i feel like we should be in space. you can go off the beaten path too, just long as you remember... the true enthusiast will always beat out the poser. have a little fun now and then. hello, good morning and welcome to street signs. let's get into your headlines this hour. travel stocks lead losses on the stoxx 600 as jeremy issues a fresh travel warning against spain ordering passengers to quarantine second wave fears sweep europe with france reporting more than 3,000 new cases in a day as the country struggles with hundreds of virus clusters.

as white house senior adviser jared kushner defends president trump's handling of the covid crisis some people have chosen to play politics with the pandemic president trump opted not to politicize it and help people get whatever health they need. jp morgan and goldman sachs dumping almost $13 billion worth of shares across sectors in total. >> so let's just talk a little bit about the headlines.

there's a key focus on renewed lock down risk in many european countries and the fact that germany has stepped forward and said that it's going to quarantine those arriving back from spain has added another level of complexity but when you look at the market, there's no evidence that that is holding back risk appetite this hour we see the ftse and the cac 40 all in positive territories. the impact of potential travel restrictions is royaling the airline stocks and those other stocks that are effected by limited travel opportunities you have other sectors also a little bit weaker. having said that, look at the

top line here, chemicals, basic resources, industrials all of them seem to be split at this point financial services up as you can see here and technology and basic resources are showing the best gains at this stage in the market session we do have gains on the board for the european markets this comes amid a spike in

infections in spain with 50,000 cases reported in the past 14 days talk us through the new restrictions put in place by the german government and how authorities are talking about risk when it comes to imposing these travel restrictions on german travelers >> so it's the main holiday destinations for germans and came as a surprise on friday and in reaction to that, the biggest european tour operator that's catering to many tourists has cancelled all of the bookings going forward. hardly operating destinations like the islands because so far there's no travel ban there but

that's it. but the rest of the island is actually perfectly fine so i guess it's completely on as to whether this is exaggerated for germans or not especially if you look at the statistics where the corona virus is getting reimported from, its not spain. it's mainly serbia, bul dprks aria, those countries that have many people going to their families to bringing them back and have big family gatherings that's where the coronavirus is getting reimported so the health minister said it's just a travel warning. it's not a travel ban but the

problem with that is that people might actually be mandatorily quarantined and perhaps even lose their pay because some employers are saying if you still go despite a travel warning you will not get paid because you have to self-quarantine. so i guess there's a lot of risks and germans, as others do as well, don't really like the risk and the perspective to go somewhere and have to self-quarantine afterwards and that's why we're going to see many, many cancellations they are close to their record corona low because clearly any hope from that slight up stick in demand is actual livly vanisg now. because this just the beginning.

thank you for flushing out that part of the travel story. it's not just spain in focus, france is also in focus. the country has accrued over 3,000 new coronavirus cases for the second day in a row. it prompted both of them to extend requests to include outdoor locations. they're now investigating 263 virus clusters amid the resur ye resurgence also a 14 day quarantine on travelers returning from france. >> let's bring in the senior investment manager for aberdeen standard investments good morning, good to see you back with us let's pick up on that. i was taking a point at the top about just the divergence that we're seeing in different sectors and there doesn't seem to be clear logic as to whether this is a pro value or

anti-valuable or procyclical or anti-cyclical. if anything we have a whole mix of sectors that are higher at this stage and how would you characterize what's happening around different sectors. >> i'm glad that you said it doesn't seem to make much sense. that saves me doing so i would suggest that we probably have more days that fit that bill than anything else in recent times but it's very much a narrative driven market. that's the way to describe it. once you lose any growth expectations, once you lose value, understanding, what it is that you're paying for today and how that compares to your own expectations for how the revenue streams have been given company your sector will change overtime and you merely buy stocks

because there's a story on a given day that you think should be quote, unquote, good for that company or sector. it does lead to this direction this choppy market when they're not changing so dramatically on a day-to-day basis a better job on uncertain economic outlook one thing that we can say for certain is a spike in the virus data but we're also seeing a dramatic

