hello. welcome to "street signs." i'm carolin roth these are your headlines buybacks make a comeback european financials rally after gains stateside for some of the largest lenders, which got the green light to launch $100 billion of returns to shareholders fashion forward for h&m shares which jump to the top of the stoxx 600 on forecast-beating results and a bullish outlook. a rally for rio tinto lifts the mining sector, after it agrees to sell $2.6 billion in coal assets to yancoal

good morning, everyone i'm carolin roth great to have you back on the show once again. we're roughly one hour into the trading session. let's show you how we're faring. a bit of a mixed picture the xetra dax up 0.2%. the ftse 100 up 0.50%. the cac 40 and the ftse mib are slightly underperforming let's show you what european banks are doing this morning we're seeing a rally across the board. deutsche bank up 0.2%. so, these banks, they have been rallying for a couple days now that's because the expectation of a steeper yield curve in europe but a couple other factors, such as shares at hsbc trading at two-year high after

morgan stanley upgraded the stock to overweight boosting the price target by 20% to 84 hong kong dollars london-listed shares are trading higher this is the big story which boosted banking stocks across the world. american banks are rolling out massive dividend increases and buyback programs after the fed gave a green light to shareholder payout plans at the 34 biggest u.s. banks in part 2 of the stress test >> reporter: for the first time since the financial crisis, the federal reserve has not rejected any of the capital plans submitted by the 34 banks getting stress tested, finding the companies to be sufficiently capitalized to return money to shareholders the fed did find risk management issues at capital one. capital one is required to resubmit its plan within six months or risk shareholder payouts getting frozen the company's levels exceeded the thresh holds but it did once adjust shareholder returns

before the stress test results were out before last thursday. american express did the same as one of its capital levels was below the fed threshold. the rapid growth in credit card balances and uptick in delinquencies and a stress test that included more severe losses for credit cards played a role in the assessment. amex cleared the barbie resubmitting its capital plan. senior fed officials said unlike years past getting close to the threshold won't be met with a supervisory penalty and banks have requested substantially increased shareholder payouts. these officials say banks will be getting close to rurngshing 100% of share revenues >> let's talk more about the outlook for the banking sector stateside and here in europe and the outlook for investments with james andrews. thank you very much for joining us we're seeing a rally across banking stocks in europe today

as well. how much of a read across is there from the fed stress test i guess that would be very much focused on u.s. banks. >> yes, it feels early to be extrapolating quit so much i think there's also a bit of contagion generally that is less on the face of it stress in the financial sector but on top of that, i would say the comments from draghi, maybe seeing interest margins improve with the fact that interest rates might improve and obviously we've seen gilt yields rise that helps >> i'll come to the draghi and carney comments in a bit i want to dwell on what happened with the u.s. banks. after hours and during the session we saw a jump up because 1$100 billion will be returned o shareholders i wonder whether this rally based on the capital return story has legs we saw the rally, the rally based on deregulation and corporate tax cuts coming off

the boil quite a bit if we get no sustainable, no substantive tax reform, do you think bank stocks can continue to rally >> clearly reform has been a nice tailwind. i think fundamentally, it's the improvement in the margins if interest rates continue to rise in the u.s., there's stability in the market, in the financial sector, yeah, i think -- actually we could see a more stable improvement in banks and hopefully their earnings will come through. less empairments, more solid base to grow going forward, net interest margins improving, all positive signs for the banks >> are mathere are many argumenr a bull case versus a bear case when it comes to u.s. markets. for the bull case, record profitable for u.s. corporates, on the other hand there's so much uncertainty when it comes to the policy outlook.

