>> u.s. futures gain after talks between republicans and democrats collapse without an agreement on a plan. >> this is the money they need and they want and this gives them a great incentive to go back to work this was much more than was originally agreed. >> tech stocks struggle amid u.s. china tensions while tw

twitter makes a move for tiktok's u.s. assets. >> the u.s. imposes fresh sanctions on hong kong officials. the worst is over despite the oil giant reporting a 73% drop in second quarter profits. he has been arrested over colluding with foreign powers. they have been searched by police lai is the most high profile detention since the legislation was imposed by beijing in une.

police raided the offices of the newspaper and took away boxes of materials. shares surged today quadrupling at one point it is retail investors behind today's stock moves that are not motivated by company fundamentals they recently reported a 58.8 million loss for the year in a facebook post one financial kol or key opinion leader said he bought 1.2 million shares in the stock in a show of support for apple daily and free speech. he then sold some for a profit but kept some shares to be

eligible to take part in the company's agm scheduled for friday president trump donald slapped sanctions on 11 hong kong officials. the government called the move shameless and despicable this brings fresh uncertainty for financial institutions in the territory as banks have to walk a tightrope to follow u.s. requirements and comply with hong kong law. the sanctions have no legal status here. each rallying more than 1.5% the extending of losses from the previous trading session. >> let's take you to market action here in europe.

.9% with similar chances between the u.s. and china this sector and there's also lots of talk about fresh regulation in western countries and also helping the overall direction of trade the broader stocks across europe though this is how they move throughout the session. we are still positive up by about a third of a percent the markets still chasing it we're up about 1% a short time ago. just positive on the dax now it's been behind stock markets this morning which is unusual.

typically it's been out in front in recent weeks and months and almost a third on italian stocks at this stage. let's get to the managing partner. when we spoke to you about a month ago you were looking forward to the earnings season seeing it as an eye opener at this point what do you see about whether they should be picking up european assets at this stage? >> good morning. the earnings season came in better than the expectations expectations have been very much foggy within the companies themselves the bigger question now is the company and the sector deliver what was expected.

i think the bigger question is what is next and that's going to depend a lot on the medical revolution and on the lock down that will take place in europe. >> we've been talking a lot about playing the stimulus still and one basket of stocks that comes to mind is retail. retail names were picked up. you have executive orders in the states that translates between some sort of deal between democrats and republicans. that might be supporters if there is more stimulus and unemployment checks are being mailed out and also here in terms of the recovery. what do you make of retail stocks and just how do you think the consumer is going to fair with back up stimulus at this stage? >> i believe so far the stimulus has really served the purpose of bridging the gap of loss of income and loss of revenue so

it's just bridges the gap of what is not there. before the consumer goes back into consuming, we shouldn't forget this was the first time ever that the consumer was locked down and didn't -- was not allowed there anymore to spend. so i think the retail stocks will clearly benefit from this and are the ones that have e-commerce and capabilities and that will not be who will benefit from it. i will remain cautious as to which retail stock to buy. >> all along in this crisis, we have been talking about a second wave of infections the united states clearly dealing with a fairly significant infection rate at this point here in europe it's been a little bit mixed with the travel season upon us what do you make rpd about the data they're going to get in the second wave of infections.

>> the second wave is still to come in the autumn the only way to avoid a healthy individual being locked down like it was in march is by either dusting a lot and tracing a lot and i don't think most countries are ready for that so one can expect to get some sort of lock down and negative economic impact. it's clear that the shade of corona is much longer than expected and will need to be followed by historic increase in gdp and it remains to be seen if the consumer will have enough appetite and that's really the trigger to the future. >> what do you make of the executive order and it's a negotiating tactic that is smaller. how should we interpret the news and the messaging that it might need considering more payments

to support them in covid-19. >> there again it's almost life support to a lot of consumers if i see how much individuals in the u.s. are not able to pay their rent this came down as it stands today. the budget they have available today only reaches for 1.5 months even though the order has been given to pay up from the 6th of december. this is more of a symbolic thing than anything else once that drops and once the jobs are not certain i think the consumer is not going to be able to invest in durable goods which will be a good indicator as to where the economy is going. >> thank you for joining us. deflation eased in july and 2.4%