improvement at the survivablity now there's an 80% likelihood that you're going to survive because we're seeing treatments that effective for saving lives. does that mean actually the market is becoming just neless sensitive to the impact of the higher infection rates they have become some what more targeted and as you describe actually, the virus has become far, far less, you know, fatal. what we're seeing is that it was probably the weakest we are

seeing very few different relationships from the number of districts and death. you have to consider the number of tests going on and things like that. for now that doesn't seem to be shifting the government response what we're seeing is a very small number of cases have a rapid reaction it can still be economically significant. i don't think that markets can get to the stage where they can completely ignore that whether that government response softens and changes through time because of the cost of benefits with regards to human lives and with regard to the economy

>> you say that markets are narrowly driven at the moment. and do these spikes that we have seen across europe fit the narrative or is this new information that changes the narrative for investor >> that's a good question. >> it depends on whether you're a bull or a bear it does appear to me to be quite

rampant. just the nature of the virus is that it does spread very, very easily so unless you have shut off the country completely and confirmed that you have no cases at all for a number of weeks it's highly likely that the virus will return and if the economy is operating in a more normal fashion then it's likely it will spread quite far before you realize that it's back it shouldn't have been new information. the narrative seems to be emerging about controlling the virus. we should be trying to manage the health effects and policy response rather than controlling. europe had few and europe was doing great. u.s. was doing terribly and at that time i thought the

narrative had gone too far and we would see a normalization which is to say a slowing of infection in the pace in the u.s. and increase in europe and that's what we're seeing now >> on that point we're seeing rising numbers in europe and according to some indicators, improvement in the united states why hasn't this translated into renewed dollar strength? >> that's a very good question i have been wrong on the dollar now because i have been bullish and the market has tried to embrace the decline narrative but one of the reasons it's so difficult is because it by definition means the rest of the worlds currencies excluding the dollar will be stronger. most don't tend to react well. certainly not at a time facing their own economic challenges.

so for me it's difficult to get that without it being in a global economic upswing that's being lead by the rest of the world. i think all other environments tend to be okay for the dollar if not very good for the dollar. so at the moment, i think again this is a bit of a push. there's probably been a lot of positions that have been structurally long the dollar and we have seen some of those clear out. obviously euro dollar which is a huge percentage that a lot of people look at that's still working through the system but i really do look at that recovery fund and the european economic outlook and i struggle to justify the bullishness that's emerging around the euro. so for me, this is -- its still going to be more difficult to come by for the euro dollar rallies from here and therefore it still favors i think owning some long dollar risk.

>> we'll end on that note. always great to speak to you, james. now a couple of new developments to highlight for you in the health care space, novavax is launching a phase 2 trial of its covid-19 vaccine in south africa that's after they signed a deal with the u.k. government to provide 60 million doses of the vaccine if it's approved by regulators they're due to start phase 3 trials in the u.k. in the third quarter. >> sanofi struck a $3.7 billion deal to buy the u.s. company it's designed to boost their rnd capabilities and they're very involved in the race to find a

vaccine and this deal is separate from the coronavirus but no doubt using the strength to help gain investor support for this deal. >> thank you >> just something to bring you before we run into break here. they're saying there will be no new election he is under pressure about allegations of the way the election was conducted speculation that they had several phone calls with russian president putin over the weekend and that has emboldened him to reject calls for another election to take place with closer monitoring. the they're saying there will be no new election. >> jared kushner plays down

hopes that the uae israel peace accord could lead to an overnight change in saudi foreign policy more on that exclusive interview when we come back.