we don't know which policies will happen under donald trump or not which are you in >> i think i'm mixed you have to be more selective, that's clear, given where valuations are we have seen a great rally with the trump stimulus effect. that is clearly not going to come through as clearly as markets hoped. the realization has come through on that front. the shiller cape is at 30 times. the historic average has been 16.8 times clearly that's a concern i think it's been higher a couple times previously. in '99, black tuesday. so, the warning signs are flashing in regards to valuations i guess the key in valuations is not just price but earnings. for the shiller, don't forget it's a ten-year kind of number

we do, within that ten-year, have that big falloff from the global financial crisis in those numbers. when that comes out, we shift ten years, it doesn't include the falloff in earnings, hopefully the cape will come back a bit also i guess latest numbers, if you look at est numbers, q1 earnings rose 15.5%. that versus the s&p which did 5.5% in that quarter so again the ratios came back a bit. actually seeing earnings growth come through and prices grow, but in moderation. that's what we need to see going forward to be more comfortable with these heady valuations. i think for me it's a focus on fundamentals, i don't think you can put too much focus on trump stimulus given how much difficulty he's having >> we'll see how the market reacts to this before i let you go, let's talk

about some of the hawkish comments from mr. carney and draghi even though the ecb tried to temper some expectations that draghi turned hawkish. is the market getting ahead of itself here? is it pricing in too much hawkishness? >> it's always helpful the day before you come on live tv for central bankers to confuse markets. clearly they want to remain credible they can't ignore the signs of inflationary pressures, for europe that political uncertainty unwind we're seeing having elections gone the way markets had hoped. so, i think it's just -- i still think it's too early to credibly think rates will rise quickly or at all in europe this morning spanish inflation and german numbers are mixed

signals. sachsny w >> we're running out of time i want the best trade from you before i wrap things up. >> in terms of -- i think rate rises are still further down the line yes, there's going to be inflationary pressures, but then again oil is pulling back. it's carney calming waters saying yes, i'm aware of the noise coming out of the numbers. but at the end of the day, i'm comfortability with whefortable policy is. that's where we ended up after some of the ecb officials tempered comments. >> james, thank you very much for that james andrews. let's get corporate news h&m shares jumped after the company posted a 10% rise in pretax profit in the second quarter. that was well ahead of forecasts expecting only a 1.5% rise the swedish fashion retailer saw profit grow to 7.7 billion crowns crediting cost cutting and expansion.

tesco and booker are asking the uk regulator to fast track its competition probe. they want to quickly move to phase two of the investigation into the 3.7 billion bound deal. tesco expects to complete the takeover of booker in january 2018 rio tinto shareholders have approved the sale of the miners coal assets to yancoal rio tinto's chairman had not decided how funds from the 2$2.7 billion deal would be used this amid shareholder calls to boost dividends and buyback shares this ends a bidding war with glencore. we will go for that quick break. coming up, it's 20 years since hong kong was handed over to china. the last british governor, lord chris patton joins me here in the studio we'll be back with that in two. chances are, the last time you got a home loan,

you got robbed. i know-- i got a loan 20 years ago, and i got robbed. that's why i started lendingtree-- the only place you can compare up to 5 real offers side by side, for free. it's like shopping for hotels online, but our average customer can save twenty thousand dollars. at lendingtree, you know you're getting the best deal. so take the power back and come to lendingtree.com, because at lendingtree when banks compete, you win.

the future isn't silver suits anit's right now.s, think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile.

welcome back china must find a balance between deleveraging and maintaining adequate support for some sectors of the domestic economy says the imf the transformation of the economy is topping the agenda at the world economic form in china. geoff has been speaking to leading chinese entrepreneurs, economists and money majinnaging experts. already this tv host has a regular audience of 150 million people at times she seems to represent china's social conscience. i asked her how she felt about suspicion in the west towards china. >> everybody plays by different rules. now it's china's time.

people, of course, are to the used to it that's also quite egocentric of european thinking. americans leading, european leading, game over, it's now us. >> not only does they regularly run a dating show here in china where the parents are invited along to talk about the prospective husband or wife, but she also dispenses financial advice i asked her about what she does with the money she earns from her high profile tv lifestyle. particularly when it comes to owning fast-moving property here in china >> i didn't buy any apartment house in china i'm still renting with my whole family i think then that's the idea i only invest in my children's education, and the whole family,

international health insurance, and some small property in europement. >> despite china's conservative attitude towards the lgbt community, jin xing has become a phenomenon here. the first transgender tv host able to garner widespread popularity somehow the authorities here seem to be okay with that. i guess the question for her will be how she now breaks out of china and takes not only her dance troupe international, but maybe her tv shows as well this is geoff cutmore at the world economic forum. the chinese president, xi jinping has arrived in hong kong to celebrate the 20th anniversary of the handover from british to chinese rule. cnbc's emily tan filed this

