gerfa: i'm glad we're back. keith morrison: wonderful, wonderful. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] welcome to "street signs." i'm joanna versace and these are your headlines europe joins the rally as the stock 600 hits the highest level since august 1st amid expectations of high level trade talks between the u.s. and china next month chipmakers and autos lead gains as trade sensitive sectors welcome the apparent easing of tensions as china's commerce ministry says the u.s. trade call this morning went very well. sterling retreats from the biggest one day gain in more than five months as the threat

of a uk election still looms, despite the government's double defeat in the house of commons >> 48 hours ago he was leading the chants of stop the coup, let the people vote. now he's saying, stop the election, stop the people from voting >> two year treasury yields hit the lowest level since 2017, while goldman sachs ceo tells cnbc exclusively a recession could be on the horizon. >> bond market is reflecting a sentiment there is anxiety about the prospect of a recession, in the u.s. less evident in the data, perhaps more evident in a variety of different markets like germany here in europe. but it is possible well, markets are trading a lot more buoyantly overnight, especially on the news that the two sides, china and u.s., are reportedly going to have a meeting in october that's given a relief rally to asia markets and u.s. futures as

well as we're heading into this european session you see there is quite a lot of green on the board already for the stocks 600 after the better session yesterday. that means focus for global markets. we'll get into that story further. you see the stocks 600 is up .4% one market in particular i want to talk about is the uk. so switch -- let's switch over and talk about individual boers here ftse 100, down .4. we had another crucial day for uk politics yesterday with the government getting defeated twice in the house of commons. the first time no deal brexit deal that seems like it is on -- the house of lords by the end of this week, that would put an end to the possibility of a no deal brexit on october 31st if the government stays in place. and the second, of course, the prime minister was calling for a snap election, also got defeated on that point. we are seeing ftse 100 trade heavy, even though the pound has rallied, rallied almost three

points in the last couple of days, trading north of 122 xetra dax up this is another data point showing that the manufacturing sector in germany is coming under pressure cac 40 higher, positive names there, the enginemaker at the top. and the italian index, a lot of time discussing italian politics over the last week, we finally have composition of the government and investors yesterday were quite relieved to find out that a lawmaker will be taking over the finance ministry, a brussels friendly face and there is hope in the market that the relations between the two will start to improve. the italian index is up .3%. let's talk about sectors couple of things going on here the main story i mentioned was to do with the potential positive steps between china and the u.s. we are see something export

sensitive sectors in europe respond well chipmakers and technology up 1.8% autos recovering nicely up 1.6%. industrials too. really any one of the sectors that has exposure to trade is doing quite well we have defenses on the downside, utilities down half a percentage point, real estate down .4% all and all, better picture for european equities. the top story is that china's officials have agreed to hold high level trade talks with the u.s. counterparts next month, according to china's commerce ministry beijing says a meeting has been scheduled for early october following a phone conversation between the vice premier, steve mnuchin and u.s. trade he representative robert lighthizer a phone call between both sides did take place, but did not confirm next month's meeting eunice yoon has more. >> reporter: u.s. and china trade negotiators will resume

talks in early october. both governments have confirmed that the vice premier held a phone conversation this morning with his u.s. counterparts, robert lighthizer and steven mnuchin. both agreed to meet face to face in washington as planned working level teams will consult each other in mid-september to lay the ground work for the high level conversations. chinese indicated they're approaching the talks with caution. the u.s. imposed tariffs this weekend and plans more later this year including on october 1st, the anniversary of the founding of the people's republic of china. beijing wants all the additional tariffs lifted the commerce ministry said the two sides agreed to work together to create favorable conditions for negotiations, though it is still unclear if these talks will lead to a breakthrough for a trade deal. eunice yoon, cnbc business news, beijing. >> the other top story in europe, boris johnson isn't giving up on the snap election despite a defeat in the house of commons. the prime minister will today

