. welcome to "street signs." >> these are your headlines from london >> hot off the blocks for adidas shares jump after strong sales in the u.s. and china boost profits. the ceo says trade tension won't hurt his supply chain. >> right now the way we constructed the supply chain, hardly any products we manufacture in china go to the u.s. if a trade war impacts our industry, it would be miniscule

for us. >> tui feels the heat. shares trade at the bottom of the stoxx 600 during the summer heat wave. pandora shares shine as the danish jeweler parts ways with its ceo days after the company delivers a profit warning. and russia's u.s. embassy brands fresh sanctions draconian as equities open in the red. good morning let's get to one of our top corporate stories. adidas is trading higher after second quarter shares are up 10%. the german company reiterated its full-year guidance but acknowledged persistent problems at reebok. sales at the subsidiary fell 3% and the division was forced to

add a one-time impairment charge kas tcaspekasper rorsted told c concerns about weakness. >> adidas in north america grew 17%. online business grew 26. >> what about reebok we flagged that as a problem for business if i look at the numbers, classic seems to be performing okay, but training and running were down. you have an impairment charge in here, too. what do you see happening with reebok do you see improvement in the business down the track? >> first, the impairment charge is due to the time period of 2006 to 2016 nothing to do with the current trading. you can see profit at reebok was up almost 400 basis points that's the focus we have we're confident we'll get reebok

into black territory by 2020 and we're willing to take a slower revenue growth. however what i want to say is we're back to growth in north america, reebok grew 6% in the u.s. >> annette is in frankfurt you've been following this story. the stock is up 8% in trading today. reacting very well to this set of earnings. what more can you tell us? >> yeah. actually it's a very good story for adidas looking at sales volume in the united states. that's one of the biggest and most important markets it seem there's they're outperforming competitors. also china is going incredibly strong so we have a rise of sales of more than 25% in the last quarter. just for china that overall is a very positive surprise given that there was some weakness when it came to their competitors in the states

and also in asia so adidas has a strong footing there. that comes despite the fact they were not fortunate when it oncoe to the world cup because their teams really did not make it into the final round here nike had a far better hand. but still this didn't affect adidas too much. mi mind you, i think market expectations were not overly optimistic that's something which we also saw in the first quarter, the last time the shares rose so violently or positively was when they presented their last quarterly results. overall market expectations have not been positive. also to add is what kasper

rorsted was saying, that reebok, we see a silver lining we see a turnaround, and we see reebok sales in the united states are going up, which is a positive surprise in a way because some people are still thinking that this turnaround story will never be successful, but it looks like they are actually making ends meet here so bottom line is adidas is doing strong in the states, in asia, especially china but there is a weakness. and this is western europe there it seems adidas is losing market shares to their competitors such as nike with that, back to you >> all right thank you for that you know what's interesting? just looking at the stock price, up 8% today, still only up 6% on the year i think that's on the back of what annette ta flflagged, it's getting more competitive in that

space. merck has opened lower after missing second quarter earnings expectations a decline in revenues used in liquid crystals impacted the quarterly profits as did the strong euro. they expect adjusted earnings from continued operations will also decline deutsche telecom raised their earnings forecast for the second time this year. positive trends helped drive second quarter growth but the 10% decline against the euro did limit that growth potential. looking at the share price, we can see it's currently trading down around two-thirds of a percent. we're joined by guy petty, head of aquari group. has this company matched expectations >> yes, it has been matching expectations, but it's a tale of two stories. it's the constant outperformance

in the u.s. with a more moderate but in line expectations one thing i would highlight is the domestic german business, it's doing well in the mobile segment especially compared to operates like vodafone >> is greater global consolidation in this sector the main factor to watch for with this stock >> and also with deutsche telecom they did a bunch of deals last year. >> they completed an austrian transaction. outstanding are the moves in the netherlands, and of course it has the big one with the plans with sprint in the u.s >> what about the regulatory obstacles? >> they're harder to interpret in the u.s. because we don't know there's one minute positive, one minute negative. but they're having a proper think about it in europe we have more of a precedent which will allow the deal it's all a question of remedies, whether you can keep the