report. >> reporter: president xi jinping has arrived in hong kong to commemorate the 20th anniversary of hong kong's handover this is his first visit as president and is accompanied by the first lady he will be in town for three days, culminating in the swearing in ceremony of chief executive carrie lam and her 21-member cabinet. to mark the anniversary there are many activities that are planned for this weekend, including that of a dinner hosted by the government tomorrow night this is the biggest police operation since 1997, the handover some 10,000 police have been deployed to the streets for the weekend of events and the high-risk with president xi jinping being here in hong kong. he's going to be staying at the grand hyatt, and it is high lockdown there no public guests will be allowed to stay in either of the grand hyatt or in the renaissance harbor view hotel, the two hotels next to the hong kong convention center where a lot of official events are taking

place. so we'll keep an eye on all the developments here. upon landing president xi says that he is encouraged by the implementation of the one-country two systems, and he is going to be happy to celebrate the hong kong handover anniversary. back to you. >> we have a special guest with us, that's lord chris patton, former governor of hong kong, the last governor of hong kong before it was returned to china. one of the pillars of the deal was democracy. article 45 of universal suffrage, this didn't quite happen where did it go wrong? >> i think the chinese spent a lot of time talking about one country two systems without ever having made the effort to understand what it means what hong kong's about. hong kong's about greater accountabili accountabili accountability, about the rule of law, freedom of speech. i think that increasingly got up china's nose i think you'll find today that president xi jinping, and i talk

about this in my book, that president xi jinping won't see many people in hong kong, those he does see will be as in north korea waving red flags so it will be a carefully choreographed visit. the real question is whether china keeps its word i think hong kong is a test case for that >> part of the deal was to keep life in hong kong unchanged for the next 50 years. is there a sense that hong kong is becoming more like a simply any other southern chinese city, not remaining hong kong or moving progressively >> there's a sense that's what the chinese would like to happen but people in hong kong have a real sense, i think it's in their dna, of the relationship between freedom, pluralism, democracy, and prosperity. and it's what's interesting is it's not just older people, young people as well young people who identify themselves of course as chinese, but as hong kong chinese they have a profound sense of

citizenship. hong kong is still one of the freest cities in asia. no question about it that's how people would like it to remain. >> yet there is no universal suffrage, as a result of that we saw protests threeyears ago, the umbrella movement, protests there. is there a sense of when you think back 20 years ago, the talks about the handover, there's something else you personally could have done to make democracy work for hong kong do you think there was a failure on your part >> i think we could have started on the process of democratization early, back in the 1980s. when we said that one of the guarantees of how hong kong would continue to be free is the development of democracy hong kong should have been more democratic one of the reasons why it didn't become democratic unlike other former british colonies is that the chinese were always against it they argued to excessive pritish

go british governments, that they would become independent, and the chinese wouldn't have that. >> you have been championing the young protesters, who are part of the umbrella movement >> incredibly brave. >> at the same time you don't think hong kong should be going towards independence why not? >> i think they're right to argue about greater democracy and to note the importance of more accountability to preventing corruption, to ensuring hong kong can go on prospering i think it dilutes support for democracy if that campaign for democracy turns into a campaign for independence, for becoming a hong kong state. that's never going to happen it plays into the hands of the hard liners in beijing and i think since it's not going to happen, it's a dilusion i will not support any campaign

for independence i talked to hem about th ed ted. >> in the quest for greater democracy, the west would have a greater role, if the west would fulfill that role. we get the sense that the west won't do that including the uk, because there's too much economic deals, deal making at risk is that the right assessment >> i think it's quite close to the truth. but in fact, the way china behaves in hong kong will give us all an indication of how much you can trust china in the century ahead. people used to say to me however difficult it was to negotiate with the chinese, at the end of the day at least they kept their word i think the jury is out on that, certainly in relation to the wto obligations, they slithered and slipped away from them i think if they break their word over hong kong, people will be very reluctant to take their word on other matters. >> how would you say is your personal rapport now to china?

