all the time. welcome to "street signs." these are your headlines the dax drives higher and the s&p tops the better than expected second quarter numbers. the ceo of see mens shown he's optimistic for the coming quarters but policy makers must be pure about the next stimulus steps. >> as i said, we need to put the potato in the fork

what are we doing what, when, and how will it turn out to secure jobs and economic recoveries engine trouble shares in royals royce fall toward the bottom of the european market as the aerospace engineer sees the credit rating cut. and the european commission reportedly strikes a deal with roche to supply covid-19 treatments to eu member states but the swiss drug maker telling us it's committed to meeting the needs of patients worldwide. and the stock markets here in europe have been trading for an hour so we'll we'll dive into what we're witnessing the market has moving slightly positive modest gains here. not exactly keeping pace with wall street where we've seen

gains on the three major indexes but markets have been softer especially on the core markets there's been a lot of german stocks, in particular. it's been slightly disappointing week in terms of pace of acceleration for stocks here as the heat map is telling you, there's fairly evenly split trade between some of the gainers and losers on the market you can see it at a sector level where it was playing out a quick look at the boards for the european markets you can see how the individual ones are faring. a little bit cautious today. we had the stimulus yesterday but a lot of had been preannounced and market, i think, earlier reacting to it. home builders got a little bit of an early traction but not enough to notch the market into the green. the french market .19 higher but not as firm as the start of the session. we can see an outperformance with german stocks rallying 1.2%.

s.a.p. doing heavy lifting but decent day for switzerland a .03 on the spanish market and not holding on to the early gains. we'll get into the s.a.p. trade then the bounce is strong it was again from the onset premarket. we saw a pop of 4% when we opened the trade we bounced more than 6% and you can see the gains continue 7.5%. s.a.p. announced the business recovery more than expected in the second quarter and the german software company confirmed. we've been talking to the company about the transformation of the business toward these cloud and subscription revenues. it set the company to be defensive in the covid crisis. >> caller: yeah. completely you're completely right. we've been hesitant s.a.p. and we're saying literally -- came

to a stand still they are now overly optimistic, it seems, that they see a strong recovery taking place when it comes to the revenues asia-pacific the cloud business is very strong the cloud revenue -- [ inaudible by 19% and -- on the cloud backlog is also up 20%, which means they already have committed business in that area for the next 12 months, which is equivalent to a rise of 20%. overall, the operating margin is a positive for investors clearly s.a.p. is very profitable with an operating margin of 28.9% up by 1.6% it sends a clear message that management is doing a good job

they reacted swiftly into the crisis by cutting costs and not hiring as much people as previously anticipated also, while not traveling as much that has helped to improve even further. so i guess if you compare s.a.p. to their competitors, like oracle, they are in a better place than oracle. that's most likely investors face into these shares which is pushing them higher by 6.7% today. >> thank you european technology stocks also gaining. tick a look at the s.a.p. 7.3% the exception is eriksson today. they're all bouncing nicely in

the early part of the session. s.a.p. has cut rolls-royce's crediting rating they said the company can be profitable and generate cash in the y-body sector but needs to resize the business. we'll take you to live pictures holding an extraordinary general meeting today. we are getting a couple of flashes across the wires from the cfo of siemens saying they expect evaluation from siemens we have clearly seen it before with the likes of other businesses that was spun off

from siemens the details we're hearing here in the virtual format that they'll spin off 55% s siemens energy to start the ipo is slated for the 28th of september of 2020 who knows what type of market we'll see there. you've been watching this closely. if you want to weigh in with some comment >> yeah. i do, karen. and this is a story we've seen play out across corporate germany in recent years. it's a story of a major industrial conglomerate trying to slim down the comments you said from the cfo capture what they're trying to do. trying to unlock value that is perhaps been hidden in the business because it's a conglomerate it traded at a conglomerate discount because of this and they're trying to shed the mystique attached to being a

