but at the end of the day, we only need to answ one question... crank her up! aah! do i love it? see, this is every kid's dream, driving one of the cars from "fast and furious." yeah, i do. good morning, everybody and welcome to street signs. european equity markets open in the green on the final day of trade for the month while the s&p 500 looks set to have it's best august in 34 years. shares surge as they look to buy almost 30% stake in the french utility firm ahead of a full takeover offer order halted shares fall after the u.s.

cancelled the majority of the ventilator order causing them to cut the earnings outlook and new rules. the sale of tiktok u.s. operations could hit another road block after they tightened regulations on technology exports. well, happy monday everybody. let's run you through how we're trading the last day of ugust.

over the weekend renewed focus on u.s.-china tensions as tiktok stands front and center beijing looking to assert itself place in what happens to the tiktok u.s. operations potentially in the works for president trump after his order to either shutdown operations or sell the u.s. operations within 90 days. that was the deadline set earlier this month let's take a look at the dax and how stocks are trading in the german market. the majority of stocks are trading higher we have very decent gains in the auto space trading 2.4% higher. so a decent session coming here.

and it's up 3.5% and dax has been up 5.8% let's take a look at how the session went overnight you have red on the board. the shanghai composite down about a quarter of a percent chinese data is out showing that the august manufacturing pmi came down to 51 flat that was versus 51.1 in july gaining more than 1% after taking a tumble on friday due to news of shinzo abe's resignation due to health issues so some of that provided support for the broader u.s. markets let's take a look at how we're standing to open on wall street. the dow looking to open 80

points higher if the levels hold >> let's get a check coming into today's session on the month the s&p 500 up 7.3%. that's on since 1984 so a strong performance for the s&p. the dow, an even stronger performance for this market. 8.4% and also on pace for the best august since 1984 and we know that tech stocks have been the main driver of the gains that we have seen in the u.s. and apple has been a strong performer within the tech space.

17% higher for the month of august and we're bracing for apple shares to open up after the 4 for 1 stock split so part of the optimism coming on the back of the underlying performance on the business and expectations for how earnings will progress in the future. also excitement about the stock split and not changing anything fundamentally. the economic recovery will be slow the comments came after the fed chair announced the central bank will allow inflation to overshoot it's 2% target in a business stimulated economy. they did acknowledge that equity markets are inflated >> i don't feel like right now that we are ingendering an asset bubble i do feel that we're supporting the economy and doing what we

can to make sure that financial markets continue to function and that there's flow to households and businesses we're looking at issues as we monitor policy going forward yes, stock prices are elevated and you're right to point that out. meanwhile, the st. louis fed president shared his expectations. >> it's right below target by half a percent for quite awhile. the idea is to cement the target because you want that credibility all the time that's a key aspect of central banking and i think that this lower bound or zero lower bound is dragging average inflation down overtime. >> he's the chief economist. great to have you on the show

again. we were just going through some of the monthly market moves. both european and u.s. markets trading strongly but europe continuing to lag the u.s. what do you pin that down to and do you think the trend will continue the u.s. outperforming europe? >> well, the u.s. does have to some extent stronger stimulus and that is a key factor also the u.s. has big tech stocks which are riding the wave of change toward the digital economy because response to the pandemic this is what we're seeing also in the u.s. we now have the pandemic it's pretty bad there but it's stabilizing where as in europe we have a lower level than in the u.s. going up so all of that does suggest that we may still

be in for awhile where the u.s. performs at least as well as europe in terms of where you stand on markets comes down to where you think we are in the economic cycle. if you think we're late cycle some of these valuations may look tough to stomach but early cycle perhaps you can have a more optimistic take where are we in the economic cycle at this point? >> in the economic cycle i would say we are in the early stages a year ago we had to worry about being in the advanced stage of an aging cycle that eventually a recession would be needed to cleanse us of some successes

