there's a marriage that's on the line. kevin: i try and keep emotion out of business. there is a lot of stuff going on that he's not mentioning right now. you're making absolutely no sense. somebody is not telling the truth. this is my final verdict. now get out there and keep growing this business. good morning welcome to "street signs." i'm julianna tatelbaum with joumanna bercetche these are your headlines coming off a ten-day win streak after a raft of key chinese data misses expectations showing a slowdown in the world's second largest economy. and u.s. yields retreat after the fresh read of consumer

confidence at the lowest levels in decades. the afghan president fleeing the compuntry and the u.s. standing by the decision >> the idea we sign up remaining for another 5 or 10 or 20 years was not in the national interest. and faurecia shares surge after the french group agrees to buy the group hella in a deal worth 7.4 billion euro saying it will better position the company in the evolving market good morning welcome to "street signs." what a weekend a huge amount of news coming through. no doubt occupying investors on this monday morning. here is the trade.

stoxx 600 opened 6.7% lower rising geopolitical risk from the middle east region and weaker than expected china data overnight and concerns spreading around the spread of the delta variant. plenty of factors weighing on sentiment. let's put this in context. stoxx 600 is down .4%. we have the longest run of consecutive gains for stoxx 600 since 2006 a strong run and what we are seeing this morning is a modest pull back. let's break it down and what the index looks like red across the board ftse 100 under performing. down .7% cac 40 not far behind. then about one-third lower is the other major regions in europe in terms of data this week looking out for the uk cpi due

out on wednesday a final cpi for the euro area on wednesday. and earnings season coming to a close. a few more coming through this week could round it off. this is what the split looks like basic resources leading down 1.5% no surprise there given the sensitivity to what is happening in the chinese economy travel and leisure down. oil and gas down 1.2 on the up side, real estate and tell telecommunications oil and gas is under performing this morning this is where oil prices are brent at $69.59. wti is down at $67 a barrel.

and u.s. losses. front and center is the taliban taking control of afghanistan. we will dive into the implications later in the show he here is how it is looking. dow is set to open 50 points lower if these hold. joumanna julianna, let's talk about the data chinese economic data slowed in july according to the national bureau of statistics fresh covid outbreaks and supply chain bottlenecks saw industrial output miss expectations >> economic activity was expected to lose further steam in july, but not as much as the numbers today. the slowdown is intensifying the headline numbers come as the low has been madie fading, but experts put it to the weather

and covid. retail sells were missing expectations in july this comes as chinese factories continue to grapple with the chip shortage and supply chain bottlenecks and high commodity prices retail sales growing 8.5% year over year compared to the double i digit we saw in june this after the strong services sector unemployment was up 5.1% slightly higher than june. perhaps the most worrying trend here was that 16 to 24 year olds remained higher at 16.2% signaling it is harder for younger people to find jobs. the stats bureau says the recovery is unstable and uneven, but insists growth is within a

reasonable range and expects the economy to maintain in the second half despite the tightening of covid. in singapore, i'm sam battis, back to you. >> thank you let's bring in the first guest the founder and cio of adp investments. good morning let's start with the data drop from china overnight it seems to be disappointing on the investment front and the consumption front also happening at a time where we have been talking about a regulatory crackdown going on with many of the chinese tech industries. yet, i read in your notes that you still seem to be pretty bullish on chinese equities? you are going out on a limb there. explain why you have the optimism in chinese investment opportunities. >> yes, thank you, joumanna. we have been positive since

november of 2018 we have been having this discussion internally. looking at the various factors which make up our process. if we dissect them from the fundamental point of view, we maintain a strong score. the reason data may surprise to the down side, but the policymakers have a significant amount of dry powder at their disposal unlike the u.s. and european countries. uk and eu did not go out on a limb with huge fiscal stimulus and monetary policies. they can deal with the surprising slowdowns over the near term. from the market price behavior, there is uncertainty in sentiment in terms of the crackdown and regulatory changes we're seeing which is significant political motivations with president xi to

