welcome to "street signs." i'm joumanna bercetche white house adviser peter navarro tells cnbc china must stop ripping off america when it comes to trade, beijing warns u.s. exporters will get hurt in this trade war >> they know what needs to be done the challenge, of course, is that they engage in so many egregious practices it's difficult to get a deal with china than it would be with mexico there it is. sweden's prime minister will

step down after he loses a vote of confidence sending the krona lower against the dollar. comcast gets busy buying up sky. the u.s. cable giant acquires over 500 million shares at its offer price and is looking to buy more to reach its 50% target. and next raises its full-year profit guidance after sales in august and september top expectations despite an uncertain year ahead good morning happy tuesday. let's look at how markets have been doing yesterday i should tell you that the dow saw its worst day in more than six weeks. this is on the back of a flurry of conflicting reports about the future of the deputy attorney general, rosenstein. we saw the u.s. index dow ended day about 0.7% weaker in the

session. china coming back from holiday, also slightly weaker performance there. you can see in europe, the overall index is bucking that weakness about 0.2% stronger an hour into the trading session. let's get into individual bourses. get deeper into the stories driving some performance today ftse 100 is very much the focal piece. we have lots of political noise, but the equity market is a function of currency developments we are seeing a revision lower in terms of german growth expectations ftse mib is up 1%. this is on the back of some reassuring comments from the finance minister with respect to that budget.

budget discussions taking place the next couple of weeks let's talk about the commodity sector i want to talk about oil yesterday was a strong day for the energy market. we had brent up 3% in trading. wti up about 1.8%. oil is now within four-year highs. that's after the opec meeting and lack of discussion there about increasing output on the back of increasing dwindling capacity that was the mood in energy. let's get back to one of our top stories, beijing says it is difficult for trade talks to proceed with the u.s. putting a knife to china's neck. the chinese vice commerce minister said it is down to the will of washington as to when negotiations can restart he said a solution to the dispute can be found if both sides are on equal footing the director of the national trade council at the white house

said it will be tough to reach a deal as china engages in so many egregious practices. but the door is still open >> our position is simple. we're happy to listen to the chinese whenever they want to talk the chinese are well aware of the problems which we've raised. ambassador lighthizer in a 400-page report outlined all the unfair trade practices that china does, in just one space, the intellectual properties space. in my own office we published a report on chinese economic aggression. the national security strategy in december 2017 called china out for its predatory practices and economic aggression. we'd love to have china come into the world of free, fair and reciprocal trade. south korea has struck a trade deal with the u.s. president trump called the deal a historic milestone in trade.

he added the agreement would help improve the trade deficit and give autos, pharmaceuticals and agriculture products better access to korean markets peter navarro hailed the deal and the progress the trump administration is making >> i think it's a bullish signal to the markets for certain industrial sectors but also more broadly for the validation of the trump trade strategy you'll see more cars, more ag, more pharma going from u.s. soil to south korea this is a special deal for me in a sense that i go back during the campaign to the president's jobs speech, june of 2016, where he promised to do what he did today, take that 2012 south korean deal, one of the worst we signed, and fix it

i think what americans love about this and as he keeps his promises so check another box there. it signals that the trump trade strategy is working as well. i think there will be more deals to come. it is all good from our end. a good day for america and a good day for south korea >> jamie dimon told cnbc he was concerned about the ongoing trade dispute. >> i worry about it. i just don't know. china has been predictable in retaliation, i think the market expected a tit-for-tat retaliation. they expect nafta to get done. it could get worse from here i tonight know i hope it doesn't. i hope they sit down, have rational conversations nafta, which we should do. canada and mexico are good neighbors of ours, and china i don't know what the conversations are like behind closed doors i think we should try to get things fixed the president raised good issues we're only talking about the process getting to the conclusion i hope their process works

