welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines >> the shanghai composite closes at a 20-month low as president trump looks poised to ratchet up trade tensions between washington and beijing by imposing tariffs on more than 800 chinese goods. draghi delivers for the doves. the ecb calls an end to qe but vows to keep rates low through the summer of 2019 >> tesco strikes a bullish

outlook and says growth plans are on track sending shares higher despite slowing first quarter sales. and rolls royce stocks surge as the company reaffirms its 2018 guidance. the trent 1,000 engine program forces costs up a day after the firm announces thousands of job cuts good morning let's check how markets are doing. the theme for europe was that of the ecb meeting yesterday, draghi's somewhat dovish tone sending equity markets higher. overnight the main consideration has changed a bit. we're back to focusing again on trade tensions between the u.s. and china where the u.s. are expected to release their final list of import tariffs from chinese goods later today. the stoxx 600 is actually

trading slightly weaker today to the tune of 0.1% let's get into the individual indices and see what the picture is like. we said yesterday was a good day for european equities, some of those gains are being paired back xetra dax, cac 40 barely in the green. xetra dax just barely above, and already down from an hour ago. ftse mib down 100 points already in trading again, giving some of those gains back as sentiment turns sour ftse 100 as well lagging a bit let's switch to sectors and see where the leadership is coming from we have autos surprisingly recovering this morning. autos has been an unloved sector as far as trade tensions are concerned. staging a bit of a comeback today. food and beverages up 0.5% today tesco results came out slightly better than expectations that's helping that sector to the down side we have banks down

at 1.2%. insurance down 1%. on the bank side, clearly the fact that the ecb has decided to keep rates on hold for longer period of time is not good for the banking sector that was pinning hopes on higher interest rat rates. let's look at how yields are doing. quite a good correlation between what's happening in the banking sector and in yields so u.s. is below that 3% down at 2.92, but the focus is on bunds we went into the ecb meeting yesterday trading at 50 basis points on ten-year bunds, now at 38 big rally there. fixed income has come back to the tune of 2 b-- 12 basis points draghi's dovish tone has helped turn things around for the

ten-year italy, trading back at 2.63 trump plans to unveil revisions to the china trade tariff list today. christine lagarde told an audience in washington, d.c. that retaliation from canada and the eu could have serious repercussions for the global economy. >> unilateral trade actions can be disruptive and may prove counterproductive to the functioning of the global economy and trading system as i've said before, a so-called trade war driven by reciprocal increases in import tariffs gives no winner. we find generally losers on both sides. the negative impact on the global economy would be serious.

not only the united states takes action, but especially if other countries as a result were to retaliate. notably those that would be most affected such as canada, such as germany, and other european countries. >> speaking of europe, eu member states backed retaliatory tariffs on 2.8 billion euros worth of u.s. imports. the european commission is prepared to impose a 25% duty on u.s. goods including orange juice, bourbon, jeans, motorcycles. >> also known as my weekend. >> that could be adopted as soon as the next commission meeting on june 20th we're joined by mill bill smeed thank you for coming in. if and when trump unveils these tariffs worth 50 billion against china, if they end up targeting

tech, as we seem to understand they will, and intellectual property is a focus of that, what does that mean for tech equities in the u.s. >> i don't think that's the most important dynamic for tech equities in the u.s. the most important dynamic for them is they're the subject of the wildest dreams of investors. and when you become the target of everyone's wildest dreams it might be something that goes haywire, could be tariffs, but something ultimately will go haywire. he will w-- we like to tell people you can't hold your breath until then. so you look and say we don't want a trade war we don't want interruption of free flow of goods that's what happened in '29 and '28 and led to the great depression we don't want that we also know the american president, whether you like him or dislike him, is a wheeler

dealer he wants to cut deals, he wants to throw his waite around to get better terms that seems to be what we're doing. >> is this a tech arms race do you see it >> china doesn't protect intellectual property through legal means. google has not been in china for years. though cho they chose not to go in there because they couldn't get the comfort they wanted. if you're in a country that does not protect the intellectual property, you're basically not a very good trading partner in the first place. when you go into china, it's almost always a joint venture. a lot of companies have found the purpose of the joint venture was as soon as the partner understands what the technology is behind what you're doing, you wake up in ten years and you may not be there anymore so it makes me nervous we own disney.

