certainly not number one-- nobody planned that. you know, a lot of people will say, "oh, you did that, that was a stunt"-- no, it wasn't. but, that's what can happen when anything goes. so, anyway, stay tuned, and watch for the new season. welcome to street signs. joining us today, european equities open the week higher amid travel and oil stocks u.s. futures point to a solid start after major markets close out last week. >> time is running out for

tiktok parent byte dance as hopes for a partnership with,el can avert u.s. sanctions >> soft bank shares jump as they agree to share to nvidia for $14 billion. the japanese investment company is looking to go private >> japan's ruling party leadership race setting him up to take over as prime minister placing the country's longest serving premiere shinzo abe. thanks for joining us. let me take you to the european market but we haven't got 6,000 points which is very difficult territory in recent months so

the dax chasing almost half of a percent and looking solid. near 5,000 points last week and holding on to that leadership with another .7% italian stocks also in the green. we saw last week that these markets would try to hold on to some of the gains despite selling on wall street very serious patches of volatility on the u.s. markets but european stocks did try to put a little bit of distance between themselves and the market action. let's take a look at the better performing parts of that market. that's very close to a theme from a number of fund managers looking for the recovery stocks. we had the rally in technology and health care. but of course with some momentum investors have wondered whether there will be catch up in the target areas of the market but you're seeing industrial stocks

again. technology still in the mix now. a ton of activity taking place and you can see that again construction material rounding up the worst performers though, you can see it into the green and even real estate with food and beverages, health care is the only sector that trades weaker this morning but investors have been strong to pick up on the trade in recent months and amid last week we're hearing the astrazeneca trial and it happened so i think investors are just a little bit cautious around the news flow from the sector >> thanks very much, karen let's get to the latest around tiktok oracle is set to be named as tiktok's u.s. technology partner according to a source directly familiar with the deal byte dance won't give source code to any u.s. buyers

according to chinese state media. the news comes after microsoft confirmed byte dance rejected it's bid to buy operations they insisted the proposal would have been good for tiktok's users while protecting national security interests. >> chinese state media now said they will not sell tiktok's operations to oracle or microsoft or give the source code to any u.s. buyers and it comes after a person familiar with the discussions told our colleague state side that they had now chosen oracle to be tiktok's technology partner in the u.s. operations after the parent company rejected microsoft's bid to snap up it's u.s. operations. so byte dance is in exclusive negotiations with oracle and discussing a sale of a significant minority stake in tiktok to the company making

oracle the technology partner. so it will be interesting to see what shape this deal takes given that oracle will no longer be the outright owner from the sale which we are expecting to see but also given that state media said byte dance won't hand over at the source codes. china did announce new export controls in certain technology which includes the ai algorithms that tiktok uses to keep it's users engaged on the app so there's still big question marks about how the partnership may actually look like and how the technology may perhaps be dealt with but interestingly when it does come with this potential partnership at oracle we also said that it is thought to be in compliance with the committee that investigates foreign acquisitions in the u.s. for potential national security rist risks and it will be interesting to see how some of the concerns are addressed when it comes to

claims or worries that tiktok user data could end up in the hands of the chinese government which is something the company has repeatedly denied. of course the clock is ticking on the tuesday deadline for byte dance to divest it's u.s. operations of tiktok and it's not clear at this stage whether the u.s. government will approve the proposed deal. it comes after a report saying beijing was opposed to the sale. it would make byte dance and china appear weak so they have suggested that they decided to pursue this partnership in an effort to avoid the ban while at the same time, satisfying the chinese government back to you. >> we have a bit of movement on the diplomatic front as well

the u.s. ambassador to china will step down after three years in the position. mike pompeo thanked him for his work in rebalancing u.s.-china relations so that it's results oriented are reciprocal and fair. >> joining us, we will be watching this play out through the lenses of tiktok at this time and given the change in export rules. and another deal, what do you make about what is playing out between the chinese and the american side. >> you're right to point out that there seems to be an attempt to try to have some kind of compromise. some kind of balance here.

