welcome to "street signs." i'm willem marx. these are your headlines european markets lack direction at the open as investors digest president trump's unprecedented swipe at the fed he tells cnbc he doesn't agree with the central bank's plans to hike rates >> i'm not thrilled. we go up, every time we go up they want to raise rates again i'm not happy about it, but at the same time i'm letting them

do what they feel is best. >> chinese stock markets reverse early losses to close higher italian assets underperform with the spread between italian and german yields widening amid talk of internal government tensions in rome. and skanska stock sinks as a writedown drives a bigger than expected decline in second quarter operating profits. >> we are not satisfied at all with the margin, construction margin we are underperforming overall we do have some good performance where we are at levels that we should be at we are underperforming in the u.s. operation good morning there's not a huge amount of direction across european

markets so far this morning. the stoxx 600 is very, very slightly trading below that flat line if we look at the individual markets, the major four indices, only the ftse 100 is in the green this morning the xetra dax is below the flat line in paris, the cac 40 is down in italy, the laggard, down a full percentage point at this point. let's look at the sectors driving some of those numbers, the auto sector, not a huge surprise given uncertainty out of the white house it's down 1% the other end of the scale, household goods and healthcare performing relatively well let's talk about the white house. the dollar weakened against major currencies after president trump criticized decisionmaking at the federal reserve in an interview with cnbc, trump broke with tradition and openly disparaged the u.s. central

bank's increase of interest rates. >> i put a very good man in the fed. and i don't necessarily agree with it because he's raising interest rates i must tell you, i don't i'm not thrilled because, you know, we go up and every time you go up they want to raise rates again and i don't really -- i am not happy about it, but at the same time i'm letting them do what they feel is best. but i don't like all of this work that's going into what they're doing and you look at what's going on with the eu and they're not doing what we're doing and we already have somewhat of a disadvantage, although i'm turning that into an advantage last year and for years we've been losing $150 billion with the eu nations, with the european union, and they're making money easy, their currency is falling. in china, their currency is

dropping like a rock and our currency is goin up and i have to tell you, it puts us at a disadvantage. now i'm just saying the same thing that i would have said as a private citizen. so somebod would say, maybe you shouldn't say that as a president, and i couldn't care less what they say because my views haven't changed. i don't like all of this work that we're putting into the economy and then i see rates going up i see china where -- look at what's happening with their currency it's dropping like a rock. >> dropping like a rock. i'm happy to say somebody to explain why it could be dropping like a rock is our next guest. the president says he's not happy or thrilled about what is going on should currency traders be happy or thrilled at his intervention here >> i think more broadly markets don't like politicalzation of financial markets. this is not inconsistent with what trump has said in the past. he's not explicitly mentioned maybe the fed in his comments,

but as you see the price action, the dollar came off a bit around 6:00 last night when the comments came out. markets digested the news, what the implications are generally what we find is that central banks push against the perceived threat that they are being politicized. we've seen it in emerging markets, with the ecb, with the bank of england. i would say these comments have been digested by the markets, but there's a stronger narrative in the markets at the moment, that's the u.s. economic growth. >> that's the dollar the other side of this equation, the yuan there are indications that the chinese are doing this on purpose, in terms of weakening their currency what's your take on that cross, that pair in the weeks ahead >> we've been bearish on the chinese renminbi i think we're seeing a classical case of policy divergence. the chinese are doing some form of quantitative easing, where

the rest of the world is doing quantitative tightening. there are concerns around the credit worthiness in china we think the pressure persists on the renminbi going forward. we concede some of those gains in dollar china may have run their course >> do you think the uncertainty will weaken the level of interest in the euro >> i think it's sporadic the focus we always had is euro swiss. that's the bellwether for regional political risks we heard another move this morning, winding of peripheral spreads. euro coming under pressure italy will be a dominant theme we've written extensively on that over the course of the last few months in that scenario, if the political situation becomes a bigger reaction function for the ecb, yes, it does have an impact on the euro. as of yet, the ecb stated its case it will start to hike after the summer of 2019

the key is do we see intensification of the italian political situation. >> as markets prepare for not just potential hikes from the ecb but the end to their buying of european debt, particularly italian debt, do you think the eurozone ends up looking vulnerable >> that is the key here that the markets are look at where peripheral spreads go. there's been talk of operation twist that the ecb may lengthen the maturity buying across the curve. we're already seeing some outperformance of the 30-year. in terms of how this sits with the italians, the budget negotiations will be very key here we still see the italian political situation as presenting a downside risk to the euro what happens after that in terms of whether we see a significant widening of periphery remains to be seen in terms of the ecb reaction function.