say the labor leaders refusal to get behind a vote is, quote, a cowardly insult to democracy certainly has been a wild ride for the pound over the last couple of days this is where we're trading at now. 122.60 two days ago we traded shy of the 120 level, 11980 recovered almost three full points in the pound now as the market cheers on we're less likely to see a no deal brexit come the 31st. lots of different moving parts vil villem joins us live it looks like we may see a completion of this bill, the passage of the house of lords by tomorrow afternoon but i believe you have a guest with you who can give us more color. >> certainly more detail, that's right. i'm joined by a member of the house of lords, robert hayward we got two more days of legislation in the upper

chamber, in the house of lords, over this effort to try and block a no deal brexit at the end of october is there any chance that will run into major obstacles as far as you're concerned? >> no, the agreement has been done, completed this morning and we will now deliver that bill back to the commons with effect from friday afternoon >> just for viewers watching this, both in the uk and across europe, the u.s. this time of the morning, how unusual was the contraction of the timetable that we saw agreed yesterday, in terms of the way the lords -- the house of lords deliberates over this kind of legislation? >> we do the revision and the review of legislation. and that takes time. and therefore what was happening yesterday was extraordinary. we're in extraordinary times and we probably will be for the next few days. >> let's talk about what those extraordinary times could lead to down the road boris johnson is prime minister has said he's keen to have elections as soon as possible. jeremy corbyn saying, well, we would like elections too, but

not necessarily on your terms or at the time of your choosing in terms of what you understand about the polling numbers we see today, what do you extrapolate from those in terms of a general election outcome right now. >> we have to accept there will be an election at some point fairly soon. whether it is next week or few months, it is going to happen. difficult to project in terms of results because for the first time ever it is likely that we will see a series of pacts, historically liberal democrats and the greens have done one or two arrangements what we have seen a few weeks ago where all the remain parties allied with the democrats may become common practice and the same, will conservatives have alliances with the brexit party, will some liberal conservatives be allowed a free run by some liberal democrats? it is going to be very difficult to predict and so we see the nominations for almost every

constituency >> brexit is remaking the political landscape inside this building, but you're saying could also remake the landscape across the united kingdom when it comes to fighting individual constituencies how easy is it for people to look at polls and understand what might happen after an election at this stage >> it is very difficult indeed i was talking to a cabinet minister last night, i said i'll tell you what would happen if we had had an election tomorrow today. but don't ask me to tell you what the result would be at the end of october because there are all these alliances potentially around, some may fall apart, some may be done on a local level, very, very difficult to predict. as you say, absolutely unique in british politics. >> you have the conservative party, look at the polls at the moment around 34%. for viewers not perhaps that familiar with the uk electoral procedure, does that mean they end up with a third of the seats in the house of commons? >> no. you can't extrapolate particularly on relatively low

numbers in terms of anything below 40%, you cannot extrapolate what the result will be because you may get people switching votes on a tactical basis of the view that i hate that party, so i'll not vote for my own party, i'll vote for somebody else. and that's what i think will happen in a lot of constituencies, even if we don't have formal alliances between political parties, which i think is highly likely. >> again and again, investors, analysts, economists talk about fears of a corbin government, our viewers talking about that, our gefrts taguests talking abo frequently if you look the at the numbers now, the possibilities around an election, how likely is it that you end up with a corbin-led government >> there say possibility no question because you could finish up with labor not being the largest party. the conservatives being the

largest party. but labor being able to go into coalition with, for example, scottish nationalists who all indications are at the moment will sweep most of scotland. the possibility of a coalition in some form or another, led by jeremy corbyn, is a prospect. >> we'll leave it there. thank you for joining us this morning. that's robert hayward. a little bit about statistics and mathematics, i should add, and a member of the house of lords that will be scrutinizing this over the next couple of days and he said going it through by next week. >> very interesting to hear what he had to say. the eu's top brexit negotiator michelle barnier has reportedly told diplomats that brexit talks are, quote, currently in a state of paralysis barnier warned of difficulties in agreeing of pretrade deal as number ten takes on a harder line on diverging from eu

