so he is. craig melvin: that's all for this episode of "dateline." i'm craig melvin. thanks for watching. [music playing] welcome to "street signs." i'm julianna tatelbaum these are your headlines back in contraction. spanish and french manufacturing activity falls below 50 while germany and italy manage to ink out another month of expansion the best data in nearly a decade china expands and new orders

rise chip makers rally as apple asks suppliers to ramp up chip production cnbc learns bytedance has chosen the u.s. bidders. a report beijing may need to approve any deal a very warm welcome to "street signs. we have been digesting fresh manufacturing pmis this morning. we have heard on individual country basis already. we are awaiting the eurozone number you can see the euro has been holding firm it has been a little bit of a mixed picture with france and spain slipping into contraction.

germany and italy have held firm above the 50 mark. based on indicators, investors were expecting a little bit of t final manufacturing pmi in line. the mix of different countries coming together that means the overall region has come in line with expectations. not just europe but we got chinese data overnight and has expanded in the fastest rate in almost a decade. thanks to a rebound. the survey came in at 53.1 in august the fourth consecutive positive month. i'll give you a check on chinese markets and take a look at how the trading session is there

the tech heavy session to outperform some of that positive momentum to create the back drop this morning. filing this report >> this looks at the smaller and medium sized firms and the smaller than expected number for august does add to signs that china's economy does manage to bounce back. this survey does show the activity was given and grew for the first time this year as global demand has been picking up as we reopen other economies around the world that has prompted manufacturers to step up production to meet this demand in the month of august this does conflict with the official pmi numbers we saw out

of the main land that activity did grow at a slower pace and the flooding would take a hit to production this may mean smaller firms are recovering still, both of these pmi numbers did show an expansion above that 50 mark suggesting these things are picking up showing jobs or signs of improvement ramping up to meet some of these needs. hinting that employment may be close to a turning point we know these things have been in focus the government said the expansion of jobs does rely on longer term improvement as well as support especially when there is uncertainty in domestic and

overseas this did remain strong for the month of august. there are concerns in china about the longer term affects of the pandemic in sydney, now back to you >> let's get a check of how european markets are trading a little bit of a mixed picture. we do have overall green on the board for the main benchmark up 0.2%. coming off the highs of the day. yesterday was a down day, the uk was closed for the summer bank holiday. those markets that were open, the dax fell, the cac 40 fell under particular pressure. we have the dax recouping the losses up 0.75%. the cac 40 lagging today and in italy, the mib up about .6 that index down about .7

perhaps catching up with the selloff we saw across broader europe yesterday let's look at the yields and bond trading we have divergence on the board. italian yields trading lower we did get some better data out of italy manufacturing holding up better than spain, in particular. the recovery we are seeing take place across the region, otherwise, we have yields across europe the bund negative 1.30%. to our guest this morning, i'd love to get your view. a lot of the segments are beginning to stall, losing that positive momentum we saw this

summer what is your take? >> after this uniform slump we are seeing during q 2, we are seeing the uneven recovery the real time indicators we are monitoring are pointing to some upside risk for growth forecast are we likely to see this recovery or differentiation or even accelerate here >> across germany more fiscal space is benefitting from this

then we have the eu recovering here this will help all and the periphery companies. weighing in and he expects inflation to continue falling but sees some kind of rebound in 2021 also making note of how the recovery is uncertain and uneven to the point we were just discussing what do you think he's preparing the market for in terms of reaction in september? i don't think there will be larger scale policy changes but

we have seen new faces of the crisis and the purchase patterns could be adjusted there could be more technical issues that could become quite relevant for market pricing. >> the make of the impact. do you expect that to have any direct implications, are they bound to follow the fed's lead eventually >> they are not bound to follow them but i think they will find it difficult to move in the other direction. they should also consider an average inflation target as the fed have it. the ecb is behind the fed and the signal can be quite relevant

when it comes to pricing inflation markets and real yields in the u.s. and europe. >> looking at the work, there is a lot of excitement. what is the appetite based on your experience with clients >> there is a lot of money flowing into green assets struggling to find enough supply for the new green mandates they are receiving. it will be interesting to see how the deal grows with the bond concept and at the same time, it is a german bond offering the lowest yield.

