ade california and do your thing. welcome to "street signs." i'm carolin roth and these are your headlines north korea considers a strike on the u.s. territory of guam after donald trump warns of fire and fury in response to further threats from the are a geechl. th regime. this has the rogue state reportedly developments a nuclear warhead small enough to fit on the tip of a missile. and the danish drug maker posts better than expected second quarter operating profit. hard to stomach?

shares fall as a grocer misses profit expectations but the ceo says that the integration of its merger remains on track. good morning, everyone it is wednesday, and it seems global markets hit by risk aversion coming from tensions between the north korea and u.s and evinvestors are taking money off the table when it it comes to equities. we're off by roughly half of 1%. but we're seeing save haven flows into the yen, treasuries and gold we'll get to those first though want to show you what is happening with the european markets one by one. ftse 100 off by 1%, xetra dax following by 0.8% and the cac 40 off by a similar percentage. weearnings to get through, but sector sector first.

basic resources managing to eek out a small gain 0.1% along with real estate. rest of the sectors are deeply in the red and obviously it all comes back down to this news, north korea says it is examining plans for a missile strike on the u.s. pacific territory of guam. the latest threat comes just hours after president trump issued his starkest warning yet to kim jong-un's regime. kirk gregory filed this report >> north korea best not make anymore threats to the united states >> reporter: in response to president trump's warning to north korea that any threat would be met with fire and fury earlier today, north korea's official news agency kcna put out a statement saying that it's carefully examining plans for a missile strike on the u.s. territory of guam and demanding that the u.s. halt any further military provocation as it is now seriously planning to strike the pacific territory with

missiles korean narration in this footage says the reclusive country would conduct a lightning war in three days the statement added the strike plan will be put into practice in a multicurrent and consecutive way any moment once leader kim jong-un makes a decision north korea has made no secret of plans to develop a nuclear tipped missile able to strike the u.s. and has ignored international calls to halt its nuclear and missile programs yesterday two u.s. b-1 bombers flew from guam over the korean peninsula as part of its continuous bomber presence according to a u.s. official guam, which is home to andersen air force base and more than 6,000 troops, is an important strategic hub for the u.s. military in the western pacific. it is unclear how president trump will respond with this latest threat. kurt gregory, nbc news and let's get further

analysis on these latest developments with a senior asian analyst joining us on the line from beijing thank you so much for taking the time let me ask you, do you think president trump's language is appropriate warning of fire and fury?scending to the same level when it comes to language as the north koreans >> exactly it's not very helpful in this situation because it mirrors the sort of rhetoric that we generally are used to cohearing coming from pyongyang. it doesn't help that the administration is sending extremely mixed messages we're seeing for example secretary of state saying something completely different, so we're seeing on the one hand an extension of an offer of talk and the other hand threats ever unleashing fire and fury and there is obviously not based on our analysis anyway a very success testimony approach to dealing with north korea

>> we had a guest earlier that said obviously the red line is now that north korea threatens the u.s. further well, actually north korea did that just an hour after trump eve comments came out by saying that they might attack the u.s. territory of guam. and now donald trump is under pressure to respond to that. if he doesn't do that, that would hurt the u.s.'s credibility. so what happens now? >> i would say that the u.s. credibility already is being hurt we saw a massive war of words in april, headlines stating war for you just around the corner and that didn't happen and i think we're in a similar situation right now where actually both sides are posturing, there are a lot of threats but not really credible in either way and actually their policy options are severely constrained the united states simply cannot strike north korea because of

the massive retaliation that south korea would incur. and then the same thing as soon as north korea uses its weapons offensively against south korea or the u.s., it is the end of the kim regime it is essentially a war of words that we don't really see escalating beyond what it is but it does increase the risk of m miscalculation >> overall though you where still pretty sanguine of this actually escalating to the extent that we'll see a military operation. what do you think would actually break the current status quo >> there are really no good options on the table at least none that we can see going forward at least under the time of the current administration. one definitely big step in that direction would be the u.s. dropping pre-condition for any talks to lead to eventual disarmament, that is something

