>> president trump calls on the eu to drop all tariffs ahead of jean-claude juncker's trip to washington amid reports that the block is preparing levees on $2 billion of u.s. goods. >> the european union is doing to us is incredible. how bad? they made 1$151 billion last year, our trade deficit with the european union hello. welcome to "street signs." we are getting some ifo data out

of germany attention will be on whether or not trade tensions hit sentiment as we await that big meeting between president trump and jean-claude juncker. overall the business climate index did fall in july looking at that index it hit 101.7 in july, slightly better than the forecast for 101.5. when it comes to current conditions, that index is at 105.3 in july, compared to consensus for 104.8. overall, in the expectations going forward, looking at98.2, compared to the forecast for 98.1 just a tick higher there you are looking at the euro essentially flat against the greenba greenback. we had a mixed pmi report yesterday, some drag on services overall manufacturing holding up there. once again, looking at the ifo business climate index, it did fall, but to 101.7, versus

101.5. for more i'm pleased to say we're joined by greg peters for pgim fixed income. looks like the pmi data slightly ahead of expectations. we do have these trade tensions lurking in the background. this constant tug of war between the fundamentals looking so strong now, but some uncertainty weighing out there as well how do you think this will play into the markets >> i'm not sure. that's kind of the ultimate read but i think the business climate itself is okay it was not as robust as a year ago. what the markets are really worried about is what's happening on the central bank front. we know the fed is tightening policy we got a swift market reaction with the boj hinting at chaenging their lochaeng

ing changing their low-rate policy i think the markets are reacting more to that it's rhetoric versus reality so we've been ignoring it from the market standpoint for the most part. at some point it will weigh on surveys and business climate and investment >> with the next ecb meeting coming up tomorrow, is there anything in the recent data to make the ecb change course >> i don't think so. the first quarter was weak that was driven by weather, which is always a great excuse, of course. but i think it's on par for where the ecb wants to be. i think the markets are kind of realizing that >> this week, we have been tracking moves in yields higher across the board you talk about speculation around the bank of japan jjb was going higher a bit on that do you think this trend

continues? >> i think it was an overreaction around the change in yield curve control out of japan. at the same time you had trump tweeting about the fed he's worried about the economy he's taking a proactive role to complain about it. >> complaining about it won't necessarily change what's going on at the fed. >> you would hope not. central banks by in large are independent institutions i think the markets know that. >> greg, we'll come back to you in a minute. first a look at second quarter net profit at deutsche bank, which did fall 14% but beat expectations at 401 million euros. revenue roverrecovered and came flat dws, which was spun off from the

german lender cut its 2018 inflow target. it says it remains committed to its 3% to 5% net flow target in the medium term. let's get out to annette in frankfurt. kicking off with deutsche bank here a lot of the details got released in the pre-release earlier, that's when we saw the stock pop. what do you think investors will be asking today? we know the new ceo has made big efforts to keep cost cuts going forward. are many people still asking questions about how to expand business in certain areas? >> yeah, that's clearly the case the big question mark when it comes to deutsche bank is how they want to boost revenues. clearly looking at the cost, income ratios, which stands at a high percentage ratio of 87%, it is far too high compared to its peers. so of course the new management

is getting tough on cost reduction. but it only brings to a certain level. you also need to boost revenues. investors are focusing on the strong weakness in investment banking. the rates business was the big powerhouse of deutsche bank some years ago. and now they're really losing out to their competitors the wall street big banks did post big gains in that special trading unit deutsche bank is not they have revenues which are falling by 17% also other areas of investment banking there is a clear weakness despite having said that, deutsche bank today is saying they want to be one of the big investment banks out there so there's a lot of room for

improvement in that unit in order to sort of close the cap towards their competitors. that's one big area. the other big area is their private and client business. because here also they need to improve their earnings otherwise they need to cut costs even further so it's like a spiral they're caught in. and the answer to, like, the perfect storm deutsche bank was facing is first to cut costs credibly, and that he's doing very well. he's delivering on what he's promising. now the revenue line needs to get better, and the net revenue line for the second quarter, which is better than expected, needs to improve as well then the bank should be on good track. investors do still have a lot of concern and that is, of course,

