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tv   Street Signs  CNBC  August 3, 2017 4:00am-5:00am EDT

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welcome to "street signs." i'm carolin roth these are your headlines siemens sees orders slide more than expected in the third quarter but its healthineers unit helps the giant beat forecast a mixed picture for european banks as unicredit surges on stronger than expected profits, but argicole slides over one-off items. the cfo tells cnbc that the bank is in good shape >> the economy is improving in our main markets, mainly france
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and italy. so i'm confident that we are on track to reach the financial targets we have set. and adidas scores in china and north america after lifting 2017 guidance. we'll speak with the ceo caspkar rorsted at 12:25 cet. good morning we have a bit of data to get through in the form of composite pmis for the eurozone for july we've got the july services pmi, let me get to that first, 55.4 this is bang in line with forecasts. we did see strong numbers coming out of italy but overall german and french growth, when it comes to the composite number, that did slow a bit. what we're seeing for the composite number for the eurozone is that eurozone business activity lost a bit of
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momentum in the month of july. but still very strong. the eurozone final composite is 55. 55.7 that would be in line with what we saw in the second quarter growth did slow in three of the big four eurozone economies as was showcased in the regional breakup this morning didn't have too much of an impact on the euro/dollar. when it comes to the stoxx 600 market, that is very much dominated by earnings. we are down by 0.25% for the broader index. the euro strength has been a big head wind for european markets the market off by 0.6% let's look at the dax and how it's faring. the xetra dax is off by 0.6% we'll get through those earnings in a short while the ftse 100 off by 0.2%
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this is the picture, oil and gas is underperforming as are banks. cyclicals not faring well. overall august is not the best month for stocks, but with the dow hitting consecutive record highs, could markets be in for a summer surprise? >> reporter: could we get an august surprise to help us beat a summer swoon august is typically a lousy month. but the bulls are hoping they can confound all expectations and pull out another monthly advance. the hope is that weaker sectors will rotate to the forefront rotation centers around energy and financials will this work we don't know. for oil stocks to get moving we need oil consistently over $50 a barrel that hasn't happened yet after being stuck in the 42 to $45 range for several month oil
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is trading at a regular 45 to $50 channel and energy stocks had begun to respond so chevron and schlumberger are off july loads, but it's tnttive. t tentative the key to getting banks going is to get short-term breaks and to get the trump administration to talk about deregulation the expectations for modest rise in rates have begun to move regional banks since earnings season sort of ended towards the end of july. but this, too is tentative ownership of these bank stocks is way up and there's not a lot of confidence in the trump agenda but there are hopeful signs in sub sectors that have been badically bebad ical ly beaten up and showing life. at&t and the telecontinues have been gre te
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telecons have been good. >> let's continue that discussion with the chief investment officer from tatan asset management bob pisani was talking about the strength of the financials, you like financials, too in the u.s. do you think their strength and leadership can continue even if we don't get that third rate hike by the fed later this year? >> it is a bit predicated on the rate hike. i'm pretty sure we will get the rate hike but it's also around the broader picture of the yield curve. not just the interest rates moving higher, it's the financial conditions overall in the u.s. doing well on that side. when it comes to the earnings season in the u.s., as of friday 79% of the companies that reported beat expectations. as always that's a good number eps growth at 8.2% as you pointed out in a haven't note, much of that is driven by pretty narrow leadership, such as technology. why does that worry you so much? >> we want broad leadership in the eps growth, but generally we
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are pleased to see compared to expectations, which were pretty low, that's also why we got such a big beat, earnings are not disappointing. they're not as big and strong as in the first quarter but not letting us down. that's good. we just want to see broad eps growth, and energy again was letting down eps growth. i think that's coming back now that oil is getting back up to 50 i still wouldn't bet on the energy sector because oil is just a bit too volatile. >> we had a guest on the previous show making the point that much is the outperformance when it comes to u.s. earnings came from the fact that the dollar was weaker than other currencies in the last quarter do you think that's one of the key factors here or do you think fundamentally u.s. corporates are in good shape? >> i think it hasn't quite come through yet. that's something that would concern me for q3 and q4, the weakness of the dollar
