. welcome to "street signs." i'm willem marx. these are your headlines dow futures point to triple digit losses as the brief relief rally looks to end after alphabet and amazon sink in extended trade. rbs misses third quarter expectations as the bank books another 100 million pounds of impairments. lafarge hholcim shares get lift on the top and bottom line the and raises its sales

guidance. and electrolux shares tumble to the lowest level in four years after slashing its demand outlook and blames the impact of u.s. tariffs european markets have been trading for just over an hour. it's been an incredibly weak session. as you can see, a real sea of red this is after amazon and alphabet reported disappointed outlooks yesterday dragging those two stocks down. filtering through to asia where we saw losses across that region europe is proving to be quite a victim as well in addition to those factors, plenty of corporate earnings in europe the stoxx 600 is down about 1.2% today. let's look at the sectors and see how the different groups are

faring in early trade this morning. as i said, corporate earnings heavily in focus with a number of different seshctors seeing companies report autos down 2.2%, in stark contrast to yesterday where the auto sector got a nice boost this morning valeo disappointing investors. chemicals down sharply, 1.8% basf reporting there travel and leisure at the top, up 0.4%. iag results, healthcare, food and beverage, utilities, the defensive sectors at the top as well nothing trading in green let's have a bit of a closer look into the single stocks and see what the big movers are. first let's look at electrolux willem mentioned earlier shares have tumbled this morning after the appliancemaker slashed its demand outlook for all markets blaming u.s. tariffs while forecasting higher raw material

costs for the rest of the year ba banco sabadell third's quart er fell by over 30% it did beat expectations sending shares higher. banco sabadell here trading about 6.5% higher. a relief there from investors. in the construction space, another stand-out performer is lafargeholcim, shares up 4%. big move there lafarge has reported better-than-expected earnings for this period beating on the top and bottom lines iag has topped forecasts reporting a small rise in profit for the quarter. they were hampered by fuel costs which were up by almost 15%. iag trading about 1.8% higher this morning europe's largest asset

manager, amundi reported higher profits for the period up 5% from a year ago. also in the financial space, rbs in focus after warning of a more uncertain economic outlook my colleague steve over at the desk, willem and steve picking it up now. >> steve sedgwick joins me for more on this british bank. is it all about brexit uncertainty? >> i think your skepticism is unfounded. this bank is doing okay. you and i still own 63% of it, which is not great news. the british government would dearly love to get rid of it like they did with lloyds. the path to recovery have been torturous. it's been smoother for lloyds. when we look at numbers, i found four or five things that make me think, i'm not so sure about

this story one, it's a miss it's a numbers miss. they were expecting 507 pounds, they came in at 448 pounds impairments rising so many times we talk to banks all over the world and say how are you looking in on litigation how do we look at impairments? we want to see that go as low as possible this is moving the wrong direction. impairments up to 240 million pounds from 143 million from the same quarter last year the core tier 1 capital ratio, nobody can argue with a 16.7 figure, but then disappointment elsewhere. the banks used to pay great fat dividends before we had the gfc. then they stopped. this dividend which they announced october 12th was

hopefully going to be followed up by another dividend announcement today but they got this news about brexit we all know it's coming. the first bank to specifically put aside money for brexit then there's good old-fashioned banking. this is where i had a problem with rbs all along they're not making as much money as everyone else i went back over the lloyds figures, i went back over the barclays figures this is what i found, nims i have a concern about net interest margins they apparently go up when interest rates go up i question that premise. the net interest margins at royal bank of scotland have come in underwhelmingly at 1.93%.

barclays, despite it going down again in figures still came in at 3.24. huge improvement over that 1.93. lloyds, similar path to rbs, 2.93 so barclays and lloyds are basically around 3 underperforming on the business they do. one more thing i looked at, the performance of the group is it underperforming or outperforming peers? actually it's not doing any worse or better before today compared to peers. barclays down 17% year to date lloyds down 16.4%. royal bank of scotland down 20% year to date a lot of that is in today's move and this takes me to valuation rbs trades on a price to book.