spectrum and what it means for competition going forward. >> on evaluation, telecoms in europe look cheap. they're trading at a significant discount, not only versus other sectors, but to different agree graphic locations. do you get the sense this may be beginning to turn around in the latter half of the year? any positive signs on a forward looking basis, particularly as many of these companies grapple with the rollout of 5g >> i would say a couple of things the reason why they're cheap is they have not grown for a long time they're going through a substantive reinvestment cycle in networks. in the first half of this year there was a bit of a softness of numbers, but i think that's probably abated. the numbers now for 2018 in most cases have been reinforced or reiterated or are in the bag that means the valuation stands out better so they are trading at close to

five-year lows, so there is a bit of upside going through to the second half. >> joumanna mentioned 5g does there come a time when the massive investment necessary means the larger players end up controlling the market >> in our view there's a scalededscaled ed advantage. if you're deutsche telekom in germany rolling out fiber, 5g technology and the handset replacement cycle, because every handset will have to have new technology in it, scale begets scale. so they generate 50% of the cash flow in that market. that does give them an advantage in this heavy lifting process. yes, we remain positively bias towards these big incumbents because of that scale as we go through this massive networking investment 5g is starting now in reality the real investment cycle will be 2019, 2022, 2023

>> there were many articles in the last week talking about how china are winning that race to build 5g one, why is it china is leading the charge two, how significant is it from a competition perspective if the u.s. and europe are at a disat va -- disadvantage versus china on the 5g rollout >> the real 5g experience won't be until 2020. i think you'll find europe and other markets will be more comparable by then it's fair to see some of the noise is that there are some major technology deals, but there's an effect of price and efficiency you find chinese vendors have been cheaper than others but looking attestin testing, i

europe and split between three different companies. >> is deutsche telecom way behind its peers >> not really. its fiber strategy is loser. that's a function of the way the german home market is structured it's a bit behind places like spain, but it has the wallet to catch up we need to know what it will do. we're still evolving that strategy >> we have to leave it there thank you very much for joining us that was guy petty tui opened at the bottom of the stoxx 600 despite backing full-year guidance the travel firm forecast earnings will go at least 10% up summer bookings came ahead of last year's figures and the travel group recorded third quarter revenues of over 5 billion euros. we'll delve deeper into the

numbers in about 20 minutes time with the ceo of forward keys as ever, get involved in the conversation we're on twitter follow us at @streetsignscnbc. coming up, pandora shares sparkle after the firm announces the ceo will step down at the end of august. mr. on that after the break. can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis.

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good morning let's check in on how markets are trading. the split behind me is roughly 50/50 between the green and the red. heading towards the end of the earnings season, the u.s. equities close was muted here is an interesting statistic. the s&p's range yesterday was the third smallest of the year so some of that holiday mood is settling into markets. overnight asian markets saw a rebound. somewhat mixed for the other indices. overall stoxx 600, the broad

composite index is trading weaker in the early hours of trading. let's get into the individual markets and see what the picture is like. xetra dax and ftse mib are the out-performers, only a little bit. ftse mib is up 4 points. italy has been an area of focus in the last 24 hours as those budget discussions start getting into place we'll talk more about that later. xetra dax also up 15 points. had a bunch of company earnings come out this morning. we'll talk more about that cac 40 is lagging a bit. the major underperformer is ftse 100, trading about half a percentage point weaker. 40 points lower. i should tell you some of that has been impacted by a bunch of companies, and that subtracted about 30 points off. we have retail up at the top, up half a percentage point.

household goods up a third of a percentage point telecoms are underperforming oil and gas, given the volatility in the spot price, a bit of a decline in yesterday's trading impacting that sector as well travel and leisure down a third of a percentage point. tui results came out today better than expectation but the reaction in the stock has been underwhelming. we'll talk more about that as well pandora is trading higher after the ceo. anders colding friis, announced his resignation. the jeweler issued a profit warning days ago and has now confirmed a 1% drop in like for like sales in the second quarter. pandora said jeremy schwartz will join as coo and will stay until a new ceo is announced.

and shares in orsted are higher after announcing they will buy lincoln clean energy. the company posted the second quarter earnings today that were in line with forecasts and adecco is lower after reporting weaker than expected second quarter profits the firm blames slower revenue growth net profit dropped 11% and missed expectations. the group says the decrease has been driven by investments but it is confident it can deliver on productivity savings. let's talk about the ecb u.s. tariff threats have intensified risk to global growth it added that the average u.s. tariff rate could climb to almost 50-year highs if washington follows through on proposed trade actions but the ecb says domestic growth looks robust despite mounting trade tensions italian bonds have rallied after the prime minister said he