that is a complete nonstarter for pyongyang. barring that, we would kneeled to s need to see the collapse of the kim dynasty be it for whatever reasonled need to see the collapse of the kim dynasty be it for whatever reason or a sudden willing nszd off by a need to stave off a an economic collapse in the north and that's something we're nothe moment >> and the latter point more realistic because of the increased sanctions being put on the regime do you not think that would exacerbate the hardship that we're currently seeing in north korea? would the regime at some point give in? >> well, from the perspective of getting north korea to talk and maybe disarm the sanctions package was a massive step in the right direction. there is no doubt about that i guess there are three key points to highlight here though. the first question is the

question of implementation this has always been a weak point. the second question is north korea's ability to circumvent any sanctions even if they are in force they have shown themselves to be extremely capable in that regard and the third option simply the willingness of the north korean regime to funnel whatever resources it does have towards the military and towards the nuclear and ballistic missile development. and so unless the sanctions really take a massive and sustained bite out of the regime's revenue, it will have shown a capability to persevere and right now i guess we'll have to wait and see. but on the account of sanctions at least we are mildly optimistic >> all right thank you so much for your perspective. appreciate it. and i also want to get the market's point of view on this with our global equities fund manager.

richard, we usually see the sable e saber rattling from north korea every couple months and now it's more frequent and usually markets tend to shake it off is this time different >> we'll have to wait and see. clearly tensions have been escalating and some of the rhetoric we heard from trump yesterday was unsettling but i think markets have taken it in their stride certainly markets continue to focus on what we've seen in other companies. so this backdrop will continue for some time. >> and we are in the midst of summer trading and volatility has been low could this be the black swan that we've all been fearing but in a way been waiting for? >> i think potentially there is always the risk of that. and we certainly have been in a very benign environment as far as volatility is concerned i think markets do need to price some of this in and i think what we've seen today is a reflection of that. >> the swiss up against the euro to the tune of 1%.

we're seeing the yen up against the dollar to the tune of half of 1%. and the swiss also up against the u.s. dollar. do you think safe haven assets are still under price when it comes to this sort of risk >> i think if we see the tensions escalate further, i think you will see it in the markets. part of what you are seeing, some people are takiing money of the table anyway so something we'll keep a close eye on for sure. >> and you mentioned earnings have been pretty stellar so to what extent this has been driven by still the weakish euro in the last quarter and the weak u.s. dollar. >> yeah, so i think the current city bit to me is really interesting right now. so let's just step back to q1. you saw a strong earnings performance. a lot was due to the weaker

euro this quarter is a bit of a shift. the european earnings outlook is still strong, but you've seen the strength of the euro and let's face it, euro-dollar has moved some 13% year to date so far. so a little bit of that momentum out of europe and actually the u.s. companies are the ones with foreign exposure are doing quite well now with the weaker dollar. so i think back to last year when i used to talk to u.s. ceos, the strong dollar was a massive headwind for them. so right now that is starting to play more into the u.s. company's favor right now. >> so guidance has been caution when it comes to the currency and the political environment in the u.s. is there anything out of the ordinary here? >> yeah, so the guidance to me has been quite interesting again if you focus on the u.s. companies, i think you're right, i think in terms of where we are politically, there is a lot of gridlock going on in washington. we've heard jamie dimon's comments in terms of tax reforms. so i think from a company's perspective, what they want to

see is qulariclarity from the tp institution. certainly the u.s. is sitting on some cash, looking to invest it. and i reference the pfizer ceo, almost saying we could do m&a but we're delaying it until we have a bit more clarity on tax and health care. and i think that makes sense >> and who could blame him obviously. and finally, i want to talk to you about valuations because we see the dow going from record high to record high, s&p also this week hitting another record high valuations are quite elevated. we've heard that throughout the last couple months yet we still see the markets going higher what is interesting though and you point this out in notes is that earnings beats have not been rewarded to the same extent that they have been in the past. and we see that earnings misses are being punished quite severely is this another sign of people getting a bit fatigued with valuations >> yeah, i think the valuation fatigue is probably the best way to put it.