>> we will come back to you and talk about brexit in a moment. if you want to tune in for cnbc's interview with president trump that will be at 12:00 p.m. central european time today. you can watch a longer version of that interview with joe kernen the uk brexit secretary, dominic raab says he is confident of reaching a deal with the eu. nevertheless an increasing number of government agencies have warned businesses to make preparations for a no-deal scenario raab is preparing for talks with michel barnier today barnier will update foreign ministers on the progress of negotiations they will arrive for those meetings momentarily we'll bring you pictures of that live if we can in a brief public statement after his own meeting with barnier yesterday, raab said he wanted to focus more attention on the future relationship

between the uk and eu. >> it is also now vital that we make progress on the establishment of a framework for future partnership i come out today to discuss the detail proposal we have in our white paper, and i'm looking forward with renewed energy, vigor and vim, looking at the detail of all of thchltthis the clock is ticking, i'm looking forward to intensifying, heating up negotiations and making sure we're in the best position to get the best deal. >> mr. barnier seemed to say hold on, slow down, it was first necessary to hammer out details of britain's departure >> we must finalize the agreement and we are not yet there. we must also prepare for political declaration and our future relationship.

regarding the agreement, it's a matter of urgency so agree legally on a backstop for ireland and northern ireland >> on that subject of northern ireland, the office of theresa may says she will push back against europe's proposals for the border between ireland and northern ireland in a speech in belfast later today. according to a copy of the speech, may will label the eu's call for north and south of the border as unworkable the text of the speech also includes the view that no british leader could accept a proposal that creates a border between northern ireland and the rest of the uk, since it would violate the good friday agreement. new research from the imf warns that a no-deal brexit would most heavily impact ireland and could cost the eu as a whole about 1.5% of annual gdp. ireland has the closest economic ties to the uk, but the

netherlands, belgium and luxembourg would also face significant fallout. this scenario could mean the loss of more than 1 million jobs across europe. let's look at sterling we've been talking about it a lot recently it's flat, cable right now against the dollar for the year it is down 3.6% a lot going on in terms of weaker data this week and also the developments in this brexit scenario let's talk more to our guest from merrill lynch i have to ask you, ahead of this nb nbc -- bank of england meeting, what are you watching? >> we have to watch sterling price action and sterling volatility action. the clock is ticking the time is running out. checkers did not change anything, the fact we did not

make progress is focusing markets on one definitive deadline we have, the 29th of march, 2019 if you look at the back end of sterling implied volatility, that's where we see significant action as far as sterling is concerned, we made the argument that sterling is still data driven. if you look at the bulk of losses this week, they happened post cpi numbers 20 basis points is still priced in for the august rate hike. we think the odds are they will delay and move towards november, but we need confirmation from mpc members like we did in mid-april. n mid-april, carney came out and had the reversal in cable from 145 to below 140 now we don't have speakers until potentially today. we have an interview today and then another on monday carney may be speaking at the g20. this will be the opportunity to recalibrate rate hike expectations if they feel they

need to. if not we're going into the august meeting with a lot priced in the risk/reward is if they disappoint, sterling comes under pressure >> it looks like they'll make this decision last minute. >> i think they're looking for as much data and information as they possibly can next week. there's a few data releases. the bulk of the numbers they would have wanted came this week and last week. retail sales numbers are volatile on a monthly basis. if they choose to look at strong performance in q2, that may be enough to take them to a rite hike what's clear is they want to hike whether the data is soft or not, it's showing some recovery they want to hike. whether that's for brexit reasons or other reasons, there's a clear incentive for them to tighten policy >> we had these artificial timelines imposed on the process that certainly seemingly had a major impact on the pound when we had votes in the house of commons in london or meetings in