they have a substantial presence in china starbucks has a substantial joint presence in china, so there's risk >> i'm curious to see whether you are incentivized to change the baskets you're holding in your portfolio are you shifting into owning local steel stocks or aluminum stocks or are you leaving it to the background and focusing on the macro picture right now? >> that's a great question we don't adjust what we're doing. we're trying to buy outstanding relatively noncyclical businesses when they get deeply out of favor right now we're working on picking and choosing the most quality companies that came out of the disaster of amazon beating on everybody last year by buying whole foods. the panic that occurred there. people panicked out of groceries and out of pharmaceutical

stocks, panicked out of pharmacies, panicked out of media and the entertainment business that's where we're focusing. we don't prefer cyclical businesses lastly, commodities, they're good 20% of the time and 80% of the time they're not we certainly don't consider ourselves good enough to figure out which 20% of the time it's going to be. >> you talked about the media business very important story, at&t has been able to close its 8 $5 billion acquisition of time warner after the u.s. department of justice said it would not apply for a stay of the ruling that approved the takeover but the u.s. government will still have 60 days to appeal the judge's decision bill, you're still with us to discuss this this is a deal that has been a couple of years in the making. just looking at your holdings, you have both comcast and disney in your portfolio. which is interesting to me

because it shows that you still have confidence in some of these big names despite the threat of netflix and amazon which you were just talking about and streaming services >> yeah. be greedy when others are fearful and fearful when others are greedy so we added to our holdings of disney and comcast because they've been distressed. the theory is that netflix will completely ruin their business along with amazon and others, facebook so the way we look at it, with disney's case, content doesn't care how they watch it you don't care if someone is streaming your show today or watching it over the top or under the bottom or through cable. you don't care as long as they're watching so it's the content that matters. i find it interesting. people were excited about disney, but then afraid of the

cable industry ruining disney. then that was great. then vcr would be terrible for disney ended up being great for them. who has the content that people want to watch? we done disney, comcast, diz kovry xhko discovery communications if you can provide very engaging unscripted television you can make a lot of money. doesn't make a difference how you're delivering it >> you're talking about to some extent vertical mergers will flourish because of this, do you agree with that? >> we have a tendency to agree whoever is the smartest person or people in the industry. john malone we think is the smartest person in the industry. he's the largest shareholder of discovery. he said in an interview i think

with the "wall street journal" yesterday or today that he doesn't -- he calls this mergers of apples and oranges. and he doesn't really see the benefit, much like i think the people that are in favor of netflix argue that if anything it's vindication of their platform i will say this, right now investors have a great deal of confidence in platforms. craig macaw created the first cellular network in the united states of america, cell phone network. that was a platform. he sold it to at&t who wanted it to replace the dropping of the land lines over time at&t didn't get wealthy from that platform, but steve jobs did. i don't quite understand the fascination with the netflix platform it's neat, it's great, it's disruptive but whoever makes the money will be -- who makes the most popular content that they pay for.

>> this is presumably why the cable companies are trying to buy content companies, they recognize that platforms are irreleva irrelevant -- >> i'm not saying the platforms are irrelevant, but investors think they know who will be doing the best five to ten years from now and that's just not true i think rob arnot a week and a half ago in barron's said if you look at the ten largest capitalization companies in the u.s., ten years later one of them will still be on the list we're way overloaded in the five largest tech sectors, but i have confidence ten years from now if i avoid that i'm likely to do better than other investors. >> going back to what willem was saying, a lot of people expect this m&a activity to flourish, but the reality is these are huge deals and require a lot of