won't be unreasonable during eu budget talks he insisted he would not make foolish demands while negotiating with brussels over italy's 2019 budget. the economy minister said this week that the country's next budget will be compatible with eu rules let's look at the italian bond levels this morning not that much activity ten-year hovering around 2.87. yesterday's range was 10 basis points on various comments coming out of deputy mayo and then followed up by the prime minister saying he will not be looking for a confrontational stance with the eu when the budget is discussed. that's the picture for italian yields the two-year at 96 basis points. esther baruti from state

street is with us to talk about many things that are going on in the world. let's start talking about italy. that was the last item we were discussing there has been a bit of volatility in the periphery bonds. are you expecting this issue to flair up again come this summer, come september and october when they get into the heart of these budget discussions >> i think a lot depends on how the italian politics act you have mr. vsalvini, mr. dimai with strong demands. if they pursue them on tax cuts, big spending increases on universal income you may find investors worried about the sustainability of the italian budget, not just for this year but for future years >> when it comes to your own investment portfolios, have you shifted out of italian assets? remember back in march and april there was a huge amount of

equity outflows, and also investment leaving europe on the back of political gyrations. are you expecting any of that cash to flow back in once we get certainty of the budget? is it once it's gone, there's too many question marks and it won't come back in again >> for serious investors you need a big resolution of the emu architecture but that's the main thing. i think for people to really commit their money, they have to be confident in the future of the euro and i don't think we're quite there yet. >> i want to ask about brexit as well i heard from a couple senior civil servants yesterday we're staring down the barrel at a no-deal brexit we saw the pound having its worst day in about a year against the dollar do you think it can weaken further? >> i think there's no doubt that a no-deal is getting built into

market prices. i think the key thing is if we have a soft brexit, we could have a really good reaction in the uk market. at the moment, yes, we might go down further, but if mrs. may gets her deal, that would be very, very positive. >> isn't it binary at this point? you have deal and no deal, with each one the pound could go up 10% or down 10%. >> i'm not sure the pound will go down another 10%. if you look at the trade position, it's in the current account. the deficit on trade is 1.3% of gdp. it's not huge. we do pay out a lot to foreigners in terms of dividends and interest but if you look at the pure economic position, i don't think

it's as bad as some people make out. i think the other thing that's pushing for a soft brexit is what will happen with the italians, the germans, the dutch. we'll have massive surpluses with the uk. massive. when you look at france, france is almost in balance the people who really lose are the germans and the dutch and the italians >> just reading between the lines, you're relatively bearish europe and positive uk, which is a bit of an anti-consensus view. >> i'm positive uk longer term at the moment, quite frankly, we're underweight europe in the global fund where we have much more u.s. and asia >> we'll leave it there. thank you very much. esther baruti. some more horrific pictures from california where a massive

battle is continuing where crews are trying to beat back the largest wildfire in the state history. nbc news miguel almaguer has more >> reporter: it takes minute for a firestorm to blow through a neighborhood, but rebuilding lives takes years. >> this is hard. >> reporter: they are among the 2,000 homeowners in redding whose dreams have turned to ashes. >> i keep crying over the love of this community. >> reporter: the caplins say they are lucky, they have insurance but holly and gene webb warn a policy is not always protection. >> i don't have receipts or -- everything burnt up. >> reporter: the webbs lost their santa rosa home in california's most destructive fire expecting a full payout from insurance after the fire, they were flooded with red tape. >> with the inventory, you have to remember everything, spoons, forks, knives, blankets, anything you ever had in your life. >> reporter: without that full

inventory list, what fire victims call a multi-page complicated assessment of everything they lost in the fire, state farm would only pay 75% of the webb's policy in april, our nbc bay area station heard similar stories from others. >> who got everything out of their insurance policy they expected that's nobody. state farm tells nbc temporary measures were put into place to help customers including increasing the amount of contents coverage paid up front without requiring an inventory. >> i paid my premiums on 100% and state farm ought to pay me 100%. >> reporter: tonight as flames threaten thousands of homes, even those with insurance worry they could be burned long after the fire is out. miguel almaguer, nbc news. a magnitude 6.2 aftershock

hit indonesia. according to witnesses, the aftershock caused some buildings to collapse. officials say the epicenter was on land and said there was no risk of a tsunami. zurich reported a 19% rise in first half net profit the firm boat eat expectations its property, casualty and life businesses it says it is on track to meet its full-year target >> it's interesting, when i spoke with swiss re last year, i talked about the wildfires and the events, he said as far as the reinsurance business is concerned, hurricanes are more impactful. wildfires cost about $18 billion, hurricane damage was 1$100 billion so these events won't yet show up in the insurance community. first half operating profit at l

