welcome to street signs. president trump arrived at nato headquaters for a second day of talks over defense spending and russia's influence in europe european equity markets fell back following asia into the green but oil spots underperformed following the biggest one day drop in more than three years reaching for the sky, shares in the cable company rise after comcast ups it's bid to $34

billion pushing it above a fresh offer from 2 1st century fox croatia faces france in the world cup. >> now higher oil prices could prolong consumer fears that the economy could be damaged that's according to the international energy agency that says this could hurt demand growth in the latest report they blame concerns in iran and venezuela with a level of crude prices and the head of the oil industry and markets joins me down the line good morning to you sir. the last time we spoke we had this big opec meeting and i'm just curious to hear whether or

not in your view the decision taking to increase output production is welcome and how much extra production you're factoring in. >> well, the decision to increase production so that the opec group as a whole match the actual commitment is very welcome because there's considerable uncertainly over the next few months about the level of exports in iran of course there's considerable uncertainty about the situation in venezuela and recently a renewed conflict in libya so the instability in libya is another factor so the prospect of higher supply from members, which we have already seen signs of of course, that's going to ensure stability of oil supply to markets over the next few months. >> now president trump who obviously is in europe now send a multitude of tweets directly

at the opec over the last couple of weeks or so demanding that they do something on the output side to help bring oil prices lower. do you think these type of tweets are effective >> well, what the president has in the back of his mind is the fact that higher price dos have consumers and that's united states of course but also around the world and in the last couple we've drawn attention to the fact that higher crude prices went into higher prices at the pump for consumers all around the world. whether in the end we do get higher production and we'll have to wait and see.

>> another factor that president trump seems focused on of course is his did he recall nation to reduce iranian exports to the rest of the world. there's asian marks from china and india as far as iranian exports are concerned. >> the data we saw for the month of june suggests that european imports from iran did go down quite substantially but having said that they were at much higher levels in april and may but may well be a pattern that european customers are cutting back their purchases can reduce iranian exports by the maximum possible and the meetings between u.s. officials

and officials from leading customers of iran to try to find alternative sources of supply. we'll have to see how that plays out during the summer and before the sanctions come into effect at the beginning of november. >> thinking about the latest developments in oil space we saw a big move in the price of crude and brent down how much extra production do you see coming out of libya by the end of this year. >> we should put some context here libya was producing a million barrels a day for about a year and over a period of a few weeks that fell down to less than half of that and now it looks as if it's recovering so we don't know how fast it could recover but it could get back to the kind of levels it was at before the recent destruction and that

could happen fairly quickly but we can't be entirely sure. that requires a great bit more investment the market has reacted to the return of libyan oil which you suggest. we'll wait and see how quickly it does come back. but it's supplies are very welcome. >> thank you for joining us, sir. president donald trump joined other world leaders in brussels. he is set to lock horns with his counter parts over defense spending as well as the role of russia within europe hadley of course it was a controversial start to the summit

and then president trump later on in the day tweeted not only did nato members need to reach the 2% spending start but should aim for a 4% spending target. >> already tweeting this morning on the second day of nato talks about germany once again slamming them for not spending enough in terms of defense spending but also the fact that he's very, very worried that the know t nato alliance is under threat because he thinks this pipeline is not secure and the germans shouldn't be paying the russians at this point. another question is how much they're able to get done because the u.s. president will head to lon on the this afternoon. >> yesterday's work meetings on a range of subjects went well. we'll continue this morning but in a far more peaceful atmosphere and with a will to

stay united. to modernize and react to new threats we have suffered from in recent years i believe it's what we owe our armed forces >> the friend president there saying that nato allies are seeking to remain united and they'll be speaking about everything quite calmly and in a calm atmosphere and the big question going forward is what all of this will mean for the u.s. president. >> we're also forgetting their first meeting on monday and you'll be there as well. i just wonder whether the other nato allies are looking at this meeting and wondering what language is going to come out.

