♪ welcome to "street signs." >> these are your headlines. >> the beer maker slashes its guidance after profit misses expectation, sending shares lower. volatile currencies have been weighing on the number >> the euro has been so strong and that wakes on our transactional and partly

theilation -- >> it also catching a cold on foreign head winds as net profit falls 11%. >> u.s. treasury secretary tells the strength of the american can conomy, forecasting at least 3% growth after gdp the highest level in four years. >> and some of the world's biggest auto produceers as bmw bem cans the first big car makerer to raise prices it tool contend with paris morning everyone and a happy monday n deed. let's check in on markets and friday we did have the strong

gdp numbers, the strongest in about four years we had the worst day in a month for the naasz dak. and that mood has really shifted to asian equities overnight. l eyes are going to be on what 457 wpbz the bank of japan, if they modify monetary policy. still trading foggy. weaker in early session trading. let's see what the picture is like you can see they're treatingall are red me to tune of a 1/3 of a percentage point let's not forget they're

expected to hike for the second time also comp earn weighing as the mood grows putensh frail a second referendum. but that is the noise back there. watch out for the next can couple of days as well we've got difference coming up tomorrow and earnings continue and hets let's take a look at the 2nder. if almost all of the sectorers are tradinging in the red. we've got assurance up and food beverage continues to log already. but that is the picture.

>> heineken shares trading sharply lower after the comp canany cut its full year margin guidance it missed first half profit expectations weighing a hit for currencies se its growing brazilian operation. firm >> it's good and bad news. brazil has lower han our average margin across the group but it growing much faster than why anticipated. so that is very good news the uger half is essentially of the currencies because the euro has been so strong and much stronger than we anticipated. and that weighs on logical the transactional and translation due to the important exchange.

throws the two explanations why we have revised our guidance >> for more i'm safe to a say that we're joined by -- head of european equity strategy at deutsche bank. we just heard the ceo explain some thing worse out of their control. but quite a significant revision when it comes to margin guidance >> worry about a long-plan future there and so we're very good you now see a much more health conscious consorbol. heineken are very strategically reliant on what's in europe. >> but is this a growth issue ear margin issue

because they showed organic growthf pour.5%. not necessarily on the margin number it appears there is still growth, just not in america and not in europe. stkpwhrrs they know that's short term they're goinging to have a difficult time of it and especially in margins. but it's still huge potential there. >> you talk about margins in brazil but what about the u.s. market some nuggetss that is still an whir area can head winds >> it's been stat freq a while for example heineken plan to position themselves much more in that segment

and it it it's acquisition strategy to buy up some of the small brewers monopoly. >> i see it comprises about 5% is that a high margin area and it something you expect them to focus on less in the future >> you don't have to nay same kind of catches. as a caveat, they don't often want to pay the same price so they want to feel like they're having the fun and sophistication of alcohol, without necessarily a hang over the next day and i think hawncon have positionedselves really well on that

but whether it's going to take place of full-strength beer in western markets, i'm not convinced. >> it's somewhat of a case of managing investorers so far you note we have had an increase in earnings but when it comes to eps, not quiteads rosy as the u.s >> we had very weak -- in the second quarter the risk would have win that earnings come out weaker than they have. >> just sticking with heineken, it's interesting broadly speaking they haven't had a great year do you think that going forward on a forward looking basis, consumer staples are going to

struggle and this is one of the best teams showing margins as well. doesn't look like they're going to get that much love going forward. >> ire imported tonight know what they're doing on a fundamental level and performance. there's really just one thing that matters because the underlying businesses are quite stable but the only thing that has really mattered is what is going to happen to the u.s.a so that means some pressure. it thp more pressure >> and we should technically see the dollar rising as well. and talk about the strong euro >> the strength of the euro is