that is for the negative yields germany will be offering the ecb has set that they are keen to increase with a lot of alm and looking for core assets. there is limited supply in the way they will lunch the new deal there is also some protection that will not turn negative and the prospects are quite good >> in terms of the negative rates, i'm sitting here looking at the bund. where do you see them trading at the end of the year? >> our forecast is minus 0.4, so not far from where they are

right now. any increase in yield will be a better buying opportunity to add duration >> one of the main topics across asset classes has been the dollar weakness we are seeing. we are seeing the further weakness what will be the main driver on the other hand, we have pressure on the dollar >> probably more relevant, the dollar weakness and the new fed strategy where they are trying to pushup the inflation

difference as they are looking for the euro level for this year >> thank you for joining me this morning. head of research at commerce bank >> coming up, tiktok could announce the preferred suitor for the u.s. assets as soon as today. we'll get e te fm inthlastrocha next

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welcome back to "street signs. the eu has earmarked billion euros. with a focus on low to middle income countries the allocation of funds does not yet confirm whether the block countries will receive doses through the schemes or separate deals. in japan, the health minister has announced its intention to

participate. so japan will be using that facility to get vaccines for their country. it remains to be seen what the commission will do in other health care news, gsk have begun testing the antibody treatment or early stage covid-19 treatment a single-dose shot that will block cells. competitors roche and eli lilly expect to share theirs later this month sanofi phase three trial of the treatment shows no improvement. the drug maker said at this time, they will not be entering the drug to further study. this shouldn't come as a major

surprise given their partner revealed similar findings in july this is sanofi weighing in on trials outside of the u.s. astrazeneca in focus today in the u.s., 30,000 adults will be given the potential inauk u lags already in final stage testing in the uk with preliminary results expected shar shares trading .4% higher this morning. maersk announces major restructuring. siemens to announce a spinoff. more than half will be

automatically linked to group share holders on the 28th of september. now joining us with more talk us through how the spinoff through the broader strategy and this unit that is set to spin out >> it is a natural step to spin off the energy business. we've seen a successful spin off with health care business where they made the big acquisition in the state for siemens using the balance sheet to be able to actually finance the deal the same is now going to happen with siemens energy in that part of the business and to restructure that part. the new ceo makes -- they are

not hiding to boost profitability and make more cuts aggressively they have to realign the processes which means cutting down on production locations that is a deviation from the strategy that still has the location and guarantee in place with the trade unions. he owe officially declared that they are taking on that policy there is no stone, which is not going to be turned in order to boost profitability. take a listen to what he had to say in our interview about the future outlook and how we'll see that pan out >> in the focus and helping customers to a more sustainable energy world we'll look at all ends on the

performance. no question. i'm not satisfied and the company, we are working on this. we started a year ago to trigger the performance on the coast base we are continuously looking into this and about driving innovation which serves future energy markets from the stability. finding a highly efficient and these are the things we are working on and what we want to drive. >> today is the capital markets day and we'll get more information at 11:45 cettime and what the markets look like and what they mean when they say they want to boost profitability. investors need hard figures in order to make up their mind. one thing is clear that

september 28 is cast in stone. that's the day when the siemens energy will go to the market shares in tiscali are surging after it finalizes the plans of nationwide fiber lines. the operation is set to be completed by the first quarter of next year shares in european chipmakers go higher apple has plans to build 75 million iphones. similar to 2019. a sign the demand is holding steady the work from home trend is driving demand for ipad and mac computers. south korean prosecutors have

