hello. welcome to "street signs." i'm carolin roth these are your headlines european equities follow asia and u.s. lower as geopolitical uncertainty around north korea continues, with u.s. president donald trump saying his fire and fury comments were not tough enough safe haven trades continue their upward trend with famed investor ray dalio recommending a higher gold allocation amid the rising tensions. miners lead losses in europe as talk of higher margin requirements and increased geopolitical tensions weigh in on metal prices.

novozymes shares sink as second quarter earnings for the biotech firm miss across the board. but the ceo strikes a bullish tone telling cnbc growth rates are likely to pick up. good morning tgif let's get to breaking news the oil market rebalancing is underway but it could take time before the numbers confirm this trend. that's according to latest report from the iea. brent and wti crude prices this morning a little bit lower to the tune of 0.9% let's get to neil atkinson in paris. are we saying the first signs of backwardation? >> a little bit, because the market is slowly beginning to

tighten. markets are feeling confident that prices seemed to have stabilized a after nervous period a month or so ago and markets are tightening >> how quickly will they tighten furth further? that's also a key question opec production is still rising and libyan production is at a one-year high. >> that's one of the great unknowns the libyan production has risen strongly in recent months. by its nature because the political situation in libya, it's possible that production could go back down again as continue to rise in nigeria, there is no clear end in site to the difficulties they've had there. so, yes, you're right. production is rising it could go on rising. we cannot be clear that's one of the great u uncertainties. >> why do you think the

increasing signs of backwardation and the rebalancing in the oil market are not reflected in the pricing that you would expect? we're still trading below $50 a barrel for wti crude the market is not buying the signs of inventory draw down what is the key trigger here >> we should remember that though stocks are beginning to fall, they're falling from a very great height. as we note in the oil market report this month, there's a scenario if ocd stocks continue falling at the rates we see in the second quarter it will take until the early part of next year before they get down to the five-year average. the market is also seeking reash insuran reassurance from opec producers.

we have seen statements from saudi arabia that exports will be cut in august, that they'll reduce their allocations to asian customers in september so the producers still seem determined to ensure the progress has been made in their eyes and that is maintained. >> neil, can i ask about the demand side of the question? we spend time talking about the supply side. when it comes to demand, oil is on track for a bad week. this in part because of the tensions from north korea. i wonder to what extent this could be a demand story. what do you think? >> we're not sure how the korean situation will play out. we're a very long way away as yet from any real impact on the fundamental oil market we have not really for the time being factored in north korean indication as far as demand is concerned, you're right to pick up on the fact that we focus so much on supply what we said in the latest report is that demand growth in 2017 is going to be slightly

higher than we thought last month, and we expect growth to be robust in 2018. on the demand side, it's the robust picture as far as the global market is concerned >> the rebalancing of the oil market will be driven more by the demand side than supply side compliance is at lower levels. we're at about 86% that's not a great number, is it >> it's a question of the contributions, the rebalancing comes from blooth sides. what we should remember about compliance, yes, it's not 100% at the moment. that's certainly true. opec is engaged in an exercise which continues until the end of march 2018 so we need to judge the success of the output cuts over a longer period of time the compliance rate, by historical standards, has been

good they need to maintain discipline and -- throughout the period to the end of march 2018 as they identified we'll see where we are stand there. one final point on the supply side and why prices are not necessarily reacting strongly, everybody realizes that when prices do begin to strengthen, that is likely to provide an incentive and a potential uplift to the u.s. shale producers to brick on more supply so potential prices are capped by the likelihood of more supply coming on stream from the u.s. if prices do begin to rise >> that's always the same story when they do rise, there's bigger incentive from the shale producers. would you say because of that oil prices, generally when it comes to brent and wti, they will be capped around $50, $55 a barrel >> we can't be sure what the level will be. it's difficult to see based on the current fundamentals oil

