asleep. [theme music] >> welcome to "street signs. i'm julianna tatelbaum >> and i'm willem marx >> mike pence tells cnbc he hopes for a sweeping deal but vows the u.s. will no longer yield to china >> the era of economic surrender is over. for too long one administration after another, republican and

democrat, were willing to accept extraordinary disadvantages to american jobs. billionaire telling the fed, they are, quote, screwing savers and says donald trump is wrong for his attacks. >> the president is doing a lot of wrong i wrote down yesterday, i said consumer confidence is up, retail confidence is strong, consumer net worth is at record levels, economy is growing at trend. >> rbs investors welcome allison rose to become the first female ceo of a major british bank. sterling hits a two-month high after they say a brexit deal is possible he's open to a deal that might replace the irish backstop

good morning the u.s. vice president mike pence told cnbc at the alpha conference that president trump is defending economic interests as they resume trade talks in washington, d.c. today >> when it comes to china, it is a whole different ballgame we run $500 billion trade deficits with china and we estimate we lose almost as many in intellectual property theft almost every year. what the president is doing with china is defending american economy, defending america's interest the era of economic surrender is over for too long, one administration after another, republican and democrat administrations, were willing to accept extraordinary

disadvantages to american workers and american jobs in the name of trade with china those days are over. >> speaking about the prospect of a u.s./china trade deal >> we believe there is a trade war, the rhetoric will come down but there will be no deal that is a meaningful deal, just a feel good deal but just to prop the markets for the election we believe what the u.s. will require, china wouldn't agree with we believe whether 1% or close tore 0%. >> there are questions where china is coming to next year, china has an incentive to say no to anything and push through to the

regime change but they would rather a change of president if they have to follow six months of the president, that is hard for the chinese >> it is hard to know until you see the first cards that the chinese put on the table that will start on friday this week, tomorrow then their senior group will be coming over the first week or two of october you'll know by the time that meeting is finished generally what they are prepared to do and then you should ask that question market heavy rates also said negative rates were a thorny issue and warned of implications of loose policies outside the u.s. >> everything we think of is now globalized together. when we think about china trade,

it is a totally different situation than when you have a lower international function you've got qe that is completely coordinated. you have negative rates and $17 trillion of bonds. over 17% are negative. this is a very difficult world to figure out how to carry trends and still figure out how to make money in a negative world. >> until it stops working, you keep owning it it is this remarkable idea you can buy bonds which is a negative yielding. it is a strange thing and doesn't fit in any textbook i could read in the 10-year bunds and you picked up 50 to 60 basis points. they've dropped down to minus 50

basis points it is amazing how much trade of that you can do. >> it is a fools game, i believe treasuries are the most absurd thing banks have done that will blow up in their face. >> bringing in our first guest asset manager from moody hearing from some of the key financial voices in new york about the trading environment recently at the peek, $17 trillion worth of bonds were carrying a negative yield. the mood on the back have been pretty violent from a fund management perspective, can active managers provide a smooth offering than index funds. >> well, it is -- the asset

management industry is a large industry, about $75 trillion u.s. dollar. it is undergoing changes because of pressure in the industry. you pointed to trends in asset classes. what we see is really competition from product impacting active management. when a market move like that active asset managers tend to believe it will give them an edge they can potentially overperform passive product that remain to be scene lately, active management has been changing because they could not really overperform passive product. >> in terms of the impact of the rise of these passive funds, it has been a huge pressure from the cost perspective it is much more pressure to run

an active one than a passive one. do you think that will be a big driver in the asset industry >> yes, you are right. the growth of passive product has been massive and has put pressure in the industry in parallel, we've seen cost rising and more regulatory oversight and increase investments. we've already seen the industry go through consolidation with large mergers and the u.s. in the u.s. invesco and oppenheimer. mma help asset manager in diversifying in terms of clients and expertise. it is a defensive stance

