that's all for this edition of "dateline." i'm craig melvin. thank you for watching. good morning welcome to "street signs." i'm julianna tatelbaum these are your headlines european equities fail to hold on to gains and u.s. futures eek as president trump pledges to end america's dependence on china once and for all >> it is called key coupling, so you'll start thinking about it

stocks weighing down other airline stocks as the low cost carrier ditches its guidance and says it will fall below 40%. investors satisfy their thirst and hong kong water giant and shares go 80% higher from its listing price. a warm welcome to "street signs. let's kick off the show with the european commission president who is speaking now with changes to the european commission >> translator: this experience is crucial for ensuring the

solution -- >> so speaking there and announcing that mqguinness has been named as ireland's new eu commissioner let's get more context we knew ireland had nominated two different people to take up this post after phil hogan had redesigned after breaking quarantine rules what can you tell us about the decision to go ahead with mcguiness. >> it's not a surprise they were key to ensure the 50/50 balance and this allows them to achieve that

mairead has been quite vocal when it comes to brexit as well. this is an important change that is happening right now and the european commission. happening now, we know they want to do this quite swiftly and fast because she wants to avoid further stability particularly at a time when they are dealing with coronavirus and instabilities in neighboring intentions between greece and turkey so there is a lot on the table in the european commission and they want to get this done as soon as possible having said that, this name still needs to be approved by the parliament in the coming weeks. the fact that she has been working there could help her get approval by colleagues so she

can move to the commission in coming weeks let's see how this new commission will work in the coming weeks if von der leyen updates her policy it is important. we hear from the president saying and outlying and developments on policies and trade and comments about ongoing brexit negotiations. >> thank you there are two crucial announcements that have come out. one that mcguiness will be taking over in the irish commissioner place and the other is the trade portfolio and whether ireland would be able to

retain they went ahead and named dombrovskis has been named to take over the trade commission what is your take -- i know you've been following everything in brussels in so much detail of dombrovskis taking over this trade deal >> we know they wanted to keep that trade portfolio phil hogan, the commissioner that left was a member of the epp family and through distribution, the epp got that very important subject trade that was also a key demanding away was to retain that portfolio, from the team that is

currently in the european commission, he's also a member of the epp, from that point of view, it makes sense to keep that with the epp member to avoid any further tensions with the political groups it is a very important portfolio we need to monitor in the coming months and years we mention the trade relationship with the united states and phil hogan made progress on that front that is going to be the challenge going forward. he is not new in the u.s. politics he also served as prime minister and has experience in talking trade with other countries prac perhaps that could help him in this task. he's also one of the most senior officials and is currently executive vice president along with two other names so giving the trade portfolio to

the commissioner and the executive vice president is giving further weight to this important portfolio. >> thank you for interpreting this news. we appreciate it >> let's get a look at the markets now. a mixed picture. generally negative, we are seeing a european retreat. we did see equities bounce back after the down turn we saw last week today, we saw the dax, the cac 40 and the ftse mib trading lower. yesterday, the ftse 100 outperformed let's look at the sector the best performing parts this morning, real estate up, banks up as well overall modest gains no major moves other than the magnitude we are seeing this

morning. worst performing sector. we've got technology under performing down 1.7% construction down. construction, chemicals and industrials as well. to put these into context, we've got gains for autos, oil and gas, and utilities that gives you a sense of how we are trading. it does give you a strong sense of how we are trading. president trump has raised the idea of decoupling with china claiming the economy would not lose out if the two economies were less reliant on one another and argued that the move would bring jobs back to america. >> china is using the money we bring them to build up their military when you mention the word

decouple, it is interesting. we lose billions of dollars. if we didn't do business with them, we wouldn't loose billions so you'll start thinking about it >> japan's secretary sugar has kicked off his leadership campaign suga is the current front runner to replace abe said he would expand coronavirus testing capacity and push for protection of jobs, businesses and exports. he also confirmed he would stick to the economic policy set by his predecessor. japan's economy has suffered the worst post war economy grappling with the impact of coronavirus an cap pal expenditure and household spending wages fell for the fifth consecutive month. they get ready to elect the new prime minister with the leadership vote expected to be