but you have to see all of this through the lenses of the u.s. presidential election and while president trump wants to continue to intermittently criticize china it's all about trump trying to play up his domestic record and secondly, trying to cast doubt about joe biden and the policy ajgenda domestically so china, at the moment, isn't necessarily going to be something that allows trump to completely remain his momentum in the polls it's more domestic in focus. the rational thing to do is accept the compromise from the u.s. the uncertainty before we see the final decision in the u.s.

is that we see unpredictable positions from president trump but on balance we probably look to allow the focus to go on to the u.s. election. >> if trump isn't reelected then some of these concerns disappear and if there is some sort of agreement before the election about this particular deal and it is a partnership then we might have a new playing field that if chinese companies want to do business in the united states and we could possibly think beyond that in western countries that's some of the data that has to be ring fenced with a local player. >> yes, that could well be a

consideration. but it goes wider than that. there's a degree of regulation that the democrats would be looking to undertake in terms of the tech sector, whether that's light regulation or the draconian situation of an antitrust investigation by the d.o.j. which is, we think, unlikely so certainly the tech sector while having sold off now and bouncing a little bit into mid october is going to be keenly focused on the u.s. election outcome and particularly what policies we would see if joe biden were elected as we know, president trump is more benign as far as the tech sector is concerned domestically in the u.s.

but if you look around the world we're seeing the number of virus cases tick higher and it could be a resurgence of the virus in europe. how concerning is that to you given that hospitalization rates still remain pretty low so it looks as though the severity of this is perhaps less concerning than it was the first time around >> i think that you need to be concerned when you have a country the size of spain, france, the u.k. that's rubbing at 3,000 or 5,000 or 10,000 new cases per day. it's certainly the case that this particular summer wave is less deadly. partly because of the impact that it's having on the younger rather than older and because of

treatment and because people are using masks. but it's not a good starting point to be going into the autumn and i think the medical profession and scientists are worried about a winter wave occurring, november-december, january when we do get colder weather in the northern hemisphere and that can potentially have more bite so we may welsey this wave in europe subsiding by mid october and the cry sus being centered on latin america and india. and we will still be concerned about it before we actually get vaccine approval and vaccine roll out so i think that that's something to watch closely.

>> is it fair to say that we'll trade in tight range before we get data through for some of the leading vaccine makers >> that is the real game changer for the markets. so we had indications that toward the end of the year we'll get the results through which should lead to emergency use approval the markets are biased toward one of the major candidates being approved if not multiple of the major candidates.

but we may welsey a bounce back in the market after the recent sell off but some turbulence around the u.s. election particularly given if joe biden does win which is our expectation you'll likely see a disputing election and donald trump really sort of challenging the result, but then as we get toward the end of the year, then i think the vaccine optimism and vaccine approval takes over and gives the market a real leg up into 2021. >> it's creating a little bit of havoc and investors getting concerned around no trade deal being established here theirish prime minister says most likely the reading is that british approaches a negotiating tactic and the u.k. wants a trade deal saying i believe we can solve some of the issues the u.k. is concerned about

state aid and not that many issues for a thin trade deal with the u.k what do you make of the no deal risk at this stage >> it's interesting to point out negotiating tactics because we have been here before. not just at the end of last year but in previous phases where the u.k. had a tough negotiating position and given way or found a compromise at the last minute. >> this is slightly more serious in that the reason for this is not just negotiating but the u.k. realized that some elements of the agreement that they signed last year are perhaps not appropriate from their standpoint so it's hard to tell whether it's purely just negotiating or whether the u.k. government truly believe this.

