welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines wake up and smell the dealmaking coca-cola puts nearly 4 billion pounds on the table to buy the costa coffee chain from whitbread sending shares sharply higher. president trump could slap another 2$200 billion worth of taf r tariffs on china, this sends global stocks into the red after a week of gains.

not good enough. president trump rejects an offer from europe to drop all auto tariffs saying the eu is almost as bad as klechina, only smalle. and argentina prepares more drastic messages to stem the free fall in the currency while protesters take to the streets of bane neuenos aires amid econ meltdown all right. good morning welcome to "street signs." a lot to get to today as far as the markets are concerned. let's start with asia. we had the trade discussions going back into the spotlight, back into the forefront. asian markets getting hit. chinese equities trading down 1%, this after president trump said that the u.s. is thinking of pulling out of the wto, and that they are actually thinking of applying that 2$200 billion

worth of tariffs as soon as next week you would imagine that a lot of the sectors that are sensitive to trade are getting hit that's what we saw in asia and also what we're seeing in europe we'll get there shortly. overall the sentiment is negative this morning. stoxx 600 is trading down 0.6% in early hours of trading. let's look at individual markets. the picture is not much better we have ftse 100 again below that 7500 mark keep flipping around that point, down about a third of a percentage point xetra dax is the main underperformer, down 1%. that is on the back of autos getting hit. we're there already. autos down 1.3%. some remarks out from president trump suggesting that the tariff proposal offered by europe was just not good enough autos down 1.3%. basic resources down 0.8%. those are the trade sensitive

sectors. the only sector in the green is travel and leisure up 0.6% let us talk about one of the biggest movers yesterday, that is the argentinean peso. at one point is moved more than 15% intraday a sharp devaluation. this is the trend, 50% weaker on the year 100% weaker over the last 12 months big moves there. we'll get into it in more detail, ultimately investors are getting nervous about the short-term economic prospects of this country and whether or not the imf will step in and help things out >> thank you very much one of the big corporate stories that's having an impact on the markets, whitbread shares are surging after striking a 3.9 billion pound deal to sell its costa coffee division to coca-cola. the board backed the deal. the sale value is more than 16 times the 2016 ebita

and whitbread's ceo says that price tag is significantly higher than anything the company could have achieved through a spinoff. john cox joins us now to talk a bit about this deal. thanks for joining us. i have to ask you, is this price good value for money for coca-cola? >> i would say it looks a rich price. i would say it is good for whitbread shareholders the multiple was a couple points above what we were expecting the deal came through quicker than we anticipated. we must admit we were not even thinking coca-cola would come in for the business coca-cola wants to pay top dollar you've seen the multiple above what nestle paid for the starbucks food services business so coca-cola thought this was an opportunity to get into the hot beverage side of the coffee

market i presume they will then look to expand that brand on a global basis. >> just lay out for us, what are the pros and cons of this arrangement from where you sit >> yeah. i think if you look at the overall coffee market, it's 1$10 billion plus typically growing mid single digits the fastest growing part has been in the premium and food service end of the market. you've seen the market overall consolidate around the big employee players, which is nestle, j.a.b. holding tying up with kraft and doing other acquisitions of course you have starbucks in terms of the big chain i think what this deal does is show you that coca-cola sees the opportunity in the overall coffee market and in food service. of course remember home

consumption is growing faster than main street grocery retail. it wants to be part of it. that's probably why it paid up for the attractive asset >> we have seen a flurry of activity in the space. we had nestle partner up with starbucks. pepsico with soda stream today coca-cola. are you expecting to see more and more deals in this space as many companies move away from sugary products and sweets towards healthier options? >> yes certainly i think as the big sort of sodamakers over the last couple of years will be doing more and more acquisitions out of their core businesses looking to build businesses which are probably going to be more sustainable on the long-term basis. water and other drinks are clearly taking market share away from the carbonated soft drinks, which on top are under pressure because of anti-fat taxes,

anti-sugar legislation in parts of the world that trend will continue i still assume that the big soda players will look out for acquisitions in the healthier lifestyle end of the market. saying all of that, multiples are not cheap. you've seen quite a few players say we are not going to take part in m&a because of valuations are so rich it's hard to justify value creation given some of the multiples. on the other hand the interest rate environment remains attractive that won't go on forever if you want to do some of these deals, maybe you think you want to borrow big and take advantage of low interest rates, maybe now is the time to do it >> coca-cola going into the coffee market. the coffee market is competitive at all levels. what is going to give coca-cola an edge? >> i think it gives an outlet in