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at the moment it is actually the u.s. running in a better momentum than had been anticipated. on the flip side that's also what is slowing europe down. we can already feel that in the order books. we saw it in with siemens coming out. that will put a bit of a dampener on europe that's what the pmis are telling us that's why they leveled off. >> i guess it is not visible in the second quarter numbers, because that real weakness just came in the first month of the third quarter, in the month of july so does that concern you for the q3 numbers and the outlook that we're going to be getting for the european companies >> it's something we have to watch. we're now starting to see it in the pmis, which are forward looking. we have not seen it in earnings yet, but it's something we need to be aware of at the moment the euro strength is such that it would not put a major dampener on the earnings >> what would put a dampener on the earnings
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anything keep you up at night that you think the earnings strength, the margin expansion topped out >> china continues to worry. china held up much, much better than expected despite the crackdown on the shadow banking market that's been good but there's the concern they've only done that in order to keep it together until they have the big party congress in the autumn, and once that's gone, there's the concern that maybe it tails off and that would put a dampener on earnings >> do stick around want to talk about the next topic, that's the bank of england. it's set to announce the latest decision on interest rates analysts polled by reuters expect the boe to hold rates at a record low of 0.5% the case for a rate rise has seen to grow somewhat with observers pointing to unemployment at a four decade low and inflation above the boe's target that said inflation has dropped somewhat in the month of june, now only 2.6%. gem ma ma is with me for more o
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this the 2.6 in june has eased the pressure somewhat, hasn't it >> yes and you know the boe is keeping a close eye on the data. it's their way of modifying the language too much. the inflation print has come down, but other economic indicators on the whole have been weaker than anticipated in may. so, gdp growth, consumer confidence, retail sales, these are proven weaker than anticipated. what has been the surprise, the upside surprise is labor market growth that continued to show resilience is that enough to upset the broader weakness theme no add on to that brexit negotiations not getting off to the most stellar of starts and the picture is weaker overall. what is your best guess then on how this will be reflected in the minutes and the vote this is what shocked to the markets and led to the gilt selloff last time around what is the best guest on what
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it will be this time around? >> the difficulty is christian forbes has left. this is the first one without her, so we already lose one of the three. so, the new one is assumed to be neutral dovish and the final member is not joining until september. so already we have the balance shifting towards the neutral dovish side. in order to retain status quo, we will need one of the doves to move over to the more hawkish side whether we get that or not, my personal expectation is that it will be 6-2 this time. i don't think we'll see the most likely candidate by the market stepping over to the hawk side and voting for a raise >> from the smart money side, the asset management side, what do you expect to see from the boe? anything you expect to hear today, would that be a game changer? >> it would be a game changer if they keep the language the same
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they had last time last time they were concerned, that's what the vote showed. my money is 7-1 rather than 6-2. >> 7-1, wow. >> because i think with the way that inflation numbers have changed, the outlook has changed, there's no way you can raise rates for a while. sterling hasn't been under so much pressure that she need to do something i think they'll try to give a signal of monetary ease for some longer rather than adopting the language again that they had last time. >> the question also comes down to sterling and as to why it's so strong at this point even if we're not expecting a hawkish tilt from the boe. sterling closing in on an 11-month high versus the u.s. dollar we had some mixed data points in the form of pm iis seems like sterm sterling is not reacting so much to the data
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do you think this is just a dollar weakness story at this point? >> i'm afraid so compared to the euro, we're still pretty weak. it is more dollar weakness than sterling strength. >> do you agree? >> i would say so. we look at the trade weight, the trade weighted basket since may, it declined to just under 1% barely budged but not increasing anything like we have seen versus the dollar. what is driving sterling what are you hearing what i'm hearing around the desk is the fact it's not economic data anymore, it's very much brexit uncertainty that means we'll be range bound. >> we also need to remember we did get a tremendous selloff so there's a bit of a recovery walking back from that part of that was shock in terms of the selloff i think there's a point to take advantage of the dollar weakness but other currencies are not putting in such a strong performance. >> gemma, thank you very much for that
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join us at 11:55 for decision time. we'll bring you the boe rate decision and mark carney's press conference live. that's with gemma and myself as you can see on your screens. the ecb has lowered the emergency funding cap for greek banks. the bank of greece and domestic banks can draw up to 38.9 billion ewe euros in emergency liquidity. do e-mail the show, e-mail us questions, comments on anything that you're seeing here the address is streetsignseurope@cnbc.com you can find us on twitter, streetsignseurope@cnbc and tweet me directly, @carolincnbc. still ahead, scuffles break out on the floor of the brazilian congress as lawmakers vote on the future of the country's president. we'll bring you the details after this short break these days families want to be connected 24/7.