>> so i think that it's 50/50 or alternatively no trade deal and actually quite a bust up between the e.u. and the u.k. as we go into the end of the year so i think, you know, sterling in the fx market is right to be cautious at this point because if you get no deal then sterling can fall further. >> that's always the worst case scenario what would no deal mean in that type of context or with all the business uncertainty supply chains being disrupted and reverting to wti rules >> it would probably still mean technical recovery in gdp for the u.k. next year so positive growth but that's a lot to do

with vaccine roll out in the u.k. but the u.k. would be lagging behindand structurally it would hurt the u.k. as a foreign investment destination >> we'll have to leave it there. thank you so much for joining us today. talking on a range of topics coming up on the show, he wins the leadership race gearing up to take over as the prime minister of japan.

greece has announced to buy 18 they did not provide further details about the purchase but said it was the first time it

received an order from athens in almost two decades they could shed as much as 15% of its work force of 9,500 that is if the airline cannot come to an agreement on salary cuts with the start according to a local newspaper. the unit is looking to cut costs by a fifth the french finance minister will do whatever is necessary to help air france this after his dutch counter part warned that the survival is quite not a given. the immediate future was secured by 10 billion bailout alone in july but the airline is looking to cut over 6,000 jobs to save additional costs. >> a bit of activity in the m&a space today. the european exchange operator submitted a nonbinding offer to buy from the lse group the tie up could create a major

player in european capital markets. >> hermann houser says soft bank's sale of the group nvidia is a disaster. they have agreed to sell in a deal with $40 billion. the japanese investment firm acquired the british chip designer in 2016 for $32 billion. we're taking a look at the european chip makers this morning. we're seeing the names trade modestly higher on the back of this news. executives revived talks to take it private frustrations over the $115 billion equity valuation have driven discussions they have embarked on an asset disposal following a series of failed bets. the financial times reported that softbank had taken a large number of options in major u.s.

tech companies recently as the group looks to shift it's investment strategy away from private start ups. >> japanese politics, suge has been elected the new leader of the japanese party he is expected to succeed abe as prime minister fascinated by one of the opening comments from suga saying he was born the oldest son of the farmer without any knowledge of blood ties and launched into the world of politics and his opening is that he's just not part of the establishment. >> he says that he will continue the policies of shinzo abe of course one of his close allies for 8 years is the chief cabinet secretary. not a lot when it comes to a change in policy

but you're right it was an emphatic win for him it was looking as though it with was going to be a three horse race when it came to which one of these three men would lead and then become prime minister we did see a large number of factions really throw their support in the last few days behind mr. suga. he managed to win with such a significant majority when it came to the other candidates as well as the former foreign minister only scoring as a widely strong leadership contender only with 68 votes now there won't necessarily be a sharp deviation from the former prime minister shinzo abe policy this leader is the best person to lead in the current era and he is saying he must continue with the policies of the abe

government weak monetary policy, act over a number of years. also fiscal spending but also structure changes and structure reforms which may say he wasn't actually able to do that effectively so he is saying he does want to implemented the structural reforms and create a government trusted by the people listen to some he had to say a short time ago as he was announced the victor in this party race >> translator: amid facing the nationwide crisis of the coronavirus outbreak, we need to overcome this challenge. in order for every single person to have a safe and stable life i need to move it forward. i believe this is my mission >> the japanese market ending before we got the results of this party vote out we are

seeing the yen strengthen as well pushing back below the 106 level. we'll be eyeing the possibility of an early election or a snap election in japan because there's been some speculation that if he is able to get that so-called suga rush, the honeymoon period now that he will become a prime minister come that parliamentary sitting on wednesday whether or not he will try to improve his mandate by going to the polls. it's due to be held in september of 2021. it would be a cause of a snap election or an early election but we'll wait and see what transpires after he is sworn in there and then confirmed as the prime minister a little bit later on this week back to you. >> i want to pick up on the pointer on the snap election because there's a history around

