♪ welcome to "street signs." >> these are your headlines this morning from london. >> european stocks trade softer after china pulls harder into the close as the house of representati representatives throws it weight behind restrictions in another blow to beijing. oil and gas stocks outperformed as crude importers to nolonger buy iranian oil. no deal on migration, germany's colilgs parties fail

to reach consensus on key issues following late-night talks with meetings expected to drag on this week. and a win for uber as they can stay on the streets of london but it's short term with a limited license with conditions good morning, everyone let's check in on markets. chinese equities officially now in bear territory, down more than 20% from their all-time -- from the 52-week highs blue chips down 2.5% at 13-month lows that's permeated into the european session we got trading down at 2% already. we started off in the green and slightly but firmer but that quickly fizzled out and now we

see that the mood for europe has turned south and is trending a little bit south let's take a look at individual indices. all of the major indices are trading in the red, led by ftse. and we got xetra dax down. interesting this morning, we had french consumer confidence levels come out at the lowest in two years in france. so, again, some of the sentiments indicators have turned in europe in germany and also in france as well ftse, despite these weaker currency you can see the sector trading in the green this morning is on oil and gas. the respite we have seen in in energy stocks. after the comments coming out of president trump yesterday,

encouraging all counterparties to importless oil or no oil from iran, that's given somewhat of a boost to the oil sector. generally speaking most of sectors that we look at are trading in the reds. led by banks, down 1.5% and led by autos when we talk about trade, autos are the sector that gets hurt. u.s. house of representatives has passed a bill to strengthen investment on china. the new piece of legislation is separate from a treasury department on similar restrictions that may be released later this week and president trump has reversed his own call for measures that would restrict china's investment in u.s. firms the trump administration has made it a key priority to clamp down on chinese investments as

part of an effort to curb beijing's made in china 2025 plan president trump acknowledged that there was some confusion on the subject of trade at the moment >> we've got a little bit of uncertainty because of trade to me there's no uncertainty and other people that happen to be smart there's no uncertainty but we can't allow the european union to take out $151 billion out of the united states, we can't allow mexico to have a matter of fact ya deal that gives them over $100 and i call it profit you can divide that any way you like i call it profit we can't give china from 375 to 500. depending on your form lashgs $375 million it could be $504

billion it's a tremendous amount of money being taken out of our economy. we have to straighten it ut. >> president trump has again lashed out on harley-davidson on social media warning the motorcycle maker it will be taxed like never before if it moves production out of the untes. milwaukee-based firm announced it would announce a move to europe on tariffs. >> i have been have had r very good to harley-davidson. the people who ride harleys aren't happy with harley-davidson. but mostly companies are coming back to our country. >> meanwhile, profits at china's companies jumped 21% in may. the solid earnings come despite signs of a cooling economy and the growing trade dispute with the u.s. price gains and lower costs

drove profits up according to the national bureau of statistics a jump in producer prices for the second month in a row. and let's take a quick look at the close in china's equities, to be honest was pretty negative despite the slightly better data that came ou t industrial companies. of course that's a lot of that is spurred on by the discussions that continue to happen on the trading front. the shanghai closed down by more than 1%. in bear territory, 20% down. meanwhile president trump has threatened action on tariffs on eu cars adding, quote, in the end, it will all even out and it won't take very long you can see again, this is the picture for euro automakers this morning. mostly the ones being affect

ready the ones in germany a continuation of the price action we have gotten over the last week or so we got bmw down almost 1.5% already in trading last week alone the auto index was down about 6%. that's indeed a sector that continues to come under pressure let's bring in the head of equity strategy. clive, just looking at your asset allocation views, i see that you're still bullish u.s. equities that's not been an easy trade unless your position on technology, technology is the one bright spot in u.s. equities how are you thinking about it from a positioning standpoint? >> technology has been the stock