brussels it seems like you're saying there are not that many significant anchor points between now and march. how do you plan your strategy? >> it's difficult. we have a constructive view on the brexit end state we think there will be a customs union of sorts which will propel sterling higher towards the 145 level verse the dollar the question now is with that time frame starting to narrow, the market will price in more protection that means a higher level of sterling volatility moving forward. we have dates. there is a pressing need by the end of the year. theresa may told us self-imposed deadline is the 21st of december so there is a need to get some progress done. we'll have very little brexit news flow over the next couple of weeks summer recess is coming for parliament we'll get background information and background news. from september onwards the market will be fully engaged for the three months leading up to

december >> the one counter point on near-term information may be a response to the white paper in terms of what their proposals are. we might hear from european foreign ministers today about early indications of what the europeans are thinking about this, then a formal response, that's something currency traders may need to watch. >> absolutely. but we kind of know what eu is thinking barnier already said today the paper forms a basis but it's still unclear. we also heard that yesterday there's still a need that the british need to make further progress in the eu's direction, if the eu is not going to move for the eu it's clear, you either take canada or norway for the uk, it's the imperative of the northern ireland border unless we get resolution on that, as barnier said this morning, we need to get the northern ireland border, the divorce settlement before we can talk about trade >> thank you very much for joining us >> thank you

>> if you have views on brexit, get in touch on twitter, we're at @streetsignscnbc. coming up, bid withdrawn comcast concedes defeat to disney in its bid to buy the entertainment assets of 21st century fox. plaque psoriasis can be relentless. your plaques are always there at the worst times.

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welcome back to "street signs. i'm willem marx. shares in skanska are sinking after the company reported an 11% decline in second quarter operating profit this surprised analysts who expected the figure to grow by 5% the builder blamed the dip on writedowns at its u.s. construction division. the ceo said his firm was still upbeat about its strategy. >> our strategic action, we decided in january earlier this year, starting to work we're moving in the right direction. we still have issues to work through. we're not out of the woods yet

we had another writedown in the u.s.ment is performing a a high level commercial development had a good quarter so did residential development we can see some slower activity in the stock market and also somewhat in oslo >> french defense company thales reported a rise in first half profit a strong improvement in operating income and sales growth resulted in a 53% increase in net profit thales says its 4.8 euro takeover of ge mm mshgmgemmaltoo track. and shares after remy are trading higher after they beat first quarter sales growth estimates.

the company has maintained its full-year profit target. and telia acquired the broadcasting arm of bonnier in a deal worth 9.2 billion krona telia expects the deal to generate synergies of 600 million krona by 2022 and they expect the deal to be completed by the second half of next year. comcast has withdrawn its 5 $65 billion offer for 21st century fox's entertainment assets and thus conceded defeat to disney in the months long bidding war. comcast said it will instead focus on its recommended offer for sky. julia boorstin has more details. the battle for fox is over sky on the other hand is still up in the air. comcast saying it does not inten to pursue further the

acquisition of the 21st century fox assets instead it will focus on a recommended offer for sky. comcast currently is the highest bidder for sky with its $34 billion offer. while the door is open for disney to counter, right now comcast is on track to buy 61% of sky the question is whether disney elects to sell to comcast the 39% of sky that fox already owns, and whether bizny woudisnd try to buy from comcast the 30% stake in hulu it owns. for now disney is focused on fox. bob iger saying our enthusiasm for the acquisition and the value it will create continued to grow as we continue to note 21st century fox's stellar array of talent and assets we are pleased with today's news and our focus now is completing the regulatory process and moving towards integrating our business next up, a week from friday

disney and fox shareholders vote to approve that $73 billion deal julia boorstin, los angeles. shares in comcast and disney ended the day higher after the announcement fox closed lower this morning sky shares here in the uk are also very slightly below the flat line. to talk in more detail about that decision, let's bring in zack fuller from midi research what is driving the sky bidding war between comcast and disney >> in either case, this is one day going to make a fantastic scripted drama in and of itself. we had this saga go on for the last few years i think it was 18 months ago when it was first launched it has all the ideas, fear, agreed, empires flailing >> the question is is netflix going to make the show >> that will be the question but what we'll see with comcast