>> as ever the focus topic is the trade narrative. let's look at how fixed income reacted to yesterday's developments you can see the ten-year yield is back very close to 3.10, almost at 3.12 the highs of may so that ten-year yield is creeping higher. two-year note is up to 2.84. again, ten-year highs as the fed continues with its hiking policy, there is a fed meeting tomorrow, they are widely expected to hike tomorrow. let's broaden out the discussion i'm happy to say that valentin joins me on the show to discuss. let's talk about trade wars. as an investor, are you -- how seriously are you taking this tit-for-tat between the u.s. and china? >> it doesn't keep us up at night yet, but we take it seriously. this is clearly the biggest

topic of this year it has all kinds of implications for other parts of the world emerging markets sometimes it dominates markets, though it has not rerailderailsy markets. so far the actions we've seen we're still able for markets to digest, that's on the back of a robust global economy. it is one of the key risk factors that could derail that economy. dare i say the bigger risk is what is happening with the ten-year yield it's back at 3.10. the last time yields were here, we had that selloff back in february are you expecting for something similar to happen again? >> it's a fair point if there's one other risk factor which i would expect to come later, not this year, it's the shift in underlying inflation

dynamics, behavior of central banks, as a result of that, a more sustained increase in long-term interest rates we're seeing some of that this year and recently again with the rise above 3% towards 3.10 in the u.s. and higher in europe if that persists, it will be influential for the evolution of markets. if you look at inflation, the gradual central bank path, the gradual hiking path is the one to expect. i wouldn't expect interest rates to spike substantially higher than we see today. it is a key factor >> you say you're seeing signs of inflation pick up at the same time the market is pricing in two hikes out of the fed for 2019 that's a bit on the low side especially versus where the dots are telling you they'll go the market is still low balling. >> yeah. it is. >> even though you say inflation is beginning to pick up. >> i think inflation will pick up and the fundamentals in the

u.s. are coming together to see a more sustained rise. i don't think it will accelerate what markets are expecting markets are always low balling the dot plot, they have been right to do so so the fed officials and their own forecast have to be adjusted rather than the market expectations i think for now it's probably a bit too early, but clearly in the u.s. there is a substantial risk over the next one or two years that inflation will trend higher and we get into a different market environment than what we've seen in recent years. >> it's interesting that you say that, that the risk is one of higher inflation, because recently the concern has actually been that of lower growth coming out of the u.s. because of this tit-for-tat trade war, but also the fact that some fiscal stimulus will peter out by the time we get to 2019

it is right now. >> i think it's a very fair point. in the end it's going to be one of the most important things for the next two years, this balance between a real slowdown in the u.s. or a pick up in inflation our expectation is that we will not get a u.s. recession over the next one or two years, and that as a result of this, given how height latight labor market well as other components that drive inflation, for example, oil prices, think about more trade on instructions, more import tariffs, over time the risk is for higher inflation rather than real recession in the u.s. however tsh however, it is true it's a long cycle. there are things to worry about. the growth pace will peter off as long as it continues to be in positive territory, probably labor markets will continue to tighten. >> all right lots more to discuss stay with me

the swedish krone that slipped against the dollar after the prime minister lost a vote of confidence in parliament. lofven will now step down. haven't el recent elections resulted in a hung parliament. lofven said he will continue to work to form a new government. the krona is one of the weakest performing g 10 currencies this year. coming up, comcast buys up sky shares in the millions because says it is staying in the market as its 50% target remains elusive. helped put a roof over the heads

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is the world ready for me? through internet essentials, comcast has connected more than six-million low-income people to low-cost, high-speed internet at home. i'm trying to do some homework here. so they're ready for anything. welcome back comcast purchased over 30% of sky shares in the market at an offerer price of 17.20 pounds per share. the cable giant says it plans to make further market purchases at the same price as it looks to

get to its target. julianna has been watching this story closely. reports are coming through, it looks like comcast acquired 30% of outstanding shares. they need to get to that 50% target given thepace of this news coming through, it seems like they're on a good course >> yes, absolutely this is a significant development in terms of the likelihood that they reach this key 50% mark we heard from comcast after the auction process concluded that they were out in the market looking to purchase shares, and this disclosure this morning confirmed they have purchased more than 30% and they will continue to do so. this material de-risks the possibility they don't reach this key 50% mark. and they have until october 11th to reach this level. with that process seen as lower risk now, the conversation is

