case of italy this is of the essence. >> mr. try sha, do you think against this backdrop the fed should be raising rates in december or even in september on

top of that? >> again, i was mention iing growth and it was a little surprising. it was surprising for me. that being said, of course, if you look at employment, the success of the united states economy in terms of employment is absolutely clear. so you have to, you know, take all elements, the employment, the inflationary threat in the future and so forth. so i am absolutely sure that the open market committee will do what it has to do to ensure that, you know, everything is in good order in the united states of america. i trust them always in the past. i trust them now. i look at what janet has said in jackson hole and i think this is, you know, very wise, obviously. >> sir, i just want the get your

thoughts on your home country in france. there is an election approaching election near. it will debate so far has been remarkably centered around security issues after the terrible attacks hitting the country and threat of immigration and security. i want the get your view first as an economist. are you worried economic reform is taking a back seat and as a frenchman are you worried about a pivot to the right? >> these are of course major, major issues. in regards to economy and reform, my understanding of the start of this presidential campaign is an economic reform is at the heart of the discussion. if i look at what is proposed by all those who have, you know, published books of a program, i see economics playing a very, very important role. from that standpoint, i don't

think the french political debate is forgetting that economics is absolutely fundamental and that reform, giving as i said, all the possibility to the potential of one economy to express itself, particularly in my country where we have to create much more jobs and it depends on reform. on the stability -- yes? >> sorry to interrupt. if you just finish your thoughts, go ahead. no, i only wanted to say that security is of course something of extreme importance in france because of the dramatic terrorist attack which we are absolute lly appalling, but in europe in general to have joint european approach of security and fight against terrorism seems to me absolutely

essential. and i trust that it is recognized by the french citizens, but also by the european citizens as very important, i would say, dimension for improving europe. >> really appreciate your time this morning. thank you so much. the former ecb president. thank you so much. meantime, julia chattily has been speaking to pierre the italian finance minister. and i want the bring you some of the highlights. he's been telling julia, policy must do more. must mobilize all tools. he does admit growth is disappointing, but improving. he adds, one should not be skept call of the nps solution. he's referring to the bank bailout solution. the bailouts are absolutely ruled out in the european system. nonperforming loans are not just a problem for the italian banking sector.

as soon as we do get that interview, we'll bring it to you and that should happen in the next half hour on so. in the meantime, quick look at the european markets this morning. it is friday. not just any friday. it's the jobs friday. we're expecting around 180,000 jobs in the month of all. if we get a number north of 200, this might prompt the fed to hike rates. very modest gains. want to show you what the individual markets are doing one by one. xetra dax up 0.2%. ftse mib is showing a similar percentage gains. now, in the uk we're getting the construction pmi after that very, very good manufacturing pmi. maybe we're in for another surprise. >> pop and sterling was the story of the trade yesterday. we'll see how it holds. plus, still to come after the break, hear how the g20 should prevent protectionism. that's an exclusive interview

with austral yan prime minster mall come turnbull. we'll be right back. vecise. vecise. ' not rhen the planets perfec, th'it. we need ally ttemperurconts engineering, ayns- a spsend t long cod an sap it all artive we need ally ttemperurconts propulonurnalysis- ple bon mel. at'ate're inon rht now fr design ugh prucsiemens techny helps manufacturers meet criticaleadlines inis'll be rbiest avor yet. at'ate're inon rht now

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california grown with no antibiotics ever. let's get comfortable with our food again. indian prime minster has told cnbc in an exclusive interview about willingly risking political appeal in order to improve the country. >> translator: in spite of facing political, i decided to take the part of better national policy. as a result i'm able to fix a lot of things. in spite of seeing backdrops in certain things, i'm able to think of the betterment. the impact of all can be seen in private investments. they too have the burden of the bad old days. >> also highlighted the banking sector for him since coming to

power. >> translator: i'm continuously trying to improve banking since i come to power. i held a brainstorming session for the banks for the first time ever and gave them a list of dos and don'ts. these things have tightened many screws. >> the prime minster also said she believes in doing things the right way, even if it takes a little longer to achieve those goals. >> there's a message written on railway platforms. shortcut will cut you short. that's my opinion too. i'm of the opinion we should not take the shortcut and results can already been seen. situation haves improved now. there isn't much to worry about. just want to bring you more commentary coming from the finance minister that julia has been speaking to over the last couple of minutes. said growth is improving, but still disappointing. referring to both italian droet because as we just heard this morning, the second quarter