marke markets are on the expectations of the earnings coming through and so far i'd say we're on track. so again back to the point we are looking at double digit earnings growth in europe and the u.s. this year so the backdrop is still supported. to me the markets are saying what do you need to see, you need to see some of these political reforms coming into play and also a little bit of inflation where pricing power has been a bit weak right pow. >> that would be great richard, we'll keep you on boarw >> that would be great richard, we'll keep you on boar. >> that would be great richard, we'll keep you on board so do stick around and first this, we're looking at live pictures of the brazilian suburb where an investigation is under way after six french soldiers were struck by a vehicle as they were leaving their barracks persian police are searching

vehicle. they have not disclosed whether they believe this was a terrorist attack if we get more details, of course we share that with you. still coming up, stay away, find out what jpmorgan's jamie dimon says he won't touch. - honey, remember to slaughter the tomatoes with the nun. (screaming) remember to water the tomatoes when you're done. - [announcer] sometimes, hearing isn't easy. - lick a carp. lookin' sharp. - [announcer] but now, there's a simple way to enhance it because now there's eargo plus. the virtually invisible hearing aid with amazing sound quality. designed with patented flexi fibers, so they're suspended completely inside the ear canal. and so small, that they're virtually invisible. just pop them in and tap each ear to find the right setting for you. a single nighttime charge will last you an entire day.

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concerns >> we would very much like to have clarity now around bay sell 4 proposals. we need clarity. but having said that, i think strong kacht positions is important. the economy in the u.s. is different. quantitative easing is loosening which i think is good. interest going up. that of course will take some time in europe especially interest going up, hopefully quantitative easing will relax starting this year >> and net profit up 68% in the second quarter to 350 5355 mill euros. slightly less than expectations.

the company faces challenges from online retarilers like amazon >> together with our more than 2,000 stores in the u.s., we have the right combination of online channel that doesn't of course in this case not say that we don't see the competition making big changes either like amazon is doing. but it also tells us that the online proposition is clear combination between stores and our online and that helps us to drive our growth in the united states. so it is clear, a lot of changes happening, but not unexpected i would say. >> luckily we have a guy with us who ha everyone has been bret bearish about the sector ever since amazon bought whole food and everybody thought that will would be the tesla movement, but you think the bearishness is

overdone why. >> i think so. and there are reasons for this as you said, i think we're talking about walmart, kroger, the big incumbent supermarkets, you need a strong online offering and the other is you need to differentiate yourself should taking our holders for example in terms of online, bol.com in the netherlands, yes, they have a strong oftening. and the differentiation, they are more focused on quality. so i think they do have a defense here clearly the amazon news will worry people to me the price point of a whole foods customer is different than the pricing point of walmart, ahold and kroger for me focus on the deflation because right now that is the current thing that you want to keep your eye on for me any signs you see of inflation creeping back into the u.s. economy will be good news for the supermarket retailers. >> and on the same page though,

i'm just wondering whether all of these food retailers are simply waiting for a big acquisition from the likes of amazon or any other online player is that the right strategy for these players? >> i wouldn't say that they are waiting to be acquired i think these companies have been quite proactive so again taking ahold as an example, they put significant indiana vevestment behind theire so i think they are well aware of the shifts and you'll and you are seeing is the continuing step up if you like of on line ig investment. >> all right let's continue this discussion want to talk about banks america should being knowledge its problems aunnd fix them that is the message from jamie dimon. dimon urged congress to band together and push through what he have called critical tax reforms. he also expressed concerns about the bond market. that a listen. >> i do think in a bond prices, spreads, bond prices are high,

spreads are low. i won't call it a bubble, but i wouldn't personally buy in the ten year sovereign deabt anywher around the world my view is the fed is doing the right things raising rates, you know, telling people we'll start reducing the balance sheet the likely outcome is that it will be fine and particularly for the american economy doing well, so the fed is doing these thing in the face of a strong economy, i don't think it will be that disruptive all i've ever pointed out is there is a chance that it could be disruptive, a possibility because we've never had to reverse of qe 1, 2 and 3 before. >> he also questioned whether certain capital regulations may be holding banks back. >> we believe in stress testing and they have become very rigorous which i think is a good thirn thing. our presence is grow organically. and some think banks are buying back stocks and therefore not making loans

loans are constrained by other things not right now by capital so if i had a choice, and if thingshad been different five years ago, a lot of that capital would have been used to help make funds to the american society. >> and i know you have some thoughts about the banking sector in the u.s. again we're back to pre-financial crisis levels in part because of all the capital return story post the stress test i just wonder whether banks in the u.s. can continue to rally with the absence of tax reform i know we're look at a lot of deregulation, but isn't tax reform the missing ingredient here >> i think as you said banks had a very significant rally at the end of last year to me they are still in a pretty good place right now and some of jamie's comments in terms of the fed right now, we've seen for us this becomes a real capital returns story this year. you've seen from regulator is clearly happy with the companies returning more capital shares which is a good thing.