how do you feel about china? you've been openly criticized by the foreign ministry, for example, for speaking out in favor of democracy of hong kong. >> they occasionally condemn me for a thousand years and occasionally say i'm fine. when i was in hong kong i would be denounced with cultural revolution language, then i became the european missioner for external relations the foreign minister of china came to see me and said the chinese, as it were, considered my case again and considered me a force for concord, not discord. i have never been against helping china as a modern economy as part of the global economy. i've said that in my book and i've said that elsewhere, too. what i'm not in favor of is kowtowing to china and thinking that's the only way to do trade or business with them. you mentioned your book.

let's show viewers, it's "first confession." it's a search for identity essentially. how much do you write about your experiences in hong kong. >> i write quite a lot about my experiences in hong kong when the whole issue of hong kong seemed to be at the heart of what i thought was a crazy argument suggesting that asia was somehow unlike every other part of the world and there was an asian economic model which was not believing in democracy and freedom of speech. but you look at asia frto japan there's all sorts of models. there's nothing confusion about shenzhen, there's something democratic about taiwan. i always that you it was a crazy argument i think people are the same the

world over >> lord pa ashgapatte, let's che gears for a moment and talk about the newly formed alliance between the dpshup and the conservative party a lot of people call it a fiasco in your own words, what would you call it? >> i think it's mistaken for three reasons. first of all, actions have consequences you give people a bong in order to support you, sooner or later they come back for more. >> you say it will cost the uk dearly and the conservative party. >> to think this is the last time the dup will ask for loot is crazy of course they want more spending, but so does scotland, wales, parts of london it doesn't do much to help the conservative party thirdly, i think in the future it will endanger the cross-party talks. >> how long will the prime

minister last in her current position >> i think she'll last as long as her colleagues think it would be dangerous for her not to last i think she's on borrowed time, but nobody knows how much has been borrowed. >> we have to leave it here. again, the book, "first confessions" by chris patten out in book stores today lord chris patten, former governor of wrohong kong. we'll go for a quick check out world markets live, our blog which runs throughout the european trading day we'll be back after this we'll be back with more street signs. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country.

discover how we can help find your unlock.

welcome back to "street signs. i'm carolin roth these are your headlines buybacks make a comeback european financials rally after gains stateside for some of the largest lenders, which got the green light to launch $100 billion of returns to shareholders fashion forward for h&m shares which jump to the top of the stoxx 600 on forecast-beating results and a bullish outlook. a rally for rio tinto lifts the mining sector, after it agrees to sell $2.6 billion in coal assets to yancoal we saw a spectacular rally on u.s. markets yesterday on the

back of the fed clearing all banks to return cash to shareholders for the first time since the financial crisis the fed clearing all big banks capital return plans the s&p 500 posting the biggest one-day gain in two months the s&p 500 this morning seen extending some of those gains, seen up by 4 or 5 points the dow jones up by 33 the nasdaq is expected to open higher by 2 points european markets are feeling some of the bank rally effect. most of the banking stocks are higher the banking sector is one of the best performing sectors here by in large, the xetra dax up by 0.2% the cac 40 is lower by 0.3%. the picture here in europe slightly more mixed. when it comes to the fx markets, you're seeing the euro and the pound sterling,still basking i the glow of the more hawkish than expected comments from mario draghi and carney over the last couple of days. even though the ecb has been trying to push back against the hawkish comments the euro/dollar at 1.1423.

up by 0.4% on the day. cable at 1.2985. up by 0.5% in italy, opposition lawmakers have criticized the government's decision to rescue banca popola popolare the center right party blamed the finance minister for being "completely subservient" to the banking world. cnbc spoke to him about his outlook for italy and the banking system >> estimates have been upgraded by international organizations, by local forecasters, we support those numbers. we still have to do our own. so growth will be stronger than expected by several additional points this year, and i believe next year when the impact of structure reforms of tax cuts, which had been introduced into the system over the last three years will really make the

difference in terms of higher investment and growth. >> will this help also the management of nonperforming loans which continue to be a heavy burden on the shoulders of the italian banks? >> this burden is heavy but declining. npls are declining, not increasing anymore number one number two, instruments put on the table by the italian government in terms of guaranteed mechanism, acceleration of litigation mechanism means the price of npls will go up, so the market for npls will flourish, this will help recovery of the money put by the government in the banks. >> german finance minister wolfgang schauble called on europe to rethink the regulatory loophole that allowed the italian government to wind up its failing banks by transferring its strong assets to intesa sanpaolo the deal allowed italy to bye