growth has been confirmed flat. no growth at all. policy must do more. we must mobilize all tools. is he talking to the ecb there? i don't know. we'll find out in the interview. one should not be sceptical of the bmps solution. we will not ask for the esm. as promised, we were going to bring you that interview. here it is. >> growth continues so it's not flat. indeed it's improving with respect to previous forecast. yes, of course it's disappointing. unfortunately it's disappointing not just for italy, but euro zone and the global economy. we're heading to the g20 summit in a couple of days and this will be the main topic, which means that policy must do more and we must mobilize all the instruments we have at our disposal. >> you think it's an act of global problem rather than a specific italy problem, just the

fact you're probably not going to meet your target. >> it's hugely a global and european problem. hooep each country has specific issues. we're dealing with them both structural and short-term. this is where government sfre strategy is aimed with a budget policy released to parliament in october. strengthening in spite of the limited resources to investment and productivity. >> what can you actually do here? you said you're kind of restricted on the european level on quite how much leeway you have in terms of spending. >> we don't have much because at the same time we're further consolidating public finances, improving it because of the debt, but we're using carefully the limited resources and at the same time, let's not forget this couples up with a coherent and strong structure reform strategy, which is continuing. we are now just in the wake of completing the public sector reform presented to parliament. >> one of the other issues is

the banking sector. we keep coming back to it. i don't think i found one person yet whether they work in the financial sector or outside that isn't terribly skeptical about the mps deal. >> they shouldn't be skeptical. the mps fair has been going on for some time. as far as i know and i follow very closely although at a distance what's going on. the team is working very hard to complete the deal in a smooth and successful way in the upcoming months. >> it's only a small portion the nonperforming loans out there. are you seeing this as some kind of template or just seeing more broadly the nonperforming loan situation or is a bigger deal needed. >> not performing loans are of course a big problem for the italian banking system, but not just for the plitalian banking system. this is why we put in place instruments that will over time dispose of nonperforming loans.

we should not hurry. we should take the time needed to deal with that. that will generate the right prices so a market approach will work. market approach supported by policy intervention and instruments. >> we go back to july, there was talk of a 40 billion euro bailout of sorts. i don't think the word bailout was actually used. can we rule that out. >> absolutely. this is total imagination, if i may use that word. we're not talking about that kind of money and we're not talking about bailout. bailout is ruled out in the european context. we're working within the rules within the bailin system which implies strong participation by the shareholders and stake holders in recaptainizing the banks. this is helped by the fact we're putting in place a legal framework for dealing with npls which is more more efficient, faster and much more profitable to banks than in the past.

>> there is an alternative option. an esm option which do exactly what spain did and get help there. do you rule that out as well. >> the esn implies an economy with problems and danger. this is not the case of the italian economy. we don't need esm. as far as the resources are concerned these are not a problem. these resources will come from the private sector basically. >> just want to give you oon idea of the problem in italy t. sector weighed down with 360 billion euros of problematic loans. that's equivalent to a fifth of gdp. the problem really isn't an italian one. the center of economic policy research suggests for the eu as a whole, nonperforming loans were more than 9% of gdp at theened of 2014. why it did blow up like this in italy and not the rest of eu.

>> very clear to make that point. don't just look at italy. this is a european wide problem, but julia has been speaking to him herself. she joins us now from the shows of lake como. what was you take away from testimony interview. >> i just want to pick up on what carolyn was saying there about the 360 billion euros of nonperforming loans. i always go through the numbers. 200 billion euros is around 60% provision. we're looking at a sum of around 80 billion euros we need to focus on. it's important to go to the smaller number to get a real sense of what we're talking about here. even with the solution they've approached for monte dei paschi, we've seen those shares fall in price by around further 8% since that deal was announced. whether i'm here, whether i'm in italy. whether i'm talking to the members of the financial community, there's still a great deal of skepticism about whether

this deal is going to work. obviously that's a sganlt chunk of those nonperforming loans. still a significant more that need to be dealt with. obviously i discussed that with him and whether or not even with what we've got with monte dei paschi, whether there's going to be have to be some bailout for italian banks which some analysts still believe is going to be needed. even before i spoke to renzi last month and talking about the need for a greater bailout, rumor of 40 billion euro sum that would be needed. you heard him directly say that's not an option. we're not working on this. obviously he made the point that given the new bail in rules you can't do that anyway, but doesn't maintain they can't look for private solution of a far bigger scale, and, of course, as i pointed out still the esm option. do what spain did and say guy guys, our deficit is below 3%. we're reforming. we don't need to be in the