prices rising significantly in the next few months. but even when they begin to do so, they will be capped, as we suggested, by the availability of short cycle oil production from the u.s >> neil, thank you very much for that speaking of the oil price, let me show you how the equity part of the equation is doing. some oil majors are trading lower given the drop in oil prices bt off by 1.3% shell off 1% that fits neatly into the weaker picture we saw after the further war of words between north korea and the u.s. the xetra dax off 0.34%. the ftse 100 falling by 0.90

we are on track for the worst week of 2017 for european markets. looking at a weekly loss of 2.4%, a third day of losses. that's reflected in the sectors as well. last time i checked all the sectors were in the red. food, beverages, healthcare, some more defensive sectors are holding up well, but basic resources off by 2.73%, along with insurance the story for basic resources is also one of talk about tougher margin requirements. that is keeping a lid on that sector it all comes back to tensions around north korea president trump has issued a fresh round of warnings to the north korean regime. he said pyongyang should be very, very nervous about taking any action to provoke america. the remarks were delivered during the closest thing to a fully fledged presidential news conference that the president held >> reporter: a defiant trump

escalating his war of words with north korea. >> if anything maybe that statement wasn't tough enough. >> reporter: the president make the ominous comments after security briefings with his vice president, national security advisor, and chief of staff responding to critics who argued his earlier remarks crossed a dangerous line >> it's about time somebody stuck up for the people of this country. >> reporter: north korea has ratcheted up its rhetoric this week, now threatening to launch missiles by mid-august aimed at the u.s. territory of guam >> let's see what he does with guam if he does something in guam, it will be an event the likes of which nobody's seen before what will happen in north korea it's not a dare. it's a statement >> reporter: and on the specter of nuclear conflict. >> i would like to denuke the world. i know president obama said global warming is the biggest threat i totally disagree and nobody including north korea is going to be threatening us. >> reporter: but when pressed whether he's considering a

preemptive strike which officials tell nbc news is on the table. >> we don't talk about that. i never do i'm not like the other administration that would say we're going to mosul in four months i can tell you that what they've been doing and getting away with is a tragedy and it can't be allowed. >> reporter: the president also lashed out at his predecessors calling them ineffective and acknowledging a new round of sanctions might not be enough to solve the problem, even denying any internal discord when it comes to communications in his administration >> there are no mixed messages and i'll tell you this, it may be tougher than i said it, not less >> reporter: his message to americans now, stay calm >> people of this country should be very comfortable. >> reporter: but to north korea -- >> north korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world >> that was kristen welker reporting. donald trump is maintaining his

stuff stance on pyongyang. however the president's defense secretary that warned military conflict with north korea would be catastrophic. >> my portfolio, my mission, my responsibility is to have military options, should they be needed however right now secretary tillerson, ambassador haley, you can see the american effort is diplomatically led it has diplomatic traction it is gaining diplomatic results. i want to stay right there right now. the tragedy of war is well enough known it doesn't need another characterization beyond the fact that it would be catastrophic. >> i want to give another sense of how this north korea story impacted the markets that's usually reflected in what we call the fear gauge, the vix has jumped 62% this week alone it's back to the levels of 16,

the levels we last saw in november keep in mind the vix for many months has been at depressed levels, that maybe showed some complacency among investors. it also benefited the safe haven curren currencies, like the yen and the swiss. the swiss franc rising once again against the dollar and the yen is up by 0.1% against the dollar for today for the week we're seeing bigger moves. gold hitting a two-month high on the back of those worries. coming up, snap selloff. we'll find out why investors are snapping their fingers at the photo sharing app. that's after this short break. 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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welcome back asian equity markets have closed for the weekend but given the jitters surrounding north korea was a bruising week for those markets. let's check in with nancy in singapore. >> that's right. red across the screen here we're looking at asian equities in the red, in the range of 1% to 2%. the h shares and the hang seng are the worst performers today some saying this is more about profit taking than the geopolitical concerns around north korea. no doubt about it. north korean concerns kept investors on their toes. let's look at the msci index for asia pacific a decrease of 1.5% on the session. overall a bit down, 2.2% week to da date that gives an indication how hard they were hit