held next week senior economist from mizuno bank what is your take on the japanese economy, the outlook for japan in the midst of the worst economic down turn for the first time post war, really. what is your out look for japan. >> caller: it's a very steep gdp. the slide in bounce will be smaller as well. the two do seem to be clearly linked today's household spending result for july was disappointing and probably puts negative downside risk into q 3 consumption estimates. it is probably a little early to go about changing your gdp

forecast nonetheless, certainly at the beginning of july. on the flip side today, we had the economy watch survey of august which suggests it bounced quite sharply and does suggest some of that will be recouped in august nonetheless, the down side risk in terms of policy and the continuity and he will have the same struggles has abe has and it will be difficult to get that up the boj is lose but struggling to find additional ways to ease the policy and won't find negative consequences and additional easing is really only on the cards and the prog know ses for the second half of the year to recover. i skpekd a further bounce in q 3

or q 4, the virus remains relatively muted and that should also help recovery through the back end of the year in the short term, in that basis that is recovering the structural issues suga faces with the population decline. one of the big issues is revitalization it won't be anymore difficult for him. despite the fact that he seems to have a decent bump in the poles and looks that he'll have quite high support early in his tenure >> he has pushed for those policies that abe has pushed where can he deviate in terms of his policy agenda? >> his plan is not to deviate a great deal that has been quite comforting

for markets. that equity declined on the news of the resignation but that bounced back sharply since the markets had become stable. the broad brush assumption is that in big picture, there may be changes and one of the things he's looking at is mobil phone pricing and things like that there will be more efforts other than the big pictures trends that drive bond markets. >> i want to shift gears here. mentioning the latest comments from brpresident trump on relationships with china he wants to decouple from the chinese economy and end things with china once and for all is his comment. markets shrugging this off

what do you expect is this just rhetoric in the runup to the election? >> caller: certainly, the election is on the horizon one of the things when you look at when the trump presidency is analyzed in future years, the main development will be the worstening relationship with china. something he'll have successful and will continue to push that theme for the next couple of months there are some real policy moves behind it as well. i think for me, the market concerns remains that biden will be the new u.s. president in november and consequently, there is less concern attached to trump's comments in the coming months. >> lastly, we are just days away

from the central bank meeting. it has been more sharply focused as the federal reserve will be letting the labor market run longer what are you expecting from madam lagarde and the policy >> caller: i don't think it will be a particularly exciting meeting. more will have more scopes to reassess where they are in the recent rejection and the possibility for increased qe from the european central bank and the bank of england as well. the focus will be on the comments about the risks surrounding the forecast highly likely to be stressed on the down side and any commentary on

the euro from last week. >> thank you for joining us today. senior economy from mizuho bank. coming up, nasdaq hsoft ban 'll called the nasdaq whale wediscuss their tactics after the break. in san diego, california. we've had a ton of obstacles in finding ways to be more sustainable for a big company. we were one of the first stations to pilot a fleet of zero emissions electric vehicles. the amazon vans have a decal that says, "shipment zero." we're striving to deliver a package with zero emissions in to the air. i feel really proud of the impact that has on the environment. but we're always striving to be better.

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welcome back to "street signs. softbank shares struggled for the day after being called, quote, the nasdaq whale. helping to fuel the recent rally. head of research and securities now. i know you've been following the soft bank story for some time now. he's really prided his exiskilln private startups now we are hearing about the public sector

they are following what is going on here in terms of soft bank's strategy? >> clearly in a world that struggles for yield, income and growth, the soft bank portfolio and investment approach needs to look for these returns the asset management arm they announced on the 11th was one of prudent and financial management and prudent and defensive actions were mentioned on the call at the time this would be called as a gamma gamma and potentially wagging of the market would be huge for investors of the stock >> what do we know about the head of the team that was established on august 11

