hello. welcome to "street signs." >> these are your headlines this morning from london. a near 3% spike in its share price on thursday saw apple become the first u.s. company to hit a $1 trillion market cap beating out amazon and alphabet. rbs shares trade higher after the bank announces its first dif deposition vidend in e >> i do think from here we'll

build nicely we do expect payouts to increase significantly going into 2019 and 2020 credit agricole and natixis send shares higher. and the cfo of swiss rereports a major miss >> last year the three hurricanes together, a one in ten-year event, not one in 100 year event and we see repetition for these losses welcome to "street signs." happy friday to everyone it's been a busy week.

fresh data out for the eurozone. july pmi figures you are looking at a reading of 54.3 that was in line with flash estimates slightly lower than in june on services the reading coming in at 54.2 that is a touch below the flash reading of 54.4. overall in july the final services new pmi at 54.1 the news is that the euro business growth has slowed in july but it's the optimism that is fading business optimism at a 20-month low. they're saying it was hampered by a drop in new orders. interesting here when it comes to that composite pmi for july overall 54.3 number is in line, but slowdowns and a dent in optimism let's give you a look at what's

going on in the european markets. just after an hour of trade in europe, you're looking at green arrows for the stoxx 600 mixed bag again. when it comes to the banks, that's lending support to equities overall looking at the stoxx 600 higher by just about 0.3% positive lead for the s&p and nasdaq with apple hitting the 1 trillion mark. looking at the bourses, looking at the ftse 100, it's pushing higher by 0.4% the xetra dax is higher by 0.3%. the cac 40 is also in positive territory. the ftse mib is the drag today you are looking here at the sector breakdown banks just barely in positive territory. keep an eye on tech, it's moving higher after the performance in

apple overnight. want to give you more details on the big earnings movers, rbs among them they opened near the top of the stoxx 600 after announcing their first dividend in a decade they plan to pay a dividend of it pence per share, subject to a $5 billion settlement with the u.s. department of justice earlier i had the chance to speak with the cfo of rbs, i asked whether he was happy with the second quarter result. >> we're pretty pleased with the results today. another good six months of progress just under a billion pounds of profits. we have kept things stable in the retail bank despite some tough conditions out there overall pleased with the results. >> the big milestone today is the intention to pay a dividend of 2 pence here.

i understand that is conditional on closing the do jshj issue, we do you go from here? >> this is a massive event for the organization the last time we paid a dividend is 2007. i think it's a positive sign we have to get the department of justice agreement signed once that's signed, we declared today a key dividend and from here it will build nicely we expect payouts to increase significantly going into 2019 and 2020 we built a business model that's cash generative, and our quarter 1 is at 16% compared to the target of 13 >> when do you expect to be signed, sealed, finalized with the doj? >> we're working hard to get it

done >> let's talk more about the costs. you did make some room on costs, bringing it down to 133 million pounds but you have big ptargets for 2020 how do you intend to get from here to there? >> we always said to 18 would be a slower rate of cost takeout. we significantly ramped up investment and innovation spend. we have a lot of work to get to our 2020 target. sub 15% cost ratio if you strip out the rnbs provisioning we took in the first half, we're sitting at a 58% cost income ratio. we have to take out over a billion pounds of costs from here we know what we need to do we're committed to getting it done >> will that include personnel headcount changes? >> we don't like talking about headcount reduction until we had a chance to talk to our own people fundamentally what's going on in our business, it's a profound

shift away from everything physical to everything digital all of our physical distribution is seeing about a 10% compound decline year-on-year we're seeing about a 20 plus percent growth in anything mobile and digital so really it's dramatic change going on and how we're going about business >> does that mean further branch closures would be inevitable >> no, we committed today to no further branch closures before 2020 we do want to pause. we want to understand what customer behavior will be. i think over the long-term we are seeing more and more customers migrate to mobile. we passed 6 million customers up on mobile. that started for us in 2011. >> we are joined by jean-lu jean-luc carotti and caroline

simmons. for me, the big takeaway from rbs is finally we're moving beyond that crisis era symbolic with this dividend, would you say? >> absolutely. i want to start with what i see on the street. up until six months ago, the main word was litigation now it's being substituted by the word innovation. i believe it's like a major change in the tone, major change in expectations of what banks are trying to do and results are showing good things revenue-wise, they're up, costs are under control. and provision for credit losses are down, which means the bottom line will benefit. >> i agree there is a change in tone, more optimism around innovation, at the same time there is caution around brexit speaking to the cfo at rbs, he