investors may wake up monday and take another queue from the change let's hone in on the south korean market. no surprise that the kospi was bearing the brunt of the change in risk sentiment. the kospi lower 1. % to end the day. on the week shares in seoul fell 3.2% that was the biggest weekly percentage loss since february of 2016. no surprise when you think about the heavy weight that the hsams has in seoul investors are saying this has some what to do with north korea but is also a catalyst for the change in the risk position. some saying it was a long time coming i spoke earlier to a guest who was just off the plane from seoul, he had been meeting with investors and clients in south

korea. i had a chance to doask what was the mood among investors on the ground let's listen to what mark zerniki had to say about that. >> people are not concerned, at least in seoul, about the situation there. it's like they live with that. i'll give you one example. it's interesting, if you go down to the seoul subway system, you see a bunch of gas masks, fire masks down there they've been living with this for quite some time. they are talking about credit cycle, what should i be doing now given the current market that's the focus >> so investors and clients in south korea that he was speaking to weere not overly concerned a big part of that story is because they lived through the threats before that's a similar message we're getting from chery kang covering the story for us from south korea. they said today it seems in some ways it's business as usual.

however when you look at ret acti5 the reaction for asian equities for the week, there has been a change in risk appetite. >> nancy, thank you very much for that let's move on. shares in macy's dropped by more than 10% marking the lowest close since 2010 the department store posted better than expected second quarter results. courtney reagan has details. >> reporter: another dismal day for department stores, despite macy's and kohl's posting better quarterly results, investors are pessimistic about longer term growth prospects sales for macy's and kohl's are below last year, even with online sales growing it's not enough to offset lower in-store traffic and sales plus shoppers today have more choices than ever before >> what we see out there in the market place today is, "a," we have traffic going to a virtual place, amazon is one of those key aggregators.

"b," from a physical traffic perspective, more and more consumers are going to the off-mall type of formats like where you would find ross stores, tjx. >> tj maxx, marshals and outlets are popular places for consumers. macies is adding its own version of an outlet called back stage in some stores macy's has not solved one of its biggest problems, bringing in new shoppers the foot traffic continues its down trend getting worse in tourist heavy locations. kohl's is more insulated from the mall woes since only a handful of stores are actually in a mall. but it is dealing with fewer people walking through doors and reversing that trend remains a top priority >> the mall-based ecosystem as you see today from the department stores, numbers better than expected, but still

down, it's starting a gradual spiral i think the urgency to address whatever opportunities that are left is growing. >> with the mostimportant time of year still ahead for retail finding opportunities soon is paramount. courtney reagan, cnbc business news. blue apron lost nearly a fifth of its value on thursday after reporting a bigger than expected loss in the first ever quarterly earnings report. the company says it is encountering unexpected costs and starting a new distribution facility. >> reporter: blue apron shares reacted positively initially on the earnings report but sank i asked the ceo about the stock reaction this morning, he said he is focusing on long-term goals and is calling current troubles a moment in time. it was during this quart their amazon revealed its ambitions in the meal kit space i asked him about that he told me we admire amazon as a

company, we take them seriously. that being said we are competing in a competitive and large market the grocery and food market is one of the largest markets that exists it's not a winner takes all market he added he thinks of am sop as their ally in the fight to bring more grocery shoppers online the company also went through an executive reorganization one month after going public after the coo stopped down to senior adviser. we pushed him on whether or not we'll see more reorg here's how he responded. we created a new team that did not exist before, a consumer products team which changed how we divide responsibilities among the management team at the company. we also reorganized the way our product management and product marketing functions worked in order to focus not just on acquisitions but customer monetization as well during the earnings call, the company lowered its guidance for the rest of the year because of higher costs and delays with the

new fulfillment center graphics chipmaker nvidia missed estimates, dragging shares down as much as 6.6% in extended trade overall earnings and revenue easily beat analyst targets due to strength in the traditional gaming chips. shares in snap fell sharply in after hours trade with the company reporting a decrease in its daily active users shares off by almost 17% in after hours. second quarter revenue was below expectations adding to fears that the social media company could be succumbing to competition from the likes of facebook julia boorstin has more. >> reporter: snap adding 7.3 million daily active users in the quarter to 173 million total, but 2 million less than analysts projected the company reporting an adjusted loss of 6 cents per share, bigger than the 14 cent