realign the chinese capital spirit to be aligned with the communi communist spirit if you put that on the sideline, valuations is still attractive and yes, it may have an adverse impact to a specific sector or couple of sectors and the wealthy, but in terms of the broad bank of chinese members, there is a significant amount and raised millions out of poverty. and geopolitical we believe they are a price maker with the geopolitical scene. >> it is interesting most people we spoken to over the last couple weeks are getting cold feet on china can i dig deeper into the investment thesis and ask if there are some sectors you are

looking to avoid based on expectations of further regulatory crackdowns? have you diversified are you looking at companies more focused more aligned with the chinese government incentives at this point or sticking to your guns and staying in the same sectors like tech and gaming industries >> i think just to be fair, we do not bottom up we look at things from the top-down perspective we don't do specific company analysis with research we look at everything from the global perspective going back to address the question, i think the regulatory constrains and shift in the regulatory policy is a five-year plan in the way it will be implemented. however, and this is important, i do not believe it is in the interest of the chinese

communist party or policymakers to derail the economic environment or broader international sentiment or domestic sentiment that is what creates risk and uncertainty and social unrest. i believe the chinese communist party will grab a regulatory regime without creating any significant difficulties for the domestic and international investors. having said that, we see self kr correction we are seeing some with business change to be more aligned with president xi's thought of the way going forward. >> i want to get your take on the economic data from china means for the rest of the world and growth in the rest of the world. the data out overnight

disappointed relative to expectation with the delta variant and the asia region. how concerned is that from a global growth perspective? >> i'm not that concerned about the delta variant. obviously, of course, a concern. let's be rational. what i mean is i believe the market has overexaggerated the importance of the delta variant with the 10-year yield the reason why we're not as alarmed or as concerned with the market is if you look at the relationship with the number of covid delta variant cases, they do not translate to hospitalizations and deaths at the same rate. given the vaccination and strength of the vaccinations which are coming through, i believe the delta variant, although significant and sad to have covid cases, i do not

believe it will have significant weakness in the global economy in terms of the link of the chinese economy to the rest of the world? number one, i believe the chinese policymakers will come in and intervene and throw mone at the problem fiscal or monetary view. more importantly, i don't believe the west will derail that fiscal and monetary policy sdplchlt policy >> you created a nice segue to my next question you are in the contrarian camp outline that conviction. you think about things differently about the federal reserve. >> i think the federal reserve has done a great job of

providing stimulus which was necessary in march of 2020 onwards to make sure this does not become a bigger crisis hat's off. going forward, however, i believe as the economy starts to regain traction after labor day in the u.s., we will see things moving back to normal level. the difference, however, this time around with the global financial crisis where we have concerns of inflation coming through is this time we will have bigger geopolitical tensions we have supply chains coming closer to home we will be seeing industries moving away from korea and vietnam and closer to the u.s. and closer to the eu the impact of the wage pressures is going to be with us also, add to that expectations that wage increases and price

increases will be here i believe it is not transitory i do not believe an inflationary crisis let's be clear we have the policy tools and credibility. i do believe it will be higher than what the market expects and the fed is saying and as a result, we expect bond yields to stabilize higher than where they are. >> very clear. i have to ask about the market implications of the events over the weekend with the taliban seizing control of afghanistan what is your headline take on what this means for financial markets? >> obviously this is very sad news it's a huge political discussion to be had. in essence, what this says is aligned with our view of a more deglobalized world globalization is there, but it is receding. this is an opportunity for china and russia to come into the area and void which the uk and u.s.

and the nato forces created in a similar way that the departure of the u.s. for them allowed russia entry as well we are seeing the world move away from the u.s. to a more multiport world including china and russia and assertive european union i think europe will have to stand by its political unfeet there will be more medium-term expectations in a mu multi-polarized world which will create higher inflationary prices. >> and they are labeling this as a big humiliation for the u.s. none of these geopolitical considerations will go away. it will be amplified over what happened over the weekend.

