hello. welcome to "street signs." >> these are your headlines this morning from london. >> barclays tripled its earnings posting a 188% rise in pretax profit in the second quarter as the bank recovers from being weighed down by legal costs. >> we're really clear of all the major impediments. there's no major litigation issue hanging over us. there's no more cost to achieve. no more noncore. there's no more restructuring costs. this is one of the first clean quarters for barclays. siemens shares fall as they

miss expectations on the top line it reports a rise in orders but warns of continued challenges in the oil and gas business >> we delivered an uneventful quarter. we were proud of order intake, 21% ahead of the same quarter last year. i think the future looks good. the fed upgrades its view on the u.s. economy confirming expectations for two more hikes this year. the boe is seen to raise to the highest level since the financial crisis. president trump ramps up the trade war and proposes to more than double tariffs on imports from china hello. welcome to "street signs" on

what is another super thursday for earnings plenty of corporate reports to bring to you and all those details. let's give you a look at the stoxx 600. it is off 0.5% this despite some weakness we've been tracking in asia. a bit of a weak lead from wall street with the nasdaq bucking the trend there, largely thanks to apple overall we are slightly under pressure in the european session. let's give you the view on the markets one by one ftse 100 is off 0.6% the dax is trailing on the session. it's lower by 1.3% the cac 40 is off 0.4% the ftse mib is off 0.9% looking at sectors, this with an eye towards earnings once again. basic resources on the back foot lower by 1.9%. weakness in rio tinto shares, once again after their results yesterday. autos, some key numbers here overall the sector trailing by

1.6% look at banks. banks overall lower by 0.9%. i already did mention that's what happening in the asian market space you can see the red on the screen there for yourself. off 1% the shanghai composite closing lower by 2%. the australian market lower by 0.6% the hang seng off 2.2% some of the big bank earnings we've been following, and barclays posted a 188% rise in second quarter retax profit the british bank also announced a higher than expected interim dividend of 2.5 pence per share. past results did not appear in the latest numbers jes staley says the bank is well

positioned for the future. >> we're getting prepared for the brexit negotiations, in order to continue to do our business in europe that we do today. we have strength in our bank subsidiary in dublin we'll be relicensing our branches across europe, from branches of the british bank to branch branches of our irish bank you cited 40 in frankfurt, that's about right there will be increase in our staff in dublin. but it's not of the numbers or scale that will in any way question our view that london will remain a financial center for europe elsewhere societe generale rebounded in the second quarter. the bank reported a beat on the top and bottom lines net income rose 8.6%, strength in its international units did offset continued weakness in its domestic market business

the french bank also highlighted that it will by commerzbank's equities market for an unspecified amount joumanna is in paris you've been speaking to the deputy ceo over at socgen. did you get more details on what this deal will look like >> i definitely raised that question it was one of the highlights of the quarter for societe generale before we get to that, i want to give a broad overview of the group revenues as a total. if you break it down, 70% of their group net income now comes from their retail business when theytalk about their retail business, talking about their domestic retail business in france and internationally. if you look at that, they're facing a lot of headwinds because of the low interest rate environment and the sluggish refinancing activity we're seeing domestically.

a good part of the growth they're exhibiting is coming from international markets like russia, africa, central eastern europe so if you look at it, the ifs business is up for the first half of the year to the tune of about 5% vers where it was a year ago the domestic business is down 1% or so. so then the question is how can you generate growth in this environment. what you have do in an environment where there's the headwinds from low interest rates, a push to invest in technology the answer is simple, you either have to rely more on your fee generating business or rely on acquisitions that's where the acquisition of the commerzbank equities derivatives business comes into play it's complimentary to their markets business for them and the way societe generale see it, it's an opportunity for them to get exposure to different markets and specifically germany

i sat down with the deputy ceo yesterday and asked about the rational for the deal and when we can expect to see earnings start being released on the back of this acquisition. >> we signed an agreement with commerzbank and we expect the closing after the different authorizations we need to have from the regulators, different authorities, could occur by the end of this year then the integration of the teams and the i.t. systems will take 18 months so you will have the integration, at the end of this integration process, the positive impact is expected to be around 150 million euros, but this still is really on a strategy perspective interesting. it will strengthen our equity derivative franchise, and we are complimenting our geographical center and we will become the leading