terms of the hot beverage side of the market. that's something they have not had across the drinks platform better footing in coffee overall. why is everybody interested in coffee it's the millennials they are driving the growth in coffee they drink far more coffee than we did at that age the companies are betting millennium coffee consumption trends will continue as a result you can see a long-term growth trajectory for the overall coffee market. i think the costa coffee brand is attractive. like for like growth has not been particularly great in the uk for a while but on the other hand it can be expanded internationally i'm sure it will be plug and play then you can think about what

costa coffee offers in terms of a bean brand and what you can do in retail stores and outlets i think coca-cola by spending almost 4 billion pounds is serious about this transaction i'm sure they're competitive it adds a dynamic competitor into the coffee space. i'm sure the likes of nestle, j.a.b. and starbucks were not thrilled when they heard this news >> we have to leave it there thank you very much for joining us willem, all this talk about coffee makes me want to have a coffee >> that's the big corporate story. u.s. president trump is ready to escalate the trade dispute with china the white house is prepared to slap beijing with tariffs on 0 $200 billion worth of goods as early as next week in an interview with bloomberg

president trump said he will pull the united states out of the world trade organization if those responsible for the intergovernmental group don't shape up this is not the first time president trump criticized the wto. in june steve mnuchin denied reports that president trump wanted to withdraw from the trading framework. president trump has also resumed his public opposition to the european union he rejected an offer to scrap all tariffs on cars if the u.s. reciprocates quid pro quo cecilia malmstrom made the proposal, but hours later trump told bloomberg that malmstrom's offer was not good enough. talks between the u.s. and canada will resume this morning as they try to resolve their trade differences ahead of a congressional deadline today

president trump said he thought the countries were close to a deal three-way technical talks along with mexican officials is ongoing. and the mexican economy minister is expected to rejoin discussions in a few hours time. supporters rally in indiana, and trump continued to warn canada that there could be consequences if no new arrangements are made today. >> we made a great deal with mexico as you know canada didn't want to do what we have to have done. after the deal, canada came along and are negotiating right now at the white house, in our territory. it could happen. we'll see what happens if it doesn't happen, we'll put tariffs on the cars coming in from canada. that will be even better >> let's bring in our next

guest. we are seeing emerging markets bouncing, the u.s. stock market seems to be going straight ahead. >> if you add up all the things president trump has said he would like to do, whether it's to china, the european union, mexico, canada, add up all the potential negatives that could be to world trade, you get to a few tenths of a percent, then you add up all the tax cuts, add up all the increase in spending that he's doing, that adds up to us to at least 0.6%, 0.7% this year and next year you put the two together, the tax cuts have happened the investment plan has happened the tariffs may happen but if they all happen, they're

a fraction of what would come from the tax cuts and extra spending it's not surprising in that case that the united states market is buoyant. the earnings market is particularly strong. so it's not a surprise that the market is starting to look through a lot of the tweets and talk about trade and look at the economic growth and earnings >> we've seen strong employment numbers in the u.s., wage growth pick up over there that will drive in theory consumer spending. we have reasonable amount of business investment on the back of those tax cuts, but the deficit is growing because of the spending you're talking about. is that something you worry about? >> it's a long-term worry you should keep your eye on. if you look at the consequence of a higher deficit in the u.s., in the medium term, there's no consequence. it's something you worry about when the country gets into recession and then they have to relax fiscal policy. it's already relatively relaxed. it's unusual to be at this level of deficit we say by the end of next year,

the fiscal deficit should be in the range of 5% gdp. we're nowhere near recession that's the unusual part. if that were another country that was less important than the world economy, you would get more worried about it. the u.s. economy is the largest, the most robust, the broadest, deepest and most important if any country could run that type of deficit, it would be the u.s. >> people point to various warning signs out there. the yield curve flattening is one of them. you say there's almost zero percent probability of a recession occurring. does that mean you don't believe what the yield curve is telling you? the messaging? >> it's important. the yield curve historically has been one of the most accurate predictors of recession. when i say most accurate, eight or nine times out of ten but there are differences between the yield curve now and