fund-raising or a lot of cash on a transactional basis. time warner deal of $85 million. only a handful of companies can play in that space not everyone has that amount of capital. doesn't it mean essentially what will happen is the bigger companies will get bigger and the -- and it will be difficult for incumbents to come to the market because of the fixed costs associated with getting involved in the space? >> your point is good. there's a great irony. you're showing various ten-year interest rates on your board remember, even though rates have come up to 3% on the ten-year treasury in the united states, a 3% ten-year treasury is, in my 38 years in the investment business, an extremely low rate. it's only been like that the last five, eight years all the other time before that, i think the historical average is 5.5%. these companies are looking at the rate at which they're borrowing money, and they kind of know in their gut that in

five, six years they're glad they borrowed the money now to buy productive assets. the second thing is the low rates also work as a -- it ruins some of your moat around your business, because capital is so cheap, that anyone who wants to come in and compete with you can get access to cheap capital. that's what high pe ratios on stocks like tesla and netflix are. that's cheap capital so it's a weird dynamic. people are bidding up assets because of low rates, borrowing money because they don't think they'll get to borrow it it's a bit of a toxic mix. from a historical standpoint you know things will change. if rates go higher later, that stuff will slow down dramatically you know, i'm reminded, using discovery as an example, they bought scripts network, they borrowed money at 3.5% after the purchase john malone said they were still getting 12%

free cash flow that's how fabulous some of the free cash flow is in the media business people are trying to grab ahold of the free cash flow, recurring revenue, drawing scale, the scale of amazon prime and netflix. >> also for the six months of this year already the m&a activity is already that of 2017 bill, thank you very much for coming on. that was bill smead. if you want to get involved in the conversation, tweet us, follow us on twitt twitter @streetsignscnbc or tweet us directly. coming up, russian president putin appears conciliatory after his country thrashes saudi arabia in the world cup opener coming up, supermodel, actor, and business woman elle

rkcpherson looks to make her ma in the business world that's after this break. very much. that yot it's really not very important. i was in the stone ages as much as technology wise. and i would say i had nothing. you become a school teacher for one reason, you love kids. and so you don't have the same tools, you don't always believe you have the same... outcomes achievable for yourself. when we got the tablets, it changed everything. by giving them that technology and then marrying it with a curriculum that's designed to have technology at the heart of it, we are really changing the way that students learn. and i can't wait for ten years from now when i get to talk to them again and see, like, who they are.

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welcome back to "street signs. a host of young business folk in monaco for the moment at the ey world entrepreneur of the year award. this year's theme is the collision of industries and disruptors our own tanya breyer is enjoying the sunshine in monaco very jealous that looks gorgeous. you've been having interesting conversations as well? >> yes shg, absolutely good morning to you and to joumanna i will admit it's beautiful here stunning views over monaco the weather is beautiful ey's world entrepreneur of the year aworld will bard will be a tomorrow night 47 countries are vying for that title. the keynote speaker is the supermodel turned business woman

she will share what she learned over the years and transitioning from being a supermodel to a successful business woman. she had various businesses over the years. in 2014 she went into the health and wellness industry and started welco. she also has a lingerie company as well. i caught up with her exclusively yesterday. of course in 1989 when "time" magazine called her the body, she was smart. she trademarked the name she told me she doesn't always feel the pressure to live up to that name. let's hear what she has to say >> business is business. you know, i think for me what i have come to terms with is that for my personal experience as a woman, the way i feel has much more importance to me today than

the way i look and the byproduct is because i'm well and healthy this was the foundation of welco, the business i started with my co-founder, andrea howard, who is my ceo. wellness has really become my foundation foundation of my business, and, you know, the beautiful byproduct is that i have seen a growing correlation between wellness and beauty. particularly as i've matured when i was younger there was a correlation between youth and beauty but when i turned 50, and i'm 54 now, i realized that actually the correlation was wellness and beauty that struck a cord for me. that's how welco started at 50 i was just not feeling well, looking well i saw my nutritionist. she put me on a plant-based diet, gave me this probiotic