deutsche bank trades at 0.29 we believe the book is worth a third of what the market has it valued out rbs is at 0.65 barclays trades at 0.53. so it's sitting in the middle. my question today finally is should it have a valuation discount compared to other players. >> thanks for that detail? >> none whatsoever thanks, steve. amazon and alphabet reported third quarter results that missed estimates amazon issued a lore sawer sale forecast for the fourth quarter holiday season elizabeth joins us with the hits and misses let's start with amazon what you have been looking at what caught your eye >> the bad news for amazon which is contributing to that big drop is the miss on revenue revenues came in at 56.6

billion, below expectations of 57.1 billion the company lowered its guidance on sales for the fourth quarter. that's an important quarter for amazon that's when the company reports holiday sales. so if the fourth quarter looks weak, that has investors concerned. one reason the company cited is the decision to raise its minimum wage to $15 an hour. there were some bright spots in the amazon report. earnings per share came in above expectations $5.75 versus $3.14 we have to note aws, the cloud division, continues to boom. we saw sales growth of 46% year over year in that business not enough to stop shares from sinking after hours. turning to google. couple of big misses there

ad sales growth slowed that's where google's main revenue stream is. operating margins were lower than expected because of big investments the company is making one bright spot was the bottom line earnings per share were $13.06, compared to estimates of 10.42. we'll have to see if this weakness continues in trading today. >> you talked about the amazon cloud business booming what struck me was the growth in digital advertising. it seems like a whole new area that i don't associate personally with amazon >> that is one reason for the weakness in google, the competition that amazon is taking that's particularly in the search function. more people are going to amazon to search and that's where they're making revenue from ads. that's typically an area that google dominates in the market >> it will be interesting to see how they match up. so many areas these guys intersecting and now compete with each other. one other thing is to look at

the big macro picture. are these tech stocks representative of the broader economy or is this just about their performance within their own sector if you look ahead to facebook, that's the final one that has to report, you were in brussels earlier this week, the privacy argument, the regulatory environment, that will be challenging for facebook in the future >> it is a challenge for all of these companies. we're seeing regulatory action on google. last quarter google said the fine imposed by the european commission for its android monopoly essentially took a hit on earnings. it's likely that more regulation will be in the pipeline for either of these companies. facebook already facing its own troubles that's seen as a major dark cloud when it comes to tech stocks a lot of analysts are talking about it's important we don't bundle these stocks together like we used to because each is

facing their own hurdles from a regulation perspective but also growth in their businesses are coming from different sectors. where netflix is taking share is to some point amazon's loss. we're trying to separate that out and look at the f.a.n.g. stocks as one group. >> elizabeth, thank you. we'll keep talking about tech in the future, but right now let's have a conversation with leslie lebeau joining us from paris thanks for being with us i was talking to elizabeth about the tech sector, some regulatory challenges i want your view on that we heard from tech executives in brussels about regulatory environment here in europe versus the u.s do you think that that would challenge facebook's business model specifically >> good morning. it's true if you look at the f.a.n.g. name and specifically

to the parent company of google they face issues with the european commission for the last couple of quarters we had more and more tougher regulation when it came to the views of the data, the implementation of gdpr, so i think it will be behind us the action will move more towards the u.s. as the politicians will see what they can do and follow what european commission did >> a lot of investors are trying to figure out where we are in the global economy cycle one thing they look to is corporate earnings we had a lot of tech sectors earnings what insight have you drawn from those numbers you've seen so far about the broader macro environment? >> if you look at the guidance

