welcome to "street signs." i'm julia boorstin the these are your headlines. ubs beats the top and bottom line delivering its second bebe quarter in nine years. >> modernization of the environment coming out of a good march into the rest of the quarter. i would say the highlighteds were diversification paid off again.

client sentiment was much more constructive in the second quarter. santander shrugs off a weak performance in britain to surpass expectations in the second quarter. a profit warning as an auto partsmaker predicts a drop in vehicle production but shares drive higher as the company's results remain in line with forecasts. ams soars taking the company higher issuing an upbeat outlook. all right. a very warm welcome to "street signs" this morning. let's look at european markets some interesting moves we're seeing in the equity space the stoxx 600 is currently more than a third of a percentage point higher we are off to a strong start in

the early minutes with nearly all regions in the green the auto sector in particular showing some strength this morning. we had a few different reports come ut. we heard there in the headlines that profit warnings for continentale, but this is not causing investors more cautiousness but driving shares higher across the board. autos in focus, chipmakers in focus, banks in focus. a number of corporate stories taking investors attentions this morning, stepping away from the macro where we expect the uk to deliver the results of the conservative party leadership contest with boris johnson expected to take that position later this morning, just after 11:00 a.m. the corporate earnings is driving moves this morning let's look at european markets and see what the individual moves look like. the dax is u shares higher for the german index. ftse 100 about a half percentage

point higher as well as the ftse mib and the cac behind those let's look at the sectors and check out the breakdown. autos up about 2.9%. we had seen that index higher earlier on speaking to some investors in the auto space, the view seems to be, yes, we had another profit warning for the sector, but the market was widely expecting profit warnings. we already heard from daimler and gille. technology up, just over 1% with the chipmakers boosting that overall space. we'll get into detail on what's driving that sector in a bit banks rounding out the top sectors this morning, up about 0.7% let's get into one of the top stories in the bank space, that's ubs they posted a surprise beat in second quarter earnings with net profit rising marginally to 1$14 billion. that's as gains in the swiss

bank's corporate and advisory units offset losses in banking joumanna joins us from zurich. you have been poring over the numbers and you had a chance to speak to the ceo of ubs. were the headlines as strong as suggested or were there patches of weakness in there >> you and i, julianna, like to knit pick the numbers the top line and bottom line much higher than expectations there. and -- >> well, hopefully we'll get back out to goo mjoumanna in a and hear what the ceo of ubs had

to say >> i would say the sentiment is very volatile. it's difficult to call a trend you see the dynamics on a week by week basis which are difficult to predict investor sentiment is muted. if you look at what happened during the quarter, the fact that the cash balances went up 1%, despite the fact that invested assets went up. the more dividend they cash in and interest rates income are staying on short-term or cash. >> from a bank's perspective, now we have an ecb meeting coming up. there's speculation that the ecb may look to cut rates. if they introduce a tiering mechanism similar to what they have in switzerland, would that be a positive step in your view? >> i think it's -- i'm not so sure that going deeper into negative territory or using the

qe is the way to get out of the problems i think cutting rates to infinity has not proven to be the solution of the issues i think we need more structural answers. so i believe the ecb is trying to help to try to get out of this problem it's more for the politicians to resolve the structural issues. >> perhaps central banks need to be more mindful of the banking system before cutting rates more negative >> i think at the end of the day i always say if the collateral damage of the banking -- of negative rates would be only the banking system, one could probably try to live with that concept. as you can see, the psychological effect on consumers and the side effects on savings and on the social system is very high. so i think that there has to be a broader consideration than

just the banking industry. >> that is joumanna bercetche speaking to the ceo of ubs joumanna, hopefully you have some sound now i'm curious if you had a chance to speak to mr.the ceo about pl for the investment bank, and if you had more insight as to what their plans are strategically for that unit. >> it all ties into the same thing. and similar to how our line got cut earlier, we're also talking about central banks cutting in the context of the banking system it was interesting what mr. urmotti had to say there i think he was very clear about rate cuts, he said if you keep pushing rates into negative territory, it's not really yielding that much of an impact.

