♪ good morning and welcome to "street signs. >> happy monday. these are your headlines >> shares hit the lowest level in over two years, putting a drag on the airline sector after the german carrier blames intense price competition for a new profit warning boeing ceo tells cnbc the aircraft maker has confidence in its troubled 737 max model and insists the company will ensure the plane remains safe for the sky. >> expected to be before the end of the year. we're making good, steady

progress i don't want to put a specific timetable on it. again, we want to focus first on safety we will fly when it's ready to fly, when it's safe. u.s. commerce secretary wilbur ross down plays the prospect of a u.s./china trade deal at this month's g20 summit and tells cnbc that washington stands ready to impose further tariffs on beijing if necessary. >> we will eventually probably make a deal, but if we don't, the president is perfectly happy with continuing the tariff of movements we've already announced, as well as imposing the new ones, that is temporarily suspended. deutsche bank is preparing an overhaul of trade operations, including plans for bad bank, holding tens of billions of euros in assets.

well, it was a pretty mixed session for agent equities overnight, with one stock in particular, the stock index in particular, the hong kong index, rebounding almost as much as 1.5 percentage points at one point, before pairing some of the gains. this, of course, after the government backed down on passing the extradition bill overnight, it's been mixed, l n leaning slightly toward positive this is the heat map for europe. we're trading in just a positive territory here, trading on water is stoxx europe 600, fraction trading in the green most indexes trading positive, as well, with the exception of one in particular. that is the german index, dax, where i believe one stock in particular has been dragging down the index. >> that's right. they're down more than 12% right now. that is the very bottom of the

dax there. lufthansa is dragging down the rest of the sector the flagship carrier now expects full year adjustments to 2 and 2.4 billion euros. the company blamed overcapacity and price deterioration in europe, amid increased competition from the low-cost rivals it's set aside 340 million euros for tax risks. you can see the fallout from the comp petti competitives norwegian down 3.8 iag, down 3.2% boeing ceo said safety remains a priority that's after the "washington post" reported the 737 max could begin fresh flight trials as early as this week the u.s. manufacture faced huge pressure in recent months after two fatal crashes that involved the aircraft cnbc's phil lebeau caught up with the ceo at the air show

early this morning and asked about the times of the certification tests to get the 737 max back in the air. >> certainly, we expect that to happen before the end of the year, as i said. i can't give you a timetable that'll be governed by the inspectors we're keeping customers in the loops so they know exactly what's going on. it is important for us to focus on safety. we'll get it back in the air when it is safe. that's the most important thing. >> some airlines took this to me you're saying it is not going to be ready until december or so forth. you're not saying that, correct? you're saying that's the outer limit, but you believe it to be sooner than that. >> we expect it to be before the end of the year. we're making good, steady progress i don't want a timetable we want to focus first on safety we will fly when it is ready to fly, when it is safe that'll be the most important thing. >> phil lebeau joins us live from the paris air show. phil, a huge amount of news out

of the sector today. what are you focused on over the course of the day with the remaining interviews you have ahead of you >> well, i think the person we're beginning to talk to next is going to have something to say about the demand in the market, especially for commercial jet engines david joyce joining us we're going to talk about the ge-9x. first, mullhlenberg was talking about their hopes for getting the max get in service, potentially at the outer edge, the end of the year. what's your sense from talking with them, talking with airlines, how quickly we see the max return >> you know, as you can imagine, we're in contact with dennis and kevin and the boeing team every day. you know, we're very confident in the max as an airplane. you know, the 737 is just a workhorse of the industry. you know, i think it's going to be in service sooner rather than later. the faa, as you heard, announced today they're getting ready to do their airworthiness

certification flight test. following that, i'm sure there will be a process the faa and boeing are going to go through to ensure they're comfortable with the airworthiness then it'll go back in service. you know, i have great confidence that we're going to see this thing in service sooner rather than later. >> sooner rather than later. >> yeah. >> you have 500 maxes that are parked. >> yeah. >> that are with your ge saffron engines. they need maintenance before going back into service. >> absolutely. >> what does the process look like how long does it take? a week, two weeks for the maintenance, so they're ready to go >> to tell you the truth, we've been working on it since they were grounded. we've zero timed every engine relative to the maintenance. think of it as a great opportunity for us, to make sure we work with every customer, to get all the maintenance work they need done on the engines. we have teams in place to help them as they reintroduce the engine into service. we're confident it'll happen quickly. >> you're a huge part of general