for a year earlier marking the 6th consecutive month of declines he filed this report on the data. >> prices in china fell 2.4% marking the 6th consecutive months of decline. it did ease notably from the previous month china's economic recovery is continuing to pick up speed. and that domestic demand has been holding up well and infrastructure spending which is largely being used to mitigate some of these external pressures having a rebound in commodity prices particularly oil is also said to ease pressures for manufacturers in china many of whom are said to have been operating at much weaker capacities in precovi d-days the economic recovery is showing signs of gaining speed

economists say a negative reading when it comes to this ppi is likely to be the new normal at least in the short-term as global demand remains sluggish as we are now seeing a spike in cases around the world and further lock downs that they warn could potentially stall the recovery in coming months consumer prices rose 2.7% year on year from june's 2.5% as more people have been going out in the recovery and hospitality and catering to it and it's certainly taken a hit to their supply which has also been driving prices up. pricely actually rose over 85% on a yearly basis in july but economists do say that food inflation is likely to ease in the coming months in china as

some of the impacts start to dwindle. >> they demand accountability following the devastating explosion that killed 158 people look here, it's your very own all-in-one

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consolidated loss after taxes. at 329 million euros it does expect a result after taxes to be positive in terms of thelyly -- t the liquidity in 2020. >> european stocks down so far this year. it's been outpaced to buy some which is then positive for this year

a quick look at the oil majors 2.4 plus percent falling behind. 1.7% higher and .9% and brent wti prices this morning. up more than 1% across the board. and the message that they had. the latest is that they saw the first half come by 50% as the pandemic devastated global oil demand the most largest oil producer for the recovery and it still intends to stick to the policy let's get out to dan for more. it's clearly been a contentious one and it will be maintained at this point so just walk us through what you heard in the press conference and the tone today

>> certainly a very optimistic time he joins for a call on sunday. disappointing but otherwise solid results. but still an overall optimistic with regards to where saudi aramco is heading. pledging to pay out $75 billion in dividends this year and $75 billion in dividends moving forward as well. that was down 70% on prior 23.2 billion for the first half of 2020. and aramco also saying these results were hit by the collapse in oil prices that we saw in the second quarter this period of time also covering april when we saw oil prices flick into negative territory and the result also being hit by declining, refining and chemical margins and the

historic halt we saw in global economic activity and as i pointed out, saying it's very optimistic and the worst is in the rear-view mirror it declared a dividend of $18.75 billion in the second quarter. particularly interesting because as you have been covering, other oil majors in the sector that have been hurt in the second quarter by the collapse in oil prices describing to scrap their dividend to conserve cash in this environment and saudi aramco saying it's paid out. we saw the stock actually rising on the saudi yesterday it's doing the same today and the reaction in oil markets has also been broadly positive here as well but of course this has also raised some eyebrows among analysts that question whether or not this kind of pay out is going to be sustainable into the future

we asked that question yesterday. we said look, how long can this last this is how he responded >> we will have a strong balance and a lot of flexible capital on our hands. this is all because of our current balance sheets and good allocation. >> so it is capable of paying out of the dividend. of course for saudi arabia this is critical as well as it deals with a lower for longer environment and tends to combat the challenges on the physical side of its own budget so it will see into the future the bulk of it goes to the saudi arabia juan government it is of course benefitting from this as well a couple of other things to

unpack in the report, what we saw was saying it would be reducing it's capex this year as well this is a thing that we have seen from the industry as it combats some of the challenges right now. between 25 and 30 billion. it's now going to be at the lower end of the range at the same time, it also increased as a result of the acquisition. the company saying the full acquisition of the corporation purchased from the saudi arabia juan investment fund is on track to be completed sometime soon. on the global economic recovery and the outlook for oil prices on the second half of the year, let's see what happens next. thank you. >> thank for that. this is the latest around sanctions. the administration, chinese authorities deciding to apply

