♪ good monday morning and welcome to "street signs" i'm joumanna bercetche. >> and i'm willem marx. >> goldman sachs warns the trade war has raised the risk of a u.s. recession ams sees the light it launches a 4.3 billion euro offer for lighting manufacturer osram and kicks off a bidding war with bane and carlisle the search is over

abb shares get a boost as ceo bjorn prepares to assume the top job taking over from acting ceo peter in march. campaigning from the cabana. takes to the beaches of italy to push his snap election agenda but denies he'll run an ant anti-euro ticket. >> persian gulf shipping lanes as well. we'll take you aboard the uss abraham lincoln to find out what they're doing to deter teheran well, good morning, everybody. we're starting the week with a positive tone. you can see right behind me broadly speaking we're actually up in the green. now, remember last week was an extremely volatile week. by the end of the week we had

wall street indexes all three close in the red for the week, although much up from the lows asian equities as well europe, all the action on friday was on the italian index ftse mirks b was done 2.5 percentage points on friday. today we're seeing a better tone to italian assets. ftse mib is up .6 percentage point. generally speaking the mood is a lot more positive as we start off the trading week we're getting right to the end of that earning season and there's a couple stories we have been focussed on but let's switch on. i want to break it down. as i mentioned, now we have the italian index up half a percentage point not fully regaining the ground lost on friday down 2.5 percentage points it does tell you the tone is more positive. we don't have a lot in terms of data today, but you can see the german indexrespectively doing well some of the sectors performing well are the ones that have

exposure to china. here again i'm talking about the cyclicals, autos, basic resources and some of those other tech sectors as well with the chip makers also performing well quick look at ftse 100, a third percentage point higher. so this is the setup for the week slightly more positive on this monday morning. one of the big european corporate stories this morning, ams submitted a 4.3 billion euro bid for the german lighting firm osram. what exactly have we heard from osram in response to this latest offer? >> nothing so far. they are probably having a statement as of today because

they have to say something given that this offer now is 10% more lucrative to shareholders than the offer put on the table by bane and carlisle having said that, there might be a little bit of a legal problem here because the board of osram has already agreed to a standstill agreement with bane and carlisle and this gives them a period until early september to actually finalize their bid so, what happens now is that the austrian sensor ams is kicking in with a better offer but that means also that osram has to waive that standstill agreement. the likelihood is quite high because we have a shareholder rejecting the deal from the two private equity players saying that the bid is essentially too low and now with the new bid on the table, that should be

actually quite a sweetener for them to also accept that offer going forward. the new deadline is august 15, which ams says this is the deadline they want to hit from osram whether they're going to consider their bid or whether they're going to walk away once again. but strategically would make a lot of sense, according to the austrian player because clearly combining osram would create a giant 5 billion euros and clearly create a champion in that region and has a compelling business sense, i would say, and that's the reason why they're saying this makes a lot more sense than having a private equity player buying into osram. clearly they also have to shed some asset they're saying if the bid can't go through, they'll sell osram's

digital business because it doesn't make any sense business wise for them. the new deadline is august 15th. the market is taking it on very positively as we're seeing with that, back to you. >> right osram shares up about 8% though it has been under a lot of pressure the last couple months. i want to take you to other companies we're looking at this morning. abb named ceo bjorn rosengren. he stepped into the chief executive position after he unexpectedly quit. sandvik said immediately start the process of finding its new president and ceo. the news on that sandvik is down half a percentage point abb is bouncing nicely up 4% on the news now, switching on to

banking, allison rose is set to be named as the new ceo of rbs, according to sky news. the broadcaster reports her appointment could be finalized in the next weeks and would mean she becomes the first woman to lead one of britain's big four banks. now rose currently heads up the bank commercial arm and sky news reports she has been considered the front-runner to replace outgoing rbs boss ross the stock is under pressure. it has been since reporting the earnings about ten days ago. of course, very much exposed to the lower interest rate environment and of course to the domestic environment over here in the uk. elsewhere, nn group ceo has agreed to head up rival dutch ensurer aegon next year. aegon up nicely on the news.