backwards looking. our model suggests that the dollar could weaken a little bit because it a strong warm up but it's true a lot of the pressure we now see from the euro should be coming up all right. johnny you're going to stay with us no, johnny, you're not go toing to stay with us. and sebastian will stay with with us from douche bank foreign minister siemens saw net profits fall 11% it links head winds by 5% across all segments and if world cup boosted revenue. it saw a 43% drop in prophet

foreign minister if he said if a we aresant bid is successful i would be successful the rest of the year >> and a 50/50 joint venturer digs p it says each company will initially concan tribute $1 million to set an it platform in the united states and announce anath head quarters in america paramount pictures said the action-fuelled spy move aearned more than $60 million, not counting for invasion. that makes it the best opening of a "mission impossible" installment. have you seen it >> no, but the first "mission

impossible" came out 22 years ago. >> if i didn't see it but i'm sure it doesn't have anythinging to do with my age. >> if you have goog say about tom cruz or heineken -- >> that's quite impressive for tom cruz >> you can so tweet us directly. but coming up a little bit more. we'll dis custhat coming up next - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide.

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xfinity gives you more of the cma fest with an encore performance from old dominion right after the show. only with xfinity on demand. and watch it live on abc wednesday august 8th. welcome back to "street signs. keats u.s. treasury secretary has forecasted at least 3% growth for the u.s. economy. this following the latest reading showing expansion in the second quarter boosted by consumption and business spending and they move to get soy beans

to china before tariffs were implemented. president trump describing the u.s. as the quoted economic envy of the whole while munugsen said the high level of growth could last >> i think we definitely are are in a period of four to five years of sustained growth at least. >> the treasury secretary also made clear that they respect -- followling criticism of the central bank's plan. >> we support the independence of the fed and the president pfz made it clear this is the fed's decision these are really comments. it's something the president has a concern. but he respects the temps of the fed and the issue is the market expects interest rates to go up.

theopely question is hoy far and how long and think the fed will careful manlinging the economy >> expect more of that to am can. the fed will be meeting on tuesday and wednesday. >> not yet but one of the other banks this week is the bank of japan. speculation has been mounting that doj will look to make it more sustainable this could femclude keeping the yields on a 0% yields last week saw their biggest spike. and recovered somewhat from 11 basis points but of course it can be very

busy couple of days. but it's also a busy week on the european calendar as well. cpi expected to be unchange said at 2%. we also get preliminary gdp data unchanged at 0.1% for the flicker. and foreign minister sebastian, going back and looking at this the reason before, what you've said in your notes is we've seen earnings growth from 4% of the companies. is this consistent is it better is it worse? verse as micro picture >> will be around 04, 0.5.

that's slightly down from last year where it's certainly consistent with the gdp. >> lookinging into specific sectors. the positive surprises are am canning from fine agess. but the positive part of me is there a correlation between a center massively performing and out performinging when it comes to surprises on the earnings >> far the most interesting text that moment. if you'll remember this is the standout consensus and then significantly underperformed so the key question is what decides whether the banks are

going up and down. tphrrs question is simple. it was unsustainably high. we hea concensus we think looking forward will pick up a little bit we think rigser argood entry point. >> we still have a greatstory go between the u.s. and europe if you believe this confidence is set to imfor prove, will you continue to see the gap between the two? >> yeah i think there will be gap. you've fallen so sharply there's a slight acceleration. while in the u.s. it will tend to slow.

and the rate of change is like -- >> geographically we've seen the best performance out of france, germany and spain. what and the catalyst there? because if you want to go by your rate of change hypothesis. >> i wouldn't put too much weight on the quarterly earnings so every now and then you fayette 40 out lies. so i would sthaeu broad trend as you see strong growth a lot of uncertainly hanginging over the corp areerate. mario's frustrate by theed lack of fiscal change at the government level is this going to continue to be

drag on pertporpbls in italy the first thing that matters rate of change in area growth. it whrpl itfirm performs rel taofb that metric. he's -- and secondly both of these are going to be drags on the performance. >> they told us essentially they're not going toing do anything through summer 2019 so that could be after the summer we know rates are not going to move and if stkpwhrpl that's re a great question from our perspective the answer yes.