jared kushner in an exclusive interview with cnbc, kushner that was a key player in the talks between the two countries says he does not expect a near term change in saudi foreign policy. >> we just had the first disagreement in 26 years and you're saying we want something on board. >> are you saying they're not significant in terms of moving it forward because they're the biggest economy as you know in the region. >> but are you saying that what happened yesterday wasn't a monumental break through in the middle east. >> my point would be a gcc agreement versus just a uau agreement. yes an absolute diplomatic victory however not having all of these countries on board does

make one wonder if this is going to be something that's feasible over the long-term. >> right so first of all i think yesterday was a historic step. this was the first agreement in the middle east for peace. the last one was 1994 between audi arab i can't and jordan you can't turn a battleship around overnight. >> president trump has threatened to trigger sanctions on iran after failing to convince the un security council to extend an arms embargo on the country. he would not attend a proposed summit called for by russian president putin to call for confrontation. this after russia and china voted against continuing the ban which is due to expire in october while 11 other members abstained. he called the decision a humiliating defeat for president

trump. iran's rohani also voiced opposition to the deal and warned of possible political repercussions of the agreement. >> we are warning to uae not to allow israel in this region. they will do so dichtly and be treated differently. so far they carried out this action. >> can i just start by asking how ground breaking in reality do you believe this deal is. is this the start of a new process of integrating israel.

>> it is and it is not i hate to create jared kushner it's not a peace agreement because there's never been war however there were in the ue for quite sometime so this is it existing already but the fact that they're out in the open, it's a change. to say that this is going to bring all of the gcc into the fold and diplomatic missions against that, i think it's working. >> why is it happening and why now? >> it's an interesting thing

i assume that it's very important. and the question, you know, what has happened in the negotiation? most of them experience crisis whether it's the coronavirus or the corruption so they needed just a little. it also serves the interest of the uae. probably the supply, sophisticated. so i think diplomatically could give small access. so i think that there were negotiations that one would expect to happen

a is it an isolated case but let's not ignore how it's going to effect the palestinian conflict because this is going because part of the agreement is stopping it and this is an important achievement from the ue in this sense and it's then the occupation if you are you right now, you must increasingly feel this is an isolating moment. how do yourespond to that. >> we saw the response from the palestinian authority. they're. upset. they're angry. they feel more and more isolated they feel they have very few friends left in the international community and so,

in this sense, the agreement says the issue of succession and no, they're suspended and we'll go back to this later. it's not going to change it's not going to change the fact that there's the occupation so i think for the palestinians, they're more isolated with no political solution and see how they're going to respond to this. >> of course you ask the right question and that is the broader question and ultimately what the saudi position is on that. we see this in the dying embers of trump's first term. we don't know who is going to be the next president of the united states but we know who is

running. will there be momentum, for example, if biden wins and becomes the next president how do you think the election changes the pace of potentially taking forward this agreement? >> i think there's no reason to follow what they have done and for them to see what is going to be the response within the region and public opinion in the middle east and waits for the election and see what will inspire them but let's not forget they initiated 20 years ago the saudi piece initiative and part of it, the important part of it is that there's normal organization of relations with israel unless there is a peace agreement with the palestinian.

and this is the saudi initiative so behind the scenes, the recognition are closer but this is still the audi position and there's no reason. >> just let me ask you, the question that you raised in your own notes, under which president do you think the region will see the most peace who is the safest pair of hands? >> well, i don't think the world is in a safe pair of hands in any sense of the word of safe. the biden house ticket is not promising but we have to wait and see. one thing, for instance, when it comes to iran there's the

security council but it goes exactly against what the united states would like to achieve. we're going to say good-bye. thank you for joining us and giving us the benefit of your analysis still to come, alibaba appears to be in president trump's cross hairs. the president to divest it's u.s. assets. we'll have more on that when we come back.

welcome back to street signs. here are your headlines. travel stocks drag on the stoxx