standards. as barnier writes for brexit negotiations yesterday, a reporter asked if the talks were a waste of time. take a listen to his response. >> are these talks a waste of time >> we can't speak calmly be calm. be calm, please. be calm. after my meeting with the member states, now the department, just want to tell you that the eu will remain vigilant and united. >> eu, vigilant, united and calm not so much the case for sterling pounds and the price action we had the last couple of days let's bring in lawrence cramer from creditor. great to have you with us. let's talk about the pounds here i was discussing with a guest yesterday, it seems to me the absolute best case scenario is probably another extension or even very unlikely that we get a deal passed at this point given as michel barnier says the uk government hasn't come with

alternative proposals. best case scenario is an extension. worst case scenario is still hard brexit, snap election, many other potential downside risks as well with a change of government why is the pound trading up at 122? >> i think it is a bit of a relief that the hard brexit seems to be off the table. the scenarios you describe i think an extension is by far the most likely now. it is very difficult to see how the prime minister could not obey the orders of parliament. and i think it is pretty clear, we'll go through the lords, there will be no filibuster, royal assent, a clear mandate to go to brussels unless there is a deal before october 19th what is the chances of that? i have to agree with barnier, it is close to zero no negotiations are actually happening. and they have been negotiating since article 50 triggered for 888 days now we have like a bit more than 50 days left and we have a much more

antagonistic relationship between brussels and number ten. what is the chances of a breakthrough in that period of time i think it is minimalistic the strategy of the uk government, the new uk government, was to run down the clock. and instill a sense of panic in the eu negotiating team. the member states of the eu. that is clearly not going to happen this is a total misjudgment of how the eu works i think this has been one of the problems from the very beginning of the negotiation process, that the uk government did not understand how the eu works, how they negotiate and the people that actually knew about it, they were taken out of the negotiation team so grandstanding is not a strategy. >> indeed not. i was going back and looking at the year to date performance of the pound. versus the dollar, it is 4% weaker versus euro, it is only 0.2% weaker >> it is exactly at the same spot as they were on january 1st. this is remarkable because back then you still had sort of more, you know, prospect

of a proper deal being negotiated, in march, all the indicative deals all still on the table now, i think what you have now is a relief that you have probably another three months. but what can be achieved in the three months the basic conflicts remain the same it is basically the irish back stop unless we have an election and a nonconservative government, these problems will continue to pop up just delayed by three months. >> my point is so much of the narrative in the uk is about who is going to get hit harder on a brexit, right? every time the bad german data, the brexiteers are cheering. so there is a narrative on both sides. actually, if you look at the currency fare, the market is saying both are going to get equally hit. >> that is just not true this is delusional the uk exports 15% of its gdp to europe germany exports like 4% of the

gdp to the uk. overall, yes there is a deficit in trade between the uk and europe. but the uk is a much smaller place. it hits it much bigger anyway, what you need to do to keep in mind, it is not trade that matters so much for the uk. it is services and even in the wto, services wouldn't be covered. the uk will be hit hard by hard brexit this is why running down the clock just doesn't work. >> that means quickly you buy euro versus sterling >> i would, yes. >> okay. all right, we'll pick up the conversation the next chat also coming up on the show, the switzerland battle with the eu over equivalence set an ominous example for the uk post brexit we'll talk to the ceo of the swiss exchange after the break by the strolle♪s

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hey. hey. you must be steven's phone. know who's on your network and control who shouldn't be with xfinity xfi. simple. easy. awesome. welcome back to the show swiss stocks have barely been impacted by a spat over equivalence with the eu brussels let the trading arrangement expire at the end of june as part of onongoing dispute over long-standing financial, immigration and trade ties

between the two sides. sounds a bit familiar. a settlement could yet to be reached, but the standoff sets a precedent for what could face the uk in post brexit negotiations very happy to say that the ceo of six europe is with us as we just said, it lacks like equivalence is what we have currently in a nonequivalent situation between the uk and switzerland. how has that impacted your overall trading volumes historically >> actually the short-term has had a positive impact. 30% of the trading in swiss used to happen in eu. in the normal equivalence regime we are now and the special order of the swiss government put into place, all the trading that happened has moved to switzerland. >> if i take this as a template for what could happen to the city of london, obviously switzerland is a friendly face to the eu. this has been an ongoing story for years now.