that start of the year remember everybody expected them to go up and they went down they're going to stop the percheses. that's one reason to believe they will be higher second hamp of the year in growth. real estate is clearest way. >> i want to taping talk to you about the auto sectorer. because there was a degree of relief last week between that meeting. but lookling at today saying they're getog raise prices in china. china is such an important market for the german automakerers, exported to china. >> i think the ought so into the and very negative on the sector.

at the end of the year they said there are all these changes. they're turning themselves into corporate holding structures and so on. and because he's road over so sharply. so if you just look at these two varicates, the only question is is it going to go wrong? >> sebastian, great to have you with us. headf european equity. the u.s. tech sectorer did lead the markets higher than a month. facebook suching its biggest one-day loss by any company in u.s. stock mark lit history after its own disappointing fideance

>> posted a huge beef on earnings per share and second quarter results are avail apple. foreign minister we've learned anything so far se that differ enjoysiation inkey here. seem as real issue - >> i want to run through some of those companies it it -- if we look at facebook for example we saw some of the concerns around privacy come to the for and concern over the drop of users in europe, for example there could be more potential impact of these scandals that have happened. those are some of the issues with facebook. if we move the on to amazon. it's obviously got the main

ecommerce business and a cloud business while cloud accounts are for 11 fer t accounts for more than half of the profit it continues to drive prophet every quarter which is what the with world sees. tprrls and they managed looking for a lid. so there you go, tprp i chink apple was going to be focus. one of those is that usual iphone number. comp equates for about 2 1/2 punch on theroidry the market's going to want to hear more about any product, as well as the segment which

includes the likes of iphones, apple music and soy forth.porous china of course another big topic. and apple will need to meet those high expectations back to you. >> coming up on the show we'll be talking auto tariff

. hello and welcome back to "street signs. >> these are your headlines. >> a bitterer taste for heineken can, it slashes guidance after profits misses expectations, sending shares lower the ceo says volatile currencies have been weighing on the numbers. much more stronger than we anticipated that weighs on all the transactional and partly the translation of the tech due to

the foreign exchange towards the euro and also catching a cold on head winds as the german equipment makerer sees profits 11%. >> steven munugsen touts the strength of the american economy. forecasting at least 3% growth after gdp hits the highest level in three years >> and some of the world's biggest auto producer a plan to combat president trump's trade policies hello and welcome back european markets kick canning off the trading week they're mostly in negative territory.

and the it it french off 0.45% and ftse -- and that negative lead from wall street closing out the week in negative territory after tech disappointment did drag. it's a big week for central bank perhaps the bank of japan said to be most interesting as we wait you're looking at the year euro at 11668 taking a look at that dollar japanese yen rate, the green back just inching higher against the japanese currency which can could see volatility sterling is holding higher by 0.1% and wings again to that 68250

level. and for own going weakness in the currency let's give you a look at u.s. futures here the dow breaking a win streak and all about the nasdaq declining worse in a month an implied open of around points and a similar story are for the snp 500. >> also trade officials from the eu, china, mexico will join in geneva tomorrow. representives will discuss a coordinatoredinated response to the investigation which could

see tariff imposed on new cars and our colleague spoke to chair of the committee on international committee about the ongoing trade disputes he was critical can of the recent meeting with president trump but admitted it was difficult to deal with the administration >> nobody knows exactly what the strat of mr. trump is. and therefore we tried to avoid a trade war by being really in the frame. and talk to this administration. so that you can try to bring him back to a system stprrs. >> meanwhile bmw will lift

prices of two models siting tariffs. the german auto maker will raise costs for the cross over suvs. a spokesperson said bmw stands for free trade but can't stand still without taking action to respond to market changes. >> and they discussed trade hours ago. she said the trade imbalance should not be blamed on china and it's perplexusinging the u.s. says it's been taken advantage of china -- and haveope ntas discussion on brexit trade deals. and i'm happy to say deputy directorer joins us down the line i just want to go back and ask