but look at the chart for aegon. we had that dramatic drop in the last couple of weeks or so, but still a lot of personnel changeover this morning, willem. that seems to be the theme of the day. >> changes in assessments from a major bank the risk of recession in the u.s. is rising according to goldman sachs. the bank has also predicted the u.s. and china will not strike a trade deal before the u.s. 2020 presidential election and goldman lowered its forecast by 40 bases points. at this point i like to bring in ceo and cio of the scottish investment trust thanks for being with us do you have a view on the time line about the trade deal? does it make any difference to your investment decisions? >> well, i think the timeline is always difficult to judge exactly, but i think, yes, the

risks of the u.s. recession must have increase oefrd the last few months if you want proof, nothing else, just look at president trump's tweets you know, he is creating a scapegoat and the federal reserve, ready if the economy isn't doing what he wants it to do, when it comes to re-election time in terms of how we're investing, though, we're cautiously positioned really we're ready for a slow down. and we're also ready for a pickup in spending basically by governments everywhere >> how do you position for a slow down? >> well, i mean, really what you're looking for is revenue you think will be stable, people will keep buying throughout no matter what the economy is doing. but also more importantly, we're avoiding areas of the economy that look pretty overheated just now. what i'm talking about there is we had ten years of basically free money it's caused risk taking to go from a crisis level where people

were too scared to do anything to the situation today that frankly reminds me of the dot com era 20 years ago where people are very keen to give their money to anyone with an idea so we're trying to avoid areas that just avoid free money and momentum and we're trying to keep in the areas where we think people will keep buying. we also quite like gold, by the way, just because we see the way governments are going, and i think the answer is print money, spend money, get more votes. >> quite a few other investors who like gold what we have seen with the price the last few weeks. it sounds like you're keen to stay away from some of the very high valuations in the tech sector is that whether nast a u.s. tech company, a chinese tech company, european tech countdown or do you see a distinction? >> there are distinctions between the three geographies you mentioned but really it's a u.s. and a chinese, they're the global dominating areas for

tech the theme though is a global theme. people have called the disruption bubble. people are prepared to fund ventures with frankly very poor business models and prepared to poor endless amounts of cash in them and they don't seem to care whether they'll ever make money or not this just doesn't seem right to us that's why we avoid it. >> the thing is, though, this has been going on for a while, hasn't it? you can say that central banks have been perpetuating this by providing cool aid for the market when ever the market is pushing for it the market is pushing the fed to cut more, the market was disappointed when the ecb announced all these measures and wasn't enough to saturate the desire for more stimulus what is going to be the catalyst that finally breaks this market? because so far we see central banks turn more dovish, yields

move lower how does that stop how does this psycycle end? >> probably the thing that will break iteventually is when the bond market starts to take freight. they're going to -- we have seen it in uk, in europe, we're seeing it particularly in the u.s. and we're even seeing it in china. governments are learning that if you want to stay in power, if you're not elected and if you are elected to stay in power, you have to spend money. you have to buy votes. that's what governments are doing. so that will be the trigger, i think. >> sounds like an interesting conversation to be had with boris johnson announcing various pledges. we'll get to that shortly in the next segment i also want to take you to another country we're very much

focussed on, that is italy matteo salvini facing continued opposition in his subsequent early election over this past weekend, a number of party leaders said they would not support a vote of no confidence against the coalition government political party chiefs will meet in the senate later today to discuss the motion and if it proves necessary they could set out a timetable for the government's potential dissolution. meanwhile, salvini denied reports he will threaten to pull italy out of the euro area if rome cannot find a budget compromise with brussels they reported that salvini will campaign on an anti-eu and anti-euro ticket if a snap election does occur. our colleague joins us from milan. i want to ask you about the mechanics here it's all very well these party chiefs saying we will not vote

against the government, but ultimately this is all about the president, isn't it? >> yes, it is. it's going to be up to him how this will be moving forward. of course, just to give the background, alveosalvini wants snap elections he can count on about 36% of the vote and with the support he could easily win in a snap election. so that, of course, puts other parties that are in parliament now in a position of concern as to how to make this not happen the situation at this point, these party leaders will meet today. it's a very complex situation. it's actually quite complex even by italian standards also because of the timing, because of course we do have the budget law that needs to pass in october, there is the situation right now that we are in the middle of vacation for italians

and for the parliamentarians as well and the timing would mean that if the budget law doesn't pass that it would create a lot of economic issues that italy would have to face so it's very delicate. he could ask him to go back to parliament and try to form another type of -- another majority in order to at least get past that hump of the budget law and to try and ease the tensions that are already there with the relationship with the eu if the budget law doesn't pass, this means that the a.t. taxes will raise in january. that will have a strong impact on italians and increase costs per families by 23 billion in 2020 also, another issue would be that the only amount that could be spent each month is 1/12th of the previous budget of the 2019 budget and this in a situation where you have a spread that spiked up to 239 points on friday.