powder i started taking it religiously and noticed a huge difference in the way i felt and looked. i said i really want to start a business sharing this with other women. that's what we've done >> everyone looks at you, elle, most women will say how does she do it? of course you have welco do you follow a very strict regime yourself? would you ever have a cheeseburger >> i'm not a big meat and cheese person not just because, oh, you can't do that on your diet i'm very -- i love -- i'm basically vegan. that's the way i like to eat i have a strong plant-based foundation in my diet. i have a weakness for chocolate. i love an espresso i'm pretty good with a cream pie. but basically, you know, i enjoy feeling good

i enjoy getting outdoors, exercising i eat three meals a day, i have two snacks or three snacks sometimes. and i just -- i'm quite easy about the -- about my life i think life is for living >> well, i did try, guys i thought maybe she did have a cheeseburger now and then, but no her only naughty secret is a bit of chocolate and perhaps a cream pie. no wonder she looks so good. ♪ >> russia got off to a flying start in the tournament's curtin raiser thumping saudi arabia 5-0 in front of a packed crowd which included vladimir putin and mohamed bin salman

a bit awkward in the box >> as the goals kept going in, and for infantino sitting between them saying that's football, that's how things go things were getting better and better for russia. fairly cordial at the start. handshakes between the two this is probably at 3-0, 4-0 as the goals kept going in that's what happened as for the goals themselves, russia got off to a great start. the moscow times said before the game that the team was doomed to fail those fears never got realized it was gra zizinsky who got the first goal, and then cheryshev came off the bench to score. then saudi arabia were just masters of their own downfall. every time and again they kept giving the ball away >> for a 5-0 match, it wasn't that exciting. it was a bit boring.

can we talk about today? >> go ahead. >> spain/portugal. spain had the whole controversy with the coach what will we look for there? >> now spain going into the tournament, one of the favorites. still one of the favorites with the bookies, but at the same time they had all this upheaval two days before tournament you never want to go into a tournament in a situation like this they have sacked their coach, lopetegui. he says he feels betrayed by the spanish fa, they said the same thing about him. fernando hierro is the one in charge now a spain legend in his own right. he's taken them into the first game he was speaking to the media trying to build up spain's chances again. and sergio ramos, the often villain of the piece, the spain captain in that press

conference, he said it felt more like a funeral than anything else >> how can we forget sergio ramos and mo salah playing as well today from egypt. he's up against suarez, isn't he >> yeah. >> thanks for that coming up, a dove ain hawk's clothing more on the ecb rate disn ecio when we return

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welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines >> the shanghai composite closes at a 20-month low as president trump looks poised to ratchet up trade tensions between washington and beijing by imposing tariffs on more than 800 chinese goods. draghi delivers for the doves. the ecb calls an end to qe but vows to keep rates low through the summer of 2019 >> tesco strikes a bullish outlook and says growth plans are on track sending shares higher despite slowing first

quarter sales. and rolls royce stocks surge as the company reaffirms its 2018 guidance. the trent 1,000 engine program forces costs up a day after the firm announces thousands of job cuts it has been a busy week on the data front today things are slowing down a bit. let's look at how u.s. equities are shaping up for this last trading day of the week. it seems as though the dow will open up quite a bit weaker, about 100 points or so of triple digit losses nasdaq opening weaker to the tune of 10 points. all of that is ahead of the u.s. releasing its final list of tariffs on chinese imports that should come out in the next few hours. looks as though u.s. equities are reacting to that somewhat as we also are seeing in european

markets this morning european markets have been -- they're tossing and turning because of one hand the ecb dovish at press conference yesterday, that helped send equities higher. on the other hand we did see weakness in asian equities and u.s. futures that's having an impact on european markets in about a half hour's time we're getting the inflation data in the eurozone. that's expected to come in at 1.9% on headline, 1.1% on core that should give signals to markets on the back of the ecb meeting. >> looking at fx, some big moves in euro/dollar on the back of that ecb meeting lots of dovishness there that sent euro currently lower we're trading around 3% weaker on the year, if i'm not mistaken so definitely a lot has happened in the last couple of weeks. dollar/yen around the 110.50