your opinion of the meeting with president trump last week. it's being hailed of somewhat of a productive meeting >> people are saying we can draw a line on the tariff side of things you considdard productive meeting. >> when it comes down to such big issues, it's always a good idea to talk and i think this is fine in terms of trying to deal with it and trying to avert it managed to put off even if only momentarily and trying to deescalate what can be pua very unproductive -- >> the economic advisor for the white house says the u.s. should

immediately start neiating do you think it's right the eu immediately start negotiating -- let's not forget that the u.s. has imposed tariffs on steel >> i would agree with that the first thing that needs to happen is to roll back the tariffs. we with can see they're backfiring the u.s. economy as well tprrsz and inevitably, together with the farmers, they will be putting pressure on mr. trump to try roll back some of these measurers. tprrbs i think it's important to start on a clean slate >> and a lot of this relief came

it because they agreed to work forward on tariffs from wheria sit right there in brussels, how likely do you thing it is they get behind this zero tariffs >> some of the issues with were very much -- this is how much you first came into power. he dismissed it as a bats deal for the u.s. everything is very much in line with the tattoo yesterday. so it's important to recognize this is not i couldn't tell! >> and arguably the bigger battle is what's taking place between china and the u.s. and we're already seeing evidence and bmw being caught in the middle they make cars in the u.s. that

are then exported to china so do you think the real issue that the eu should be having with the united states is on the china front? should they be working harder together on this one >> i think you described it really well. the u.s. is an it traditional partner historically and economically it -- really caught in terms of what to do next. it's not so easy to try negotiate with the chinese because they actually do think differently. sphero the driest try take position election not easy just now what's important is try to go

back to the roast base of them all the action that has taken so far is with the you based on the rule of law a. >> then almost everyone would have agreed. >> again this is one of the -- a deskraoeur flop u.s. and eu at reforming the wto to make sure it encompasses territory for everybody. >> indeed. i think the u.s. is on that side of the argument in the sense it recognizes it's not been expected in the past se reforminging is very fortunate and forward. it it he tries to if engage often.

it went be short we need to work towards reforming it but i think that's willingness on tpwoegt sides >> the deputy directorer now a support chancellor's it maz dropped they revealed the racing for the alliance dropped by 1% point and that compared with 33 in the september election the showing is inworst since 2006 and come cans as the t -- and a long-standing cocanlition. >> in germany deutsche thank had it tkhaegs german lender had been one of the first.

and it's so far been the leader for clearinging tprp interest rates. but brexit could if see business shiping to rival as many as 100,000 jobs leave london elsewhere a developing story we're watching state side. they're reportedly -- according to semple media reports the board is weighing whether he should step aside into possible miscontact and six women alleged he it did them since the '80s.

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before or during treatment, always tell your doctor if you think you have an infection or have flu-like symptoms or sores, have had cancer, or develop any new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions can occur. do not take stelara® if you are allergic to any of its ingredients. man: are you fed up with crohn's symptoms following you? talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®.

versus welcome back.

local authorities say wild fire has taken the lives of six people the blaze has sent residents fleeing from their homes, leaving more than 38 thousander re under evacuation orders jay gray is in redding, california with more some horrific video we've been watching out of the scene. what can you tell us about the efforts to contain this blaze. >> well, you're right the damage is overwhelming. the entire neighborhood like so many gutted fie fire some of these been burning for more than a week overnight firefighters got a bit of an edge and containment has jumped from 5% to 17% here at the car fire, which is undoubtedly the worse burning in a state that seems to be on fire right now. more than 17 all the way through