i think for banks also keep an eye in terms of regulation so i don't particularly like the term deregulation. for me the fact that you may not see more regulation coming on top of what we have will be a good thing for banks between the capital returns story and the easing of regulation going forward, i think those two things should be enough to give banks a bit of confidence and also potentially some up side from the rates. we'll have to wait and see in terms of the moves but put it all together, i think it's still a pretty good backdrop for u.s. banks about that. >> and market rates aren't particular i high. ten year treasury note yield is 2.25%. that is nothing to write home about. but obviously policy rates are moving to the up side. would that benefit the european banks to the same extent >> yeah, i think european banks almost get some benefit from this as well clearly not as much in terms of the u.s. banks where europe is in terms of your ecb and regs, a little further

behind the curve, but i think some of this up side in terms of capital return will start bleeding through to the european banks, as well >> and before we let you go, where do you see value right now? >> that's a very good question you're sleuth right, in terms of the broad market valuations right now, i think it's stretched. but i think there are some opportunities. health care despite the fact it's one of the best performing sectors, it's still a really interesting sector you have very good pipelines right now, good top line bottom line growth. very interesting dividends and strong balance sheets. so health care to me is very much a sector you want to be involved in. telecom is starting to get interesting. and going back to earnings season, you saw from verizon, at&t, expectations got beaten down in the stocks so the fact that companies came in with pretty okay numbers, yes it's a competitive market, but

you knee the companiy know the g okay so there are still values right now. >> richard, it's been great to have you on the show thank you so much for all your thoughts and still coming up on the show, we speak to the ceo of eon. another cnbc first

welcome back to "street signs. these are your headlines north korea considers a strike on the u.s. territory of guam after president donald trump warns of fire and fury in response to further threats from the regime this as the rogue state reportedly develops a nuclear warhead small enough to fit on a missile. novo nordisk shares rise as the danish drug maker posts better than second quarter operating profit and powering down, eon says it is losing customers in britain. we'll speak to the ceo in the next couple minutes.

if you're just joining us, a quick look at u.s. futures and we're looking decidedly negative the dow jones set to lose 35, similar point losses for the nasdaq and s&p 500, could fall by a couple points, nine or so and stocks did turn modestly lower yesterday after trump's stern warning to north korea the dow losing 0.1%, the s&p off by a quarter of 1% and the risk aversion is also very much visible in the european markets this morning. ftse 100 under pressure. and xetra dax accelerating its losses, off by a little bit more than 1.25% and cac 40 off by 1.3% what is hurting equities is benefitting over asset classes such as the safe havens of course treasuries gained on the report, but also gold and some of the safe haven currencies likes yen and the swissy

the swissy is flying high against the u.s. dollar, and also against the euro. 1.13 is the handle there and the dollar obviously losing some ground, off by half of 1% and as i mentioned, eon shares reversed early gains this despite posting better than first quarter results pointing to higher margins. the energy group saw first half operating earnings fall 12%. the results come a day after it upgraded its dividend policy and annette has a very special guest. >> thank you very much i'm joined by the ceo of eon we're talking about the second quarter. and of course about the future thank you very much for joining us here. >> you're welcome. >> lets look at the second quarter. so what are your main drivers for growth here and how happy are you with the result? >> the second quarter was very,

very strong. and all across our core businesses, the renewables >> and it looks weaker than last year why is that and are you happy with that level of profitability going forward? >> i think that the numbers need to be understood it is operationally better than prior year the only affect last year we sold a significant part and a one timer. and this quarter we didn't sell anything it's just the missing part of sell something operationally it was fully delivering >> and full year you are keeping your target. having that good second quarter, would you say it's rather at the upper end of the target range? >> the budget was for the eb 2.8

to 3.1, but we always inform the market one time affects 250 million from thegerman network from the new law now, parliament in the finish line said they don't enact retroactively, but only for forward years. so one time effect 250 million will not coming, so we will be somewhat below the mid point but it is only driven by the one time effect which would have been an obstacle illusion. so we are pretty happy we will be in our range and it will not be at the low end, but also not at the upper end. >> and let us look at what you are calling growth opportunities. because i think that is the major game changer here. what are you looking at and what do you have in mind when you take about growth opportunities, acquisitions somewhere >> i think the major change that we saw in this quarter, we settled all the nuclear disputes we are not liable any longer for future nuclear waste issues.