reflected in the low share price. even the shares now having popped last week, they're so much below where they were some years ago that many people say, listen, why should we trust a revival of those shares? for now back to you, nancy >> looking for more proof of the turnaround thank you very much. elsewhere we want to look at santander results. overall integration costs and currency headwinds did weigh on santander in the second quarter. they posted a 3% fall in net profit to 1.7 billion euros. the cost of integrating bank popular is expected to way on earnings through 2019. you are looking at a bit of a mixed picture here the stoxx 600 just barely

holding in positive territory. looking at the breakdown one by one for the individual bourses, a lot of earnings action in focus here not just in germany but across europe the ftse 100 is off 0.2%, overall the german market is slightly in negative territory the french cac 40 and the minute have been pushing higher let's check on yields. we were talking about some moves here we are looking at u.s. ten-year yields now off slightly. overnight the ten-year did creep higher 2.9430 ever so close to that 3% level let's get back to greg peters, senior portfolio manager of pgim fixed income we had a discussion about the

bank of japan in particular. when you said, look, there are still some questions here because talking about inflation, bank of japan still has a struggle seems they can't be in a hurry to go anywhere >> you look at the inflation dynamics, they're still on the floor. the thought that the boj is exiting the policy is somewhat crazy in my mind but it does highlight the flows outside of japan so the market reaction was around a small change in japanese yields, and that money gets recycled back into japan. the story has been money out of japan into europe and into the u.s. so any change around that. >> this is interesting it does illustrate how sensitive the market is. i want to get your thoughts on how this effects what we're seeing with the u.s. yield curve. many say look out for an inverted yield curve, even in

that narrowing yield curve others will say this time is different because of what we see going on with the ecb or the bank of japan. you're looking at a question of alternatives how do you play this into the fact that sure the u.s. yield curve has been narrowing but should we be concerned as we have in the past >> it's important as an indicator. i'm dismissive of folks who say it's different this time there's slight different dynamics there is a thirst for yield. at the end of the day, investors who are in the intermediate and long end of the curve are investing around inflation dynamics and growth dynamics they're telling you inflation and growth is hard to get moving higher here. the more the front end moves, the more the u.s. is proactively tightening, then the curve has to flatten by virtue of taking risk off the table it's the anti-qe trade

qe was about zero rates investing out the curve. as short rates move higher, investors like myself and others will naturally start to de-risk by owning shorter maturities as it's more attractive >> to what extent do you think the fed is watching the curve and saying okay if it gets to a certain point that would force us to pause? >> i don't think it's that explicit but there has to be some input the ultimate question is we don't really know the institution. it's a brand-new institution powell is new at the job there's not a background in terms of his writings or teachings. so we don't know i think that uncertainty will persist. at the same time i find it hard to believe if the curve inverts dramatically that the fed will be just dismissive of it completely >> greg, i also want your thoughts on the longer end

we'll pick that discussion up in a minute greg peters from pgim fixed income stayed with us. watts going on at lvmh, strong revenue there. who said anything about trade concerns demand looking very strong we'll discuss that with charlotte coming up. the smoother the skin, the more comfortable you are in it. and now there's a new way to smooth. introducing new venus platinum. a premium metal handle boosts control... to reveal up to 100% smooth skin. venus man: are unpredictable crohn's symptoms following you everywhere? it's time to take back control with stelara®.

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welcome back let's look at some corporates on the move earnings per share of 0.720 euros in the quarter for d as s dassault systems iberdrola climbed to a little over 2 billion euros and antofagasta had a 6% increase in copper production for the second quarter but analysts sounded concern over the miners ability to achieve more than the bottom end of

guidance tough trade in italy and spain have taken the shine off of vodafone's first quarter results with a slowdown in organic service revenue growth we'll dig deeper into vodafone's numbers in 15 minutes time lvmh also had earnings overnight. the luxury giant did report first half profit growth of 28%. that was on the back of strength in watches, jewelry and its flagship line. lvmh had strong china demand top line growth was steady picking up in asia, charlotte has a report on this one. so much for those fears of china demand in light of trade tensions it's holding up strong >> lvmh's analysts were looking at the numbers to see is the