conglomerate you've seen a similar action from another major german conglomerate we have to think about the role the activists the investors have played in triggering the moves from german corporate's. this is seimons trying to be proactive and take measures to focus more on profitable businesses and unlock value in doing so. >> looking at a comment from siemens about its focus and energy has been a tough area of the market to be in around covid-19 the company saying it will concentrate on digital industries including digital is the future clearly pivoting toward the growth areas was future. they said the company must restructure to focus on other areas of the business. >> you just can't afford, you know, to continue as we used to work before covid-19

the world needs to learn something from that. this is about environmental care this is about how we -- let's say, organize our value chains this is how we interact together in the global space. interestingly enough covid-19 has actually turned out that the countries becoming, you know, nationalistic then it came to face masks and medicine and what have you it is opening up more so they will have a -- about the learnings that other countries have with covid-19 thing i think this is a learning now that we have to say, hey, if you connect the data and information, you would be much better off to fight pandemics like covid-19. we need to find how we interact

together politics is not my field of expertise but i became better as we have done in the last six or three months around the world. i have to say i'm proud about the german government how they've been able to work this out in both ways first and foremost, protecting the safety and the health of our people secondly, also, how they have been able, you know, to sort the social issues in terms of short term work, not just fire everybody and let them go and be on their own but said, hey, how can we, you know, make sure that we have short term work at the companies and the government work together to get something done that, i think, is going to be one major topics where germany could turn out to be stronger after the crisis, as they used to go into the crisis. i'm very hopeful

we need to be more interactive the next pandemic is just around the corner for sure. >> very interesting you should mention the short term working we learn from what the germans did and we have britain pretty much mimicking, as well. i want to pick up on a comment you said we're not planning to cut any jobs due to covid-19 crisis are you planning to cut jobs more secondary which is the economic crisis? >> well, what i basically said, you know, if you only have a short term issue yutdlyzation, we're not going to let people go we have nobody to help us serve our customer you know, if the structure changes, for example, going from

fossil energy to renewable energy, you know, it won't come back we need to be mindful about structure changes and must not confuse taking care of structure changes with short term issues by having people work shorter term or the company help them come along we need to be mindful about separating structure topics, which need to be in this no matter what because they'll affect the future. we need the qualification and the experts when the economy picks up again we need to deliver. >> we'll get to the managing partner -- bruno a lot of air time this morning for the german corporate's i want to start with s.a.p. in the tech space you've been looking at some of the big names where investors have been clearly parking some of their money what do you make of how far we've come on the gains? if you look at s.a.p., it's been

a decent performer do you think there's more in the trade? >> good morning. i believe that the tech names clearly has gone a long way. very fast. that needs to be confirmed now in the outlook maybe not just in the most important earnings season, in the last decade, i would say, but maybe in the forecast. clearly relatively speaking sector rotation wise, technology and pharmaceuticals are the most appealing sectors to be investing in that basic drives investors into the two sectors. unfortunately, they're not the biggest employers. they might be market cap one of the biggest sectors out there with, but they're only half of what their market cap is to the employment. economically it will have a impact on the other industries but clearly technology is really vacuuming all the money being

invested and as such might have room to go. >> having looked at the last of the tech numbers, i mean, you did see a slight improvement in some of the forward looking and bookings numbers but the potential is on the cost side do you think investors would be nervous given we seeing a lot of different companies realizing that the digital acceleration is happening because of covid-19. i'm struggling to see how the tech companies will be >>well there might be some hardware companies that are reliable on companies. clearly companies will be a bit more reluctant in putting up their budgets and going ahead before they know the full impact interestingly enough, about half of the companies have omitted their earnings forecast for the second quarter, which means they are not having the visibility. i cannot imagine they wouldn't wait for the visibility to come

back before they would invest into hardware, into new servers, into, you know, the gij talzation wave before they have any visibility on that yes, there will be tech companies that are suffering it's not all, you know, the good news is not for every company. >> i was wondering the whether we would get more updates on cost cutting this time around from some of the corporate's not necessarily technology but other areas of the market that were not directly hit by covid-19 that may also just are seeing weaker demand now because of the economic fallout. do you think that's possible or it will be delayed a bit as many ceos wait it out for the longer term picture >> well, i believe what everyone seems to be hoping on, that's the main driver at this stage in the market is the government stimulus if the government can bridge the lost revenue or even the income for their workers, temporarily