performer this year it's also the biggest sector in the market in the u.s. so hence it has an outside effect on the broader market from a trade point of view, it's offset by the impact of dollar strength so, we think that tech and the trade war skirmishes could have an effect on some parts of the fact not as severe for the tech sector. >> you're saying essentially, the relative strength of the dollar is what makes the u.s. market attractive, do i understand that rightly? >> i think 20% earnings growth this year is a key factor but dollar strength certainly is helping selective sectors in the market and conversely really pressureizing. emerging world that's the outreceive ffset to . >> in the business cycle, most

people tend to agree we're getting towards the end of the business cycle, late cycle growth in the united states -- does that mean perhaps this time you want to start switching away from cyclicals into defensives >> first of all, we clearly are in a late-cycle environment. we're not at the end of the cycle. identifying the end of the psychle is a thankless task. clearly, the psychle is nine years. we're towards the end of the cycle. but we continue to favor equities and particularly u.s. equities historically they have rose about 20% in the latter part of the cycle. >> we just saw the numbers for some of the chinese indices this morning, i guess, closing out the day there. from the chinese perspective,

their tech sector isy outperformed in terms of earnings i wonder do you have concerns about that performance continuing given what we hear from the trump administration about trying to restrict chinese firms from getting access to u.s. technology firms. >> the big chinese tech firms that are striving. er formans in the markets at that moment aren't intent on the u.s. markets alibaba listed in the u.s. aren't dependent on that performance. we would concede caught in the crosshairs but it's small company in th broader schemes of thing 600 billion, $700 billion u.s. companies. the driver of chinese technologies are domestically.

>> i'm just curious to hear where the headwinds for your u.s. equity calls are going to come from. you still want to be in positioned in the u.s. despite the strong u.s. dollar you're under weight to develop bonds as well. you want to be long in u.s. equities you believe the dollar is going to strength and the yields are going to go up and the fed is going to tighten in a bit more aggressively. >> in light of the recent developments on trade we have made changes we're not seeing that there are not clouds out there for the u.s. 22% earnings growth. that slows to 9% next year that's a concern the financial sector also a large sector in the u.s., a sector under pressure no doubt about it from the flattening of

the-year-old kumpk there are concerns out there the largest sector continues to well and that drives our optimism we'll be paying attention to the second-quarter earnings season an important staging post on the outlook for companies. >> clive, stay with us. switching to some european news now, german chancellor will cooperate with sanchez over migration policy she doesn't expect a europeanwide agreement to be met on migration they failed to come up with a solution with members describing the situation as serious now speaking of the bilateral summit, merkel said talks will continue on the several days

>> translator: still time to solve this the spanish prime minister spoke about the external dimension and i spoke about the internal dimension and in this spirit we'll have further talks in coming days. >> the u.s. supreme court has ruled in favor of president trump's controversial travel ban against a group of muslim-majority nations providing the u.s. leader with a political win. u.s.'s pete alexander has more. >> the supreme court ruling was a tremendous victory for this country. >> reporter: tonight, president trump claiming vindication. >> the ruling shows that all the attacks from the media is wrong. >> reporter: reveling in a rare judicial win onapitol hill, bashing the deal deal keith ellison the first muslim in congress should make all

americans nervous. >> as long as the president invokes national security he can do whatever he wants to do anybody. >> reporter: dismissed the third version of this ban watered down and politically correct. >> part of the never trump resistance as being a muslim ban. >> reporter: mitch mcconnell's campaign trolling, with this photo with neil gorsuch after mcconnell blocked obama's nominee. trying to the endorsement into a wider crackdown on illegal immigration. >> what we're looking for as republicans i can tell you is, strong borders, no crime what the democrats are looking at is open borders which will bring tremendous crime. >> reporter: that controversial stance igniting a fierce backlash and confrontations.