over the last 50, 60 years the natural rate of interest is lower. and the term premium is lower than usual you have quantitative easing you have the ecb policies, bank of japan policies. if you add up these different economies and policies, we think they have taken the long-term bond yield down in the u.s. by 100 basis points the signals from the yield curve is not as clear as in the past even if the yield curve is flattening, that still gives you on average close to a two-year gap between when it starts to flatten and then you get a recession. historically it's a strong signal but hard to interpret >> where do you think the headwinds will come from could it be the fed being overly aggressive with tightening or just too late and behind the

curve? >> the fed has a narrow window in our estimation, they are right on track the core pc is back at 2%. that's where they want it. they've been clear the way to see it overtarget for a couple of years is to balance out over the cycle. we don't want to go too fast not just because of the effect on their own economy but the effect on the world economy. everyone is talking 2020 as the your when fiscal stimulus wears off. so all that means is you go back to 4% growth to potential growth in the 2% range in the u.s., 1% for europe it's hutough to see anything tht would derail that economy right now. >> one more question given the impact we've seen sec when we've heard these comments from president trump and heard from his counterparts in china,

do you feel confident in advising your clients to keep their money in equities as much as you have in the past? >> yeah. this goes back to the yield curve, and we have not talked about the peak earnings growth the yield curve predicts recessions with a bear market. peak earnings predicts a slowdown down the line but all these things tend to come with at least a one-year or two-year horizon the best indicator of when you get into a bear market is when you have recession it goes back to the question of how strong is the economy, how close to recession we're still at least a year or two away >> you sound relatively confident. stay with us we'll come back to you soon with another discussion a blimp of london mayor sadiq khan in a bikini will fly over westminster this weekend.

that's after a crowd funding campaign raised 58,000 pounds to launch that balloon. organizers say they want to send a message to the london mayor about crime in the capital city. khan said if people want to spend their saturday afternoon looking at me in a yellow bikini, they may do so, but i don't think yellow is my color >> more importantly, before we head to the break, she is at it again. uk prime minister may dons her dancing shoes for another boogie, this time in kenya she was treated to a special performance from a kenyan scout troop at the launch of a new plastic challenge. as you can see, the british leader joined in i guess. i don't know what that is. i guess that is dancing. >> if you have views on theresa may's dancing, or sadiq khan's

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argentina's peso has lost nearly a fifth of its value over night despite an emergency move to raise the key interest rate to 60% the finance minister tried to reassure that the measures would have an impact >> we understand this may have generated uncertainty, and in times of uncertainty the interest rate acts as a barometer of competence. >> a very heavy trading day in em across the complex. we had not just argentinean peso drop as much as 13%, we had the south african rand drop around

2.5%, brazilian real 1%. the peso, 1.8% all of those currentries are fresh year-to-date lows. we had other market complexes buckle up the pressure still with us is the managing director of investment strategy group at goldman sachs private wealth management. talking about argentina, this is a debate we've been having on the show since april how much do you think this is an idiosyncratic story versus broader market developments going on and that the fed is tightening and the fed at's thee >> you just said the word, idiosyncrat idiosyncratic. you have imbalances, current account deficits on both sides, short-term reserves on both sides, so it's a classic em

financial crisis both countries are in a difficult position they both have things they can do it's not clear if they are willing and able to do those things with argentina, they've done monetary policy. they probably need to do more fiscal policy. the question is are they willing to do that in front of an election next year >> are you not concerned about the contagion risk as i was listing the other emerging markets, chances are if you're an investor who has rayed into argentina, you probably invested in other countries as well. >> that's true we saw the rand suffering from that contagion effect. turkey and argentina are in a class of their own in terms of imbalances

south africa is not perfect, but it's nowhere near that, but it has a liquid currency. when an investment manager in new york or london is rebalancing their portfolio they will sell across the board and sell liquid stuff. typically what happens after that is you get a reappraisal of what's working and not working, and then the money flows back gradually. so the rand is an example of a liquid market that is a barometer to what's happening elsewhere. once we realize there are idiosyncratic problems, we expect things to come back a bit. >> just some head lines crossing here from the turkish president, saying the exchange rate volatility will pass he says there's no need to be a genius to see those behind those volatility and exchange rates you talked about the political challenges and will to make those changes. it strikes me it's much harder

in turkey for the political leaders to make the necessary changes. they seem far less willing to engage with the imf. is that a big problem for turkey the fact they painted themselveses into this corner? >> it will make it more difficult. turkey has a bit more room to maneuver they have more fiscal space. the government has less debt than some other emerging market countries and they don't have an election going on, they had their elections. if there's a country that could take more adjustment, it's turkey we're not political experts but we talk to people on the ground, i think over on this side of the world we're underestimating the feeling of the turkish people. and erdogan making fiscal and monetary adjustments to satisfy world markets would go down badly. even though they have the space to do it, it might be difficult politically for him do it. there's other things they can do they can manage risk to the

u.s., they can manage the economy more, which is something they could do. they could start not capital controls but get tighter fiscal policy and monetary policy and they could engage with other sources of capital i think the room for turkey is larger, the willingness is probably not as strong as argentina. >> thank you very much we have to leave it there. coming up, we speak to volvo's ceo amid persistent fears that president trump could target european autos with tariffs. 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.