& g rose 7% year on year general insurance was the only unit to underperform as extreme weather took its toll. they also announced an interim dividend. coming up, russian markets are roiled as the u.s. prepares for fresh sanctions. more on that next. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

welcome back to "street signs. >> these are your headlines. >> hot off the blocks for adidas shares jump after strong sales in the u.s. and china boost profits. the ceo says trade tension won't hurt his supply chain. >> right now the way we constructed the supply chain, hardly any products we manufacture in china go to the u.s. if a trade war impacts our industry, it would be miniscule for us. >> tui feels the heat. shares trade at the bottom of

the stoxx 600 during the summer heat wave even as the travel company sticks to guidance pandora shares shine as the danish jeweler parts ways with ceo anders colding friis days after the company delivers its profit warning and russia's u.s. embassy brands fresh sanctions draconian the ruble's decline intensifies and equities open in the red let's check in on how markets are doing. we had a muted session in the u.s. last night with most of the major indices closing around the plat lin flat line. this morning you can see mostly in the red for european equities xetra dax below the flat line.

the ftse mib has turned south. ftse 100 is down about 50 points or so, system of that is on the back of a bunch of stocks go x dividend, so taking off 35 points from the index. switching to foreign exchange and here actually things have been more volatile we have some movement in euro/dollar now. we had the ecb bulletin coming out stressing concerns about the tariff environment in the world, broadly more positive on the outlock fou outlook for eurozone cable isweaker today at a one-year low versus the u.s. dollar. 1.2850 as our previous guest was saying perhaps at this point in time somewhat accounting for the prospect of a no-deal brexit

let's look at the u.s. futures today it looks as though the dow will open up about 20 points weaker nasdaq about 5 points weaker we're heading into the end of earnings season, some earnings are petering out it's been a strong earnings season so far, but we're also heading into a quieter summer trading month. the kremlin described fresh u.s. sanctions imposed on russian as draconian russia says there is little evidence that it was involved in the poisoning of sergei skripal. the u.s. decided they were behind that nerve agent attack in the uk. the british government welcomed the move saying sanctions send a message that russia's conduct would not be tolerated the uk foreign secretary thanked the u.s. for standing firm on the issue. and the ruble slumped against the dollar it hit its lowest level since late 2016.

sanctions are expected to come into effect around august 22nd to talk about this, we are joined by the senior economist at danske bank we have a doubleheader here over the last 24 hours, in the only do we have the sanctions related to u.s. treaty operations when it comes to chemical weapons, we've seen details of what lindsey graham described as the sanctions bill from hell that seems to be the one that will have a greater impact on russia's economy what impact do you think it will have >> good morning. if the bill becomes law, we would see definitely lower levels in russian ruble and other russian assets the bill targets russian debt and there are many foreign holders of the local debt.

so this would plummet it further. then russia's exports would be also hbe hit it's a serious thing the most serious thing since 2014 when geopolitical turmoil started. >> would you say the market was anticipating this move going on the reaction in the ruble alone, a 3% instant depreciation when the news came out. another 1% weaker today. it tells me currency investors are not anticipating a round of sanctions from the united states >> well, there is a lag. the sanctions come from the bill the bill was announced last week, but only yesterday when russian newspaper published the

full text documents, investors saw certain things, names of russian banks which will be sanctioned then the reaction started. at the moment it is an emotional reaction nothing happened yet you have to look at the macro fundamentals those have been doing fine now what we are seeing in the rates, those are expectations of the future and the expectations show that the future looks gloomy. >> what you're saying is that it was not so much the threat -- or the new sanctions related to the skripal attack, it's more the details being published of this draft legislation from the u.s. senate i want to ask for viewers not trading the ruble and know about this story, can you give us some details of that draft legislation that you think will impact sectors like banking in russia >> well, that bill is talking

about russia's largest banks seven banks where the russian state is a big owner those banks, they cover basically more than 80% of the russian economy. if those banks can't deal more with u.s. dollar accounts, if the property is frozen in the u.s., then it would definitely hit international transactions and hit russian exports, foreign trade. those are bigger threats that russia could face. >> one more final question, sir. congress is still in recess for a couple weeks for people watching this closely, there's no chance this legislation would pass for at least two or three more weeks. both houses, if they did pass it, do you think there's a