transportation secretary e laine chao with mitch mcconnell challenged by protesters >> that was nbc's peter alexander. if you have any views on that travel ban get in touch with us on twitter coming up on the show, a near four-year odyssey comes to an end for an ajapanese spacecraft also later, celebrity chef wolfgong puck leaves the kitchen and joins us on set as he prepares to launch a new menu at his restaurant in london stay tuned

welcome back to "street signs. the u.s. is pushing allies to stop all imports from iranian oil with the trump administration unlikely to offer

any exemptions the price of oil rose off the back of the news despite supply concerns some of the key oil stocks are doing this morning, on the back of the higher move in the oil price a lit bit of a rebound in some of the major european oil stocks, total is trading up .56% most of these blue-chip stocks are actually benefiting from the rebound in the oil price but, of course, speaking to steve at the recent opec meeting, he said sanctions would not stabilize the market >> translator: sanctions never lead to any good there's no doubt about it. as demonstrated by practice and many years of experience we think that the introduction of such sanctions restricts competition in global markets,

not stabilize the overall situation and therefore does not ensure future energy security. >> total is one country to completely shut down its operations in iran but the chief executive of tfic of the company said he's pessimistic. >> always been clear on that, everybody, we went into iran because the oil lifted under sanctions from the u.s. and not a single an international company that can work with sanctions. it's just the reality of the world. >> the head of equities is still with us. what's interesting there's a bit of a disparity in what happened inthe spot price of oil versus energy stocks which have

relatively lagged relatively to what we have seen in prices of crude and brent, why is that the case sf. >> part of it is the restructuring in recent years, where they're focusing on more the value-added part of the oil supply chain, specifically around the refining area, that could be one reason for it also, we've got the disparity between brent and wti because of the excess supply that we have in the u.s couple factors in work the main focus of the market continues to be given the outlook for growth, how probable is it to remain in 65 for brent. >> s there was a lot of bullishness going into oil and you could see it in the data pointing to heavy positioning in the commodity, now that opec has happened, some form of agreement

to increase output whether it's 6k or 1 million barrels a day, is there a case to still be bullish on oil, what are you recommending to your clients. >> we remain it's a preferred sector for us. we remain quitpositive we think growth remains positive, we would say we think that oil prices likely to remain elevated we don't significant further gains from here. we think opec and russia could step to increase supply. from congress, we don't see a downside either. when we look at the u.s. -- we see growth remaining -- >> other sectors that are exposed to increased oil prices, energy prices, is it possible to turn all the geopolitical norm

and look at demand as a price predictor. >> i think underlining demand is place in the background and that remains quite positive that's clear based on some of the demand guy dance from the iea. whether it's development between u.s. and iran, that what moves the markets. the president trump and his administration force v, that kind of mood music has added about $3 to oil. the underline demand picture remains quite positive >> before we let you go and let's talk about brexit. you've got airbus, bmw, global companies criticizeding the government because there's so much uncertainty about membership of customs union, do

you think investors will get a return on their money in the ftse 100 at moment. at the mom. ftse 100 is driven by commodities, primarily hence the mood music on brexit is not so important. for the ft brexit we upgraded on the uk. neutral.ore holding or a we have become more positive >> one final quick comment on the bound. long-term challenges on the pound from the brexit. >> it's much more driven by the headwinds that we see. on the pound it's difficult to take a very, very bullish stance unless one believes there will be a revote or a positive outcome to prex sit. clive, appreciate your time this

morning. that's clive mcdonnell japanese space probe separately has closed in on an asteroid 300 million kilometers away it will try to land and send samples back to earth. the nikkei is live this morning. yes, according to the japanese aerospace exploration, it arrived within 20 kilometers of its target asteroid after traveling for 3 1/2 years. it's sent newly taken pictures of the asteroid, a near-perfect round shape but turned out to be squarer with many craters on the surface. they'll try to land on the asteroid and the plan is to collect sam presidents from the

astero asteroid's surface it will then try to send them back to earth in late 2020 the small asteroid, between mars and the earth it's thought to contain organic matter. they hope it will offer insights into the origins of life. >> thank you for that. now coming up on the show, uber is granted a license to operate in london but the deal comes with some strings attached stay tuned to find out which ones - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling

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welcome back these are your headline. >> reporter: european stocks trade softer after china falls harder into the close. that's after the u.s. house ofo migration, germany's coalition parties failed to reach con essential does after late-night talks with more meetings expected later this week.