electr electric when the last earnings report took place, there was a question about the max, and it was listed as a risk factor, if you will, toward q3 earnings do you expect the max and the problems there and this grounding to impact overall earnings for ge in the third quarter? >> i would tell ya, if you take a look at -- let's talk 2q now for us, you'll see our working capital, so our cash, obviously, is going to be impacted. we've guided between 200 and $300 million in ge aviation of working capital. that is just not liquidated. you know what i mean engines are on the ground. we're still shipping engines to boeing. >> you haven't cut production. >> boeing is building airplanes. when the airworthiness is reestablished, we can reintroduce the airplanes in service. i would say that you should target somewhere between 200 to $300 million in the quarter. depending how fast the airplane is recertified depends how fast

they liquidate the stock of inventory they have in seattle that'll impact our cash positively. >> this week, you've got a huge week that's going on in fact, you told me before we started this interview, you guys are looking at potentially a record year as far as an air show, in terms of orders coming in tell me about that. >> yeah. so, you know, we announced this morning that we're looking at conservatively $35 billion worth of new business, engines and services, in the show. i'm telling you, that's conservative if things go our way this week, and there's a couple other deals that have to fall, we could see ourselves going north of that by a reasonable number. you know, look, if you look at the fundament taals of the industry, 5% demand growth oil is stable, if not slightly deflationa deflationary adding a million departures every year we power 2/3 of the flights around the world this is a positive show for us we love our placement on our commercial products. i think we're going to be able

to show that this week with our orders. >> let's talk about this huge engine my photographer, bob pollock, is going to pull out, and we'll see this in the picture with you ge-9x. this will be on the 777x they're in the process of engine testings right now. >> right. >> there are reports there may be issues with this engine when it comes to the aircraft. >> sure. >> is there a problem with the ge-9x? >> first of all, the engine, as you can see behind me, this represents the state of the art for us on every technology front you can think of additive, ceramic majors, come positives. state of the art 10% more fuel efficient when the engine it replaces, the ge-90. this particular product, eight engines have been on test. we're 85% done we have 2,700 hours on the engine we have 450 flight hours on the engine so far. one of the last tests during the certification process is block tests. we run the engine outside of the normal limits with the intention

of -- and we do it for an extended time -- to measure safety and design. we found a component in front of the compressor that had more wear than we anticipated we're redesigning the part, making it more robust, getting the margins where they need to be when we do that, we'll prove we have, then retrofit the engines. the airplane will be flying by the end of the year, which is boeing's plan. with boeing, we decided to press the pause button if it is not durable, the customer won't get the value out of it. we'll redesign the part to make it a little beefier and durable. again, 2,800 hours already on this engine. we have taken these engines through the paces. we feel really good about it in this case, you know, prudence is the better part of valor here, from our point of view. >> overall, and you talked a little about this when you said, look, we're looking at at least

$35 billion, maybe north in terms of orders. how do you feel about the commercial market worldwide right now? >> i'm bullish i really am. '18 was a banner yoochlter ban growth we're looking at a 5% demand growth and passenger demand. load factors are at an all-time high at 85%, network wide. there is scarcity of seats, helping yield for the passengers oil is stable to slightly deflationa deflationary, the largest variable cost for customers. we're adding more departures adding over 1.3 million. we had an extraordinary year in '18. this is still a good year. now, couple that with military is a growth market for us. we're looking at a 10% compounded annual growth rate. >> marilyn houston is optimistic about what she's hearing. >> we're optimistic. through the middle of the next deca