of the most cyclical part of the i.t. component, exposure towards automotive, we can see there is inventory correction, there's a slight deceleration of that. if you look at the amazon guidance from yesterday, it showed that there is indeed a slowing down of the revenue, more on the international side so which we think is more or less the micro environment we've been seeing for the last couple of weeks and the distribution around that environment. i don't imagine the workers at amazon will complain about higher wages do you see that given this is historically a low margin company, do you see that as a threat to profitability based on the numbers you've seen out over night? >> there's a couple of headwinds

regarding costs. there's the u.s. postal package increase that will start next quarter. they'll have to compensate different cost issues with amazon web services, which we are seeing is more and more profitable with much higher margins, but also the acceleration of a new business on the advertising side, which will be a significant part for next year. >> one other head wiwind facing amazon is president trump's stance against the company do you think investors should be watching closely what the federal trade commission ends up doing? >> when you look at the main regulation risk that those companies are going to face, it's what the ftc will try to charge or not around that core

business, which is making them more and more stronger and to see what would be the benefit to the consumer welfare >> thank you very much >> thank you coming up, we'll be live from the investor conference in paris. we'll speak to mohamed el-erian. that's right after this break. can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. before starting tremfya® tell your doctor

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welcome back to "street signs. fiat chrysler agreed earlier this week to sell its magnetic car parts unit to a firm owned by kkr the deal is worth 6 billion euros. annette spoke with kkr's head, he told her his firm is cautious about italy despite this investment decision. >> we continue to see through the companies that we invest in quite a positive environment so the macro is still reasonably positive for what our companies

are doing. on a micro basis the companies are performing well. with that, i see the market continuing to run another 12, 18 months i look at the political risk, which is quite high. i think that could well have a more negative effect on the economy and on our businesses. at this point i think we're continuing to buy, but we're continuing to be cautious as we're buying >> any special regions or countries you're looking at? >> so we're quite positive on france we think the reforms that the macron government has started will have a positive impact on that economy so that's something that we would like to put capital behind we've always invested here in germany. we're going to continue to do that what about italy there's a lot of political risk associated now with italy. valuations are also not that high >> i think we have not seen the

valuations in italy to come down to a leveli ieyet where they reflect the risk from a more political perspective. overall i would say we continue to be a little cautious. >> he also explained how mucho an impact brexit uncertainty has had on his company's outlook >> what's affecting our business decisions is the uncertainty around brexit and we don't know what form it will take and how it will be implemented that's something that in all of our portfolio companies we're looking at it's something we're looking at for ourselves, how can we distribute our products throughout europe if we're headquarters in the uk there's a lot of uncertainty today that our industry faces what we're looking for is certainty. today we don't have that >> if you now look at political risk versus economic risk, which is bigger in your view >> no question political risk is

bigger >> let's look at the recent selloff and whether you think this is like now kind of the worst is over, and valuations are attractive or do you think one should still wait >> i think we have had some adjustments in the market. i wouldn't say that the valuations today are attractive. if you look at it from a historical perspective valuations are quite high. depends on where you look in the worl world. it's different in the emerging markets. we're cautious overall certainly in europe and the united states. >> is one factor for you being cautious is funding costs are on the rise we've seen that in the states. do you think that will happen in europe as well >> right now funding costs are cheap. that's available in large amounts. i don't think that will change any time soon. i think funding costs today are

not really driving our thinking. most of the debt that we take on we hedge, so we don't have a rate risk in the portfolio and i do think it's still available at conditions that are quite attractive >> that was kkr's head talking to annette there richard clarida says he supports higher rates. he said further gradual adjustment in the federal funds rate was appropriate he also said political pressure, it will in no way be a consideration in policymaking. and the chairman of investcor said he thinks it's the right time to start tightening >> a lot of tools used in the past, particularly after the financial crisis have been used, have maybe outlived their age,

and i think it's time for the tightening that the fed is leading. >> hadley gamble spoke with mohamm mohammed ed el-erian this mornig she is joined now by someone who may have a few things to say about that >> i'm joined now by mohamed el-eri el-erian talk about what we've been seeing the last couple of days is theparty over >> i don't think so. i don't think it's surprising that we've seen a spike in volatility i always say what took so long banks havea while.