bridge that gap until everything is back normal everyone knows it's a medical issue that will eventually be solved if they can gap that, i think the cost cutting will be reduced to a minimum until we get out of that valley and until there is a vaccine found and medical issue is solved. until then, i think everyone will be cautious and only the direct hit sectors will immediately take action in cost cutting and laying off people. that could, in the long-term, create scars for the economy >> how much stimulus should we bank on? we saw in the uk they're starting to wind down the initial stimulus like the furlough schemes getting people back into the jobs with the bonuses. also, just tweaking around to try to spur a little bit of consumption or property market, also, for consumers that are going back into bars and restaurants. that's very different than the first wave i wonder how market moving is at

this point >>well, i think that's something that the government is slowly but surely starting to realize which if there is a second wave, which all specialists say, the approach will be different and had have to be different many businesses that survived the first wave might not survive the second one on top, i think the governments has been affected that much. to do the same thing in a second wave is not going to happen. they will be smarter in testing and tracing necessary in order to go there. and that's probably how the market is going to look at it, as well. which companies come out of the first wave vulnerable and could not survive the second one i think that's the analysis that every investor needs to make at this stage. >> let's talk about geographies to invest in the united states has, obviously, been a compelling trade. particularly around the technology sector and the nasdaq look across to europe, they've been trying to keep pace and the

german stock market. this week we've seen a little bit of divergence as u.s. stocks continue to move higher. whereas european stocks have been more cautious is that the beginning of a trade? >> i think it's not. one thing we should not under estimate is the medical issue. europe is clearly leading that china was the first and europe and u.s. and the emerging markets. i think the recovery will be seen as such what, obviously, helps the u.s. is the overweight of technology compared to europe more affected sectors in europe, spain having 16% of their gdp out of tourism that's clearly hurting europe but there will be rotation once the medical issue becomes a real issue and more of an issue as it is today in the u.s. and that, you know, the consumer goes back in too high affecting the sales in u.s i think because of that, europe can pick up. it will be very much related to

the medical issue. >> bruno, let me pull out one of the investing ideas. the counter balance has been with treasuries as a built in hitch. what are treasuries offering at this point there's a question how much the yields can go at this point. it doesn't feel as though there's much appetite to go negative with interest rates. >> i believe so, yes i think they have seen the interest rates do no necessarily have a long-term positive impact on the economy especially that it's not flowing through the banks to the companies. but i think the safe havens have become very, very limited as to a fixed income even the high quality bonds, corporate bonds, at this stage, are looking at lagging numbers the number of delinquencies has not picked up yet but we know that eventually is going to

happen it's just not clear where and when i think most investors into hiding will go into short term treasury to be sure that the systemic potential risk is not hitting them in the interim. >> bruno, thank you very much. a reminder, we are on twitter @streetsigns coming up on the show, euro group members are set to vote on a new president as the block looks to agree on a major new aid package. we'll discuss that after the break. when you say what you're in the mood for,

the xfinity voiceremote will find exactly that. happy stuff. if the groups happy, i'm happy. you can even say a famous movie quote and it will know the right movie. circle of trust, greg. relax the needles are jumping. you can learn something new any time. education. and if you're not sure what you're looking for, say... surprise me. just ask "what can i say?" to find more of what you love with the xfinity voice remote.