sanctions on ted cruz, marco rubio and other u.s. politicians starting monday. in retaliation and it's been some what influential about a hawkish chinese approach this has now been confirmed that the sanction will start today so that is just crossing. >> protestors have clashed with security forces in beruit as they call for major reform that's after close to 3,000 torns torns detonated on tuesday and devastated large parts of the lebanese capital rescue workers search for survivors as dozens remain

missing. international donors ledged 250 million euros in emergency aid following a conference organized by france and the u.s. french president emanuel macron said local reform will be vital to the country's recovery. >> it's like a thunder bolt. it's time to wake up and take action lebanese authorities now have to put in place political and economic reforms which are being called for by the lebanese people the only thing that will allow the international community and side by side in reconstruction >> we saw an interesting change on the ground. calls for government change. on the back of this explosion. what did it make on the ground >> well, i think the lebanese people are out on the streets

demanding systematic change. not just a change of personnel at the top and i think that for many lebanese who have bore the pain of this latest incident in lebanon, this just kind of highlights the brokenness and the decay at the heart of the system so i think their concern is that you're really going to get a change of government ministers but not the fundamental structural change that is needed to get the country back on the right track and i don't think they're going to be appeased by that and i think we are likely therefore to see tensions going forward. >> incredibly difficult to bring around institutional reform at this point you look at the situation on the streets. what is it going to take to fundamentally reform lebanon. >> this is the incredibly difficult situation in the lebanese state the sectarian networks established means that the financial and political elite is

very much invested in the status quo. it's hard to overcome now. we see there's some intention from western players and the french and the americans and others to try to get more systematic time but at the same time there's forces within the country and the iranianss and others that very much want to maintain the status quo so it's fundamentally difficult to imagine how the change is going to happen without the lebanese people driving it for themselves and putting the pressure so intently on the lebanese elite >> we mention the conference for donors, the french president over the weekend and humanitarian aid has been very much needed at this point. the imf has stopped trying to engage with officials but not getting any progress on signing up for some form of a reform program. what does it mean to have

outside influence in terms of destabilizing the economic situation. >> sure. >> let's first just say that we did get n poverty and food inflation 200%. so really this humanitarian aid pledged has not been compared to the immediate humanitarian needs on the ground so much more will be needed to keep the people alive. keep the country going in terms of that structural reform, they have been playing macron this weekend and no significant financial support unless you get this institutional structural reform that's being demanded. the clock is sticking, the country is effectively bankrupt. the elite do not want to make that change. the elite will lose significant resources of their own if they agree to that not just politically but economically this is where things are stuck and it remains very hard to see how we find a way out but the

likes of the imf and macro and others and they won't get that aid. if that aid does not come in we're facing a daunting prospect. >> i was just looking at your note and i was giving you a sense of deja vu but saying the economic implosion you can see means regional instability and associated migration both arriving across the various parts of europe. southern european countries in particular what do you make of the challenge that will lie ahead for europe at this point >> as i said, not just in lebanon we're looking at an economic unralveling an implosion with huge, wide consequences it's about people's survival to provide food for their families.

and find better conditions obviously as states collapse and hollow out there's an acute need for others to recognize the instability and implosion in the manner in which it could feed out into the wider region and also in terms of europe in terms of yes migration and terrorism and in terms of instability. this demands some kind of regional international and suddenly european response >> i appreciate you joining us today. thank you so much. director middle east and north africa program the european counsel on foreign relations. ahead on the program, u.s. virus cases hit another grim milestone as the pandemic continues to

spread globally. we'll discuss the impact of the second wave next

welcome to street signs. these are your headlines dow futures as president trump signs orders after talks between republicans and democrats collapse without an agreement on ace recue plan. >> this is the money that they need this is the money that they want this gives them a great incentive to go back to work. >> tech stocks struggle in european trade and in simmering u.s.-china tensions while twitter makes a move to challenge microsoft's bid for tiktok's u.s. assets he is arrested and his offices raided under china's new national security law as the us. imposes fresh sanctions on hong kong officials >> the worst is over despite the oil giant reporting a 73% drop in second quarter profit