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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. i'm joumanna bercetche >> i'm willem marx these are your headlines wake up and smell the dealmaking coca-cola puts nearly 4 billion pounds on the table to buy the costa coffee chain from whitbread sending shares sharply higher. president trump could slap another $200 billion worth of

tariffs on china, this sends global stocks into the red after a week of gains. not good enough. president trump rejects an offer from europe to drop all auto tariffs saying the eu is almost as bad as china, only smaller. and argentina prepares more drastic messages to stem the freefall in the currency while protesters take to the streets of buenos aires amid economic meltdown all right. we were talking about asian markets trading heavy overnight after some of the comments from pr president trump suggesting that the extra 2$200 billion worth o tariffs could be applied

ftse 100 is down 0.2%. xetra dax down the biggest this morning, down triple digits, 112 points cac 40 also struggling the main them has been that of trade concerns creeping to the forefront. and some of the movement in emerging markets speaking of emerging markets let's look at developed markets. currencies yo euro is inching higher about 1.1680 cable is hanging in there. the government may be moving towards a deal as soon as october, end of november in a softer brexit structure. who knows. lots of speculation still. we have dollar renminbi continuing to move in the right

direction. renminbi is straightening versus the dollar to the tune of 0.2% all of the action yesterday was in the argentinean peso. let's talk about that for a bit. in yesterday's session we had the peso achieve about 13% on the back of that we had the central bank raise interest rates by 15 spent taj pointerceg points to 60%. this after the president called on them to bring forward the timing of the bailout assistance that led to panic. the peso and lira are moving neck to neck all of this emerging market rout

has had implications on the broader em complex yesterday was a bad day for other currencies as well the turkish lira, the south african rand, the rupee trading at year-to-date lows let's talk about u.s. equities this morning looks like the dow will open up about 10 points lower. nasdaq about 5 points lower. bucking the trends of going from strength to strength record high to high. the picture is a little bit weaker in today's trading session. >> let's talk about the u.s. in more detail. president trump resumed his public opposition to the european union he rejected an eu offer to scrap all its tariffs on u.s. cars if the u.s. were to reciprocate for european-built autos cecilia malmstrom made the latest proposal to the trade committee, but hours later trump said the offer was not good

enough someone who knows a bit about these trade conflicts is hawkin samuelson, veo of volvo trade group. cars have been at center of these conversations involving mr. trump. do you think your industry enjoyed its time in the spotlight? >> no, i don't think so. but free trade is very important in that respect. it's a good discussion i believe there's other proposals from the european union, if we have a system with zero tariffs, i think that would be good for consumers and also would be good for the car industry, both in europe and in the u.s. >> president trump is threatening once again to impose a fresh set of tariffs, 200

billion on china i have to ask, i know that you already had to move production around a bit to deal with some of this in the recent months, do you expect this to be even more disruptive to your production going forward? >> absolutely. if the industry cannot produce and trade with each other, you have to invest much more and build every component of every car locally. that would end up being more expensive cars for kurs mcustom. that would be bad. they would have a less offering also i'm quite sure about that. >> equally we're seeing a big spike in demand for cars i see you're exhibiting strong growth in europe, in china, other parts of asia. with the appetite for cars

growing, do you think that perhaps if you were to introduce price hikes they would be readily absorbed >> yeah. it's important that we focus on developing good cars, every time we have to double work and build cars in two locations, that's a waste. so free trade is much better for the industry i think none of us in europe, u.s. or china need protection. the best way of creating a strong car industry is competition. free trade, but it has to also be fair. in that respect we plan to export cars from the u.s. to china. that sounds difficult now. but for many years we export

cars out of china to the u.s i think we're a good example of trade going in both ways open and fair trade is something we believe in. >> one final question about trade. we heard president trump overnight dismiss this idea of tariff-free trade with the european union do you think the threat of fresh tariffs on european cars is off the table after that meeting with jean-claude juncker a few weeks ago? >> difficult to comment. i think there's a negotiation going on here. i think the offer from the european union is good europe has had 10% duties for many, many years, where u.s. has had 2.5% so going to zero is going a bit in the direction of u.s. which should be positive let's see how this negotiation ends up. >> switching tact a bit.