>> let me understand this. you are saying active managers don't necessarily outperform passive funds. why would anyone stay with them? what tools do they have to hold on to clients? >> definitely passive products have provided fair competition what we've seen is the active changing i don't think they've lost their edge just adapting to where the industry is today. the active is moving towards real asset real estate, infrastructure, those tend to be less liquid they are not esly as applicable. this is where they can generate alpha performance and differentiate from passive

product. >> stay with us for more the federal reserve will inject $75 billion into markets from the new york fed today. this will be the fourth day in a row the central bank will intervene in money markets they saw up to $84 billion this comes the same week the federal reserve cut the federal reserve by 25 basis points the fed has faced a barrage of criticism. at the alpha summit in new york, cnbc asked some of the biggest money managers their thoughts. >> the president is doing a lot of damage with all of the assault on the fed i wrote this down. consumer confidence is up, retail sales is strong, employment is strong, net worth is at record levels, we are

growing at trend, corporate managements are not pessimistic. >> fed's decision yesterday, did they do the right thing? >> yeah, probably. >> would you cut again >> no. rates are so low if you look at what is going on in europe, you barely have any growth negative interest rates. i'm not a philosopher king but i wouldn't give someone my money and then pay them to keep it for them why would you do that? >> the president wants to see more bold action as you see the economy continuing to expand you see the fact that once again, no evidence of inflation and we are virtually at full employment in our country. this is a time our monetary

ought to be bold and support more economic growth >> for more coverage from this year's alpha conference, head on line to cnbc.com >> a bit of a mixed picture emerging in different regions. this has come after two days in a row for positive trade french and italian stock outperforming the dax. the ftse 100 down .4%. the sterling has hit a two-month high after what the market has seen as encouraging comments from the european commission president. he said a brexit deal is possible and he's open to a

solution to replace the irish backstop investors take this as a sign that we will be looking to avert a new deal the big question is will the uk be able to deliver a suitable alternative to that all-important irish backstop the ftse 100 is down we have seen a few stories come through this morning rbs is one therereacting to th appointment of allison rose as the new chief, the first female ceo to head a british bank banks have had a very strong run. on the back of the various bank decisions this week, banks performing very well retail, utilities out performing household goods, chemicals and technologies

a mixed picture this morning coming up, london status as a financial sector after brexit. we'll be discussing the move i know that every single time that i suit up, there is a chance that's the last time. 300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life. learn more at retireyourrisk.org fun fact: 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right - by consolidating your credit card debt into one monthly payment.

you can get your interest rate right - by locking in a fixed low rate today. and you can get your money right. with sofi. check your rate in 2 minutes or less. get a no-fee personal loan up to $100k. it's how we care for our patients- like job. his team at ctca treated his cancer and side effects. so job can stay strong for his family. cancer treatment centers of america. appointments available now. cancer treatment centers of america. (danny) after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you. ♪ go where my baby lives b[ growl ]olle♪s good boy. 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 "street signs. let's get in to some of those individual stories starting with thomas cook. shares have plummeted after banks ordered it to get together an extra amount for funding. the travel firmerli earlier agr. >> elsewhere, rbs has hired alison rose as ceo she takes over as the company faces lingering brexit uncertainty.

outgoing boss leaves to become chief executive of national australia bank investec warns of profit and is spinning off the asset management arm sterling with an optimistic note convinced the uk would leave the eu and that a deal was still possible by october 31 the new documents outline the fresh proposal he reiterated he does not have a special attackment to that thorny irish backstop. >> i had a meeting with boris johnson, the prime minister. this was a rather positive meeting. although the british press was

reporting it in the other way. allowing us and britain to have a relation to the backstop if the results are there, i don't care about this. >> speaking of this, investors are steering clear of uk assets until a deal is struck >> uk assets are clearly undergrown everything will go up. it is just until there is a resolution, nobody will touch it >> let's get back to our guest vice president of asset funds. london, a huge global financial center brexit releases a degree of

uncertainty to its future. how is the asset industry in the uk prepared to react >> i think brexit is a big challenge for the industry but we think those challenges are manageable the reason why, as managers have had three years from the brexit vote they can ensure that they can continue to serve their clients. whether in the eu or the uk. they have put in the right structure. the other reason, the regulators have been regulatory measures in place to ensure the stability of the services >> when you talk about their preparedness, does that entail staying in london or does it entail moving to other european cities like paris, amsterdam, dublin?