decade, we're very optimistic. you have a cycle where we think military is a good growth opportunity. commercial continues to have strength, based on the numbers it is a good cycle. >> one more question i want to ask you about utx and the merger you have a megasupplier, if you will, to boeing and airbus do you sense that we are seeing more consolidation coming in aviation >> you know, phil, not to sound too trite, but the consolidation really has to demonstrate itself in the value of the consolidation, right from the value proposition of course -- >> can't be deals for deals. >> exactly deals for deals don't work tom and greg are working very hard to propose the value proposition of that emergencier. hats off to both of them they're great companies. we're always open to be looking to see if there is a value proposition that makes sense from consolidation view, as are most people in the industry. >> do you see that, maybe not just for yourself but the industry overall >> i really don't. there will be some other, you

know, ventures or something else that makes sense. i'll tell ya, for us particular lir particularly, we're a big player in commercial engines, military engines, and business in general in aviation. we feel good about our positioning. our board and new chairman are always open to opportunities for us to take a look at what we can do to add more value. >> david joyce, ceo of ge aviation we're in front of the ge-9x. they aren't lying when they say it's huge. it is massive. back to you. >> phil, thanks so much. phil lebeau live in paris. the u.s. commerce secretary ross poured cold water on the breakthrough of a deal with china at the g20 he was optimistic the two sides will reach an agreement eventually >> we suspended the talks, as you know, some weeks ago because we felt that things that in our mind had been agreed were no longer agreed.

so there was a backward movement we need to recoup that and then go forward and try to close out the remaining issues. >> what are the odds we get a deal, let's say, within the next two months or three months >> very hard to put timetable on things i think that we will eventually probably make a deal, but if we don't, the president is perfectly happy with continuing the tariff movements that we've already announced, as well as imposing the new ones that is temporarily suspended. >> well, the president is perfectly happy keeping the tariffs. meanwhile, u.s. chip makers have pressured the trump administration to ease its bound on huawei. executives from intel, qualcomm, and others met with officials from the u.s. commercial department to discuss the blacklist of the company

they say it is ntrying to protec american companies the ceo admitted he had not expected the impact to be so serious, but he promised there would be no large scale layoffs or cuts to r&d spending. sticking with trade, tariffs up to 70% on 28 different types of american exports. the targeted products include apples, almonds, lentils, and chemical products. the tariffs took effect on sunday the officials said it was in india's best interest. alex, thanks for being with us has the u.s. shot itself in the foot by trying to fight too many trade wars on too many fronts, do you think >> a great question. i think make donald trump has shot himself in the foot

clearly, from his standpoint, it is all about 2020 and getting re-elected i think what he would like to do is do a deal sometime before 2020 you have a deal, then you can take it to the electorate and fulfill your promises. i think if i were the chinese at this point, particularly post huaw huawei, i would wait and see i would drag my heels. i wouldn't necessarily sign up to a deal at this point. why would you necessarily hand the victory to donald trump at this point >> just in terms of the time line, you're saying that could mean we wait until well into 2020 before the chinese are prepared to really come to the table and finalize anything? >> i think it is perfectly possible it is all about bringm mbrinkma this point the imf have done calculations that show china with a chunk of the billion at 25% the impact on the chinese economy is probably only about 2% or 3%, in terms of gdp. it is not that big an impact it is all about confidence it is all about brinkmanship,

and it is all about intellectual property, which i'd like to talk about. >> you see that in the data. the actual gdp impact is ne negligible, but exports, for example, singaporean exports to china, double digit declines similar for all asian countries with exposure to china here. there are actual, tangible, knock-on effects what is interesting, financial mark markets, especially in the u.s., is more focused on what the fed decide to do, rather than what happens with the deal, no deal, tariffs, no tariffs. if you look at the stock performance for the month of june, it is the best month since october 2011 so far. >> that's right. that comes back to this simple fact that, actually, trade for both the u.s. -- well, particularly for the u.s china was a big trading nation it also has a very strongly growing domestic economy, with domestic consumption becoming much more important.