but now we are in the early stages of the new cycle. this will not be the sweet spot forever but to some extent as long as the pandemic does not get too bad or as long as u.s. politics don't really take the turn for the absolutely worst until eventually some rebound in inflation will make the outlook more cautious. >> you mentioned the fed so we'll pick you up there. how significant do you think this policy shift is because there's a lot of skeptics that pointed out that yes, it's all well and good for the fed to say they're more tolerant of higher inflation but so far they struggled to hit their existing inflation target so why should we think this is going to translate to higher inflation in reality

basically it formalizes what has been namely that it wants to stay for longer and that it will not be constrained by concerns that inflation may go above 2% for awhile so this lower for longer is a big step forward as to the outlook for inflation at the moment, with high unemployment falling but high and with consumers not going out on spending, inflation is low. then we may have some inflationary measures emerging partly out of some globalization. hardly out of demographic change which means we will have labor to make the pass and we have more physical activism so three to five years from now

the fed may reach it's inflation target above 2% in the future but for the next year or two that's it. >> let's bring it back to these near term developments, specifically in europe the virus now have been tracking higher the number of cases and parts of europe have been tracking higher but encouragingly hospitalization rates were much lower than they were during the initial outbreak fatality rates also ower >> to some extent, from the u.s. experience where we have seen in june and july a massive surge in infection rates well, well above

what we currently have as the average and the rise in medical complications. so far we're seeing the beginnings in europe so let's assume that you're right and we just see a continuation of the more modest measures and we don't see a return of the nationwide shutdowns take place even then, some of the high frequency indicators suggest that the momentum in europe had them slow. at least on an initial return to activity but now things are stabilizing. does that mean that we're likely to see downgrades to economic

forecasts in europe in the months ahead and if we do, how important is that for markets? >> well, what we're seeing at the moment is quite compatible with what we think the partial recovery will be it rebounds fast as supplies switch on and consumers return that has happened in may, june and july we're in the second phase where the initial snap back is over and the pace of the recovery flattens out significantly it's now best by the consumer. consumer spending is going up a little bit much of the loss has already recovered. especially in the shops. we are now seeing a phase of the

recovery that's more driven by the slower pace of industry where they catch up and a significant flattening of the upswing is part of the picture that's what we are seeing and at the moment, we do not yet have indicators which would suggest that recovery would be stalling. >> let's take a look at what's happening in the u.k it underperformed so far in august just about and where do you think we stand on brexit if you can tie that together with your last answer. >> it has the worst experience in the pandemic and secondly, indeed, there is a serious risk that the brexit negotiations will not yield a deal.

so brexit concerns continue to weigh on the u.k we still hope that it will not be a complete rupture. that there will at least be at the end of the year a stop gap merit to prevent it but it indeed looks unlikely at the moment that we'll get the deal that the u.k. needs for its long-term. >> we are about to witness the first commercial flight from israel to the uae. it's due to take place marking a major step in normalizing relations. and there you have live shots from telaviv the plane getting ready for take

off. so a historic day for relations in the middle east between israel and the uae coming back to markets, china's manufacturing activity has expanded in august however the official pmi for the month was slightly below july's number and missed expectations. four straight months in expansion in part driven by government stimulus measures. >> official data out of china is consistent with the first in and first out story that we have seen over on the land. we did see severe flooding and rain and still and at the same

time global demand has been recovering away from the factory floors, though, driven by domestic demand and the services sector is a big generator of jobs in chuy ma but ithas been much lower to recover so this did offer a bright spot in terms of the recovery story and particularly after they reported their biggest profit forms in at least a decade really underpinning the impact of the coronavirus pandemic on the financial sector in china. four out of five of the banks say they increased their

provisions for bad loans which of course comes after we saw that push to help struggling businesses the bank of china did talk about the lagging impact of the epidemic and the risk of uncertainty. japanese prime minister shinzo abe's unexpected resignation on friday triggered a succession race. the liberal democratic party will hold an election on september 14th to decide who will replace abe the winner of that contest has been likely to gain the

premiership as they hold a majority they include the long time ally. and he's one of the most lively candidates on social media the newly elected prime minister will hold the post until the end of abe's term in september of 2021 shares of japan's five leading trading stocks are higher after berkshire hathaway bought a nearly 5% stake in each company. japanese trade giant itochu corporation hit a new 52 week high today berkshire says it plans to hold the investments for the long-term adding it may increase holdings in any of the stocks up to nearly 10%. coming up on the show, the fda chief says he is willing to fast track the approval of a coronavirus vaccine before trials are finished. we'll have more details on his