now deciding that ultimately they would rather focus on sky's assets is that they believe the european pay tv market is a mature business, high margin business they would rather gain the capital from that, because ultimately it was a fantastic business perhaps on the way out now they want to reinvest that capital and pursue their future offerings. that's not going to be cheap >> so you're talking about a relatively aging business model. does that strike you as a good decision to keep on bidding more and more money on this asset because you see it in the short term providing you cash for other ventures >> of course, when you have that subscriber base paying for those packages, that's a fantastic business to get the capital from that and then ultimately reinvest it where you believe you will have future growth.

>> what does it say about comcast's priorities that they were willing to give up their chase for fox's assets in the u.s. >> it shows that they clearly -- they clearly more favorable towards, i guess what they know. they want to go with the pay tv model and look at where that will take them for disney, i different. disney already has the assets where they can look far more international scope for their business for the dwox s21st century fox , which they will acquire. you will get star in india you're looking at one of the biggest emerging media markets they will get that asset they'll be able to compete with netflix and amazon prime in that market >> you consider that the jewel in the crown >> it's not been addressed as much people can be very domestic centric when talking about these markets.

previously in pay tv you could afford to focus on one country or one region. i think these acquisitions, they tell us now you must have a truly global focus >> one thing in terms of domestic interest in the u.s. was hulu comcast gives up on trying to get ahold of that stake that 21st century fox has in hulu which was going to give it a huge advantage when it came to streaming revenue. how do they go about trying to get that money now >> getting the money through streaming? >> yeah. revenues >> all about scale you must have scale. you mustcreate the content or have the content that will entice viewers over to your platform and with disney, getting involved in their own streaming service, it will be a huge amount of competition, particularly if you want to get netflix. >> will disney lose out on sky >> disney have the assets, they have the legacy and experience to continue. but if we are talking about the

long-term, disney, if they do lose out on creating a meaningful direct to consumer operation, we could see one of the major tech media companies a common acquisition target for big tech much in the way we've seen big telco and media emerge, we could see disney become an acquisition for big tech we see apple through their history with disney come in. >> zack fuller, thank you very much. coming up, the eu prepares a list of u.s. goods to target as the trade war continues. the latest on that coming up next olay regenerist wipes out the competition; hydrating better than $100, $200 even $400 creams. with our b3 complex, beautiful skin doesn't have to cost a fortune. olay.

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can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone. welcome back to "street signs. these are your headlines european markets lack direction at the open as investors digest president trump's unprecedented swipe at the federal reserve he tells cnbc he doesn't agree with the central bank's plans to hike rates >> i'm not thrilled. we go up, every time we go up

they want to raise rates again i'm not happy about it, but at the same time i'm letting them do what they feel is best. >> chinese stock markets reverse early losses to close higher italian assets underperform with the spread between italian and german yields widening amid talk of internal government tensions in rome. and skanska stock sinks as a writedown at the u.s. operation drives a bigger than expected decline in second quarter operating profits. >> we are not satisfied at all with the margin, construction margin we are underperforming overall we do have some good performance where we are at levels that we should be at we are underperforming in the u.s. operation

>> let's check in with some of the major currency crosses the euro is stronger against the dollar the dollar is slightly stronger against the japanese yen cable, we've been talking about that this morning. it's pretty flat at this stage of the day the dollar is also weaker against the swiss franc. across the european markets, there's been a bit of a mixed start to the day the ftse 100 is trading about a quarter percent up in germany, the dax is above that flat line the cac 40 is down 0.10% the ftse mib is still down 0.65%. on the subject of italy it's underperforming against its peers. bond yields are also rising following reports of tension between italy's economy minister

and the ruling coalition the head of the country's budget committee also made some euro skeptic comments according to an italian newspaper, claudio borgi said italy will come out of the you've euro sooner or later. the shanghai comp closed up 2% snapping a five-day losing streak the csi 300 was also higher. the yuan strengthening after earlier hitting a 13-month low and attracting the tension of donald trump who said the chinese currency was dropping like a rock. invest verse been dumping shares in hna affiliates they have shared more than $3 billion in market cap this week, according to "the financial times. the eu is preparing a list of u.s. goods to target if the trump administration imposes

