. hello. welcome to "street signs." these are your headlines credit suisse trades higher after the highest quarterly pretax profit in three years >> as the economic cycle turns, people feel less confident so what we're selling them today, you can see in terms of our numbers, increasingly is tools to protect for down side

risk bp raises its dividend for the first time since 2014 as it sees its second quarter earnings boosted by higher oil prices but the energy giant ceo tells cnbc there are jitters in the market >> it's a nervous market you have uncertainties in what happens with iranian sanctions, sale of iranian crude. tensions in the middle east. venezuela is a humanitarian tragedy, but also could have impacts on the oil markets flying high. lufthansa and thomas cook shares soar after the carrier delivers an updebeat outlook and jpmorgan boss jamie dimon tells cnbc the growing trade dispute between the u.s., china and the unwinding of easy money pose the biggest risks to the economy. >> i don't want to scare the public, but we never had qe, reversal regulations are different.

monetary transmission is different. hello. welcome to "street signs." another busy day of earnings to bring you. overall we are looking at a mixed picture for europe mee eu equities stoxx 600 is flat. we did get a negative lead from wall street again. a mixed session in the asian session where the boj was part of the focus let's show you the sectors on the wall looking at the markets one by one. the ftse 100 is slightly higher. the xetra dax is moving in the other drirection, off by 0.1%. the cac 40 is barely in negative territory. the ftse mib is higher by 0.45%. oil and gas are leading the way higher by 0.6% we're seeing strength in banks pushing higher by 0.5% we'll dig into the details of

credit suisse in a minute. you're looking at construction materials, chemicals, financial services and technology lagging. technology weakness is the big story overnight. we'll dig into that. right here the focus on credit suisse, which did soundly beat estimates with a 114 rise in second quarter net income attributed to shareholders the wealth management business had 23 billion francs in net new assets joumanna is in zurich with the details. as this restructuring plan nears an end of its three-year wonder, i have to wonder if the ceo is patting himself on the back. >> given the price share reaction i would suspect he will even though he says there is work to be done. they're about ten quarters of the way through the 12-quarter transformation plan.

they beat on the top line. they beat on the bottom line let's dig deeper and look at the composition of where the strength is coming from. really it's indicative of how much the transformation plan achieved its purpose if you go back to the beginning of 2015, 60% of the overall operating profit came from the investment banking division. today that number is 19% 80% of the operating profits are coming from the wealth management division. they have managed to steer the business away from that volatile capital intensive investment banking business today the numbers are strong this follows strong first quarter and second quarter numbers. i sat down with the ceo, mr. the thiem, i asked if he was happy with the numbers >> everything we said would happen is happening. growth in wealth management, operating leverage, and the

growth in wealth management is happening at 23.5 billion. if you add risk management 17 billion. so we added a small bank to credit suisse in six months. driving revenue, 0.7 % in revenue in our sector, that's unique being able to grow revenue we have positive operating leverage, seventh quarter in a row where we have revenue costs down revenue up 7%. costs down 5%. that's created 4 billion of profit over seven quarters finally vsru, when we started that was 57 billion. we said we would take it down to 11 by the end of '18 we are at 10 so we hit the level at which we said we would close down the

restructures unit. >> you're about ten quarters of the way through a 12 quarter transformation plan. are you still bang-on target to meet your return on tangible equity target for next year of 10%, cost target of 17 billion all of these remain intact >> absolutely. we have a clear beat on costs. again, this half year. ct1 is in place. if you look at the smu, we guided to 1.7 billion, and 500 next year. so that's a 900 million increase in profit. when we say we have levers under our control to drive profitabilities, that's one of them the other is funding we will pay down some expensive funding. that will reduce our funding needs. finally the sru was costly in terms of funding as it