>> let me take you to some of the action that we're seeing on european markets this morning. the futures we're witnessing state side playing out on this side of the pond in terms of the negative sentiment into some of those u.s. futures where we have seen it in the last hour or so ftse futures -- ftse trying to stay just a tenth of a percent but gains that we had on the french and italian markets have given way to negative territory. look from the outset and trades down by a third of a percent disappointing moves in the morning session here in europe some positive gains as the markets try to pull back some of the losses from the month of july and try to catch up to the u.s. markets that you can see this morning just a bit of that thanks so futures. take a look at what we've got on

the boards now we were up on dow jones at one stage and now you can see about half of that territory at this stage. still positive though and just inclined for the s&p 500 but following the losses we saw as we wrapped up the friday session for some of the big tech names on wall street friday. >> meantime, coronavirus cases topped 5 million over the weekend as the pandemic shows no signs of slowing down. india also reported a spike in cases taking the country's total number to over 2 million this as community health workers went on strike over poor wages and a lack of protective equipment. meanwhile, australia reported it's biggest rise in daily coronavirus deaths as they struggle to contain the outbreak in the second largest stake. as they struggle they continue

to see them despite strict social distancing measures kathie park reports. >> the coronavirus crisis deepening with the country hitting 5 million cases. these five states combined making up more than 40% of the infectionsincluding california where the death toll topped 10,000. >> this morning in ventura county, screaming, slapping and shoving during a clash ahead of church where pro mass demonstrators have gathered. emotions running high where they're defining statewide orders with indoor services. >> this government doesn't give us our rights. god gave us these rights. >> in the hot spot state of texas, health officials reported a record high positivity rate climbing since the end of july in georgia where this school photo went viral showing students shoulder to shoulder in the hallway.

the principle now says the school will be closed tomorrow and tuesday after 6 students and three staff members had tested positive for the virus the school had suspended anna waters that had images that reversed their decision. >> i knew it wasn't mandatory. i did trust them to keep us safe. >> and more questions tonight about the fate of college sports the big 10 announcing they'll slow down preseason football practices with no pads or full contact among athletes this after the mid american conference postponed all fall sports analysts believe the fall out is just beginning. >> i don't think we'll have a season in the fall i hope that i'm wrong and i pray that i'm wrong but there's just too many challenges it's like trying to thread a needle from 100 yards. there's too many inc.s that can go wrong. >> it's not slowing down the motorcycle rally people have main streets, bars

and concert venues. >> nobody wants to be the ginuea pig. we're going to find out. >> joining us now to discuss the covid-19 situation he is a columnist. thank you for joining us and you have been weighing up some of the earlier forecasts. it seems less than clear at this point what is playing out on the ground but it continues in some places in the beginning of the second wave. just walk us through what your expectations are from what we're witnessing a spike in infections in the united states. cases elevated in europe on the back of the travel season. what do you think the economic hit is going to be in the coming months >> i'm not an epidemiologist it looks like a shallow resur yens and we're looking at deaths in digits.

and it doesn't look like another lock down should be necessary from today's data. but generally what economists are look at and estimates by the oecd and french government that every month of lock down reduces your annual gpd growth by 2% so you know, if we look at the -- the forecasts of the oecd, they had two scenarios one was for instance if we look at the u.k., the one estimate was for a 12% fall but if they were in gdp but if there were a second outbreak that becomes 14%. so you'd see, you know, another month of this severe lock down would have a pretty big impact. >> i want to get to some of the majors that economists were working with that have been in place and i'm talking about testing, tracing, wearing a mask each element here has been showing us some inconsistencies.

on the testing side there's been some criticism that they're not coming to it quickly enough to make any difference on the tracing side all sorts of problems with some of these tracing apps and when it comes to that, there's non-compliance as well what do you make of the assumptions that economists are working on that these majors will be enough to ensure that they do not go to the lock down in the future. >> that's such a good question i think what we need to think about having had the first wave is let's take measures whose economic cost is lower than a lock down and whose effectiveness could be equal much better hygiene, sterilization of public places banning the big public gatherings but allowing small businesses to stay open. probably with the experience we have with a lot of different states we can look at. we can get together a set of measures that would help us avoid a lock down. we have an interesting case of sweden versus denmark where sweden did not lock down at all.