player in germany and strengthen our different areas in europe and asia it's a complimentary deal, which is relative in terms of generating equity. >> you have not released details on how much the cost of the acquisition was. can i ask you whether or not the disposals you're making in other parts of the bank, so talking about specifically selling the bulgarian unit and also the belgian private banking unit, is that coincidental given you're also acquiring anc as well >> we announced in our plan that 5% of the capital allocation could be divested, which represents 50 to 60 basis points we also announced we could do some acquisitions to strengthen, but globally speaking we will

generate more capital through divestiture. we are still in a mood to acquire. so globally speaking you're right, it's capital management, but by the end of this process we will generate more capital. >> could we see more acquisitions over the next couple of years in line with your transformation plan >> yes, but expect it to be limited. >> those would be in areas where you would consider yourself to be less competitivcompetitive? >> the strategy we have is to strengthen our existing strength if we think the synergies with the rest of the business is more accommodative for divestment >> do you think large-scale acquisitions or large-scale m&a activity is in sights or should happen in the european banking system >> depending on the horizon

you're looking at. if you take a long-term view and long-term horizon, this type of scenario could occur in the european industry. today we consider that the competiti competition -- sorry, but may favor this time of cross-merger. so we may see domestic consolidation in some countries. in our view, in my view, the cross border merger process we will not stop soon >> that was the deputy ceo there, talking about the rational for acquiring the emc unit of commerzbank. he said as of 2020 investors should expect that deal to be accreditive for their business they still need full approval. that should happen the second half of the year he also said it would not be unusual or uncanny of us to expect them to do further acquisitions or bolt-ones in s

the future he said the goal is to build on existing strength and find areas that create natural synergies with the rest of the business so they continue to build market share. they also announced they're looking to divest about 5% of noncore assets they're selling their hungary business and some of their private banking business so it's a refocusing back into the core strategy as part of this transformation plan one is expanding the presence in germany. generally, as i started off talking about earlier, european banks in general are facing headwinds because of this low interest rate environment. one way they can continue to grow is by gaining more market share and by these types of bolt-on acquisitions as was high

loigted highlighted to us. >> thank you very much for more i'm pleased to say we're joined by tobey gibb from fidelity international thank you for joining us joumanna was touching on some of the macro headwinds today. on the headline numbers, socgen beat, but there seems to be a reluctance to buy into this story. is that reluctance justified >> sentiment is pretty depressed. we've seen under-performance this year of around 15% of the european banking sector. i think that's mainly due to some of the macro mick dat econa points which have been weak and political uncertainty in italy, uk and spain >> when we look at socgen specifically, some traders

expressed concerns about the french retail environment. when you consider the growth outlook going forward, disappointing gdp data recently, but this growth story should be improving, shouldn't it? >> that's right. i think it is. we've seen a bit of weakness in the retail bank, elsewhere it's been strong. banking has been okay. investment banking has been strong you know, the pick up in volatility that we've seen has led to quite a pick up in trading revenues that's been also seen in barclaysnumbers today. >> i had the opportunity to speak to a couple manger ceos, and they say this is overblown could this be the turn around in sentiment for the banking sector >> when you look at the italian bank, many of which are trading

on sub book value, you have some banks that are not just focused on uk banking, but they also have big asset management businesses, which are fee-based rather than spread-based revenues so they can profit even in a low-rate environment. >> you talk about valuations for banks in italy, no near-term interest rate rises, whatever the situation epnds up being, what impact should that have >> with rates as low as they are, and staying low, that sort of pick up in net interest margins from rates is unlikely to happen in the near-term so i think the focus for these banks and we heard there has been on cost cutting, refocused on businesses so that's what they've been doing, but also focusing on fee-based revenues

asset management businesses, or corporate and investment banking. >> if we shift foe kiss to tcuso the bank of england, what do you make of the uk bankresults we had? you talked about barclays, but lloyds, too. anything that gives encouragement? >> both have been pretty strong. lloyds yesterday had strong results. they did provision another 460 million claims, still some risk anything more. so the core banks are doing well barclays particularly, the inve investment bank is doing well. both ceos cited risk around brexit and politics. >> interesting you talk about barclays investment bank, they

have come under activist pressure to change or reorient activities away from the investment banking would that be the wrong move >> barclays has undergone a big restructure. so they've spun off noncore businesses, whether it's african businesses, non-core european businesses now they are much more focused on the core uk bank that the credit card and the investment bank i think the results today sort of show that that process is very much going well and it's probably a reasonable strategy these seem to be strong and clean results from barclays. >> tobey, thank you very much for that tony gibb at fidelity international. ing posted better than expected second quarter profits, but total income slipped on negative currency effects and a