>> whether or not the status quo on crimea will maintain. one of the things on the agenda is the situation in syria and what to do about that and take a step back and think about what the russian president has been up to the last couple of days while the nato summit is grabbing all the headlines and he also met with an envoy from iran you have to wonder what he's really thinking at this point. he may be sitting back and laughing because think about how this is going to play. whatever happens at this meeting, the president is going to be criticized for it but the russian president is going to be sitting pretty. >> absolutely. one last question i want to bring up 4% defense spending target, the u.s. thelmselves are not spendig 4% so i wonder where that number

came from. >> your guess is as good as mine but that's something with much of what the president says and tweets is open to interpretation and something i have been saying all along this morning is you have to remember that the president is also always thinking and tweetding to his base of supporters and people that elected him and this plays well with him at home. >> thank you for bringing us the latest from nato and we'll be seeing you tomorrow now for more on past attempts to get nato allies to raise defense spending head to our website cnbc.com and if you want to get involved in the conversation email us and you can follow us on twitter coming up, china is shocked by america's latest move as the

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welcome back let's take a look at how markets are shaping up this morning all taking a big hit on the back of further restoration after the u.s. proposed an extra $200 billion worth of tariffs on chinese imports. that sold all trades yesterday overnight however what we have seen is asian markets have bounced a little bit the nikkei trading higher than one% we have these and you can see it in line trading a little bit higher as well but 5,100 is up

30 points or up .4% and struggling yesterday as i highlight this many of the typical factors that you would associate with trade came under fire they have all bounced back this morning but it's a measure of 1% and then underperforming financial services .3% but some corr rat news, now comcast has upped it's bid for tv company sky it's over 2 pounds a share to

14.75. the move came after fox boosted it's share to 12% a share. this cash offer has been recomme recommended by directors broadcom announced an 18.9 billion deal to buy ca. the move comes four months after the company's bid was blocked by u.s. president donald trump on national security grounds. it brought some shares in after hours trade. teresa may will today release a blueprint for the u.k.'s future relationship with the eu that called for the resignation of two this week they will step out the government plans and just taking

a quick look at how the current sy reacted not much and if anything is on .2% and with former u.k. foreign secretary overnight, and asked for the residence egg nations of david davis and boris johnson make brexit less likely. >> it did become slightly less likely brexit is still very likely to happen and go ahead but people that have re-signed and others that threatened to re-sign are in my view making brexit a little less likely or making some crisis ahead of brexit which greatly complicates it or leads to a big delay or second

referendum it's hard to predict what because they're making it easier for the european union not to make concessions if they think the u.s. doesn't have a united stance so they're in danger of starting to repeat their own cause. >> he expects a debate in parlment around the time the paper will be published. speaking in brussels he also said neither can the eu. speaking this morning, he's set to discuss the plan later today and of course this will be the first appointment. but make sure that you tune into cnbc when we'll hear from the

newly appointed british foreign secretary. now two of the antiimmigrati-imn ministers have met they held bilateral talk where is they discussed reducing migration into jurors and reinforcing the external borders. he said he had found an ally. >> in italy and germany a part of friendship begins we share the same objectives we'll be asking by true support to control the external boarders and to change european naval regulations. >> and total sales at asos rose 22% in the first four months of 2018 below expectations.

however the british e-commerce firm reiterated it's guidance for the full year passing between 25 and 30% and now expects pretax profits between 101 million pounds in line with consensus. n norwegian air saw a profit of $300 billion despite predicting a loss for the quarter they have been singled out as a takeover target but the company has so far rejected aig's advances and aker posted a slight beat on the top and bottom line. the oil and gas industry service provider pick up in first half orders but said there will be continued pressure on pricing.

>> england is out of the world cup after losing 2-1 and our expert joins me. your take on yesterday's match >> well i think there's a lot of feeling at the moment that is this the end of something? of course it is. england's campaign to try to win the world cup but it's also the beginning of something they went into this with such low expectations they far exceeded them an unbelievable achievement for a nation that didn't even exist the last time it got to semifinal. an exciting game it started so well for england them ahead with 5 minutes

goneful trippier, great free kick but pressure in the second half when croatia came back and another one of their big game players, mandzukic he could barely walk but doing a good job celebrating these are the scenes at the final whistle and this is the contrast between success and failure in a world cup england's hero made great saves. croatia elated to be going through where they will be playing france who are trying to win their first world cup since 1998. >> who do you think has a better chance of winning that >> it's going to be a really interesting game croatia has never been there before three sets of extra time and two sets of penalties to get there no side has done that ever actually up until yesterday they got the

furtherest that england have france will have an extra day to prepare. they played well against a good belgian side so he's a break out talent for them three goals. the only man that can stop harry kane pulling off stunning saves he criticized the media for saying croatia should be tired and they should pay their croatian for respect. >> they have done three 120 matches in a row now. >> absolutely.