uber can stay on the streets of london but the reprieve is short-term, a limited license with conditions. we saw asian markets trade softer overnight that mood is continuing into europe this morning with all of the major indices also trading in the red we got ftse, the main underperformer here down almost 240 points or a bit more than is%. dax, again the exports oriented index struggling and cac 40, weak consumer confidence numbers coming out of the french index this morning. as well all eyes on that eu leader summit coming up in the next several days. thursday, friday you'll be there.n things around

foreign exchanges. the dollar has been front and center with all of these tra talks going on today, they're trading a little bit weaker the dollar is manifesting itself there a little bit and some of the safe haven flows are going in dollar/yen. the yen is trading stronger to the tune one third of a percentage point i want to draw your attention to doll dollar/a lot of focus on chinese equities at its weakest level it came out 6.5569 overnight it's interesting to see what happens on the currency from here some people have said perhaps one way china could retaliate is

by using a weaker currency keep an eye on that. it's trading at .4 versus the dollar the dow has seen about 180 points longer. nasdaq about 60 points lower should also point out that the dow closed below its 200-day moving average again anyone who watches out for charts and technical analysis will be mindful of that. one big story we have been following the transport regulator in london has granted uber a license to operate in the british capital but that comes with strings attached. they gave a ride sharing a probationary 15-month license in a ruling yesterday, in return

uber must implement new goffer nance and carry out an independent audit over six months i mean, this is a serious, serious decision in the short term >> what's interesting, when you look at the conditions, a lot of the conditions that tfl license comes with have started come into force since january once the decision was made in december, not renewing that license. uber made changes. h they made big changes, a big change, the number of hours drivers are allowed to work. other conditions, uber need to train drivers in ride sharing. that's vague some of were very vague.

it's not clear when uber when will do that and how much will have to do that. uber have complained with a majority of those conditions the key isn uber keep this up through the 15 months that this is going on uber actually suggested having a 15-month contract. we could show you 12 months of how we're doing and three months to assess how we're doing. the judge was happy to grant them the ability to get a new license. they weren't asking for a standard five-year license that's one of the big things that swung the tide in favor of uber. >> it was only a 15-month extension. i want to ask your opinion on that 18 months. potentially longer a little bit short of that with the implications are for uber as a company. the second thing is, who's coming out victorious here it is uber, tfl or the unions?

>> the 18-month number was floated before the trial happened uber's defense lawyer said they're happy with 15 months, 12 months to show that they can implement it and three months the regulator has to assess what's going on. this was a big impact on political posterring t fshg l has faced intense pressure when the cab, there have been protest and from the cab drivers here in london they need to show they were doing something about it and they forced uber to make at who of these changes that are better for public safety. that's big one for tfl london is still an innovative place, we're still welcoming in these companies like uber who can operate here for uber this is a big win for the ceo who came in last year.

his whole thesis for uber was clean up the company apologizede to meet with regulators. this is a very, very different uber, lot more hum mrer and much more accepting to work with regulators it shows the company's able to work with regulators investors in this company are going to want to see uber can operate in major cities around the world without facing regulatory problems. uber has moved away from china it sold its business in southeast asia major, major cities like london are becoming more important for this company's revenues. it was a win for uber and tfl. a loss for the cab drivers here. >> any discussion about the licensing fees, they have renegotiated the short-term contract, they have the ability

to raise the fees they're charging uber. fr >> exactly, i think for tfl if they get a company of uber sides they're able to get more money from them. that's a big win also, you got to remember, there was a big consumer backlash when they say they weren't going to renew the license, it was quite important for tfl to be on the side of consumers and not act too innovative here. >> thank you for covering this story. i'm sure uber will be back in the headlines in the next month or so, couple of months, they're prepping for an ipo. now elsewhere, a te sshgsz la battery caught fire twice according to preliminary report by the national transportation safety board vehicle crashed into a light pole and caught fire the battery reignited when the

