welcome to "street signs." i'm joumanna bercetche these are your headlines european markets open to the upside one day before a key tariff deadline with bay jiceijg warning the u.s. is opening fire on the world with levees. european carmakers outperform after washington reportedly offers german autos bosses a tit-for-tat solutions to cut tariffs to zero, while the eu talks with top exporters to avoid an all-out trade war with the u.s. a less than sweet result for

ab foods sends shares falling after the company deliver the a negative outlook for its sugar business. sodexo surges to the top of the stoxx 600 as third quarter sales growth eats expectations, but the french catering group warns of weakness in its u.s. business we were talking about how well the auto sector is doing, but we got some negative data out of the uk just out now uk new car registrations are down 3.5% year-on-year in june to about 235,000 units or so somewhat weak numbers coming out of the uk auto market, despite the positive mood in european autos today. let's talk about broader markets in general it's been a mixed session. in asia we saw equities struggle

a bit on the back of this upcoming debt tariff deadline. all eyes will be on whether or not both sides will impose those tariffs. the mood there has been sour in europe the mood is brighter we're seeing somewhat of a rebound in stoxx 600 the broad composite index is trading up 0.4% already in trading. let's get into individual indices here you can see that all of the four majors are trading nicely in the green. we have xetra dax up 1%. clearly always going to be in the crosswinds of these trade discussions. also ftse mib, the lead bellwether when it comes to beta moves and equities that's up about 250 points, so up 1.2%. ftse 100 up only about a third of a percentage point. also i should say that uk some brexit news, we have this important checkers meeting coming up in the next 24 hours that will be key to watch from the political standpoint

let's get into sectors as i mentioned, autos are leading the charge up 3.4% in early trading. this is, again, some optimism prevailing in that sector on hopes that an agreement may finally be reached between the u.s. and eu with regards to potentially cutting tariffs to zero food and beverages are struggling on the back of that food story. china's commerce ministry says beijing does not want to have a trade war with the u.s., this after the chinese finance ministry made clear it's waiting for the u.s. to make the first move before it implements tariffs on a wide range of u.s. products washington has said it would impose levees of $34 billion worth of goods on july 6th china said it would retaliate with equal measures on the same

day. europe's auto sector is on track for the best day in 18 months on a report that the u.s. ambassador to germany told german carmakers that a zero tariff solution is possible. he said that the white house would stop threatening tariffs on eu cars if the block lifted duties on vehicles imported from the u.s. the eu is reportedly considering holding talks with the world's biggest car exporters about cutting tariffs. the idea is being considered ahead of a july meeting between eu commission president jean-claude juncker and president trump. speaking exclusively to cnbc, the executive director of the international trade center told me that a trade war would have dire consequences. >> partners around the world, from china, european union, canada, mexico are all doing everything that is possible to

prevent a trade war from erupting they know the dire consequences this would have not only on their economies but global growth i think everybody is trying to see how to deal with this situation. with the demands that the united states is making on them and they're all trying to say all right, either it's a problem, let's sit down and negotiate they're waiting to see what response they get from the united states. >> gonzalez added global trade can be reformed. >> >> multilateralism is the most efficient way to deal with the interconnection of our economies. multilateralism and not unilateralism or nationalism in economy is what protects all countries. all of them. not just the small, even more so the big ones but when i say this, it doesn't mean the multilateral trading system as it is today cannot be

improved as a matter of fact i think it can and it should be improved to make it more relevant for today's realities that are a little bit different from the realities of 1995 when the world trade organization was born. reform it, not break it is the recipe i would offer >> let's go out to eunice in beijing. it's a huge 24 hours coming up what is the mood like in beijing? we found out recently they're waiting for the u.s. to make the first step in terms of imposing these tariffs. >> absolutely. china is preparing for a fight it's even preparing for a public relations fight. as you eluded to immediately just -- originally i should say the chinese said they were going to impose their tariffs a little bit after midnight on friday to match the u.s. 12:01 start time. however they changed their minds