chinese consumer sentiment being affected by the tit-for-tat rhetoric on the trade wall the numbers are holding up there's great appetite for these louis vuitton bags and luxury items, but there was a note of caution in that note there was a note from the boss of lvmh saying despite a buoyant global demand, monetary and geopolitical uncertainties remain they did strike a note saying -- the cfo said that as well. you cannot extrapolate the results of the first half into the second >> many are wondering what it means for china domestic demand and theeconomic outlook there as well. i am curious what's happening when it comes to the spending we're seeing overseas in europe, when it comes to the chinese tourists versus what's happening domestically >> again, hermes signaled last week that there's a slightly lower sales in europe. and they said that's because the

chinese buyer is buying more in asia again than in europe because of the strengthening euro >> it's interesting when we see what's happened to the yuan as well that wouldn't be reflected in the results, i wonder if the companies will have to start looking at price changes as well charlotte, thank you very much u.s. president donald trump has described the eu as a big abuser of trade as he prepares to welcome jean-claude juncker into washington. president trump took to social media to suggest that both the eu and the u.s. drop all tariffs, barriers and subsidies. but he admitted this prospec was unlikely speaking in kansas city, he hit out at critics of his trade policy and outlined his key concerns regarding trade with the eu >> what the european union is doing to us is incredible. how bad. they made 1$151 billion last

year, our trade deficit with the european union they sound nice, but they're rough. they're all coming in to see me tomorrow they're all coming to the white house. i said you have to change. they didn't want to change i said good, we'll tariff your cars they send millions of cars, mercedes, all of them. bmw. so many cars i said we'll have to tariff your cars they said when can we show up? when can we be there tomorrow okay? >> president trump is looking to ease trade pressure on farmers by introducing a $12 billion ai package designed to support farmers amid the trade negotiations the white house is hoping to use a program that dates back to the great depression era the aid, which is seen as a temporary solution will include direct payments to some producers as well as distribution assistance. the move has already attracted criticism from lawmakers and farmers with kentucky senator rand paul saying answer is not welfare for farmers.

the answer is to remove the tariffs. president trump has also written the mexican president-elect saying that quick trade negotiations between both states would benefit both countries. the u.s. president did warn the talks must proceed quickly or else he will go a different route. reading out the letter, mexico's incoming foreign minister said the letter focused on trade, immigration, development and the security for more let's get back to greg peters for pgim fixed income greg, president trump not mincing words when he talks about his discontent with the eu and its trade policies this idea he would like to see tariffs go down to zero, how likely is that >> there's a zero chance of that right before he was tweeting how tariffs are great. so you can understand the confusion around trying to negotiate. either way the focus from a market standpoint is on what happens to the auto industry

>> right >> so our attention is focused on what happens with the global auto trade that to us is deemed a bridge too far. then we will have real negative repercussions. >> you're not alone here most people we speak to, whether it's guests from the auto industry or other strategists, they say this is the big one if you consider the supply chain effects, if you consider the importance of the industry to europe, not the least of which germany, their dependence on the auto industry, what are we talking about in terms of economic impact and how that filters in to the markets? >> i don't think we know the answer to your point the supply chain is so complicated and trying to sift through what the true economic impact is, either way what i think it does is just dampens investment, dampens activity it's a net-negative. that we do know.

we just don't know what the calibration of that net-negative activity is. >> to be fair, there is an imbalance here when it comes to the autos. the u.s. imposes a 2% tariff on eu auto imports, the eu imposes a 10% tariff should jean-claude juncker say, sure, we'll give you what you want on this one would that receive investors >> the irony is that trump is focused on the right issues. the way he prosecutes those issues is what people take exception to so i do think there is an imbalance in trade and i do think it would be helpful for all parties involved to help kind of rectify that dislocation. but i just think the challenge is the rhetoric and walking back and trying to figure it all out, which is why the markets for the most part have largely ignored it >> that's what i was going to say. it's difficult to ascertain to what extent the worst case scenario is priced in.