weak performance at its financial markets unit the lender lets said provisions for bad loans fell over the past yea year >> commercially we had a very good quarter you mentioned already the increase in the amount of clients. our target is to have our primary clients growing currently 12 million, they should be 14 million two years from now our total client base is now at 38 million we've seen growth in poland, australia. we've seen growth in spain in germany so in a number of countries. in that sense it's quite wide. >> let's check on shares of amundi which have been trading higher thanks to new client money in the main fund the stock is higher by 7.5%. europe's biggest asset manager

posted a profit and an increase of 14.3% the chief executive says the company still has potential for significant future growth. >> the london stock exchange says it is implementing contingency plans for a hard brexit it warned a no-deal departure could adversely affect business, financial conditions and cash flow i heard this story before. the lse reported earnings today beating first half forecasts if you have views on bank earnings on europe don't hesitate for a second to get in touch with us. @streetsignscnbc coming up, ronaldo's transfer to juventus could spark a domino effect in summer

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rose 2% in the third quarter and came in just ahead of expectations revenues fell short of analyst estimates. they also laid out a new strategy has aims to cut divisions and improve profitability. the ceo said his firm needed an overhaul >> it is important that we put our business into an entrepreneurial focus. the business has proven they are able to run well this is now different than it used to be when i took over in 2013 now is the time to give them more focus, more entrepreneurial freedom and expect a payback in incremental growth and significant improvement of our bottom line. >> a check on hugo boss. shares are lower by 5% after second quarter core earnings did fall the fashion house reported a sharp rise in sales thanks to

strong demand in europe and asia hugo boss also posted slightly higher an expected revenues for the period third quarter operating profit at metro fell 38% the firm blamed its faltering business in russia and the weak performance of hyper markets in germany. the retailer confirmed its outlook for the year and said sales in russia were not falling as fast as they had been >> and aviva saw a dip in profits. they blamed weather and challenging market conditions in canada the term safirm said itsa surplus should help its strength and it remains on the lookout for possible acquisitions. axa's revenue was down compared to the same period last

year the ceo told cnbc exclusively that these one-off charges were necessary for the company to deliver on its new strategy. >> last year we decided tom strategic moves, and this year we are in the process of implementing them. that's why you have seen those exceptional charges. one of them was clearly the ipo of the u.s. business the other was the acquisition o exel we want to shift our group profile from a profile exposed from financial risk to a profile exposed to technical risk. well, cristiano ronaldo's presence at juventus is already having an impact on other members of his team. it could be about to spark a potential domino effect of summer transfer activity among europe's top soccer clubs. that's according to adam reed,

our sports reporter. higuain is moving to make space for the big signing of mr. ronaldo? >> i think that's it i think higuain may have recognized that there won't be a place for him in the juventus team next year he has arrived in ac milan ahead of that medical. it will be a huge coup for ac milan. they were the subject of a takeover from the u.s. hege fund elliott management just last month. so, having a player of his quality in their side, so soon after making that deal before the start of the season is big news for them. juventus it was two seasons ago they were spending 90 million euros themselves on bringing higuain from napoli. he repaid them with 55 goals in 105 appearance that's better than 1 in 2. >> he doesn't want to spend tile on the bench >> he doesn't want to spend time on the bench

he's 30. he wants to play a sign of the fact that he has such a desire to play coming out of the fact he's now giving up the opportunity to play in the champions league because milan only qualified for the europe secondary competition, the europa league this year. so the fact that milan are a sleeping giant in european football, they won the european cup seven times, but nothing for a long time. nothing since 2007 milan are on the way back up they want to challenge juventus. juventus may be a bit cocky, because four years in a row they won the cup double, and they're willing to let such a player go to a rival >> where are we when it comes to the spend in this transfer window >> it's been slightly subdued at the moment the premiere league, their window shuts in a week's time.

they decided to do that to have more settled squads. that's when it comes to buying players. they can still sell players for another couple weeks as europe's top leagues carry on their spending alisson is the most expensive player to come into the mpremiee league a world record fee chelsea, manchester city, manchester united, not a lot of business so far. and you would expect in a week a flurry of activity that higuain move could be one sign that there could be a domino effect leading to the premiere league. they have about 500 million pounds to go to break the record from last summer >> you'll keep us on top of it all. adam, appreciate it. thanks for joining us. coming up, stick or twist. we'll look ahead to super thursday and a potentially defining moment for the bank of england. you might take something for your heart... or joints. but do you take something for your brain.

