. welcome to "street signs." i'm joumanna bercetche >> i'm julianna tatelbaum. these are your headheadlines. u.s. stocks snap their winning streak as president trump says there is still a long way to go on trade talks with china. >> ericsson shares slip as the telecom company's second quarter operating profit misses estimates despite strong momentum in the 5g business. swatch ticks higher as the company eyes a strong end to the year in key markets after the

turmoil in hong kong hits the swiss watchmaker's first half sales. chipmakers gain ground as dialog semiconductor raises its guidance and asml forecasts solid growth for the rest of the year good morning top of the hour on "street signs. let's go over some price action we've had over the last 24 hours ending with the wall street moves yesterday. what we saw on wall street is u.s. equities slipped for the first session in four days the dow ending about 23 points lower. a tenth of a percentage point. a fraction weaker as we get into the heart of the earnings season the drops were bigger for the s&p and nasdaq, but still about a third and a fourth of a percentage point the focus has been on earnings season with some of the key

banks reporting yesterday. goldman sachs, jpmorgan, wells fargo looking head we also get bank of america one of the ones you want to watch out for. as we were talking about, the focus is back on trade more commentary out of the u.s. president suggesting that they could look to impose more tariffs on china that's weighed on asian equities overnight. in europe the picture is in the red. ftse 100 trading down by a quarter percentage point yesterday the ftse was the out-performer. yesterday the theme in the uk was about that move in the pound. the pound briefly dipped below 1.24, inverse correlation to the ftse 100 that helped give the ftse 100 momentum yesterday today the inverse is happening ftse 100 is trading weaker in a half hour's time we get inflation data watch out for that after strong wage data. xetra dax below the flat line. cac 40 also weaker ftse mib just above. we are also getting into the

heart of earnings season here in europe today is a heavy day, but in terms of the break down, oil and gas is trading right at the bottom down 1.2%. we are continuing to see drops on the spot price. tell l telecoms, we're focussed on ericsson this morning. that's a name dragging down that sector banks down 0.41% one in particular is swedbank, not able to put money laundering concerns behind them at the top, technology with some key names we're looking at >> i want to give you a closer look at a couple semiconductor names. starting with dialog semiconductor. they raised their guidance they said second quarter

operating profit will be higher than expected thanks to stronger revenue and gains from its asset transfer deal with apple dialog shares trading 3.3% higher asml reported an 18% fall in quarterly net profit and forecasts lower than expected sales for q3 amid turbulence in the semiconductor market the dutch chipmaker maintained its full-year guidance and says it still expects 2019 will be a growth year. asml shares trading higher to the tune of 3.3% markets taking confidence in the fact they reiterated that guidance shifting gears to the watchmaking space. profit at swatch fell 11% in the first half as political turbulence in hong kong hit sales. the swiss watchmaker says they expect strong growth in the second half due to demand in its key markets. swatch is trading at the top of the stoxx 600 this morning

very positive reaction to those results. we had a chance to speak he to the ceo earlier on on "squawk box. he weighed in on the situation in hong kong, the biggest export market for swiss watches >> we sell double digit liess. you have less people coming to hong kong, less chinese people coming to hong kong, so consumption is lower tats n our brands are well dropped and represented in mainland china. so we compensate this through sales in mainland china. the only little problem is that in hong kong you have better margins. you make more profits. there are no taxes so that's the little thing that makes it a little bit more sour. otherwise, okay, a little bit of impact, but this will not make any big, big noise for the second half of the year for us

bruno lemaire called on g7 countries to find an international solution to taxation he made the comments in paris as he welcomed finance minute centers and central bankers from g7 countries washington and paris are engaged in a spat over tax after french senators approved a bill that will see a 3% tax levied on large tex firms that do business in france. steve joins us live from france, on the outskirts of paris. i had a look at the g7 program it looks like this year the theme is all about inclusive capitalism where does digital taxation fall into that. >> it is the truth of the matter is, we're here about 30 odd minutes north of paris it's a stunning location this fairer capitalism tag line