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welcome back to street signs. global coronavirus cases surpass 25 million the country added 78,000 new infections taking the total number past 3.5 million. meanwhile, the united states is fast approaching 6 million cases as several states in the midwest reported a surge places like iowa have seen outbreaks after allowing students to return to university campuses and in europe, the u.k. has reported over 1,700 new cases. the highest level since early june this comes as children physically return to schools over the coming weeks and in most cases for the first time since march. fda chief stephen hahn indicated he could fast track the approval of coronavirus vaccine before the completion of phase 3 clinical trials. he would be willing to grant emergency authorization if benefits of the potential vaccine outweighed the risks and here's a look for you at the key

pharma stocks in europe and shares are down 1.3% on trade. they're expected to sign off in a 1.3 billion euro sale to kkr the deal is set to kick start government backed plans which will see telecom italia to work with fiber to develop a network. such a project could be eligible to receive money from the eu's recovery fund. >> violia has submitted a bid to buy a 29.9% stake in it's rival

suez the 2.9 billion euro offer is a prelude to a full take over offer which he says has an enterprise value of 20 billion euros. we have seen a massive jump in shares this morning now up nearly 20% engie also getting a bump up 6% and veolia shares out to 6% higher charlotte joins us with more on this deal. walk us through the tstrategic rational of combining the two companies. engie owns a 32% stake in suez and also 29.9% so now it's a cash offer 15.5 euros for suez shares

evaluating 2.9 billion euros before they were reviewing the asset and wanting to focus on its energy business so now it's interesting to see them approaching to take on suez. it's been talked about before that in 2012 because of overlaps in the french usiness. so that would be the main overlap. in the waste business and management part of this there's very few overlap and so many players in europe. and there's no overlap so they

hope once if this offer is accepted they could complete this merger in 12 to 18 months so now keeping an eye on jobs being maintained with making sure that they're looking at this offer being put on the table ow and having it's best day ever. 5.5% and up 3.5% so all in all positive reaction to this ofr.fe the pe

we'll cross live to china for the latest at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

ahead of a full takeover offer and new rules. the sale of tiktok operations could hit a new road block after they tighten regulations on technology exports

>> let's get a check on how european markets are trading an hour and a half into the session. but the markets that are open are trading firmly this orning and also marks a decent closing to a month up 3.5% coming into today. some divergence in terms of the performance across the region. the german index is leading the way higher on the month up about 5.8% coming into today's session. let's get a check on u.s. futures and how we're posed to open on wall street. we are across the board here as well fairly muted in terms of the

magnitude of the moves higher. the dow jones at 90 points higher the main event this week for u.s. markets will be the payrolls report due on friday hopes of divesting assets had them set back after they tighten export restrictions t. new law means the potential deal may require beijing's approval what does this mean for the potential sale of u.s. on rat

operations of tiktok is this deal now in jeopardy >> well certainly in the works at the moment. china has amended the rules so they added new technologies on to a list that requires licenses in order for companies to export the technology outside of china and one of the technologies added to the list is around data analytics regarding personalization and recommendations. essentially, recommendation algorithms which is what the whole business is based on right now and after that was passed late on friday, the state backed new agency published a piece over the weekend with a trade adviser. that commented that bytedance is likely to fall under the new

regulations. they managed to catch up to discuss what some of the companies might mean with a potential tie up with tiktok let's look at what they have to say. >> you look at the various players and partners that we're hearing from they're amazing tech companies oracle has its strengths in terms of being a leading data infrastructure company and microsoft as well. great security and privacy platform as well as everything they're doing in cloud so yeah, amazing reputable companies.