straight jacket that other program country haves been in, but we need more help with the banks. you heard him again there categorically rule that out. i would expect them to do that before a greater sense of crisis in the italian banking sector. he's not going to perhaps elude to the need for that at this moment. it was interesting to hear him be so confident about that mps deal when others aren't and so adamant there's going to be no further bailout of the banks here or needed. >> thank you so much. that leaves the burden on the private sector in terms of their backstop. thank you so much. now the italian prime minster has called on g20 leaders to reject protectionism telling cnbc in an exclusive interview that raising living standards should top the agenda. let's get to matt taylor who joins us from sidney. evening, matt. >> hi there, carolyn. heading to the g20 in china

which kicks off on sunday. ahead of that he had a message to his colleagues, his counter parts that the world cannot afford protectionism in the post-brexit era. he also says it's a crucial time for global economies to work together to foster economic growth. you might remember back in 2014 when australia provided over the g20. the plan the leaders came up with was to grow the economy by 2 percentage points above the average or traditional growth rate. now says that's out of reach, but the australian prime minster wants to reopen that discussion. here's some of what he told us earlier on. >> the answer is not protectionism. the answer is not fear. the answer is confidence and commitment to the goals that were set out at the g20 and beshould continue with this g20 and across the world as we recognize the answer lies in

more trade, stronger growth, more invasion. recognition of the extraordinary opportunities offered by the electronic digital plat tomorrows. jack ma was speaking of a moment ago. these are enormous opportunities super charging global growth. we have to make the case for them and ensure that in each of our nations we ensure that everybody is brought along with the benefits of that growth. we have to make sure no one is left behind and that we can ensure that people whose industries are being disrupted and changed by technology are supported in that transition so that they see the benefits, the really transformational benefits of a stronger global economy fueled by trade. >> malcolm turnbull speaking to us.

back to you. very important friday. it is jobs friday. expecting a print of around 180,000 for the month of august. the number people say are higher than that. some analysts have told us on this show this week if the number is above 200,000, that may actually prompt the fed to hike rates in the month of september. mr. fischer, he was the super hawk earlier this week, he said we might even get two hikes this year. >> it's funny you mention the whisper numbers on the bullish end. when you look at j.p. morgan as low as 150,000. a lot of people taking qs from the job sector. it was fascinating the ism number yesterday. >> the manufacturing number. >> very poor. surprising people to the downside. saw the dollar moves as well. perhaps if we get a strong jobs number, fed says not just about jobs. we're not going to look at a

single piece of data, even though jobs have always been seen as the most important piece, there are other factors, including productivity. >> the august employment number tends to be the most volatile of the year. maybe the fed may just want to look through that one. if it comes back in line with expectations, may not move the needle much, but may want to wait for more ism data t private sector that comes out on monday. meantime let's have a look at the sector picture in europe. utilities, health care, food and beverages leading to theup side. on the downside financial services, telecoms and autos. >> interesting oil and gas. we've seen a rebound in morning, but yesterday was another sharp selloff for wti. on track for worst week since january. a lot of people wonder reasonable degree we going to see the equity correlation with the oil price if it continues to

trend lower. >> actually trading at three-week low. that's crude falling for the fourth session yesterday, dropping 3.5%. we saw that fantastic bull run in the early part of august. that was really on speculation we're going to see a production freeze and doubts have crept in. now we've seen surplus reports again. >> dollar factor of course as well. >> look, let's get to other data. uk construction, the downturn is easing more than expected in the month of august. it has largely recovered in the month of august from the previous downturn that started with brexit or even before brexit. let's get you the number. we are at 49.2. that's another big jump from 45.9 we saw in the month of july. that obviously beats all the forecast. looking for a print of 46.1. got that big jump yesterday in the manufacturing pmi. now construction pmi, but the most important sector of the economy is services. that comes out on monday.