said we are concerned about the growth impacts if brexit doesn't go the way the government wants to see it go is this a real concern are you seeing it in discount prices attributed to uk banking stocks >> i'd say that brexit is a major event, absolutely. i take a look at what happens in the bank of england. interest rates have been raised, which means there is a confidence that the economy can sustain a potential major event like brexit. even if you look at the comments of the bank of england, he said of course the economy slowed down it's not further slowing down. of course banks are cyclical businesses from a pricing perspective, prices are up because of the rate hike. from a volume perspective, the economy is not further slowing down so in the near future i would expect positive results. i'm not the government so i

wouldn't know how this impacts the brexit decision. >> seems to ab common thread, we can't make a prognosis because we don't know how the government will deal with this or the europeans will respond just seeing that monte dei paschi is trading down significantly this morning i'm seeing they missed their profit forecast, they are down to 100 million euros versus 108 last year. missing on estimates as well this is one of the banks in italy that has been under pressure italian banking sector, using that as a jump off point, is it recovering >> it's a big question i've seen results since the crisis that triggered out last year i wouldn't say we're out of the picture.

kr italian banks are well known for having a strong balance of italian treasury bonds so what happens to the treasury bonds has an impact on the banks. so there is a strong political connection on what's happening in italy when it comes to the new financial budgeting for next year so the markets are actually waiting to see, okay, what is this government doing? since the italian state has a tremendously high debt to gdp ratio, the average maturity of the bonds is long. it's more than seven years i wouldn't be concerned about the government or the state itself, but it's more on the impact this will have on the italian banks that has to be closely monitored. i would say they've done a lot of things. they securitized a lot of nonperforming loans. are we completely perfect? i don't think it's the time.

>> now that we had a decent round of bank earnings in europe, is there anything in the results that changed your view on the sector? >> the areas that we need to keep focused on, in the uk market, the mortgage lending and the competition occurring there. it's still profitable for the banks but getting more competitive. >> clearly the costs are something we need to keep an eye on a few banks have said they had cost overrighdes, and then ther' profitability which has been improving over time, but we're a long way behind where the u.s. is and we trade at a big discount because of that. >> i want to ask more broadly about europe and the growth story. we're more than halfway through the earnings season. should your clients, should investors be happy with what's happening in europe on the corporate front? >> i think it's disappointing on the continental europe side. about 40% of companies are beating expectations, which is

below where they normally are. it's closer to 55% in europe the earnings growth numbers, about 5% that's helped by energy. we still have these year-on-year oil price increases. it's not particularly exciting >> when you talk about playing catch up with what's taking place in the u.s. banking sector, is that an unlikery outcome at this stage? we look at the strong growth taking place in the u.s. on top of what's happening with fed tightening, it seems this gap will stay here >> that's the key, how do you unlock that value differential you need rates to be higher and you need to increase profitability. >> do you have a preferred play in the sector?

>> i can't talk about specific banks, but in my view, in the next few years, who wins is the one who is able to tackle open banking better than the others, that will drive market share that will give the possibility to banks to expand the borders of products and go to serve customers where the need arises. banking is not a primary need. you don't need a mortgage, you need a house as a bank, i'm able to tackle open banking, be able to advertise, promote my products where the need is, that's going to drive the results i don't have a favorite bank i would closely monitor who is innovating in open banking better than the others that would be my favorite bank >> thank you very much credit agricole shares are higher after posting better than expected net profit for the

second quarter the lender reported strong performances at its italian unit, investment bank and asset management businesses. revenue rose 10% almost. and net profit allianz has beaten expectations coming in at 1.9 billion euros for the second quarter, down 5% from a year ago. they are on track to meet the to 18 targe 18 -- 2018 target. >> we had some volatility, especially in the second quarter, that's because of uncertainty around interest rates. the point is when you look at just june and july flows are back to positive i think we went through sort of a slower momentum in the second quarter, but now we see stability coming back up let's check on swiss

re shares which are under pressure after a 17% fall in first half net profit. accounting changes cut into the earnings which would otherwise have been flat gross premiums rose 8% they announced they would explore a potential ipo of reassure joumanna bercetche is in zurich this morning you have been trains, planes, automobiles for this earnings season what can you tell us about the swiss re results >> exactly today it looks like the market is reacting adversely to the swiss re announcement, even adjusting for that accounting change earnings would have come in just flat from a year ago investors are asking where will the growth come from for a reinsurer like this. a couple months ago there was the prospect of a deal with softbank