it's pretty stable today but of course that increases the cost of debt that is already very high for italy and with growth that is pretty much at zero percent this creates a situation that just makes things more difficult. also, keep in mind, as far as markets are concerned, we didn't see a lot of reaction today. we did see a decline on friday, but today there was sort of a pickup in the markets because finch left the ratele at triple b with a negative outlook for italy. they left it unchanged, and that was a relief to the market we'll hear out from moody's in september and october. but for now, that of course is a bit of a sigh of relief for the market there is a lot at stake and the scenarios are quite complex to understand at that point, but the other option, of course, as i was saying salvini could tie up on the other hand, the five-star movement whose support has

slipped 17% versus a year ago they were above the 30% level, they are actually in talks with the p.d., which was their arch enemy up until a year ago. it's very complex because also within the p.d. there are sort of two factions that are being created. one is the secretary, the head of the party rensi still has a lot of influence on the p.d this actually could break up the p.d. or create some sort of a division between the party if they were to decide to tie up. it's really too early to tell. the way the market is actually behaving, you're seeing that there is still a big question mark out there in everyone's mind so today will be an important day but the next weeks will be -- the next days actually up until the 20th of august will be vital. again, it's a very complex situation that salvini has triggered in the wave of his strong moment of support

back to you for now. >> claudia, thank you for that comprehensive overview it's never going to be easy. certainly quite many complex different matters to deal with, but investors are reacting positively today coming up, we're also on board the u.s. navy's fifth fleet in the gulf as tensions in the strait of hormuz continue to melt stay with us with sofi, get your credit cards right- by consolidating your credit card debt into one monthly payment. and get your interest rate right. so you can save big. get a no-fee personal loan up to $100k.

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♪ we're here aboard the uss gladiator. this is avenger-type mine sweeper. when we talk about the potential closer for the strait of hormuz, i want to show you what the u.s. navy is actually preparing for this is a bottom mine and a board mine amidst all the speculation that the possibility that something could happen, shut down the strait of hormuz and disrupt global oil supplies the captain of this craft has been out here since 2017 and she has yet to see a live mine. >> so how often are you in contact with iranian vessels >> we're in contact with -- if the iranian vessels reach out to us, then we have pretty standard

responses that we supply them. >> and walk me through some of the things you guys do as part of your team, your mine sweeping >> we do a lot of exercises leading up to that our goal is to maintain a ready asset and a proficient asset to be able to go out and defeat a credible threat we know is there. so we do a lot of training we do quarterly training events either with amongst ourselves or with the british or with other gcc countries. and we go out and we practice finding and neutralizing mines that's our mission. >> in terms of those mines there is a common perception amongst oil traders, those who watch the markets that the only way really that iran could potentially shut the strait of hormuz and disrupt oil supplies would be through mining, but you've been out here since 2017 and you have yet to see a live mine? >> that's accurate, ma'am. i have not seen a live mine in the capacity i have been serving here, but we do know that is a potential and we are going to

maintain a ready unit and a ready crew to be able to defeat that. >> you do believe it's a credible threat? >> i do believe, yes, ma'am. >> that was our colleague hadley gamble on gladiator. she joins us the home of the u.s. navy's fifth fleet. hadley, do the servicemen and women you talked to over the weekend seem prepared for the situation in the gulf region to get even worse >> well, willem, you talked to the folks here staxed not just with the fleet here in bahrain but also on the uss abraham lincoln here in the persian gulf area, they seem to think they have been training for just this kind of action their entire career the end of the day, this is not about going to war with teheran, this is about deterrence through our very presence here, seeming to think that the presence of an extra u.s. aircraft carrier would be enough to really tone down the dial when it comes to

what we have seen over the past couple months. the u.s. president donald trump trying to put together this 20 member coalition of the willing, if you will, to get involved and to be policing the merry time commercial shipping lanes in this area, he's struggling to do that how different this 20-member coalition would actually be from the coalition that we have today, which is around 33 member nations who are already tasked with overcommunication, oversharing when it comes to keeping this region clear. i thought it was also interesting when we were speaking to the commodore, he was saying to me as well, at the end of the day, what we're trying to do here is overshare information so that we have as much information as we can possibly have on what's exactly happening in all areas of persian gulf as you know, they're sending out these patrol craft on a regular basis. patrolling massive amounts of coastline. these are the smaller craft that really have the most interaction on a day-to-day basis with