politicians making very similar judgments once there is a leadership change whether they're overthrowing a current leadership or natural progression. there's almost a feeling as if this politician wants to ensure they had a proper mandate. and in this particular time frame who knows how they'll feel about covid-19 and how it's being managed by the incumbents so maybe it's the right time to go straight back and bring about the change and a longer term in office at this point yes, you might get that immediately after you become the new prime minister but then you have an election campaign as we know very quickly but it will also be interesting to see how voters react to of course the

economic policies of the government and whether or not they want to see it continue because it was the largest contraction we have seen on record and annualized pace, something like 28% was the contraction that we saw in japan. and the sales tax or consumption tax may need to pay for some of the social pressures that he wants to introduce but he quickly walked that back and said perhaps that would be for the next decade and not necessarily immediately. we can talk about increases down the track at the u.k. as well. i think politicians just giving the population something to think about. thank you for bringing us the

latest on the developments in japanese politics. i want to show you implied poll ti -- volatility has risen that's the highest since early april as sterling has risen 12858. we tried to pick up on some of the trade. clearly around concerns that it will be overridden that's been the main headline in the press as it has been put on the agenda today thought to be mounted

time is running out for tiktok as byte dance hopes a partnership with oracle can avert chinese sanctions. >> shares jump as it agrees to sell chip designer to nvidia for $40 million. the japanese investment company is looking to go private. suga lead wins the race. >> amid facing the coronavirus outbreak, we need to overcome this challenge in order for every single person in japan to have a safe and stable life, i need to move it forward.

they're all posting strong weekly equity performances now we are getting a bit of support on the vaccine front with astrazeneca resuming the trials of their covid 19 vaccine candidate. also they're announcing they're looking to expand it but so far the optimism outweighs the pessimism on that front. currencies sharply in focus. let's take a look at how fx

markets are trading this morning. we have the federal vefsh meeting on wednesday bank of england and bank of japan on thursday. perhaps the most exciting trade this morning is in sterling. >> riding to 14.4% since april goldman sachs weighing in saying lower odds than the market implies. it got it's first two week losing streak since may. we are looking at a positive start to trade so a bit of a bounce back expected for the u.s. markets but this comes after another tough week for u.s. equities last week. >> thank you very much let's push on to uber which will fight it's london ban in court

for a second time this week as it seeks to continue operating in one of the biggest markets. it will argue with london's transport regulator over the safety of the service. he has bet onself-driving cars the company announced it would be spinning off it's joint venture with uber into the self-driving group they also became the majority owner of the business after purchasing shares from uber. we're joined by the cfo and coo. great to have you with us on the back of what is an exciting announcement for your company. talk us through the decision to spin out this unit as what are your plans for this business moving forward?

we purchased some shares from uber as well as injecting into the business to support the r and d of this venture. we're looking to obviously continue our tests we're running. and so far around 4 million miles of real world driving conditions including all sorts of weather conditions on to the platform >> obviously the car industry is undergoing a huge amount of

change and so far we have seen new players leading the way when it comes to electric vehicles and pulling out the rest of it with it now we're seeing them get more and more involved in cars of the future and electric vehicles and in terms of the industry landscape who do you see as your main competitors on a 5 or 10 year view? >> in self-driving technology as a whole. as a difficult area it requires a lot of expertise in artificial intelligence and machine learning and this is where we clearly benefit given our deep expertise from our search business where we're clearly the

market leader and have over 22 or 23 years of experience there. i think going forward that particular focus on a.i. and machine learning will be critical for success. >> i want to bring up a little bit more about the reorganization discussed because as much chatter as there is in the market, having another area of the business being self-driving cars that require such huge investments maybe it would be better to get rid of that arm of the business and prove the financials before any ipo. can you argue with that? can you tell us that it doesn't prove the financials at this point? it doesn't set you up a little bit better. >> so i think the purpose was not targeted around the ipo or ride hailing business that is something that we're pursuing.