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one that keeps you connected to what matters most. siemens shares are under pressure after the company reported a 9% slide in orders and missed third quarter earnings forecasts the german group said it expects to list its medical technology unit healthineers in the first half of 2018 the ipo is seen valuing the business at up to 40 billion euros. shares are off by 2.7%. second quarter sales at adidas rose 19% boosted by strong performance in china and north america. it doubled its market share in the u.s. sport footwear market to 3%, that seems a bit low. further signs that adidas is taking market share from nike and under armour
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we'll speak to kasper rorsted later today. stay tuned in for that at 12:25 cet. shares in next are surging after sales returned to growth in the second quarter. the british clothing retailer said full-price sales rose 0.7% from last year driven by strength in its directory business next kept its profit guidance unchanged but lifted its sales forecast by a half percentage point. good news for this company shares up by 8.6%. let's change gears venezuelan president nicolas maduro stands by the election results there even as accusations mount about inflated vote totals. the co of smartatic which provided the voting system said the government overestimated turnout by 1 million. and the brazilian president, michelle temer survived a vote that could have led to his ejection from office
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he stands accused of taking bribes from a meat packing firm but he denies wrong doing. scuffles broke out on the floor of brazil's congress ahead of the vote. protesters called for the president's resignation. following the vote, president temer vowed to remain in his role and push ahead with reforms. >> translator: with such an eloquent decision i can say now we'll move forward taking the necessary action to finish the work that my government started more than a year ago we are pulling brazil out of the most serious economic crisis in our history. even when it sounds repetitive, i say it's urgent to put the country on the path to growth. >> questions remain over president temer's future recent polling puts his approval rating at 5% and he is widely expected to face further corruption charges in coming weeks. the head of latin america veras maple crop joins us around
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the desk let's start with brazil and temer avoiding trial for the time being his first order of business is the overhaul of the pension system how extensive do you think that will be? >> i think yesterday's vote told us about the actual level of support that the president has in congress. it was interesting because he survived, but we saw dissent in every single party in his support base, including the ptsb, a major partner who have four ministers in his cabinet. almost half the party voted to have him face trial. it's unclear without yesterday's vote, the government wouldn't have enough support to pass the pension reform it will be a tall order for temer to rebuild trust and convince the support base that the pension reform should be completed completely separate from corruption allegation against him. >> the problem is that window of opportunity of pushing through the pension reform may not be
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long as we heard in the spintroductin there's the risk that the corruption charges may come back how long do you expect that window to be >> well, in reality if we have no corruption allegations in the coming weeks, up to december after that point, congress goes into recession by the time politics come back and start working, they're about six months shy of the next general election no deputy, even if temer is not seeking re-election himself, congress is. deputies will not want to pass a an unpopular reform before seeking another term >> we saw that number, 5% in approval rates that must be a record low for any president anywhere in the world. i'm just thinking that if we go into next year's election, but this year we saw that he avoided trial. what does that say about voter discontent you say in your notes there is
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the risk of voter radicalization what do you mean by that >> so, really the electorate in brazil is becoming extremely polari polarized. even with protests yesterday, they were not nearly as big as the past few years people are tired of protesting they feel their voices are not being heard. so there is a risk that next year voters are not going to vote in favor of a political platform but against the traditional political class. so they could go with a presidential candidate that is, you know, proposing more radical stance against corruption. a candidate that maybe we don't even know who they might be at the moment there's a lot of unknown ts heading into 2018. >> it's ironic because temer was supposed to be the candidate going against corruption but doesn't seem to be the case. speaking of protests, i want to switch over to venezuela it seems after that assembly vote protests could flair up even further, even though president maduro was trying to