iranian craft in the area. so a lot of questions surrounding whose going to pay for all this we asked the folks we are speaking to not just on the uss abraham lincoln who are we talking about? we're talking about the chinese, all those who take in oil in these asian markets and also of course talking about the folks right here in the gulf, saudi arabia, uae, all those who export oil to the asian markets. are we going to see them pony up as well? they work to some degrees within these coalitions that keep the shipping lanes clear, but are we going to see them offering up some actual monetary support so a lot of questions surrounding what this is going to eventually look like. operational sentinel slowly getting under way and the folks we speak to seeming to think they haven't seen really much of an up tick in iranian communication over the last couple months even as this war of words continues between washington and teheran, guys >> very hard to know what to

make of it all very interesting subject there the world's largest oil company has reported a net income of $46.9 billion for the first off of the year. the lower oil price and higher costs took its toll on the firm, but the ceo says they continue to maintain, quote, strong, free cash flow. the report made no mention of the highly anticipated pirks o which has been on ice since the oil price decline intensified. i'm happy to say the cio of the scottish investment trust is still with us. what's going on from your perspective in the energy markets? what are the important pieces of data informsers should be looking at and why do they matter >> it's a complex market, of course i say there's three or four things that investors should be looking at and taking a view on. the first is shale production in the u.s. there's a debate whether the shale operators make cash flow through the cycle or not i think the jury is still out

there. then you got the geopolitical situation with iran. how is that going to play out? i think again it's probably going to come to nothing, but it's a threat in the background. then lastly you have the outlook of the global economy, perhaps this is most important, china is a major, major consumer of oil and the economy doesn't seem to be doing that well. >> you describe yourself as a contrarian investor, you look to look at the parts of market that are underappreciated or undervalued. one that springs to mind here is the uk, the footsy index many pay a high dividend yield even though attractively valued how do you pair the two of them together and thinking as a contrarian investor. would you say the value is there and the dividend yield is there as such this becomes an attractive proposition for me? >> exactly when we look at a situation, we're looking at things like -- we want a plan b

slow to recover and plan b so to speak, dividends could start actually we do think some of the oil majors look interesting because they're very unloved by most investors they pay big dividend yields. the uk generally is largely shunned by overseas investors for obvious reasons. >> do you think it's time to actually look at buying opportunities within the snuk >> possibly. we're still slightly uncertain situation, but yeah. the uk in a global sense is very much overlooked by international investors. very interesting. >> quick final question, you talked about companies that pull the black stuff outof the ground, what about the gold

stuff out of ground? you said you're quite bullish on the potential for gold, is looking at the mining companies that focus on gold one option for you? >> very much we own three or four largest holdings are gold mining like gold, first of all f you want to buy a gold miner, you have you should have a view you like gold. why do we like gold? we had ten year of cheap, free money, quantitytive easing, there's been an attempt to tighten policy and it's failed what's going to happen now is the way to think about it is you can't really print gold. you can only grow output 1% per annum or print as many or as much of a currency as you want we think governments globally will print more and more money which won't necessarily be bad for stock markets but is inflationary the other thing is for the gold miners themselves it used to be they were super expensive, crazily valued but the etfs came

away 20 years ago and now they're proper businesses. so that's why we think they have a particular opportunity as well. >> thank you for coming this morning. really appreciate your ideas and time ceo and cio of the scottish investment trust and also coming up on the show, shoe maker dr. martins has a spring in its step find out why when we speak to the ceo kenny wilson that is coming up next (client's voice) remember that degree you got in taxation? (danny) of course you don't because you didn't! your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you. here's another cleaning tip from mr. clean. cleaning tough bathroom and kitchen messes with sprays and wipes can be a struggle. there's an easier way. try mr. clean magic eraser. just wet, squeeze and erase tough messes like bathtub soap scum