pa bypass stricter eu guidelines. schauble cautioned against the risks that could be passed on to taxpayers. let's talk more about this controversial deal with francesco costelli thank you very much for coming in i should add that for disclosure reasons your firm owns senior bonds in the two banks, so you must be happy with the outcome >> of course we are. on the other side it was fairly clear that they would be protected under any scenario we think it makes sense from the point of view, from the commission point of view and financial point of view that was the point of prime minister gentiloni when presenting the deal on the other side, the two banks were not bailed out. we don't have to forget that senior sub board nat boordinate

were zeroed in it's funny to see the government is criticized from both sides because they save the bank, which is not exactly true, and share holders, one attempted a message yesterday saying i have been robbed of my savings. it's a tough position for the government in my view it makes sense and also the european commission admitted that the liquidation, this kind of italian liquidation was the most sensible thing to do >> so in a way wolfgang schauble is right, loopholes have been found. there was a way this was a rescue and there wasn't a following of the normal procedures of the newly constructed bail-in procedures by the european commission and the ecb. this was just for the benefit of the region, wasn't it? it was protecting employees in that region.

>> on the other side we don't have to forget that german government was very good at finding loopholes in the past. hsh has been saved by finding a loophole basically so in that case, you had a bailout of tier 2 as well. >> if everyone is allowed to find loopholes, does the rule ever work? >> the problem is for the regulation, and the european commission had to admit that the regulation doesn't work. so let's apply something else. the problem is i think on the other side that we are going to a system which is much stronger, where banks are much better capitalized where finally the senior bonds are in their right hands which is not saving small retail saving accounts, but they must be in stuinstitutional han. in the future it will work

for the moment, as we were mentioning, it probably worked in the way of case of popular, but only in that case. all other cases of brrd have been not working >> i was more confused by these rules. now the risk for italian banks has been removed that's a drag on the italian banking sector for more than two years. the mps solution is imminent what does that mean for confidence in the italian banking sector overall snch the ov overall issue of npls is not going away, but the problem has been isolated. >> it's not going away, but in the matter of a couple of weeks we will remove almost 20 billion of npls, which say is less than 10% of the stock from venetian

banks. similar amount from mps will go in one else's hands. so there will be an instant clean up of the banking system for an amount of roughly 35 billion to 40 billion, which is very good in terms of percentage on the other side, total amount, the stock of npl is declining. with this cleanup we will speed up the process hopefully the market, also the private market will take off helping older banks that are in she'd need of shedding npls. >> do you think the government could come out with a profit or loss that is not too huge if the n fshgs lshg npls recover quicker than is priced in? >> of course there's a huge operational leverage on the

italian economy. i think on the deal with nps, there's a good chance to make money. the transfer price seems quite low with respect to what was the initial projection so they're probably buying the whole portfolio at a cheap price. >> if you could, you would buy those, too >> we will try they're apparently not very willing on sharingi insharing tt anybody else >> how much on the euro would you pay? >> we have not done it properly, but certainly it would be interesting for many, many specialists in the sector. >> thank you very much for that. francesco costelli german chancellor angela merkel says eu nations are well united and prepared for brexit talks. in a speech this morning she

also promised to put climate change at the top of the agenda for the g20 summit which takes place in jergermany next month. the department of homeland security has laid out new measures for an in-cabin laptop ban. tom costello has the details >> reporter: the new security steps being phased in this summer will affect 2,000 flights every day coming from 105 countries. every flight to the u.s. from abroad the new procedures could include more thorough carry-on bag checks, more bomb-sniffing dogs, more swabbing for explosives and eventually next-generation bag screening technology >> unless we all raise our security standards, terrorists who see commercial aviation as the greatest takedown, will find and attack the weakest link. >> reporter: the new measures