if it's the fixed income markets you look at or on the equities side, do you think investors have been too complacent >> maybe but it's hard to figure it all out. what we've learned so far in the past year and a half with president trump as president, you've been rewarded by ignoring most of it i think that still holds the question is at what point will all this affect economic activity so far it hasn't you have not seen it from the surveys, consumer spending, business confidence. until that starts to happen, then i think, you know, you have to watch it clearly, but it shouldn't be the focus central banks should be the focus, not trade >> at what point does it affect inflation? that's the other question to look out for we'll look to mario draghi tomorrow for indications on this front. do you think they're keeping a close eye on the inflationary

impacts? >> i think they are. truth is, you know, we need a little inflation that's not such a bad thing. that's interesting but yeah it's something to watch. it has not fed through none of this rhetoric has fed through into any of the numbers in a meaningful way as of yet. until that changes, i think the markets will rightly focus on what the central banks are doing and what the underlying economic and earnings data are. >> as you keep an eye on those elements, what do you like >> we still like yields broadly. as ten-year treasuries get to above 3%, we like it we're not in the camp where we think rates go screaming higher. what is the limit? we think 310 in terms of fixed income we're broadly reducing risk in the

spread market. the spread markets have done well we have begun reducing investment grade corporates, both in europe and the u.s high yields globally have done well we're taking some chips off the table there. where we continue to have risk on and we have not reduced is in emerging markets. >> what's the rational behind reducing risk? is this area looking worrisome >> if you look at that fundamentally -- so the fundamentals relative to where we have seen fundamentals in the cycle previously are as worse as we have witnessed so that coupled with just so much supply, so much debt, and europe obviously the ecb has been central in keeping those spreads so tight and yields so low so we feel like risk reward is quite poor there there's better opportunities in other areas. >> greg, thank you very much for joining us today it's been a pleasure having you on the show.

greg peters, senior portfolio manager for pgim fixed income. so what concerns are coming up so much nor dmore to discuss. on the earnings for vodafone, tough trading in spap and itainy are taking its tool. that's coming up with tough food, your dentures may slip and fall.

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welcome back to "street signs. these are your headlines deutsche bank beats second quarter profit extpectations as the new ceo says the lender is heading in the right direction but dws sinks after it slashes its 2018 target for attracting new money citing trade tensions. lvmh shares are flirting with record highs after the french luxury group beats first half estimates vodafone's revenue slows in the first quarter as tough trading conditions in italy weigh, but they back their 2019

guidance >> president trump calls on the eu to drop all tariffs ahead of jean-claude juncker's trip to washington amid reports that the block is preparing levees on $20 billion of u.s. goods. >> what the european union is doing to us is incredible. how bad? they made $151 billion last year, our trade deficit with the european union hello. welcome back to "street signs. it was a good day on wall street overnight thanks in large part to strong earnings from alphabet giving markets a boost let's look at how u.s. markets are due to cope today with a look at futures looking at easing back. the s&p 500 implied open of 2.7. the dow jones implied open slightly lower, overall not a lot of action.

bringing the view back to europe where we are, mixed picture across the continent ftse 100 is trading lower by 0.54%. the xetra dax is lower by 0.2% elsewhere the french cac 40 pushing higher, and the ftse mib just barely clinging into positive territory let's show you final services leading the way higher just shy of 0.6% increase there. real estate, retail, insurance all gaining. on the down side basic resources trailing today off almost 1% keep an eye on the auto sector a lot of attention here after that big bump in psa a lot of attention on fiat chrysler getting ready to report after the shock announcement of former ceo, sergio marchionne departing. any updates around his health will be in focus

our thoughts continue to be with him. when it comes to the ifo report, not too bad. a touch ahead of expectations. you can see the euro is creeping higher against the greenback there. one thing worth noting, when it comes to the car sector, export expectations for the car sector have fallen significantly. i imagine this has something to do with both the u.s. trade tensions and what's going on with brexit as well. looking at the greenback, it's inching higher against the japanese currency. when it comes to sterling, holding at 1.3155. the focus coming back to telecoms telecom italia reported first half earnings in line with expectations the telecom says it will press ahead with its stake in persedera. they added they are considering broader opportunities for the group's subsidiaries