chance president trump would sign this into law he sent rand paul to moscow to meet with vladimir putin, with his recommendationclearly tryin relations. if he signs this, that would be a crushing blow to relations do you think he'll do it >> that's the question i think that trump is currently in a hard position if he vetoes that bill, he will face more accusations. and what the congress needs, they could overpass that bill. which means the president, donald trump, would lose his face so he must sign that bill if that bill goes further

that's so he doesn't lose his face, especially ahead of the midterm election in the u.s. >> i want to ask a question about how you think the central bank of russia will react to this they recently held rates steady. if you think the second round of sanctions come into effect, that the central bank of russia may be forced to start cutting rates as well? we are not seeing cuts in rates this year. we would expect the central bank to become more hawkish on those external factors, and if the situation escalates in the autumn, then the central bank could even hike rates to be in accordance with other global and em central banks, and to avoid

the ruble free falfall there is a chance that the russian central bank would hike. >> thank you very much, sir. saudi arabia has reportedly begun selling off canadian assets in response to a growing row with ottawa. riyadh ordered overseas asset managers to dump canadian holdings relations have frozen after canada's foreign minister called for the release of two jailed civil rights activists in saudi arabia riyadh describes the move as a violation of its sovereignty justin trudeau says he will continue to speak firmly on human rights >> obviously canada will always stand up for our workers, our companies. we need to make sure we're protecting canadian interests in any situation. we continue to engage with the government of saudi arabia, the

minister of foreign affairs had a long conversation with their foreign minister yesterday diplomatic talks continue. as the minister said and as we will repeat, canada will always speak strongly and clearly in private and in public on questions of human rights. ryanair is set to san secanl hundreds of flights on friday as german pilots take place in a 24-hour strike the budget carrier already canceled almost 150 flights in those three countries. ryanair which recognized unions for the first time in its history is facing calls to improve salaries and working conditions. tui shares slumped to the bottom of the stoxx 600 in early trade after the travel group stuck to its full-year guidance despite the european heat wave keeping holidaymakers at home. summer bookings came in ahead of last year's figures as they reported third quarter revenues of over 5 billion euros.

tui is seeing a considerable rise for bookings for turkey and africa >> thanks for that i'm enjoying this segment. the holiday segment. it's my last show before i go on holiday. british tourists are heading back to destinations that until recently were considered to be at risk of terror attacks. let's look at the fastest growing destinations this summer tunisia is the big winner, reporting a 901% increase in british tourists 0.7 of total travelers from the uk have chosen to spend their holidays in the north african country. montenegro is in second place with a whopping 468% increase from last year 0.2% of british holidaymakers are traveling to that balkan nation and elsewhere, turkey with the

largest market share of the three reported a 66.4% annual rise, 11% of tourists from britain have headed there this summer no doubt some of the currency depreciation has aided with the 40% depreciation of the lira this year. finally egypt is in fourth place with a 51% rise from last year those are the biggest growing markets as far as holiday destinations are concerned olivier jager joins us looking at some of the earnings coming out we had tui and thomas cook, both citing the hot weather, while we may be enjoying it in london, it's a bad thing for the travel and holiday industry what is your take on those companies prospects? >> yeah. it actually started earlier in the game, late in june we could

see the season for outbound leisure traveler from the uk was looking good we were up 4.9% compared to last year what was special about the redeployment of some routes in order to favor the destinations you mentioned. we were familiar 2012, 2014, but some of those areas were struck by terror attacks or geopolitical tension the success of the destination ties to the willingness of professionals to travel there, but also tui and thomas cook opening routes there i think they're successful with that people are interested to fly back to egypt, to tunisia, to turkey egypt and tunisia are low still

in terms of potential, in terms of fleet, or number of seats available. they will keep growing allowing the operator to steer things away from spain or portugal, which has been the plan "b" that a lot of people have been betting on over the last year. so that's good they've been able to put together new packages, offering new destinations, getting people interested into the destinations we thought -- go ahead >> we are talking about huge increases year-on-year for visitors to countries like tunisia and egypt. you talk about more future potential for growth, two countries like that are turkey the context is key if you go back to 2011, i want to ask how is a country like egypt doing in terms of numbers compared to pre-arab spring?