welcome back to "street signs. we continue to follow the action on the ground at siemens today as they hold an egm to encourage shareholders to have an energy spin-off you can see the ceo speaking to shareholders virtually today clearly it would have taken

place in person with many on the ground but events around covid-19 changed the direction for the meeting today. but you've seen history behind the maneuvers at siemens and the spin-off with the health business that is is a big positive for the direction of the company to try to focus its attention on future sectors where itments to be, mainly around digital it will be ipoed in september, according to this plan so we will continue to dive into this we have translation. >> establish siemens with the opportunities and challenges with industrial digitalzations we have orders to fill the national prerequisites and parts are different. siemens energy has to point the

way to the economically sustainable energy transitions the new siemens is heading to one of the largest transformations in the industrial history the fourth industrial revolution or some call it the internet of things to succeed in this task, we have given digital industries an excellent position in the last few years, in other words, we're starting from the -- position. no less important for progress in the global world is expanding a sustainable and efficient infrastructure he hereto siemens aren't yet leaders in all areas, and we still need to expand the share of software in our business significantly. the success factors are similar

across all siemens companies a focus on market trends and customers, innovations, speed will be the decisive developments it is that we run to with our vision 2020 strategy and the 2020 plus. we've prepared siemens' businesses for this. in a time of unprecedented speed, power, and greater change, the ability to anticipate change, adapt quickly, and improve constantly is more important than ever before if you fail at these tasks, you have no future but if you succeed, then you can shape the future companies with a stronger focus have an advantage over traditional conglomerates.

conglomerates can do a lot of things well, but there are very few things they can do really very well. these things are important for the future the greatest risk is the constraints -- the socially protective steps socialization of strong businesses this is is a cardinal error in the allocation of resources which threatens the industry icons on both sides. the independence of health care business in siemens health in the managed business is a prime example of how focus can increase value since the initial public offering in march of 2018, a year and a half ago, see men's share price increased by 50% that corresponds to an increase in the value of around 15

billion euros. at siemens energy -- >> and siemens spelling out the case for the spin-off of the energy business. virtually to shareholders today at the egm let's push on to euro group. members will meet to elect a new president. it comes as a crucial time for the block as it works toward economic recovery and negotiates a historic 750 billion euro aid fun. they have nominated themselves for the role let's get out to sylvia. we have spoken to a couple of ministers recently what are we likely to see as the outcome? i know there's a lot of politics at play behind the scenes? absolutely a lot of politics behind the scenes, for sure this is why, at the moment, the vote seems split between ireland spain and question see the

comprised winner being the finance minister of luxembourg ahead of this very important vote, i just want to remind our viewers that, actually, earlier this week we heard from european commission slashing its 2020 and 2021 growth forecasts and so at the moment, the expectations from the european commission is that the eurozone will contract 8.7% in 2020 from an earlier estimate in may of 7.7%. just to put this number into context earlier in june, the imf had forecast the contraction of 10.2% for the euro area this year this is the context and the challenge that the next president of the euro group will face and any disregard, as well, we can't forget the discussions that are taking place over further fiscal stimulus. you remember the european commission suggested that the member states should actually

raise 750 billion euros in public markets to support the various economies. the heads of state will be gathering next week in brussels to discuss this proposal but isn't clear at this stage if they'll reach an agreement by next week. and so let's wait and see which direction the eurozone will take later today and if, indeed, what this person will have to say when it comes to fiscal st stimulus, and the economic recovery the eurozone should take going forward. >> thank you coming up on this show, the u.s. records its biggest one-day increase in coronavirus cases. more about the pandemic in the country after the break.

welcome to "street signs" if you' the dax strives higher on better than expected second quarter numbers. helping tech stocks rally

alongside fresh highs for the nasdaq siemens looks to spin off the energy unit as part of the transformation plan. the ceo says he's optimistic for the coming quarters but said policy makers must be clear about the next stimulus steps. >> we need to put the poe pay tow -- potato in the fork we need to be specific about what we're doing how and what to turn out jobs and economic recoveries and shares in rolls royce fall toward the bottom of the market as they see the credit rating cut to junk and european commission reportedly strikes a deal with roche and merc telling cnbc it's committed to needing the needs of patients

worldwide. let's take you to the market action the ftse trading down by .20 so drifting a little bit further from the flat line the dax 1.1% pop the french market just nudging slightly into positive territory. it was up about that 5,000 point mark as we started out the trading day. the extra minutes we've heard have not been kind to the french market italian stocks falling in negati negative territory there was a lot of risk appetite that we noted this morning and there's a bit attached to the euro u.s. dollar is peeling back versus the yen we've moved up from the 125 level we were witnessing yesterday. so 126.36.