i'm pleased to say we will speak to the chief executive of telecom italia later today tune in from 7:00 cet tomorrow for that interview right here in the uk, looking at vodafone, it was some tough trading in italy and spain that took the shine off of vodafone's first quarter results. shares off 0.75% as the telecom giant did report a slowdown in first quarter organic service growth vodafone warned that growth would slow at the start of the new financial year, but reiterated its full-year cash and earnings target. for more we're joined by an independent tech media and teleco analyst let's kick off with vodafone out with the old, new with the new. new ceo getting ready to take

charge based on these results there's considerable work to be done when it comes to defending market share or gaining in the yus crucial european market. >> yes the landscape is extremely challenging. what we're seeing is a radical shift in the way consumers are accessing these services the importance of having scale and being vertically integrated. so clear growth in convergence driven by broadband, and there's no coincidence we're seeing focus around the video services. and that clearly points to the fact that people want to buy more from their own provider, hence why the highlight from the results is the element of convergence. >> it seems the competitive environment is getting more tough for the likes of spain and italy. how does vodafone get ahead here

>> again, we have the new arrival in italy they have had phenomenal growth in a short period of time. for both those markets, the key points here is to point to fixed line and particularly the fiber rollout. that supported with a strong strategy around content, particularly around tv it's surprising we've yet to see vodafone really active in this particular area. yes, they've done some deals with content providers, but they need to make a huge leap of faith and buy a big content player to reinforce their own strategy around connectivity >> when it comes to the new vodafone ceo, it seems this deal with liberty will be among the highlights what is your asse assessment of how this ends? >> the acquisition of a number of those european assets that

liberty global owns, that brings vodafone as being a potential powerful rival to deutsche telecom in bundle services the challenge is getting regulatory approval, particularly in germany. which ever way you look at it, there's not much geographic overlap. however you are reducing the number of national players down from 3 to 2. so from that perspective i would expect to see some form of the deal being restricted or blocked. there will be concessions. that's one of the biggest challenges that nick reid faces as the incoming ceo. >> just before we let you go, i want to ask for your thoughts on sky. getting ready for their earnings next i'm curious about your assessment of what's going on in the deal frenzy. we know our own parent company, comcast, is really focusing its attention now on sky do they have the right approach? >> yes comcast right now is in pole

position the speed of its counter bid underlines its desire to buy sky. i expect to see another round of bids that will probably be it this will have a huge impact on sky in the future. ultimately news corp. owned by disney, you know, clearly focused on content sky is a great company comcast is focused on connectivity as well it could be an opportune moment for comcast to be part of the huge fiber broadband rollout we've seen not only in the uk but all across europe. >> thank you very much for joining us today with your insights shifting focus to the financial space, swiss financials in particular have suffered in recent months alongside their european peers all this as growth concerns and rate worries have weighed on the sector but private bank vontobel is

outperforming with the stock up 18%, partly boosted by its takeover of a smaller rival in may. joumanna is in zurich for us you've been speaking to the bank itself what is the overview on the results? >> absolutely. so vontobel will release results in a few days time the bank performance has been very, very good so far it's worth pointing out that vontobel is much smaller in size to its counterparts in terms of assets managed not as big as the likes of ubs but they have been doing very well this year that's because of their low risk and also organic and non-organic growth strategies. on that front particularly they were sitting on a lot of capital

and announced a couple months ago they're another company from laroche, another small private bank, helping them increase scale and presence within the swiss private banking division over here. so let's listen to what the ceo had to say i sat down with him an hour ago. i asked why this acquisition made sense for them. >> we had always the clear priority first of organic growth we're strong believers that only companies that can deliver organic growth are also credible acquirers, because at the end of the day the signs of the company is to deliver growth by convincing clients, but yet we have clear criteria to what we were looking for that has been spelled out for years to the market. and laroche fit it 100% that set of criteria. >> do you feel with the traditional banks, credit swiss, ubs, getting back into wealth