if the markets wanted any reminders of what's going on, they got it from the ecb because despite losing momentum in the european economy, despite italy and emerging markets, despite trade we are still intended to stop our qe at the end of the year. >> when you step back, what are some of the known unknowns keeping you worried? >> i think this divergence theme is an important one. divergence is a different issue. we're seeing interest rate differentials between germany and the u.s. stretch to high

levels we will see more pressure on the fx markets there's an issue dealing with divergence the way to deal with that is to get europe to act on policies and pick up. the second issue is we underestimated liquidity risk. that's a message that's coming out in the last few weeks is liquidity risk is back investors need to pay attention to that. >> something that was dominating the news cycle was the u.s./china trade spat. in the last couple of days we've had concerns over the geopolitical risks, what's happening in the middle east, how that could impact markets and what's happening as well with russia. where do you see concern >> so i think trade remains an issue. i have been less concerned about it than others i think it's only a matter of time until china realizes what mexico, canada have realized and what the eu is realizing >> better come to the table.

>> better come to the table, because this trade issue could become a national security issue. if it does, it's harir der to resolve. maybe china can't do that. if they can't do that, the risk of a global trade war goes up. the geopolitics, if you look at russia and what's happening in the middle east, you don't see that in the oil markets. oil prices are down again. i think the oil market is saying, yes, it's regrettable but it will not impact the supply/demand fundamentals >> when you look at this in terms of the geostrategic, but also thinking about the personalities involved i call them big personalities, someone else said they would call them stroke meng men when you look at the midterm elections, we could see six more yearsicies in

the trump administration, a lot of people think this is great, but at the same time it has a geostrategic implication wh what keeps you worried >> big personalities have issues, but at least they can deliver on policy. if that policy is good for business, we like that that's how the market has been thinking so far. you need a major change in behaviors to alter this paradigm they also look at other personalities, venezuela, for example, and say those personalities make bad decisions. what the market does, it says give me the big personality, tell me which way they're likely to go. i know what to do with that. if we get a split house, split congress in the u.s., that's a different story. that's why these midterms are so

important. >> in terms of emerging markets, a lot of questions over whether or not they will end up more healthy as a result of what we're seeing and the fed tightening what's your take there >> i am a secular bull on emerging markets, but i don't think it's a good idea right now to take money out of the u.s. and put it into emerging markets. i do that with full recognition that the s&p has outperformed by 20 points which is huge. we haven't seen one more shoe that needs to drop in emerging markets. the u.s. has been exporting capital for a long time. now we have a different regime unfortunately it is emerging markets that are most vulnerable when the u.s. sucks in capital from the rest of the world >> final question, when you take a step back, and we talked about

you felt china needs to recognize and come to the table, make a deal like others have does that mean the trump doctrine is getting it right when it comes to trade >> i think on genuine trade issues, joint ventures, intellectual property rights, non-tariff barriers, these are issues that have been outstanding for a long time. it turns out that the approach which other people took didn't work it turns out if you played the non-cooperative approach and you happened to convince the world that you're willing to incur damage, that's what the trump administration said, i'm willing to incur damage at home to change this once and for all it turns out that gets the attention of people. now i wouldn't recommend it across the board you can have unintended consequences but on trade, it seems to have worked so far.

>> mohammed el-erian, we have to leave it there willem, back over to you >> let's look at the u.s. futures ahead of the market open we had a roller coaster ride over the last few days it looks like the three major markets are all going to open lower. the dow jones called down 290 points nasdaq looking to open 190 points lower the s&p 500 also looking to open softly, down around 40 points. not a pretty picturpicture. 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.