>> of course the one least exposed to the sterling benefit. talked about the manufacturing print yesterday. obviously getting a boost. we have to wait. nevertheless, data continues to show resilience in the wake of the shock brexit vote. >> sterling dollar at 1.p 2. it did top 133. that's also got to do with the weaker dollar yesterday on the back of the ism number. currently 1.3279. as we head to break give you a recap of headlines. italy's finance minister tells cnbc that markets should not be skeptical of the banking measures taken by the government. it is not just an italian problem. >> not performing loans of course are a big problem for the italian banking system, but not just the italian banking system. we put in place instruments

which will facilitate over time the disposal of loans. prime minster modi tells cnbc he is willing to risk political appeal to improve country. >> translator: there's ha message written on railway platforms. shortcut will cut you short. that's my opinion too. i'm of the opinion we should not take shortcuts. the results have been seen. the situation has improved so there isn't much to worry about. >> calls on g20 leaders to reject protectionism. telling cnbc exclusively that raising living standards should top the agenda. >> the answer is not protectionism. the answer is not fear. the answer lies in miranda rule trade, stronger growth, more innovati innovation. >> in corporate news, shares of rocket head back to earth after the german interpreter business

sells off after posting first half loss. we'll be back in two.

good morning and welcome back to "street signs." let's give you a view of how u.s. markets are called to open with the count down to payroll on the way. keep in mind the u.s. is going to a long holiday weekend for labor day as well. expect a lot of activity. the s&p called lower by two points. the douj lower by two points as well. the nasdaq lower just slightly. did get an uptick on wednesday. now everyone wondering where the direction will go for the rest of the autumn here. elsewhere, the russian economy minister has lowered the gdp forecast to 0.6% for 2016. that's according to russian news

agency. let's get back out to julia chatterley. how julia. >> reporter: hi, nancy. just to pick up on that point. i'm now joined by the deputy russian prime minster, so thank you so much for joining us. we were hearing there about the lowering of growth forecast. i was in saint peterers buburg few months ago. the mood was cautious. how is it now. >> the russian economy is more or less flat. basically have a slight decline if you take one year to one year. agricultural sector growing. we have e-commerce growing 20% rates. some other services and industries normal shape, but manufacturing is still down domestic demand very big. we are finding opportunities

externally with new impoexport markets. with are optimistic next year. >> obviously, a key part of the growth story is what's going on in the oil market in particular. i want to touch on this. when we spoke last year, you ruled out any kind of supply deal. has something changed? will you pushing for a supply deal. >> technically as i told you last year, we cannot stop production in some fields. given the level of investment and prices low and investments lower, supply can stable for certain period of time. the political deal is part of -- >> you're ready for a deal. >> yes, we are ready. it doesn't mean we'll take any decision to stop extraction, but it will come in a natural way. prices currently and investments

low. oil production this year is still up. the station is stable. for us it's important that the groebl pri global price will not come back and forth. coming back to fourth year is better for russia, is not good for our economy. and prices range between 50-70. >> just to be clear, you said you want stability, but as a result of natural causes in a sense. are you saying that you're not going to walk away from the meeting in algeria having signed on the dotted line. >> if everyone signs. all major parties should sign to have a deal. this would be a good signal to all the markets in what we are doing. and this signal is much more important than the technical em

plemtati implementation of the deal. >> i look at the saudis and see output at record levels. i wonder what they incentive would be to sign supply increase deal. >> the producing country is not good with very low oil prices. everyone wants normal prices, like today, like 50 is normal price. this is a situation for saudi. they don't want to spend too much resource and now they are spending reserves. >> the saudi ram co-organization as well. they like the oil prices higher. let's move on and talk about premier. behave seen a flairup in tensions once again. you accused the ukrainians of plotting some kind of terrorist attack. there are those who believe this issue will now turned around and impact russia once again and mean an extension of the sanctions. >> the important thing is we

respond to aggressive behavior of any side. we will do this dvorkovich. >> >> dor you think the mixed deal is debt? >> no the mixed deal is not debt. on the efforts to implement the key miles stones of finance agreement. it all depends on key behavior. they need to change legislation. they need to organize elections and to present the good will and establish trust with people so for eastern ukraine, that's a kick accident poiing point. we will p include to take efforts to achieve that as well.