doesn't seem to be the solution to the problems that the eurozone is facing it's up to the politicians to do something at a more structural level. that was very, very interesting. why this matters for a bank like ubs, the lion's share of their earnings these days comes from their global wealth management division that division was down 12% year-on-year in the second quarter. even in the first quarter it was down 26% year-on-year. the headwind there's are coming from what? low interest rates this is not just in europe obviously, but in the u.s. we have the fed looking to cut interest rates as well that's putting pressure on the yield curve. the flattening on the yield curve and the market pricing in lower interest rate expectations, that's hitting net interest net margins, that came up in earnings, not just for europe it's important we make note for that ubs are setting the tone for other european banks when it comes to net interest margins. it will also be interesting to

see whether in the future they'll have to revise their targets. investment banking is also very important for ubs. the first quarter was a torrid quarter for their investment bank their last earnings were down 56%. this quarter down 20%, 23% but there was one bright spot, that was in the advisory business that business was up 18% compared to a significant decline in the first quarter m so he talked about normalization in the quarter and people are getting more involved in the markets, but they talked about the downside risk still remaining due to political uncertainties and geopolitical tensions he said we're not completely out of the woods yet if you drill down to the details, equities are down 9% year-on-year fixed interest rates are down. so putting that altogether, you

have headwinds from low interest rates and from subdued business activity, and the picture and the outlook for the second half of the year is questionable. you know, as an investor you don't have a lot of clarity about how thing also proceed the one overriding positive is the teier one ratio came in at 13.1%, higher than the estimate, they have a lot of capital they certainly have the capital to absorb any potential hits in the future there are a few positives to pick up on >> thank you very much for that detail glad we could get back out to you. moving on, another bank in focus, santander second quarter net profit has fallen 18% but still topped estimates. they were hit by restructuring

costs of 706 millioneuros. the lender kroited ecited a weak performance in britain the lender also cited a weak performance in britain but the cfo said the uk outlook remains unchanged and is based on an or orderly brexit >> for the uk, we have a strong competition in the mortgage market which is our main market. we anticipated this. we started a cost cutting program in the uk. >> let's move on to the auto space. shares are trading higher in continental. the german car parts producer

blamed a warning on a fall in global vehicle production and unanticipated change in customer demand very interesting moves in the auto space on the back of this warning. you can see there the four auto partsmakers trading sharply higher this morning. up 7.9% is faurecia. i want to get out to annette and this market. what does it say about expectations that a company can come out with a warning for the 2019 year and they surge expectations may be nearly as low as they can get, annette >> certainly that's the case if you look at continental shares, they hit a six-year low

earlier this month now if you look at the profit warning, it is actually -- it's a warning, but not as bad as people had expected. now sales are expected to come in between 44 billion and 45 billion euros. before it was 45 billion to 47 billion euros. it is a warning but not a gigantic downward revision of what they expected what they're saying is auto production will be 5% lower in the estimates for the second half of this year. b which also is not great, but it's not the end of the world. probably a worse scenario was priced in those shares to be fair, that was the same with daimler it was worse, but that was also because they have a lot of homemade problems. as such, continental is well positioned to benefit from the new trends like

interconnectivity and autonomous driving for the car industry so the business is not in bad shape, but they suffer from lower auto production in europe, north america and china. that's what they're saying as we were pointing out, probably the expectations or the mood is so gloomy that's why we see that positive reaction >> that's a key point, you make about how continental is positioned for the future. clearly this is an important factor in investor positioning in the auto space, if the companies are prepared to adapt to the new demands of the auto sector, perhaps investors can look past the weakness they're seeing in auto production. thank you very much for bringing us the details on continental. coming up, one of apple's

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welcome back to "street signs. shares in logic tech are on track for their best day since may 2018 after beating first quarter revenue and profit estimates. they backed their full-year outlook for sales growth ams swung to a profit in the second quarter posting ebit of over 4$415 million the sensor producer and one of apple's key suppliers predicts a strong third quarter thanks to rising demand in its consumer markets. let's look at the chipmakers in europe more broadly. there you can see fairly strong moves higher for not only ams but also stmicro, up nearly 3% asml up 2.2% d dialog semiup a bit as well.

let's bring in elizabeth schulze. what did investors find so reassures that we're seeing this boost? >> the key line is the strong consumer demand going forward. we have seen a general sluggishness in demand for smartphones, ams singled out strong demand in smartphone units in the next quarter. it provides essential 3d sensor for apple, but ams saying they see strong demand in the android market this is a positive sign for the chip market because they have been subject to this volatility between the u.s. and china trade talks. it's a sector that's very dependent on the global supply chain. if one supplier gives these chip technologies says they see better outlook going forward, that shows up in the share price today. >> it's not the only story in the chip making space that is providing a boost. we heard from the "wall street