targets on european cars the trade commissioner said she hoped talks in washington next week would help diffuse trade tensions but the eu members were nevertheless ready to impose retaliatory measures absurd and lacking legitimacy, those were the words of david o'sullivan into the opening hearing on proposed tariffs yesterday. the commerce department opened up its section 232 investigation for comment. he told senators the proposed national security grounds were not justified. phil lebeau has more >> reporter: with auto sales running close to a record high, and assembly plants building new vehicles at a healthy clip, the industry is worried president trump may follow through on threats to slap a 20% or 25% tariff on auto imports

at a hearing in washington, industry leaders warned the administration not to do it. their concern, tariffs could drive up the cost of new vehicles by almost $6,900 according to a new study that could cause sales to drop by as much as 2 million vehicles and lead to 750,000 jobs being cut. right now just 56% of the models sold in the u.s. are built in the u.s., but the trump administration says that number should be higher and instituting tariffs could be one way to make that happen. >> so as the president has repeatedly said, the trade war idea is nothing new, what's new is our troops are coming to the ramparts >> the big concern among automaker, dealers and suppliers, higher tariffs will kill the best four-year run of auto sales the u.s. has ever seen. and this year, the u.s. is once again on pace to have auto sales

top 17 million vehicles, a lofty level that could be in jeopardy, depending on what happens with tariffs on imported vehicles the company that makes batteries for tesla's electric cars suspended a supplier over concerns that it was using cobalt from cuba panasonic said it was unable to determine how much of the cobalt used in the tesla batteries had come from cuba boeing claimed victory at the farnborough air show this year they said they won 528 orders and commitments. airbus reported 43new deals. airbus managed to retain an order for 34 jets from airasia despite the company threatening to walk with talks coming down to the wire. airbus launched its beluga xl cargo plane look at that

like a cute little dolphin the aircraft which features a whale's rounded nose and pointed beak will carry plane parts. and oil exports from saudi arabia are expected to drop by 100,000 barrels in august. in a statement the it was said the move was aimed at preventing oversupply to the market which could repel potential investment in the overall industry. concerns of too many supplies and trade war risks have actually pushed crude prices marginally higher. brent is at 73.26 a barrel wti at 69.82 demand for gold will rise in the second half of 2018 as inflation pressures increase that's according to the world gold council the price of spot gold has fallen for the last six consecutive sessions, nearing a one-year low the decline in gold comes as the

u.s. dollar rallies close to a 12-month high. to talk about this in more detail, we are joined by the head of metals at socgen what will have the greatest impact on gold in the coming months is it a supply and demand story or external factors? >> it's largely when it comes to gold external factors. gold is unlike copper or oil those are true physical commodities determined by supply and demand for gold, it's the macro factors. it's investment flows. that's what's been surprising. if you said a month ago that the trade wars would have escalated to the point where they have now, i think the consensus would have argued there would be higher gold not lower gold so extremely surprising reaction from the gold price. >> just in terms of supply and demand, from what i understand, there's been more gold put on the market than taken off it

over the last three years. supplies exceeded demand that's an indication that this doesn't work like any other commodity. in terms of interest rate investments, how does that factor in? >> gold having a long history of being a monetary asset, gold standard was in play a century ago or so, then gold has a very closecorrelation to interest rates and negative correlation there's no opportunity cost in holding gold doesn't pay a dividend there's no coupon. there's no interest rate as interest rates rise then gold is pretty much overshadowed by that relationship. it's a negative relationship as rates go up, gold should find

increasing headwinds >> you mentioned investment flows into the metal how do you go about forecasting those? i presume it's difficult >> it's not the easiest of things to forecast you can look at positioning from the cfct, they suggest neutral positioning. so investors have liquidated positions in gold over the last 12 months. you can look at etfs so these are the funds that are backed by physical gold. we've seen outflows year to date >> we have heard over the last 24 hours a bit about the u.s./chinese currency pairing. with china a traditionally large purchaser of gold, is that something you have to watch? >> definitely. with concerns about the slowing chinese economy, will they actually have the ablility, the