battery was removed from the scene. and another tesla caught fire in california model 3 delivery numbers will fall short of expectations the carmaker is expected to deliver its second-quarter results early next month tesla's chief executive officer elon musk said, quote, likely to meet third-quarters estimates. facebook is reversing its ban on cryptocurrencies ad the tech giant will continue to prohibit ads oial clint offerings. last january, the price of the bitcoin was soaring, they banned

all crypto ads to prevent any scams. it's backed the initiative, it could become one of the world's largest blockchain deployments. to talk a little bit more about trends in online payments. a lot i want to ask you about in terms of what's going on in the u.s. in particular obviously a big story was the supreme court decision on amex and for those who don't a huge amount about this, essentially the judges decided that amex was able to enforcagreements with vendors. they should not steer kocustome to less expensive cards. aid that's not acceptable. fees are high in the u.s. for

credit cards lot of other options out there is that world going to come to an end >> with the supreme court decision the trend among cost acceptance among interchange to is down. at the united states, four, five years, they passed the durbin amendment, in context of debit, capped the fees at two-thirds below from where they were previously competition over time will tend to lower those fees as you see new entrance come into the market come into acquiring new markets. fees will come down due to the competition. there's more competition today in the united states and most of our payments markets than there has ever been. >> you mentioned ali payment

there, foreign currency exchange fees what does new technology have to offer them all of these brands that are getting in there, are they going to be able to disrupt the marketplace for the dominant entrenched players >> i think they're nice addition to the marketplace visa, mastercard and the like, in context of china, china pay, in context of india, they're all cheap, transparent and those things are hard to displace. further fragmentation of the base people will use different types of payment services. that's good for global payments. the more choice that we can provide to the her xhant, particularly the mall and mid size business, the better it is for everybody. the fragmentation of business is good for merchants and for

consumers. >> are incorporating blockchain at all into your technology we speak to a lot of people and talk about how blockchain, to remove some of the inefficiencies when it comes to payments and invoicing, plenty of inefficiencies in the market, how are you thinking about blockchain technology as global payments >> in 2014, global payments we actually enabled bitcoin as a payment type for our customers, we were one of the early adopters of block chain technology we had relatively low demand for what we do in the context of bitcoin because to be honest the system is relatively efficiency and fair amount of spread as it pertains to volatility we're heavily involved in blockchain i think over time that will

change how we go to market but that's going to take a fa fairfai fairly long period of time. >> you have a fair amount of exposure in emerging markets but a lot of that is contingent on having the right infrastructure. >> well, we do have the infrastructure in some of those markets. we have a good exposure to faster growth markets particularly in asia and here in continental europe but in many cases, in the case of india and mainland china we're required to and we have a physical operating and technology presence in those markets. as a technology company we can put more things in the cloud to achieve scale that's what we do.

but some markets, like russia, mainland china, you're required by regulation to keep the data and the technology within the four walls of those markets. that's exactly what we do. we have the ability to have scale in those markets where we do it. the ability to process and manage that data and an lalytic. >> interesting a lot more to discuss. jeff, thank you very much for join the show today. now coming up, we'll speak with celebrity chef wolfgang puck as he prepares to launch a new menu at his london restaurant stay tuned the first of alzheimer's disease is out there. and the alzheimer's association

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well, steak may be wall street's hottest commodity a small eatery minutes away from the new york stock exchange has launched the wagyu steak

sandwich containing five ounces of beef, it cost around $185 and all products are sourced from a single japanese farm. don wagyu has three sandwiches on the menu with the cheapest price at around $35. celebrity chef wolfgang puck is launching a new menu at his new london restaurant. it's great to have you with us on "street signs." reading about this $185 stk sandwich it's surprising we're a business channel and we talk about consumers don't have the discretionary income to spend, but people are willing to dish out on $185 sandwich. >> sometimes you want to spend the money especially if you do well on finances in wall street. in our restaurant, you could