per sharealysts had been expecting. reven average revenue per user that came in at $1.05 that is 2 cents less than analysts expect the. snap's ceo looking to reassure investors with a big lock up expiration coming on monday saying he and his co-founder will hold on to their shares >> given the amount of speculation around the lockup speculation, it's important to note bobby and i won't sell any of our shares this year. the company will hold shares to satisfy obligations. >> spiegel and the chief strategy officer stressing that current advertisers are spending more and that they're drawing more advertisers to their new easy to use self serve ad

platform saying users are spending more time engaging with the platform, but even that positive commentary does not look like enough to reassure investors. >> i want to take you back to european trade miners are leading losses at the european open following a slide in chinese metal political tension around north korea affecting the sentiment. randgold down by 0.4%. antofagast ash antofagasta also down. ray dalio has said to buy gold on the rising risk created by north korea. in a post online, the bridgewater associates founder, who manages about 1$160 billion said the rising uncertainty means at least 5% to 10% of your portfolio should be in the yellow metal dalio also cited possible

problems the u.s. congress will have with raising the debt ceiling later this year. gold changing hands at $1287 it's trading at a two month high the vix is at the forefront of investors minds this week given the escalating tensions surrounding north korea. the vix has risen 60% this week. it is at its highest level since november want to show you what the safe havens are doing gold up by 2.5%. the swiss is having a field day once again but this week it is up by 1.4% against the euro the yen also gaining nicely against the u.s. dollar. in other earnings news, old mutual reported a first half profit rise of 37% spurred on by weak sterling and good performance in its old mutual wealth division. this as the angelo south african financial services firm announced plans to list old mutual wealth in london and johannesburg in 2018

novozymes posted a profit in the second quarter missing expectations they also saw sales and eby the co ebit come in below forecasts speaking to cnbc, the ceo warned of potential uncertainty in biofuels >> the administration has not been as supportive as the previous administration. biofuels production numbers are up in the u.s. we outgrow the underlying market we are happy about that. i don't think there's a major uncertainty on biofuels, but you never know again, biofuel is between two commodities, one is corn, the other oil. there's also an inherent uncertainty that we have to navigate as a company supplying into companies dealing with these commodities. >> on a programming note, i will be speaking to peter terium in

the next half of "street signs." that's coming up at 10:50. don't miss that we'll be back in two.

welcome back to "street signs. i'm carolin roth these are your headlines european equities follow asia and u.s. lower as geopolitical

uncertainty around north korea continues, with u.s. president donald trump saying his fire and fury comments were not tough enough safe haven trades continue their upward trend with famed investor ray dalio recommending a higher gold allocation amid the rising tensions. miners lead losses in europe as talk of higher margin requirements and increased geopolitical tensions weigh in on metal prices. let's turn away from the crisis in north korea. as you may have noticed we've been talking about employment trends all week as part of our special series our next guest is here to discuss how the evolution of transport will impact the job market as well as commuting. those guests are james carrick and on the line is ronnie beggs.

james, let me kick things off with you the car of the future, am i right or wrong, it's going to be autonomous, shared and electric. or am i missing a vital ingredient >> that's completely correct will people own a car, will be electric or internal combustion. >> do you think people will increasingly buy their own share? will it be shared? does that mean the replacement cycle will increase quite a bit? >> the number of teenagers taking driving lessons has fallen 20%, 30%. a lot of reasons for that, the growth of the sharing car helps that cars are only used about 4% of the time you think about the number of seats used, 1% of the time you have this car that's not being used all day, it makes much more sense for a fleet