mark cable is trading at 1.3260 looking 2% weaker on the year. so both cable and euro have been struggling as of late. we talked about the fx picture let's talk about fixed income. this week has been a good week, a bullish week for fixed income even after a hawkish fomc. ten-year treasuries trading at 2.90, so not breaking through the 3% mark. also ten-year bunds retracing all the way back from 50 basis points 24-hours ago to 38.5 basis points now the ecb announced they will end their asset purchase program by the end of this year but will keep interest rates at current record lows "through the summer of 2019 or as long as is necessary. that guidance sent the euro towards the worst week in 19 months, with analysts pushing out their rate hike expectations

as they try to descipher the phrase through the summer. >> through the summer doesn't mean through september, if it was september we would say september. as i said at the beginning, it tells that this decision has been taken in the presence of a strong economy, with increasing uncertainty. >> while president draghi acknowledged political uncertainty has risen, he wentln italy's fears in the eurozone. >> we have 19 countries, we are bound to have 19 elections every now and then it may well be that different views from before are being expressed. what is important, however, is that these differences are going to be discussed within the existing treaties. these discussions ought to be

carried out within the existing treaties, even if these discussions contemplated changes, because we are talking all the time about deepening our monetary union this discussion is happening within the existing treaties and framework. >> let's bring in antonio garcia pascal, chief economist at barclays good morning to you. i want to ask whether you were surprised that we got explicit forward guidance coming out of the ecb yesterday and also that the decision seemed to be unanimous. >> yes, that was a bit surprising change in forward guidance was expected for later in the year it was all in one announcement, maybe draghi can go on holiday now for a year more seriously the reality is that it was surprising it was more dovish, and because the market was expecti ining ths

well past qe to mean six months, and now is nine months this is a reflection of those uncertainties ahead. the issue of tariffs impacting global growth and trade with the u.s. that's the main concern for the draghi ahead >> he's stepping down in october of 2019. do you think he has a hike in him before he leaves are you pencilling a hike in september? >> i am. i think september could see the first rate hike. possibly, you know, about six months later the second one. that will bring rates out of negative territory in 2020 a massive balance sheet where the ecb owns around 25% to 30%

of government bonds in the eurozone and negative rates in 2019 yes. i think draghi will see the first rate hike in september of 2019 before he leaves. so he can say a bit of mission accomplished he accommodated when he had to and also tightened when he also needed to. >> where do you expect to see the most immediate impact in the slowdown from qe efforts in september and then the end of this year? >> i don't think we have a huge impact in a macro perspective. i think keep in mind that we have not seen much of an impact already in the flows the key aspect is the large stock of bonds that they're holding. that's an important backstop for italy and for the rest of the euro area. in the past when things got ugly in 2011, 2012, you saw how the non-residents would sell those bonds. now a big chunk of those bonds

are with the central bank. and the ecb will reinvest them it's a big size. it's close to 30% of those bonds. that, i think, is helpful and should keep sovereign bonds a bit on check >> don't you think that he, his comments on italy, and he went at lengths to downplay the italian situation. he talked about the idea of the risk of denomination, even though a lot of derivatives accounted for that it's interesting how complacent he is about some of those risks. >> in a way it's politically complicated. two points on that the risks of this political problem in italy are high. they will remain elevated. one has to recognize it. the italian spreads speak for themselves probably they will not tighten much from here until the situation is clarified the risk is there.