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quiet the protests do you think the situation just based on the assembly, based on the accusations of voter fraud will escalate further? >> i think the main challenge for maduro is the country is becoming more and more isolated, particularly within the region so that reduces the room for maneuver of other countries to broker a peaceful resolution to this in fact we're expecting in brazil that the bloc could potentially expel venezuela. as you get viewer and fewer people who could broker a dialogue, the risk of dissolution and protesters becoming more and more violent will increase because they see no other way of getting change in the current situation >> you say there's very little scope for an international diplomatic solution because venezuela has become so isolated the european union is talking about certain measures
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the u.s. is talking about potential sanctions on the oil and gas sector would any of that be met with open ears by the venezuelans would they listen and yield to anything that the outside world says >> to some degree it could harden maduro's position because of the government's position at the moment that the protests are being funded from overseas, that the opposition is trying to orchestrate a coup, so any kind of reprisal from the region or outside the region can actually strengthen the government's rhetoric and it's position that is being -- that it's being attacked from overseas, and that is really needs to stay the course >> what's the most likely scenario for the status quo to continue >> for the moment, yes one key issue that we can't really predict is to what degree can social unrest escalate to what degree with the opposition protesters organize themselves certain elements within the opposition are starting to organize themselves and become
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more violent we saw that over the weekend but also to what degree can the governments repression and the use of force to contain protests also escalate. >> fascinating discussion. thank you very much for the insights we are going to go for a quick break. check out world markets live this is our blog which runs throughout the european trading day. we'll be back with uk data in the form of the services pmi after this short break
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welcome back to "street signs. i'm carolin roth these are your headlines siemens sees orders slid more than expected in the third quarter but its healthineers unit helps the giant beat bottom line forecasts. a mixed picture for european banks as unicredit surges on stronger than expected profits, but argicole slides over one-off items. the cfo tells cnbc that the bank is in good shape >> the economy is improving in our main markets, mainly france and italy. so i'm confident that we are on track to reach the financial targets we have set.
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and adidas scores in china and north america posting double digit gains in those markets after lifting its 2017 guidance. we'll speak with the ceo kasper rorsted at 12:25 cet. we've got more data on tap this morning, this time from the uk this is the july services pmi. this is the big one when it comes to the pmi print we have a print of 53. 8 this is just a touch higher than what we were expecting of 53.6 and a bit of an improvement versus the june number which saw a four-month low so the uk july services pmi pointing to a sluggish q3 growth according to ihs market. we are seeing a bit of a tick up
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in sterling/dollar, 132.40 but all eyes on the boe rate decision and the inflation report later on today. this pair is trading at an 11-month high. quick look at u.s. futures, these are the early indications after the dow smashed through the 22,000 level for the first time yesterday much of that was the apple effect we're seeing a bit of profit taking today the dow jones seen off by 15 points or so the s&p set to fall by 44. the nasdaq could take off 13 points or so when it comes to the european equity markets, this is the picture. it's a mixed one slightly weaker one out of the gates. we're seeing a bit of red across the boerard. ftse 100 off by 0.1% oil and gas is not doing well because the oil and services company, neste has disappointing
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numbers. the xetra dax is off by 0.43% after a slew of earnings there shares in credit argicole are trading lower despite the company posting a better than expected net income in the second quarter improving activity in france and italy along with cost cutting measures at the bank helped to lift results speaking to cnbc, the bank's deputy managing director said that the company is on track to meet its medium term financial targets. >> the increase is even sharper if you take a look at the underlying figure, with the net profit which was below 1.2 billion euros. it's an increase of 43%. it's an increase that we managed to achieve through a very sound set of figures with a top line increasing by nearly 7%. globally the economy is improving in our main markets, namely france and italy. so i'm confident that we are on
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track to reach the financial targets that we have set for our medium-term plan for 2019. >> it's a different story for unicredit. the italian bank posted a sharp increase in second quarter net profit boosted by lower costs and a decline in charges for lone losses. the results come as unicredit undertakes a restructuring plan involving thousands of job cuts. italy's largest bank said its capital ratio stood at 13.8 %. shares up this morning let's talk autos a surge in five series motorcycle sales helped bmw, this despite seeing weaker demand for luxury cars in the u.s. bmw confirmed the full-year guidance for a slight rise in pretax profit. and shares in ferrari are trading higher after the luxury carmaker posted a 24% increase in core earnings in the second quarter.