it seems like that deal is mostly dead for the time being a bigger question is what does it mean for the fundamental business and what will drive revenues in the future i sat down with the cfo and i asked about the prospects for swiss re >> we think we have a solid result, and in particular the quality of those earnings is higher than last year. less dependent on realized gains in the investment portfolio and a stronger performance in our core underwriting business >> i'm wondering how are you going to fill in the gap given that it comprises such a big part of the division >> reassure is in the life and capital division

we are growing our businesses there strongly, you can see tha growth coming through in the first half of 2018 with 1.8 billion of premiums for the first half of the year very strong growth we expect to continue to build these businesses out for reassure we announced preparation for the ipo. we expect the ipo to be pulled off in 2019. >> a couple of bright spots to pick up from there, namely gross premiums were up 8% on the back of the life and health business and on the back of the renegotiation of treaties they've done in the americas last year was a heavy rear in terms of hurricanes, costly for the reinsurance industry, on the back of that they gave pricing capabilities back to the reinsurance community. also their combined ratio in the property and casualty unit was down to 92.9%, down from 97.4 a

year ago that's a measure of the financial health of that unit as well as you heard, i think the focus will be on selling non-core businesses we heard they're selling this reassure business uk insurance business they sold 5% to a japanese insurer. and also very much focused on the science of climate change and today they also announced their reaffirment to 100% of their portfolios being esg compliant. back to you. if you have views yourself as a viewer on the swiss re numbers, get in touch on twitter. @streetsignscnbc you can also tweet either of directly apple wins the race to $1

trillion market value. more on that after this break. we all want to know about the new thing.

you know, the new, new thing. with xfinity's retail stores, you can now see the latest. want to test drive the latest devices? be our guest. want to save on mobile? just ask. want to demo the latest innovations and technology? do it here. come see how we're making things simple, easy and awesome. plus, come in today and ask about xfinity mobile. a new kind of wireless network designed to save you money. visit your local xfinity store today.

apple raced to its trillion dollar valuation ahead of amazon and google parent company alphabet strong third quarter results helped push the california tech giant's share price past that milestone. to talk about this we have caroline simmons with us and arjun kharpal also joins us in the studio arjun, it's just a number ultimately what happens next? >> it's just a number. i want to say earlier this week when we were on "squawk box," i did say apple would be the first trillion dollar company. >> did you put money on it >> no. the key here is that it is just a number but it drives down to the heart of the business model of apple which has gotten predictable that's why it's been so loved by the market

it's got a solid iphone sales. yes, they're not growing at 10%, 15%, but they're growing at 1%, 2%, 3% that's enough in this slowing market for hardware. on top of that you have the services revenue that continues to drive performance they have a huge user base over 1 billion iphones in the market so that's crucial. on top of that, yes, they have not had a mega killer next big iphone product, but the likes of the apple watch, air pods, they have done well that category grew significantly. so some of these other accessories are doing well all of that together, that's why you have seen apple hit that trillion dollar evaluation >> along with that average selling price which pleased investors. caroline, when arjun talks about the services side at apple doing well, talking about apple wanting to get more and more into software. you like the software sector in tech >> that's right.

it's our preferred area. within smartphones themselves, there are some things to be careful about. the product cycles seem to be lengthening. the price points are meeting a bit of resistance. so, yeah software is our prepared area. if companies can get more focused on that, we like it. also advertising spend which is moving more from traditional media into the online space. >> when we talk about the average selling price for the phones, they're doing well on the high end you talk about the fact it's so highly competitive in the smartphone market. is it the middle market to lower end where the price competition will increase? >> that's where samsung has already seen the big effects, when you have huawei moving into the market with mid market prices apple is probably the only one that can get away with successfully selling a $1,000 phone. that's why you saw the average selling prices tick up

it's not just the hardware but the luxury res senspresence andd feel >> caroline, we've seen this over the last few years, the impressive performance by the tech sector in the u.s does there come a time where investors should think about taking money off the table >> we are neutral on tech now. we were overweight for a long time some of the amazing growth now is in the price. the tech sector trades 10%, 13% premium to the wider markets so it does have higher growth, but in the next couple quarters it is not benefiting from some other things like commodity prices and u.s. tax cuts >> all right we have to leave it there. caroline, thank you for your time today arjun, thank you as always still to come on the show, it is friday, call it tthe dring