come after u.s. intelligence determined isis has found a way to smuggle explosives into laptop computers since march, passengers coming from ten middle east and african airports have been required to bag check any electronic device larger than a cell phone the u.s. suggested it would expand the ban to all flights globally, but airlines, foreign governments and frequent flyers all complained. >> officials always have to balance the security based on the intelligence issues they see with the inconvenience that this will cause airlines and travelers. >> reporter: now, if any airline doesn't meet the new requirements, homeland security could ban its flights or ban all personal electronics larger than a cell phone for smaller airlines and countries, a potentially expensive challenge. >> it will cause a burden on these airports the best i could say is that hopefully the tsa and dhs are out there talking to these governments trying to come up with a strategy to mitigate this >> reporter: in phoenix,

american airlines and the tsa are already testing advanced 3-d scanners to more thoroughly screen carry-on bags the kind of technology that could be eventually introduced overseas ten years ago today the first iphone was released. we'll look at how it has revolutionized the tech industry an what and what's next for apple after this short break whoooo.

you're searching for something. like the perfect deal... ...on the perfect hotel.

so wouldn't it be perfect if there was a single site where you could find the right hotel for you at the best price? there is. because tripadvisor now compares prices from over 200 booking sites... ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor. the latest reviews. the lowest prices. the future of work is a key topic at world economic forum. the ceo of roboterra spoke to cnbc about the impact of automation >> the goal is to actually help humans in the work environment that's more dangerous, that's more repetitive, so that actually humans can be focusing

on things that we're better at in this process indeed there will be a lot of jobs being done by robots, not humans anymore. but i think that's why as a society people will work together to prepare what are the training programs we can have to help the groups that are going to be affected by this >> ten years ago today, y the very first iphone hit the stores it has made apple a fortune as it evolved over the years. a decade on demand has not really dimmed with the iphone 8 expected out later this year let's talk more about the rise of the iphone with ian fogg from ihs market many people don't remember that or don't know, but actually it took a while to catch on, the itself phon iphone >> it took a while to catch on because apple only launched it in a few countries and a few

operator in the first quarter, it was only available at at&t, and they sold 250,000 it took a while to get the kinks out and distribution >> at the time blackberry and microsoft dominated the market now it's pretty much anything that runs on android and then apple. do you think that apple with the iphone system, do you think it can continue to grab market share from android or is android becoming too dominant? >> those two platforms, android and apple, apple i don't think cares about volume as long as they have good margin. they care about makie ing moneyn delivering great products. ten years ago the market leaders were blackberry, nokia were the number one handsetmaker, they shipped the most smartphones, the whole market has changed what apple did changed the business strategy of everyone else before the iphone everyone

thought you licensed software and that was where you made the money. the windows model. the microsoft model. since the iphone, google and microsoft started making computers and smartphones. >> is there something to say for the fact that over the last ten years the iphone has not had any single or any major security glitches, that is thrown into the spotlight with the most recent ransomeware attacks over the last two months. how important is security? >> on the phone, because you have your whole life on it, you have your money, banking details, you have your contacts, calendar, e-mail, everything it's important that this has no security issues. if you have a massive security issue, it could be much worse than a hack on the pc. ten years ago apple was criticized for the way they designed the software. ten years ago there were no third party apps they added that with the app

store in 2008. they were criticized for having a highly controlled system where the app had to be in the apple store. but the benefit of that is a secure product for the last nine, ten years. >> apple has been innovative over the last couple of years. can it continue to innovate to satisfy customers demands. we're looking at a new phone out in september that may have support for ar, new 3-d mapping. is that enough to satisfy the client what the customer needs now? millennials out there, those who have not been penetrated yet by the smartphones, they're extremely fickle and want more than a smartphone. >> one of the amazing things apple has done is they shipped 1.1 bi 1.16 billion in those ten years and shifted consumer spending patterns the last selling prize of $653, that's probably triple any other oem in the market. they created something so

compelling that people shifted spending patterns. the problem is the iphone 7 is similar to the model ten years ago. the big thing at the moment is having a display that covers the whole front face of the phone which has all these design implications, where you put the fingerprint sensor, the camera, how the design of the phone is, everyone at the moment is on the cusp of a different type of smartphone a different design. with a whole front of the phone as a screen and it becomes even more minimalist and elegant. >> last question, is apple doing enough when it comes to ai it launched the home pod is that enough to compete with the likes of alexa >> i would say actually the market leader when you look at machine learning and ai is google amazon played a bit of blinder they have gone we're not in mobile, we're not in pc. they have gone into the home the real key player is google. it's used machine learning to drive search