prosecuted jay y, the leader is facing charges of the merger of two affiliates this means the case will go to trial. they call the claims unacceptable and unjust but will appear at the hearing. cnbc has learned tiktok has chosen a preferred bidder and could announce as soon as today. an agreement could require backing from beijing after tightening the export laws last week arjun, give us the latest. it sounds like your sources are telling you today could be the day? >> reporter: you've got two front runners. microsoft and walmart and then oracle bidding it out for tiktok the thing that clouds all of

this and complicates it. the new export rules that came in on friday in china, they require technology related to tiktok to get a license in order to be exported over the weekend. there was almost commentary and meeting that any kind of sale would require transfer over to the u.s. and that would fall under the export restrictions that means tiktok could have a say in how this plays out in the end. it's unclear how much power they could exercise, i doubt it could look to skoperring it may not be in its interest because of the september 20 deadline. tiktok could be banned in the u.s. that could affect its valuation and the parent company,

bytedance as well. you've got walmart and oracle on one side it raised eyebrows because it doesn't have that history. you've seen microsoft dipping its toes into technology and the focus on cloud walmart pushing the side of business around e commerce it is not cut and dry yet. back to you. >> thank you for keeping us up to date. shares in zoom surged over 20% after the conferencing app comfortably beat earnings. raising full year guidance more than expected. zoom had over 148 million average users. up 4,700% there.

we'll speak to the zoom ceo coming up. students return to school in france as coronavirus cases continue to climb. more after the break

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welcome back to "street signs. i'm julianna tatelbaum these are your headlines back in contraction. spanish and french manufacturing activity falls below 50. germany and italy manage to ink out another month of expansion chip makers rally on the report apple is asking suppliers to ramp up chip manufacturing. cnbc learns bytedance has chosen its u.s. preferred bidder after a report beijing will need to approve any deal. zoom shares soar after

revenues jump over 350% on surging demand for video conferencing software. we are just awaiting, the uk manufacturing numbers for august this will be the final data point for manufacturing pmis we've had the euro numbers come in we have the uk numbers crossing now. the august final numbers come in at 55.2 just shy of the estimate of 55.3. sterling trading quite firmly up 0.4% we've gotten the euro as well that may be driven by the dollar side of that those two equations driven by

the green back the uk factory seeing a big up turn from august companies report the current bounce is mainly driven by the restarting and reopening of clients as covid-19 restrictions continue to be relaxed backlogs of work hinting at capacity with job losses registered for the seventh straight month that's a lot of collar and a solid number 55.2 for august. broadly in line for estimates. those numbers decent from what we saw out of spain and france those numbers slipping out of contraction territory. the cac 40 has crossed into negative territory down about 0.2%. the dax about 0.4% higher.

markets have taken a turn for the worse. we were looking at strong gains. the ftse 100 is lagging now. a little bit of a catch up trade as uk markets were closed yet when the broader markets did take a step lower. let's get a step more broadly looking at the euro and the pound trading firmly the dollar weaker versus the yen as well and the swiss frank. the story today seems to be a dollar weakness. u.s. u furs what are we looking at as the trade on wall street the nasdaq looking at 100 plus points at the open the nasdaq saw a fresh record close. nasdaq saw the best august of 2000 plenty for the month of august it looks as though that momentum

will continue for the first morning of trade in september. let's get a check on the latest. coronavirus cases were on the rise across the united states in terms of a slow down in florida, california and texas cases are up in 26 states compared to 12 states just a week ago according to data compiled by johns hopkins university world health organization says it supports the opening of societies but must be done strictly >> the stay at home orders was something they needed 20 do. but they have taken a toll on economies and mental health. w.h.o. supports efforts to reopen economies and societies we want to see children

returning to school and people returning to the work place but we want to see it done safely. at the same time, no country can just pretend the pandemic is over >> children in france have returned to school as the country sees its highest monthly increase of new cases since the beginning of the outbreak. talk us through the measures being taken in france as the country tries to grapple with rising case numbers. >> today, you have 12.4 million going back to school they did go back a little bit at the end of june. now they are going back with full classes there could be up to 30 children all children above 11 years old will have to wear mask as well as all adults. in secondary school, all