management again and that becomes another priority for them in the future, that there will be more competition in the space and on the back of that further pressure to consolidate? >> first, we've never been afraid of competition. competition in the end is good we're happy to compete against whoever wants to join the ranks of wealth and asset managers we expect consolidation to go on however we do not see private wealth management as an industry that will consolidate down to 5 or 10 global players because the economies of scale at the end and in the front are not there so we will always see a mixed structure of the market including boutiques. given where the marketplace is today in terms of switzerland you will see more change, either outright consolidation or simply significant shifts in market share which we like to call the silent consolidation so simply clients and

relationship managers moving to future proof platforms such as our ours >> that was the ceo talking through some of the change, is that are likely to happen in traditionally a quite boring swiss banking sector for the first time we're seeing deals take place, consolidation, perhaps less m&a and more consolidation. this is part of the broader banking themes that we discuss regularly on the show. one is the advent of fintech and the pressure it's putting on traditional banks. the other is regulatory pressure of course the pressure on leverage ratios and the requirements needed to sustain an investment banking business, which is why we see credit suisse and ubs shift away from investment banking more towards wealth management units. the question is how you can stand out and stand out from the pack and continue to attract

money and generate net new money in those divisions one aspect that vontobel is focused on, investing a lot in technology going forward their view is to stand out from the pack you need a strong technological platform. that's the words from vontobel, their results in a couple days time back to you. >> we look forward to that thank you very much for that let's look at the rand it has been strengthening to a one-week high against the dollar after china pledged to invest 14$14.7 billion in south africa. the deal was announced by the south african president alongside his chinese counterpart. both leaders did meet ahead of the brick summit in johannesburg where the five major emerging economies are expected to form a united front in the face of

increased protectionism. the lira has been weakening once again, as much as 5% against the dollar at one point. you can see here the dollar slightly weak eer against the lr as we speak but this after the central bank expected to keep interest rates on hold with inflation at the highest level in 14 years. investors were left stunned by the decision which was said to be down to weakening domestic demand it was the first policy meeting after president erdogan was re-elected with new executive powers the central bank's independence has been the subject of increased scrutiny after erdogan called for lower borrowing costs. the bovespa is on course for the best month since january markets rallied yesterday following a slew of kos pif cpoe corporate news brazil's etf is on pace for its first positive month since january while emerging market

etfs are heading for their best performance since the beginning of the year. a developing story to bring you up to speed on at least 29 people have been killed in pakistan after a suicide bomber attacked a polling center pakistanis a s ars are voting t crucial election isis has claimed responsibility for the incident, which also left 35 people wounded pakistan is still reeling from a suicide attack earlier this month which killed 149 at an election rally at least 74 people have now died after the flames that swept through a seaside resort in greece in a tragedy that the country's prime minister has called unspeakable >> reporter: a gruesome search through charred homes and blackened cars for those who couldn't outrun the flames

47 fires broke out monday, engulfing hillsides. overnight the inferno turned this tourist town into a death trap sending people running into the sea, swimming for their lives. some rescued by fishing boats. on land, victims burned to death behind the wheel a 6-month-old baby among the dead this man desperately looking for his wife he says the fire sped towards them like a flaming tidal wave he grabbed his p-year-o3-year-on and didn't look back >> i grabbed my 3-year-old baby, ran towards the sea. my wife, i don't know what happened i think she burned here. >> reporter: for many the blaze spread too fast. rescuers say they found the bodies of 26 people huddled together hugging now entire neighborhoods are gone burned to the ground

it was like hell, this woman says firefighters say the fires are under control tonight with rains bringing some relief the search continues and the nation mourns. >> those firefighters are truly heroes our hearts go out to those victims there. you can always follow the show here at streetsignseurope@cnbc, you can also tweet us at @streetsignscnbc. you are looking at hadley gamble seen right here driving a flintstones inspired car it is all at the opening of a new warner brothers theme park in abu dhabi, what that could mean for tourism, we'll have more coming up