>> i'm sure it's going to be a topic when you head to the g20 and i know you're doing that in a few days time, obviously the relationship with the west and the united states in particular remains pivotal. i want to ask whether you see the perspective presidential candidate, donald trump, as prorussia, a russian friendly candidate. >> next week is important, not only in terms of dialogue and issues of g20, but context on the sides of the meetings. our president will certainly have conversation with president obama, british prime minster, other colleagues. it's important to have this kind of dialogue. u.s. presidential elections, we work with the elected president and for us it's important that any new president will conduct a consistent policies that will benefit the global economy and

people of the united states of course is the main goal of any u.s. president. and we don't have any preference in that. >> really because when donald trump has said he'd think about recognizing. >> will the important thing is what people are doing for us and what they are saying before elections. again, we will work with any president elected in the states. >> that is a valid point. the deputy prime minster speaking there. i will hand back to you. >> julia, thank you so much for that. tropical storm hermine has hit coast. it should then move to starling castro south carolina before traveling to north carolina on saturday. here's the situation off the coast of florida. these are life pictures of the first hurricane to hit the state since 2005.

it's scary when the ghtso out. opleet anxusnd my ofcegetsloodel so manthings can go wrong. it's scary when the ghtso out. it's my worst nightmare. every second that popor is o,'. siens digitagrid ges and reroutes power, every second that popor is o,'. so service can be restoredin se. priori number is keeping those lights it t ingenuity defeansters that live in the dar

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slammed apple saying the eu rules is justified. when i spoke to him yesterday, the nobel prize winner said ireland should not appeal the decision. >> he is acting in a way i think is totally irresponsibility by trying to say apple the company in the world with the largest capitalization was -- people talk about corporate responsibility. the first corporate responsibility is paying the taxes you ought to pay. he should have paid more taxes in the u.s. and it was a mistake of the u.s.

treasury not to two after them. i've been critical of the u.s. treasury, but europe is saying if apple claims that the profitinprofits are generated in ireland and irish tax rate is 12.5%, then they have to pay that 12.5%. that's the law of the land. the responsibility of the european commission is to enforce eu laws. here's the basic principle. europe can only work at a political entity if each country within europe doesn't take actions which harm other countries. what ireland was doing was harming other countries. why? because it was encouraging apple to book profits that were made in all the other countries, book

it in ireland and then essentially almost pay no taxes. >> samsung is replacing all sold galaxy note seven smartphones over battery issues. launched in ten countries and 10.5 million units have been sold so far. it will be a large amount. let's get out to louisa bojesen who is standing by at the conference in berlin. certainly a topic of discussion over there, i can imagine. >> reporter: very much so. as you say 10.5 million units have been sold so far. important to note they're saying they voluntarily are agree toing to replace the units within the coming weeks. we don't know a lot of issues about what exactly the issues are. been in touch with the head of media at samsungme. got the details. >> what we understand is that

it's a battery cell issue. we don't have clear details about what that means. there were unconfirmed reports over the past couple of days that phone were catching on fire. and, again, we don't know what's caused those so far. samsung said there are 35 reported cases of this happening. >> 35, and, again, like you say, we don't know the details. we don't know if this means the batteries were just stopping to work. whether they were exploding. we don't know that at this stage. also important to mention, do tend to be conspiracy theorists when you have events like this. just launching the brand new watch, the day before yesterday, and then news like this comes out. where news flow like this starts. where does the trickle start. >> no, indeed. the note seven was released a couple of weeks ago. it was released to many glowing reviews across the press. samsung said they had unprecedented demand for this phone. they had to stagger the shipping date to match up with demand.

now it's almost kind of turn of fortunes saying we've got some issues with the batteries. it seems like teething problems. don't know exactly what caused these. the potential it could be damaging. we don't know to extent how long this is going to take, but there's a lot of customers who have said the devices are waiting for them. >> shares were relatively unmoved on the close in the overnight session for us. it will be interesting to see how shares open after this. because people would have known that there was this rumor making the rounds, yet we didn't see more of a reaction on the rumor. i wonder how the reaction would be on the fact they're saying we voluntarily offering to take back these devices. >> yes, indeed. it's quite important to note as well. samsung investors have been bullish over the past few months. shares hit a record high not too long ago. they've seen a turn around in the moibl business. struggling from intense

competition. they've come out with interesting devices that have moved the needle in invasion and got customers excited again. it will be interesting to see how big of an impact this is going to have on shipments, prochts going into the next quarter. >> it's interesting when you mention the moibl unit there and they've really managed to make a name in moibl. coming out of nowhere with regards to the invasion we've seen for the samsung phone and compare it with sony for example. asking him what do you do when you have a unit that's really, really small, even though it's profitable in a world of giants at the moment? you've got all these really big players. massive amounts of market share, apple, samsung, the chinese players who have come in in force. you have three out of top five mobile that areal chinese. where does this leave on a smaller page. >> in you speak to a lot of analysts, the smartphone market is huge.