based on a time difference so instead the chinese government said it would delay tariffs on $34 billion until immediately after the americans imposed there. they say china won't fire the first shot that means china will impose tariffs around noontime in china, which is quite unusual for the chinese in terms of a customs practice, but also shows how sensitive china has become to appearing like an aggressor they want to make sure they look like the innocent party, the good guy in the fight with president trump. in about 24 hours both countries could initiate 25% of tariffs on $34 billion worth of goods the u.s. will focus on auto parts, medical instruments, aerospace and i.t. china will strike back with soybeans, other crops, beef, chicken, whiskey spirits and

cars farm goods were targeted by the chinese because a lot of people here are supporters of president trump. both sides have duties on another $16 billion of goods waiting in the wigs. those could be imposed on chinese machinery, plastics. this is after a public hearing on july 24th for china, u.s. chemicals, coal are in the pipeline. there's discussion about what else the chinese might do to safe guar themselvguard themsels fight. there's been speculation about the renminbi and whether or not the government has been purposely de-valuing the currency to shore up exports and make them more palatable, but there's a counter debate saying that's not the case. whatever it is, the yuan hit the weakest level in almost a year this week. there's talk that the chinese

could loosen policy further. and it's already done that as of today. >> lots to think about there eunice, thank you for bringing us the latest from beijing i'm happy to bring in the head of global asset allocation from m. hewitt to discuss this further. eunice went over a lot of points there, in particular what china are doing to support on the tollcy side stoll policy side via the currency or other measures this $36 billion is not that bi in the global context of trade, is it? >> it isn't. but if you start joining the dots together, the specter of something that is far more dangerous for the global economy is out there >> has it incentivized you to rethink about how you think about your portfolio construction >> yes, it has so far we think it's more of a factor that induces volatility

rather than large market falls we hope that remains so. as we've seen with the auto tariff dispute, sometimes a stalemate in negotiations can end positively so we can't rule out the possibility that all this blows over in a few months but i suspect it will not. i suspect the trade stuff will continue to linger in investors minds and periodically shock the markets. >> isn't there an argument that, yes, it's been bumpy to get here, but ultimately it's a win-win scenario for the eu and u.s. if tariffs are going down on both sides to zero spent, everyone is a winner >> there's that. one issue is that the large u.s. carmakers are going to be hurt by this process of tariff escalation so one hopes the lose-lose

aspect of a tariff war is appreciated. unfortunately in the heat of the fervor sometimes that lose-lose picture is not always appreciated. i do hope that you're right, that that sense of realization that this is playing with fire does ultimately win through. >> when you look at the broader performance of u.s. equities year to date, some what disappointing. this is happening at a time when the u.s. is going strong, almost 4% the fed is embarking on a rate hiking cycle for the right reasons, because growth is there. we saw first quarter earnings come in strong heading into the second quarter, yet dow and s&p are around flat on the year. what's going on? is it trade tariff concerns? >> i suspect it's not very much to do with the trade tariffs i suspect that after the big run up at the end of last year that valuations had gotten too high there's an element of investors

thinking the market should derate for raward earnings basis, the p looks better valued today than a few months ago whether that's enough to propel the market higher is a moot question, because there are clearly threats. one big thing that bothers us at this point is the way the divergence is playing out between the u.s. economy and what we see in europe and china and the uk where the trend is towards slowing, the u.s. is going very strongly. that divergence typically is not comfortable for investors. that may be one reason why i think investors are shying away a bit from taking more equity risk >> we'll talk more about europe shortly. sticking with the u.s. then, looking into the second half of this year and picking up on the point of growth given the fact that the u.s. is the bright spot in the global economy, does seem to be exhibiting the strongest growth out there with the likes of china slowing down, europe is