buddies, heineken looks to grow its share in the beer market stay with us

welcome back to "street signs. >> these are your headlines. a near 3% spike in its share price on thursday saw apple become the first u.s. company to hit a $1 trillion market cap beating out amazon and alphabet. rbs shares trade higher after the bank announces its first dividend in a decade the cfo tells cnbc that payouts will continue in the coming months >> i do think from here we'll build nicely we do expect payouts to increase significantly going into 2019 and 2020 credit agricole and natixis

beat second quarter profit estimates. shares in both french lenders move higher. >> iag shares slump as they miss forecasts after disruption from an air traffic control strike weighs on earnings >> the uk july services pmi data is crossing the wires. the estimate was 54.7. it's actually come in at 53.5. below that estimate. that's against the june number for the month of 55.1. this is a three-month low. >> we are watching sterling weaken against the greenback, now below that 1.30 level. during mark carney's testimony

yesterday sterling did weaken after that decision to raise rates. the assumption there was a gradual, limited, dovish hike, if you will. it's interesting to see with this weaker data what happens. moving on, the broader fx curve, we're keeping an eye on the dollar ahead of the non-farm payrolls report. you are looking at the dollar slightly higher against the japanese currency, higher against the euro as well sterling continues to weaken against the greenback. dollar is stronger against the yuan stronger in the session by 0.3%. this certainly catches the attention of the white house let's check ten-year yields. we had seen the u.s. ten-year yield above the 3% mark. now at 2.9729.

keep an eye on italian yields. the ten-year yield moving higher for the two and five-year, moving 20 bips a lot of this over concerns about budget tensions. there seems to be a split on tacks and what the spending plan will look like in a country that already faces so much political uncertainty. switching over and looking at what is happening here in the european trading session green arrows now the ftse 100, xetra dax, french cac 40, and the ftse mib, some green on the board here. the german dax is snapping a losing streak. it is higher by 0.4% still plenty of earnings in focus. >> a look at the u.s. futures as well a mixed open by the looks of things the nasdaq is the only one

looking to open higher heineken is seeking to tap up the chinese market the company announced a 3$3.1 billion deal with china resources beer that dollar amount represents 40% stake in the hong kong-based brewer and will give heineken a strong distribution network in china. the deal will require antitrust approval from the chinese government and is expected to be completed by the end of the year to talk about this in more detail we are joined by trevor stirling he joins us now. the heineken chief executive told cnbc this week that the company was always on the lookout for acquisitions this is more of a retreat from china rather than acquisition, isn't it >> i would say it's almost like an asset swap. they have their own small loss

making completely owned business they are doing a good job from a small base, but probably wasn't going to achieve much. what they have is basically an expensive long-dated option. so they have 40% in the holding company, so they have 20% on the listed company more importantly they work together to develop the heineken brand in premium beer in china and potentially other of heineken's portfolio ab inbev has been doing much better in premium bore with the budweiser brand. >> talk about focusing on heineken brands in china, but surely this deal means they lose influence on how those brands are marketed and sold.

>> that's the critical thing what is the working arrangement. so they will clearly not wholly own the brand. so that's got doing worked out, what is the working relationship is heineken going to have an active role or just be ga gatekeepers? i suspect that heineken wouldn't have started on this process of negotiations if they didn't expect they would have an active role but we'll have to see. that's going to be thrashed out between now and the end of the year >> what does it mean for the likes of ab inbev who are trying to compete in this huge market in china for beer sales. >> at the margins they'll have a more powerful competitor if this succeeds and if heineken get the level of support they need to build the brand, that's going to be a more significant competitor on the other hand you see in other markets around the world where heineken and ab inbev

compete head to head, they are doing well brazil, mexico, actually having two brands competing at the top end of the market is good. but it will make life tougher for ab inbev >> you talk about the top of the market, but in china the margins are so challenging there >> you're right. you see that in many alcohol categories in china. massive bifurcation between vast low-end market where people are really buying on price alone and an emerging premium sector you see it in terms of the local high-end spirit. a lot of it is sold for $5 a bottle, then you have others being sold for over $200 a bottle heineken is betting that will happen in beer as well >> i wonder if it allows heineken to focus more on

high-growth markets such as southeast asia >> in their asia spapacific business, china was insignificant, cambodia was a big market for them, so that's true at one level. i expect heineken do not want to be hands off in china. we'll have to see how that evolves. you're right, at the moment china is insignificant this is an option that maybe one day it could become significant. >> trevor, thank you for joining us today appreciate your time how much do you like to spend on beer >> it's more a question that i'm forced to spend more in london >> do you like the craft labels then moving on, fiat chrysler is sticking with its plan to spin off its automotive parts unit.