billions of devices and a long tail they call it. whether some of these niche players can still manage to play and we've seen from sony, they've managed to play in a very tiny segment of the market. got the business profitable again. that's a good sign. they're going to -- talked to us and stay in this business. we can be at the very forefront of the next paradigm shift in mobile communications, whatever that may be. >> we've had a chance to walk around and see some of the newer tech items that are coming on to the scene. there's a lot that has to do with smart technology and connectivity. anything you've seen that has really stood out? we were speaking to a company, buddy guard, they do facial recognition for whose in your house, but also with the caveat that there's privacy included too. so after it recognizes your face that you belong in the house, it will shut the camera so you're not watched 24 hours a day,

which interestingly is something that yumpz consumer are concerned with versus u.s. consumers. >> the smart home, the smart technology. the internet of things. that's the big promise for us over the next four years. those are the kind of devices coming to market. also some of the other interesting things in the tv space. 8 k tv. it was jie anymore mouse. >> which means what. >> it's hd times eight. really high quality resolution. incredible colors: that's where the industry is moving. towards brighter more powerful tvs. offer incredible representations. >> so if you want your close up to be even closer, it's called hk. back to you. >> louisa, thank you so much for that. let's get back to top story today. traders are keeping a close watch on non-payroll number.

180,000 have been expected to be added in the month of august. noic unemployment inching higher. if today's labor report follows suit, could swing the fed to lift rates that month. head of foreign exchange strategy, we also had a pretty apaling ism manufacturing number. do you think if the payroll number is really good today, your forecast is 225,000. the fed can go ahead and lift rates if parts of the economy are still so poor. >> i think the fed not acting is incredibly low. we're more likely if we get a solid number to get a signal that on track to raise rates this dwreer and then wait and see. i think you need a combination of stronger news across the board between now and the fomc meeting itself. two and a half weeks time to actually get them to do something. i think it's odds against them

going this month, even fp you get a solid number. >> what do you do with the dollar then? how do you want to trade the dollar? you say the bar for the fed to move is so low. >> certainly if we get a strong number we'll get the market speculating. we have a lot of numbers coming out. i think the dollar will remain broadly on this gentle uptrend on strong data, but i think the significant thing is it would take a stronger number than our forecast to really do any damage to global risk sentiment. at the moment the big flow of money in the world is into emerging markets. things with yield. that's a way for from the big dollar trend. >> is this a premature move. given some serious head winds are out there. >> premature has been going on since i guess the beginning of february pretty steadily. it's been a big year for a lot

of emerging market assets. we're at the latter stages of the whole big yield driven rally, but even so, you know, you stick an eight percent yield on a few of the major developed emerging market government bonds and i can see where people find that more interesting than what we're fetching around with in gilds or jgbs. >> let's get your thoughts on sterling. the sterling trade was the mover when you watched the surprise pmi data. now we're getting construction pmi. yes, still in contraction, but better than expected. >> i think sterling is going to wash around for a little bit. we got the market extremely short. we have extremely bearish. the pmi numbers we saw at the end of june or beginning of july for june in construction and then for july numbers were so weak originally. they were much worse than expected. everyone got very bearish. now we're getting advanced.

i think we'll trade against the dollar 1.358 range for a while and time goes on and uncertainty remaintains in place, head down to mid 1.20s. the uncertainty is how much more of this short covering have i got to put up with. >> you actually think the boe is not going to become less dovish as a result of the data. you think they're going to continue to look through this. >> i can't believe a central bank would do anything other than buy insurance against the risk. and then ignore the fact the weaker currency gives you some inflation uptick. then ignore the currency givers pickup in manufacturing sentiment. sit and wait for several months to see how the data play out. >> your target for cable is below 1.30 for the next six to nine month sgls we'll get a low event. below 1.25.

>> we trade the euro by watching it get stuck in a tiny range. if we get our number, we'll get euro dollar down a little bit. really having a problem moving out of this range. >> greg: >> thank you for joining us this morning. let's give you a check on u.s. futures ahead of the nonforeign payroll report. markets did close barely positive. looking at a bit of a breather there. modest losses called for futures. that's it for today's show. i'm nancy hungerford. >> i'm carolyn roth, "world wide exchange" is up next. have a greet weekend, everyone.

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kbl. good morning. the final test. could it also be the catalyst for the fed to hikes rates. hurricane hermine slams fth l florida. just been downgraded to a tropical storm. live report and updates from the ground. >> clinton's stash. raked in more money than ever before in august, despite for e-mail drama. it's friday, september 2, 2016, and "world wide exchange" begins