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♪ welcome back to "street signs" i'm willem marx. >> i'm joumanna bercetche and these are your headlines. european markets rally after two-straight weeks of losses goldman sachs warns the trade war has raised the risk of a u.s. recession ams sees the light it launches a 4.3 billion euro offer for lighting manufacturer asram and kicks off a bidding war with bane and carlisle the search is over abb shares get a boost to sandvik ceo prepares to take

over from acting ceo in march. and hong kong's aviation authority cancels all flights on the fourth-straight day of an airport sit-in as water cannons break up demonstrations elsewhere in the city. well, markets are a little bit more stable than some of the price action we had on friday. you may recall friday was a very heavy selling day across the board for european indexes, stocks 6 o o 00. ftse mib was down on friday. things have stabilized overnight. we're seeing that stabilization in chinese equities. but to be honest, the picture has turned south in the last half an hour or so earlier on in the session we did have these indexes trading north of .7 percentage points higher they seem to be dipping in the

last half hour actually right behind they have the ftse 100 now in negative territory. we were in positive territory a short while back down .2 percentage point all eyes on the italian index this morning has dipped quite a lot as i just mentioned. yesterday was a heavy selling day on potential speculation of an upcoming snap election. lots of questions about whether or not the president will allow that to happen before the draft budget season that happens in pocket but again that is a major mover and major focus of the markets this morning but let's switch on and look at the currency markets as well here you can see euro is trading on the back foot so we're giving back some of the gains we saw towards the end of the week last week and here the picture is one of a stronger dollar quarter percentage point weaker on the session a bid in the dollar yen, though it is a japanese holiday today we are seeing a bit of bid into

the safe haven then cable is below 121. you may remember we dropped through 121 on friday after that disappointing second quarter gdp print coming at negative .2 percent for the quarter more than since then, there has been a lot of pressure on the pound that seems to be continuing, although this morning we're stabilizing around these levels. keep an eye on that. u.s. futures, last week was a week where all of the three major indexes in wall street close in red for the week. and of course, last week was the week that saw major escalation coming to the trade war as well as other geopolitical concerns this week, we're starting off the monday with all three majors yet again in the red but it will be a big one in terms of data later on this week we'll be getting the inflation dat data, retail sales numbers to watch out for to get further clues on how the u.s. economy is doing this week. the head of china said markets should not expect

disorderly depreciation. in a central bank publication, beijing has, quote, the confidence and capability to fend off shocks. the risk of recession is rising, according to goldman sachs the bank has also predicted the u.s. and china will not strike a trade deal before the 2020 u.s. presidential election. goldman lowered its four quarter gdp and saysexpects next round of tariffs will take effect on september 1st as president trump has warned ♪ well, british shoe maker dr. martens has reported a 30% jump in full year revenue with strong growth in both retail and ecommerce. the british shoe maker opened 20 new stores over the year including eight in europe, four in the u.s. and two in hong kong

very happy to say that kenny wilson, the ceo of dr. martens is back in us. back in my day we used to call them dms i don't know if that's still the case. >> all the cool kids in my high school years would wear them >> were you one of them? >> no, i wasn't actually how do you keep the brand current and relevant it has somewhat of a nostalgic con notation to the brand? >> i think many people, like yourself, grew up with dr. martens and the reality is the brand has stayed relevant for every generation over the last six decades. and that's really done by having the right product for consumers. that's why our sales are so strong. >> you're opening up shops in europe, u.s. and also in asia as well where would you say have been the biggest geographic opportunities? i'm surprised to see that you're opening so many stores in europe coming at a time when the macro

seems to be unsupportive >> well, i think there's opportunities for dr. martens around the world even though we trade in 60 markets. we're not that big in some of them to give you an example building on your question of europe, we sell about 1.6 million pairs in the uk but only sell 300,000 pairs in germany germany has 85 million people, the uk has 65 million people we have opportunities there equally in the united states, we sell about 3 million pairs and there's 338 million people so, dr. martens is a big brand name but business can still be a lot bigger around the world. >> you're quite unusual just to pick up on this as a retail, you're not only expanding your online revenues, which i'm sure everyone is aiming to do at the moment, but you are expanding your physical footprint. elsewhere we're seeing a real entrenchment why is that valuable for you guys is it about brand extension to have these brands in big cities or really seen as a revenue