appetite to buy gold what we're seeing currently, reminiscent of 2015/2016, if we remember at that time the chinese yuan was deprecatie ini against the dollar and gold was falling. we have a similar pattern today. we would look for the yuan to bottom out and start rising. i see overnight that the chinese markets have rebounded the yuan has risen, but maybe too early to argue that that's hit bottom >> one final question for you in terms of demand for gold, technology a lot of things that might surprise viewers employ very, very small amounts of gold everything from the smartphone, electric cars, solar installations. do you see that long-term as a trend that will drive prices up?

unlikely as you say, it's negligible the amount of gold contained in these applications not really it's got to still be investment flows. it's a double edged sword. yes, it can create demand, but what happens when you scrap these applications so you return your mobile phone. you return your -- >> is it worth -- >> i think it is not just for the gold, but for other metals some of the rare earth elements that are in short supply yes, we claim that gold as part of that scrappage. >> thank you for joining us. >> thank you president trump has invited vladimir putin to the white house this autumn. he's brushed off the backlash from the summit earlier this week trump tweeted the meeting had been a great success and he looked forward to the next one

so the two countries can work together on issues like cyberattacks, middle east peace and north korea. news of putin's proposed trip was broken to the u.s. director of national intelligence, dan coates, while on stage with my colleague andrea mitchell at a security forum in aspen, colorado >> we have some breaking news. the white house announced on twitter that vladimir putin is coming to the white house in the fall >> say that again? >> you -- vladimir putin coming to the -- >> did i hear you? >> yeah. yeah >> okay. >> yeah. >> that's going to be special. >> not quite sure what to make of that response at the same event, the u.s. intelligence chief admitted he didn't know what happened in the one-on-one meeting between president trump and vladimir putin in helsinki. this has sparked concern amongst u.s. lawmakers

speaking to cnbc, president trump defended his record on russia and vowed that his dealings with vladimir putin don't work out, i'll be the worst enemy he's ever had. >> i have been far tougher on russia than any president in many, many years maybe ever even the big fight i have with germany over the fact that they're taking natural gas, they're taking energy from russia, paying them billions of dollars. i said wait a minute, we'r supposed to be protecting you from russia and you're paying them billions of dollars what's that all about? now, do you think that's a positive for russia? i'm talking them out of things where they're giving billions of dollars. it's ridiculous, by the way, that's happening and on top of that germany pays a fraction of what they should be paying for defense. so they're paying russia and we're supposed to defend them from russia?

so just look at that point but look at the sanctions i've put on look at the diplomats i threw out. look at all of the things i've done nobody else did what i've done obama didn't do it obama was a patsy for russia he was a total patsy look at the statement he made when he thought the mics were turned off, okay the stupid statement he made nobody made a big deal about that getting along with president putin, getting along with russia is a positive, not a negative. with that being said, if that doesn't work out i'll be the worst enemy he's ever had. >> worth pointing out when president trump said he imposed sanctions and obama did not, that's not true. just need to look at the historical record. if you have questions about this, you can e-mail us, or you can tweet me coming up, we are live from the open where it's entering its second day of rainy looking play

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. welcome back to "street signs. i'm willem marx. microsoft has beat analyst estimates for the fourth quarter thanks to growth in its cloud services overall revenue rose 17.5%, just over 3$30 billion, fueled by an 89% growth at the azure cloud product. josh lipton filed this report. >> reporter: microsoft reported eps of 1.13 and that was better than expected. analysts were expecting 1.08al digging into the segment, revenue in productivity and business processes, 9$9.7 billion, an increase of 13%. office 365 commercial revenue growth 38% revenue in personal commuting,