turning to the merits of the due deal the two outstanding questions is what does fox do with their 39% stake and does hulu play a role in whether or not fox decides to sell into the offer. >> do you think we may end up in a quid pro quo situation where fox agree to sell their 39% stake in sky so long as comcast agrees to sell their stake in hulu >> that's an idea floating in the market sources have told cnbc reporters that hulu is in play just to put this into context, comcast owns 30% of hulu, fox and disney will hold 60%, given disney 90% if they go this way one other piece floated yesterday is this bargaining chip that disney agrees to agree with sky and comcast to pull disney's content from sky moving

forward. disney is planning to launch its own streaming service next year, it will look to exclusively run its own content on this streaming service. that's another bargaining chip in there >> sky traded significantly up because of where the offer came through. yesterday comcast shares traded down as much as 8% or about 12% weaker on the year as an investor, at what point can you expect to see synergies from this deal come through? >> these two businesses are complimentary. there will be synergies coming through on things like procurement, some various cost cutting, possibly some cross-selling. but investors are looking at how big synergies can be they're targeting 5$500 million worth of synergies that's a key question how quickly they can do this >> absolutely. all right. britain's next posted a rise in

first half profit. the clothing retailer also upped its full-year guidance, and next says it does not see a sales slowdown in august and early september as previously expected the firm forecasts a 10 million pound rise in 2018/2019 pretax profit shares are up today 8% glencore shares are trading higher after they announced an additional share buyback program worth $1 billion the timeline has been extended to february 2019 now the london listed miner announced the buyback program after u.s. government investigation announced earlier this year sent shares sharply lower. britain's shadow secretary for exiting the eu said the labour party is open to holding a rerun of the brexit referendum labor members are expected to ratify a motion today that commits the party to a peoples

vote in the event a general election cannot be secured the uk cabinet has reportedly agreed that the country's post-brexit immigration policy should not offer preferential treatment to eu ased system that subjects eu migrants to the same rules as those from outside the bloc willem is outside westminster. let's talk about the labour party conference it seems like the intention is there to hold a peoples vote, but they can't really agree on the wording at this point in time >> the motion that will be debated today, it was after many options made available to the committee. they decided what they would do is talk about the idea that if there was no chance of a general election, then they would be willing to have a vote they decided not to use the phrase on the terms of brexit.

they left that more open-ended so there is a possibility that the labour party would one day push for a rerun of the original eu membership referendum the leadership of the party, not seemingly that thrilled by this. they made it very, very clear what they would like to see is a general election they seem to back their chances were the country to go to the polls once again john mcdonald was pushing that narrative yesterday in particular >> we had a good, healthy discussion the prime minister made clear we will keep our calm, hold our nerve and press the eu on some criticisms that they have made but also to be clear that there are no credible alternatives that the eu has come up with we will continue to negotiate in good faith >> that was not john mcdonald, that was dominic raab, the brexit secretary, he was talking after a cabinet discussion at number 10 downing street

we saw quite a bit of unity from the cabinet giving theresa may a bit more time to tweak her checkers proposal. john mcdonald is keen on a general election as is his leader, jeremy corbin. they have been calling for this general election saying they do stand a good chance, that the conservative government failed in the last couple years of brexit negotiations. >> we respect that referendum. it was a democratic exercise, they took that decision, we respect it therefore the issue now is what deal the government brings back. is it acceptable or not. i don't think it will be that's why i just want a general election let the people decide in the general election, both the issue about the deal but also who will then do negotiations after that. because i don't think the government, this conservative party is capable of doing negotiations they had two years it looks like they significantly failed.

the labour party's man on brexit will be talking at that labour party congress in liverpool today. we have seen some extracts from his speech they are unsparing in their criticism of theresa may and her efforts at negotiations saying they do not think the deal that the government will bring back from brussels will meet their six key tests laid down some time ago as a consequence labour is expected to vote down that deal in the commons they're joined by even a small number of conservative rebels that will make life difficult for theresa may and could be the reason we do end up with another election >> that was my next question which is that the future of the checkers plan at this point, we heard last week that some people were saying the checkers deal is dead as a dodo at this point in time and shouldn't seemingly get a lot of support from european leaders, even though the expectation was that they would