>> they have put entity on the continent in order to ensure that they can continue to serve the clients domiciled in the broader eu however, the delegation rules that a low asset manager, so far benefit from the temporary position from regulators >> you've got 40% roughly of eu shares being traded in london. you've got from what i understand, 10% being traded the fca has an important role. what happens if there is a no-deal brexit europeans decide, no, we are not going to allow this anymore. what would they do that's a black box at the

moment >> nobody wants a disrupt. so they work together to put regulatory commission whether there is a deal or no deal beyond that, they would start working again in order to -- >> have they been transparent about this and communicating this my understanding is that they are not. >> i think they have in place contingency planning between their preparation and what the regulators have put in place, they are okay another challenge, brexit would bring volatility in the market it is hard to know the impact. but they have prepared by adding liquidity. >> willem brings up an interesting point about the exchanges. we are in the midst of covering

a live situation between the london stock exchange and the hong kong exchange and the bid they've put out. part of their pitch from the hong kong side is that they see london as a key financial center post brexit and this offer is a vote of confidence in london remaining so post brexit i'm curious if you think it is realistic that we see enhanced ties between asia, china and london in this post brexit world. >> i think london is a major financial structure. it has infrastructure and expertise. it is not going to disappear overnight. >> i want to come back to you and talk about technology. just a personal anecdote here. i've got a fund for god son.

until recently, i've had to send by paper check in order to fund that they've switched over and i can now top off on line with a debt card for years, that was so antiquated has that now finally done the way of the dodo. that lack of technology. >> the industry is going through transformation and technology is one of these clearly technology represents an increasing investment portion of the cost of asset manager because they want to protect their margin they want to remain competitive in their future. there are three ways it is for product perception, distribution and client services

and also developing advisors for example and to enhance their operation being more efficient >> because there are dozens of people handling bits of paper that doesn't need to be done anymore. >> it is true. it is a risk system. they could cover all their activities and provide a better, more ee fish yebt result and probably be more ee fifficient wise as well >> i want to switch gears and come back to something you said earlier about mfed when this came into effect, as asset management was posed to

come into a big change in particular, research. i'm curious now, we are nearly two years down the line with this implementation. how have asset managers reacted, how have they fared with these new regulations? >> if we focus on research, it is true, they have to pay for research they could have passed on the research but most of the industry has opted to absorb the cost they are now paying. this is one of the reason why costs are rising we see competitive pressure. and the transformation >> a lot of change and excitement in the asset management world thank you for weighing in. vice president and fund asset manager moody's.

coming up, the german government tries to finalize a sweeping environmental package >> an idea of an elizabeth warren presidency frightening investors. we'll have more from the alpha conference later on in the show. at cdw, we get you wanna be ready for whatever's next. that's why we built a portal into the future. good luck brad! and brad's in the future. uh, with vmware cloud foundation, cdw can deploy a flexible hybrid cloud solution that can scale with your needs. today and in the future, so you don't need this. wow. that sounds great. so, what happens? jerry has been stealing our lunches! no! for hybrid cloud solutions, you need vmware cloud foundation and it orchestration by cdw. people who get it. doprevagen is the number oneild mempharmacist-recommendeding?

memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

i was on the fence about changing from a manual to an electric toothbrush. but my hygienist said going electric could lead to way cleaner teeth. she said, get the one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's gentle rounded brush head removes more plaque along the gum line. for cleaner teeth and healthier gums. and unlike sonicare, oral-b is the first electric toothbrush brand accepted by the ada for its effectiveness and safety. what an amazing clean! i'll only use an oral-b! oral-b. brush like a pro.

. >> welcome back to "street signs. i'm willem marx. >> i'm julianna tatelbaum. >> mike pence says the u.s. will no longer yield to china but hopes for a sweeping deal. >> the era of economic surrender is over. for too long, one administration or another, republican and democrat, were willing to accept extraordinary disadvantages to american workers and american jobs in the name of trade with

china. billionaire investor tells cnbc the fed is, quote, screwing savers and says donald trump is wrong to attack the central bank >> the president is doing a lot of damage with all of this assault of the fed i wrote down yesterday when the fed cut rates, i said consumer confidence is up, retail sales are strong, employment is strong, consumer network is at record levels. economy is growing at trend. >> aing negative rates delivers a contentious issue and warns about ultraloose policy. >> it is a strange thing it doesn't fit in any textbook i ever read. >> treasuries trading negative is the most absurd thing treasury has ever done >> sterling hits a two-month high after juncker says a brexit

deal is possible and he's open to a something that might replace the irish back stock we've made it to the final trading day of the week. here in europe, a bit of a mixed picture emerging when you look across the regions the italian index, the only one trading positive up 0.61% now french, german and british stocks in negative ftse 100 pairing back some negative losses down just about 0.15%. this drop has come alongside the rise in the pound as you saw in the headlines. sterling has hit a two-month high versus the dollar on what

the market has received as encouraging comments from juncker suggesting he's open to replacing that backstop there. stocks down on the back of the strength of sterling you can see the move in the pound 0.15%. the dollar is trading slightly weaker against the swiss frank just under the one mark. and a huge week for central banks across the globe interesting to see that market reaction has been relatively contained. in particular on wall street taking a look at u.s. industries essentially ending the day flat. overall, the move on the back of