disappears funding necessary before it disappears we have all these upsides. when we say 1.3 will billion, m than a billion of pti has will come almost automatically next year that takes you from where we are today until january or february. >> looking at it from the outside. it looks like the fruits of the transformation are beginning to become more apparent in the numbers and for the last two quarters but yet you look at the stock price, it's still down 9% on the year broadly in line with the general financials sector. do you find it frustrating that people are not rewarding you >> no it's a basic question of finance. let's talk numbers as you know, share prices in banking are driven by tangible book value all these things we're talking about go through tangible book value. the sru has lost 7.1 billion

swiss franc. fines and litigation, another 3 billion. you're at 10 restructuring, 1.7 you have 15 billion that i had to spend to clean up the legacy. but all of it came out of tangible book value. as we take the share price of 2 to a capital rate of about 11. we're at 15 point something because we created 12 billion of profit since then. it's important to understand that draw. you can't just take a share price. a share price is representative of a tangible book value we had all these enormous problems to solve with large numbers attached there's no way that can be dealt with without driving the tangible book value per share down now the tangible book value per share is up.

that will drive the share price and the re-rating. when that goes up, the share price goes up. i can tell you in the last six months every one of the top 20 shareholders has booked. that's my indicator. we're share pricing for the short-term there's no point comparing share price before with all the legacy issues you have to look at the trends and it's very positive so there you have it i asked about the share price and whether or not it was frustrating that still before today the share was down 9% year-to-date in line with what we're seeing in general for the european financial sector. he said a lot of that is on the back of legacy problems they had to deal with, which have hit their tangible book value per share. a lot of those issues are out of the way now. he said we had 15 billion worth

of costs to contend with a lot of those headwinds could be put to the backside and they can focus on generating more profitability coming from that wealth management business and so far into the restructuring and reaffirmation plan out of the top 20 shareholders, he said all of them have increased credit over the last six months >> joumanna, thank you for more i'm pleased to say we're joined by tom kinmonth pleasure to have you on the show today. from the equity side of things, shares getting a pop for credit suisse at 1.5% give us your assessment of the results. >> hi, good morning. it was very strong results we prefer to not just look at

the quarter but the long-term objectives three years ago there was a huge difference in the layout of the company. what he's done is monumental, the changes made looking at wealth management now, it has about 40% of income coming from the swiss area, another 20% coming from apec the apec is expansion, you can use the other parts to growth business essentially what credit suisse has done is find an area which is growing wealth management due to grow 25% in the next few years. also to pick a part of the business which is very good capital efficiency the capital efficiency of wealth management especially compared to markets can very, very strong we have a turn on regulatory capital of over 30% often in the wealth management cost income ratios of 60%, which compares to potentially the market's business which has cost incomes of 80%, and return rate of capital often below 10%.

for all those reasons that you point out,it's not just credit suisse pivoting more to focus on this area, their top competitors are making inroads we think of the likes of ubs how does credit suisse continue to try to lead in this area or take on the competition? >> i think credit suisse clearly have worked out where their future will be and now will try to leverage out asia they put a good stake in the sand to say we have a clear future come with us get returns. net inflows have been strong against other peers especially, even this quarter is good. if they picked a business which they want to invest in, there's no reason they can't take the pool of money that comes across. the problem is the global markets, the vision is one-third of risk-weighted assets. there's discussion on keeping that the same. that's dragging down the r.o.e

from our side, it's very strong, the credit swiss case, we're having safer earnings, more stable growth, good potential in the future >> how vulnerable do you think the wealth management business is not just for credit suisse but globally speaking when it comes to concerns on the geopolitical front, trade concerns, central bank normalization. we did hear ubs flag some concerns on geopolitical issues. when will we start to see this impact performance >> that's the thing, i suppose the start of the year, everyone was positive on global synchronized growth. then we had the haze of italian politics, trade wars, european growth slower than anticipated but it does not benefit wealth management compared to other portions of bank asset blank sheets, looking at what happens to markets, wealth management is best positioned in a safe way to deal with big global macro issues