driver >> first and foremost, the store's business is there for us to position the brand in front of the consumer. it enables us to give our customers the opportunity to see or full range of products and to get the best representation of the brand. it's not really there for revenue. we've only got 109 stores around the world which for a brand name as big as our's is actually quite a small number as you said, ecommerce is our fastest growing channel. the retail business is there to position the brand effectively >> and when you focus more and more on direct to consumer, you're essentially trying to cut out the middlemen. why is that important for your brand, do you think? >> i think the reason we focus on direct consumer is to control our own destiny because both on our own websites and in our own stores we can put the assortment we want in front of the consumer there's no middleman in the middle and allows us to give the full experience that we want >> and i'm still imagining that your target audience is perhaps a younger audience, teenagers,

early, 20s, 30s. how has social media changed the way you think about digital marketing and you're relying a lot more on that and on the up take from the younger generation, they're posting on their instagram, on word of mouth, facebook then say traditional advertising you would have done in the past? >> first thing i would actually say is that it's a myth to think that dr. martens only sell to young people we sell across all age groups. we're quite representative of the population but we have a large amount of young people consuming the brand, yeah, social media is a big part for us we've got if you take the uk as an example, we've got the highest level of engagement amongst any youth-focussed brand right now. you look at people who like or share what dr. martens does online, we've actually got engagement levels 17, 18%, so it's very important to social media. >> one quick final question from me, how does it help you guys or

hinder you to have a private equity backer? so you're not having to report to the marketplace every quarter and you can presumably think more long-term, but obviously there's a huge focus on margin what's the challenge to balance those competing requirements >> i think it's a major advantage for dr. martens to be private equity owned they have begrown sales 30% and profits 70%. we're getting pay back on investments previously made and also we're continuing to invest at the rate of our sales growth. our operating expenses grown 30% along with sales growth. having private owners really supportive of the business allows management like myself to be able to take long-term decisions. >> speaking of long-term decisions, you are uk-based company. what do you do on november 1st if it's a no-deal brex it?

>> we're reasonably well prepared with the uncertainty of brexit 77% of our sales are outside the uk in terms of preparations, we've opened distribution center in the netherlands, our european customers will be served from the distribution center in netherlands and continued to invest against the business. we invested in uk manufacturing, systems, people. so despite the uncertainty of brexit, we feel our strong performance will continue. >> still investing in the uk, that's good to hear. kenny, thank you very much for joining us on "street signs. kenny wilson the ceo of dr. martens. >> thank you ♪ well, chelsea's record goal scorer lampard endured a tough start to life as head coach, they lost 4-0 on the opening weekend of the new premier league season.

our colleague adam reed joins us with more details. not a happy moments for chelsea fans, i imagine. >> tough world of premier league management, willem frank lampard returning to the club in the summer but they have this transfer band which means he's basically got to work with what he's got. they haven't been able to sign any players, but frank lampard has been investing in youth, chelsea has seven home grown players for a change in their squad for the premier league season, which is kind of unheard of they're used to signing big name players for lots of money. they had a couple new signings on show at the weekend including club record signing but he was signed in january before this ban was taking place but it didn't go well for them on the pitch united got the lead early on manchester united are going to fare this season, they let go of their main guy who went to

intermilan a debut goal for dan james the world record fee paid for harry mcguire. all well at manchester united. we'll see how long the wheels can stay on this season. we know that optimism was around last season but then mourinho didn't last the season frank lampard had a very tough start to his chelsea career and after the game he sort of laid out just how tough that job is >> we made individual errors that led to the four goals out of their five shots. so there's the harsh reality for us let's be clear with the injuries we have at the minute, the fact we wouldn't bring in player this will be a progress to a degree we have to learn harsh lessons and correct them pretty quickly. >> so manchester united at the top of the table behind city

city picked up where they left off last season by scoring five against west ham very early stages in the premier league season. liverpool last season runner up are in third because they started the premier league season with the 4-1 win. it was as much a weekend as well because that played its part as well. >> one of those goals close to off side you immediately as a viewer think is that off side. >> that will be very significant indeed, willem old trafford no big screens. so anyone inside the ground is relying on information that comes over even at the london stadium, there was so much confusion when the var decisions were being made there was a penalty that needed to be retaken and no one in the stadium knew what was going on

and why it had to be retaken even the commentators at the time thought, the goalkeeper has come off his line but they're not looking for that in the var referee's room it's very confusing. nobody is really sure about it, but a lot of people really do like it because certain things, like off sides, you can say that is off side and that is an off side however, when it comes to football and being subjective in the drama of football, there's margins that maybe should be allowed. >> margins of errors like hands of god, for example >> that's very grainy footage. >> it's still very early in the season many more games to talk about. lots of chat that was adam on the side of the premier league season. also ahead, head to cnbc.com to read by wayne rooney is leaving his multimillion contract in the u.s. to play his soccer in england, second tier. still to come, we're