it's meaningful. that could have an impact. secondly should the ecb or will the ecb do something about it? buy more, buy less i think the answer to that is no i think probably that's what he meant, that the italian situation should not and will not deviate the ecb from its laid out monetary policy path. >> you know, he doesn't seem that concerned about italian financial stability. what kind of data between now and then, he left himself wiggle room what kind of data between now an then could prompt the ecb to delay shutting off the taps, as it were? >> right things could go worse, and one aspect that could make things worse is trade italy is one let's say the italian situation in politics worsens, and that new government takes an expansionary fiscal policy against the european fiscal

policy, that could affect things and then the risk of trade war with the european union. i think the european union policymakers are a bit too dismissive about the chance. and it could be that tariffs on european cars are coming and that is important for countries including italy. >> antonio, do you think this is the last live meeting we'll get out of the ecb this-year we were waiting, waiting, waiting for this decision. it's happened. unlikely we will get another decision in the next few months. are they sending a signal to investors to sell in may, go back to trades >> if this is related to your previous question, if there's no fundamental shocks or stress, you're probably right. you won't get communication substantially going forward.

the ecb has not said much about kind of the pace of future rate hikes. they have not spoken about guidance, they have to give guidance at some point, but there's less rush for that that should be towards the end of the year >> sir, thank you very much for joining us today on the show that was antonio garcia pasqual from barclays. the new prime minister of italy is set to meet french president emanuel macron for a working lunch later today. conte had considered canceling the visit after macron accused rome of cynicism and irresponsibility after turning away a french migrant ship >> what's on the menu there, i wonder >> for lunch >> yeah. >> i don't know.

>> a major row over migration is threatening merkel's grand coalition. the conservative junior party has rejected a compromise that she put forward to avert a crisis merkel is at odds with her interior minister over his tough line on migration. he has been a long-standing critic of the open door policy of merkel. and the bank of japan is keeping its monetary easing policy intact falling behind the global tightening trend. makiko has more. >> the boj concluded its two-day policy meeting today as widely expected the board voted to keep its ultra loose policy unchanged the bank also revised down its inflation assessment saying the inflation rate is hovering between half a percentage point to 1%, which is far from its 2% target the boj governor has been

fighting low inflation for more than five years but it stubbornly remains low inflation in april slowed for a second straight month to 0.7%. governor kuroda said in a press conference after the meeting that the bank is studying how the rate managed to defy a number of factors that point to upward pressure on prices. the boj is keeping its foote o the easing pedal, american and europe peern baan banks are move opposite direction for the time being, the boj has no other choice but to keep the status quo, saying it will maintain it for as long as it is necessary. that's all from the nikkei back to you. >> thank you for that. when the bank of japan do move, it will be a big one we'll have to keep on waiting for them we had a big week as far as central banks are concerned. we had bank of japan, ecb, we had fed. so if you have any views on central bank policies, follow us

on twitter, streetsignseurope@cnbc. and more from monaco, where tanya breyer will speak to ignacio, the ceo of hijos d hijos de rivera.

. welcome back to the show rolls royce shares are surging after the company maintained its 2018 guidance. the enginemaker acknowledged issues with the trent 1,000 engine could cost 100 million pounds a year. rolls royce says it plans to offset the share the announcement comes a day after the enginemaker announced 4,600 job cuts tesco has opened higher after posting higher than expected first quarter sales in the uk like for like sales rose 1.2%. chief executive david lewis said

the company was exactly where it planned to be, but inflationary pressures remain h & m opened lower after posting slightly weaker than expected sales growth in the latest quarter between march and may. the fashion retailer says local currency sales including v.a.t. are unchanged from the same period last year. the chinese government has yet to approve qualcomm's acquisiti acquisition, the deal has become entangled in u.s./china trade tensions, and tariffs could affect the process and zte shares plunged as much as 10% after nomura cut its price target for the company shares fell more than 40% when they resumed trading on

wednesday, the first day of trading after they were suspended back in april, that's when zte was sanctioned by the u.s. government. it has seen $4 billion wiped from its value in the last four days in may the president said he decided to save the company. a tangled web. >> lots of companies caught in the crosswinds a host of business folk are in monaco at the moment for the ey world entrepreneur of the year awards. this year's theme is the collusion of industries and disrupters old and new are a major focus of the event tanya joins us from monaco it's a tough life but someone has to do it >> you're right. it's very tough to have to be here of course i would prefer to be with you and willem in the