we prefer to look at fundamentals of banks rather than the macro headlines that have been grabbed. what are your preferred banks in the picked income space today? >> well, essentially we like credit suisse. though just against the benchmark, for example, it's rather expensive we go neutral on that. but we still prefer the global narrative on banks and go for slightly more riskier assets, bank of santander, kbc is offering pick up in those names. so we go for slightly more global banks on the bank of santander side and banks that can diversify a little bit more around the business. in the end, if global growth continues, we hope that will provide us excess returns. >> certainly the big if on everyone's mind. tom, thank you pleasure to have you on the program. sticking with the banking sector, let's get the view of shares in standard charter which

are trading near the bottom of the stoxx 600, off more than 3% after the uk bank did report a 23% rise in underlying pretax profit for the first half of the year but they did say it remains vigilant to the impact of tariffs introduced between china, the u.s. and the eu the lender says its direct exposure to the trade tension is limited and it remains optimistic on global growth, but they did warn the macro economic environment was challenged by increasing uncertainty over escalating trade frictions. as always, get in touch with us about any of the earnings we've been discussing. get in touch with the show on twitter, @streetsignscnbc. still to woman on the show, we're keeping up the earnings score cards. strong results for bp as the oil major beats profit expectations. we'll have more after the break.

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$10.25 a share this comes after the oil giant beat expectations in the second quarter with 2$2.8 billion bp also boosted production as it benefited from higher crude prices it struck its biggest deal in nearly two decades last week buying the us she.s. shell asses ceo bob dudley said the acquisition should deliver for years to come. >> it is transformational for the company. it works on multiple levels. it works because it transforms the lower 48 businesses, onshore, a great team, but not the right assets for them to work on. they're doing great. it's good for bp as a group in the upstream it allows us to high grade our portfolio we'll be selling other things around the company to pay for some of this transaction for bp overall, it's growth going out for many, many years >> the company also saw net debt fallbelow the $40 billion mark

but dudley told "squawk box" he's staying focused on capital disciplin discipline >> it's a nervous market, you have uncertainties in what happens with the iranian sanctions, sale of iranian crude. tensions in the middle east. venezuela seems to be a humanitarian tragedy, but also could have big impacts on the oil markets. you have oil bottled up in the permian basin now in the u.s that will take about 18 months the u.s. production increases that people expected will probably be slower from the u.s., but they're coming all these things put a mix together with price this morning of $74 a barrel. there's a range on this. it could go up or down feels like there's more strength in the second half of the year than down side >> among companies likely keeping an eye on that range for oil prices, lufthansa. let's look at shares here.

they're near the top of the european blue chip stocks after the airline reported slightly better than expected profit for the quarter. the company about cite good demand on its north american routes the firm sees unit revenues increasing slightly this year, but has maintained guidance for adjusted earnings before interest to fall from 2017's record level over at thomas cook, shares are pared back early losses after dismissed reports of a planned sale its annual profit will come in at lower expectations with hot summer weather in europe negatively affecting late holiday bookings let's give you a check on vivendi. shares have been in the green as they mull the sale of up to half of its prized music division it could be sold this autumn with a final completion date set

for 18 months. umg has proven to be a valuable business for vivendi the decision comes as vivendi beat first half core operating profits. elsewhere the company said it was in talks to buy a french publishing group an update at cbs leslie moonves survived a keyboard meeting amid claims of sexual harassment, but it remains unclear if he will keep the post during a probe into the allegations. julia boorstin has more. >> reporter: les moonves is staying in the corner of the office at cbs despite allegations of sexual misconduct the board of directors say they're in the process of seeking outside con seunsel to investigate the claims

a board meeting of stock holders was set for september 10th that meeting was expected to focus on a court battle between shari redstone and her push to combine cbs with viacom. now as the board hires a firm and starts its investigation, the next event for cbs is its earnings report thursday afternoon. moonves typically leads the earnings call discussing the trajectory and future. we'll see what he says then. julia boorstin, cnbc business news, los angeles. back to the earnings in europe, solvay shares are higher as strong growth in volume countered headwinds. and sanofi shares are flat