and now has really turned on the head it seems to me that if it is not easy for swiss companies to get the equivalence from the eu, it is going to be very difficult for british companies operating within the city of london. >> yeah. i think two things are important there. first of all, equivalence is a technical thing. technically there are exchanges in switzerland need to be equivalent to the eu laws. switzerland is technically equivalent the eu used this as a political means to help. we talk about the overall framework agreement. you could see, you see the stance of the eu against the party countries is more and more switzerland has seen that. you'll foresee that in the eu, the uk discussion as well. it is an example of how hard it can be. >> you say it hasn't impacted your overall trading volumes have you thought about buying a boerse to get access to the market again. >> the reason it hasn't impacted our trading is because our government, the swiss government decided to put in a counterlaw

to basically disallow swiss to be traded in the eu in the future that has protected our integrity. and therefore a need for me to move or do anything within the eu is not there anymore. in the long run, i think it is not good for capital markets better open, transparent markets if you trade shares on different platforms and different jurisdictions. that's not the case now. short-term, okay looks good in terms of volume. long run, not good for the capital markets. needs to be free, accessible for every investor and every issuer. >> you mentioned about the blueprint for the uk i think that's a very critical question because the uk financial sectors immeasurably is bigger and more important to the eu than the swiss one, the swiss one is already important, no offense here. what we need to keep in mind is the financial services bill has not been passed by parliament in the uk the financial services bill is important because it will allow the uk government and regulators to continue to implement new eu

rules on financial services for two years. so this would basically empower the government to do that without having to go back to parliament now, with parliament provoked there is really no time to pass this bill before october 31st. it is critical what the functioning in my mind and the continued equivalence of the city of london that either they squeeze this into parliament to pass it before the 31st of october or the extension of article 50 happens otherwise the city of london could end up operating in a limbo, its relationship with the eu, detrimental and disruptive for both sides. >> what is interesting about this is the whole narrative as we have been discussing has been about the impact of tariffs on goods and goods trading with forgetting about 70% of the uk economy is services and you need to do something to protect the services sector, particularly the financial services sector. if the uk ends up in a situation where there is no regulatory

privilege with the eu, do you think that could be much more detrimental for a country like the eu with a much larger financial system than switzerland? >> i think it will there is only losers on both sides and it is a matter of magnitude and how big the laws is that's my view in the situation. i think there are many people in this country who notice better than i do. i think for switzerland it is crucial that there is a well functioning financial market connected to the rest of the world. that's not happening if your services and your financial industry cannot operate properly that will hurt your economy, that's going to hurt your currency, going to hurt in many different ways that's crucial, that is properly dealt with and done in an orderly way. don't do that, you're on a big risk >> one other strategic question, they announced they're looking for buyers, getting involved in more data sources. can you see yourself moving in that direction is there a trend out of

exchanges towards acquiring more data sources >> yeah, six already has 40% from data businesses next to the exchange and banking services so i always say jokingly, they're just copying the model we already have, just a little bit bigger >> we'll leave it there. thank you very much for joining us on the show, the ceo of six group talking us through some of the repercussions if at all of the swiss eu ongoing tit for tat about regulatory equivalence something to watch out for when it comes to the uk discussions as well. now the italian premier's new government is being sworn in in rome right now. he will take on the role of foreign minister, while a member of european parliament from the pd will be the finance and economy minister so the markets have reacted positively to that outcome, particularly the finance ministry being taken over by pd.