journal," they reported that apple is potentially looking at buying intel's cellular modem unit how does this tie in andwhat i apple's rationale for buying this unit? >> we heard this before, but it went on hold when apple reached that licensing agreement with qualcomm earlier what apple would be looking to do is bring the 5g modem production inhouse and take over that business that intel could not successfully do itself they is a trend we have seen with samsung and huawei. they make their own 5g chips in-house we have not seen a 5g phone from apple, it is clear that's the direction the market is heading. it looks like apple could be considering a big deal, much bigger than we've seen from apple in recent years in order to keep up with other players in the market >> so this would be to reduce

their reliance on qualcomm effectively? they want to do it themselves so they don't depend on an outside provider, particularly given the trade environment and the uncertainty there. >> we've seen so much talk about how it helps the companies to be less reliant on anyone qualcomm shares are trading lower in extended hours because of that, because apple may not need them as much as they thought. ultimately these supply chains are so integrated. it's not like the end of a partnership here it would be one step for apple and it gives us a slight indication of the cycle with these 5g phones. we need to see these devices release. we need to see how much demand there is from the consumer side for these new phones some of that ties into if the networks are up and running yet. we have yet to see how much the 5g devices can spur demand >> an interesting dynamic we discussed before how quick can the uptick be when the infrastructure is not there

yet. one thing i want to ask you about lastly, president trump has been busy over the last 4 hours at the white house meeting with a number of tech executives in the semiconductor and software space tell us about how that fits into this conversation as well. >> it certainly does we know that the trump administration has this blacklist on huawei and that prevents u.s. companies, they must apply for specific licenses in order to sell to huawei ultimately what we saw with these companies at the white house yesterday -- by the way, it wasn't chips, we also saw google there, they want to make sure it's easy to get these licenses approved. we know how global these agreements are we know these companies have come out and said we need do this business with huawei. it seems like trump it appeasing them so far, but a lot of questions still about how this huawei ban will play out >> still more questions than answers. thank you for weighing in. thank you very much. let's shift gears to the metals and mining sector where

hed hedro missed expectations. the company blamed lower aluminum prices and the effects of a cyberattack pleased to be joined by the cfo of the company for this updated. thank you very much for joining us can i start on your outlook for aluminum i see earnings were down significantly from the same quarter last year in large part due to lower prices. i see in today's results you have taken down your demand forecast for the year ahead. in what market segments are you seeing particular weakness that has led to you downgrade your expectations here? >> i think the particular weakness we see is first and

foremost within the european markets. partly out of germany where we also see low pmi figures we see building construction being low and in general there's a concern around demand and production that impacted the aluminum demand. >> thank you for that clarity. perhaps we can look at brazil. this has been a huge part of your story over the last year or so 80% to 85% capacity utilization, this is the upper end of the range you had targeted the end of june. what is your outlook for this brazilian operation? >> we're happy to see production wrapping up so quickly and faster than we expected. we are around 85% if you look at june in isolation. then we expect a nathen we exupe

company for september. what is your take on chinese demand, and given how much environmental focus china has developed over the past few years, how much emphases there is on the environment, what does this mean for the supply side in china? >> from what we can see, the supply side reform holds pretty firm in china. we see somewhat lower growth on the demand side in china, but we don't see big changes on the supply side, meaning the chinese market today is relatively balanced, which is the first time we've seen for many, many years. >> you expect that to remain the case >> as far as we expect, that's the best case going forward.

>> maybe we can dive into specifics at hydro you're better improvement program. i see you say you can't reach your 2019 target can you reach this eventually? >> sure. we will host an investor day on september 24th we will give an update on the new improvement programs when it comes to comments around capital discipline, cash, capital to release cash, and also new information on the sustainability target for the company. >> and on the u.s./china trade war front, how are you dealing with the uncertainty of this trade war given it has proven extremely unpredictable and there still remain a number of

open questions on how it will get resolved, if it gets resolved >> we believe we're starting now to see the results of this trade war. i think if you look at the auto industry, in germany it was very much abandoned on exports to china, we see less involvement with china, which has an impacted on the german industry which has a consequence for us the longer this is unresolved, the longer we will have uncertainty. transparen transparency and resolution would be better for us >> thank you very much for joining us coming up,we cross live to downing street which is preparing for a new tenant more after the break at the alzheimer's association walk to end alzheimer's,