after clawing back early losses. the french drugmaker posted slightly higher than expected profits for the second quarter sales in the firm's genzyme division were up 30 cents. sanofi confirmed they're poised for stronger growth in the second half. tesla is reportedly in talks with german and dutch officials to build its first major european factory according to the "wall street journal," the carmaker has held initial talks with two german states battling it out to hostess la's hostess -- host tesla's giga factory. no deal brexit is just not an option. that's a warning from the head of society of motor manufacturers. according to the group,

carmakers are increasingly concerned about the uk's future relationship with the eu post-brexit. with the industry and the uk dependant on car parts imported from the eu, the chief executive is warning that production could come to a halt if a no-deal brexit goes ahead. president trump's attorney, rudy giuliani, has questioned whether colluding with russia is even a crime as the trial of paul manafort gets ready to kick off. this comes as trump threatens to shut down the government if he does not get support for his proposed wall along the border kristen welker has the latest -aft . >> reporter: after saying it was a waste of time to tackle immigration before the midterms, the president's new threat, to shut down the government over it. >> i would have no problem doing a shutdown it's time we had proper border security we're the laughing stock of the

world. >> reporter: the president also saying he's open to negotiation, a new wrinkle for republicans fighting to hold on to congress. tonight, the senate's top republican vowing it won't happen. >> funding the government in a timely and orderly manner. >> reporter: and 99 days until the election, there is also the mueller investigation. for months, the president saying on twitter and in person, there was no collusion between the trump team and russia. >> i say it all the time, there was no collusion. >> reporter: but tonight, trump attorney rudy giuliani now questioning whether collusion is a crime at all >> i've been sitting here looking at the federal code trying to find collusion as a crime. >> it's not. >> collusion is not a crime. which i don't know if that's a crime, colluding about russians. >> reporter: back in april fired fbi director james comey told cnn that while collusion isn't a crime -- >> the question we would look at as a counterintelligence agency is, are any americans conspiring, which is a crime defined by the u.s. code with a foreign government. >> reporter: one key focus of

the investigation, a knowledgeable source telling nbc news mr. trump's former attorney, michael cohen, is poised to tell mueller the president knew in advance about the 2016 meeting with don jr. and a russian lawyer still to come, it's a light touch for the boj as japan's central bank keeps its yield target unchanged and broadens out etf purchases. more details after the break

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welcome back to "street signs. these are your headlines credit suisse trades higher after the highest quarterly pretax profit in three years the ceo does warn of changing investor sentiment >> as the economic cycle turns, people feel less confident so what we're selling them today, you can see in terms of our numbers, increasingly is tools to protect for down side risk so hedges, der rivatives

bp raises its dividend for the first time since 2014 as it sees its second quarter earnings boosted by higher oil prices but the energy giant ceo tells cnbc there are jitters in the market >> it's a nervous market you have uncertainties in what happens with iranian sanctions, sale of iranian crude. tensions in the middle east. venezuela is a humanitarian tragedy, but also could have impacts on the oil markets flying high. lufthansa and thomas cook shares soar after the carrier delivers an upbeat outlook. its british counterpart dismisses reports that its planning an airline sale and jpmorgan boss jamie dimon tells cnbc the growing trade dispute between the u.s., china and the unwinding of easy money pose the biggest risks to the economy. >> i don't want to scare the public, but we never had qe, reversal regulations are different. monetary transmission is different.

welcome back to "street signs. let's bring you up to speed with the european equity markets. a mixed picture. the ftse 100 barley cliely cling into positive territory. the ftse mib is higher by 0.4% all of this after a negative lead coming from wall street an a mixed session in asia. let's check on the fx markets to see how the dollar is faring against the japanese currency. you're looking at the dollar stronger at 1.1137 we'll dig into what it means for more flexibility with asset purchases. the euro at 1.1723 key data in focus in just about 30 minutes from now coming from the "u," including gdp, unemployment figures and inflation figures. sterling holding at 1.3155,

stronger against the greenback the dollar still stronger against the chinese currency at 6.8240, higher by 0.20%. let's check on u.s. futures it was a negative lead coming from wall street overnight. tech the drag there. the dow jones is called lower once again with an implied open of 2.8 points there. different story for the s&p 500. called a bit higher. the nasdaq looking for some reprieve this is a muted call at the implied open of 1.4. jamie dimon remains bullish on the u.s. economy, but does believe there are two big risks. the ceo of jpmorgan highlighted the trade conflict between the u.s. and china and the unraveling of qe by central banks around the world as two key factors. addressing the trade dispute, dimon said he believed it had not turned into a full-blown war but expressed concerns about trump's strategies so far.