the surpbgt part of the state pap as you talk about including first eresponders. we've got a great grandmother and her grandchildren. more than 5,000 structures still in what's considered the danger zone and we continue to have mandatory evacuations continuing around the clock here. work has been around the clock as well. more than 3,000 fire tighters, and 17 ehelicopters all working to get ahold of him. but that work is going to quite some tile. >> reporter: hire at the car fire we go started as a result to damage to a truck

sparked a flame. we've had some that have been started on purpose, arson and so it depends on the fire and the investigations into the cause continuing though right now the mainly main focus is saving lives. and there's so much fuel on the ground across the state. hot temp schers continuing to push the fire. >> thank you very much >> elsewhere 16 people arefirmed dead after a large earthquake yesterday. they say over 300 were injured including some hit by flying boulders the mag nuitudes 6.4 quake was also heard in nearby dali.

say they are quote unable to determine the real tkprauz the disappearance of the it it aircraft this comes in an if accident report the plane dispeered in march of 2014 >> and former zimbabwen leader yeggsed a current dress to say he illegally cook power pin pis it egand upsition rival faced avon historic investigation stkpw he replied only hailey ful. >> we can can no longer believe

mat these intentions are to transform zimbabwe and rebuild our nation either work or want a new zimbabwe and under my hrb -- >> u.s. president donald trump would be willing to quote shut down the government unless cong ras agrees to build border wall. >> reporter: hes new jersey weekend over the president heads back to washington with a provoc teufb threat i would be killing to shut democrats don't go inhe wanted let's have a hit down skwr and it's worth it for our country.

i'd love to see shut down. >> reporter: today wisconsin republican senator said no way >> i don't like playing shut down politics. let's re try and avoid it. fervors. >> reporter: the president sees imclangs as a way to harmer democrats this fall. >> they want to get rid of ice ice is tough and ice is smart. stkpwhrpl president's dare, no cliff tharpbg is on saturday already approving big sections of the budget. the gop leaders gave the president bad news yesterday his boarder will would come later this year. and that's something we do have

a disagreement on. under 100 days can you believe it and the ficks has been turning towards the democratic party which needs win 23 seats to retake controll of the house of representives. the republicans are expected to maintain a thin majority in the senate it city eugversity of london and thank you for joining us today let's start with the the house >> well, that moment two things. one isally they lose in midterm elections. people are unhappy tend to not come out and vote. error for democrats are more high motivated to work

it it it the big issue is if they don't by a big enough majority or lat rect then i thing we have a problem. >> i think the critical part is normally they don't fair well. but so much of what we see hasn't been following the script and i do wonder if it's on these issues of strayed or immigration whroer or not president trump can motivate his base to be more motivated. >> i think the whole issue is be framed as a rendm and the type of policies pursued. and you do know what the incumbent itself, does it have

apmuddy propgram in this idea that 2018 almost won them the white house >> with within the republican party. president trump has an 88% approval rating. >> you can have an approval rate and then the actual mote strikes vote firm but as we said means that no party can really take anythinging for granted. we're watchinging markets and the data, but everything is pointing to slightly lower in the future if things start to level off do, you think that's going to change

the poppial paeurpt gettinging knoche to the tarbing cut. >> problem is a lot of training. an a lot of the campaping was on economics, identity. was putting back in charge the true american. thp white male american. and a lot of that psychological benefit is he maintained the second thing will be ramping up the anti-immigration. it. >> and i think you put up something which is the rhetoric verses -- the data will show you those he intends to help are hurt

it seems they're ilwithing to take on it short term gain because they're so happy >> i think there's a great psychological benefit. 88% approval that's incredible. >> absolutely. we're going to leave the there head of international politics and city university of london. let's take a quick look at u.s. futurers tao was down 25 minutes or so. er. >> world wide exchange" cominging up next.

it is fiver a.m. and allegation rocking -- and american-made suvs why? think tariffs. shares of one big beer comp canany falling flat. london not calling big bank make as 41 carpalany. the ball now solidly in apple's court. that company