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revenues for the period rose 14%. that was in line with expectations the italian automaker also reiterated its full-year guidance. tesla reported a narrower loss than expected in second quarter results. they posted a beat on revenue which climbed to 2. $8 billion speaking on the conference call, elon musk tried to ease investor concerns about production saying the firm was on track to achieve a 10,000 unit production week by the end of 2018. you may remember last week or early this week he talked about production hell. shares of tesla rose around 8% in after hours trade phil lebeau has a wrap on the results. shares of tesla moving higher after hours up more than 6% after the company reported a smaller than expected loss of $1.33 a share. revenues beating the street at 2.$2.7 billion
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most on wham street weall stree expecting 2.5 billion. most analysts on the call with tesla focused on the production of the model 3, which the company is in the midst of ramping up production. the company expects to deliver 1,800 in the third quarter and then 5,000 per week by the end of 2017. and then at some point in 2018 hit a production schedule of at least 10,000 vehicles per week here is elon musk talking during the conference call about the production targets and whether he thinks tesla can meet them. what people should absolute i will have is zero concern about, zero, is that tesla will achieve 10,000 unit production week by the end of next year
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>> one final note on the model 3, there was a new number for total reservations for the vehicle. the net number is 455,000 reservations for the model 3 there have been about 63,000 cancellations. so the gross reservations coming in at a little over 518,000. but the net reservations for the model 3, 455,000 vehicles. over 5 million german diesel cars will be getting new software carmakers including bmw, doim l daimler and volkswagen agreed with the government to upgrade software that will filter out harmful emissions. >> translator: i cannot say enough that the results of today's meeting are a signal in the right direction.
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i know that trust has been lost. i understand that many think the car industry is the problem. it's our task to show that we are part of the solution >> do stick around after this short break, we will speak to the cfo of continental, one of the biggest auto industry suppliers. also very much active in the autonomous car market. we'll get the take of the cfo in a few minutes.
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let's continue to talk about the auto sector. continental in germany posted a decline in second quarter earnings hit by higher spending on r&d and production capacity, but they slightly raised the sales outlook for the year thanks to growing demand for li electric car components. we are joined by the continental
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ceo, wolfgang schafer. my question is not so much about the past but about current trading in the future. some of your rivals have complained about increasing competition, slowing car market in the european and u.s. markets and increasing raw material prices what are the trends that you're seeing? >> hello, carolin. first i think future midterm, long term and short term is something which we have seen on order intake our order intake in the first six months of this year was 50% higher than sales in the same period i think this is something which makes us quite optimistic for the next months, and this was the reason why we could increase our forecast, as well for the next years to come so, good outlook for us. why is this? it is very much driven by the
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electronic products which we have driver-assistance systems are asked for in the market. electronic parking brakes are booming in our business, more body controllers so all the electronic content is faster increasing than the cars worldwide are built. we're one of those suppliers who has very good products and offerings. >> that vain, let me ask you, do you hope to lessen your reliance when it comes to the traditional tire market? you're doing pretty well when it comes to the electric cars and components markets >> we like the tire business for our companies specifically because the oe business, don't forget, that is a cyclical business we had eight years of very good development, but carmaker business is cyclical and the tire market has a completely different cycle by that our top line has some balancing out. if on the one hand we get
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another issue, tire business will compensate for that we saw that in the crisis of 2008 and 2009, tires were a great help the tire market is attractive. it's a high margin market, a market where we can grow >> you say that electronic parking brakes are booming i wonder if there is something else that could provide a break to your numbers, that might be the strong euro/dollar pair. we are just above the 1.18 pair. hour is that hurting your business do you think? >> in the first half we still had tailwind from the currency development. we are, as we say in the financial market, naturally hedged so mostly our product shn siions close to where the customer is producing. we want to have low delivery times, low costs for