we have actually seen a pretty rapid recovery so far. we're seeing growth. currently our bookings are growing at almost 30% which is impressive the focus is more around putting more capital and putting more focus behind it. also increasing ourownership i this critical part of the business that we think is part of the legs of the future. it is extremely important. so more focus on the future. and not so much about is this configured in the right way for a potential ipo. >> i want to get into the timing around self-driving cars it was going to completely disrupt entertainment.

you put more money into this venture but when can we see decent returns because even though trends have accelerated with covid, having someone in the car driving you, perhaps more people would feel comfortable. a lot of companies wanting to trim the cost of operations by not having drivers in cars so how do the trends change and when do you think that you'll get solid returns from this part of the business? >> it's not so much a question of when we'll get self-driving but a question of where we'll get self-driving and importantly there i think when you talk about geo fenced areas, areas where traffic conditions are simpler. whether it's because of weather or the number of cars on the road you'll have self-driving much sooner so if you take a look at the places where we currently operate, we operate in certain towns in russia and currently we already have services running there now clearly it's going to take a lot more time before we will get self-driving in places like, you

know, new york city during rush hour or moscow during rush hour so it's a question of when and where, not if. >> what we're hearing is there's a huge global initiative to get self-driving action at this point but what we have seen behind the scenes in technology, a huge fight playing out between u.s. and china for tech dominance and where they're sourced down the track it could become an issue. is that causing concern as you try to plan for the future so overall it's a combination of hardware and software. and obviously all the software is built in house and that's a critical part of the platform that we're building. it's full ownership of the software stack which is based on

the whole ecosystem. greg, i want to come back to the roll out and the trajectory that you see for the adoption of self-driving cars. i appreciate the approach that you're describing right now. perhaps the technology is more conducive to smaller towns and not necessarily new york city but when realistically could we see self-driving adopted in major metropolitan cities around the world? >> that's something that is a few years out. could be three years could be five years? certainly. i don't think anyone knows when we will get there but it's going to be gradual and it going to be a function of rolling out piece by piece and learning alock tnge way and improving. what we have done is we have put 4 million miles on our platform already and we learned a lot and

as we will accumulate more and more experience in simpler weather conditions we'll be able to improve much faster and roll it out much faster to more complex cities like moscow and new york et cetera >> i know through the pandemic you made huge efforts to expand your offering to try to get off line companies online and parts of your business have really, really accelerated grocery expanding at six times when it comes to growth since january. last time we spoke earlier this summer how are things going now in other parts of the business now that the world has changed a little bit and people have come out of lock down for the most part and are no longer stuck in their homes and perhaps don't need the services to the same degree that they did. >> sure. if you look at the food delivery side, volumes are still doubling

and it's growing still very nicely the interesting thing that's happened there is consumer habits have changed post pandemic so certainly people are ordering probably a little bit less than they did before but the number of people that are actually ordering has grown >> if you look at groceries, a bit of a slow down but still rapid growth and the interesting thing is what's happening is the average check is coming down so instead of ordering a whole lot of groceries once a week, people are ordering smaller baskets more frequently. and at this point we covered almost all of moscow and st. petersburg with 15 to 20 minute grocery delivery which is extremely remarkable in terms of comparing soour offering to oth cities around the world. so they can go out and have it delivered to their door 20 minutes later. that's a completely unique product offering that we currently have and volumes that

are starting to grow again as i mentioned. >> thank you for joining us today to talk us through the story. >> we have developments and we have been closely tracking this morning following the news of a $14 billion sale of the chip designer to nvidia it's a huge deal and the market is looking at reaction we had the ceo of nvidia come out to say we want to grow it and keep it based in the u. k. those comments following a rejection of the deal by the co-founder effectively sayng

and coming out to say that there's still a plan to keep it based here also we had comments now just crossing from the ceo that says that they believe there is a really exciting future for the company with nvidia and how competitive it would be with some of the rifles comments now crossing on the rise from the ceo and pushing on u.s. president donald trump will continue as wildfires devastate the coast. they claimed 30 lives with many more reported missing. jennifer, what can you tell us about the state of play there on the grounds for these wildfires? >> it's going to be a difficult day. we expect that things will shift as far as the weather is concerned. i'm here north of sacramento at the north complex fire that