that's .20 morning session u.s. dollars also slightly weaker to the swiss. so it's pretty much a tale of winding back from the u.s. dollar exposures let's get to the oil trade this is how it looks this morning. brent is down by about .10 we're at 43.22 wti tracking above the $40 market the gains this morning have clearly been wiped away. it's been around the covid spike cases. let's get to u.s. futures after a decent session yesterday. particularly for the nasdaq. again out in front the sixth positive session it was up 1.4%. you can see this morning we're chasing more gains for that tech-heavy index the s&p popping positive it was negative on the las check. that market was falling yesterday to the tune of .08 alstom has taken another

step to close the planned acquisition. there's been disappointment on the acquisition front for alstom in the recent years. >> we had the report from reuters yesterday saying the trades were ready to make concessions in order to get the green light from the european commission for that. they confirmed this morning giving details on some of the concessions. one area there was some concern about that was identified early on was a regional trade. so that's two areas where they've announced this morning so divestment -- were developed trade section and so that would mean the closing of that planned in the region in france and we make a divestment for the talent three platform and in production festivity in germany so that's a two areas that, again, have been identified of a potential cross over

giving almost a -- in that segment. so here concessions announcements in two groups to be presented they announced some concessions of the transfer of the contribution to high-speed train also providing access to some interfaces and products signaling on board cultural management systems there's four concessions announced this morning that will be presented to the european commission now the commission have to examine the session and decide whether it's enough to give the green light or whether they want to launch an in-depth investigation into which would last about four weeks. the day for the commission to give their opinion is july 16th. the other two groups said they're on track and aiming for the completion of the merger in the first half of 2021 and they also said they are stuck -- starting talks with unions in the two festivities that are about to be shut in

order to get the green light from the concession. in any case, stock shares this morning in the red down about 0.2% on the french market. >> i appreciate the details. thank you very much. let's push on to comments just crossing from germany this morning. this is from the vdma engineering association. they are reporting the majority of engineering firms are optimistic that they can achieve nominal increase in sales, again, in 2021 so they're talking about the outlook for next year. and vdma said more than half of engineering firms expect revenues to decline by around 10 to 30% this year so that is quite the wide range we're talking about 10 to 30%. the organization also saying only around 10% of engineering firms are still seeing negative impacts from supply chain disruptions. that has been an improvement from the starting position as you think about all the lockdowns now in 10% of being impacted on the supply chain

side let's move on to the pharmaceutical industry. there's been significant moves in the market today. they have reportedly struck a deal with roche to secure potential coronavirus drugs. both have been tested as potential therapies. in a statement roche confirmed it was an ongoing talks with the block to supply the arthritis medication let's get out to juliana on this we had news out yesterday that the americans were putting more money on the table for a vaccine. today we're talking about treatments as europe comes knocking with more money this is crucial as we talk about development of the drugs, manufacturing, and distribution. >> well, i think what is interesting about this news is twofold. the first is that we've gone to the european commission reportedly moving ahead to secure two potential treatments for covid-19 neither roche's nor merck's

treatments for approved for use in covid-19 yesterday -- yet they're being tested the second interesting thing to note, we're seeing this decision come after the u.s. just last week confirmed they have secured all gilead's supply for the month of july and 90% of their set production for august and september. so the u.s. has moved to secure access for the only approved treatment so far for covid-19. so we have europe making moves itself to secure potential treatments for european member states so we've got governments around the world really scurrying to try to secure what could be a treatment for the disease. just in the last moments, resulters reporting that europe has agreed with gilead to secure more of rem does veer in the autumn we're seeing europe jump on the bank wagon, as well. nations are trying to get many

treatments to bridge the gap between now and when that all important vaccine becomes available. >> i wournder what comes first better treatment or a vaccine. some of the assumptions around vac vaccines it feels everybody is optimistic something will be forth coming this year. >> that absolutely you read through analyst notes and i think the prevailing assumption we'll have an approved vaccine in late 2020 or early 2021 but as we were discussing yesterday on the show, even once the vaccine becomes available, that's not the end of the pandemic we then have to look at supplying the vaccine and distributing it across the world. and like we were talking about on the treatment side, we've seen governments also moving ahead to try to secure the vaccines before we know which will prove effective the word from the medical