>> so he's been a specialist in investing over a decade now and behind some structured assets for soft bank for which have been successful. looking to sell part of the alibaba holding, the structure product makes sense because you can't indicate to the market, you can't be a big seller of the stock. this is a measure or a bet on the entire market in many respect. it appears the company will make profit from the product or approach, it is not without high risk it is one thing if you like

doing that for a hedge fund. soft bank is not a health fund and not supposed to be a hedge fund >> through these latest actions they've taken and the interest in these tech stocks, it has become one big hedge fund which is strange given the conservative nature of the japanese business that underpins softbank >> in some ways that you have the individual policies around the world and in effect the biggest buyer of apple bonds, then you also have the boj which is the big buyer of structured products and etfs, et cetera, softbank is the third biggest holding in the japan etf as one

example. you could argue that perhaps softbank had seen opportunity that they could take a high risk strategy knowing that they could become too big to fail the ultimate buyer of the stock, if you like, is the world's largest pension fund, the gpif of the japan government, which you have retail investors and huge pension with exposure to the japan market >> if you look at the market as they've shared the story, the shares sold off heavily yesterday. they did continue selling off in their latest session but have recovered some what does that tell you in the way the market was around the strategy shift >> the market is telling you the strategy is at odds with the

communication with the company to the market. as i mentioned before, the literal words from the ceo where that the company was going to adopt the defensive posture and they would have more prudent asset management package for the key scene for soft bank going forward that's why there is concern in the market for this >> the other factor to consider is that soft bank often gets good reactions the outside money coming in on these kind of strategies to the approach because it is all over well againk adjusted and the risk could be

taken into the fund. >> listening to you, it sounds like this could be perhaps pour judgement and has risk we know they were already under scrutiny after wework strategy how do you expect them to react to the news flow around the nasdaq dak whale saga? >> it is difficult to know where your move lies perhaps the next focus will be around where the others will

monday ties. perhaps in the sale on the agenda would deflect on the actions for the moment that is a priced asset without doubt. i see how that could be a great fit for nvidia to be allowed for an m&a transaction to go through and to quite and balance on the strategies. >> what is the time frame for that >> i would expect the transaction to take place within the next 6 to 12 months if we look at the various places where we could get more detail from various companies. it is sowing the seed to the

various transactions happening >> thank you for joining us this morning. coming up in the show, a sparkling debut with the bottled water giant making a splash among chinese retail investors

welcome back to "street signs. i'm julianna tatelbaum these are your headlines european equities failed to hold on to gains and tensions as president trump plans to end reliance on china once and for all. >> if we didn't do business with them, it's called decoupling, you'll start thinking about it the eu shake-up. a major reshuffle after phil hogan departs. >> i've decided to propose to

the council and the european parliament, the appointment of mrs. mcguiness to the post of prime minister dombroskis will assume managing the trade portfolio. the low-cost carrier ditches its guidance and says capacity will fall below 40% in the fourth quarter investors satisfy their thirst for liquidity with the hong kong water giant sending shares 40% higher than its listing price. let's get a check on the european market. we did have a strong rebound

with the rally 1.7% driven by gains across sectors and regions. we are seeing exactly the opposite with a pull back across every region and sector coming under pressure yesterday, the gains were widespread and pretty strong in terms of the magnitude a bit of a pull back where we are awaiting the u.s. market for the labor day market getting a check on how the currencies are trading brexit remains in the headline following the story the uk is striving to underline. we'll discuss that in more detail essentially holding flat a mixed picture with a fairly

muted start. a touch higher for the s&p and the nasdaq looking to open substantially lower down 200 points that narrative dominated with u.s. tech stocks posed the end of the week as they resume losses if these numbers hold >> back here, easy jet is cutting flights even further as quarantine measures continue to happen p hamper they said they plan to be down 40% in capacity. ab inbev has launched a search for successor to c ceo brito. suggestions the north american chief is the only internal figure being considered.