is very important to face populism down with something new, an alternative and bring people in. that's not the key issue here. there's a couple of major issues one is the rise of global protectionism. and the creaking architecture, which is governed europe and the world for the last 75 years. it was 75 years ago as of the 22nd of this month that the bretton woods agreement was announced that has been the role model for global governance. what is replacing it and do we have something else which is more inclusive, especially of those emerging nations such as china and india who are not even part of the g7 lemaire addressed this last night. >> today bretton woods is contested by the two major world

powers, by the u.s. and by china on a different matter, but this comes from the two major world powers >> isn't that interesting? from within the u.s. and from without china, g7 is under a lot of pressure. you have to say is this the right body to make those global decisions? should it be g20 or is g20 too big and unwealdy as well? there's a lot of question marks about where we go forward. every time a country tries to do something unilaterally it has a huge ripple effect and ramifications. i saw jay powell strolling along towards the castle here. he made the point last night in paris that every time the fed does everything, it has enormous ripple effects for the rest of the world. joumanna you know about that global dollar denominated debt, so the ramifications coming from dollars moved is enormous.

going back to clear and present dangers, a salacious spat going on, everybody likes a spat, mr. mnuchin and mr. lemaire are due to meet here this morning to iron out some crinkles and the fact that this tax the french are thinking about bringing in for the global internet, technology companies as well, will that disproportion naturalnadisproportionatel affect the u.s. companies? well, yes. let's hear what lemaire said about that >> the u.s. are one of our closest allies they will remain one of our closest allies but they are ready to use sanctions against france instead of trying to sort out an issue through discussion and

cooperation. our view is that it would be far more preferable to sort out that kind of difference through discussion and cooperation instead of opening a 301 section and threatening the use of tariffs. >> that was the host of this meeting, bruno lemaire talking about the spat about taxation on technology companies and would it be wrong of me to suggest that basically pressure on governments around the world to find revenue raising opportunities has never been more paramount with the huge amount of debts around would they be looking at the technology sector as a cash cow as well? everybody wants a little slice of that pie, don't they? so wherever that money goes home to be churned into buybacks on wall street of whether some of that money stays in paris or goes into the coffers of the united states, that's one of the big battles that people don't

quite put it into those terms. everyone wants a slice of the pie. >> it will be interesting. we had a guest yesterday on the show who said it will be impossible to get an oecd level solution without the u.s. coming on board it will be crucial to see what mr. mnuchin has to say as the g7 meetings go on thanks, steve. that's steve live in paris ursula von der leyen is set to become the first female president of the european commission after she received 52% of support from meps the yooutgoing german defense minister called the job a big responsibility and vowed to work for a united europe. after her win, von der leyen said it was important to preserve the pro-european center ground let's talk about this more i want to bring in the chief economist from barenburg let's start off by talking about her mandate. she secured 383 votes, that's

much less than her predecessor, juncker got at the time. many people are saying she had to rely on some of the non-mainstream parties to get over the line. what sort of implications will they have on her mandated in the future >> of course it was a secret ballot, so we don't know who voted her into office. she probably received almost all her support from the mainstream factions the reason that the greens mostly did not vote in her favor has little to do with policies but the process and how she was nominated. so i think over time, when the discussion is about issues rather than about the process, how she was nominated, that the greens will come on board so that the four big mainstream groups, center right, center left, liberals and the greens will work together so that they will not have to make serious

concessions to the populists on the left and the right to pursue policies >> was interesting in the speech she gave before the vote, they specifically gave ambitious targets on c o 2 reduction plans, all of this targeted at the greens and the more leftist parties and in the end the socialist party did in theory buy into her nomination. at the end of the day, if she can't deliver on those particular items of agenda that she set forward, the populists and the non-mainstream parties will be quick to attack her. >> the non-mainstream parties will be quick to attack anybody and that's a given we don't have to take much care of that issue. the most interesting thing about her speech yesterday, it came from a conservative german woman. angela merkel has never espoused