studio i bit the bullet, i came to monaco where ey's world entrepreneur will be announced tomorrow over 47 nominees i have spain's winner with me, ignacio rivera thank you for joining me live on cnbc >> good morning. >> of course you're ceo of hijos de rivera. what does it mean to you and your business to be here >> well, for us it's happy to be here, to compete against other companies. our company loves beer our purpose is to be the most loved beer in the world, and i am very happy to be here >> of course the business, you're a fourth generation it was your great grandfather that founded it in 1906. >> yep >> has it been difficult for you

to keep to the family's heritage but also to expand business globally >> well, the family business is complicated. i think the secret is -- the family has to give service to the company. i never -- the company has to give service to the family you have to help the company and the family of companies, you take the company one day, and you know that other days you have to know the next generation comes. >> how do you keep the entrepreneurial spirit when you have such a heritage to stay true to? >> yes yes. it's emotional it's very emotional for us >> and for the last ten years you tripled in revenues, you've tripled. what's been the secret what makes you stand out

>> i think the secret is to believe in your purpose. it's very important to trust, to all the people who work with us, understand the purpose and believe in the purpose our purpose is to be the most loved beer not to try to -- not just sell beer, sell moments to people to enjoy our beers. >> you're talking about the most famous brand you have. you have a strong hold in brazil and now you want to take on the u.s. breweries >> yes, we established different subsidiaries in the world. in brazil it's our main business we're happy in the brazilian market now we're starting in asia with subsidiaries in china, japan and philippines. >> when you hear the news about

the trade wars with asia, among europe, the u.s., how do you think that will affect your business >> could you repeat this >> when you hear about the war of words, the trade wars, and you're going into asia, as you say, you're going to the u.s., you're in europe, how will this affect your business does it worry you? >> affect, no. it's an international market, but our -- our strategy is to have one factory we believe if you have one factory, it's impossible to brew different beer if you have several factories, it's impossible to brew the same beer our strategy is to combine with one factory, expand our company to different parts of the world. >> now, of course in spain there was a recent political turmoil does that affect you

>> the political situation >> yes >> spain is now changing, in a big change but i think spain now in this moment is better the pricing is stopping, spain is growing a lot we're happy. tourism is a fantastic thing for our country. for beer it's good, that people come and drink our beers >> if you won world entrepreneur of the year tomorrow, what would that mean to you >> maybe we try to win tomorrow, and we try to celebrate. and i think our purpose it's important to be the most loved beer it's our difference, not to

compete with other companies >> we thank you for joining us this morning good luck tomorrow >> thank you very much >> ignacio, thank you for joining me thank you very much from monaco. back to willem and joumanna. make sure willem doesn't have one of those beers hiding under the desk >> i wouldn't put it past him. thank you for that i'm struggling to pronounce the name of that company hijos de rivera. >> perfect >> i got it in the end >> let's look at how european markets are look on this final trading day of the week. cac 40 trading in the green. everything else is tipped to red. even dax is trading below the flat line. ftse 100 is the laggard down 0.6% let's also take a look at yields we've seen a big bounce in fixed income this week we have ten-year germany trading at about 40 basis points 10 basis points lower than the

ecb meeting. ten-year u.s. back down to 2.92. never broke through the 3% mark. ten-year italy is back through 2.60, trading at 2.58. continuing to get love u.s. futures, today is a big day on the trade side. we can see the dow is seen opening up about 100 points lower. triple digit losses expected there. s&p slightly in the green. >> that's it for today's show from us. i'm willem marx. >> i'm joumanna bercetche. "worldwide exchange" is coming up next.

it's 5:00 a.m. here are your top five at 5:00 the white house expected to unveil a new round of tariffs against china. at&t completing its deal for time warner. qualcomm bouncing on reports that chinese regulators have approved its deal to buy nxp. the president sending disaster aid to hawaii as their volcano continues to erupt. and mcdonald's choosing paper over plastic and drinks may never be the same. we'll explain on this friday, june 15th as "worldwide exchange" begins right now ♪