slowing down a bit, doesn't that just mean if you have money to put to work you might as well just put it in u.s. risky assets >> as you -- there is a logic to that the unfortunate reality is that bonds are behaving in ways which suggest that there is not necessarily much confidence that the tax stimulus induced upturn in the u.s. will last. in effect the market is saying that the u.s. will catch up with the subdued picture that we see in europe and china going into next year so this is seen as a bit of a one-off that stimulated the u.s. for a couple quarters, and the unfortunate side effect of this is the federal reserve is intent on raising rates clearly the u.s. has a capacity issue problem, which has to be met by rising rates. rising rates is potentially a problem for the u.s. market. >> so some warning signs we'll continue this conversation

shortly. some corporate news. a strong performance in clothing chain primark has offset a negative outlook in ab foods sugar business the retailing company maintained its full-year guidance adding it expects to see progress in profit and earnings per share. ab foods sugar revenue was down while primark sales continued to improve. sodexo reported slower growth in the third quarter. this after it issued a profit warning earlier this year. the third quarter number of 1.4% beat expectations and the french food services firm confirmed guidance for sales and margins saying the action plan is still on track we discussed a lot of things already on the show. if you have any views, e-mail

us, streetsignseurope@cnbc.com and we are on twitte twitter, @streetsignscnbc. coming up, is greek government debt less risky we put that question to marie yo centeno in an exclusive centeno in an exclusive interview after isth break in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. ayep, and my teeth are yellow.? time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life.

welcome back to "street signs. improving home sales and a rise in average prices helped persimmon to a boost in first half revenue the home builder said it was confident in future prospects. bovis homes delivered a total of 1,50 completions during the period and saw sales increase by 8% the company also stressed that the uk housing market fundamentals remained robust euro group president mario

centeno said greek bonds are less risky speaking in an exclusive interview, he said the deal, which extends maturities and defers interest payments on one-third of greece's debt pay has lessened investors concerned, but added greece faces a challenge to meet creditors fiscal expectations. >> greece just got two years in a row more than 4% of primary surplus, sowe are converging t a lower level of primary surplus. if you ask me if it's demanding, yes, it will be. it's a challenge so this resilience across the economic and political cycles is crucial. let's make no stories around it. europe is ready, europe was

always ready, and we will continue working with greece in the post-program period to make sure that this stage of the process is a success >> greek government bonds were the first one to be hit in february, but also at the end of may during some political turmoil. would you say now that after this agreement on debt, ten-year government bond of greece is less risky >> i'm sure it is. it will be even more so after august 20th. you see the market, market reaction on the secondary market, bond market, reaction to our decision on the 22nd of june was very good. you saw reduction in yields, it's below 4% for the ten-year

bond now we need to gain dimension and size we are certainly looking forward for the greek authorities to go to the market and to issue but this is not a slow process, but looking at that experience you see that countries exiting the program gradually gain confidence along all curves, and provided the results are there we will be in good shape to face those challenges >> the head of global asset allocation is still with us on the show i want to talk about bond markets. i want to quote an adviser to bill clinton who once said if i ever die i want to be reincarnated as the bond market. you and i were talking about

this in the sense that u.s. bond markets now seem to be painting somewhat of a different picture versus u.s. growth projections we have u.s. growth almost at 4%, 3.7, 3.8, and you have the fed that's reducing its balance sheet. ten-year treasuries can't break through 3% what is going on >> i have to say i love the way sometimes conventional wisdom can be upended by events it wasn't supposed to happen like this. the federal reserve bank is releasing lots of bonds back into the market. yields were supposed to be rising, we failed not only to get through the 3% mark but falling back so we're behaving in a way that doesn't suggest confidence is there in terms of durability of the economic recovery. >> so you actually see -- you think this flattening that is going on in the u.s. curve could signal something a little bit more sinister later on in the

sense that it's probably flashing signals that a recession may be around the corner >> if not a recession, certainly a return to much more subdued growth the u.s. federal reserve thinks long-term growth in the u.s. is under 2% the economy is growing gang busters, and the bond markets configuration suggests that this is short-lived, and that the fed overtightened, and that ultimately will slow things down potentially bringing recession-type conditions. because other things are going on which are risks to the cycle. >> the risk is that the fed may have to overtighten. ecb has said to the market we won't do anything before summer of 2019. do you think then that the inverse is actually running the risk of not doing enough at a time when the economy is growing decent and inflation is picking up again >> economy is doing okay