that fed decision very contained. a look at the marginally flat start. it seems the narrative hasn't changed much around the world, taking to the streets today as part of a global design to force leaders to adopt stricter environmental measures the march has come ahead of this weekend's un climate summit. and amazon says it will become cashon neutral amazon intends for new vans to be on the road by 2024 and will vest $100 million into forest and wet lands restoration

projects holding marathon talks as they hold out to the latest details of climate packages. those will include new green energy investments and electric car subsidies. merkel has to convince the hubs that the price tag will present money well spent even a modest cashon tax rise will cost the industrial heavy weights hundreds of millions of euros. they are not doing so well already. saying that several companies will be impacted by higher co 2 prices joining us in berlin anita, can you give us more about what to expect >> reporter: most interesting will be whether we get a prize

for carbon going forward and what that might mean for certain industries they offer some remedy for that as well. we know the negotiations are going on and that press conference in the climate cabinet meeting for 11:00 was now pushed to 1:00 cet locat locatal -- local time. thank you for joining us what are the sticking points currently? >> i'm glad i heard the press conference will take place at 1:00, so there will be a press conference that's why i think they came closer together. we had some sticking points. one was the system for pricing

carbon dioxide we had huge discussion during the last weeks and month the systems were discussed and what we could make a cashrbon dioxide tax. a second was to create a trading system but not for the building sector so these different systems are discussed. i hope they come to a conclusion >> what do you think that will be in terms of how costly that will be? we have research saying like german corporate an enormous amount of money. >> i do not know the exact amount they discount the measures and have to calculate the bill on the other hand. i think it will be a huge

success story even for the industry we have products for energy efficiency and renewable industry we have planners, architects, craftsmen. >> it seems there is a lot of drama in those sessions. is that also sort of a break or break thing for the grand coalition. they have to show that they can work together. >> it is a very important day today. i think it nearly always comes to a drama if you discuss the concrete points. what they do today is discuss the concrete points. i am very hopeful there will be a set couple of measures in the afternoon today. >> do we think today is an historic day in changes of that

germany is getting greener and we have decisive decisions going forward how germany might look like in the future >> i hope so it might be. even if we have decisions today, there is still a lot of work before us. we have to optimize the subsidies. there is still a lot of work to do the next weeks and months will show whether we can implement the measures today >> it sounds very compelling do you think that whole climate package could be a fiscal stimulus package >> it is a kind of stimulus package but we have to keep in mind that it is not only fiscal measures but regulatory measures

within this package. if we decide to take this away and give them what we call in germany. we need some money for that. on the other hand, a lot of professional people will earn a lot of money with this that's why i think it is a success story. >> do you think briefly a lot of pressure needs to be observed as they come up with the solutions here so many things like the lobby group involved >> it is very important today to come to a decision we've had a lot of debates in the last weeks and months. there is a lot of pressure for the people deciding today. we have a few measures we are discussing for years i think it is enough discussed we have to decide and start working. >> thank you so much

enjoy the discussions and the outcome of today >> i'm sending is it back to you. it all depends on what the guys decide today and whether we get the big push through in terms of climate package in germany as we were saying, it is just the first step we can expect to have a clear framework as of next week. lawmakers will have to start discussing and the legal side of things will have to come to a conclusion to have everything in-law now back to you. >> live there in the german capitol. investors have been looking at the possibilities of front runners. several have expressed concern about elizabeth warren's recent surge in the polls

here is what a couple of investors told us this week. >> there is unquestionably a shift to the left in this country, they won't open the stock market if elizabeth warren is president i'm committed to capitalism with all its flaws. the main vice of capitalism is the uneven distribution. the democratic party seems to be leaning towards leftist policy >> i don't think the stock market is discounting a win by the left in 2020 you look at things like for profit education and for profit prison stocks.