let's bring in lawrence cramer how do you think about italy here the yields are rallying like there is no tomorrow. >> yes, no, they are at record levels now it is remarkable the ten year bund of italy is trading at 20 basis points if you told me that two years ago, i would say this is the realm of impossibility things have never happened before happen every day in europe now and the uk of course as well. so i think this rally is driven by relief, relief that you don't have the selvini government, it is still associated with the risk of maybe a more confrontational stance with the eu, potentially even an eventual exit from the eurozone, which would be hugely damaging to italy and europe more broadly. there is relief the worst case hasn't happened. this is typically italian pattern. you're happy the worst hasn't happened you really need to look for good things to happen we have a government, what can this government actually

achieve. they published this 26 point coalition agreement, which is fairly fuzzy which talks about fiscal expansion, which italy cannot afford it does not talk about structural reforms, which italy desperately needs. what is achieved other than buying more time we'll see. but for now, there is stabilization in the political arena. if brexit wouldn't happen, this would be the headline all over the place. >> trust me, i know, i was in rome last week now everyone wants to focus on westminster. the focus isn't away from rome lawrence cramer with us. the world's big investment banks have had their worst start to the year since 2006. goldman sachs cfo says it is understandable they're concerned about central bank easing. hear exclusively from steven shurr. that comes up next

welcome to "street signs." these are your headlines europe joins the rally as the stocks 600 hits the highest level since the 1st, amid high

expectations of trade talks between the u.s. and china next month. chipmakers and autos lead gains as trade sensitive sectors welcome the apparent easing of tensions as china's commerce ministry says the u.s. trade call this morning went very well sterling retreats from the biggest one day gain in five months as the threat of a uk election still looms despite the government's double defeat in the house of commons >> 48 hours ago, he was leit le leading the chants of stop the coup, let the people vote. >> hong kong chief executive carrie lam says she hopes the withdrawal of the controversial extradition bill will bring stability to the territory well, overnight markets were buoyed by the potential trade talks taking place between the u.s. and china in october. and that has give and boost to

equities today in europe, the picture is mixed. we got ftse 100 trading on the back foot. as we were discussing on the show, plenty of political head winds there and no doubt the market is also fixed on the fact that we may be looking at a snap election at some point in the next couple of months. ftse 100 trading on the back foot we did have weaker german industrial orders for the month come in at negative 2.7% more manufacturing data out of germany as well today. ftse as the italian government is being sworn in, the italian index up .4% we continue to see rally for italian assets in equities and fixed income let's talk about foreign exchange as well today what we're seeing is that euro is pretty much holding firm above 110. at one point we had drifted below that level that was a key

psychological level for the market holding around 110.30. all eyes on the ecb meeting next week a big one as far as that currency is concerned. cable is trading firmer as well today. up at 122.80 .2% firmer full three points higher than where we were a couple of days ago had it looked as though we could have been headed for a no deal brexit on october 31st. but since then the prime minister has intervened and the government defeated two motions. a lot of turmoil there in the background let me take you to u.s. futures. u.s. futures bounced overnight on reports from the china commerce ministry that the two sides will be meeting on october. a cnbc source confirmed the two sides had a call overnight s&p and dow and nasdaq all pointed to open up in the green. s&p up 20 points dow up 200 points. later today, you want to watch out for services pmi and productivity coming out of the u.s. as well don't forget about the data.

stephen engals will depart and take up the same role at danske bank he will take over for christine belter cybg shares plunged after the bank announced it will set aside up to 450 million pounds for payment protection insurance provisions after a much higher than expected volume of inquiries and complaints the fca set an august 29en deadline for people who believe they had been missold the insurance. 20%, 70% in the last year. and the world's biggest investment banks are feeling the heat from a triple threat of factors. sluggish economic growth, persistent low rates and geopolitical tensions has driven revenues down to a 13-year low during the first half of this year equity trading desks puts the most pressure on performance with revenues falling 17% year

on year across all regions not painting a very good picture. and ubs is set to overhaul its embattled investment bank business after a run of bad quarters according to a number of reports, the lender will fuse its equities division with its smaller foreign exchange rates and currency units the restructuring which could be announced as early as this week will also include hundreds of job cuts ubs has declined to comment on the report concerns that investment banks over easing central bank policy are quote understandable according to goldman sarchs cfo stephen scherr he said the trend kick started anxious times for the banking industry as a whole. >> less of a concern for us just given the nature of our business model, meaning the way in which we fund and the floating rate nature of the assets doesn't lead to the kind of concern that