>> back to your initial question about what this means for the deal going forward it's really hard to assess china's intentions right now this gives them potential and i does have ammo to hit back at that it adds another layer of complexity to a very fast moving situation. >> thank you for bringing up the latest always great to have you thank you for sticking around for us our next guest says it's seen it accelerate dramatically in

europe so for years it feels like europe has lagged behind china and the u.s. when it comes to technological innovation there's no tech giants in europe the way there are in those two power house economies. is that going to change any time soon >> first of all i would say it's one of the largest software companies globally almost the $200 billion valuation in europe and what we have seen over the last few years is that more and more global software companies are originating in europe just in july a company had it coming out of right where they used to have big tech companies emerging from

and that's just one of the examples it's grown in less than three years and it's a company that continues to grow and the customers are very large enterprises especially in the u.s. and that's something where we have seen a lot more lately where european originated companies have ambitions to broad array of enterprises across the u.s. and europe.

>> andre, before you joined us, i was just speaking with our colleague about the latest in terms of u.s. china relations around tech and all the tensions that have been building there in that relationship. if we do see the u.s. and china further decouple or move further down the path of decoupling when it comes to internet and the digital world, where does that leave urope? second we see a lot of european companies have started growing it's serving only german and

french customers and we see that transformation that's underpinning a lot of the growth in the u.s. coming to europe as well and we can expect more and ther are a number of major industries where europe has lead the way in the past to what extent could that help those industries now working to improve their processes and reclaim their position as pioneers of their industries to what extent could that help the european software companies and other digital companies gain clout themselves >> that's a really interesting point. we're seeing that on one hand the improvement and indeed the

traditional industrial settings as well as the strong r and d expertise that you have stemming from any other european universities sprinkled across the continent. and they're working very closely and we're seeing more and more of these marriages between traditional ones that tried to work more closely with starbucks to optimize the business and, in-turn, enable these young companies to get fuel and grow. >> i noticed in your notes that you made note of how moving to a fully remote working environment

over the bulk of the pandemic is in europe and the u.s. >> basically, and you cannot really afford ignoring the u.s. markets. and set up the company there and also it's not always easy to manage a firm with a cross continental presence and many have been more accustomed to buy from vendors remotely and that makes it very easy so you have many european

companies who sell just as well into very large enterprises. and so it's great that they have access to the global market seem lesl le lessly. >> thank you coming up on the show, nestle makes an offer to buy food allergy prevention expert. we'll speak to nestle health science ceo next

♪ ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. i decided that i wanted to go for electrical engineering and you need to go to college for that. if i didn't have internet in the home i would have to give up more time with my kids. which is the main reason i left the military. everybody wants more for their kids, but i feel like with my kids,

they measurably get more than i ever got. and i get to do that. i get to provide that for them. nestle has announced it will be looking to buyoutstanding shares it is offering to buy the remaining 74% of the california based company as it looks to expand it's health science portfolio. it's known for developing treatments at $2.5 billion

you have been building up your stake for awhile now talk us through the strategic rational of buying this business and integrating it into nestle. >> wonderful good morning and thank you. well, listen, it is already a global leader in nutrition and health and it's one of the most basic companies in food allergy and through this acquisition we are creating a global leader and it is the only approved treatment for food allergies in the world and more than 1 million in sales which will come

through the 5 of 6 years through the update post launch and this is food allergy and specifically peanut allergy which is very impactful for our patients we're very confident about this deal as it will create an amazing opportunity. and multiple steps of investment throughout the last five years we own already about 26% of the company and so it's a great opportunity. and it is a high performing

company within nestle. we are selling at about 3.3 billion. growing double digit in 2021 have done significant deals in the past three years and why nestle may be known as a chocolate and coffee company, this acquisition is a prime example of how nestle diversified it's portfolio the food allergy space is a perfect example of where food and science come together to help millions of people. >> on that note, clearly this does add to the diversity within nestle as a business what does that mean for synergy? where are they going to come from >> most of the synergies are gross. so we expect our current portfolio will draw through the acquisition as we combine our