already claimed 14 lives there's still 7 people missing and an hours drive to the south at the base, cal fire operations they are expecting a visit from president trump later on this morning where he will land he will get a briefing from local federal fire officials and speak with members and their families if you were watching last week, the amazing daring rescue as the national guard helicopter made into this fire area picking up stranded campers and hikers surrounded by flames with no other way out. they air lifted about 300 people out of the woods and to safety over the last few days and weeks. but there are still 29 major wildfires burning in california. some of those have been burning for a month. to the north in oregon, fires

have already consumed nearly a million acres. forced 500,000 people to evacuate and in washington state more than 600,000 acres have burned crews are working to sweep through burned remnants of towns and looking for remains, sadly at least 33 deaths have been flamed on fires since they got going a month ago. >> i'll pick up. thank you for bringing us the latest amazing rescue efforts underway over there we'll squeeze in a quick break but coming up on street signs, astrazeneca and oxford university resume testing of their coronavirus vaccine after a week long pause.

welcome back a few notable developments gilead is acquiring immunomedics

for $21 billion. it's an 8% premium they're looking to boost revenues by expanding the oncology portfolio the transaction is expected to close in the fourth quarter. pfizer and biontech unveiled a plan to expand testing of their potential coronavirus vaccine. the move will increase to 44,000 people while increasing the diversity of patients in the trial population they hope to submit the drug for regulatory approval. this is the vaccine as early as next month astrazeneca and university of oxford will resume testing of their candidate. this after trials were halted when a participate in the trial in the u.k. fell ill this is a story we were closely tracking last week news that they had gone ahead with a routine pause in the clinical trials of their vaccine candidate. reports suggesting that one patient fell ill with a suspected case of an

inflammatory reaction in the spinal cord. they haven't given any further medical explanation as to what happened to the patient. the bottom line here is that the independent review has deemed it safe to continue and they are going to and in terms of time line, astrazeneca ceo said if the trial were able to resume quickly they would still be on track to determine whether this vaccine will be effective and whether it is indeed safe. >> it feels as though there was a line and this was perfectly normal and you saw these things happen in some of the phase three trials often so perhaps the paperwork is being filled in and the patient is when are there more cases and just how significant they are to what

that means for the optimism around the vaccine or not and it's very relevant for the way the market feels about getting out of this covid-19 situation i know that if you look at the trade around wall street last week we ran out of steam and some momentum was lost and some might have been down to this vaccine news a couple are still optimistic. i was looking at one this morning. they had a note out saying the reopening of the global economy is endicing us a basket of 14 back to work stocks versus a basket of 14 high flying covid 19 winners so what we have got, the market trying to workout whether we broaden out the exposures away from the tech and the health care winners to play catch up on some of the other stocks out there. it's so instrumental to that development around what stocks to trade and hold in the portfolio. >> well, that is exactly what i have been hearing from investors as well. it really comes down at this

point to the vaccine data that we get and we're due to get read outs on the phase 3 trials that are underway as early as october. potentially more likely we get that data in november. but it feels as though until then we could be in a little bit of a holding pattern but certainly a huge opportunity when it comes to the reopening stocks the key laggards that haven't performed as well as the safer assets in recent weeks. >> we're going to wrap up with a quick look at u.s. futures today. this is how wall street is perched ahead of the trading session. that looks like a recovery day is on the cards. very significant marching on to the boards in the wake of a little bit more selling. that is all. thank you for watching worldwide exchange is cong urayext.mi look here, it's your very own all-in-one

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it is 5:00 a.m. and here is your top five at five. futures surging triple digits after stocks log their worst week since june. technology on the rebound as well despite some investors betting against specific stocks or the sector entirely we'll dig into the numbers move over microsoft as the saga takes a turn ahead of the deadline call it the soft b