community and the leaders at the top of the health care companies is that we may see multiple vaccines approved and this would be really, really important to see given the supply constraints we're likely to see no matter the vaccine that does prove effective. >> it's funny and ironic in the sense that a lot of governments never wanted to talk about high theatricals and we're having money committed to case around hypotheticals. thank you very much. we'll push into what coronavirus is doing globally. the virus has infected more than 12 million people around the world. nearly 548,000 deaths have been linked to covid-19 so far. the united states accounting for more than a quarter of infections and deaths worldwide. the u.s. has recorded its biggest one-day jump since the pandemic hit reporting more than 62,000 cases. texas alone accounted for 10,000 new infections as the southern and western parts of the country continue to be acutely affected by the surge donald trump ramped up pressure on public schools to fully

reopen the u.s. president tweeted yesterday he may withhold federal funding for schools that do not resume in-person classes this fall. adding he disagrees for the centers for disease control and prevention guidelines. new york city said students will be allowed into public schools two or three days a week harvard university and the massachusetts institute of technology are suing the trump administration over the proposal to require international students to take classes in person this fall in order to stay in the country. the two universities filed a lawsuit in federal court asking for a temporary restraining order against the policy, which was announced on monday. austin federal reserve president and richmond fed presidents are the latest officials to raise concerns over the u.s. economic recovery amid the continued surge of the pandemic market warned that unemployment benefits due to expire at the end of the month new business orders may not be high enough to maintain

operations without them. the federal reserve president told cnbc the employment picture would become brighter by the end of the year. >> i think we're tracking very well right now unemployment being at 4.7%. some would say because of misreporting it was higher than that now it's down at 11.1% so i think i would say to my fellow economists and the forecasting community, you know, you should take that on board how volatile the number is 360 basis points down in two months, it seems to me like by the end of the year you can get down to, you know, certainly in single digits and probably into maybe even below 8%. maybe 7% by the end of the year. >> white house economic advisor larry kudlow has told cnbc he believes the economy is on its way to a v-shaped recovery adding that the government's paycheck protection program has

succeeded in its objectives and rejected accusations that it has gone to underserving recipients. >> the ppp program was phenomenally good. effe affected about 85% of those working in small businesses. as you know, to qualify, you need 500 or less workers some of these -- let's say well-to-do operations qualified. they had to certify which is spend 75% on payroll i guess it's down to 60% but overall, it's been a phenomenal success and probably saved 50-51 million according to many estimates u.s. colleagues will be speaking to steven mnuchin starting at 1600 cet so tune into that conversation as we try glean any information we can about further stimulus measures we want to take you to boohoo the stock is down 5.2% year to

date so far. we have seen fairly decent moves in the stock jumped 27% in following a media report about working conditions and a supply factory here in the uk there are concerns about the spike in covid cases, which prompted a lot of questions about the working practices that are taking place in some facilities it's not just been at the closing sector but one particular case here, we're talking about it in germany, as well, when it came to slaughter houses but the stock today responding after seeing a reversal in the stock price. so you can see the extended the gains. not holding on to all the 27% but those working conditions but no doubt a big one for the company, particularly as we talk about supply chains and sustainability these days. we're going to just squeeze in a quick break here. coming up on the show, the u.s. administration plans to block china's access to private data of millions of americans we'll have details after the break.