let's talk about the ipo i want to ask you whether the ipo of 15% of your group is still on tract to happen by the end of this year, and if so what could derail that timing >> it's an option. we are looking into that option. it's a decision for our owner, if he wants to do that or not. it's an option it's an owner issue. >> we have to leave it there thank you for joining "street signs" today. elsewhere, sage shares plummeted to the bottom of the stoxx 600 after the software developer announced its ceo will step down next may the cfo will run the company until a new ceo is appointed the news comes as sage reports slower subscription growth in

the first half >> wpp is set to name mark reid as its new ceo this would confirm that the company has decided against the hiring and replacement for sir martin sorrell reid has been co-coo since april, that was after an investigation into alleged misconduct prompted sorrel's resignation. reid previously ran digital operations and has been on the board for ten years. apple invites investors and consumers to gather around, but what will the tech titan unveil at its next event? details after the next break

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welcome back to "street signs. apple is expected to unveil its latest iphone models at an event on the 12th of september analysts predict the company will release three new smartphones this year.

apple shares touched a fresh record high yesterday on the back of that announcement. warren buffett said he's a happy apple customer he explained to cnbc why he thinks the iphone is enormously underpriced. >> i have a plane that costs me a lot. like a million dollars a year. if i used the iphone, i use an ipad a lot, if i use the iphone like all my friends do, i would rather give up the plane, which is a million or million and a half a year for something that costs a thousand bucks the iphone is enormously underpriced. now it's got competition so you can't push the price, but in terms of its utility to people, and what they get for a thousand dollars someplace else you know, you can have a dinner

party that would cost that, and here this is, and what it does for you, it's incredible amazon is closer to a $1 trillion market cap after shares topped $2,000 on thursday. they have taken over from tesla as the most shorted u.s. stock on the market. amazon has also announced plans to sell food and drink products in mexico. in a statement the firm said it was committed to offering its mexican clients as many products as possible. speaking to cnbc in berlin, the vice president of amazon's smart home was asked if he was seeing a backlash in voice technology amid privacy concerns. >> the most important thing to know is we build privacy into products from the ground up. from things like the mute button, always indicating to a customer that the mics have been electronically disconnected, to extending control for customers over all of what we

voice utterances there are stories of rare circumstances that come up and we continue to make them more rare so they don't come up again. >> we are joined by arjun kharpal live from berlin >> absolutely. on that topic of smart speakers, i have a great guest with me, the ceo of harmon. i want your thoughts quickly we heard from the vice president of smart home at amazon about the use cases of smart speakers. what do you see at the moment that will be the big use cases for these new types of devices >> this is the fastest growing category because of the use cases. it's actually bringing the user interface simplified you can do a bunch of actions through a smart speaker, which was not possible, including getting your regular medical examination results.

we have use cases in hospitals now. not just asking for music, asking for phone call, weather, shopping for me, it's very important that they go from 5 to 95, use it and use 95% of the features. >> this voice technology has had a lot of hype. you heard about the google assistants, bixby, does it have long-term longevity? how will this develop? >> i think it's here to stay it's a lot of maturity coming. ai is in the works here. last month at samsung we announced galaxy home, which is the sound system and harmon technology a lot of things coming the idea is not to just turn the channels on the television or ask for certain music, it's to live your life your own whole profile is with

you whether home or in the car or in the office on the go that's the whole idea. so i call it from device centric to user centric. >> privacy has been a huge topic this year as well. how do you ensure people are kept safe online when it comes to these devices and given what's happened with privacy, have you seen backlash against these devices? >> i'm glad you asked that question nobody in this forum takes seriously privacy and cybersecurity as i do. we are in the middle of high-end auto systems, so cybersecurity has not been taken seriously by consumer companies as well as automotive companies, except harmon and samsung so we are building cybersecurity in automotive sh aand we are building cybersecurity in home products you can turn it on and off your