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transporting our products to the customer, if this is the case, and it is the case for most products this means the currency we're producing, it's the same currency as we get money from our customers. this is more or less naturally hedged our profit margin is hardly effected by changes in currencies there is some translation effect if the dollar is changing, it just translates into more or less euro. but this is not affecting our margin >> i guess could be affecting your margins is the raw material prices in your case that's rubber prices at the start of the year when i talked to your boss, he said roughly a half billion in headwinds when it comes to raw material costs you now lowered that estimate slightly are you still able to raise prices despite those pressures easing somewhat? >> good question we had, out of these 450 million
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which we see as headwinds for this year, we had already 300 million in the first half of the year so most of it is already in our pnl, and another 150 million to come in the next halves of the ye half of the year we have raised prices, and the effect of these price increases will be seen in our pnl and in the next half, the second half of this year the effect will be that profits, absolute profits in our rubber group in the second half of the year will be above the level of the second half of 2016. >> i have to ask you about the diesel summit that took place in berlin yesterday, some of the biggest automakers in germany. some of your clients have now said they'll have to fix some of the software, the diesel engine softwares. what does that mean for you? would any of the price pressures that the big auto americas will face be passed on to you, do you
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think? >> well, first i think it's moving in the right direction. if we get more cars on the road, cleaner software updates, this is the right direction as well the outcome to potentially try with incentives to take euro 4 and 3 cars earlier from the road this would be without intent serves it incentives. there is high cost pressure on the automotive supplier, not only in the last weeks, we know this for years we don't at the moment feel this is very much different than it was before one other carmaker who is in one year specifically tough talking with us about prices i don't see any change in that trend at the moment. >> you also work on diesel engines. you have successfully lowered the emissions coming from nitrogen oxide i think you reduced them by
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about 60%. that's good way forward. i wonder whether diesel engines have a future in germany and in europe overall >> well, i think the diesel still is, which in the december cushion is n discussion is not said much. the co2 emissions are much lower. co2 is what is in the end worsening the warming of the earth. so other emissions, and we have for those emissions, yes, we do have the products to clean that up we can supply that and if this is done right, i think the diesel engine still will be in the years to come very attractive alternative to the gasoline engine. >> wolfgang, thank you very much for your time. wolfgang schafer. in other news, president trump is getting some rare bipartisan backing as he prepares to order an
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investigation into chinese trade practices. senate democratic leader chuck schumer supports going after china and says the u.s. should skip the investigation and move straight to taking action against beijing. trump is expected to issue a presidential memo on the matter within days. president trump is backing a plan that would cut immigration to america in half over the next decade using strict new conditions peter alexander has more on the raging controversy >> reporter: president trump tonight vowing to dramatically cut legal immigration by prioritizing english speaking immigrants with skills that help grow the economy >> this competitive application process will favor applicants who can speak english, financially support themselves and their families and demonstrate skills that will contribute to our economy. >> reporter: the president's proposal going beyond the campaign promise to crack down on illegal immigration >> these illegal workers draw much more out from the system
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than they can ever possibly pay back >> reporter: mr. trump's message tonight reinforced by one of his top aides. >> we're saying our compassion, first and foremost, is for struggling american families. >> reporter: senior policy adviser steven miller clashing with reporters. >> you're trying to engineer the racial and ethnic flow of people into this country. >> that is one of the most outrageous, insulting, ignorant and foolish things you've ever said >> reporter: the new bill backed by two conservative senators already facing fierce backlash on capitol hill. >> the biggest flaw in this proposal is the notion that there are long lines of americans waiting to pick fruit and to work in hospitals and hotels and restaurants and meat processing plants. exactly the opposite's true. >> this immigration proposal is not going to go anywhere because it really would devastate the economy. >> reporter: the president trying to get back on message with his base, drawing a hard line on immigration.