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welcome back a billion dollar warner brothers theme park has opened in abu

dha dhabi. our own hadley gamble is in abu dhabi. we know you've been having fun, whether it's the president clinton stone flintstones oer o other members of the warner brothers gang, what will the economic impact be here? >> this is something that there is concern about, given up the road in dubai they've been putting big-named parks into that city for a while now. they have not seen the footfall they were hoping for they have had an emphases on trying to increase tourism here and they want to bring all your favorite friends to do that. let's listen in to what the chairman of warner brothers told me >> the returns comes in the micros and the mac crowkrmacros the amount of tourism will enhance everything around us whether it's the airline,

hotels, infrastructure, retail more than anything, us as partners, we want this theme park to maintain its freshness so every couple of years we'll add something. a new ride, a new world. hafrnlgts . >> harry potter? >> anything is possible. the warner brothers world, everything is possible i think this theme park will just get better and better in years to come. >> i think that the -- if you look back to when we started coming here -- i came here ten years ago. ten years ago at emirates palace, you showed me a model of some museums the louvre showed me ferrari world. all the things you were going to do and you have been executing on everything single piece of what you said you were going to do, what the crown prince said he was going to do. i think if you look at it, it's exactly what you said, it's about a long-term kind of

project to create a world class destination, which is what i think they're doing here >> when you look at what happens next and the development of abu dhabi in terms of tourism space, there's so much excitement not just about the warner brothers entry into this, but the louvre, the cultural aspects of this questions about where that tourism will come from what are the markets you're looking to >> we've been growing a healthy 10% from last year our three biggest markets have been china, india, and russia. and that has been the strong growth by all these countries. we expect stronger growth to come from the uk, from germany, from saudi arabia. additions like warner brothers abu dhabi will compound that attraction >> those were the chairmans of warner brothers, and the big question going forward is will these pay off -- i'm joined by a dear friend. get it here with me. as you can see, we're having a good time on this opening day of

this billion dollar development in abu dhabi stay with us >> do give him my best a first on cnbc for the coyote how about that thank you for joining us elsewhere we're talking about big brands looking overseas facebook is setting up a subsidiary in china. the social network said it plans to open an innovation hub for startups, this to expand in the market where its site remains blocked. the office will be located near the home of alibaba. facebook is due to report second quarter earnings after the bell today the numbers will be under scrutiny for the impact of the cambridge analytica scandal, but analysts are forecasting monthly active users to rise 12% to 2.25 billion. shares did rally to a new all-time intraday high on tuesday, the stock recovered more than 40% from its lows

during that data sharing scandal in march for more on everything tech related, you can tune in now to our new monthly podcast series the first four episodes will focus on the biggest themes in global tech right now. that includes data privacy, cryptocurrencies, cybercrime and health tech. you can download it from cnbc.com/btv on itunes, spotify and google play. it was a strong day on wall street overall yesterday the s&p 500 with an implied open just shy of 2 points the dow jones at 10 points lower. the nasdaq at one point. we'll continue to watch these futures as we get closer to the opening bell in europe, the ftse 100 declining by 0.6%. the dax off 0.2%

french cac 40, the italian ftse mib bucking that trend on a sector basis let's give you a look here of what we've been watching a lot of attention on the financial services they are leading the way higher by almost 0.6% keep an eye on the auto sector big day for fiat chrysler earnings due in the next few hours. attention will be on the new ceo mike manley. stay tuned, an exclusive interview with the wto director general, robert azevedo. and also we'll have an interview with the telecom italia ceo tomorrow i'm nancy hungerford, "worldwide exchange" is coming up next. are you ready to take your wifi to the next level?

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it's 5:00 a.m. here, 11:00 a.m. in germany. europe breathing a sigh of relief as its biggest bank reports better than expected results. facebook's top lawyer calling it quits. president trump striking a downbeat town ahead of a crucial meeting with the e ushg today. millions across the east under a flood watch, record highs temperatures scorch the southwest. and we have a winner one lucky person likely to be calling out sick today they hit the 5$522 mill roio