10.8 billion, an increase of 17%. windows oem revenue increasing 7% the software giant reporting commercial cloud revenue of 6.9 billion, up 53% with gross margins ticking up to 58%. kirk matern says when you see that strong growth it reiterates the positive thesis around this company's cloud story. he also notes a lot of good news was priced in the stock was up 20% year-to-date heading into this earnings report yao ming gained international fame when he was drafted by the houston rockets in 2002. he is one of the tallest people to play in the nba tanya breyer sat down with yao

ming to talk about his career and his retirement as he continues to help children in china and the united states. >> you're in the tenth year of the yao ming foundation. tell me about how it started back in 2008 >> certainly the earthquake in may of 2008 hit china, and everybody got mobilized in country. then we, my team and i, thought why not now. it's urgent. let's rebuild a school, which was destroyed in the earthquake. >> what sort of values do you think sport is giving to these children >> some things we cannot teach, they have to experience it on the court. it's like when you have a teammate fall down on the ground, you just tell them to stand up or will you give them a hand and pull them up? it's a friendship. it's a team work

>> you can watch the full interview on cnbc meets defining values, the new program premieres tonight at 11:00 p.m it's day two of the golf's open at carnoustie, scotland where conditions are different compared to yesterday's sunshine the early starters are already out on the course right now as is adam reed what do we expect to see today a change in the leaderboard? >> a bit of a change in the leaderboard and a bit of a change in the weather hopefully. could not be more different to how things were yesterday. bright, sunshine, sun coming down, but different today. today umbrellas are up all over the course because it's wet. really wet at the moment some of the early starters are out. and that will include tiger woods in about an hour rory mcilroy is on the course. justin thomas is on the course and to be honest, the rain is

going to be possibly quite fruitful for these guys. the softer ground might make it easier to get close to the pin and make some birdies. they were tipping some low scores going into the tournament, now we might start to see it today. fans are streaming in. they expect, the hope is, they expect a record crowd for carnoustie that's about 150,000 spectators over the course of the weekend on that point they want to encourage more people to come through the gates, to get into golf in some way or form, playing full rounds like this, driving ranges, or pitch-and-putt adventure golf. i spoke to the managing director of sports marketing who laid out exactly how many people are playing golf and why they are looking to get more people into golf >> 11 million people here played some form of golf in the last 12

months that could be from driving ranges, par 3 courses, adventure golf, to golf computer games 2.6 million adults played on a full length golf course in the last 12months. if you break that down into core golfers, there's just under.6 million. they're important, even though they're only 40% of golfers, they account for 80% of the spend. that impacts manufacturers, the venues, club membership. those are the key people those playing the most golf are those over age 55. those people playing 52 times a year or more, they're playing about 80, 90 rounds a year there's still a number of avid golfers playing throughout the year the key one the is the core golfers. they are the ones who make the most economic impact on the

sport. >> yes very interesting there from john bushel people associate golf as being an older person's sport, an elitist sport, but at the same time they want to encourage more people to get into the sport we were at a camp site where under 25s get in for free. they get a percentage of people getting in there for free because they want to get those people through the door to encourage younger people to get into the sport, more diverse, more ladies, there's a women's charter coming into golf the idea is that the rna want to sort of dispel this idea as an old person's game. they want to bring younger people into it weather conditions, you have to be hearty to get out there in conditions like this the numbers are there. golf is accessible, that's the idea people are putting forward. if they were to come through the doors here, they would say it's kevin kisner, the surprising leader at the top of the

leaderboard. zach johnson is among the early starters and is 3 under par so far. tiger woods out injust under a hour he's level par for his first round. we could see some inventive attacking iron play from tiger woods later on today >> i hope you stay dry i was more jealous of you yesterday than i am today. let's check in with the u.s. futures ahead of the market open you can see that only the nasdaq is looking to be called higher at this stage. looking to open up by 30 points. the dow jones could open slightly softer. stay tuned for the full interview with president trump that's coming up at 12:00 p.m. central european time. that's today's show. orwi ehae"s coming up of the pacific ocean. we're the most isolated population on the planet. ♪

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i put a very good man in the fed, i don't necessarily agree with it because he's raising interest rates. that's president trump blasting the fed during an exclusive sitdown with cnbc. we'll bring you more of the president's comments straight ahead. search and rescue operations are under way right now on a missouri lake after a passenger boat capsized. we have that story. on wall street, shares of microsoft are shooting higher after the tech giant posted bett better-than-expected results and

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