for both economies, the domestic sector is the area that's still growing. growing very nicely. i mean, in the case of the u.s., it is driven by wage increases, for example, which has been pretty powerful. >> again, it's domestic sector looking at the domestic sector, retail numbers on friday, very strong the control number was twice as strong as consensus on friday. it seems as though the market is focused on this narrative about tariffs, but fundamentally, the economy is still ticking along just fine. >> i hear you on that. i totally agree. there's a lot of momentum in the u.s. economy right now that's because things are actually trotting along very nicely still wages are a big part of that i want to emphasize that that's having a real impact at the margin for consumers, along with lower refinancing rates and all the rest of it right now, there are no real kind of -- apart from the trade war thing and the uncertainty and the confidence effect, there are no real kind of big clouds on the horizon so this bull market, we're in the tenth year of a bull market. we all know it is going to come to an end at some point.

it is a question of when this bull market in the short term could carry on a bit longer >> we'll leave it there. don't go anywhere. stay with us the london listed shares of shanghai security it is higher they have global depository repeer receipts on the shanghai first time foreign investors, outside of greater china, will have direct access to chinese shares tune in to catch our interviiew with the chairman, yi, tomorrow. on the show today, don't bank on a rate cut this year the fed has a prediction in a few minutes. (danny) let me get this straight.

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welcome back to the show goldman sachs has down played the prospect of a federate cut this year. the bank said the hurdle is wider than believed, despite

increased trade tensions goldman expects the fed would cut rates until it shows activities have significantly deteriora deteriorated >> the u.s. central bank is widely expected to keep rates on hold, but analysts anticipate the dot plot will show an increased amount of policymakers have moved to a rate cut in the coming months. but the fed is not the only central bank show in town this week the bank of japan and the bank of england are set to announce policy decisions on thursday alex is still with us. we were talking in the commercial break there briefly about the idea that we've seen a significant level of resilience amongst u.s. consumers going into the next few months, as the white house continues to talk about potentially imposing tariffs on the remaining $300 billion worth or so of chinese goods, do you think that that resilience might be very severely tested? >> yeah. it is a great question i don't think severely tested. i think it will be tested, is

the bottom line. so, yeah, i mentioned before that right now, the consumer is in a great place in the u.s. you have wage increases coming through. you've had pretty big tax incentives, partly reversing in some areas, but still a strong tail wind from tax and you have full employment things are looking great in the u.s. right now you can just see it by the number of u.s. tourists in europe right now it is a huge number. it'll take a while for that to unwind or dissipate. here's the thing, it is all about confidence confidence starts to wane when people start to feel it. they're going to start to feel it when they realize -- i mean, you made the point about, you know, sneakers becoming more expensive. they will be in fact, they already are. one of the interesting things for us is we can see in areas like food, for example, consumer staple companies reporting better pricing in the u.s. than they have for a while. that suggests that, actually, you're starting to see, just

generally, a move toward higher price in the u.s you won't see run away inflation. let's be clear about that. you'll start to see at the margin things getting more expensive, and consumers starting to feel that and wondering, what do i do next maybe i should be a bit more cautious about how i'm spending my money. >> it is the cost-push inflation coming through, and eventually biting when it comes to consumer spending you've said a couple of times the u.s. is in a great place why is the interest rate market pricing in two rate cuts by the end of the year? >> the market is taking a view it is interesting how if you look how stocks are performing right now, too, right, just recently, it is the defensive areas, utilities, real estate, staples, all performing quite well, right? we've had this volatile run. big sell-off in q4 rebound in q1. now, it is all about, okay, safety how can i be safe? that's why, at the margin,

investors are putting money to work in the areas. >> is the market not susceptible to pull back >> the expectations are so high for the fed to be dovish if they don't, it can leave people in a precarious position. >> i'm not sure expectations are so high yet for a rate cut i think there's a lot of debate, clearly. heard the goldman view earlier on it's quite possible they do cut, although at the margin, i don't think they will. this is a two-way pull, right? the economy right now looks great. continues to look great. that momentum could carry on to q3 and maybe into q4 it is finally balanced. >> just from the perspective of mr. powell, he's looking at this week and thinking, how do i avoid explicit language? i don't want to promise anything that i can't then deliver, presumably. >> that's right. yeah, it's sort of cautiously -- you know, they've been careful i understand that. trade war complicates the whole