offer some token support, that wasn't the case what is happening within the cabinet should we see a modified form of the checkers plan to salvage discussions taking place and also put off the possibility of a general election at this point? >> theresa may said on friday, in this quite bold statement, essentially asking the european union to give her government a bit more respect she said they would come back with some potential changes, some alternatives to the existing checkers proposal again, she also said she expected the europeans and dominic raab said this as well, he would like to see them come back with a counter proposal that's something european leaders so far have said they're not prepared to do they've been singing from the same hymn sheet for some time and they don't want to try to change any of the opportunities for the uk when it comes to dividing aspects of the single market >> as always, easy to come up with a counter proposal, but

actions speak louder than words. thanks for bringing us the latest valentin is still with us. sterling is trading at around 1.30, 1.50, why is it not lower with all of these risks that have emerged the possibility of a no-deal brexit, the checkers plan getting voted down, another general election, leadership challenge. how come cable is still up here? >> i think it's maybe comparable to what we see in markets and all the noise around trade and trump. markets are a little bit, you know, by now used to difficult, complex, noisy political problems we've run through a decade of them and run through multiple high-tense negotiating processes. these problems are at play but not new. we are in this sort of brexit negotiation environment for the last two years almost. year and a half. i think they take a position that first of all this deal is

not a shocker to global markets. it will have an influence on the currency, but it will not derail the overall global market environment. therefore the brexit shock is not big enough secondly they will in the end still assume that under high pressure eventually some kind of a deal is reached. it's always looking like everything is breaking down just before the deal. we've seen that, for example, during the euro crisis in many occasions. >> it always goes to the wire. >> exactly >> are you running any positions in the uk now? >> no positions. just neutral we see the risk factor there it's obvious, an obvious risk factor for the markets and the industry, we need to prepare, but we don't think this is the thing to do around the uk exposure >> even though it is creating

valuation opportunities there. many people point to the fact that ftse 100 is trading at cheap valuations versus counterparts but the risk as ever is choosing the timing when to invest. >> exactly these risks now do not justify taking a big punt. >> valentin, we have to leave it there. coming up, is he in or is he out? debate swirls around the future of u.s. deputy attorney general rod rosenstein more on that after the break this is john, and i'm with pactel cellular in los angeles. well, welcome to the demo... (danny dichter) in 1989, a new wireless technology was being tested for the first time ever. it allowed more users to connect at the same time while on the move. other wireless carriers considered the tech too expensive, but we saw it as the birth of reliability and the backbone of a company we all know as verizon.

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smarter business tools for the world's hardest workers. quickbooks. backing you. welcome to "street signs." i'm joumanna bercetche these are your headlines this morning. white house adviser peter navarro tells cnbc china must stop ripping off america when it comes to trade, beijing warns u.s. exporters will get hurt in this trade war >> they know what needs to be done the challenge, of course, is that they engage in so many egregious practices it's difficult to get a deal with china than it would be with mexico

there it is. sweden's prime minister will step down after he loses a vote of confidence sending the krona lower against the dollar. comcast gets busy buying up sky. the u.s. cable giant acquires over 500 million shares at its offer price and is looking to buy more to reach its 50% target. and next raises its full-year profit guidance after sales in august and september top expectations despite an european markets are trading in a slightly more positive tone than we got out of u.s. equities yesterday. we had the worst day in months for the dow which ended the day about 0.7% lower the picture in europe is positive up about a quarter percentage point this morning

let's switch into individual european markets and break it down we have the out-performer today is the ftse mib index, up 1% you can see up more than 200 points that's on reassuring comments coming out of the finance minister there suggesting they are intending to adhere to the 2% deficit target when it is published in the next couple of weeks. that's helping lift italian equities german equities lagging a bit. trade concerns biting there. annette is at a business conference there where some businesses are expressing concerns about export growth cac is up and ftse 100 also up you can see pretty much the dollar is a mixed bag. generally trading on the back foot versus the euro and sterling a bit weaker there versus euro/dollar. sort of teetering around the