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♪ how do you like it, ♪ how do you like it ♪ ♪ more, more, more ♪ how do you like it, how do you like it ♪ all you can eat is back. how do you like that? applebee's. now that's eatin' good in the neighborhood. welcome back to "street signs. ubs trades higher after the bank beats on the top and bottom line

delivering its best second quarter in nine years. the ceo says the lender is coming out of a tough period >> normalization of the environment coming out of a good march into the rest of the quarter. i would say that's the highlights santander shrugs off restructuring costs and a weak performance in britain to surpass expectations in the second quarter. ams soars taking the chipmakers higher as the company swings to a profit in the second quarter and issues an upbeat outlook. sterling drops amid concerns over a no-deal brexit with boris johnson tipped to become the uk's new prime minister.

let's look at european markets. we're about 1.5 hours into trade. it's a positive morning coming together for the stoxx 600 as you can see, all major regions trading higher the uk index trading about a half percentage point higher today. just about 1.5 hours time we will hear and get confirmation on the tory leadership contest boris johnson widely tipped to take the helm of the conservative party we're seeing the ftse move higher along some renewed sterling weakness. the dax is the front-runner across europe. up nearly 0.8%, boosted in large part by the auto space where we saw some major moves across the auto suppliers we had continental profit warn, but the market was positioned for weak numbers we are seeing some moves higher across the auto space. let's look at uk grocers

sales at the uk's top supermarkets fell compared to the same period last year. a heat wave boosted sales in 2018 during the same period. total grocery sales declined for the first time since 2016. we're seeing a negative reaction in tesco, sainsbury and morrison the fx markets, thursday is a huge day for monetary policy the ecb meeting taking place the euro trading down by 0.2%. the pound, some serious renewed weakness there, trading back around the 1.24 mark we saw the pound hit a two-year low of 1.238 last week we are now seeing it around the 1.243 level. serious declines there ahead of the tory leadership

confirmation ministers are arriving for the final cabinet meeting chaired by theresa may. we will take you to some images of the cabinet ministers. let's get out to willem in just a moment boris johnson is expected to be named as the leader of the british conservative party today. he says he will take a do or die approach to brexit willem joins us from downing street willem, what will be the most pressing challenges for the new prime minister >> we have seen some ministers arriving we've seen so many of them competing to become the next conservative leader and prime minister we're down to the final two. we'll know the answer in the next hour and a half or so as you mentioned already, we're widely expecting boris johnson to be named as the new leader.

in terms of what he'll face, almost from day one the big challenge will be a died conservative party there's been polarization over brexit for the last six or seven months, that's gotten worse and worse. coming into this week, we had a number of high profile resignation announcements from theresa may's group saying they will resign. he has a tiny majority inside the house of commons that hampered theresa may time and time again as she tried to push her negotiation greed agret through the house of commons, that will not change for boris johnson. it will be incredibly difficult for him to get the majority number he needs. he will look to try to stimulate the british economy, especially

ahead of the no-deal brexit shock. on the foreign affairs front we had this british ship seized by iranian authorities in just the last few days. that will be front and center for any government going into the next two or three days and any new prime minister will have to focus on that as the weeks and months unfold, we'll have parliament at the end of this week taking a summer break and members of this new administration will be working to figure out whether they will be able to make changes to the agreement with brussels between now and october 31st on top of that, counting the votes inside the parliament. >> willem, your part about the european side of things, at this point they remain adamant that the withdrawal agreement is not open for renegotiation how much flexibility doesboris johnson have to actually make

any progress on this front >> he says he wants to reopen the entire negotiation process change the sequencing and use the threat of withdrawing as a tool in talks. in terms of what's likely to come from the european side, they said we are prepared to make alterations to the wording of the future relationship they were able to make some kind of legal concessions around the language of that future relationship as you said again and again and again and particularly from the irish government in dublin, we heard the view they're not prepared to reopen the actual agreement itself and certainly not prepared to drop the backst backstop, the insurance policy they have to protect that border between the uk and ireland >> thank you very much for setting the scene. we look forward to the final

result just after 11:00 a.m. uk time. i'm joined by richard myles from absolute strategy to help us make sense of what we can expect after the new leadership is elected just later this morning. one of the pm's first tasks will be to fill the three core cabinet positions. chancellor, foreign secretary, home secretary what do you think? will we see a major reshuffle when it comes to boris johnson's leaders that he surrounds himself with how do you see this playing out? >> that's a fair question. we know we will see a major reshuffle, because we will see a new chancellor, philip hammond announced he would resign ahead of boris johnson being elected i think depending on the scale of boris johnson's victory, we're sort of getting signs that jeremy hunt may not survive if it's a large scale victory if it's maybe closer than that, he may keep on as foreign