other big commercial banks would have but if you look at major money center banks in the u.s., as you do big money centered banks here in europe, they all have anxiety about the prospect of ever lower rates and the inability to generate assets, sufficient to meet, you know, their cost of capital and their cost of funding. it is understandable that's a big concern. it is a concern shared on both sides of the atlantic. mostly by big money centered banks in both jurisdictions. >> clearly the states, still have leeway to cut rates before you turn to negative territory still, do you think the yield curve meaning that you could get negative yields, longer end and american yield curve. >> well, we have seen the inversion, you know, of the ten year now at its widest since 2006-2007. i think it reflects a sentiment in the market, perhaps more than the actual data does, but the

bond market reflects sentiment there is anxiety about the prospect of a recession. in the u.s., less evident in the data, perhaps more evident in a variety of different markets like germany here in europe. but it is possible, but i think, you know, the bond market is signaling something as it relates to sentiment i suspect many central banks around the world, not least of which is the fed, the ecb, are acting on that sentiment to forestall what may be to come. >> are your american clients not hesitant to invest like when it comes to capital goods currently given that uncertainty which is stemming from the u.s./chin kra tra trade war. >> i would say it is from the trade issue. we could discuss six other political issues around the world. all of which weighs on the psychology that is evident in a board room or on a management team, which is on one hand, their equity prices are

elevated bond financing or financing for expansion is very cheap on a historical basis notwithstanding those two positive factors, uncertainty as to where the market is going is weighing on board rooms and management teams. >> you stay in europe now for this week. it kind of reminds me to the time back at the crisis which the u.s. was so strong, europe had a problem, and we are once again in that weak spot, looking at italy so what do you think is italy a problem or just the side show politically? >> i wouldn't call it the challenges of any given country in europe a side show. but, of course, it is all to be measured against the significance of any given geopolitical issue that is at play economic trends in germany are a big issue. chin kra tra china trade is a big issue what plays out in italy or spain, all of these in themselves are large taken together, they lead to the psychology you're referring to,

i suspect not only weighs on u.s. board rooms and management teams, but equally on the european side as well. >> you talk that germany is an issue. do you think the economic model and germany is sort of at risk to break >> that would be a dramatic conclusion to draw i think that, you know, we're in the early days of a slowdown i think that many of us and many economists can point to particular issues whether it i the automotive sector or chchin trade issue that weigh on the economy, i wouldn't be so dramatic in the characterization. >> head winds for investment banks. let's look at how u.s. treasuries are faring today. the major story out of the meeting to take place in october between china and the u.s., that's given risky assets a boost this morning we're seeing u.s. yields come under pressure sold off five basis points in the ten year trading at 150, two years at 147 and the 30 year around that 2% mark. broke through yesterday.

so around five basis points higher now, speaking with cnbc, former fed chairman alan greenspan said it won't be long before negative rates reach the united states. >> too much throughout the world, it is just a matter of time before it is more in the united states. and i think the issue here is watch the 30-year u.s. treasury yield. that's going to tell you what's happening. >> negative rates. so let's talk about that with lawrence cramer, speaking of negative rates, we have a big ecb meeting next week. they want the bazooka. what is the bazooka? >> i think the expectations have been raised by draghi's speech draghi makes a speech, trial balloon, markets price it, and the governing counsel's hands are tied if you don't follow through, the markets sell off and the fears of the consequences of that.

we had four years of qe. the core information rate hasn't budged at all. inflation is at 1% inflation expectations are dropping again this strategy is not working as far as bringing inflation up what it is working on is helping asset prices to increase and increase and that, of course, is the interest of market participants, so i think what we have now is really a lot of pressure that the ecb put on itself by raising expectations of the market and then having to follow through. >> equally, it is doing what it says on the 10 central banks are getting a lot of backlash for doing what they are supposed to be doing they look at their models, not reaching their target, the models say ease, so they must ease perhaps a discussion should be taking place at a political level at a governmental level rather than a central bank level. they're doing what they're supposed to be doing at this point given the output gap on the downside risk.