celebrating food week here, our own food week here on cnbc we're giving you some food for thought, food waste and companies trying to solve the problem today. the ceo of biffer coming up next

welcome back to the show hong kong airport has cancelled all departing flights not already checked in and all arriving flights that are not already in the air for the rest of the day as protests continue. the city's aviation authority told passengers to follow updates on their website and not to travel to the airport that is following another weekend of violent clashes between anti-government demonstrators and the police elsewhere, thousands of people took part in what one observer group described as russia's biggest protest in eight years. the white countermonetary organization says up to 60,000 people participated in a weekend rally in moscow and other russian cities as they called for free elections the protests did receive

official authorization but police arrested dozens of people who moved to other parts of moscow away from the designated protest areas. ♪ well, we've got a week of special programming lined up for you here on cnbc focussed on what we eat. in the coming days, we're going to give you food for thought as we look at issues such as food security, farming and sustainability and the future of food we're starting things off today by diving into a global problem and that is of food waste. with that, i would like to bring in the ceo of biffa, nick davis. it's great to have you with us for people who are unfamiliar with what your company does, you're obviously engaged in the collection, treatment and processing as well as disposal of waste and recyclable materials. so great person to have on our show on our food for thought week can you just start off by giving us a lay of the land in the uk

right now? how advanced would you say the uk is when it comes to recycling and waste collection >> the uk made a lot of good progress in the last ten years and it's now recycling rate got to around 45, 46% which is a long -- big improvement from where we were. the next challenge is how do we push that on further and the big area we want to tackle is food waste. >> it's interesting you say that because i see some of the targets are for that number to move from 45 to 50% to 60% in the next couple years. it's not so easy in some cases to recycle i was reading a report by the telegraph saying that only one in five councils in london provide a complete recycling service. that's just not good enough, is it >> it varies a lot around the country. you also in terms of recycling services have to look at the nature of the houses you're collecting from as well.

not every service can offer in the areas. we asked and the government is trying to set up structures to rationalize that to make it more consistent across the uk same kind of materials which will make it easier for people to recycle. >> is it disappointing that uk will not make targets set by the e snurks. >> yeah, we always want to hit targets. we still have the opportunity to improve. we have the opportunity to promote further, introduce new services it's a journey it's a direction of travel we're trying to achieve. >> how much more efficient could advanced economies like the uk and elsewhere in europe, north america, be when it comes to producing energy from waste? >> there are different forms you can get energy from waste from different forms

you can also look at waste which is really too difficult to recycle and put it in energy from waste plant will effectively burn it. and create steam and generate electricity from that as well. there are a number of opportunities in the waste cycle where you can generate electricity. >> could governments be doing a lot more on that >> well, i think the first we want to do is promote recycling. that generally reuses it if you look at energy from waste as a disposal point, it's good because it's better than landfill and it generates energy, but your focus should be on recycling. >> just taking you back to the producer of food waste and here i'm referring to businesses, do you think it should be mandatory for businesses to now actually start recycling because it varies a lot from business to business >> yes, we do. a lot of businesses have obviously volunteered to do it and for separate food waste collections as well which we think is a really good idea and

will boost it. scotland, the rate shot up to 40% on food waste. you can make big wins in this area. >> thank you for joining us on "street signs" today that was mick davis, the ceo talking about some of the challenges of food waste recycling in this country and across the continent. quick look at u.s. futures before we head out the the session. s&p, dow jones and nasdaq all seen opening in the red. dow down 110 points this after a negative week for all of these indexes last week. remember, trade war still front and center of all of these discussions. that is it for the show today i'm joumanna bercetche. >> i'm willem marx thanks so much for watching. "worldwide exchange" is coming up in a few minutes time new align whole food probiotic.

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♪ it is 5:00 a.m. here at cnbc and here is your top five at 5 is the trade war about to heat up even more china cutting its currency rate weaker than expected for the third-straight session. speaking of cuts, goldman sachs warning the trade war is raising the risk of recession. hong kong police and protesters clashing again in the tenth-straight weekend of unrest and now hong kong's airport canceling all remaining flights for the rest of the day. black rock buying a major stake in sports illustrated parent's company authentic brands. gymnastsy moens biles is making his