we improved our leverage by almost 5 billion in a single quarter. so it really was game changer. and the consequences today we raise our payout market in the future but we also grow stronger and that will be also likely across the board, but we will only flex the new strategy next spring we say return will definitely prove meaningful from a better pay out and more growth. details to follow in spring. >> and let us talk about you're planning on selling the stake next year. there is so much speculation going on would you prefer a stroo stra edge t extstrategic buyout >> we explore all options and i won't go beyond that >> looking at the energy market, it seems that there is a consolidation wave coming up again. so what do you reckon, will it be consolidation when it comes

to renewables or the traditional spheres? where doun you think the action will be? >> there is a lot of speculation driven by investment bankers we have not seen major steps, but there may be a reason. i think more so another upstream side than the new energy world side but we need to wait and see. >> let us turn our focus on the uk a lot of political uncertainty so what is your working hypothesis when it comes to brexit >> our first working hypothesis is we need to deliver strong and good products for our customers and be a reliable supplier and since may, we are growing customer numbers more than 60,000 since may so that is the main thing. so for the customer be a fair supplier on the brexit side, we have major investment in the united

kingdom. we need to wait and see. we don't prefer this one or the other way. i think there is good argument that specifically on the energy side holding europe somewhat better together will be profitable for the uk, europe, but we need to see what the government and parliament will say. >> would it be a problem if the uk crashes out of the european union without a contract >> i thinks uncertainty that would come along with that will be a burden on a lot of sectors and also on customers. and thus i think it's definitely preferable if an am pimicable sn could be found and on the long term, uk will always be a meaningful part of europe so we definitely support anyway forward for an amicable solution >> let's look at the upcoming germany elections. is that a political risk for you?

>> i think elections in a democracy i would never label as a risk it's the choice of the people. i think we need to wait and see. but a look at all the political programs of the parties, i don't see any party that is opposing the further continuation of the energy transformation. i see a lot of support for new technologies, also support for more digital solutions and thus i don't see any contradiction to our strategic choices. so i think if you can wait and see and as i always say, i have one vote out of 80 million so it doesn't matter >> well, you have to go to the puls polls. >> i never miss a singled vote i tell my children you go to the polls. >> thank you so much with that, i'm sending it back to you so we are all watching september i guess. >> all right only one month to go thank you so much for that industry association uk active is calling on the british

government to expand its existing cycle to work scheme and says the proposed workout from work program would generate around 385 million pounds in annual benefits for the uk economy by 2021. the chair of uk active joins me around the desk. now, you say that the uk is in the grip of an inactivity pandemic how bad is it? >> it's pretty bad in the uk it costs the nation about 20 billion pounds a year it's responsible for 37,000 early deaths in the world, you know, it's the fourth biggest killer. so ite's massively important tha we start thinking about how everyone at work becomes active because it's about having less fitness days the way it's going, we need to have a fit and healthy and active workforce to be productive >> cycle 2 work scheme,successf.

was there any measurable performance increase >> there has been. i mean that was a salary sacrifice program and it encouraged people to buy bikes and there are huge benefits from it but we want to expand it so we're in negotiation with the government at the moment so that people with buy gym memberships, equipment, accessories because there has to be a much more creative way of helping people be active everyone is busy everyone works long hours, they have family, it's a work/life balance and trying to find a better way that people can be active in work >> and again would that have to mean more flexibilities? because people are so busy especially in london the commute takes an hour or more and maybe you have family and then you've got demanding work schedule. where do you fit in the time to actually do any exercise >> well, if ct can be things lek active travel 237 in london, it's getting off the bus stop one stop early