it's clearly slowed from last year my sense is that there is no credible inflation threat. yes, prices are high, but underneath it all it's difficult to argue that europe has a capacity issue that will bring inflation to the fore. i think the ecb can sit and wait it out a bit longer. it would be nice to think that would help equity markets, but i suspect it will not. >> i was going to ask how you're playing it in europe from our earlier conversation it seems like you don't really think the valuation -- the valuations are attractive but you don't want to be long european equities here why is that? >> it's difficult because valuations -- in a sense europe has de-rated because of equity market weakness. if you look more closely you will see the u.s. is de-rated more than europe, because it's u.s. earnings that have come back

the u.s. market has not done particularly well. so europe has become more expensive. the macro configuration is fill not suggestive one thing that does strike you is the earnings delivery in europe is fitful, and there is an element of a risk premium that attaches to europe which doesn't attach to the u.s. in that sense i'm not sure we're being compensated in terms of taking a lot of european equity risk >> how do you feel about financials here? we saw a de-risking around the time of the italian election because financials was a heavily loved part of the market but the money has not gone back in again. do you see that as a buying opportunity? >> not yet i think the bars will come in on a deeper correction because the

market has not really derated sufficiently to make it attractive the issue with europe of course is that the exposure to the trade shock, if there is one, is potentially greater, more exposed to a china slowdown. there are a number of other risks even if we put italy into a nice little box and lock it up there's still a lot of other risks out there that hold you back europe is due strong performance. the u.s. shot the lights out over such a long time, it would be lovely to think europe can make a strong comeback, but i suspect the time is not yet for that to happen >> all right thank you very much for joining us glencore shares are roughly 4% higher after announcing a $1 billion share buyback. the commodities trader said the program will be split into two halves with the first purchases

due to take place by august. the move comes after subpoena from the u.s. department of justice which saw 4 billion pounds wiped off from glencore's value earlier this week. italy's generali is selling some of its life insurance portfolio for $1 billion the buyer is majority owned by private equity group sinvin. coming up on the show, pierre carlo padoan says it couny ultrcod have done more highlights from that interview are coming up next strong ♪ on me, when 't ♪ and i'll be your friend ♪

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welcome to "street signs." i'm joumanna bercetche these are your headlines european markets open to the upside one day before a key tariff deadline with beijing warning the u.s. is opening fire on the world with levees.

european carmakers outperform after washington reportedly offers german autos bosses a tit-for-tat solution to cut tariffs to zero a less than sweet result for ab foods sends shares falling after the company deliver the a negative outlook for its sugar business. sodexo surges to the top of the stoxx 600 as third quarter sales growth eats expectations, but the french catering group warns of weakness in its u.s. business we mentioned that tariff deadline coming up in the next 24 hours the u.s. were out for the july 4th holiday. today the mood is positive the dow is pointing to about 100 points higher open the nasdaq also seen opening up

higher actually this is fluctuating because a couple hours ago the futures were pointing negative there's been a turnaround in sentiment in the early hours of european trading there let's not forget we have got fomc minutes to focus on, too, later this afternoon we also have the non-farm payroll numbers. quite an exciting 24 hours coming up for u.s. equity markets. let's look at european markets the picture is much brighter this morning than what we had yesterday. we have the major indices trading up above 1%. dax and ftse mib up about 1.3% higher cac is up 0.7 %. let's look at how foreign exchange markets are doing the picture appears to be one of dollar weakness as far as euro and sterling are concerned both of those trading higher cable is around the flat line. dollar/yen has turned around a

bit. around 110.60. doll dollar/renminbi seems to be somewhat stabilizing around these levels in the uk, jaguar land rover warned a bad brexit deal could see it exit the uk britain's biggest carmaker said a hard exit would cost it 1.2 billion pounds a year, and put 40,000 jobs at risk. the ceo called for greater clarity from the government. and the uk will set its own rules over fishing after brexit. the british waters will be theirs to patrol