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president trump has signed a new package of sanctions against russia into law, though he criticized the way congress wrote the bill russia's u.n. representative says the move will damage ties between the two countries. >> it will hurt relations inevitably we will be working in conditions that exist in the hope that it will turn one day. but those who invented this bill f they were thinking that they might change our policy, they were wrong as history many times proved they should have known better, we bend but do not break. >> the cfo of rosneft said the sanctions will have negative consequences for the u.s he said the punitive measures were starting to backfire on those introducing them and will impact rosneft's american
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partners the business school at the university of oxford is launching its first major online course the subject is fintech the university says the rise of artificial intelligence has created the need for executives to get help with the rapidly changing environment the technology behind the program is being delivered by u.s. firm get smarter. we are joined by the dean of the business school from the university of oxford peter, great to have you on the show i wonder whether this was implemented because there's so much demand from students or did companies come to you and say we need more expertise in that field? >> it's a combination of both of those things plus our assessment that the time was right to do this sort of thing the world has changed considerably and we have to keep up with that help companies get in front of it >> it's a rapidly changing environment, you're right. i also wonder whether a course which is determined in advance, if that can keep up with the environment changes.
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can you keep up with the latest trends >> we have to work to do that. this course we're designing right now, i just read a piece for the financial times a few weeks ago saying how we had to cob insta constantly change materials especially in a space like fintech to keep up to date there's going to be timeless concepts and we'll work to bring in timely information. >> the verdict on fintech is mixed. some say -- again this report, 2 million to 6 million jobs will be lost over the next decade due to ai and block chain. on the other hand it creates plenty more jobs in fields that we may not even fathom is it too early to say whether that is a blessing or whether that's a curse >> it's not too early to say it's a blessing for consume e and small businesses as the end users, we're seeing new opportunities for them to raise capital, to save money, to manage risks, do payments. so i think they're probably
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unambiguous winners. which businesses, whether traditional banks or fintech firms are -- how they fair in this is more complicated >> you say this will be a gain for consumers, but what about employees in at the end of the day employees are also consumers. what if 2 million to 6 million people lose jobs >> that's a big issue we have to deal with as society part of the research at oxford looks at how different sectors will be affected financial services is one sector that will be affected. this comes to government policy about how we retrain people, provide new opportunities. but the wave of technology probably can't be stopped. >> is fintech sufficiently regulated at this point? some banks that are trying to hide behind regulation, they say we can't be disrupted in a major way such address the auto market, for example, because banks are different than carmakers. do you agree with that view? should they be a little bit less
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complacent about it maybe? >> one thing that we've been emphasizing is taking a functional perspective we've been hammering this message to regulators. whether you're a bank or a fintech firm, if you're providing a payment service you should be regulated in the same way. to that sense probably some criticism banks have leveled against fintech providers is correct. this will be a message that we're delivering not only to regulators but also to potential competitors in the market, you can come from a different technology and platform and deliver the same basic function to businesses and consumers and find a way to compete. what do we learn in this course? do we learn to be an entrepreneur how to go into a bank, work within a bank and work on fintech solutions? how adoes this work >> the first thing you'll learn is stay focused on consumer needs what it is businesses and consumers need second apply those as a start up
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or a bank. if we look at "the financial times" this week, more than 20 unicorns in the fintech space. look at ann financial with a market cap of 60 billion there's a space inside banks in order to figure out how to more efficiently deliver operations and hopefully services >> do sign up, 2,500 pounds for a ten-week course? >> that's correct. >> thank you very much, peter. now the average pay for a ftse cfo fell 17% last year, that's according to a new study. that decline was mostly driven at the top end in particular by sir martin sorrell, the ceo of wpp whose pay package dropped from 70 million in 2015 down to 48 million pounds also topping the list were arnold donald of carnival who brought in more than 22 million pounds, followed by rakesh kapoor who earned nearly 17
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million pounds this pales in comparison to this number that is transferred to break all transfers, brazilian striker neymar is edging closer to a world record move to psg in paris. it is expected the total cost of the transfer including wages will be around 450 million pounds yes. his barcelona teammate lionel messi has wished his friend good luck in the next stage of life. sterling hit an 11-month high after better than expected pmi numbers. we're all waiting for the bue later on today that's it for today's show bye-bye. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.
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the bull run rages on. the dow closing at 22,000 for the first time ever. will the rally continue? we have your trading day setup straight ahead. shares of tesla charging higher as the leelectric car company tops expectations. and mark zuckerberg's 2020 vision what the facebook founder just did that has everyone thinking he's really going to run for office it's thursday, august 3, 2017, "worldwide exchange" begins right now. ♪

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