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welcome to "street signs." i'm willem marx. these are your headlines dow futures point to triple digit losses after amazon and alphabet sink in after market trade. mohamed el-erian said market volatility is back, but it is not necessarily bad news >> i don't think the party is over we're seeing a transition in regimes, one from where markets were comforted by ample

liquidity to recognizing vie r divergent fundamentals will be the drivers of asset prices. rbs misses third quarter expectations as the bank books another 100 million pounds of impairments sending shares lower. lafargeholcim shares get a lift on the top and bottom line and raises its sales guidance. and electrolux shares tumble to the lowest level in four years after slashing its demand outlook and blames the impact of u.s. tariffs >> a very weak morning in europe all four of the major bourses in europe trading lower we have the ftse 100 down about 1.3% the cac down about 1.9%.

so quite steep losses across the board. this is after a pretty grim handover from asia overnight on the back of weak outlooks from alphabet and amazon in after hours trade. that put a dampening on investor sentiment. in europe corporate earnings taking focus we have a number of companies reporting across sectors, and a few pointing out they have increased concerns around the outlook. they may have underestimated the impact of the tariff situation so a fragile feeling this morning in terms of investor sentiment. let's look at the forex markets and see how this is affecting currencies yesterday the u.s. dollar strengthened versus a broad range of currencies. a different picture for the u.s. seeing a nice bounce this morning the u.s. dollar strengthening slightly versus the swiss franc but not much movement the pound/dollar cross, again

stable there we are seeing some strengthening of the dollar versus the yen euro/usd flat on the day yesterday we had the ecb hold rates steady before i hand it back to willem, let's look at u.s. futures and see how they are trading futures are indicating lower after alphabet and amazon reported weak outlooks yesterday. poised for a weak start. back to you. mateo salvini warned the coalition government could take counter measures if the yields on italian bonds continue to rise he also said he would spend more if the current budget measures do not boost the sluggish economic growth. and the ecb president, mario draghi, said a continued selloff in italian bonds could hurt the country's banks and impact their ability to lend. >> these bonds are in the bank's

portfolios if they lose value they are denting into the capital position of the banks. that's obvious that's what it is. so you have or one may have -- well, i'm still not optimistic, but i'm confident an agreement will be found that basically you have a dent in capital position, then you have a weakening funding condition as well. all of this will translate into different lending terms. >> that's been the response from rome a powerful italian lawmaker has responded to those comments. he is an economist who heads the budget committee in the senate, he said it was improper for the ecb president to issue a warning about italian banks. giovanni tria has insisted

rome's budget does not threaten europe >> we need to be clear on what this represents. it represents a possibility to explain further and in more detail that what italy intends to do is not a threat to the eurozone or the stability of european partners. if italy grows, europe as a whole gains stability and it can profit from it from the italian point of view this doesn't mean a disrespect of the treaties, nor are we to leave a room empty in the european house we italians also built this house. there is no way we want to leave it >> someone who is here to explain why this is a difficult job is the head of european fixed income, david zahn

what did you think of mario draghi's comments? >> he said we will continue ending qe, start raising rates, albeit far out that's the mantra they've been on for a while the change in data that's been softer, that doesn't change that that's within the scope. the comments on italy, they are a regulator for big banks. it's appropriate they talk about that this will hit capital and banks. i don't think it will hit it that much. i think it's very appropriate what he said >> did you think invest got as much clarity about the ecb's plans for reinvestment as they might want >> i don't think we got as much clarity as we would like we would like to know how they plan to reinvest, but we got what we expected the ecb to give us they will do reinvestments they will continue to reinvest using the capital key, but they

won't announce something like operation twist or where they say we'll be buying long dated bonds. they are saying we'll continue to reinvest and we'll do that for a long time. that will go well beyond them starting to raise rates. >> let's talk about italy at more length. we started the countdown on tuesday to try to satisfy the european commission. what do you think happens over the next 2 1/2 weeks >> there will be back room discussions. what can we do can we make changes? i don't think italy will make major changes. they will tweak a bit. come down slightly then the eu will probably say you have come a bit towards us, you will deal with debt sustainability further out that's all right >> do you agree with the view i heard from economists that the plans of the italian government to stimulate the economy will only work in the short-term?