>> i would put it in the skirmish category. the business community is representing to the president that we agree with a lot of issues raised by china the business unit in general would have tried to get mexico, canada, japan and europe to get a common front it needs to be fixed we want it to be fixed he has taken an approach which i'm worried could create negative outcomes. we told the president that i'm hoping his methods work. >> the wall street boss outlined his concerns about the unwinding of easing monetary policy. >> it's trade if the skirmish becomes more of a war. i would say it's the reversal of qe we never had qe. we never had the reversal. regulations are different. monetary transmission is different. governments borrowed too much debt people can panic when things change we tell you it's changing. we know it will change it happens it may have some effects that people don't expect, and i think

it is bad policies >> dimon still struck an optimistic note about the outlook for the u.s. economy and what it means for bond and equity markets bonds could be going up and not down a natural rate for the ten-year bond today with an inflation of 2% would be 44%. so far to good effect those things are reversing global growth will be the strongest it's been in a period of time. america look like it's accelerating as long as they're raising rates, that's fine >> the more i look at your share price, it's correlated with what the curve is doing is that curve getting overdone do you think the share price reaction is overdone >> interest rates go up and down for a reason, but short rates

going up helps our profit line i think there's an overreaction. i think banks roll different we'll do quite well as a bank. we don't take bets on interest rates. if you think rates are going down, the ten-year, because the economy is weakening, that's going to affect all banks. i think that's not what's happening out there. >> in terms of the equity market, there's been some big tech earnings misses in the last couple of weeks. facebook was the high profile one. the nasdaq is down sharply again today. when you see those earnings numbers, and you see the market reaction, does that suggest the equity market perhaps particularly the tech sector is overheated now >> not really. i think some of those things are company specific companies that have high pes, when you forecast future changes, it will dramatically change the stock price if you think we might have a good economy for a couple years and earnings will grow 5%, 10% or more, that's a very likely

outcome. i'm not saying it's going to happen i look at possibilities and probabilities, but the economy looks strong consume ser in good shapr is ine there are no potholes out there. people are going back to work. lending has been been pristine, more people are going back to work, unemployment may hit a post war low at one point this year those are positives. there's always going to be some kind of problem, but that is not the problem today. >> after much anticipation the boj has taken a light touch approach to policy broadening out etf purchases but leaving the yield par gets unchanged. the muted decision comes after a week of speculation that this meeting could be the first live event since september of 2016. some market participants expected an adjustment to the stimulus program we're joined by brin jones great to have you here on a busy

week for central banks let's start with the boj are you surprised by the decision >> i'm not i think we've seen them take a light touch. they don't want to upset the apple carts. the qe is like a drug for markets, you just can't keep that drug away, so they're keeping markets on methadone the topix is a broader index, so they have more scope there but they are still saying they will keeping the buying around 0% in the ten-year if the economy is doing better, then they'll not be buying so many >> despite no dramatic changes today, would you say the boj is showing its bias shifting a bit towards tightening going forward? >> i think we'll see slow steps from central branchanks we've seen it from the ecb

we've seen a bit thoof that from the bank of england. they even mentioned they will be introducing forward guidance so these are the pigeon steps towards removing qe. >> i take your point that the bank of japan doesn't want to upset the apple cart, primarily because inflation is so low. when you consider some unintended consequences of qe, negative impacts to the banking sector in particular, and others who said distortions are there in the equity market have they gone far enough in addressing some of these concerns >> i don't think they'll be able to do that straight away you tant tacan't take the rug am markets, a lot of markets would just tank and create market instability. it has to be done more slowly. >> looking at the ten-year jgb there, well off the highs.