have a steak for example, japanese beef, but you also can have like a hamburger made with the beef with the cuts or end cuts and you spend $28 or 28 pounds i think we have a better -- also in the setting which really is great. you know, i don't like to eat a sandwich like in five minutes and said, it was great i like to sit at a table with some comfort, enjoy a glass of wine and then have a good steak. >> that sounds like a great lunch. i want to bring in though, the industry, it's a difficult time for the industry high-profile numbers, jamie oliver, restaurants closing, et cetera, there's a lot of pressure in the industry, how do you continue to thrive and grow in this environment? >> well, i really believe there has to be an evolution, we're like a fashion house, if you do the same dress every year, we bought it already twice, that's enough, i have it in every

color. so we have to change the menu, we have to change the wines. we have a koching tail program you can come to our bar upstairs and have cocktails and go home and be happy having a great glass of wine and you can get good wines not too expensively. i found now some wine producer i worked with and we make wine together like in australia, they make great riesling we make wines that are affordable because i really think people want value. >> you started a career as a sous chef, you move up to managing your own kitchen, you have a staff, you end up opening

separate restaurants at a certain point there, you lose direct control of what's going on in your properties and i wonder, for you, how challenging has that been i'm going to delegate this, things beyond my control, that's how i grow and make more money. >> you're right, i have two young boys i can't even control them 100%. they go and do what they want. in the restaurant, we have to create a culture, my partner here in london he's with me for 20 years, he already got british citizen ship here. he loves it here and he'll stay here i know i have somebody i can trust, somebody who will execute the way i will do it and that's the most important part. >> the people. >> do you feel consumers' tastes have evolved over the last 30 years, people nowadays are a lot

more focused on healthy living they want to know where the ingredients are sourced from and the environmental impact of what they're eating >> to me it was the case, when i started in the u.s., i drove personally to the farm and talked to the farmers, picked out the vegetables i went north to idaho, and looked at how they raise the cattle, i'm interested where things come from and my mother was always, i want to know how you treat what you eat so, if you treat the soil not right you're not going to have good vegetables. if you're not going treat the animals right i'm not going to buy it >> i wonder, do you think investors put their money in the restaurant for the returns or for the experience. >> i really believe for us we have to give people a return if you don't an, what will people

do i invested, it's good food but we didn't get our money back for me it's important to be financially responsible. i treated this with my own money. i don't waste my own money and i certainly don't want to lose my money from my friends. >> when you decide to open this new restaurant in london, always a case of someone coming to you with a proposal and i want to open a restaurant in loen don, let's make it happen >> we have an agreement with dorcester group. why do we work well together it's a great synergy a luxury hotel needs a great restaurant >> thank you so much for joining us this morning. l have an asian concept this week that's why i'm here. >> the pop-up is from the 27th

to the 30th of june. thank you. you got the new afternoon tea as well >> afternoon tea, but i think i'm excited about the chinois pop-up it's 35 years old. it's still strong. lot of people from england come there and love the flavor of that. >> sir, thank you very much for joining us and we look forward to trying out the afternoon tea after "street signs. lionel messi inspired argentina and ensure there was no embarrassing group stage exit out of the world cup they beat nigeria and qualified for the last 16. adam reid is with us. >> argentina famous for steak, of course, there is very much a messi show for argentina but a good one for a change. considering that tournament so

far he finally arrived at this world cup, just have a look at this goal. it was absolutely superb two touches believe it or not before taking on that shot unbelievable on the run, there's a ball coming over his shoulder, on his thigh, on to his foot, and youm, you've been waiting for this to happen. >> it was very stressful >> it didn't look like it was going to be enough though, because later in the match, nigeria secured the point that could have sent argentina out. time running out for argentina, messi has lost three major finals they're still about in the tournament qualified for the last they left it late, rojo with the winner >> quick stat on messi, only person in interested to score in his teens, 20s and his 30s

with that, let's take a look at the u.s. futures are like it's not a good open that's it for today's show worldwide exchanges cinup xtisomg

it's 5:00 a.m. at cnbc global headquarters top five at

the five stocks on a slide again. investors getting more nervous around the globe. a federal judge ordering the united states to reunite families separated at the border. oil prices popping more on that big story shares of world wresting entertainment surging. and boeing just unveiled something that could be game-changer for all of you frequent flyers out there. it's wednesday, june 27th, and "worldwide exchange" takes off