secretary. in terms of who would replace philip hammond, it's quite an open race. but i think the likelihood is we'll see sort of a much more brexit brexity cabinet. some heavyweight remainers are on their way out and people who campaigned for leave in the referendum are going to be on their way back in so the big difference between a boris cabinet and a may cabinet is the balance of leaver s and remainers will be more weighted in the leave direction than the remain >> that's critical given there's so much talk about whether boris johnson will stick to the hard stance he's outlined in his campaign once he's actually through and he doesn't need the support of euro skeptic tories to get into that position. if he surrounds himself with

these hard-line leaver s, doesn't he box himself in? >> absolutely. the reason why we've seen sterling fall during the leadership contest, it was always inevitable because of the euro skepticism that there will be a radicalizing effect most people expected boris johnson would leave some wiggle room but he has this do or die delete the back stop, do or die by the 31st of october. that will make it difficult for him to roll back on. for me, what i'm looking for in his first speech as leader which presumably we expect later today, his first speech to the house of parliament as prime minister expected on thursday morning, is is he going to start to try to soften those comments, you know, create an off-ramp at the moment he's on the highway to a no-deal brexit. unless he can find an off-ramp, then he's probably -- my view is that a no-deal brexit this time

is difficult to achieve. he will be on a collision course with parliament. the question is whether parliament has the numbers and also the stomach to actually stop that from happening >> one of the off-ramps, to use the analogy you outlined, if he does seek to change the sequencing like willem described -- right now as it stands the view is europeans are not changing the with drodrawal agreement. is it possible that he can change that sequencing or is it a pipe dream >> is a pipe dream there is little chance that the europeans will bend on this. this is an asymmetric notion boris johnson seems to have the analysis that theresa may didn't bark loud enough if only she tried harder and

negotiated harder, the eu would we bend you have to look at demonstrating the costs of leaving, which means no cherry picking. demonstrate the benefits of membership, standing behind the irish and not abandoning the back stop. and then, you know, maybe further down the list try to avoid disruption but, you know, avoiding disruption, which is the leverage that boris is attempting to weald is far down that list of priorities. i don't think there's any sort of real likelihood the eu will bendz on th bend on that point >> something that has come up over the last 24 hours, it's interesting in relation to tensions in the gulf, that we've seen the uk now come out with this push to try to create a european alliance to deal with the situation there. this is at a time when we're hearing these hard lines about the uk leaving how do you reconcile that in

terms of the uk approach moving forward? on one hand they're trying to separate themselves saying they're willing to, but on the other hand needing the eu to deal with a global crisis of sorts. >> yeah. i think it's cconflating the twy be a mistake the u.s. and the uk are not aligned on that point. the broad eer point to draw fro it, one of the pillars of the uk's foreign policy has been this sort of european relationship and the transatlantic relationship now you're breaking the european relationship or risk breaking it, you will be forced into relying more heavily on that u.s. relationship. u.s./uk security cooperation,

u.s./eu security relationship through nato is not going anywhere i think that guarantee has been brought into question by donald trump. but my view is the security cooperation between the uk and the eu is something which both sides want to preserve, even if there were a dislocation over trade. >> terms of the u.s./uk relationship, if we see boris johnson become prime minister f we see the u.s. and the uk forge a new trade relationship, perhaps before the october 31st deadline, does that change anything >> i think it's unlikely that could happen you can't really negotiate a trade relationship whilst you're still in the european union like the uk will be that's not likely. the other point to make is that the u.s. is -- first of all, the congress has suggested that if the north/south cooperation in ireland is threatened by a hard

irish border as it would be in a no-deal brexit, congress would veto a new trade deal with the uk also the u.s. is not known for playing soft in trade negotiations they know they're the biggest economy in the world, they know they have a huge amount of leverage the uk versus the u.s. will be another negotiation, and i don't think the u.s. is likely to do the uk any favors. it's another reason why leaving a block of 28 countries which has some strength vis-a-vis against the u.s. is not a good idea, but here we are. >> thank you very much for weighing in. >> let's look at u.s. futures. we are looking at a moderately positive start for all three makers there yesterday we saw markets edge higher in trade with tech outperforming hitting a fresh record high.

looking for that trend to continue today congressional leaders and the white house have agreed to a two-year budget deal raising the debt ceiling and increasing federal spending the u.s. was at risk of a debt default in early september if an agreement had not been reached congress needs to approve the deal before president trump can sign it into law president trump welcomed the deal on twitter describing it as a great compromise. coming up, the uk calls for help from its european allies amid heightened tensions in the sfru strait of hormuz the latest developments when we come back. we're the slowskys.