these ambitious targets for climate change management. she never espoused this european unemployment reinsurance scheme. of course the president of the european commission does not have very much power in europe, but the fact that these ideas are now promoted by a conservative german woman with high office could actually help the german conservatives to take the hurdle and start endorsing some of these ideas. in that sense her speech yesterday may make a difference in the european policy discussion and move europe a little bit forward >> in addition to the agenda item set forth on climate change, she said she would interpret fiscal roles with full flexibility. italy comes to mind rite away. what are the chances that she actually delivers on this pledge to exert a much more flexible

approach to fiscal policy? >> the eu has already been pretty flexible in its dealings with france and italy over the years. i take it as an attempt to diffuse the potential conflict with italy but of course it will only be diffused if italy also plays along. in the past, last december, this june, italy backed down somewhat on its fiscal plans. i think they have said if italy continues to back down occasionally the eu commission will also be flexible to avoid a big confrontation, which would cost everybody and especially italy dearly >> certainly a question that will be weighing on peoples minds in the next few months as we get to the draft budget from italy. thank you very much for joining us coming up, we get right into the heart of earnings season norwegian oil services provider aker solutions beats forecasts

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welcome back ericsson has reported second quarter operating profit in line with estimates and said it is on track to meet its 2020 targets, disappointing some analysts who expected the company to raise its guidance ericsson's networks business saw an 11% rise in sales year over year due to strength in the 5g unit the ceo underlined the importance of the technology >> we see very strong demand for 5g it's -- the mobile technology has been the fastest gaining technology ever. 5g is the fastest scaling mobile technology it's happening we see great demand in north america as well as northeast asia that's really where the first networks were rolled out we see very good momentum in that business. it's helping our growth quite clearly.

that's a key driver for our growth we also see good demand in australia. we're starting to see europe emerging good demand in the middle east as well for 5g 5g is not the buzzword anymore fshg it but it's happening in reality. swedbank set stricter financial targets amid ongoing fallout from a money laundering scandal. the swedish lender lowered its dividend policy from 75% to 50% of annual profit in a bid to strengthen its capital position. the bank reported second quarter net profit above forecast but warped multiple u.s. authorities are still conducting investigations that could take years to conclude. and aker solutions has reported a better than expected rise in second quarter net profit and revenue as the oil services provider said they continue to see high tendering

activity in key markets. they also backed its full-year earnings outlook adding that the oil services market remains competitive. i want to bring in luis araujo, the ceo of aker solutions. your second quarter seems to be stronger than the expectation was anticipating i want to drill into the details. from what i can see, while your revenues are higher, your order intake is actually lower than where it was a year ago. on a forward looking basis that isn't very prom missinising. >> good morning. thanks for having me again this morning. yes. we had a very strong execution in the quarter solid financial performance. we have a high tendering activity so i think the order intake could have been better, but it was stronger than expected for this time of year. and considering the orders we have are usually a bit lower

we have 55 billion in order intakes, order tendering now so we expect that to be awarded in the second half, which will support our 2020 execution >> now, can we talk about margins here i see at a headline level margins are up significantly from a year ago. when you exclude the new ifrs adjustments, margins were below where they were a year ago give us a bit of color around what you're seeing on an underlying basis for margins and what you're expecting for the second half of the year. >> okay. iit is actually remarkable that we have stable margins, that was a reflection of our strong focus on cost and execution. i think margins are stable that's very good considering the competitiveness of the oil and gas markets. we have quite a lot of spare capacity through the downturn. we have won contracts which were

challenging in terms of price because of the market. we are delivering well on those contracts. i think we're proud what my team and our execution are doing during the time. >> i want to talk about something very, very recent. last week you announced you made an oil discovery off norway. can you talk to us about the potential there and how much you could be looking to extract? >> okay. i think the company who found that is aker dp, but not aker solutions. that's the operator, we're the contractor >> understood. i do want to talk about another company you do have, that's an exploration startup in ghana about six months ago you had submitted plans to ipo that unit where do we stand on that now? >> again, the company you're referring to is aker energy, that's partially owned by the