in other parts, that could be harder but people have to take some responsibility for their own health and activity as well. and it's potentially not done this big blocks every day, it's doing it in lots of different ways you know, you can just walk between meetings it's taking a proper lunch break and making sure that you do half an hour or 45 minutes. b because actually another back of that, people feel psychologically better, they are able to contribute it's the starting that is really difficult. and that is why we've got national fitness day which is a really big focus for us because that's where we really highlight the need to be active. last year we got over a million engagements. we want to do a lot more this year and especially around business because businesses need to recognize that their workforce needs to be healthy. we're working with ppp, we have something called flying starts

and it's basically saying get to work in a different way, walk, cycle. as a country we need to be much better at looking at active travel maybe using canals, using lots of different ways to engage people to think differently. because who doesn't want to be healthy? everybody wants a long and healthy life >> and obviously in the interests of the employer because they want to keep their employees healthy, but i'm thinking don't businesses have better things to think about and in the times of brexit uncertainty than boosting physical activity on part of their employees? >> there are lots of challenges in business at the moment, but if businesses want to stay competitive, need to have the best talent and they need that talent showing up for work every day, being able to contribute and bring in the whole self to work so it is a massive crisis. if businesses keep putting it off, it's going to hit huchbge proportions. it could save 200 million a year

by people being active and that is good for the whole economy. >> are businesses right now doing enough, are they have falling short of what they should be doing in terms of boosting physical activity for their employees? >> some businesses are doing really well, but actually more need to be better. and they need to offer a little bit of flexibility and be really open to their employees being active because it just makes good business sense. >> you made the link to the nhs before and you said that this could save some of the cost pressures from the nhs i don't feel that this will make a sizable dent in the funding pressures that the nhs is facing is this an ill fated attempt by the government to do something about the nhs? >> the nhs is in difficult place. but actually what we do know, something like type 2 diabetes which is preventable through physical activity and diet, that is going to break it so we have to be looking at prevention rather than cure.

simon stevens the chief executive says physical activity is a miracle cure, but people need to think about it now rather than 20 years down the line or when they are in their 50s and 60s and have all these medical conditions they need to think about saving themselves now >> i think next time i will actually take part in this initiative i think cnbc did it a couple months ago gee they encouraged people to walk up the stairs instead of the elevator.gee they encouraged people to walk up the stairs instead of the elevator.ee. they encouraged people to walk up the stairs instead of the elevator.. they encouraged people to walk up the stairs instead of the elevator.. they encouraged people to walk up the stairs instead of the elevator so i feel lazy now thank you so much for your input this morning now as we head to break, we'll leave you with the unmistakable sound of countryside glen campbell who has passed away at the age of 81 ♪ and i drive the main road ♪ rhinestone cowboy, riding out on

a horse in a star spangled ro o rodeo ♪ ♪ and on her door

disney shares tumbled after hours as higher programming costs and falling subscribers at espn led to a 23% drop in cable network operating income in the third quarter.world's largest entertainment company also announced testimony stop supplying movies to netflix and launch its own streaming service in 2019. speaking to ceo, bob iger explained why disney was ditching netflix. >> we had a deal that gave us the option to move our films from the netflix platform to somewhere else starting with

calendar year 2019 slate and that's what we're doing. so we're creating a disney branded service that will have those movies on it and if you look at the 2019 slate, it includes frozen 2, toy story 4 and a live action remake of lion king as a for instance so it's an incredible slate. >> and it's into the just disney apple also wants in on streaming.not just disney. apple also wants in on streaming. they are launching a series based on one of james core deny's most popular segments >> car pool karaoke will be a 20 episode seriescore deny' most popular segments. >> car pool karaoke will be a 20 episode series the first features james corden and will smith flying threw l.a. in a helicopter. tim cook recently talked about why the company is makes moves in the original programming. >> the objective of this is really two fold. one is for our own learning given that we're new in the

video space in terms of creation, and, two, is to give the apple music subscribers some exclusive kept and hopefully grow our subscriber base >> but there is an even broader shift that car pool karaoke represents apple is at a cros pivoting from a digital world to a streaming one. itunes used to be the one stop shop for consumers looking to download content whether that was movies or music. but now those same consumers are streaming that content in the first six months of this year, on-demand audio streams in the u.s. reached 184 billion up 62% year over year. when video streams are added, the total surges to $284 billion, up 36%. but streamings gain is digital's pain digital album sales dropped 20%. apple of course well understands these trends and is adjusting