children will have to wear masks. for that moment, that is the measure put in place smaller groups would be put in places in regions where the epidemic gets growing. we've seen this up tick in numbers and 3,000 new cases yesterday and where we've seen 5,000 new cases and over 7,000 new cases on friday. there are questions on what the return will mean to the epidemic a mass in all working places in france for today this morning, the labor minister said the companies have about a week to adapt to the new rules and new measures the latest one to impose masks

everywhere including in the street and public places in paris and marseilles they already put in these measures. they have the power to impose in the regions and saying they would do everything they can to avoid the restrictions the health situation are getting worse. it is younger people some of them without symptoms that seem to be making the greatest number of these cases we've seen long queues in labs over the weekend and people getting tested there is a big bulk of people trying to get tests. there is an uptick of people in hospitals in france and icus up from yesterday. authorities keeping it under situation and hoping the

epidemic won't reach the vulnerable part. this week being the big test with all going back b to work and school >> thank you for the detail. let's take a look at travel stocks and how they are reacting we got a lot of red on the board. iag and rye yan air lower. carnival is lower. not a lot of appetite this morning for travel and leisure stocks moody's found europe's travel found more in the south, movement to the country's health profile will help mitigate the risk great to have you with us. we are hearing from our correspondent who cover france and spain telling us about the rising numbers there when you look at the revolution

of the outbreak in recent weeks, how concerning is that for you >> we are already expecting growth numbers across the world are going to be significantly worst this year. one of the things we've looked at in this report is really what ongoing health concerns can do for tourism in these countries we expect significant declines in tourism this year it will be a couple of months before the final verdict on this we are looking ahead to 2021 we don't expect the industry to make a full recovery but thinking about which countries are more vulnerable recovery is quite important for their growth profiles next year >> when you talk about those countries that are particularly

vulnerable, which countries are you citing here when it comes to vulnerableness to the virus? >> the countries most exposed border the mediterranean or atlantic portugal, speain, cypress, croatia, italy from a rating perspective, i should also stress three of those countries we've highlighted have positive outlooks we have a positive outlook on portugal, cypress and croatia. they've done a lot to bolster their credit profiles.

>> we know governments were quick to offer support to the most vulnerable industries how effective have governments been getting money to the countries that need it >> one of the things quite important about tourism, it is labor intensive. all the measures we've taken to support employment is really important. one of the things from a rating perspective is not the short-term impact but the long-term impact the economic scarring on the labor market and the impact on public finances. these measures do come at a substantial cost to the public first. >> when we think about the future, a lot of bullish

investors are pinning hopes on the game when it comes to international travel what is your stance around the introduction to new measures that will enable countries to allow travel and rid the need for a 14-day quarantine that will rid the country and carry on over the last few months. >> thinking ahead to 2021, we think it is likely that consumers linking concerns about health and safety, whether there are quarantine rules and the economic down turn while we do expect that the down turn should be significant, we should expect an up tick in unemployment all of these will hold back in recovery of the industry >> of course, the mitt gants you mention is that they have a

substantial domestic tourism for the market if domestic tourists are under pressure because their jobs are at risk, that puts pressure to some degree. >> yes in this particular case, we expect employment in italy to decline. in other cases, in the uk, we expect an increase in unemployment next year because of the supportive measures from the government rolling off and we'll see the true level that has been masked a bit by these schemes. >> sara, thank you for joining us this morning. coming up on the show, water fight. french waste and water company raises concerns. we'll speak to the coo of veolea mi unext