600 as germany orders a fresh travel order against spanl orderiorde -- spain. >> democrats take reaction calling lawmakers back to congress to tackle the postal service dispute. senate minority leader and chuck schumer says president trump's actions may put the election results in doubt. >> i'm demanding that leader mcconnell go into regular session so we can have the hearings he refuses to appear he should be stamped return to sender. >> the deal with israel granting the agreement is a huge mistake as white house senior adviser jared kushner justifies saudi arabia's silence on the deal. >> they have been a great leader in making modernization but you can't turn a battleship around overnight. >> president trump piles

pressure on chinese companies as trade talks are postponed indefinitely. >> a lot of things >> let's take a look at how european markets are trading we're about an hour and a half in the session stocks were negative before the week, they managed to gain about 1.2%. this morning has been a fairly muted session overall with the markets teetering around the flat line. out performing it up over 1% now. let's get a check on wall street what does this all mean for the u.s. open? u.s. futures indicate a firm start to trade this week a major indices moved higher into the close on friday leaving

major indices near the flat line for the day. for the week, u.s. stocks did end higher 8 of 11 sectors were positive for the week lead by industrials while utilities were the key lagered down about 2%. now they provided interesting color and backdrop before the markets opened. >> thank you so much for that. >> let's move on and let's pick up on the other stories in that part of the world. japan suffered the sharpest economic contraction on record as second quarter gdp plunged at 27.8%. private consumptions and exports also fell sharply. real gdp hit the lowest level in

almost a decade wiping out all the gains made under the stimulus plan in 2012. you have a good sense of how much weakness that we're seeing as a result of the nikkei gdp print. let's move on to china u.s. president donald trump says he could ban more chinese owned companies from doing business in the u.s. this after herded them to die vest tiktok operations in the coming days. the president said his administration is quote looking at other things. the u.s. and china postponed a review into their phase one trade deal saturday scheduled talks between u.s. trade representative and his chinese counterpart delayed.

reportedly due to scheduling conflicts. according to router sources the delay is not due to problems with the agreement no date has been yet set for the talks to take place. speaking to reporters over the weekend, the president praised beijing for increasing it's purchases of u.s. goods but said officials there are also hoping for a joe biden victory in november's presidential election >> a lot of things and they're dreaming about joe biden. so is iran dreaming about joe and so are numerous other countries. they dream about it because if that happens they'll own the united states and china i can tell you specifically will own the united states.

can't let that happen. they have benefitted they're investing in the network aiming to deliver packages within 24 hours in china and 72 hours internationally. welcome to the program good to see you. how concerned or otherwise are you about president trump looking at alibaba. >> it's a big topic but, actually, we are actively developing our logistic network connecting between china and

europe as mentioned we are investing and we will connecting to the rest of the nations. we providing a very effective network. from this perspective while i don't think it is being impacted very much from the tension between china and the u.s.so

keep completing what we're already doing over there and the e-commerce as well as the connecting a warmer welcome in europe th they are in the united states are you concerned at all that that may shift if we continue to see a very hard line taken in beijing toward critics of restricted market access in china. >> well i don't know if i'm understanding your question very correctly but i think a basic

principle as long as we're providing a valuable service both for the chinese, you know, as well as for the european smes so as well as for those governments over there, we don't have too much concern. >> my question really relates to the willingness of europe to continue to do business with chinese companies like yours given the increasing politicization between all at the moment >> because we are actually providing opportunities. it seems we're constructing the concept.

based on, you know, our road map covering the entire territory of europe we are trying to introduce the digital technology, whatever they're doing over there in china and we want to optimize the existing and connecting from china to europe. how many are actually flowing from china into europe we had very intact alert system. based on our database.

what will be the loading plan to improve the usage. make sure that each and every password are fully loaded. by doing so we're reducing the number of trucks over there. having said that, we're actually reducing the total numbers of the truck on the road in order to reduce it and also by constructing such of the contract we are introducing more volume into europe and by doing so we're going to need more, you know, employees. and in other related industries. by doing so also more jobs over there. so in general, we're trying to create opportunities from china

as well as for europe. >> and as long as we're creating the opportunity and helping the local economy as well as the environment. >> i don't have too much concern about the status >> given that you're able to make these adjustments and plan for how many trucks you need on the road or things like that what is the latest what can you tell us around activity it flows in e-commerce in the last weeks what does that mean in the coming weeks and months. >> the volume or the numbers or just a -- in terms of volume and business activity.