company to own the car, get a driver to use it multiple times and reduce the fixed cost. >> ronnie, out to you. do you think cars will be a vital part of commuting in the future your company is behind oyster card contactless payment do you think cars will be a part of our daily commute to work will it all be trains? >> i think that cities continue to grow and people continue to commute to work. the congestion problems will increase over the next 20, 30 years. so particularly in cities and as we head towards trends such as mobility as a service, i think the general independent te but the ceo strikes a bullish ic intention is that people will use cars to go to work we're interested in how to make it easier to get to work

as a commuter i want to get to work on time reliably every day. one trend we're seeing is to have a single travel account for all of the travels whether i travel by train, rail, bus or bike, all three are in a single account instead of having cards to tap or tickets, i can use my mobile as my ticket to travel >> i guess there are some technological limitations. how do you make sure nobody cheats the system? how do you make sure we pay the correct fare >> in terms of cheating the system, these are areas where we put a lot of effort into with our partners, there are always mechanisms in place to make sure that the cards are used fairly but also that passengers get a fair price for traveling >> james, do you think if we improve the use of public infrastructure transport, do you think it can peacefully co-exist

if you want to use that term with autonomous cars is that possible even? >> some bigger distances make sense to use a train or tram, but you can get from your house, jump on to the train and then from the station to your office. in terms of congestion, it goes back to whether cars should have four seats, which makes sense if you own it if we had autonomous cars in cities, i imagine they would be like the google prototype, a one-seater car you could have four of those in the same space as one car. >> what about the use of batteries? we heard from tesla, many of the big mining companies are talking about increasing investments in nickel for the use of lithium and ion batteries. how far are we away from this being mainstream. >> the key question for batteries, are they a scarce resource that will go up in price or are they a technology like microchips that will fall

in price battery prices have tended to fall by 20% every year that's not as fast as microchips, but it is still significant. that's why they'll become competitive with the internal combustion in a few years, and they may get cheaper so the likes of samsung and also nissan and toyota, they're working on solid state batterie which are much more energy efficient. we have more and more companies investing in battery technology than before. now it's mobile phonemakers and carmakers, more scientists, more technology, more progress. >> you suggest in order to avoid congestion in the cities, you suggest that we should see changes in the infrastructure, changes in transportation. i'm thinking whether the changes should start at the company themselves in terms of, you know, implementing more flexible working times. i don't feel there's any way to combat the congestion that you

see on a monday morning at 8:00, 9:00 should it be down to the companies? >> that's a good point the number of passengers on rail in the uk is due to double in the next 30 years. much of that happens around peak times. there's not a capacity problem per se in transportation, but there is a very acute problem around the times that computers are traveling to and from work there have been ways to adjust that peak travel time and incentivize people outside of that but that helps when we look at an approach where the transportation agencies have a direct path to contact the actual traveler. but also any business to look at this as well, it's fine for me to travel at different times, but i need to have my company aware that i can actually travel at certain times i can stay at home for different periods of time. there needs to be flexibility here in the workplace as well as better, more intelligent systems to manage by travel.

>> ronnie, thank you very much for your time. appreciate it. ronnie beggs, also want to thank james carrick. thank you very much for your insights here are the results of our trader poll this week. what workplace change do you want to see the most it was a pretty close race the most popular choice was less time in the car, train, bus or on the bike that ties in well with the discussion we had a shorter commute into work is desired by 30% of all voters a quarter percent want fewer e-mails clogging in their in box, more would like to spend less time in meetings, and getting a new boss was the least popular popular option yesterday was another down day for u.s. equity markets. stocks falling on those comments from donald trump who did not roll back at all, he say the the

previous statements on north korea may not have been tough enough dow is on track for the worst week since march we are seeing more down side even today the dow jones set to fall by six points the s&p seen off by five points. when it comes to european equity markets, a sea of red. the ftse 100 off, the xetra dax losing a half of a percent the stoxx 600 has extended losses to hit a five-month low we are on track for the worst week for the stoxx 600 since last november. off for a 2.4% loss. this is reflected in the fx markets when it comes to risk aversion a flight to safety is continue nothing the japanese yen up by a quarter of a percent against the u.s. dollar. also seeing buying still in the swiss against the u.s. dollar. there are plenty of heavy hitters on cnbc throughout this week here's what they had to say on the current market environment.