the proposals are likely to face opposition from brussels which argued eu vessels must be given access to british waters if uk fish products are to be sold in the rest of europe according to the bbc, the blueprint of brexit grants the uk freedom to set its own tariffs on imports the uk would use technology to determine whether goods entering the country would ultimately end up in britain or the eu, and therefore which tariff would be applied. not very complicated at all. joining me to discuss is the senior research fellow from the center for european reform before we get into the customs arrangement, let's talk about the eu summit last week. was that a missed opportunity

for talks to be advanced it seems like the europeans are focused on migration brexit did not feature much. >> it did not feature high on the agenda i think it's mainly because the uk at that stage didn't really have anything to offer the eu leaders to work with the negotiations have slacked. there's lack of consensus around the northern island, but also some other elements of the agreement. so i think for the last couple of weeks we were kind of already assuming that that would be the result that the eu leaders would spend only several minutes discussing and adopting conclusions on brexit of course there is fatigue and eu leaders are occupied with other challenges which makes it more difficult for theresa may to tour capitals

>> so given the fact that europe is focused on many european-focused issues, such as migration and political survival for the likes of chancellor merkel, what does that mean? what are the implications for how these brexit negotiations will be handled for the next 6 to 12 months will the eu because they're running out of time will also run out of patience? >> i think i would risk saying that the eu may already be losing patience with the uk, with the british government negotiating with itself and the meetings again is a sign of that i would say eu leaders have delegated brexit negotiations to michel barnier, he does a great job representing them. so i'm not sure whether theresa may's visit to berlin or to

other member states will be successful because at the end of the day, david davis needs to come to the negotiating table and discuss it >> given how little time is left -- like now the expectations have moved to october. october could be the last chance we also have european parliamentary elections next year to contend with given how little time there is, does that push up the probability of a no-deal scenario >> i think a no-deal scenario and the chances for a no-deal scenario are rising. i would not exclude that scenario business needs to prepare for this having said this i still think the break through could be achieved perhaps not in october i'm not optimistic about october, but if you -- if there was a break through in december,

that would not probably be the end of the world, but still that would make it more difficult to react to some unpredictable events, but to make sure -- don't get me wrong, michel barnier definitely set the october deadline for concluding the negotiations, so that both the european parliament and also westminster have enough time to analyze the text and give consent to it. >> just on today's proposal, we'll likely see this proposal, we don't know actually at the checkers meeting tomorrow, the concept of the uk being capable of applying its own tariffs yet at the same time continuing with frictionless trade with the eu, is that going to be acceptable >> i must say that i have an impression that the uk is or basically prime minister may is trying to convince cabinet members to something which will be outright rejected by the eu her proposal, which you

mentioned earlier, facilitated customs arrangements in a way it's between customs partnership and this other as you described. one key proposal is the uk tracking goods coming to the british market and actually whenever the goods are going to the eu markets, then the uk would be applying customs, which from what i hear from european stakeholders, eu officials, the eu will be reluctant for the uk to collect customs on its behalf also because of some experiences with chinese imports, all of the concerns in the past >> so then it's back to the drawing board. assuming all goes to plan, they make some agreement in october, the transition deal comes into play, is that enough time for

businesses to prepare? >> i think it's better to have transition than not at all still i think there's a consensus probably on the british and eu side that those 19 months is probably not enough for business to adjust i think we could see some attempts to extend this but that will come with strings attached. >> always the case, five minutes to midnight and with strings attached thank you very much. >> thank you police in britain say two people have been poisoned with the same nerve agent which struck down former russian double agent sergei skripal and his daughter the two were hospitalized after being found unwell saturday.