brito has been in charge of the company for 16 years and led it through the series of take overs. sfloo shares in chinese bottled water giant nongfu spring has popped up. the ipo was more than 1,000 times oversubscribed shares subsided and closed 54% above the listing price. we have more with this ipo that has hit the market i don't know that i have ever seen an ipo more than 1,000 times over subscriber. was this ipo appropriately priced >> well at this point, i think it is not really a fair comparison at least the metric

for nongfu spring. if you've been watching the ip market here, especially chinese companies coming here to list, especially when p it comes to those technology names, we've seen a stronger upside on the market debut and also strong overwhelming response even coming from institutional and retail investors and perhaps they want to entice more retail investors as well. let's talk about the long period of the lockup money. talking 10 days which was longer than the usual four to five days for the period perhaps they wanted to lock in this kind of capital to gain attention from other ipos and retail investors we have another ipo we are watching and that is young china

happening on this thursday that is some of the factors we can talk about to explain this type of hot retailinvestor response now the founder with this paper wealth coming from this ipo coming with this other company maker and now the chairman is the richest man in china, wealth standing at $54.2 billion u.s. dollars now that this is a public company, we'll see how this stock goes remember how this other company went public in

shanghai as well, so it is an interesting pattern. in the meantime, this retail response coming to basically buy into this nongfu spring, the bottled water aker, it's numbe one in china but that explains a lot of the liquidity and the focus in the market. in fact, they are saying we might see more of that when it comes to mainland china and hong kong in the second half of this year as well we've got plenty of liquidity and more from the tech business and regulatory reforms in china and hong kong as well. >> thank you for this.

reporting a 2.3% fall in total share holder of the year they've spoken ahead and asked how their strategy would fall during the pandemic and global tensions >> to hold things around the world speaking to a team of dig tiesation for example, that has only accelerated the trend for covid. things like e commerce and things like health care or other businesses create a focus of software and the cloud for us focusing because of the strong beneficiary of coast.

there are some segments of our business, those segments have been impacted and because of the down turn and will recover and we've been focusing on navigating the down turn. rising almost 5% from before the german business association says it expects production output to plunge 17% this year before recovering modestly in 2021 let's get to annette to help us make sense of these new numbers. >> exports continue to recover in july put these numbers into

context relative to the other pmi and other date. >> caller: it is kind of a mixed bag. when you look at where they are doing well, especially in china where they are flat lined and down a whoping 17% compared to last year for the united states and that's still a very important market they are also down still a big part of the world that is badly affected by the crisis and the lockdown that will weigh on the export for the economy as a

whole. clearly some economists are arguing the third quarter will be strong and we'll see renewed weaknesses in the fourth quarter. so it is not like a v shaped recovery and clearly not across all segments of the economy. we have sectors everywhere which was affected by the corona crisis and parts of the economy are not doing well at all germany's economy are overly depending. this is also not in the greatest shape ever but has been already the case now demand for cars are growing

those are not doing very well. that is reflected in the data. the number set came in better than expected in the month of july but we do not see recovery taking place back to you. telling cnbc the markets have responded positively to the response to the pandemic including the issue ens of mutualized debt. sitting down last week and began asking him how the esm has adapted its lending conditions to the current crisis. >> sometimes people don't understand that this crisis is different from the old crisis because the euro crisis, there was a need to correct wrong developments that's why financial assistance

mainly from esm and other sources had to come from this condition. that was the crisis at the time. countries had lost market access this is different. this is not the result of wrong policies, so there are no resit ens attached that's part. agreement. >> there are conditions of how the money is dispersed it is another way of saying you have to be responsible with this money or there will be no future money, isn't it? >> it is earmarked but not the kind of condition we saw eight years ago. for good reasons they've adapted to this. no conditionality. the esm money and the ensure commission, the eib assistance

will mainly go to those countries most affected by the crisis so real solidarity >> let me go back. there should be conditions for the crisis do you think the money will be dispersed and how will they spend it and will the money be aggressive enough in the detail? >> as i said, there is no conditionality >> surely worrying anyone at the institutional level will be squandered looking ahead the next three or four years and the money becomes unstreamed from the eu budget, they'll be unlinked to the reform, that is wise because

over time, countries need to bring up productivity and try to increase the growth. for the first step agreed to by may, we have no reform as only earmarking also, there is no stigma attached to this markets -- and i hear that frequency say it is good if the country uses this money because it comes for free. it reduces the debt servicing for each country >> i know you are nothing if not a realist. you know this money could be used in the prong way. it is there for countries fighting coronavirus and rebuilding there is a chance it could be misdirected. even you would know that too