its business accordingly so they decided to diskiscontine nonconnected ipods and it is dedicating a lot of time, money and effort into building out apple music in that battle for streaming music, apple right now controls an estimated 19% of that market according to research. spoti spotify, 40% but nielsen entertainment says apple boasts real advantages the integration of its service with its product from the i tipe to the soon to be released home pod, unlimited marketing budget and the access that superstar producers like dr. dre can give the tech giant u.s. officials have agreed to investigate qualcomm's allegations that apple infringed with its devices including

iphone 7 qualcomm wants a ban on iphone models that uses modal shifts. the american regulator hopes to complete its investigation within 45 days and more potential hurdles for fox's take over of sky as the uk government asks for more information about the potential purchase a decision had been expected in a few weeks. fox reports its fourth quarter results later today. our top story, north korea says it is examining plans for a missile strike on the u.s. territory of guam. the latest threat is just hours after president trump hit his starkest warning yet to kim jong- jong-un's are a beam >> north korea best not make anymore threats to the u.s they will be met with five fire and fury like the world has never seen he has been very threatening.\ e and fury like the world has never seen he has been very threatening.\ fire and fury like the world has never seen he has been very threatening.\

fire and fury like the world has never seen he has been very threatening. fe fire and fury like the world has never seen he has been very threatening. fr and fury like the world has never seen he has been very threatening. f and fury like the world has never seen he has been very threatening beyond a normal statement. and as i said, they will be met with fire, fury and frankly pourer the like pou power the like of the world has never seen before. >> and this is after u.s. intelligence officials believe that north korea has created a warhead small enough for a missile strike but there are other breakthroughs before it could field a fully effective nuclear missile. let's have a look at some of the safe haven flows the yen gaining, and swissy also gaining up by roughly 1% let's get washington's view on this with twraracie potts joini us bright and early. there was a lot of criticism of donald trump's language that was used here, fire and fury do you think those comments were made off the cuff or do you think this was well thought through? >> reporter: well, we don't know but we know that he has in the past made comments off the cuff.

in this case the particular words and the language that he used raise a lot of questions about whether or not the president is trying to goad north korea into some sort of conflict perhaps even a nuclear war given the fact that as you've just noted, our intelligence officials now believe they have the capability of putting a nuclear warhead on one of those missiles and we know now that their missiles have the capability of reaching well into the u.s. mainland. it's raising a lot of concern ech after with especially after the state media in north korea saying that they are seriously considering some sort of strike on guam, a u.s. territory in the pacific guam's governor overnight now saying that his people are safe, but he's in touch with washington, they have defense ready. this situation clearly escalating and it raises the question of whether or not a diplomatic solution is still possible is it still on the table china would play a major role as an intermediary between the

united states and north korea. but here is the thing. the secretary of state rex tillerson said the bottom line for the united states is that north korea has to stop firing missiles just to get the u.s. to the table. and then they come out with this threat against guam. so we're not seeing the two moving closer to a diplomatic solution and certainly the rhetoric is escalating some sort of military conflict, although military experts here tell us that there is really no good military option here >> no, there really isn't. appreciate your input. nine time we'meantime we're live pictures of a parisian suburb where an investigation is under way after six french soldiers were struck by a vehicle as they were leaving the barracks police are searching for that vehicle. french authorities have not disclosed whether they believe this was actually a terrorist attack and the south african pluano

confidence vote. lawmakers were allowed to vote in secret. this is the eighth no confidence vote that zuma has won. and ken gentlemya's electiom were hacked. there was, quote, sten extensivd massive fraud. the election commission says that the incumbent has maintained his lead with 58% of the vote u.s. futures pointing to a weaker start that's it for today. i'm carolin roth for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement

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stocks dropping as president trump warns north korea threats will be met with fire and fury we're live in washington straight ahead and better off alone disney cuts the cord on netflix and announces its own streaming service. we'll get wall street's take and shares of priceline sliding on a disappointing forecast it is wednesday, august 9, 2017. and "worldwide exchange" begins right now.