picture. it is an uncertain environment, and has been for a while, hence the volatility market. bull markets don't die of old age. you need a catalyst f right now, there is no catalyst, beyond an escalation of trade war. in a sense, that's already kind of priced in >> in the price. >> yeah. my view is, short term, actually, markets could still do okay medium term, by next year, almost certainly looking at a bear market. >> yeah, indeed. it is a very big week for the central banking community, not just the fed for more news on central banks, don't miss our coverage of the ecb forum this week. we kick off tomorrow from sintra with the imf's former chief economist olivier blanchard and jean-claud trichet. coming up, we have a special guest. stay tuned for the interview. plenty more coming up from

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welcome back to "street signs. >> these your headlines. >> lufthansa shares are set for the worth day in five years, creating a drag in the airline sector after the german carrier blames intense price competition for a new profit warning. boeing ceo muhlenberg tells cnbc the aircraft maker has confidence in its troubled 737 max model, and insists the company will ensure the plane remains safe for the sky. >> expected to be before the end of the year. we're making good, steady progress i don't want to put a specific timetable on it. again, we want to focus first on safe safety we will fly when it's ready to fly, when it's safe. the u.s. commerce secretary wilbur ross down plays the prospect of a u.s./china trade deal at this month's g20 summit and says washington stands ready to impose further tariffs on beijing if necessary. >> we will eventually probably make a deal, but if we don't,

the president is perfectly happy with continuing the tariff of movements that we've already announced, as well as imposing the new ones that is temporarily suspended. and deutsche bank shares jump on report the bank is preparing a major overhaul of trading operations, including plans for a bad bank that would hold tens of billions of euros in assets. well, the picture for european equities today is mixed, if not slightly in the green for the most part. we've got the xetra dax tipping into the green muted gains for the early trading session for the start to the week this after a moderately positive week last week, as well. in terms of the news flow over the weekend, a little slight, but there have been comments from secretary wilbur ross to cnbc earlier today, also warning

a deal at the g20 is probably a high bar to get to the trade deal if anything, we should -- investors should look to more discussions when it comes to the two sides. in terms of sectors, a couple sectors we're focused on today one is the travel sector we have one name in particular, lufthansa, down more than 10% today. it is dragging down all the airlines also one of the reasons xetr xetra dax is relatively underperforming. focused on oil and gas, it's dipped compared to performance end of the week last week. deutsche bank is one of the names that is out performing today at the top of the stoxx 600. that is a breakdown of the european indexes it is a big week for macro data. watch out for comments coming out of the central forum the next couple days the president, mario draghi, will be giving a speech tonight. watch for headlines from that. let's take a look at currency today euro is trading a little firmer

to the tune of almost 1/10th percentage point pretty much flat 1.1213 is where we're at the yen is coming off just a fraction versus the usd. in line with the better sentiment in asian equities overnight. we have cable down at 1.2680 end of the week, we should know who the final two candidates will be in the run-off to be the next leader. u.s. futures, as well, how things are shaping up there. s&p, nasdaq, all the majors opening up in the green. later, you want to watch out for the treasury flows that will be an interesting one because the last time they came out, there was a lot of scrutiny on what china had done with their foreign holdings of u.s. treasuries we'll get a little more information on what they've been doing there later on of course, all eyes this week are on the all-important fed meeting on wednesday

deutsche bank shares are trading higher on report it is planning a sweeping overhaul of its trading operations, according to the "financial times. the move will see the german lender create a so-called bad bank to hold and sell up to 50 billion euros worth of assets. the bank will completely shut down or shrinking the trading measures it was working to boost profitability. alex is still with us. do you think that the big american banks are doing a better job than european count parts? if so, why >> it is a big question, easy answer yes. no question at all i think that is really interesting. the european banks and the u.s. banks is just a case in point about the difference between the european economy and the u.s. economy. think about the financial crisis and what happened after the financial crisis and how the u.s. banks and the whole banking sector responded to the financial crisis it was bang, bang, bang.