>> absolutely. no one has ever really done that so the point that they're still going is quite a testament to them they are showing the effects so whether or not they can be patched up and get through on adrenaline it's going to be an interesting game and the first time they met since 1998 when france ended back then as ell. you have gone through this tournament essentially and you're playing through this but

depending on which two sides the two managers decide to put out as we saw in a group stage, they might rotate again to give people a bit more world cup experience the fact that they're going to learn a lot about thermselves during this ournament. >> they're a young team they will be playing together for a significant alt of time. >> good things to come there. >> adam as we head toward the end of the world cup, looking back do you think the introduction has been a good thing? >> over the course of the tournament we have seen it go and a bit of a roller coaster.

in the group stages it was quite a lot and there were some decisions still be debated because essentially there's still a human element at the end of it. the idea of being a clear and obvious foul or challenge or mistaken identity or anything like that to be sorted out it's very interesting that the whole world cup we haven't seen it and also the second part is the fact that it's been a feature at the knockout stages. in a game against england and croatia. but as far as the referee running to the side of the pitch i can't remember when that's happened. >> thanks. now while it wasn't to be for england in the world cup sell finals the game almost did end up in a round of penalties

for the latest head online to cnbc dol and if you want to get involved in the conversation if you're feeling emotional you can e-mail us at cnbc.com and also tweet us at street signs cnbc. coming up with the show the special relationship under strain mass protests are planned for the visit. we'll be back with more after the break. ic ocean. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪

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these are kroyour headlines president trump arrives for the second day of talks as world leaders lock horns over defense spending and russia's influence in europe. european equity markets bounce back but oil stocks underperforming following the biggest one day job in more than three years. reaching for the sky, shares in the british cable company rise

pushing it above a fresh offer from 21st century fox and croatia faces france in the final of the fifa world cup after they crash out of moscow >> u.s. equity markets close yet as sentiment got hit by some of the trade war concerns we saw emerging marks get hit but today the picture is looking more positive as far as the u.s. is concerned dow opening up about 100 points higher that's after ending the day 200 points lower nasdaq also seen about 20 points higher let's also not forget we're heading into earnings season and it looks as though expectations are pretty strong around the 20%

mark so fundamentally this story is still looking good. >> let's switch. the picture is looking pretty good there the rest are up. leading the charge this morning brushing off all of the political developments going on as well and it's a big day, a couple of days in the u. s. but the first visit from u.s. president donald trump who is going to be here in a couple of hours time and let's also take a look at the foreign exchange picture as well this morning we have moderate gains across the board. trade is a little bit stronger as well and some unwind.

it's about .3% and talking about trade wars you can see there a reversal slightly stronger today to the tune of about .10% president trump arrives with his highly anticipated first visit set to be marked by protest. over 50,000 people signed up to demonstrate against president trump with his qualities and demonstrations are planned at various locations during his four day trip. speaking to cnbc, he defended president trump's visit. >> should have a close and warm relationship with the united states because our interests as a country is in every field. not only defense and security but so many commercial fields as well it's so strong so a president should always be welcome here but of course people have the

right to protest as well this is a free country people have their opinions and president trump is the first to acknowledge that he is a very controversial figure internationally. >> and he's outside the u. s. ambassadors residence. he's going to be meeting with the international trade secretary and business leaders tonight and with the prime minister tomorrow with with the queen but not everyone is happy about his arrival. >> clearly not we saw 1.8 million petitioners saying they didn't want it when mr. may touted the idea early on in his presidency. you have a whole collection of people against mr. trump being in the united kingdom for all kinds of reasons against muslims and immigrants

and all of these groupings not only across london but the united kingdom there's already been early protests wherewe understand he may well be playing golf over the weekend before he goes on to meet mr. putin at the start of next week but ahead of that let me describe to you about the scene here this morning in what is a very shchic area of london this is actual ais ring of steel so to speak. hundreds of police officers have been inside there. we were in there early this morning and got putin out by 6:00 a.m. and all kinds of police from regional police to