>> final question. what role for the esm going forward. is it there if we get a different kind of crisis >> a the em is a useful service. we helped countries and there were tough conditions. these five countries had a better economic performance than others so it worked now we have a different kind of crisis, that's why we have adjusted i don't know what the future brings hopefully fewer crises we never know. the eu's chief brexit negotiator has issued a warning to boris johnson saying if he renigs on the agreement, there

will be no future deal eu commission spokesperson said the eu will be ready to leave without a deal >> the decision to leave the market and customs agreement will create barriers to trade that do not exist today. that's why we've been informing administrations about the readiness measures they need to take while we are determined to reach an agreement with uk, the eu will be ready in the event of no deal with the uk on terms. coming up on the show, touting progress, president trump says a coronavirus vaccine could be ready as err wiar anelt month. we'll have more details after the break. 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.

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welcome back to "street signs. the recent rise of covid cases in the uk is of great concern. saying people have been too relaxed about social distancing

over the summer. the uk logged nearly 3,000 cases. the second biggest increase since may. spain has become the first country to log over 5,000 cases. numbers surge as schools reopen leading authorities to warn a new nationwide lockdown could be implemented. france says the rate in the country is worrying but believe a second wave is avoidable parts of the country have been placed on high alert charlotte joins us with the latest on the one hand, the health minister is saying the infection rate is troubling but that we are not on the brink of a second wave >> the message this morning citing the number of

transmission is at 1.2 so one sick person will make infections of 1.2 people in the spring, it was closer to 3.5. again, it's worrying as we hear from the health agency and where they can reach more vulnerable population better than 9,000 peek we saw on friday that number which is often lower because of the weekend the idea of today and tomorrow and the numbers coming through announcing several indicators as the number of deaths are relatively low, the number of entries in hospital are starting to rise. it was about 1,900 new entries it is not an issue they are keeping an eye.

it is the concern that the numbers in icu will start rising in the next couple of weeks. now different areas that were affected, marseille was more affected they've given the green light to reduce the isolation period. saying they are more infection in the first five days after a positive test. now they'll decide to put this as a new rule to isolate for seven days instead of 14 after a positive test which will allow people to go back to work and school quicker while the health numbers for the moment are not worrying on the hospital front they are keeping an eye on the economy closely. u.s. president trump and joe biden are at odds over a potential coronavirus vaccine.

trump said a occcure could be rd as soon as next month. joe biden and harris have questioned the president's credibility. >> joining us from washington, d.c., tracie potts, polls are already nervous around taking a vaccine, surely politicizing that process risks undermining that trust even further. >> reporter: exactly there is finger mountipointing h sides about getting developmented and distributed a vaccine. president trump is suggesting october before the election. even the top health experts, the doctor he put in charge of fast tracking the vaccine said that

is extremely unlikely. we heard the world health organization say 2021 would be the soonest before a vaccine is widely used. president trump saying this could happen before the election we saw that back and forj between him and kamala harris over the weekend she said she did not trust trump on vaccine development he shot back that she was delivering anti-vaccine rhetoric or political rhetoric. biden said if he could get a vaccine faster, he would do it even if it meant losing the election it is up to the companies and the health experts overseeing and contributing, and none of them seem to be as optimistic right now as president trump that it can be done in a matter of weeks instead of months

>> that's right. it is up to the vaccine makers to submit their requests for approval thank you for bringing us that report let's look at u.s. futures we are posed to open lower in the u.s. the nasdaq lower if these numbers hold we are opening after the long weekend. labor day meant u.s. markets were closed yesterday. last week, closing with that sharp selloff. it will be an exciting session to watch this morning. that's it for today's show but coverage continues with "worldwide exchange" coming up next

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it is 5:00 at cnbc bringing back the buyers maybe not. stocks looking to makeup lost ground futures are down sharply soft bank stumbles why they are doubting the multimillion dollar bet will work out caution to the wind. the sector goldman's will remain dominant another suspension another university t