let's get stuff done that is the u.s. they get stuff done. in europe, it was, well, shall me, sh ashan't we? the government has been going through it for ten years it is a difficult place to invest now, we're getting something done, finally. finally, we got to the point where, you know, they realize that you can't just carry on you've got to do something quite radical. this bad bank idea, i think, is a very good idea it is long overdue if they do it, it will hopefully clear the decks and things can start again. >> that is one of the reasons deutsche bank is trading up today. more than 3% earlier on in the break, you were telling me you're focused on value investing. >> i'm not focused on -- >> or looking for value. >> yeah. >> i want to take it to the u.s. markets now. >> yeah. >> you know, we've seen a wave of ipos this year, not just in tech space but in food space,

for example. many of these startups are coming to market at fairly ma sure parts of their business >> yeah. >> are you seeing good value in these ipos there's been a big distinction between some of the secondary performers, if you look at it from name to name. >> yeah. so just to go back to -- to be 100% clear on something, for us, it's about future growth rather than what you're paying today. i like warren buffet because he is quotable and very wealthy, as we know. he says that price is what you pay, and value is what you get, right? if you think about that one, it is another one of these genius statements that makes a ton of sense in any market, right it is not necessarily buying things that are cheap because they may not be good value i'm not sure the european banks are good value they're just kpaecheap. it is finding situations where you can see a genuine runway you can see things growing,

improving. it is a powerful dynamic that will carry the share price going forward. we've had a whole bunch of that. your question about ipos, right, is a really good one there, it's about the price that you're paying and the value that you may not be getting at this level of price so really what's happening with the ipo market is everyone knows the bull market is kind of, you know, right up there you're seeing a whole twoosuitef ipos some are priced very aggressively some of them have become, since the ipo, even more expensive so we're at the point now where investors are losing sight of what constitutes good value, in my opinion they're pricing things too highly and not thinking of growth prospects in some of these situations talked about beyond meat briefly. classic example, to my mind, of investors becoming too exuberant about things it is always a question of, obviously, finding good growth situations, but also being

cognisant of what's already priced in and what isn't. >> it's not easy, is it? >> it's not. >> alex, thank you so much for spending the last 45 minutes or so with us on "street signs. that was alex, the head of global equities, from schroders. support for germany's social democrat party has fallen to the lowest level since 1949, according to a poll which puts angela merkel's junior coalition partner at just 11%. they've faced increased pressure to pull out of the coalition just two weeks ago, the leader quit the party after its poor showing in the european parliamentary elections. >> the five remaining candidates become the next british prime minister, spending discussions about brexit during a panel on broadcast channel 4, all but one, stewart, said a no deal brexit should be on the table the most hard line supporter of

brexit, rob, said the economic risks associated with no deal would be manageable. the man to beat, boris johnson, was a no show. he said debates with so many guests would be hard the next debate is slated for tomorrow gary woodland held off a challenge from brooks koepka to win the u.s. open. in his first ever golf majors victory, the world number 25 won with 13 under par. he denied world number one koepka from winning his third u.s. open in a row and wwe chief brand officer stephanie mcmahon has told cnbc that diversity brings innovation to businesses. speaking at cannes liolions, she added companies should listen to customers to shape their brands. we go live to sunny cannes

you had the interview with ms. mcmahon. what else did she have to say? >> reporter: let's talk about this festival and how diverse the conversation with mcmahon fit into the broader contest this festival is about creativity cannes lions recognizes the best campaigns have been put to wear on billboards, television, magazines, over the past 12 months so it is a huge focus for industry to have creativity. however, that's not enough for brands anymore they need to have societal impact they must stand for something if customers want to return and buy the brand and think fondly of the brand. diversity is very much on the agenda from a number of perspectives not just the brands but the advertisers themselves if they need to market to diverse crowds, they need more diverse teams in house to connect. when it comes to the brands, they need to be able to reach more segments, not just gender diversity. there is cultural diversity. diversity of opinion and ideas it is a huge challenge for the