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posting a 188% rise in pretax profit in the second quarter as the bank banishes the legal costs that have weighed it down in recent years. >> we're really clear of all the major impediments. there's no major litigation issue hanging over us. there's no more cost to achieve. no more noncore. there's no more restructuring costs. this is one of the first clean quarters for barclays. siemens shares fall as they miss expectations on the top line it reports a rise in orders but warns of continued challenges in the oil and gas business >> we delivered an uneventful quarter. we were proud of order intake, 21% ahead of the same quarter last year. i think the future looks good. altice gains customers, but average revenue per customer

misses expectations. the fed upgrades its view on the u.s. economy confirming expectations for two more hikes this year. the boe is seen to raise to the highest level since the financial crisis. welcome back to "street signs. we want to bring you uk construction data. it's strong for the uk construction sector. in fact, expanding at the fastest rate in 14months the data has been helped by an increase in house building the biggest increase in house building since the end of 2015 overall we are looking at that construction pmi for july at 55.8 that compares to an expectation here, better than expected, poll was looking for 52.8 so a reading of 55.8, boosted by

the fast house building, but also the fastest job creation since 2015 good data. we're not seeing sterling move on that. in fact, sterling weaker against the dollar at 1.3079 it's off against the greenback ahead of that boe meeting. overall solid construction date twa for t -- data for the uk. >> this will make that decision that much more interesting at the bank of england today. >> the growth outlook today and the inflation outlook will be crucial. some disappointing inflation data we've had, many said the central bank may look through this because other data points have been increasing compared to the first quarter. so plenty of time to talk about that later yesterday the fed did not really make news steady as she goes pointing to

september action some encouraging lines from the fed on the u.s. economy, in addition to strong jobs numbers. we still have these trade concerns between the u.s. and china hanging over markets as well you are looking at the euro weaker against the greenback today. let's look at the equities space. we are seeing negative moves across the region. a big day for earnings super thursday, in fact. a mixed bag, but overall we are seeing equities move lower the xetra dax is off 1.3%. the german market is off 1.04% socgen stock not moving higher today. the ftse mib is off 1% as well let's bring you another check on bond yields. overnight we did see the u.s. ten-year cross above that 3% level where it still sits. the yields ticking slightly higher the encouraging private sector

payroll figure comes before the non-farm numbers due tomorrow. you're looking a t the ten-year bund yield, slightly higher. keep an eye on jjb, some action on bond purchases. that was not expected from the bank of japan. looking at the yield slightly higher let's check on u.s. futures. a somewhat disappointing day for the dow and s&p 500. the dow bucked the trend in large part thanks to a record for apple shares today we see a weaker implied open the dow jones with an implied open of 112 points the nasdaq called lower by 39 points the s&p 500 with an implied open of just about 12.4 let's give you a check on continental shares, which have been trading lower after the auto supplier said that new

anti-pollution tests are likely to negatively impact third quarter results. the firm does expect a strong fourth quarter and confirmed sales guidance for the year. the cfo also expressed concern over the impact of a potential rise in trade tariffs between the u.s. and china >> that would be very difficult for the automotive industry overall. product, which we are doing on average crossing four times the border until finally reaching our customer there are certain production steps, in those areas where they have to be done and where they are based to be done if we disrupt these with additional tariffs, this is a long-time process to adapt production and other facilities to this process, and in the end it will make the product more expensive for the end consumer and it will be bad for all of

us >> bmw backed its full-year guidance after posting a smaller than expected decline in second quarter profit the carmaker blamed higher spending on its development of electric and autonomous cars bmw expects to achieve slightly higher deliveries and revenues for 2018 shares in tesla accelerated after hours following upbeat earnings forecasts tesla now expects to produce model 3 sedan at a profit. it budgeted as much as 55,000 model 3s next quarter. the firm pumped the brakes on cash burn during the second quarter, bringing negative free cash flow down to 7$740 million down from a billion last quarte quarter. >> i feel like i would like to

apologize. i think there's no excuse for bad manners, and there's no reasons for it, i got no sleep you know, i've been working sort of hard. 110 hours, 120 hour weeks. my apologies for not being polite on the prior call >> for more, i'm pleased to say we're joined by daniel klear pleasure to have you on the program. an apology seems to have done some favors for elon musk yesterday. i want to get your thoughts on the broader electric vehicle space. elon musk has been hinting about it's no secret the struggling they have been doing to mass produce electric cars, the scale and sheer development here given that you take a close view to where we are in the progress of electric vehicle penetration, where do you think we are in the