>> i think the plans they have -- because there's two different plans, one is le fwshgs a's pllega's plan and the five-star government, lega will boost gdp, but cutting taxes normally does generate longer term gains it depends on which party wins out. that's where the polls in italy are important. lega has gained since the election, so they hold the upper hand in this coalition if we were to see the coalition fall down or fall apart, that would be positive for italian bonds. that means we would be going back to polls and lega would be in charge. >> do you think the stimullmulu that these populists are aiming to deliver would have similar benefits across the eurozone

>> i think what we're seeing across the eurozone is populists are gaining the upper hand and you will see more spending from all countries across europe, except germany so i think you will see the loosening of fiscal policy that's positive for gdp growth, yes. but i think it will be minimal it's kind of more one for one as opposed to a multiplier effect >> senior leaders in lega, they say look, bdps, they get to a certain point, they're not acceptable i wonder, do they have a point where they say this is academic? investors don't really believe italy will default investors don't believe italy will leave the eurozone, this is speculation. do they have any justification for saying that? >> this comes back to one basic tenant i have on italy, does the eurozone exist without italy in it if italy were to leave, several

other countries would leave as well and the eurozone project breaks down. if you think they will remain in, you have to have some type of accommodation, and they will have to work towards this. so yields could go higher and we could see volatility but it's unlikely we would see defaults or italy leaving the eurozone. >> thank you very much for your insights this morning. spotify celebrates its tenth birthday this month but so far it's been a low-key affair last month the music streaming giant parted company with two of its senior marketers tonight james wright looks at the marketing machine behind one of the biggest brands in music and tech that has yet to make a profit here's a glimpse of the program. >> spotify likes to give listeners a choice a paid subscription service and a free one supported by advertising. positioning the advertising is

thanks to data >> we collect billions of data points every day based on how users experience the service and that streaming intelligence is used to create a better user experience but also used to help brands connect with those consumers in the right way >> the right way includes delivering brand messages in many formats including audio and video and display ads. ads are the necessary evil of a free service so spotify ensures they're targeted to make them additive rather than intrusive >> one of our most popular campaigns was with snickers. they have a brand negotiation that's widely known called you're not you when you're hungry we thought how does that apply to the streaming world we did a targeted custom audio ad campaign that identifies when

a user is listening to a music genre outside their normal listening habits ♪ you're always listening to pop ♪ >> targeting them with this custom ad in the style of their usual music genre, then had has a hunger hits playlist >> now spotify is giving listeners an opportunity to pick the ads they want to hear. >> we're testing a new product called active meeting. this is testing only in australia right now, but our thoughts are if we can make the advertising targeted to you, you are more engaged and listening and viewing ads only applicable to you the advertiser wins because they are only paid for ads listened to completion. we win because we have a more

engaged consumer linked to the advertising community. >> to learn more about spotify, tune in to "marketing media money" 11:00 central european time tonight. coming up, fifa meets today to discuss a possible new global club tournament. more on that after the break today is the day you're going to get motivated... get stronger... get closer. start listening today to the world's largest selection of audiobooks on audible. and now, get more. for just $14.95 a month, you'll get a credit a month good for any audiobook, plus two audible originals exclusive titles you can't find anywhere else. if you don't like a book, you can exchange it any time, no questions asked. automatically roll your credits over to the next month if you don't use them. with the free audible app, you can listen anytime, and anywhere. plus for the first time ever, you'll get access to exclusive fitness programs