>> we are in a risk tolerant market buffett says when other people are greedy, we should be afraid. when other people are afraid, we should be greedy >> i believe the market will drop 3% at a minimum sometime between now and december from what is a grindingly higher level. and when it does, i think the vix will not be a 10 >> i think the market is fully valued on a fundamental basis. how i get there is i think we're heading to normalization normalization to me is maybe 2% real gdp growth, 2% inflation, 4% nominal the 44% nominal growth, the fed funds rate would be 2, not 1 >> because the markets may be fully priced, overpriced, does not mean you can't find mispriced opportunities within those asset classes. let's talk to mike bailey from fbp capital market

enterprises. looks like we're heading for another down day when it comes to the u.s. markets. what do you expect from today's trading session? >> so, we would expect a bit more continued down side so we've seen the market down about 2% this week following the trump an north korea war of words. looking around the word, asia are down more 1%, 2% we expect that type of decline, maybe a little bit less. but it does feel like there's downside momentum. we would expect that to continue friday >> we heard from the likes of ray dalio, big name suggesting that investors increase their allocation to gold to between 5% and 10% of their total asset allocation would you agree with that? >> we would probably see things differently. we typically stick with traditional equities, fixed income gold to us feels like a bit of a

panic move it's an asset class we typically would shy away from and look at something where we can understand the fundamentals better for us we're looking at overall markets, looking for high quality equities, things we can add to we think we have more upside there as opposed to the commodities. >> where do you run for cover? the yen, the swiss, or do you not want to run into the safe havens at this point >> so our client base is primarily more of a focus in the domestic markets s&p, dow, nasdaq so we're fairly comfortable there. we're looking for opportunities internationally. maybe some will develop this week on this news. we think there's plenty of interesting opportunities at home whether that's in tech we've been looking at i.t. services, some compelling names there. even semiconductors.

maybe some additional opportunities in that space. >> you say there's the potential for a 5% correction when it comes to the major markets in the u.s. that seems like a downside that you need production for no >> sure. you can look at it a couple different ways i'm a recovering analyst, i stick with trying to quantify upside and down side markets are down about 2% this week on the north korean news. we think this typical geopolitical events dive a 4% down side. we're halfway there so in some sense we're balanced this news could go away and markets could snap back up 2% or you could see more downside, another 2. additionally we are overdue for a 5% correction. so maybe there's a bit more downside, but we don't see this massive negative situation, which we saw two years ago when folks thought about china hard landing. don't expect that or the early 2016 oil scare where markets

were also down 10% >> we have continued to see a rotation out of tech, especially in yesterday's trading session with the tech sector down 2% some of that money is still flowing into financials. how long can this rotation continue so we try to fundament fundamentals tech is beating earnings way better than any other group in the s&p. we can look sector by sector we think some of that money will come back to tech companies. in the short-term you could see a bit more selling so tech companies have a higher beta they have more volatility than the rest of the market if the overall market is going down 1%, sure, tech may do a bit more of that we do think, just looking at fundamentals, we think tech will continue growing faster than the rest of the market we think investors after this week, they'll take a deep breath, say okay, we realize tech will continue to grow, beat and raise on earnings, we'll

come back and put money into tech >> here's the million dollar question what will happen for the rest of the year we have inflation numbers to look out for today, that may give us an indication as to how quickly the fed will be hiking also we have the debt ceiling debate around the corner it's august, that's coming in september. what do you think the markets will make of that? >> if you look towards the rest of the year, it's a bit ominous. we have the north korean situation now. we have the debt ceiling debate. we have the fed, they plmay or y not hike rates some concerning issues there so one could argue, well, we maybe have seen the best for the year so far, maybe market also come off a bit we would try to be balanced here though you have some concerns there, in terms of downside, we look at sticking with fundamentals earnings are growing nicely. we expect that to continue we generally feel that stock prices follow earnings as companies have been beating

and raising, we expect another similar experience in the third quarter. soe so earnings exceeding expectations the we think that offsets challenges the markets plus or minus 1% or 2% we think markets will trade flat to up for the balance of the year >> mike bailey director of research at fbp capital markets. coming up, we'll speak to energy ceo peter terium. that first on cnbc interview coming up after this short break.