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the dallas cowboys have retained their position as the world's most valuable sports team for the fourth consecutive year according to forbes valued at $5 billion, the jerry jones franchise led a list dominated by national football league clubs the yankees came in second followed by real madrid and

barcelona. stepping away from sports, the uk is calling on key european allies to help it launch a maritime protection mission in the strait of hormuz. iran's state tv released new video of what it says are the crew of the british-flagged tanker it seized on friday the foreign minister said the ship was passing through the wrong channels in westminster jeremy hunt urged iran to release the ship and the people on board. >> under international law iran had no right to obstruct the ship's passage let alone board her. it was therefore an act of state piracy which the house will have no hesitation in condemning. even more worryingly, this incident was a flagrant breach of the principal of free navigation on which the global trading system and world economy

ultimately depends >> now, asked about the capture of the british ship, u.s. secretary of stated mike pompeo said the responsibility falls to the united kingdom to take care of their ships hadley joins us. very interesting to see mike pompeo weighing in, releasing the statement uk you're on your own here, that's interesting given the escalation tensions that you could argue were prompted by the u.s. >> it is an interesting response, but one that is not too far from the story that we've continuously been reporting from this region i'm in the place where the british tanker took off from a couple days ago, headed to saudi arabia it was stopped by iran the question is what is the united kingdom's response going to be? it's what all folks are watching, whether they're on either side of this dynamic in the uae, in saudi arabia what the response will be from this

region, whether or not the united states will weigh in. following those incidents involving the explosions of tankers just off the coast, we saw the united states essentially stepping back to the brink. president trump taking a step back and deciding not to pursue any military action when it came to the actions of tehran i think it's interesting, as you mention, it seems as if it's going to be round two of the same thing listen in to what he had to say. >> i think iran doesn't know where they are i've been watching and reading a lot of reports right now they're a mixed up country. they don't know whether they're coming or going. they have tremendous problems economically their country is in turmoil. they're having demonstrations all over iran. the inflation rate is at 75% they have a lot of problems. >> president trump essentially saying when it comes to iran,

they don't know whether they're coming or going. many say with the united states and their policy towards tehran, they don't know either the uae has been silent also, and the omanis have been the main player putting up a channel of communication between the united states and iran they said they will send their foreign minister on saturday for talks, but no action yet from the uk government. that's something that willem says will be top of the agenda >> hadley, on that point about what jeremy hunt said, he warned if iran continues on this dangerous path, then they must accept the price of a larger western presence along their coastline. from what we understand so far, is that an empty threat? do you think they will actually move ahead >> it seems as if they're trying

to stapt eurotap the europeans broader coalition. the onization conversations i'v having, they say the united states are looking for the more global community to take a stronger role. whether that is monetarily or militarily as well in tomorrows of ensuring the energy lines to asia energy markets in the united states are self-sustaining in a way they vent been haven't been past so it will be interesting to see whether the united kingdom will bring the europeans on board here >> all right thank you very much. let's look at european markets. it's been a fairly positive start to trade the dax up more than 1%. the auto sector up 3.4%. huge moves across the automakers, the auto parts suppliers, boosting the dax.

there the foot tse 100 up 0.75% we are an hour away from knowing the next tory leader some corporate news, underlying earnings at randstad missed expectations as the group cited challenging macro conditions in europe the ceo told cnbc that its german market weakened throughout the quarter as trade wars hit the auto sector and the beijing automotive group says it has acquired a 5% stake in daimler in a bid to secure its investment in mercedes chinese manufacturing subsidiary the german carmaker welcomed the move the pair have been in a strategic partnership since 2003 and let's look at u.s. futures and see where things stand for wall street a positive start for the s&p, the dow and

the nasdaq, this follows a positive session yesterday as well where tech outperformed hitting a fresh record close helped by the semis in particular we were discussing earlier in the show, we were discussing the positive moves for european techmakers we heard from ams, and a better than expected result there apple reportedly looking at buying intel's cellular modem unit keep an eye on tech for wall street's open today. that's it for the show i'm julianna tatelbaum "worldwide exchange" is coming up next.

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it is 5:00 a.m here is your five at 5:00. crisis averted president trump and congressional leaders announcing an agreement on a two-year budget deal to lift the debt ceiling as well and raise spending levels. a big thing there. kicking it into high gear. earnings season heating up this morning as invests await results from coca-cola, lockheed martin, jetblue and many more. a major mobile deal in the works. apple reportedly in talks to buy intel's smartphone modem chip