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welcome back the son of murdered saudi journalist jamal khashoggi has left saudi arabia for the united states reuters reported that he arrived in washington with his family yesterday. he had been under a saudi imposed travel ban until recently we heard some news out of turkey itself president erdogan there has been speaking he says that saudi arabia is sending its public prosecutor to meet with the istanbul prosecutor on sunday, this weekend. he says he told the saudi crown prince that the 18 people arrested will be the key point of cooperation between the two

countries. he asked who has sent those 15 people to turkey that arrived there the day of khashoggi's murder he said the turkish authorities have more documents and information at hand, but he asks who gave the order to kill the "washington post" columnist and that saudi arabia needs to announce who the local cooperator is as well as to show where the man's body has been left u.s. investigators say they are working to narrow down the source of a series of mail bombs addressed to several well known individuals. authorities intercepted twices sent to two more people, actor robert de niro and former vice president joe biden. president trump has called for unity but attacked the news media for stoking anger in american society. in the uk, phillip green has been named as the businessman who was granted a temporary injunction for banning on reporting about sexual

misconduct and abuse peter hane made that announcement yesterday he said he made the announcement in the public interests. >> someone intimately involved with a powerful businessman using payments to conceal the truth about serious and repeated sexual harassment, racist abuse and bullying which is possibly continuing, i feel it's my duty under parliamentary privilege to name phillip green as the individual in question given that the media have been subject to an injunction preventing publication of the full details of a story which is clearly in the public interest. >> phillip green says he denies any allegations and said arcadia and i take accusations and grievances from premployees seriously. if the event one is raised, it

is thoroughly investigated fifa is meeting today to discuss controversial plans to implement a new global club tournament the concept has $25 billion worth of japanese softbank money behind it. adam reed joins me with more detail about this meeting. >> yes here is the agenda here's what's up for debate today at the fifa council. item four is of interest it's the future competitions, the fifa club world cup and the future nations league. this is controversial because there is a club world cup, a confederations cup, but fifa wants to revamp both competitions get rid of the confederations cup it is being suggested and make the club world cup a prestigious club competition at the moment, it happens every

day, real madrid goes, barcelona goes, but nobody takes it seriously. they want to move that and choose a different part of the calendar for it. there's t2 1/2 options on the table. one is to get rid of the confederations cup and make that a summer tournament every four years before the world cup that would happen in the country where the world cup takes place. expand itdays and with 2 clubs. the other option is to do the same thing but have it every single year. teams and players, we're hearing harry kane is tired this year for tottenham. so fifa pros say they will be behind this if players would be -- if their health would be

considered but uefa, european football's governing body are against the idea >> they're the chief critics >> yes they say we have a prestigious tournament where all the clubs play, it's called the champions league they think they have not been consulted properly and are being blackmailed almost into this whether or not they were going to stage a walkout has machibeen mentioned. there will be a press conference this afternoon about 12:00 central european time. so whether or not they'll get to a decision on any of these things today -- there may be even a global team league what that means for the world cup in the future, who knows. possibilities are endless, and maybe they should be and how much softbank will be involved in this or third party investment from the saudis as well many things to debate. >> poor harry kane and his

summer holiday where does that figure into this >> where are you supposed to get your rest? i don't understand >> we'll watch the results from that meeting later on today. to check in ahead of the market open on the other side of the atlantic, u.s. futures -- that is really quite a striking number with the dow jones there being called down more than 300 points nasdaq trading at the lowest level in years, looking to open down more than 200 points. and the s&p 500 also not looking to open strong down 45 points that's it for our program today here in london i'm willem marx. "worldwide exchange" is coming up right now do you hear that?

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it is 5:00 a.m. at cnbc global headquarters, put those rally caps away. wall street pointing to another big selloff following yesterday's 400-point rally in the dow. we'll find out what's weighing on the market coming up. and it's a sea of red overseas europe and asia both under pressure this morning. we're live in london and singapore with the latest. amazon shares are a big driver there they're taking a hit as earnings disappoint for that f.a.n.g. member, same for alphabet. we're digging in on that f.a.n.g. fumble. and oh