>> around 40% air capacity to the destination when it comes to leisure. frankly if you look at the flows at this point in time from where in the world to egypt, it's clear that most of the people that are filling these planes are visiting friends, families, business people. but the leisure crowd unlike earlier, is getting better we remember the crash of this flight from sharm el sheikh which triggered a situation where worldwide airlines decided not to fly to that destination anymore. that ban has been lifted aircraft are landing on these destinations so things seem to be getting back to normal even though at the end of the day we're 40%, 50% of what the normal situation could be >> i know your company analyzes

more than 17 million flight booking transactions per day i want to ask whether you detected a correlation between currency moves and holiday destinations you may have heard me talking earlier about turkey clearly there's been a big year-on-year change, up 65% according to your data, but then again the currency deprecated 40%. so is there a correlation between currency depreciation and some of these holiday destinations also inversely with europe, with the weaker pound versus euro, perhaps that's one reason why spain and portugal have been leveling off >> absolutely. currency are always a trigger to measure the performance of a destination. here the situation in turkey is kind of mixed up with the valuation of the pound, with the heat waves, with the reopening of the destination, with the

good prices that were offered, with the world cup plus a lot of people already made reservations before the turkish currency would go down so it's difficult to measure in addition, you buy them in a package. so the price of a package is driven from london, not from turkey so it might not be fully reflected, but it's a component. it's a trigger for a successful destination. >> all right thank you very much, olivie olivier jager. zooanimals from china to europe are getting ice remedies to combat scorching temperatures in china, zookeepers brought out

ice blocks for the pandas. cold showers and cooling ponds also proved useful to dispel the heat and temperatures are expected to cool off towards the end of the week. i know you have a lot of views on baboons eating popsicles. >> it's more the raccoons climbing all over the ice blocks i want to hear about your ability to deal with the european heat. get in touch on twitte twitter, @streetsignscnbc. coming up on the show, count down to the galaxy launch. samsung prepares to unveil the hotly anticipated galaxy note 9 in newyork my digestive system used to make me feel sluggish

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welcome back 21st century fox posted quarterly revenue and profit above expectations as the media giant prepares to sell much of its film and tv assets to disney results were boosted by de

deadpool 2 and tesla board members have released a statement regarding elon musk's thoughts on taking the company private. and the s.e.c. is reportedly asking tesla to explain why musk's proposal to take the automaker private announced on twitter and not a regulatory filing the regulatory is also asking if the statement is truthful amid concerns about investor protection rules > . samsung is set to unveil its newest smartphone at an event in new york the hotly anticipate the galaxy note 9 comes as the firm targets fresh revenue streams and job growth arjun kharpal joins us in the

studio this is the latest sign of this growing luxury market, no? >> there's certainly a market here for high-end devices, those $1,000 plus ranges we're expecting this device to be around that same price as the apple iphone x. the note is an interesting device they pioneered that large-screen device a few years ago with the note series. it will never be a huge volume driver, but it's a high margin device they hope can support their mobile business and attract a certain consumer who likes the latest in technology, perhaps using it for work, productivity it's expected to have a screen about 6.4 inches, one of the largest on the market. so there's a big device as we do more and more on our smartphones. >> as we talk about apple,

samsung, huawei, we are seeing growth in those areas. do you think samsung is a little too dependent on the luxury smartphone model >> with samsung, they rely on android. that's owned by google with apple, they actually own the operating system and so can add those services on. samsung can't do that. that's why you are seeing weakness in the mobile division. what they have done is actually gained a lot of profit from semiconductors this is a way to get rid of reliance on smartphones and semiconductors >> how much is this phone going to cost? i'm asking because i smashed my iphone this morning. >> i'm expecting in the region of $1,000, maybe more. >> i'll have to go for the secondhand item.

>> will you have time to buy it before your vacation starts? >> that's the question that everyone wants to know i'll keep you updated. thank you for bringing us the latest before we head out, before i head out on holiday, let's check in on u.s. markets dow is seen opening up about 10 points lower nasdaq about 3 points lower. that is it for today's show. i'm joumanna bercetche >> on her way to holiday i'm willem marx. "worldwide exchange" on the other side of the atlantic coming up next welcome to the xfinity store.

thanks, janet. it's my happy place. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today.

. it's 5:00 a.m. here's your top five at 5:00 tech stocks continue on a tear the nasdaq on its longest winning street since march monster mentality, that's what china is calling the trump's plan to implement new tariffs. the inferno out west grows the biggest fire in california's history continues to burn. another major earthquake rocking indonesia overnight. and a big blow to uber and lyft as new york city looks to cap the ridesharing industry how will tha