microphone and the interface, so cybersecurity is very important for us >> you mentioned autonomous cars there. when you look at the work you're doing and where the industry is at, can you give us an update on when we are likely to see these autonomous cars hit the road we have seen some sitbacks you look at uber testing their cars the fatal crash. what level and stage are we at in the development of autonomous cars and them coming to the market >> it's a great question could be a half-hour piece just on that. but right now we're on a journey from a scale 1 to 5. a lot of working is happening scale 1 and 2. autonomous driving happens at levels 4 and 5 from the technology point of view, today you can run autonomously driven cars, but that's not the real world in boston, los angeles, new york. it's a ten-year journey samsung

and harmon and other industrial places are taking it investing into cloud, 5g technology, data technology so you have an instant reaction but no late tancy. some accidents we've heard about, and there will be more. but 35,000 accidents in the united states are from human error. we want to avoid that by au automa automating a lot of r & d has go into ai, cloud, analytics >> very quick. when do you expect these to be massively available across the world? >> massively available depends in austin, san francisco, 5 to 7 years. in cities like bangalore, delhi, los angeles, ten years out

level one, two, three, still human driven but some automation, lots of revenue will come from that technology. full autonomous driving will come after 2030. i think technology and revenue come together in 2030 for mass commercialization. >> thank you very much that was insights into some of the emerging technologies of smart speakers, voice technology and driverless cars. back to you. >> thank you very much for that interview. whitbread shares are surging after the firm struck a 3.9 billion pound deal to sell its costa coffee division to coca-cola. the sale value is more than 16 times the 2016 ebita

we have alison brittain, the ceo of whitbread with us right now on the phone one analyst said your shareholders will be happy with this price i'm thinking about one in particular, elliott, who pushed for this move for a long time. how important was their role in you making this decision >> so, just to be clear, we should focus firstly on the first point, which is, yshes, o shareholders will be delighted we feel confident about shareholder approval it is a great price, a great deal, great for both companies it's a good deal for coca-cola and for cost ta. so our shouldhow old i sharehol pleased, our teams and our business to deal with the question of elliott. elliott really were looking forward to de-merge our

business they will be delighted with the move today and i wouldn't say much more about that >> given that you have returned a lot of cash to shareholders and that's a positive thing, the share price has surged this morning, up more than 16%. there are also some questions about longer-term growth prospects. you're divesting a business which has been a fast-growing area of the overall entity now that you divested of that business, where is the long-term growth coming from >> okay. one of the reasons we've been so pleased with it, it's not just great for costa and not just great for shareholders in the short-term, but also it's great for whitbread and our uk leading hotel business premiere inn and great prospects for the future the deal is allowing us to

return to the shareholders, and it is allowing us to make an investment into our pension fund that will give us a balance sheet strength and fire power that will allow us to accelerate our network growth in the uk and more importantly in the new market we're growing in, which is germany reoriginally agreed to de-merge the two businesses, because they were different from each other the shareholders in the hotel business like the compounding long-term results. we have a compounding 13.5% return in that business. we have a unique business model, which is enormously popular here in germany it looks like we could replicate that uk success over the next 20 years so the ability to accelerate

that and have some firepower to accelerate network growth in germany will drive the whitbread business moving forward. this deal is facilitating that along with a great return to shareholders >> you said already that you think this price tag represents a significant premium over what you might have got for a de-merger or spinoff should we take from that that you did explore that seriously >> we announced the de-merger of the businesses in april. we were very serious about de-merge and we were fully committed to it and had committed to a date by which it would be done. we started discussions with coca-cola company, and we were very excited by the content of those discussions because what we found was the plan for growth in costa was complimentary to

the capabilities they were bringing so the combination of the coca-cola distribution scale, global presence, brand and marketing and product development were going to open up opportunities for costa which they couldn't do within their own growth plan. and therefore the synergy was superb and the price represents the fact that ourshareholders get a share of that synergy. it's a really good strategic deal for whitbread and its a great deal for coca-cola who have been looking for a coffee platform, and costa is the second best coffee program globally they have a great deal as well >> we have to leave it there thank you very much for joining us that's it for today's show i'm willem marx. >> i'm joumanna bercetche. thank you for watching to rent a movie?

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it's 5:00 a.m. here's your top five at 5:00 breaking news, coca-cola is buying the world's second biggest coffee chains for $5 billion. stocks snap a bit. markets end their four-day win streak following a report that trump is backing new tariffs on 200 billion in chinese goods china is not backing down. it's deadline day. the u.s. and canada moving into an intense rhythm as the two sides rush to strike a trade deal tonight. and tesla troubles blackrock voting to replac