the for profits were impacted negatively bio alabamby -- obam. those stocks are beginning to roll over. >> i suppose criticism is no surprise given warren's history being anti-wall street it has been a part of her stance for years. on the table now, she's proposed a wealth tax on wealth above $50 million. >> a bit of history. we criticized tarp repeatedly as a handout to wall street she helped launch the bureau that took the side of small retailer against the larger financial institutions she is no friend of wall street. it is not a surprise they are not being friendly in return

ahead of this election >> we've heard unfriendly commentary from biden's allies in terms of warren electability is an issue it has been biden's main selling point on the democratic ticket their argument has been questioning her electability >> not just biden. other democrats have been taking pot shots at her she's a relatively easy target she's taking positions outside of the main streen we are still very early on that is worth remembering as well the saudi led coalition has announced a fresh coalition in yemen using four sites with remote control boats and using a

cease-fire and agreement of troop redeployment they claimed responsibility on last week's attacks in saudi arabia u.s. vice president mike pence said that attack represented an act of war >> the attack on the saudi arabian oil facility was the largest attack on oil infrastructure in history. it was an act of war we do know from the saudis and initial examination that the weapons were iranian weapons we are arranging an international investigation to determine where those weapons were fired from. >> coming up, apple fans are out in force we are live from the company's

flagship store in london next. ♪ did you know you can save money by using dish soap to clean grease on more than dishes? try dawn ultra. dawn is for more than just dishes. with 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. try dawn ultra. they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the amazing services of the post office only cheaper get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again!

the rugby world cup kicks off today in tokyo japan will play russia in the opening game defending champions new zealand are looking to make it three wins in a row south africa and ireland are among the favorites. the new zealand all blacks will lock horns with south africa england will take on tonga and ireland will face off scotland >> it is hard to ignore it while you are in london. >> the challenge is going to be the time difference. air bnb has announced it is looking at an ipo.

the firm is worth $31 billion after the most recent valuation and revealed the second quarter revenue topped a billion dollars th this week. facebook founder mark zuckerberg visited the president in the white house he held talks with some of his harshest critics in the u.s. senate he's going to meet with representatives and house democrats as well. following a raft of ipos in the sector, some went well some did not discussing the benefits when large private tech firms do decide to go public. >> looking at where assets are today. we used to have a much bigger disconnect between public and private markets.

you see much greater par di between public and private markets. >> we've got 6 of our 10 largest positions. 30% of those or more are enterprise software. those businesses scale like noeg else one of the few places where putting more money to work often makes better deals >> we are seeing valuations higher than they've ever been. the average growth rate of companies in that sector and those that have become public. it is not uncommon for them to grow 50 to 60 to 70% year over year those are sustaining for a long

time we look at it and say, yeah, the markets should be higher maybe they are overdone a little bit. we've seen value growth. it is okay we are finding interesting ideas. >> certainly, we work as a tech oriented company with not a lot of cash flow and worth there have been a lot of companies that look like that. we were a unique situation we were finding for an older economy and cash flow, we are finding things the other way >> jay clayton also gave his view of the debate >> there are a lot of people operating in private markets very good at understanding how companies perform. are the rules not as rigorous as

public markets of course not. we know lots of people who have operated in private markets for decades and delivered outside returns and put management teams through the same rigor of the public markets >> it is a big day for apple the company has opened the door to the flagship store on regent street apple iphone 11 debuts a day after the latest huawei phone. what have you heard there? >> reporter: we've seen a steady line of customers come in since the doors opened about 50 people were waiting some spent the night to get in at 9:00 a.m. most are telling me they are

excited about the 11 pro or the pro max. those have three cameras they have faster processors, more durable screens they know they are not 5g phones that has been what we have heard from some saying are apple going to be behind competitors they say they are not too worried, they plan to upgrade every year another big hit is the watch the watch series 5 seems to be a big hit especially going into the holiday quarter. iphones still make up half of apple's overall sales. >> huawei phones doesn't include

google licensed apps because of the u.s. government blocking >> it is jam packed. it actually has a quad camera. the issue here is that huawei was not able to license the latest version of android because of restrictions from the u.s. black list. the new phone does not come preinstalled with google apps like email, maps, youtube. you can download apps which would include things like facebook, the company has confirmed. we'll have to see how important that android eco system. perhaps it could boost samsung sales and apple sales in europe which has been important market.

a lot playing out. the excitement over the general features we are keeping an eye on how much people will willing to pay for those here >> thank you for being on the ground let's take a look at u.s. futures now and see where we stand to open on the final trading day of the week. we are looking at a marginally positive start that comes after a big week for central banks. the headliner there, the fed on wednesday. that's it for today's show i'm julianna tatelbaum >> and i'm willem marx "worldwide exchange" is coming up in a few minutes time

it is 5:00 here at cnbc. it is jolly old trump. expected to make a list. could it be a early holiday gift to the markets >> could today be the day? striking markets >> apple a day, next gen iphones are hitting th