matt bradley has more. >> reporter: espionage and intrigue once again striking this sleepy corner of england. tonight investigators saying british nationals dawn sturgis and charlie rowley, who fell ill last saturday, were poisoned. >> following the detailed analysis of those samples, we can confirm that the man and woman have been exposed to the nerve agent novichok. >> reporter: the latest victims of the same deadly nerve agent believed to have been used four months ago against former russian double agent sergey skripal and his daughter seven miles away in the town of salisbury. british counterterrorism officials said there's no evidence the couple were specifically targeted, but they couldn't say how the pair were poisoned

but the couple did visit a park in salisbury the day before. the pair remain in critical condition as police cordon off places they visited. sam hobson was with the couple when they fell ill. >> he got up and started acting weird. he said he felt he'd been poisoned. >> reporter: hobson said rowley was sweating profusely, rocking back and forth, had pinpoint pupils before he collapsed all symptoms of novichok poisoning, the same russian made nerve agent that nearly killed the skripals and a police officer in march their poisoning set off a huge diplomatic incident with the u.s., the uk, and dozens of other countries expelling more than 100 russian diplomats russia denied any involvement in the skripals' poisoning, now a new development in a deepening mystery. matt bradley, nbc news, london the imf cut germany's growth forecast from 2.5% to 2.2% for this year. the washington-based fund said rising protectionism and the threat of a hard brexit have exposed europe's biggest economy to substantial short-term risks. but it edged its 2019 economic forecast up modestly to 2.1% protesters have clashed with

police in france in the western city of nont after a 22-year-old man was killed an investigation has been opened into the death of the driver elsewhere tensions between poland and the eu have escalated as new legislation came into force requiring a third of judges at the supreme court to retire at 5. the president of poland's supreme court defied the new law by going to her office as usual. the eu has accused poland of undermining the rule of law and trying to control the judiciary while poland says brussels should stop meddling in its affairs. i spoke to italy's former finance minister and asked if the previous government's policies backfired giving rise

to populist sentiment. >> employment over the legislature has increased by over 1 million new jobs. many of which are limited time contracts. the reason why the population did not support the outgoing government was twofold one, a purely security ground in terms of the perceived threat by the growing flows of immigrants, at least the perceived view of that, and because growth has been resuming after the financial crisis, segments -- the poor segments of the population were felt less left behind, so neglected by previous government despite the poverty allegation measures which were introduced >> how difficult do you think it will be for your successor, the new finance minister, to keep both sides of this coalition

happy? he's dealing with a party from the left and a party from the right. do you think the future government will actually have longevity given the conflicting platforms? >> if you take the so-called contract between the five-star movement and the league at face value, you immediately see that the amount of money needed to implement those reforms is simply unsustainable it could be several dozen billion euros which is absolutely inconsistent with any continuation of the fiscal adjustment pact so my expectation is that these parties will decide to tone down requests or there will be additional political instability in the country. coming up, spectators catch a glimpse of their favorite tennis stars on court

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welcome back rescue teams are racing to free 12 boys and their soccer coach trapped in a flooded cave in thailand as monsoon rains threaten, ther are several options. >> reporter: tonight the boys and their soccer coach appear in good spirits new video shows them smiling and laughing with thai navy divers a doctor treats their cuts and then one by one, they send messages to their families "i'm in good health," he says. another flashes a victory sign but the boys are also at risk. heavy rains could push water levels higher inside the cave. that threat is forcing thai officials to consider an evacuation soon. the province's governor said if there is a risk, we will not move them out.

rescue workers are doing drills, preparing for the moment the boys are brought to the surface. while officials say they're getting a crash course in diving and wearing full-face masks. none of them can even swim we spoke to a diver advising the rescue team who's been inside the cave about the mission. >> you're not confident they can do it? >> i think they can. i think it's possible. i think it's also a very, very dangerous choice to make, and it's very easy to go wrong because it takes a little bit of panic, and it will go wrong. >> reporter: he says a safer option may be drilling a hole a half mile down, right to the cave, so the boys can avoid a risky swim and trek that's at least 2 1/2 miles to the cave's entrance some passageways too narrow for scuba gear round-the-clock pumping has reduced water levels, but more rain means stronger currents that could cut off access for divers families watching that new video

of the boys are anxious to be reunited this mother saying, i'm dying to see him, i miss my son when rescuers do make a move here, the governor is now saying they may not bring all the boys out at one time. that it will depend on conditions, how strong they are, and whether rescuers believe they can pull it off caroline wozniacki crashed out of wimbledon on day three of the competition. the world number two from denmark was beaten in three sets by ekaterina makarova. wozniacki becomes the latest big seed to leave the women's draw roger federer and both williams sisters progressed to round three. adam is in wimbledon