industry when it comes to wwe, think of this sporting brand. it is effectively been male-driven for many, many decades. now, it is maximizing the potential of women 40% of the wwe fans are female, and the number is growing. to connect with the fan base, they need strong branding around women at the forefront of wrestli wrestling. wwe is a powerhouse brand. more shares, more likes than major sporting franchises in the united states, which is no mean feat, given how strong some of the sporting brands are in the states i had a chat with stephanie mcmahon, the chief brand officer of wwe, about their approach to diversity. >> first time in 35 years, our women main evented wrestle mania, akin to our super bowl at metlife stadium , and it was incredible this has been a movement in wwe

we call the women eh luvolution women are now superstars, just like the men. >> instead of divas. >> that was the transition it is all because of a movement that our fans started. it was called give divas a chance it trended worldwide for three days our audience specifically demanded more athleticism, better character development, better story lines, and longer matches. we just gave them what they wanted our women have been stealing the show every single opportunity that they get. we still have a long ways to go but, man, we are taking it head on. >> women in sport though, if you look at the numbers, some of the statistics about how it is connecting and the growth, it is still not anywhere near catching up to men in sports. >> no. so i have the research in the states, and women's sports are promoted, on average, 4%, as compared to men's sports >> that's not even double digits. >> not at all. people will complain, they're not selling out.

attendance is down ratings are down nobody is showing up how can they show up or tune in if they don't know when it is on i do think we need to change the way we promote women's sports. give them the opportunity. give them the spotlight. how many plays of the week have you seen recently that have women in them? you know, i think even with the women's world cup right now, there's more coverage than there usually is it's still not on par. >> reporter: wwe is interesting, and another perspective, as well, they've been making content for a long time. if you think of the advertisers and marketers doing things with social media these days, it is creating content so it is something that they've been at the forefront of they're putting great editorial onto social media platforms, and also maximizing the potential to share. you could see the amount of likes and shares for wwe as a brand. it is a stunning picture of what the industry is trying to achieve. many at cannes lions are trying to learn from brands like wwe.

all the suspects are here. philip morris, the advertising giants, publicist. they broke out at this event last year because of the expe e expense. they wanted the money to be spent on their a.i. system, to build it out across the agency they didn't come to the event last year, but they are back this year. also part of the mix, the chinese. t t tencent is here. thinking of global trade wars, how it is changing the way global markets might approach advertising, that is a big one many are keen to maximize potential of the chinese customer they want to get up close and personal with tencent, what they're up to in the marketplace, as well as government delegations the uk government has a big showing this week at cannes lions. they're hoping to connect with the chinese, other emerging markets, as well they're looking at a world post brex and it and where the busin models might evolve to it is a big week the other theme here is around technology the last year or so, you saw

this tension as the creators were unnerved by the rise of technology you'll see along this famous strip the likes of twitter there is a twitter beach at a cabana here. facebook, amazon they're effectively taking over the strip. the creators are saying, where is a place for creativity and advertising? this year, they've work on how to co-exist. while those creators are maximizing the data insights and using it to their advantage. i'll toss it back to you in the studio. >> very interesting and lots of themes for sure. we look forward to the rest of your interviews the next few days our colleague stateside will speak with several guests at cannes lions, including john legend and quibi ceo megawhitman. joanna coles protesters take to the streets in hong kong again, despite an apology from the top offial ayitusci

welcome back to "street signs. protest organizers have said almost 2 million people took to the streets of hong kong on sunday after the island's

government suspended but did not withdraw a controversial extradition bill chief executive carrie lam has issued an apology, as calls for her resignation grow louder and more frequent. this report was filed from hong ko kong. >> reporter: hong kong's opposition to the extradition bill is not backing down hundreds of protesters are staging a major sit-in at the legislative council complex this monday basically carrying on with the same message from sunday's mammoth rally. they're calling for a complete retraction of the bill and also resignation by hong kong chief executive carrie lam this comes despite the fact that the hong kong government decided to suspend this legislation, and also apologize for having caused a lot of heartache and controversies over the weekend while some of those in favor of this legislation still remain hopef