the company is said to have considered offers with apollo global management and bain capital. the decision may be one of the first moves by the new ceo, mike manley, who has taken over the top job following the death of sergio marchionne. >> iag shares are slumping after posting a 6% rise in second quarter profit shares are off almost 3.9% the owner of british airways backed its full-year guidance and said they expect to deliver a rise in 2018 operating profit given current fuel prices and exchange rates the ceo says the group is not in active takeover discussions with norwegian airlines, but continues to look at the carrier. singapore airlines has been voted the world's best airline you can head to cnbc.com to find out more about its success and how it soared to the top spot.

i experienced them quite a few times. had the pleasure >> lucky you mediabanca shares are jumping after elliott has declined to comment on whether they have a stake in the bank. an italian newspaper reported that the activist investor built a 1% stake and was looking to go further. shares at william hill have fallen sharply after it reported a loss of more than 800 million pounds the british betting company warned of new charges because of tougher uk regulations on gambling terminals they saw a boost in operating profit as they eye the u.s. sports gambling market if you have any thoughts on what we've been reporting, get in touch with us

any thoughts on where willem can find cheaper beer for the weekend. get in touch you can find us on twitte twitter, @streetsignscnbc. the u.s. jobs boom is expected to continue a look aado e n-rmhe tthnofa payroll coming up next for your brain. you tag with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it.

welcome back to "street signs. it's approaching friday afternoon. it's approaching the weekend that means the premiere league is building. football in england officially, that kicks off tonight that's because it's the beginning of the new football league campaign, where the championship is among the top leagues in europe. adam has more on this >> 72 league clubs make up the football league, those are the three divisions under the "power

lunch the premiere league, they are selling rights and generating massive amounts of revenue the championshipship itsel shii latest figures we have available say they generated a combined 835 million euros, a huge vast sum of money making it the sixth biggest in terms of revenue compared to other leagues around europe. that's the top divisions including the premiere league, serie a, la liga as well where do they get their money from broadcast rights that's where most of it comes from over 50% of the championship's revenue is generated from that sky are the mains rights holders in the uk. espn in america and bm sports in asia also holding the rights there as well. not on this graphic is 250 million euros generated in

parachute payments, that's from the premiere league paying clubs who get relegated from the premiere league. the league itself is awash with money. so who plays in the championship that's another key point here. as willem pointed out, some big names there. twice european champions, not for a while, nottingham forrest are down there aston villa, european champions in the '80s. they've been subject of a takeover bid from an egyptian billionaire. they have invested $39 million into the club, that's about 55% stake. the chairman of leeds is also the co-owner and founder of 11 sports network they've been in the news eventually because they acquired the rights deal for serie a and what league gaga -- la liga

coverage in the uk they already have been spreading the word of the football league in far-flung tours in myanmar earlier this summer. frank lampard, known to chelsea fans around the world as their record goalscorer, over 100 caps for england, he's stepping into management with derby county who start the football league season later on this evening in england. frank lampard, amongst the managers trying to get out of the championship into the premiere league, ahead of that game tonight he's been talking about the efforts they put in and the amount of money that clubs are spending to get out of the championship and get a taste of the riches that the premiere league have to offer >> we are on paper a premiere league club, the size, the infrastructure, been very close

a lot of times there are a lot of other clubs challenging to improve their squads, a lot of clubs have come down from the premiere league that have different finances to what we have we are fighting, challenging the odds, but we have to have an inner belief here. we have to believe on theinsid and show it every week >> frank lampard going into the dugout for the first time, of course not a player anymore. just time to show you how well-supported the championship is compared to the other top divisions. the third most attended matches in europe came from the championship cumulatively. a huge amount. 11 million fans coming through the gates to watch games, that's more than la liga, serie a and ligue 1 in france. ligue 1, over 4 million fans through the gates.

the world cup is a distant memory we're now into the full throes of the english football season beginning tonight with frank lampard's derby county to reading to kick off another nine months of thrilling football >> thank you very much for that, adam general motors is seeking an exemption to a tariff for its envision suv this is one move the carmaker is trying to make to mitigate the trade tariffs. beijing has vowed to stand its ground in its trade war with the u.s. once again. the chinese foreign ministry

says blackmail will not work president trump this week instructed his administration to examine upping tariffs to 25% on 2$200 billion worth of chinese imports. he said the door to talks remained open. and china's foreign minister said unilateral decisions by the u.s. are illegal >> translator: addressing trade disputes with other countries by applying one's domestic law and resorting to unilateral activities are against the world trade organization instead of achieving one's own goal, the move will only hurt the interest of one's self. china's services sector saw the least growth in new business since december of 2015 the services pmi figure fell to 52.8 for july, the lowest in four months.