however it had four times the deaths per million of denmark that locked down immediately but was the first country to go back and open schools it seems that fear is a huge factor here so, you know, i don't think it's a question of necessarily let's save the economy by not locking down but we could think about other measures that would be equally effective in bringing down that rate of infection. >> just looking at some of your predictions at this stage, i find it depressing because all along a very strong benefit scheme in europe which may be positive for getting back on its feet here on this side of the world but you point out one of the real negatives around european countries is the lower skills content for some of the jobs which means that some of them can be easily replaceable just walk us through that. that suggests a negative message on the european recovery. >> and that would not be the

case of every european country but if you think of, for instance, spain or italy or even france with their very, very large tourism sectors you're looking at basically quite low skill jobs restaurants, hotels, you know, jobs that don't have a high skill content and tourism is going to take a hit according to the unwto between 58 and 70% this is going to lead -- this is going to hit the low skilled jobs very, very hard the industrial jobs a lot of those may hold up because there's these short-term working schemes and so some of these people will be coming back this is something that we learned from germany in the last crisis and europe has an advantage over the us. there but we also have to remember that europe was weaker before this crisis started so if you put it together you start from a relatively lower

base and then large tourism has been very hard. >> we'll ask you about these executive orders over the weekend. continue paying out benefits also changes to the payroll tax cuts and looking for stimulus to come through with an agreement from republicans and democrats we haven't got the full agreement. there seems to be some uncertainty about whether the benefits could be paid up by the states given the legal challenges and the state of their finances what do you make of all the moves by president trump over the weekend. are there any positives at all >> most definitely if you get more jobs support consumption will hold up that's a benefit if people are not afraid there's quite a bit of precautionary saving because as this pandemic rages people are afraid they start putting money away they're not spending like they used to. this is where the european scheme of long-term, short-term working and long-term job support is an advantage because workers aren't so afraid maybe we can hope for a stronger

recovery in europe because as americans lose the connection to the job it takes a longer time to come back and find another job. the company has to retrain new people where as in europe they just come right back to their spot let's see whether that works as well this time as it did last time. >> thank you very much for joining us with your perspective. our economist at ie university we have got some breaking news crossing through on the back of the election of the belarusian president that won landslide re-election victory. that was the latest on the back of clashes and crossing out the opposition since we try to hold talks with authorities over what it said was a rigged election. it looks like they will stand in the way of this outcome so far that has been announced from the election commission. they showed that he had won 80%

of the vote. that's the opposition at this stage. refusing to recognize those results. coming up on the show, president trump takes natural action as talks over a massive new coronavirus relief package stall. more on that after the break

shares tumbling premarket trading after the u.s. government put it's $765,000,000 loan on hold and said it would investigate the circumstances of the deal shares in kodak traded heavily on the 27th of july while executives also received stock options the day before it announced it had been given funding to produce coronavirus ingredients. shares subsequently skyrocketed but largely fought back sense. tiktok is planning to sue the trump administration as soon as tuesday in a challenge to the

executive order which promises to outlaw transactions with the video sharing app. trump's order will come into force within 45 days unless the u.s. assets are sold to an american company it's in talks to buy some of the operations twitter has always expressed interest in buying tiktok's u.s. operations but some experts raised doubts over whether the social media group would be able to put together sufficient financing to go up against microsoft. twitter has a market cap of around 30 billion that is less than some valuations of tiktok's assets. >> warren buffet brought back over $5 billion of berkshire hathaway shares. it's been effected by the pandemic as second quarter operating profits fell by 10%. the company announced a $10 billion write down in it's

business such as apple, amazon and jp morgan. >> president trump signed four new executive orders in a bid to help support the u.s. economy. and congressional democrats fell to reach a deal over a massive new stimulus package a federal evictions ban, a payroll tax suspension and student loan relief. he also brought down a level of jobless benefits a key sticking point in negotiations to $400 a week. >> democrats though hit out of trump's orders calling them unconstitutional the actions were meager and republicans must compromise over a relief package the u.s. economy added almost 1.8 million jobs in july down from a record increase in the previous month and above estimates he has more. >> the government reporting a better than expected gain in the