timeline >> thank you for having me important to take a quick step back we all know we have the paris agreement. government are clearly behind this if you look at current sales, less than 5% of new sales are actually electric. if you look at the stock, less than 1% is electric. we expect this to go 20% of new sales by 2030, and 50% will be hybrid or electric if you look at what a carmaker is looking at over the next few decades, most sales will be electric or part electric. >> we see this constant tug and pull between the automakers and regulators several companies this reporting season have flagged the new rules coming out for the lab tests on emissions rules in

europe as a headwind and that this is a challenge. do you think they were behind the game for too long and now they're playing catch up >> i think the regulator has an interesting role to play two things are happening one is they're setting a timeline for when the internal combustion engine will come to an end at the same time they're increasing standards on internal combustion engine to improve on what we still sell as a majority automakers have to deal with both sides invest into better engines but also invest into a new technology around electric we heard from bmw that they saw increased development costs for electric vehicles. how can they maintain profit margins and also invest in technology that may be profitable >> i think governments do have a

role to play china is probably a good case study for this china sees electric vehicles as a technology that they can essentially lead, the same way they've done in other renewables china is active with an ambition where they want to have two global leading oems by 2025. they want to sell 50 million electric vehicles by 2030. and they're essentially creating incentives, financial incentives for people to buy more cars and increase market capacity but also restricting significantly the amount of internal combustion engine cars. most of the activity in china is happening in the six large cities where at the moment it's impossible to get a license plate for a traditional car. >> i wanted to ask about the government role in the secondary side of this, which is the financing of this. is there a role the government can play in making it easier for lenders to lend mone

kinds of companies doing this? do you think governments should be allowing capital requirements for those seeking to borrow money for electric vehicle development? >> there's a lot of activity in the uk, in europe, particularly in asia where this is a big topic. i think you have a mix of activities in general we believe that there is enough financial capacity in the market to do this. we also know a lot of these business models are financial viable governments can help in early stage. technologies not fully proven yet. there is an element of bringing more standardization into the green financial market and supporting it with little incentives you see it in singapore and hong kong where people have started to issue grants for people who want to bring things to the market i think it's important for this market to work >> when you talk about the model

china pursued in supporting electric vehicle development, i can't help but wonder if this is a way to boost domestic carmakers. we knows there an agenda here to have those carmakers eventually become bigger exporters and brands around the world. could electrification be a crucial part of that strategy? we've already seen the government give those domesticmakers support >> you're right. china looks at these technologies as a way to leapfrog in a way. you see it in solar which was eventually developed in germany and europe, now 60% of solar panels is happening in china more than 50% of global production of electric vehicles is already chinese, and likely you will see some large companies coming out of china who will be the big carmakers of the future >> if you could put a team line on when you think i.c.e.s will

be phased out. >> you know we're talking between 20 po a30 and 2040, but is new sales the stock of current combustion engine cars will be around for a long time. >> daniel, thank you very much for joining us today >> thank you for more on why tesla's elo musk says its custom autonomous chip is almost ready, go to cnbc.com. altice shares have plummeted to the bottom of the stoxx 600 following a disappointing revenue trend in france. the ceo says he expected revenue and margins to fall in 2018. the company is in the midst of a massive restructuring effort after a poor commercial performance in france last year. apple has revealed a new price threshold to hit a trillion dollars in market value

as it edges closer to that record market cap. the new outstanding share cap is under 5 billion, that pushes the share price to reach 1 trillion valuation to $207. apple shares gained earlier this week after the company released strong quarterly earnings. >> we need a countdown clock for that. the white house has confirmed that it is mulling further tariffs against china. president trump asked robert lighthizer to consider raising tariffs on 2$200 billion of chinese goods to 25% in a statement lighthizer said the decision was intended to encourage china to change its harmful policies and behavior. kobe steele shares plunged

after a drop in net profit for the first quarter. let's bring in makiko utsuda from the nikkei with more. >> yes japan's third largest steelemaker had been indicted last month for falsifying product quality data to meet client specifications. kobe steele ed admitted to fabricating such things. it said the data tampering scandal slashed profits by $22 million due to compensation payments and legal fees. on top of that a glitch in the steel production facility led to lower output and sales of aluminum and copper slumped. on the back of the report, kobe shares plunged nearly 10% today. on the brighter side, kobe said

demand for construction machinery was strong especially for china and projected sales for the full-year were reviewed upward to an 8% growth, higher than its original forecast the firm added that it had not suffered any impact from the u.s. tariffs on steel imports so far. back to you. >> thank you coming up stick or twist we'll look ahead to super thursday and a potentially defining moment for the bank of england. stay with us jimmy's gotten used to his whole room smelling like sweaty odors. yup, he's gone noseblind. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric. with up to twice the fresh scent power, you'll want to try it...