restructuring of firms also cited as a factor. let's check on the turkish lira, it has tumbled to a record low after the u.s. imposed sanctions over the trial of a u.s. minister. andrew brunson has been charged with supporting a group blamed for an attempted coup in 2016. mike pompeo is expected to meet turkey's top diplomat today. turkish inflation did rise nearly 16% in july to a 14-year high as food prices surged this comes after that central bank decision that shocked many when they chose to hold. sterling moved sharply lower against the dollar that was after the bank of england mpc voted to raise rates to the highest level in almost a decade we saw that brief pop and then

it fell down after that. this was amid heightened brexit uncertainty with governor mark carney suggesting the path to raising rates should be gradual and limited. >> the box also provides context to our long-held guidance that rate rises are expected to be limited and gradual. limited because we think those structural factors that have pushed down on the interest rate are likely to persist. gradual because we think domestic shorter term factors, particularly those headwinds from uncertainty and fiscal drag will fade slowly as a result our star can be expected to rise gradually and policy needs to walk, not run, to stand still >> mr. carney said a rate rise per year would be a good rule of thumb, but said this would be dependent on what happens with brexit discussions he also said the possibility of a no-deal outcome was uncomfortably high and added the

government should do all it can to avoid such a scenario >> non-farm payroll figures are due out later today and are forecast to show the u.s. economy adding 190,000 jobs in july average hourly earnings are up 0.2% month on month. the unemployment rate is expected it fall to 3.9% the data comes as the federal reserve decided to keep rates on hold but did signal the potential for two more rate hikes this year. i'm pleased to say we're joined by lindsay piesa great to see you thank you for joining us let's get your forecast on the jobs number today. is there a chance we see a surprise to the upside given some recent prints on the employment outlook >> non-farm payrolls have been consistently positive. we're looking for that trend to continue we're looking for around the 190,000 number we're slightly weaker looking for 185,000.

the big focus this morning will be on that average hourly earnings number. it's no longer a non-farm payroll friday, it's more earnings friday. we want to see what's happening in the labor market in terms of wage growth. the median consensus is looking for 0.3% increase. it's unlikely we get that much rebound after a disappointing number last month. we're likely to see 0.1% or 0.2% increase, so keeping us closer to that 2.5% trend pace which is absolutely positive. for americans we are looking for a lot more pressure when it comes to wages with consistently positive payroll reports we should be seeing better growth in terms of incomes >> lindsay, i won't ask whether you think the trump administration's nebulous trade aims are achievable, i do want to know what you think the impact will be during this trade

negotiation process, however long it lasts. >> we can expect uncertainty we have already seen that in the market with this back and forth rhetoric and back and forth threats. the market continues to sit on the sideline i do think longer term, when we talk about the impact for the broader economy, any time you talk about restricting the free flow of capital, labor, goods, services, this will have a long-term negative impact on the u.s. economy in terms of reducing long-term productive capacity, reducing potential jo growth, reducing potential income growth. when you talk about the end game, potentially protecting intellectual property in the u.s. or uf.s. production of counterfeit goods, this could be a net positive but the pathway for achieving that end goal could be painful when we don't know how long this will take, how disastrous or how

contentious this pathway to that end goal will be so i do think it will have some serious negative implications for the economy, at least near-term. >> lindsay, thank you very much for joining us that's all we have time for today. appreciate it. before we say good-bye, let's check on u.s. futures. apple really lifting both the nasdaq and the s&p 500 yesterday. once again the dow jones with an implied open, slightly lower, of about 6 points that's it for today's show >> i hope you all have a great weekend. "worldwide exchange" in the u.s. is coming up right now

happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

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 at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. before starting tremfya® tell your doctor if you plan to or have recently received a vaccine. ask your doctor about tremfya®. tremfya®. because you deserve to stay clearer. janssen wants to help you explore cost support options.

it's 5:00 a.m. on cnbc what's next for the world's biggest company. where apple goes from here after becoming $1 trillion in value a big test for les moonves, the cbs ceo avoiding any questions about sexual misconduct. china's stock market just lost a global ranking, and it's thanks to a trade fight with us. shake shack is getting whacked this morning. and we are hours away from the jobs number. what you