month of july. it still represented a slowing from the strong rebound. 1.763 million jobs created according to the bureau of labor statistics that's against the estimate of 1.5 million. declining to 10.2% but it would have been 11.1% if not for people being misclassified an on going problem that the bureau has had they wrote despite today's solid jobs report a more sober reality will begin to settle in but it's also a reality that will keep the federal reserve on hold when it comes to interest rates for a very long time. >> leisure and hospitality almost 600,000 jobs. it's a lot of jobs but also a slow down from june government adding 301,000 part of that was a seasonal adjustment teachers were expected to have been let go in this month. instead they were let go in

april so it didn't show up and it ended up being higher education and health services were some of the doctors offices that have been closed have reopened it seems like employers decided to bring back some workers on a temporary basis. a long way and it still has a very long way to go. looking at the last three months we have gained 9 million jobs back and we're still 13 million left to go after those two big losses in both marchand april. two ideas of how much damage is being done in the labor market they have left the work force since the pandemic began and there were 1.6 million permanent. they were about where they were in june suggesting that there's been some ebbing of the

improvement that we have seen in the job market he says it's a relief, the jobs number is, but august will be weaker the recovery remains intact despite the virus resurgence among the new concerns of economists if there is no additional relief that could prompt a new round of lay offs in august. cnbc business news. >> let's just take a link to the markets. and the executive orders what do you think we are witnessing today a little bit coming after the u.s. sessions. >> good money. >> i do believe that the recovery is on track and also i believe that this executive order puts pressure on the congress to come together and do a bipartisan deal and i strongly believe there will be a bipartisan deal because

remember, this executive order relief package, the money is going to run out end of this month. it doesn't go away it doesn't go to the end of the year i'm still hopeful that the deal is going to be at least 1.5 billion. you have seen the democrats giving ground already. so i think that they're going to put pressure and i do believe that they'll be well supported and and much more close to them. >> highest on the s&p 500 as well how much of the stimulus agreement is baked already into the market trade that we witnessed. >> i don't think anybody believes it.

the real thing to look at, the u.s. pandemic has been effecting the u.s. economy and when you look at the number of cases in july and let's not forget they're sitting on savings for the last fooive months it just goes to how soon the economy can we open and how much wider the opening can happen and that's what president trump wants to do. so i see these things happening by a spike again remember now, nobody can say that these numbers are effects of less number of testing. and now we are seeing the cases coming down. >> can i ask you about the covid situation? they have been trying to workout whether they should be avoiding the u.s. because of the spike in cases. there's a lot of reporting around the situation and what you have seen in that country,

very little in the way of restrictions and fresh measures and many now talking about heard immunity much quicker. is it something that considering the united states that maybe they have a lot of because news out of the way already. >> i agree with you. everyone talked about when they have cases rising and the last two weeks, they are caught low so i do believe that sweden has handled it very well and it's a lesson for everyone else and i strongly believe that in u.s. people will take heed and europe as well. i personally from the cases i have seen, i'm not as much concerned. i think that we're moving in the right direction. the u.s. is also moving in the right direction. it's just a matter of how soon one can reopen the economy and remember last year, everyone or even before that everyone is talking about oh they have to do fiscal stimulus. monetary policy knlt do tcannot heavy lifting.

that is continuing to stay and that gives me a lot of confidence that this gets to the up site. . >> thank you for joining us today. that's the german finance minister the party leader has unanimously nominated the chancellor candidate and seemed to be running as candidate to be the next chancellor and clearly a case that the market is well and truly aware of playing their key role as finance minister and a quick look at the german market today that you can see is trading lower. significant updates on the political side out of germany today but we are counting down to the u.s. market action later on it does look as though futures have been before the start of the trading session.

worldwide exchange is coming up next

here are your top stories. stocks look to carry that positive momentum into a new week building on a strong performance fuelled by what else, big technology investors keeping a close watch on washington d.c. after the president decided to go it alone on virus relief signing off on executive orders addressing those concerns and hong kong making its most high profile arrests yet under the new security law imposed by china. it's monday, august 10th and you're watching worldwide exchange right here on