where do you think we go from here >> i think we'll be playing around the zero percent area they mentioned they'll be buying around zero percent. i don't think we'll be far away from that. >> no more room for surprise let's talk about another market that you don't seem overly excited about. that being the gilt market we're getting closer to the bank of england decision what do you en expect >> i expect a rate hike. i do think the bank of england should use this opportunity to raise rates. the economy is bumbling along okay it's not chugging along full power, but they need the opportunity to raise rates down the line, we may have a hard brexit, who knows i don't think the bank of

england have enough fire power to deal with things. >> i think there's a 90% chance priced in for a hike given blrexit uncertainty, we hear more and more about companies preparing for a no brexit deal. don't you think this will give the bank of england a pause for thought? >> it's been a key issue i do think without the worries of brexit, it would be a higher central bank policy rate i think they already pared back some hikes i think this one is done >> brin jones, thank you very much for your time >> trade issues and weaker demand sparked a slowdown in chinese manufacturing growth pmi figures came in at 51.2.

a note cited weather conditions as a reason for that lower print. another bite out of the f.a.n.g.s. apple is due to report earnings after some rough results more on what to expect coming up - 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. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. tremfya® is fors caadults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin

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welcome back to "street signs. u.s. president donald trump says he would be willing to meet with iranian leaders without preconditions. the statement could pave the way for possible talks between the two countries as looming u.s. sanctions take their toll on the iranian economy. it also represents an abrupt shift in tone from president trump who has been trading barbs with the iranian president >> i believe in meeting. the iran deal was a ridiculous deal i believe they will end up wanting to meet. i will meet with them any time they want to i don't do that from strength or weakness. i think it's an appropriate

thing to do. if we could work something out that is meaningful, not the waste of paper that the other deal was, i would certainly be willing to meet. iran has already responded saying the path back to talks would require the u.s. to return to an international nuclear deal with tehran. u.s. secretary of state mike pompeo defended trump's statement saying he would back a meeting with iran. >> we've said this before. the president wants to meet with folks to solve problems. if the iranians demonstrate a commitment to make changes in how they treat their own people, reduce that malign behaviobehav agree that it is worth entering into a nuclear agreement that prevents proliferation, the president said he's prepared to sit down and have a conversation >> there were reports last week that they have rebuffed numerous requests from the president. is that true

>> i'm not going to discuss private conversations that may have been had or may not have been had >> the iranian currency is getting pummelled, this is ahead of the snap back sanctions that are taking place are you happy about that >> we're looking for a change in the behavior of the regime you can't fight with iraqi militias, that's not behavior that's acceptable from iran. those are the changes we're looking for. we're hoping the iranian regime will see it that way and change their behavior >> secretary pompeo announced a 1$113 billion investment in the indo pacific region. it will focus on technology, energy and infrastructure. pompeo responded to claims that the move is an answer to china's

belt and road project. >> we're convinced american engagement in the pacific benefits all the nations in that region we want it to be free, we want it to be open. we're not looking for dominance. we're looking for partnerships others choose to behave differently. we want these to be commercially viable projects that benefits the entire region and the world. >> we've been talking tech earnings all week. we're getting more information from the smartphone giants samsung has posted its slowest quarterly profit growth in more than a year. it did report an operating profit of 13$13.3 billion, just beating its own estimates, but earnings from its mobile business sank from a year ago. samsung did warn that this would keep conditions challenging. apple will be reporting its own results later today.