same aker solutions, but, y they had an interesting finding in ghana. they are progressing to file the pdo, the development plan. so we are working, of course, very close with that client. >> perhaps we can talk about the outlook for oil services you have seen some pressure on prices how do you see that pressure developing over the rest of the year >> i think that in oil and gas, activity has increased so some capacity has been taken. in some areas, and i actually emphasized the poorer markets, there's some variables so there's strong competition there. but we expect prices to go up. that's normal in any market. we expect prices to recover. again, in our case, we are not waiting for that we will continue focussing our

cost base, and we have announced we will reduce our cost base by 5% per year. we achieved 20% in less than three years. >> thank you very much for weighing in this morning that was luis araujo we will be talking also to the ceo of assa abloy at 10:40 cet. coming back to some of the latest news in the central bank space, jerome powell reaffirmed the fed is ready to act to sustain the economic expansion speaking in paris, the fed chair said trade tensions have contributed to increased global uncertainty and that the central bank is watching closely on developments >> many fomc members judged that the combination of these factors

strengthens the case for a somewhat more accommodative stance of policy we're carefully monitoring these developments and assessing their implications for the u.s. economic outlook and inflation we will act as appropriate to sustain the expansion of the strong labor market and inflation near its 2% objective. coming up, a little way off record highs on wall street but a long way to go on a trade deal we bring you trump's latest comments on talks with china when we come back. ♪ ♪

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join the fight at alz.org/walk. welcome back to "street signs. >> these are your headlines. a tentative open in europe after u.s. stocks snap their winning streak as president trump says there is still a long way to go on trade talks with china. >> ericsson shares slip as the telecom company's second quarter operating profit misses estimates despite strong momentum in the 5g business. swatch ticks higher as the company eyes a strong end to the year in key markets after the

turmoil in hong kong hits the swiss watchmaker's first half sales. facebook's libra feels the heat on the hill while the swiss group that's supposed to oversee privacy for the digital currency tells cnbc it has not heard from the tech giant at all. we are just getting the krshgszcpi and rpi numbers here cpi headline is 2% year-on-year. that's the poll of 2% going into this month on month flat. core cpi, which issed a justing for energy, food, alcohol and tobacco came in at 1.8%.

looking at ppi, that came in at 1.6% on the year that is versus a forecast of 1.7% pretty much all of these are in line with expectations the final one, rpi came in at 2.9% also in line with the poll the numbers today in line. in the context of the slew of numbers over the past week, that puts the bank of england in an interesting spot yesterday we had strong wage growth numbers, the strongest wage growth x bonuses in the uk in 11 years. it's interesting that the labor market in this country continues to be quite hot. >> it did have some mixed signals in it yesterday. the growth in the number of people employed in the uk actually slowed with the quarterly increase, i think just under 30,000 strong overall as you say, but a bit of a mixed picture coming through there.

>> warning signs when you look at the job vacancies, vacancies are going down if you look at the price action the last couple of days, it's almost like the market has been dismissive of what's going on in the macro front, focused on the politics we had that big pound move sterling breaking through 1.24 the story the next couple of weeks and months will be about brexit and what happens there. >> difficult job for mark carney you know the difficult position he's in and the setup these created for himself with the messaging thaef gie ining they'. >> it's interesting they're q d guiding towards rate hikes as all of this is going on. and there are global growth headwinds as chairman powell said yesterday let's talk about the broader fx movements today >> you can see the pound is

staebli i stabilizing versus the dollar. yesterday there was big action in sterling. it slumped over increasing fears of a no-deal brexit. politics front and center there when it comes to the sterling moves. some stabilization around the 1.24 mark now this morning also some stabilization in the euro, currently trading around the 1.12 mark. let's look at european equity markets and see where things stand a couple hours into trade. we have negative moves for uk, german and french stocks et l italy bucks the trend. last week a strong week for italian stocks we had that big relief triggered on the back of the european commission's decision to delay action creating a lift for italian investors. beyond that some moves lower for european stocks. let's look at u.s. futures