>> that's ambiguous. the treaty says the ecb has to target price stability 1% inflation, you can say that's price stability. just below 2%, that's something of the governing counsel decided in 2003. they're talking about changing that again in the last press conference of draghi, mentioned that but really saying we would allow some overshoot there is no point in saying it would allow overshoot if you're not achieving the target you set yourself you need to get first. so what i'm saying is that if you have a strategy that has not delivered over such many years, why should i believe that if you cut another 20 basis points on the deposit rate, if you reinstate qe, it would work. qe was stopped at the end of last year. since then, the ten year bond dropped by 90 basis points the italian dropped 150 basis points the long-term rates are not determined by qe they're determined by something very different

so why is work this time i don't know. >> looking at your notes, two words jumped out to me, helicopter money you think it is time for helicopter money >> if you believe, you need to do something, you might want to try something else, rather than continuing what you've been doing and that didn't -- >> how can that be done at a eurozone level they can't agree on putting a banking union together how are they going to agree on handouts, individual handouts, people at a centralized fiscal level. >> not at the fiscal level the ecb has to do t yit you can't do it at the fiscal accounts that's a no go area. what you can do, you can give individuals money. and just say you get a certain amount of money, from the central bank directly, every month until you hit the targets. you would have several advantages with that first of all, you would have a much more direct transmission mechanism because the consumer has the money in the pocket. if you give the money to the

banks, they're not lending partly because they're afraid, also no demand for credit. there will not be more demand for investment now that you have inventories rising, auto books shrinking. this is not going to do anything if you give people the money straightaway, they spend some of it and you would also, i think, minimize the risk of a backlash in the sense that donald trump would declare this is like currency manipulation if you cut the interest rates and then you have a trade war potentially with the u.s. at your hands, we're talking deflationary and counterproductive. i'm not really propagating they should helicopter money, they want to do something, doing more of the same doesn't seem to be leading to the target, try something else. >> there is a need for a creative delusion. we'll see what la guaargarde brt the table. thank you for joining us.

shares on track for the best day in almost five years this after reporting huge beats on first half operating income which rose 125%. the french planemaker also backed its full year target for higher net sales. safran shares rose also upped the full year profit forecast up 20%. casino shares are trading at the highest in six months on news two czech investors have taken a 4.6% stake in the company. their firm visa equity investment which failed to buy metro in june has backed the embattled ceo strategy privacy concerns remain a troubling issue for many users of smart technology. after apple was forced to apologize for human contractors listening in on recordings of the siri assistant the company announced changes to its privacy policy in the wake

of the revelations and cnbc spoke with the vice president of amazon fire tv and asked him to address similar concerns levied at the e-commerce giant. >> privacy is super critical that's why with our devices, you saw, we always unmuted it, we have a hardware mute, you want to make it stop listening, we're only listening when you say alexa. we created a bunch of new tools for you to review and delete your recordings. it is important, our customers' privacy for us. >> is this top of mind for fire tv or any segment like yours now when you're at a company like amazon >> customer trust is absolutely top of mind in everything we do. if we don't have that, we won't build great experiences they love >> coming up ahead, markets rise as hong kong's chief executive kills a controversial extradition bill, but will it be enough to stop the protests?

welcome back to the show russian president vladimir putin is hosting the leaders of india, japan, malaysia and mongolia at

the eastern economic forum what did the minister have to tell you >> good morning. you spoke about the session, it is under way and may i just add that that's a collective economic might, $8 million on stage now. they're discussing serious commitments to one another in terms of building the economic relations. i as i spoke with the industry and trade minister of russia, this is what he had to say about a specific plans they have about expiration activities in the region it is about the active region now. >> talking about using the north route in arctic. it is about the setting time in logistics, in transportation,

from i would say region to region and this case we can see that annually there is the growth of the transport, transportation. we're expecting in the nearest term years to reach 200 million pounds every year. and to reach it, we need -- icebreakers. so you know we have the largest fleet in the icebreakers not only -- but the nuclear icebreakers. and expect it to build the newest icebreaker, 120 power and will be the hugest in the world. >> so there you have it.