protestors to special firearms police as well and raps one working with the security forces as well and we're not going to see him driving around the streets of london. he'll be flying in from brussels where he has been having that quite contentious meeting in nato and then flying in on marine one right into the ground and there as you have been saying his agenda includes going to the palace that was built after the great victories under the general john churchill and then of course one of his descendants was winston churchill. great historic links for where his first official visit will be this evening and tomorrow he'll be going to meet the prime minister and windsor castle to meet the queen and also at an

undisclosed location, i can't tell you where it is at the moment but we'll be watching a joint exercise but what is interesting is we have seen on the streets of london, i remember seeing one with at least 20 cars during the peace process in dublin in the mid 90s as well. there will be none of that mostly going to be avoiding a lot of the protests but some people are actually very positive about the president coming to the united kingdom including the chair of the republicans abroad group as well actually saying some of them are a little bit over the top. >> we'll have the right to protest. it's a beautiful right and i would never want to stop anyone from that. but some of these are quite embarrassing and cringe worthy specifically the balloon

and you have these massive protests against trump but never against the terrible dictators that quite often visit london. >> i have seen anything from 8 million pounds up to 30 million pounds and the cost of the security operation but it's multifaceted of course but the most important thing is the multifaceted operation it's number one for the british security forces and police and mi 5 and then you have the protests and monitoring operation as well. whoever they're protesting tend to be peaceful it's the 1% that one has to worry about and then you have that operation for which hundreds of police from all over the country, 400 officers are, are supporting the city.

and then of course you have the situation as well. not only peaceful protest but big situations and we have seen a few of those over the years so a big head ache. he talked a little bit about the importance of the operation from a u.k. point of view. >> watching this and kr scrutinizing every part of it and they understand they'll be under the spotlight as well. there's an on going threat we have here in the united kingdom. everybody is going to have to continue and throw into the mix and this is depletion of some of

the regional forces that are needing to assist in this visit. >> there's going to be a few demonstrations in favor of theth arriving and many against him being here as well and perhaps the one that some people think is the most contentious is the fact that tomorrow only between 9:30 a.m. and 11:30 a.m. so he gave a permit to the baby trump inflatable as well many people say it's very disrespectful to the democratically elected president to see this in parliament but he won't see this anyway because most of his transportation once he gets into the country is going to be by the helicopter he uses for moving around within a certain country but plenty to look forward to over the next 48 hours. >> absolutely. now much has been made of the special relationship between the u.k. and the u.s what is it and where did the

idea come from now the term was officially coined in 1946 the close bond between the u.s. and the u.k. also helped lay the ground work for the creation of nato but they were significantly tested by the crisis now things got back on track thanks to the strong personal relationships forged between two partnerships during the cold war the dependents was underscored which helped broker the joint b invasion of iraq in 2003 now david cameron called on barrack obama's help ahead of the referendum but the u. s. president warning they would be at the back of the trade talks if they left the eu. teresa may is working hard to

ensure that obama' prediction doesn't come true with the u.s. at least may became the first foreign leader to visit the white house but with mass antitrust protests planned it may make for a rough path ahead coming up on our show, the war is on. china will retaliate against u.s. tariffs we'll have the latest after this break. why did i want a crest 3d white smile? dinner date...meeting his parents dinner date. so i used crest. crest 3d white removes... ...95% of surface stains in just 3 days... ...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life.

including trade tensions between the u.s. and china and oil production in june and the highest level since the end of

2016 and speaking with me earlier the difference between opec and non-opec members. >> and of course there's considerable uncertainty about the situation venezuela and we had a renewed conflict which has taken significant ones off the market that is welcome if we're going to ensure stability of royal markets over the next few months. >> if necessary china will fight the trade war according to the chinese commerce ministry.

in comments made earlier today it says china's protectionist policy and will have to defend the interests. the industry also said u.s. and chinese negotiators have not been in touch about restarting talks. china's vice minister of commerce called on wto members to defend the rules based trading system we would like to get all members to defend the principles and values of the multinational trading system including national treatment and special and differential treatment for members and to stand up to trade, protectionism and the unilateralism. >> i'm going to bring in the chief investment officer but charlie good morning to you.