yesterday u.s. stocked snapped their winning streak largely on the back of president trump casting doubt on the progress of negotiations between the u.s. and china saying there's a long way to go on the trade front we got a number of corporate earnings in focus. banks in the u.s. yesterday. some more today and tomorrow looks like we're in for a bit of a rebound at the start of trade today. you and i were just talking about central bank commentary. i want to bring you comments out of bank of japan's kuroda. he said the bank of japan will m mull easing swiftly if momentum for hitting the price goal is lost the boj board will debate policy this month based on vie that japan economy is growing moderately global economy is growing moderately but various risks exist. he is talking about libra, too >> wow joining the chorus of central bankers weighing in. >> so he said that g7 are likely

to engage in a wide ranging debate on libra including on whether it is indeed a stable coin steps versus libra will go beyond financial regulations many central bankers are focused on libra the announcement from facebook we'll have to see how that pans out. president trump says there is still a long way to go on trade talks with china trump reiterated he could still hit beijing with tariffs on an additional 3$325 billion worth o goods which would essentially cover all remaining chinese exports to the u.s that as beijing hits back at trump's previous tweet that claims slows gdp growth shows why china needed a quick deal. a spokesperson said that was totally misleading the trade dispute between japan and south korea continues.

and samsung and other top chipmakers are testing materials for manufacturers outside of japan in search of new suppliers. makiko utsuda has more on this story. >> tokyo implemented restrictions earlier this month which requires government approval for exporting certain materials that are vital for chip making. among them is hydrogen fluoride gas. samsung is testing material made by companies outside of japan to avoid disruption in the supply chain. details are undisclosed but the gas likely comes from po dourods in china, taiwan or south korea. it will take two to three months to determine if quality levels can be maintained. the move could lead to a broader effort by south korea's chip industry to reduce its depe

dependence on japanese materials. reuters reports that japan may offer u.s. farmers new access to its market in return for washington reducing tariffs on japanese auto parts. prime minister abe and president trump discussed trade during the g20 meeting and agreed to reach an agreement as soon as possible reports say it may happen when they meet in new york in september. that's all from the nikkei back to you. >> all right makiko utsuda, thank you for bringing us the latest. goldman sachs shares closed higher after the bank posted better-than-expected second quarter profit they were aided bay strong performance in its equities business that helped offset a 13% full r fall in revenue where results were hit by volatility and low client activity. goldman sachs plans to raise its

quarterly dividend and the ceo saying the company is poised to deliver from a growing economy. and jpmorgan also delivered second quarter profit ahead of expectations driven by growth in the lender's consumer bank however jpmorgan did cut its 2019 outlook for net interest income as the company was partly hit by slower loan growth and weak performance at its capital markets business lending markets were squeezed by tightening in the u.s. yield curve. we held from wells fargo shares in that bank closed lower after mixed second quarter results as a better than expected rise in earnings was tempered by slower net interest income net interest income came in below forecast while net interest margins fell amid challenges stemming from a lower rate environment

while u.s. bank earnings roll on today with bank of america set to report the latest results before the bell. morgan stanley will put numbers on thursday. big tech steps up to the plate with netflix, the first of the f.a.n.g.s to report after the bell today the focus is likely to fall on netflix growing competition and subscriber numbers after the streaming service warned of weaker new subscriber growth back in april. one effect of increased competition in the streaming space has been a rise in the number of product placement deals. >> netflix is roughly 150 million subscribers binging with no commercial breaks pushed advertisers to find new ways to get viewers. one example is new coke. with coca-cola bringing back limited edition coke cans for sale, turning the company's failure into a new marketing opportunity. the streamer says none of the many brands mentioned in "stranger things" are paid for but offer netflix valuable

promotion. >> in today's world, the streamers have adopted the old movie technique and are working directly with brands who get product placement integration, but then they also promote the show in advertising, on digital, on their social channels, et cetera so that's building an audience for the show and that's what the streamers want. >> promotional partnerships also happen off screen. for "stranger things" baskin robins created eight flavors tied to the show and first with the streaming platform hulu is to feature millers/coors beer in "into the dark" series they deliver nearly 90% increase in purchase intent among viewers and a 75% increase in brand awareness. to break through the clutter, some big brands are returning to the original tv ad model, paying