hopeful over the potential revival of this bill, american lobbyists here in hong kong thinks otherwise take a listen to terri joseph. >> some relief that it's been shelved, but people are not running away from hong kong. they're not lock, stock, and barrel, planning to leave right now. their concern is about what this could mean for the deteriorating prospects for hong kong, and a world sense that things aren't as good here as they used to be. >> reporter: there's no timetable at this point to give in by the hong kong government for the future of this legislation. in the meantime, with the 22nd anniversary of the hong kong handover from the british to the chinese just two weeks away, we'll be watching the next course of action by the hong kong government, as well as the protesters for cnbc, hong kong. meanwhile, dutch chemicals producer oci is forming a joint

venture with an abu dhabi company, combining revenue of $1.73 billion, and we spoke with the ceo earlier this morning fertilizer and abu dhabi, not two things that are necessarily synonymous >> i never dreamed i'd move halfway around the world to talk about fertilizer, but stranger things have happened i sat down in an interview with egypt's richest man and asked why this jv is so important. listen in. >> this is an industry that's not very proud that we can't achieve high single digits we have to do something to improve returns. one is consolidate our various manufacturing platforms, pull them together, and be able to serve our customers along

multiple geographic regions. this platform will be unique in terms of its ability to deliver to our customers the products in a timely manner and in a cost efficient way, in terms of mitigating freight costs >> of course, the family is very, very well-known in egypt and elsewhere. they have a finger in a lot of pies obviously, he was very, very involved, remember, back in the merger earlier this year, he divested himself from most stock and stepped back from the board. i asked about that decision and asked if he is worried about european growth. >> from a valuation perspective, you can argue that europe continues to be discounted vis-a-vis north america, but the whole market looks to be a bit running out of team. in terms of not just trade issues and all that, but the

growth in the u.s. has been going on for 11 years. all good things have to come to some slowdown at one point >> are we talking about a recession? >> not necessarily, but a slowdown, i think, is more realistic, to be expected, than continuous growth for another ten years. >> what's the most worrying thing to you within that dynamic today? is it individual trade spats like we're seeing between the united states and china? is it a leadership issue certainly, the geopolitical tensions are on the rise. >> so the trade -- trade is not helpful. at the same time, it is manageable i think people worry too much about the trade wars i think the world can live with some trade friction. it's not the end of the world. i mean, it creates some uncertainty, even for our customers, farmers in north ameri america, had a tough time deciding what to plant, corn or

soybeans had a lot to do with weather but more so had to do with whether they can sell soybeans to china or they will be handicapped by some tariffs that created an added complexity in the minds of our customers and our farmers in the u.s. >> you're particularly well-positioned to comment on that, in the sense that you're working with folks in the united states, so you see the impact not just of the trade wars but also on internal policies coming from the trump administration. where do you think we are today in terms of that space there is, as you say, a lot of uncertainty. >> i wouldn't call it that much uncertainty. i think trade creates challenges and opportunities. opportunities for arbitrage. there is the trade war with china. it is not helpful, the uncertainty is not helpful it is not welcome by the customers or by the investors decision makers. at the same time, i think it is manageable. >> having roots in this region,

uncertainty isn't something that would stop you when it comes to investment. >> uncertainty is our middle name we've gotten used to that. >> uncertainty is our middle name there you have it. that's egypt's wealthiest man, essentially saying there the trade wars aren't helpful but he is not terribly worried. >> certainly, uncertainty is the name of the game today, hadley thank you for bringing that all-important interview on the deals that are taking place in abu dhabi. look at u.s. futures before we head out. all of the three majors pointed to open up in the green. all eyes really on wednesday and what the fed decides to do there. elsewhere, that is it for today's show >> "worldwide exchange" is coming up in just a few moments' time

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a contrarian call topping your five at 5:00 this morning goldman sachs pouring cold water on the fact the fed will cut rates any time soon. could be there a fix in? boeing's doubled 737 max jet reportedly ready for a test flight again, as its ceo, dennis muilenburg, speaks out first on cnbc that's coming up on the show. target reeling from not one but two major outages over the weekend. we'll get wall street's reaction to those move fast. take responsibility. tim cook's n