50,000 customers were added in the second quarter in britain for innogy, but they warned of tough competition in the power market as they try to revive the

local unit innogy expects the unit to report an operating loss in 2017 and reaffirm its overall group outlook. we're joined by peter terium the ceo of innogy. do you have any timeline and clarity on when that unit in the uk would return to profitability or break even? >> we do have one. but at the moment it is difficult to confirm that. as we are fully on track of getting all things improved, we don't know what plans the government or regulators have in the upcoming months, towards the end of the year. there's the competitive announcement of price caps or price influences, and we have not seen that coming through yet. but it's difficult to make any forecast not knowing what will come >> the price caps you're talking b those come from the uk energy

regulator proposing price cap to protect 2.2 million vulnerable customers. i guess if theresa may's plans go through, they would be even tougher than that. so are we talking about quarters or years when it comes to the break even >> well, i don't think we see that this year coming. so therefore we are at least talking a year into next year. but it is a bit early to give an exact timing on that the problem is on one hand we have price sensitive customers, customers that need to be taking care of very dearly. on the other hand we have increasing electricity costs we procure for our customers the energy and the stock exchange market and prices have increased. we sooner or late ver to pass

that later we have to pass that on >> you were able to add some new customers in the last quarter, but i assume those come at a lower price because of market conditions is that correct? >> no, that's not correct. it's a price comparable to those that our competitor made though we announced a price increase which cost customers in the first quarter, others have followed as they have to obey to the same market pressures we have to obey to. >> let's talk about the overall business much of the energy you produce comes from renewables especially from wind. with wind we never know what the weather will do today, yesterday or tomorrow. how is the wind business doing >> it's doing pretty well. we see heavy competition in off shore, especially with different models in offshore, which allow us to earn a different return.

next to offshore we're strong in onshore wind we have taken up projects in germany and in the uk we will build the first wind park in ireland and moving west towards the united states. last but not least the third foot hold in renewables is solar energy, panels, mainly large scale. that's business which has really taken off. we have positioned ourselves well to take global advantage of the development in the solar business >> peter, before we wrap this up, got to ask you, we're one month away from the german federal elections, what do you want to see from the next government that would make operating in the country easier for you? >> i think the government would do well by appreciating the market and market powers there to give stability as far as financial invest frameworks are concerned, and to

embark upon or continue to embark upon a long-term plan as far as energy transition is concerned. specifically not in the renewables generation, but in the system integration that means grids, distribution rids, local applications that are necessary to make the energy transition happen. >> peter, as always, thank you very much for your time. peter terium from innogy. the comments from the a adp ceo after ackman said why rodriguez so not be ceo. mr. rodriguez likened mr. ackman to a spoiled brat. >> the real question is i guess why does he need an extension, not how long is the extension and what did he really ask for or not ask for kind of reminds me of a spoiled

brat in school asking the teacher for an extension one approach would have been to contact us and say i have some ideas i want to talk about, either i'm investing in your company or planning on investing in your company. instead of threatening us and sending us videos of himself and telling me that if i don't accede to his demands for extension that he will embarrass me and humiliate me because of his media following. before we end this trading week, which was a turbulent one, u.s. futures are indicating a flat to slightly opener open to the markets. dow jones seen flat. the s&p 500 seen off by 5 points the dow heading for the worst week since march that's it for today's show "worldwide exchange" is up next. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights.

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war of words tensions run high as president trump issues a new warning to north korea. the latest on this rapidly developing story. markets on high alert as fear over north korea grips wall street we have full market coverage that's coming your way. plus spooked by snap shares of the tech company plunging after results disappoint the street again. it's friday august 11, 2017. "worldwide exchange" begins right now. ♪ >>