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the xfinity voiceremote will find exactly that. happy stuff. if the groups happy, i'm happy. you can even say a famous movie quote and it will know the right movie. circle of trust, greg. relax the needles are jumping. you can learn something new any time. education. and if you're not sure what you're looking for, say... surprise me. just ask "what can i say?" to find more of what you love with the xfinity voice remote.

the u.s. secretary of state

mike pompeo said the trump administration will move to prevent china to use social media platforms to access the data of americans. pompeo added the government was not specifically targeting the chinese-owned app tik tok despi despite claims earlier this week looking it was banning the service over national security concerns china's foreign minister called for a positive turn in the country's relationship with the united states saying the two super powers cannot be, quote, "forcefully decoupled. he added china never decided to replace the counter part across the pacific. it comes amid escalading tensions over beijing and washington over the handling of the pandemic elsewhere claim from the fbi director that china is engaged in a campaign to cause economic harm state side our next guest is mark

thank you for joining us taeld we'll start with the trade tensions there's history as we look at that u.s./china trade war and how it played out. the implications with the shipping sector. this time around clearly numbers are skewed as we see the impact of covid-19. the depressed activity, the impact on supply chains now bounce back as economies open up can you detect any implications from the trade tensions we're witnessing >> hi, yeah. you know, not necessarily. we're not really seeing that there's a lot of tension, as you mentioned with the u.s. and china. at this point, the chinese, when it comes to the freight market, they're importing a lot of iron, ore, and coal. they've taken the grain from other areas. on the oil side, we've started to see over the past couple of months an increased of fixture activity for crude oil to move from the u.s. gulf to china.

there's a lot of negative rhetoric but at this point, we're seeing an increase in crude oil movement at least a start but when it comes to overall activity, you know, as we're getting through the covid-19 situation, we have started to see a real increase in freight activity particularly in the dry side after 6 to 9 months of soft volumes. it's promising, especially on the iron ore side with industrial production picking up in china exports of iron ore through brazil and stra ya it iced up steam a-- it picked up . >> i've been looking at that market and the experts from australia clearly significant for australia to be sending the product to china we're seeing strong trade tensions between china and australia which is unusual

it encompassed how long coa-- h kong's extradition treaty. >> it's a risk we've seen a lot of the, you know, whether different ports are requiring an extra bit of quarantine if you're coming from high-risk areas which china has been viewed as a high-risk area. it slowed down the ability of companies to bring in iron ore from different australian mines. what we have seen, at least for now, is the brazilian market has come back after a month or two of inconsistent activity around the april/may period june it came back to life. like i said, brazil exports are up 50% there is now a swing producer or somebody else with meaningful capacity that can bring iron ore to market. and for the shipping market, overall, it's good news

theoretically because that's coming from a longer distance and that will tie up capacity for quite a bit longer yes, that tension between australia and china is something to -- that had an impact and about two months ago, it would have been more significant because brazil was no in the the game they had a lot of issues bringing iron ore to port but that's starting to thaw here over the last four to five weeks. >> omar, early on in the pab demmic with regards to container shipping, we talked about how shipping roots -- routes had to change to deal with the different countries locking down i'm curious how it evolved and whether we have gone back to normal when it comes to shipping routes or seeing container shipping take alternative perhaps longer routes. >> yeah. it's been a really -- the container shipping market over the last three to four weeks, we've started to see an increase in overall activity levels still fairly low but an improvement.

charters have been coming back and looking to add more ships into their lines so typically big liners like weber will take vessels on, say -- sorry a far u.s. route. maybe have eight or nine vessels in the line. when the pandemic hit, they reduced the vessels to six or seven and circumvented a few ports. they've now here over the past few weeks started to add more ships into the line and that's driven up charter rates for ship owners. >> omar, thank you very much i appreciate you getting up early. head of viewer securities. that's all for today's show. thank you very much for watching save hundreds on your wireless bill

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sure that hate speech is taken off quickly. >> one of the things that organizations do is investing in minority start ups and giving opportunities to give facebook some competition. >> what is their next move i believe all the brands and their consumers are looking and paying attention to what facebook is doing. i don't think they have long it's 5:00 a.m. and here are your top stories stocks look to get back on track as markets rebound as markets climb to another new high. the rebound coming amid new warnings about the state of the economy amid the covid-19 surge. and the rise of recreational vehicles as covid lockdowns continue we'll talk about the growing demand that sector is seeing as more americans hit the open road it's thursday, july 9th. you're watching cnbc