flat line. cable up at 1.3130 despite all of the developments that have taken place the last two to three days, vis-a-vis the brexit discussions. cable around 1.3130, a few points higher than it was when it looked like a soft brexit scenario was not in sight. all eyes will be on the two-day meeting for the fomc they're widely expected to hike interest rates that's something we'll watch out for on the macro side. equity markets are pointed to open up higher dow seen opening up about 30 points higher. nasdaq about 3 points higher a lot of volatility for the dow yesterday especially with the headlines on the future of rod rosenstein on that story specifically, he does still remain in his job following a day filled with conflicting media reports that he was resigning

president trump said he will meet rosenstein on thursday to discuss his future tracie potts joins us from washington i think the question everyone wants to know and get from this is whether or not it will have a bearing on the mueller investigation. if mr. rosenstein loses his job, what does that mean for the mueller investigation? >> if he resigns, if he's fired it means he's no longer in charge of that investigation because remember the attorney general, jeff sessions, stepped aside a long time ago. rosenstein is the guy who is in charge of making sure this investigation continues. assuring the integrity of the investigation. president trump has so often said that the investigation is unfire and railroading him essentially. so if rod rosenstein goes, who is in charge of that investigation? it would have to be a third person now it would also raise questions about whether the president is trying to get rid of people who are running this investigation. there are those inside the white house reportedly urging the

president not to fire rosenstein as much as he may discllike himo how he's overseeing the investigation, because that would begin to raise questions about whether the president is trying to interfere in that investigation. this all came up on friday when there were reports that rosenstein had talked about using the 25th amendment to oust the president from office, secretly recording the president. he denied that, but then this call to the white house which now because of the president being in new york has been pushed to thursday >> of course it does raise questions about his own impartiality there brett kavanaugh has given a rare interview denying all allegations of sexual assault. he rejected the claims calling them false accusations this as president trump continues to support kavanaugh saying he's with the nominee "all the way."

you're still with us, what is the latest on the kavanaugh situation as well? this is another one lingering in the background and so far he has denied the sexual assault allegations. his nomination is looking uncertain at this point. >> our nbc news/"wall street journal" poll shows he's the most unpopular nominee in decades. his popularity has taken a hit after the initial accusations from dr. ford in california. she will be here to testify along with kavanaugh on thursday about her claim that he assaulted her in high school he absolutely denies it. another woman told the "new yorker" that he exposed himself to her in college. he denies that as well now an attorney for a third accuser says she'll be coming forward in the next 48 hours to talk about similar allegations which he also denies kavanaugh says he is not giving up he's going to fight for this nomination he will fight to clear his

reputation, defend his reputation and clear his name. the president is sticking by him. there are people on capitol hill, lawmakers here on both sides of this, women who insist these victims, these accusers be heard. men as well who say they want a fair hearing here for both sides. also republican supporters of cavanaugh who say democrats are pushing false accusations and trying to railroad him so we'll see what happens. the next step in this is going to be either the revelation of that third accuser before thursday or thursday's hearing >> lots of moving parts there. tracie potts, thanks for bringing us the latest. iran's president has told nbc that he will not hold talks with president trump during his time at the u.n. general assembly in new york speaking to lester holt he said the sanctions made any talks

impossible >> translator: there is no such program for a meeting. mr. trump did not create conditions necessary to bring about the atmosphere conducive so a meeting >> mr. president, you and all of us witnessed the united states president, president trump travel to singapore and sit down with kim jong-un, a country that does have nuclear weapons. i'm curious how you view that meeting and if there is somewhere a model in there that might broach an opening for dialogue between iran and the united states. >> translator: the north korean model cannot be a correct model because we cannot draw such comparisons. this is in the hands of the trump administration for it to seize its threatening behavior towards iran. >> the u.s. is reimposing sanctions it says are meant to force iran to stop its missile development, and end support for terror groups. the u.s. made it clear that it wants to bring your oil exports

down to zero do you think that will happen, and how will you respond if it does >> translator: the united states is not capable of bringing our oil exports to zero. this is an empty promise and it's a threat that is empty of credibility. >> some of the statements from iranian officials have given the impression that iran might move to shut down the strait of hormuz, to block all exports from the persian gulf is that something you would consider >> translator: if the united states wishes to use force in order to sanction the petroleum industry of iran, it will certainly see the appropriate response we do have the power to secure our own waterways, and keep our waterways free. >> is that a warning to the trump administration should they take that as a warning? >> translator: this is not a warning.