google now, google assistant for 20 years now apple has a different position they try to protect privacy and not do an advertising business that's almost like competing machine learning with your arm tied behind your back. it will be interesting to see if they can make it work. >> ian, thank you very much. appreciate it. >> ian fox from ihs market for anyone who likes cooking, or not so much, blue apron raised 3$300 million ahead of its debut on the new york stock exchange later today that's a third less than it had hoped. the new york-based meal kitmaker priced the offering at $10 each, and revised down the price after highlighting concerns over profitability andalson's acquisition of whole foods >> reporter: blue apron is

tapping into a crowded food e-commerce market that could reach $66 billion by 2021. check out the competition. there is plated which has raised $35 million. hello fresh is valued at 2 billion euros, but had a down round and called off the ipo then nestle-backed freshly, cheffed, and sun basket. but there are also notable companies that have gone belly up sprig, once valued at 1$110 million shuttered its operations this spring. so did maple it was backed by celebrity chef david chang and launched to much fanfare. ultimately it burned through cash very quickly and fell prey to high operating costs and razor thin margins it was acquired by the uk's deliveru and munchery, it has gone through layoffs and raised money in a down round what are the ingredients for success?

the common thread among many of the sulck social securitlk compe conventional mail to drive down operating costs, but the biggest threat might be whole foods and amazon. in europe, delivery hero set its ipo price at 25.50 that means the german takeaway company will list nearly 1 billion euros. rocket internet has not brought a company to market since 2014 join me tomorrow for an interview with niklas ostberg. the uk government is expected to announce its decision at 11:30 on whether to give the grown light to 21st century fox's

takeover of sky. sky shares are higher this morning ahead of the announcement up by roughly 0.9%. shares in 21st century fox fell over 2.5% in after hours trade they tried this a couple years ago. it didn't work because of the hacking scandal. what's changed >> a lot has changed they halved off the media assets ultimately they're run and owned by the same people but cosmetically it looks better and when you think about how much social media channels and alternative news source us have risen since 2010 in importance >> some arguments here about hesitation by the u.s. regulators is the media plurality and broadcasting standards, the impartiality. is there any sense that any of this would be breached

>> impartiality is the key broadcasting standard here, which means you have an obligation as a uk broadcaster to report news fairly and in a balanced way james murdoch, the chairman of sky and the ceo of 21st century fox has taken issue with this rule in the past saying he thinks it's an impingement on the freedom of speech and says we should do in the uk what they did in the u.s. about 30 years ago, abandoning the equivalent rule, the fairness directive >> that would mean sky is all about donald trump or any sort of right-ring politicians? that's what fox news is about in the u.s. >> one possibility is rather than kicking the decision back to the regulator, the cma, rather than vetoing it or approving it straight away, karen bradley the cultural secretary has the option of approving it with a set attached so there's likely to be

editorial independence maintained >> we had the share price up shares in sky trading well below the bid price of 10.75 why is that? >> because people are worried it won't close, whether it's political reasons or regulatory reasons, a lot of concern about whether the deal will get through. 11% discount at the moment that's bigger than most m&a deals. >> gemma, thank you very much for that a quick look at european equity markets. we are now slightly negative, off by 0.05%, this is despite the fact that banks are doing well on the back of the strength in the u.s. peers. i'm carolin roth "worldwide exchange" is up next. these days families want to be connected 24/7.

that's why at comcast, we're always working to make our services more reliable. with technology that can update itself. and advanced fiber network infrastructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most.

good morning a big bounce back. stocks rally as the s&p 500 scores its biggest one-day gain in two months. your trading day set up straight ahead. and in the clear for the first time ever, america's big banks pass the fed's stress tests and they are celebrating by sharing the love with stockholde stockholders. and blue apron does some serious chopping ahead of today's ipo. it's thursday, june 2920, 2017, 1/4 white sox 2017, "worldwide exchange" begins right