to produce shows and documentaries in an effort to reach consumers with content rather than the ads that interrupt it proctor & gamble is sponsoring a national geographic tv series on efforts to combat extreme poverty, looking to align its products with efforts for good. >> brands like p & g and others are going to benefit from having those. it is expensive, and that's really where the challenge comes in, is the expense not too high, such that the return is achievable. >> johnson & johnson financed a documentary about nurses in the early days of the aids epidemic, the brand hoping for a halo effect from the film's message of compassion and rave reviews julia boorstin in los angeles. >> i have to wish you all a happy world emoji day. apple unveiled 59 new emoji designed that will be available on some gadgets later this year. apple targeted diversity with

images that include a fresh selection of different races and genders for the holding hands emoji and others that depict people with disabilities new animal and food emojis will make up a part of the software update i saw they got a falafal mraltemral platter. >> i'll be using that one a lot. >> and a waffle meemoji. >> i wonder how they decide what to make next >> what's your most frequently used emoji >> when i'm texting you, i'm always suggested to use the laughing face on its side. >> basically just sending each other laughing emojis the whole day if not doing it on "street signs. >> we want to hear what your favorite emoji is. >> you can tell us on twitter,

and coming up on the show, libra feels the heat on the hill amid confusion over which regulator will oversee the cryptocurrency. he would explain after the break. fun fact: 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right - by consolidating your credit card debt into one monthly payment. you can get your interest rate right - by locking in a fixed low rate today. and you can get your money right. with sofi. check your rate in 2 minutes or less. get a no-fee personal loan up to $100k.

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welcome back to "street signs. president trump's administration will investigate accusations made by venture capitalist peter thiel that google worked with china's military in a tweet the president called thiel a great and brilliant guys who knows this subject better than anyone else thiel previously called on the fbi and cio to probe google claiming the tech giant may have been infiltrated by chinese agents google denied the allegations. google was one of many technology companies under fire on capitol hill yesterday. lawmakers accused the search engine of bias against conservative content amazon was criticized for competing against its own

sellers, apple for in-app purchases and facebook for privacy policies. privacy concerns around facebook were echoed at a senate hearing. legislators called plans to launch a cryptocurrency crazy and delusional democratic senator sherrod brown, the ranking member of the senate banking committee said facebook does not deserve our trust. >> facebook is dangerous they may not intend to be dangerous, but surely they don't intend to be but they don't respect the power of the technology they are working with they have burned down the house over and over and called every arson a learning experience. the swiss group that is supposed to oversee the digital currency says they have not heard from the tech giant at

all. elizabeth, this is your scoop. that seems to be a little bit problematic for libra. >> a little bit of a red flag given that privacy was such a big focus in that senate banking hearing yesterday and will likely be a big focus in the house hearing today. we've seen facebook with its privacy issues over the past year and this remains a concern for consumers, for investors, for regulators we heard david marcus, the head of libra at facebook try to defend the approach the company is taking towards regulation and say in addition to some swiss authorities that it will be regulated in the u.s >> i agree that the u.s. should lead i want to reaffirm we chose switzerland because it is a well established international place with headquarters for w.h.o., wto, even the bank of

international settlements. despite the libra association will be headquartered in switzerland, it will still register with finsend and will have oversight from u.s. regulators >> in his prepared remarks he said the swiss data protection commissioner will oversee privacy for the libra association. we got a statement from that regulator essentially saying that they've taken note of the statements made by david marcus on its role but until today we have not been contacted by the promoters of libra we expect facebook or promoters to provide us with concrete information when the time comes, only then will we be able to examine this you wonder why this wasn't happening before the congressional hearing yesterday especially given facebook's privacy track record >> before they came up with this