this is a reality. if the persian gulf waterway, which is to remain free and secure, it must remain so for everyone. >> iranian sanctions and a reluctance by opec and russia to raise output sent oil to new highs. >> we have always said to all of our customers globally that we are ready to supply whatever they acquire in terms of additional balance and make sure the market is balanced and there's no shortfall saudi aramco has a maximum sustained capacity of 12 million barrels per day. and we still have almost 1.5 million barrels of spare capacity today that is available and if required to offset any shortfall in the market.

>> do you have the ability to get to 12 relatively quickly if the world needed it, if prices were to spike, as our president has referenced opec needs to bring prices down, do you have that capacity? >> as you know, we have the reserves, 60 million barrels by third party, that's available to sustain that maximum sustained capacity that capacity is available, some of it in days, some of it in weeks. >> how many barrels do you believe will come off from iran? >> i don't want to speak about iran, depends on containment from other countries and production we are saying we have the barrels to meet any shortfalls from our customers

>> we were at opec and the announcement from opec in june was confusing to many because it basically gave a proportion for what each of the opec members could increase capacity. under the opec agreement as you understand it, how much would saudi arabia and saudi aramco be allowed to increase capacity under the opec deal? >> i don't want to talk about opec agreements, all we are saying and his excellency the minister of energy, we meet the requirement of our customers in terms of additional barrels, so far we have not failed in meeting the customer's demand. >> do you feel the pressure from president trump's comments about demand, supply and opec? >> as i said, from our side we need -- we have to satisfy our

customers in terms of additional barrels they need to make sure stable market is maintained, stability of the market is important for saudi aramco and for the kingdom. his excellency announced a couple of times that the stability of the market is something that is of great importance to us we'll continue to play a role and making sure that the market is stable. additional barrels will be available. and i think spare capacity, which is the highest in the industry is available within the kingdom. >> that was the ceo of saudi aramco speaking to brian sullivan there bp says the u.s./china trade war could create an oil demand shock in 2019. they say crude markets could tighten substantially until the end of the year. they predict the rebalancing

will continue next year. lots to discuss here i have the head of natural resources research at goldman sachs joining me we talk about oil a lot. this morning is another example of us referencing the energy complex and the fact that oil is back to highs not seen in a cup of years now my question for you is why have the oil stocks not enjoyed a similar amount of performance? if you look at the energy sector in europe, we're up about 1%, 2%, in line with the stoxx 600 it hasn't done much. why is that the case >> it's a good question. also when we take european big oils, earnings have been rephrased up for 2019 by 14% over that same period. these stocks have materialized the reason was a poor set of second quarter results poor versus expectations,

particularly on the earnings side due to a variety of reasons. the most important of which is the delay in gas pricing a lot of the fgas gets sold on long-term contracts and reflects the oil price is six and nine months delay that's why the result will be much stronger, particularly as we go into winter this year with a very tight global gas market with growing volumes and the high oil price >> does the fact that oil is so backwardated right now, contracts are trading so much higher in price than medium and long-term contracts causing you to recess the outlook as companies have to require some of their forward expectations of where oil prices will be >> i think backwardation is key to the sector performance. if we look back in history what we tend to see in backwardation, when the back end of the oil price is lower than the front end, the big producers tend to perform very well because

backwardation provides a barrier to entry to new competitors. it continues to engender capital discipline, and it brings positive earnings revision for most of the 2000s, it was the smaller -- >> the incumbents. >> yes and the oil services that benefited from the excessive level of activity. >> what are some names you're looking at here that you think are good buys? >> the broader integrated oils, big oil will be the sector that performs best in the coming years it was the best performer in the '90s in a similar backwardated environment with capital discipline i think that will be the case again. on top of it another key theme that is emerging is the low carbon theme in a low-carbon environment with a push towards gas, with a push