sales forces throughout the world and also research and development. we are the leader in nutrition and health and combining the science and research of nestle with therapudics so really top line is the biggest impact it's the first and only fda approved treatment to reduce the severity of the reaction to peanut allergies what's the time frame and what's

the geographic plan. fda approved what about other geographies. >> as you mentioned it's in full roll out in the united states. the launch was in marchand we're looking at currently progressing to review in the european union. this should conclude toward the end of this year and we're looking at launching early 2021 in europe. switzerland is also supposed to follow through in 2021 early and then what we'll continue to do is through a process called mutual recognition we'll launch everywhere in the world following those. >> i understand how this treatment will be used should we think about this as an end game for sufferers of peanut allergies? or is this sort of a bridge to eventually coming up with a treatment or drug that actually

cures people of a peanut allergy? >> it's certainly an important step as i mentioned, this is the first ever approved treatment in peanut allergy it's an important step and we do believe with this technology and additional projects we have there will be further innovation and excitement for a patient suffering from peanut allergy. this could be extremely impactful for people's life and also requirement emergency treatment and on top of that, the technology they have combined with nestles r and d we do see opportunity for other patients suffering from other food allergies and so on. >> really appreciate you joining us this morning. the ceo of nestle health

science. let's talk about what's happening state side president trump visited louisiana and texas over the weekend to survey the damage caused by hurricane laura. the storm killed at least 16 people and caused as much as $20 billion in damage. the surge has receded and clean up efforts are underway. but hundreds of thousands remain without power or water a situation that could last for days or possibly weeks. >> after a week of protest and days after the republican convention president trump will visit wisconsin where jacob blake lies paralyzed after he was shot 7 times by a police officer. it set off demonstrations across the country including a deadly shooting saturday night in portland the mayor there says the president is to blame for the violence alice barr joins us live now from washington d.c. talk us through how the demonstrations have evolved over the weekend. there's a lot of attention on the violence that have broken

out and hurt the u.s. but where do the actual demonstrations stand. >> in the final weeks before the election and after this weekend the violence that we saw both president trump and joe biden are hitting the campaign trail biden will be speaking today in pittsburgh and tomorrow the president is heading to wisconsin. as you mentioned, that is where jacob blake was shot by police 7 times in the back. the details are still under investigation but that has really marked a new phase in what has been a summer of protests across the country. there was a deadly shooting that spun off from the peaceful protests that have been going on there. now this past weekend another incident in portland, oregon this time it was a right wing. a man affiliated with a right wing group that was shot and killed and this happened at the same time that supporters of the

black lives matter movement were clashing in the street with supporters of the president, of president trump. so again the detail is a little bit unclear but certainly we're seeing this new phase where what had been peaceful protests has been allowed to spill over into violence in the streets and that has become foughter for the presidential campaign. president trump is holding true to his law and order message they have both asked him to stay away and he could potentially insight more incidents on the streets. he is insisting that he will go there and calm matters back to you. >> thank you for joining us. >> now i want to take you to u.s. futures and mention that the s&p 500 looks set to have the best august in 36 years.

the number is 36 on pace for the best august since 1984 and it looks as though today, the final day of trade is going to kick off on a positive note. the dow jones looking to open nearly 100 points higher and th tech heavy nasdaq as well. leading the charge up 8.8% that's it for today's show thank you for tuning in. worldwide exchange is coming up next while i was in the navy,

i decided that i wanted to go for electrical engineering and you need to go to college for that. if i didn't have internet in the home i would have to give up more time with my kids. which is the main reason i left the military.

everybody wants more for their kids, but i feel like with my kids, they measurably get more than i ever got. and i get to do that. i get to provide that for them.

it is 5:00 a.m. at cnbc global headquaters and here are the top stories. >> wall street looks to wrap up it's best market performance in 30 years with the markets hovering at highs. >> warren buffet making a big bet on japan as berkshire hathaway takes stakes in five major companies there. they look to keep the bear momentum going, going and going. it's monday, august 31st, 2020, you're watching worldwide exchange right here on cnbc.