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welcome back to "street signs. the u.s. dollar is holding on to gains after the fed kept rates on hold. the central bank also upgraded its assessment of the u.s. economy. the central bank repeated that the labor market has continued to strengthen, but added that economic activity has been rising at a strong rate. that was a bit more bullish view than the solid growth described in its june statement suggesting the fed remains on course for a rate hike in september.

the bank of england is widely tipped to raise rates for only the second time since the financial crisis members are expected to vote in favor of hiking the bank rate to 0.7 0.75%, however uncertainty surrounding brexit and global trade could be a problem for governor mark carney jes staley discussed the rising interest rates this morning on cnbc >> rising interest rates are constructive for banks we also need to balance what we do for our consumers in terms of bassi in passing those rates on we think rising interest rates, to the extent they reflect a growing economy are positive for the uk and u.s we have a high net interest margin as a bank it's been coming down slightly mostly because we've been changing the mix of our consumer

credit portfolio from unsecured from the credit card to secured through the mortgage business. we like the profitability of the bank in the uk we had double digit returns of 18%. profitable business. and if interest rates do move, that will be constructive for the financial industry >> jes staley speaking earlier this morning we're joined by andrew, you're not backing brexit, you're backing the british rail system to get in here. appreciate you making it in. in your mind should the decision today be predicated more on the positive data we've seen recently or more on the need to return to what some people call normality? >> i think both are supportive of raising interest rates today. i think the longer-term issue is the most significant over a period of time the bank of england needs to get rates up to at least 2%

the short-term indicators don't argue against that some are positive. some are more mixed. this is the mode that the mpc should be in they should be following the long-term strategy of raising interest rates and then holding back from that if there's negative news. >> when willem talks about returning to normality what do you think that looks like? we are expected the bank of england to talk about this eke qual l equilibrium rate >> i thought we would move to higher level of interest rates in two stages. the first is to get to 2% to 3%. that's slightly above the inflation target, but it at least means savers are getting something. then central banks need to take stock and see how the economy is responding to that hopefully there's an opportunity

to move rates up to 3%, 4% over a number of years. >> when you talk about savers here, the incentive structure that the bank of england policy has created, what about on the borrowing side do you think that this policy has gone on for too long and created excessive borrowing? >> i think there's some evidence of that. we saw figures for the household sector in 2017, which showed that borrowing less saving was at the highest level since 1998. and we were in a rip roaring consumer boom in 1998. so there are signs that consumers and households are gearing up on the basis of these low interest rates that's an important signal to start taking away monetary stimulus >> do you think it's come too late for consumers this decision >> i think a few years ago there were good opportunities to nudge rates up i know the bank has had a difficult time during the brexit

episode. even then i think it was a mistake for them to cut rates, which made the task ofgetting them back on a rising curve more difficult. so i think we should have been following much more closely the line of the fed, which started in 2015 and gradually move interest rates up from then. >> is there any argument for not raising rates and do you have concerns that if they don't take this opportunity today, that because of brexit, because of the negotiations, because of timeline it will get difficult to do so later on? >> are always uncertainties. that's the job of the mpc to look through uncertainties brexit is a longer term issue and a structural issue it can't be dealt with by monetary policy alone. i don't think brexit is an argument against doing what's right in terms of the long-term strategy for emerging policy in the uk >> will it be the last rate hike, assuming we get it today, because the market overwhelmingly expects it, will it be the last hike until brexit then >> there may be an opportunity

later this year. depends on what the short-term indicators say most likely the bank will wait until the first half of next year, whether that's before or after brexit, we don't know. but sort of a rate rise every 3 to 6 months is probably what the mpcs should be targeting >> thank you very much >> if you want more details on this, tune in from 11:55 central european time for our bank of england special. u.s. futures pointing to a weaker open on wall street that's it for today's show >> "worldwide exchange" is up next this isn't just any moving day.

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