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french waste water management has faced concerns of

a takeover attempt by veolia saying such a merger would come with certainties and distrust. charlotte is also with us for the conversation thank you for being with us. suez has rid out their confidence as an independent company saying this deal would generate dissinger gis and loss abroad what is your response to their comments i'm ve >> i'm excited to create the services the moment has never been better the momentum is there. the general public, as you can

imagine, wants this kind of solution the trends are everywhere. the eek logical urgency has never been higher. as you can see from the stimulus across the world we have a unique opportunity to create the world champion. >> how do you propose getting this deal across the line if suez is saying this. clearly, they are concerned about this deal. this project and value creates share holders which will allow

because we'll offer the large solutions for all the problems we might face. for the clean solution that might be more sustainable to us. size matters as well we are highly competitive market. it is a huge market and fierce as well. we want to join forces to build more solutions for the batteries. we don't have full solutions

investing even more. the market is huge we have to use to join forces and the siesz even more. >> standing at 15.5 and the 50% premium before they announced they were reviewing the activities that was about 12 euros on friday how confident are you that the offer can stay at this price and to rise the offer? >> i'm very happy you've mentioned those figures. 50% premium under the share price and 30% from last friday this is a very good offer with valuation from everyone. just to answer to your question,

the positive reaction from the market is that the testimonies from this project makes perfect sense. >> this take would cost you about 3 billion euros. if that total merger would go through, that would cost you about 10 billion euros how do you plan on financing that and how is that on the cards? >> all the options are open for the overall transaction and the first 29 will buy it with just our cash as far as the rest is concerned. we have various options and we'll decide later on. we are absolutely confident in our investment grade rating.

our question for the holders, so there is a question from our one, the double digit one from your two it is a very good deal for everyone >> i want to ask about the synergy numbers you would propose after looking at 500 million euros and purchasing are we going to see any layoffs? is that going to come in the form of job cuts >> that shot now is no impact on jobs that is really about sharing best practice. we share the same values and professional

so purely cost synergies and no impact on jobs >> in terms of antitrust potential. i know you've done a lot of research already into what those concerns may be. you've isolated the buyer into one of the main potential concerns are there any other potential concerns the u.s. should be aware of you are very right, we wanted to think through potentially all of the hurdles because we want to give the maximum chance of it happening. antitrust wise, outside france, we've identified almost no overlap. very limited one it is very tiny number of situation and as ets we would have to sell in france, you are right

we've identified some antitrust issues we've thought about the solution to remedy them including the sale of the water business which is the long-term infrastructure, which gives all the guarantees that it will be still very high level of competition in france in this sector >> the merged group would have about 5% of global market share. outside the euro, which you have identified, have you identified the area which they would be able to expand in particular >> i guess, you know that footprint is almost the perfect

match outside of france. that's one of the reasons why we are so excited as well about this this will help us to accelerate our international growth meaning outside of europe. in particular in the u.s. and in south america, asia as well. we have a lot of opportunities and putting our forces together that would allow us to accelerate the growth. a lot of opportunities including in the u.s., for instance. >> thank you for joining us. i look forward to hearing more from you as this situation progresses coo of veolia. it has been a big morning for data facting pmi moves back in august in italy grew and output in

germany grew at the quickest pace since 2018. the german government is expected to upgrade gdp this year according to reuters and german media reports economy minister is slated to announce the new gdp estimates today at 11:00 cet also looking at 2021 forecast. they are expecting a bounce back according to german media reports, we are looking at a slightly weaker growth in 2021 but not as severe contraction this year. we'll keep a look out for the german economy ministers u.s. futures, let's look at how wall street is posed to open the dow off to a weaker start. moments ago, we had green across the board. the dow slipping as you can see, slipping into

negative territory the dow holding up the nasdaq yesterday hitting a fresh record close it was a mixed day dow jones transport index underperformed we are coming off a very strong month. the dow seeing the best august from 1984, s&p siege the best august since 1986. the nasdaq, the best august since 2000 it looks like they'll continue the gains. it looks like it will be a difficult morning. we'll leave you on that note goodbye from me. "worldwide exchange" is coming up next. stay with cnbc give you my world ♪

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here are your "top five@5" could september usher in a wave of turbulence. kicking off astrazeneca and the next round of covid-19 trials and we continue on the tiktok watch as it reveals its preferred suitor the aluminum boom. pric