and from 600 to 800,000 to fulfill the requirements of the local consumers. during the impact of the covid-19, the demand from the european markets are increasing quite rapidly and we can also see a rapid increase in certain categories such as the -- while such as the exercising equipment and also like the beauty like it's also increasing quite rapidly. it seems people have to stay at

home they are paying more attention conditions their own and also their appearance and they're doing like probably like more social through the internet and they would like them themselves to look beautiful in front of the camera so they're all increasing quite rapidly. to fulfill the requirements that the european consumers are increasing quite rapidly. >> it's been a pleasure, david thank you so much for persevering with us. the general manager. let's move on. britain's chief brexit negotiator david frost believes a trade deal with the eu is possible by next month they remain two key sticking

points expected to dominate the discussions. it has the political space to make the compromises and also in particular given that the u.k. is the weaker negotiating partner here really the ball is in the u.k.'s court as far as the eu is concerned. >> a number of confirmed fatalities related to coronavirus is over 774,000 globally deaths in the u.s. exceeded 1,000 for the fifth straight day on saturday. australia meanwhile suffered it's deadly yesterday with 25

deaths in victoria pain and italy ordered night clubs and bars to close while restrictions have been tightened in south korea's capital we're going to take a break but coming up on the show, back in session. democratic leaders call back lawmakers from their summer recess as a battle over postal service funding. more after the break

house speaker nancy pelosi called back lawmakers from their summer recess to vote on legislation that would block controversial changes for the postal service funding has become a crucial sticking points. and may lead to the november election he was quote a threat to the life of american democracy senate minority leader chuck

schumer also took aim at trump saying his actions may put the results of the election in danger. >> donald trump is aimed at hurting the elections. he wants -- he had said -- this man has no limits, unlimited gx al he says he wants to slow down the mail to hurt the elections and make people doubt the results of the election. maybe he's worried he's going to lose it doesn't matter. our elections are sacred men and women have died for them and the right to vote. >> well, today marks a big day for u.s. politics. a democratic national convention to the nominate joe biden. former first lady michelle obama will appear virtually amid coronavirus concerns let's get out to tracy potts

that joins us now live what is important for investors to know what we should be looking out for as the democratic national convention gets underway today. >> look out for the tone of this convention the convention co-chair said it's not just for democrats. it's for everyone who is essentially not satisfied with the current trump administration so look to see how much they move forward with their vision and how much they hammer the trump administration we're expecting to hear some of that. he will be focussing on the impact of that of american families the keynote speaker is former first lady michelle obama and then of course we'll have the others live later this week

including former president obama that has increasingly spoken out about the trump administration we'll also hear of course from senator kamala harris and former senator and vice president joe biden had they set their nominations. now the democrats convention will be followed by the republicans and president trump was at the nomination expected to happen at the white house next week but in terms of what investors might want to keep an eye out for is just how much of this convention is going to be the vision of the democrats and how much it's going to hammer republicans plus what the response will be from the republican party and the white house giving us some idea of what this follow up is going to look like. >> tracy, thank you so much for setting the scene for us tracy potts live in washington for nbc news. >> thank you so much for that. well as we come to wrap up the program, let's just revisit what the markets are telling us at

this point a little bit of a mixed session for europe with stocks largely flat as we look at the u.s. trade, we are indicated. and it's quite open on the nasdaq and tells us that a lot of investors and the familiar growth train here as they look at just some mixed news flow coming out of different parts of the global economy we have rising infection cases here in europe at it th'sfor street signs have a great day everybody we'll see you tomorrow. hike!

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>> it's 5:00 a.m. at cnbc. here's your top five at five why your next guest says investors will not hold their breath for all time highs. sector that prepared for the worst of the pandemic surging. we'll tell you why and the names to watch the shake up amid the on going crisis a 4,000%