as apple is set to post its third quarter earnings, the last of the f.a.n.g.s to report, the consensus expectations is for earnings per share of $2.18. that comes as the tech giant judges closer to atrillion dollar market value. with the stock up over 25% just in the last 12 months. josh lipton filed this report on how investors can expect the stock to react to the report >> reporter: ahead of apple's earnings report what do the last 12 quarters show traders over the last 12 quarters on the day after apple reports it tends to be a coin flip. trading higher 50% of the time, and lower 50% of the time. the absolute swing is 4% a week later does tend to get

slightly better trading positive more often than not with an average return of 1.1% that's the data. what do the charts show us about the reports? apple is retreating from minor resistance from june's high, a deeper pullback appears likely ahead of a decisive breakout which would target 2.14. strong support is in the 1.80 to 1.81 area, but a decline of that magnitude appears unlikely heading into the report, apple is up 15% in the past three months analysts think apple will report qps of 2.18 on revenue of 53.2 billion, that would imply 15% growth on the top line for more i'm joined by neil

kampling tech earnings have been a mixed bag and have not been kind to the nasdaq what does apple need to produce here in the way of results to help put some tech concerns aside? >> it needs to repeat the previous quarter, which was the same setup this time around. it needs to deliver a stable set of results so really we're looking for iphones this quarter, primarily driven by asp increases rather than volumes, that will be the key metric people are looking for. that's the primary focus really the expectations are fairly low apple needs to deliver a solid quarter. >> when it comes to the update on the iphones, expected delivery, anything from the samsung results we can take away that could provide a warning sign for what we might hear from apple in the way of samsung worrying about price competition and also competition in the chinese market

>> are two different things at play firstly for samsung they mentioned resistance to pricing at the high end. so that means apple's future products have to be more lower priced models. the second issue is china. china's smartphone manufacturers are getting more market share. there's a reason for that. we're seeing the rise of triple cameras, which samsung and apple don't have, and they don't have it in their portfolios for 12 months the triple cameras are really popular because they offer high quality and are great in low light. >> do you think there's any taboo associated with buying an iphone as a result of the trade tensions playing out do you think there's a push to buy domestic in china going on is this sheerly a play on the specs of the phone >> i think for consumers it's about the tech specs in the western markets it's the functionality of software with

hardware, which is why apple held its own despite the high pricing. we're too early to see the impact of tariffs on consumer choices. we are seeing it independent ventory buive - in inventory builds. that's going to be a key focus tonight to see if there's changes on the components. >> it will be interesting to see if there's a question about accessories. if the trump administration moves forward with additional 2$200 billion of tariffs on chinese goods, you could see the ear pods be vulnerable >> if you look at the next set of tariffs, integrated circuits are on that list of the next tariffs likely to hit. so we had a public hearing in the u.s. last week, we're waiting for the results of that,

certainly tech accessories are a significant risk for import tariffs. >> we know how tim cook feels about that let's talk more about the services side. if we get decent growth in services from apple, could that be a catalyst for pushing the stock higher >> absolutely. the biggest factor in services is the gaming revenue, we've hyped a few times that apple is the third largest gaming company in the world havingbi $8 billion in revenue in gaming despite producing zero gimames gaming is a big driver logitech also which is a peripheral company, game sag 0 $160 billion industry. i want to ask about a big earnings report on wednesday

that one coming from tesla has not been an easy run for tesla as of late, whether it's concerns about elon musk's tweets or the funding at tesla, whether or not they have to tap markets again to raise funds is that your expectation >> we expect tesla will likely have to come back to the market again. we look back at 2012, tesla said they would have no need to come back to the markets, but they've come back five times since if we look at aggressive component cost increases and substantial losses, the likelihood is they will need to raise capital again. >> what do you expect from elon musk on this call? >> we need a balanced appearance from the management team, and some answers to some serious questions posed the last time around so a stable conference call to offset some fears that people have in the marketplace with regard to the fact that we're

not getting answers to some crucial questions. we'll all be tuned in to that one on wednesday neil, thank you for your time. just before we say good-bye, let's check the u.s. futures after what was a down day for the markets on wall street looking at bounce expected muted calls at this stage. the dow jones has an implied open of 16 points. the s&p 500 with 4 points keep an eye on apple after the bell later today that's it for today's show "worldwide exchange" is coming up next. wednesday august 8th,

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