>> a warm welcome back to wimbledon ahead of day four of the championships. fans are queueing to get in. they've been streaming in overnight. camping out as they do here. very loyal tennis fans as they are. and they have been getting up very early they're in the queues still a couple hours before play gets going. djokovic and nadal will be some of the highlights today as well as simona halep in the women's draw there's all sorts of tacktivities going tacktivity s -- activities going on this morning. including sponsors and official suppliers, one of them is lansome champagne, they have had a relationship with the championships for 40 years now i spoke to the managing director, paul beef vavis who ws proud to tell me what they do and keep coming back and why

their relationship with wimbledon is so strong >> when the championships finish, normally mid-july, we start planning for the following year it's a two-week event but takes over 50 weeks to get ready we've been fortunate enough to be here for 41 years we expect to extend by another five years so 46 years in total one thing about this event, you can never be complacent with it. every year you have to raise your game. step up. make sure what we're offering is right. and this year we've been ability to do that we were able to launch our first ever organic champagne here, which is fantastic we have our own french country garden and champagne, it's brilliant to serve the organic champagne here never take it with a level of complacency. always on the edge and doing the best we can. >> over the course of that whole relationship, how important has innovation been? what's been the biggest change

in peoples consumption and the way that you present the brand >> great question. in terms of consumption it does vary if it becomes hot, people tend to drink other products. if it becomes cold, they drink warmer products. there's a certain temperature for champagne, probably 68 to 75 today is a perfect temperature around innovation, you know, innovation of champagne takes years. takes five years to make a bottle of brute. if you can innovate today, you're not sure in ten years time or five years time it will be right the organics have been a major point for us, and white label which we launched at wimbledon two years ago. it was a lay on a slightly sweeter style of champagne that's more inform it worked well at the club clearly everything being white, it was a key combination it was innovation with intent. we also made wonderful bottle

jackets. we have done tennis balls, tennis courts, and tennis shirts they are jackets which they sell on the grounds here which people can take as a memento. you can have your wimbledon experience on the grounds or at ho home >> reporter: yes we have stepped outside of the safety of the tennis court i'm among the queue. people have been queueing many hours already. excuse me, sir you happened to stop next to me at the best opportune moment how many times have you been to wimbledon? what are you excited about seeing today >> tuesday was my first time i'm looking forward to a lot of great tennis >> what is so special about these championships. what excites you about tennis and wimbledon in particular? >> wimbledon is the most prestigious. i think it's the best tournament i've been to other ones. i usher at indian wells, but nothing beats wimbledon.

nothing close. >> have a great day today. we just moved back along the queue. excuse me, madam sorry. i wanted to talk to you for a second what time did you get here this morning? >> 6:00. >> what made you want to do that for wimbledon? >> i do it every year. i love the tennis. the atmosphere is great. tennis is great. >> who are you looking forward to seeing today? >> i will try to see novak >> good luck to him as well. novak djokovic one of the big names involved today day four of the championships. people very, very keen to keep coming back to wimbledon and a good reason to do so >> absolutely. i have to congratulate you for catching that tennis ball. that's it for today's show i'm cnbcjou, "worldwide exchange" is coming upnext

it is 5:00 a.m here are the five big things you need to know trade fight. china says the u.s. is opening fire on the world with trade threats. president trump calling on opec to do more to stabilize markets and reduce oil prices now. u.s. stock futures pointing to a higher open on wall street. investors return for the fourth of july holiday. a woman arrested after scaling the base of the statue of liberty. president trump's search for a new supreme court justice now down to just a few people. that announcement will be on monday it is thursday july 5th, "worldwide exchange" begins right