clearly there are a lot of plans up in the north. what is interesting and the dynamic which is that for china, india and japan, they account for 20% of the demand. you add russia to the equation, that's 25% but out of all of the countries, russia is the only major energy supplier or the company with the energy surplus given the least intentions, that's going to be important equation that all of countries in asia would want to develop, asia pacific would want to develop with russia going forward. back to you. >> as you say, russia do have the competitive advantage there because out of the list of countries you mentioned, they are the only energy supplier great to see you on our show hong kong chief executive carrie lam says she hopes a full withdrawal of the extradition bill will help serve the current crisis and help move forward from months of unrest. she formally killed the bill yesterday.

demonstrations continued after her announcement last night. emily tan filed this report from hong kong. >> carrie lam acceded to one of five protesters demands and unveiling a package of actions in an effort to find a way out of the current crisis. first and foremost, a bill is formally withdrawn the government will support the work of the independent police complaint counsel and appoint two new members. begin dialogue this week and invite experts to examine and review deep rooted problems and advise on solutions. speaking to the media this morning, the chief executive in responding to whether this package of actions was too little too late, she said the package of measures was to be taken together providing the basis of dialogue to help break the impasse. don't look to one measure, she says, in isolation, and she goes on to explain the decision to introduce the extradition bill was solely that of the sar government. >> the position is one of the hong kong sar government in the

same way that the bill was introduced, the bill was initiated and introduced and taken forward by the hong kong sar government i'm sure you want to ask about the position of the central people's government, so may i just also supplement that throughout the whole process the central people's government topped the position that they understood why we have to do it, they respected my view, and they supported me all the way >> lam suspended the bill in early june and reiterated that there was never any plan to resume the bill. suspended, calling the bill dead and after 13 weeks finally uses the word protesters were calling for, withdraw, but this doesn't mean the end to the protests on saturday, another stress test of the hong kong airport and blocking of traffic there is expected protesters were also planning to surround government house which is where the chief executive resides, then on sunday, there is talk of a march to the u.s.

consulate. protesters still insist on lam fulfilling the remaining four of five demands which include giving amnesty to those arrested and restarting the political reform process i'm emily tan in hong kong back to you. >> hurricane dorian is moving towards the coastal u.s. and is set to reach north carolina by friday from florida to the carolinas, millions have already fled as another dangerous storm surge is anticipated. jamie grohlia is in st. augustine, florida, with more. >> a desperate rush in the bahamas where thousands are stranded on the islands of abaco and grand bahama, ravaged by days of brutal winds, relentless rain and dangerous storm surge. >> we need help. we need help. >> reporter: the scope of devastation is staggering. the islands decimated. 45% of the homes there and in grand bahama are damaged or destroyed. >> deteriorating really fast mentally, emotionally,

physically there is a lot of people that are missing. >> reporter: but dorian isn't done yet now off the georgia coast taking aim at the carolinas >> it is a little exciting, but not quite florence level of last year hopefully doesn't do the same damage, but, i mean, there is always a chance. >> reporter: millions of people not taking any chances, evacuating the coast for higher ground >> we have no idea how big the surge is going to be and what that is going to mean. and absolutely flooding, we can't do nothing for you at that point. >> reporter: forecasters predicting 15 inches of rain and storm surge that could reach 7 feet jamie grohlia, nbc news. >> that cuts our show today. i'm joumanna bercetche "worldwide exchange" is up next. storage platform. it delivers speed and efficiency, while providing simplicity and flexibility.

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it is 5:00 a.m. in charleston, south carolina 5:00 a.m. here as well here is your top five at 5:00. talking again. top u.s. and chinese officials set to meet next month to try to hammer out a trade deal. that news sending stock futures higher is the optimism really warranted here online messaging company slack disappointing the street first report as a public company. shares are safety. hurricane dorian is back to a category 3 status. it is now threatening parts of north and south carolina the death toll in the bahamas rises. and trimming the