thinking about the world outlook here, fundamentally the world growth is in a good place. things picked up a couple of years ago. what does that mean for you in terms of how you wanted to play cash. >> where we are the global economy is pretty strong but markets are also pretty high two back to 2009 when the stock markets were at low levels the economic news was terrible at that time and remaineded terrible for quite sometime. so you have to remember stock markets and economies are not the same thing okay just looking at your allocation, you have 35% in risk

assets and the mandate would really touch that and i think that, you know, 30% that's really a recognition that we don't know where the end of the bull market is you can't do nothing but on the other hand there's considerable risks out there there's some things i don't like in the market, the behavior of credit the corporate bond market. the number of corporate bonds rising it's a nasty picture and the last time we had it was 2014 and the previous was 2007 when the credit market starts to go wrong. >> it's very difficult to time that and it's also very difficult to short the credit market in europe because of the net supply story with taking so many of these bonds out of the market how do you time that or if not

trying to pick the timing how do you hedge against the even actuality that it may happen >> it is difficult to time to the minute and you take the view that over the next year or so the market can return to an accident. and it's when everyone gets back to work in september and liquidity and then where things might be and could go wrong. i'm not forecasting an accident market but the rate of evidence is hedging in that direction and i do have a small short position and there are ways we can capture what's happening >> so you say potentially

something could go wrong in autumn do you think the catalyst of that could be on the trade war front? is that where it's going to come from both of those of course directing the firing line if things get a little more worse on the trading side? >> yes i'm not forecasting a downturn i just have a light position because you don't know bhawhat's going to happen. if you knew what they are going to be they're going to be easy to avoid but i think you have, in emerging markets you have a real problem a very clear cell signal there you can see the deterioration they're running to catch up on what's happening with with u.s. monitory policy. it's a difficult time. so the global liquidity is going back to equities and saying well fine but the price isn't what

i'd like to say. looking at history it's a very expensive stock market. >> what characteristics are you looking for? >> that's a good question. in 2015 we had quality stocks and that's when interest rates were very low and bond yields were very low. they have risen and a lot of quality stocks have come back and they offer much better value than they did two or three years ago so we're starting to pick up there. and they're not exciting but that is one place to go. the other thing you've got is the u.k. stock market continues to be very cheap compared to other stock markets. maybe because of brexit concerns and the political risk in the u. k. which has become comedy quite

honestly but that means opportunities. cheap stocks tend to be more defensive than the expensive stocks when things go wrong. so we have a very big u.k. focus on the portfolio at the moment >> president donald trump is meet oog world leaders in brussels he's set to lock horns over defense spending as well as the role of russia within europe hadley gamble spoke with the astonia prime minister and asked if she was surprised by president trump's tough rhetoric. >> i really hope that it's so important during this summit

i really think that nato's unity is the strongest if we are in defense. i think it's underlying very important aspects. defense spenditures. for us it's also very important. i think it is important. of course for us it's important as well the reinforcement readiness initiative but in the end of tomorrow's summit, i think the most important thing that they are giving together and they show that nato is strong and united. >> do you believe germany deserved that beating at the hands of the u.s. president? >> i know chancellor merkel very

well and i would like to answer that they are very strong allies in nato and very good partners also in european union. >> so you think the president was on the wrong track there. >> like i said, the common spend tours in defense it's very important to underline that. and to see today we have 8 countries that spend 2% or more and all the other european countries plus canada, all of these defense spenditures increase and i think in a very positive way. >> emphasizing solidarity within the nato members make sure that you tune in when

we will also be hearing from the new lay pointed british foreign secreta secretary jeremy hunt. let's take a look at us. futures this morning dow opening up about 100 points high hi higher looks as though the mood is still pretty positive for the time being but don't forget to join us tomorrow morning from 700 cet for coverage of president trump's visit to the u.k that's it for street signs worldwide exchange is coming up next jimmy's gotten used to his whole room smelling like sweaty odors.

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here's your 5 at 5 president trump back on the attack as nato leaders gather for a second day of talks. comcast upping it's bid for u. k. broadcaster sky papa johns founder leaving the company after using a racial slur on a conference call. broadcom with a $19 billion deal, all cash for software maker ca technologies. oil rebounding after posting it's biggest drop in more than a year it's thursday, july 12th