white paper that almost everyone all over the world has been talking about nonstop since they announced plans to launch this cryptocurrency the launch was set to happen in 2020 with everything that's going on, it seems unlikely at this point. >> that's right. we're hearing not just from the lawmakers in the hearings but also from jerome powell, that he thinks this needs to be thoroughly examined before it moves forward. we heard from mark carney, this needs to be absolutely rock solid before it can launch david marcus acknowledging that they will wait for the required regulatory approvals before officially launching this product. it seems that the date of this is looking like it might be later given all of this push back >> in addition to the privacy concerns in focus yesterday and the oversight question that you just explained i thought it was interesting that he was also pushed about whether he would be happy to take all of his pay in libra that's one of the other facets to this conversation about the

value of the cryptocurrency. he said yes, he would be happy but how did that part of the debate play out? >> one criticisms is that facebook is trying to become its own bank here and it wants to override the existing system and be its own financial institution. david marcus pushed back on that saying it's more of a payments platform, it's not a storer of money but he would still be happy to accept his salary through that they have to say this is something for any user >> therein lies the issue, there's a distinction between being used a as stos a storage f wealth versus a payment system elizabeth. thank you for that scoop very interesting one on libra. everyone is talking about libra, even the bank of japan, kuroda just made comments to that

effect in other news, bhp reported a rebound in its inron ore output the miner also slightly raised its forecast for the year ahead. assa swung to a profit in the second quarter beating expectations as the biggest lockmaker. the swedish firm said uncertainty has increased amid weaker construction indicators and geopolitical challenges. now i'm pleased to say we're joined by nico e de oshgo delvao of assa. there was an improvement in operating margins, so it feels like a solid quarter altogether.

but the key question is what can we expect for the second half of the year given the uncertainty there is give us insight and the visibility you got on the remainder of the year. >> indeed there was 3% organic growth, and there were two working days less than the same quarter than a year ago. and accelerated growth of 4%, and we have a strong bottom line and cash flow is 27% up. overall it's a very good quarter. going through we see more uncertainty in the market. going forward, it's a bit difficult to read. there's definitely markets which are still strong and give us more opportunities than other markets that are going around. we are optimistic. we cannot change market conditions we can only do our best to perform at the best possible way

given market conditions. >> sir, i mean, at the end of the day your company makes locks. one key component there is steel. can you talk us through the impact the tariffs on steel and aluminum are having on your particular company and as that pertains to your overall margins? >> of course don't only make locks, we make doors, we also have a much wider portfolio than locks. we have the ambition to produce results, and if we talk about the u.s. market, most of what we sell in the u.s. we also produce in the u.s we have a smaller portion of our business that is imported from china, that's mainly on the lower end of the product range and our competitors in the market have a similar situation.

so we all solve that issue by increased prices it's not competitive advantage or competitive disadvantage. >> in your capital markets day last year, one key priority you set out was to become successful in china has the u.s./china trade war and the developments since 2018, has that changed your ambitions when it comes to the region >> not really. of course we all know that sanctions in the long-term has a negative effect on the world economy. but if you look in the short-term, if you look at our ambitions in china, that has not changed the dynamics, that's not changed our ambitions. we have a plan in place for china. we are making good progress on that plan. >> all right

well, that's all we have time for. thank you very much for weighing in and giving us additional color on those results let's look at u.s. futures and where we stand to open up the day on wall street it looks like we're in for a bit of a rebound all three major indices are pointing to a higher open. this comes after yesterday when u.s. stocks snapped their winning streak as president trump cast doubt on the negotiations between the u.s. and china. another big day for bank earnings that was a key focus yesterday as it has been all week. a lot for investors to digest. >> and netflix also. >> yes not all about the banks. >> happy world emoji day i'm joumanna bercetche >> i'm julianna tatelbaum. "worldwide exchange" is coming up next. new align whole food probiotic.

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it is 5:00 a.m a long way to go president trump throwing cold water on any near-term deal on trade with china. stocks pulling back a bit from record highs. will results from netflix, bank of america or microsoft be game changers nothing is quiet on the western front. technology under fire from all sides. facebook heading back to capitol hill for another round of grilling. amazon also feeling the heat european regulators reportedly launching a new probe focused on the company's use of merchant data. and why the fed may want to look at th