towards petrochemicals, with a push towards renewables, i think the sector will remain capital disciplined, and we will see very good returns in the broader height of carbon industry with less competition and tougher financing for the new companies. >> when you screen for companies how closely were you looking at decisionmaking on iran we heard from total recently that they decided to stop all activities in iran ahead of the sanctions coming up in november because of potential ramifications. do you think from a business perspective that was the right thing for them to do >> from a business perspective none of the big oils have material exposure to iran in terms of production or future projects, which means effectively they are in many ways isolated from their decision they were buying some iranian crude through refineries, but it

was a small amount, the benefit was minimal, and in comparison the risk of taking on those sanctions is much bigger so i think it's been a rational and necessary decision from big oil to stop buying iranian crude and to stop thinking about any project in the country for the moment and the impact is negligible >> bringing it back to the macro, do you get the sense out there there's a belief that higher energy prices are with us to stay? >> i think higher energy prices that we saw in the last two, three years but possibly lower than what we saw in 2012, 2013, 2014 are here to stay most importantly high return for the big oil companies i think is what we will see in the coming years as big oil becomes again a new oligopoly like the seven

sisters that can be the only companies getting the financing of the mega projects that the market requires for the next 10, 20 years >> sounds like the tech industry in the u.s thank you very much for joining "street signs" today make sure you join our colleagues today on "worldwide exchange" for an interview with ben van burgen. coming up, german growth forecasts are lowered as the business lobby cites trade tensions we'll be live from berlin after this break people tell me all the time i have the craziest job, the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera.

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welcome back to "street signs. the head of the wto said a collapse of the world trade order would cause more economic uncertainty and harm growth. in a speech made in berlin, roberto osvedo said it is also important to reform the wto and that he's counting on the eu and

germany to support his efforts he is speaking on a panel with angela merkel. we are getting some comments out of mrs. merkel and she is saying that on trade, multilateral trade system is still facing huge challenges, but that they're saying eu is trying to have a successful structured dialogue with the u.s. on economic issues, that eu is protecting germany in the trade dispute with the u.s., and she also says we need china but we also need fair competition as well we see china as increasingly becoming a competitor in these global markets so some interesting comments from merkel on this panel. let's get out to annette standing in berlin you've been following the headlines coming out of this conference this morning. i think what strikes me is that it seems to be the case that german industries are

reassessing the outlook for german growth over the near-term on the back of slowing export growth and expectations. we heard from mrs. merkel, she pointed to the fact that there are secondary effects to be expected from trade. what is the mood on the ground >> actually people are concerned here in berlin people are concerned about what could be the impact from an escalation of the trade tensions on the german industry more than two-thirds of the jobs in germany are export related and are depending on companies exporting their goods to the world. we have a huge interest here in germany that the world trade environment is actually in a good shape having said that another major concern is clearly brexit. our economies are so

interlinked, and there is so much supply chains which are like going back and forth between the uk and the continent especially germany and this uncertainty is really bad also in addition to -- for german companies we heard last week that factories will be shutting down for a month after the official brexit date because they don't know what will happen. clearly any big investment decisions for any company will be stalled until we know what will happen. that's what the german industry is feeling german companies are producing all these capital goods. if the demand is going away, they also have a bad time. that's why they're downgrading the growth outlook for this year >> i should tell you we are

getting more headlines from chancellor merkel about brexit she says it is not clear exactly what britain wants at this point. so there you have it annette, thank you for bringing us the latest from berlin. she's also said that october will be a decisive phase in terms of the brexit discussions. let's take a quick look at u.s. futures before we head out for the day. yesterday we saw a bit of volatility in u.s. equities on the back of some uncertainty about mr. rosenstein's future. today the dow is opening up about 40 points higher, nasdaq about six points higher. all eyes on the fed meeting. that's it for today's show i'm joumanna bercetche "worldwide exchange" is coming up 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.

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oil alert. crude oil continuing its surge higher shell's ceo weighing in on the big move. president trump speaking before the united nations later on this morning. we'll let you know what to expect. a big moment for brexit. a major meeting is about to get under way. we're live in london with the latest a pair of high-level departures at facebook. and starbucks making big changes in an effort to jolt sales. the details ahead on this tuesday, september 25th as "worldwide exchange" begins right now.