i want to go back to the discussion you awere having. it feels like we are getting closer to the point of the fed articulating it. some people are saying tapering could happen next week in jackson hole what will happen when they announce it will not be a surprise for anybody? >> i think that is right i think that they are not in a rush to announce it. there is no rush there is no reason to announce and jay powell has been more cautious and he has been right i think what would instigate that is a series of stronger than expected underlying data. i think fed would be happy to be behind the curve i was relieved when i read the

notes on the 15th of june that they did realize and did announce the concern of inflation and we're aware of it. and that puts a risk of the fed is stubborn and is aware and ready to a acction. they are behind the curve, but that is on purpose i do not expect anything as soon as jackson hole. iexpect labor day or october o november with things taking a slightly different gear. >> thank you for joining us and taking our range of questions. great to speak with you. thanos papafoner and don't miss the first interview at 22.30 cet with eric rosengren. and the taliban takes

control of afghanistan causing evacuations as the west faces mounting criticism for withdrawali of troops from the country. we'll have more coming up. term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

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welcome back to "street signs. you're looking at live pictures of the presidential palace we hope to have those back for you. presidential palace in kabul now under taliban rule we now have fresh lines from germany as an update on the situation from the german air force. second evacuation aircraft en route to kabul the plan for the aircraft to evacuate german citizens and afghan helpers stranded there. according to the afghan source who spoke to reuters we with i wil we withl keep you updated so yo get a sense of what is happening. to recap, chaotic scenes at kabul airport over the weekend and this morning as residents try to flee. u.s. forces fired shots in the

air to disburse crowds trying to board military flights troops have been sent into the country to facilitate the withdraw of embassy staff. this comes after the taliban took the capital on sunday claiming control of the city and government buildings as the president fled the country uk prime minister boris johnson asked to stand with the country. >> it is important that the west, collectively, should work together to get over to that new government be it by the taliban or anybody else. nobody wants afghanistan once again to be a breeding ground for terror >> and the uk defense secretary ben wallace told sky news it is key human rights is upheld in the country.

>> we have to make sure the taliban leadership leave the countries. if there are provinces behaving like that, the eu needs to make sure they uphold human rights. >> let's get to dan murphy in abu dhabi. dan, we were witnessing the scenes of residents trying to get out of the country we found out late last night the afghan president also left the country. the first question i want to as is what is next for afghanistan now the taliban have fully taken over >> what is next? it's a great question. it is clear there is not much guidance on that we are witnessing historic moments, joumanna, with the taliban taking full control of

afghanistan nearly 20 years after the u.s. invasion. extraordinary images emerging in the past 24 hours of armed taliban fighters inside the afghan presidential palace that came shortly after cnbc here in the middle east was able to confirm the afghan president fled the country all of this coming together just as the u.s. also moved to scramble 6,000 troops to protect and evacuate staff at the u.s. embassy in kabul which is almost totally cleared ou to america's 20 years on the ground in afghanistan right now, we are monitoring develop mments at kabul airport which is a hive of activity. mass gatherings on the ground there right now as thousands of afghan citizens attempt to flee what is clearly a deteriorating

security situation on the ground that is despite commercial flights canceled we are also seeing reports of shots being fired today. clearly that situation is moving fast nevertheless, the secretary of state antony blinken with the decision to withdraw and calling for a peaceful transition of power. whatever that means. listen in. >> we have been working on the drawdown for months. we began an ordered departure from the embassy at the end of april. as facts have changed, we adjusted to that that is why the president sent in forces at our disposal to make sure to do this in the safest way possible. all of the plans have been in place. it is also true in terms of refugees and bringing people out, the system that we inherited had been disecimated

we have been doing that in real-time. chuck, you know, stepping back and that's really important because it is vital we put it in context. here are the facts the president said we went into afghanistan 20 years ago for one mission. that was to deal with the folks who attacked us on 9/11 and bring them to justice and make sure they would not be able to do that from afghanistan osama bin laden was brought to justice a decade ago al qaeda has been diminished its current capacity to attack us from afghanistan is negligent. we have forces in the region and in place to deal with reemergence of terrorism that's what we went. we achieved those fundamental objectives to sign up for another 5, 10 or 20 years was not in the national interest that was the hard decision the president made >> reporter: the secretary of

state antony blinken there it was trump administration's decision to withdraw the troop, but the biden administration had to move to take the troops out and now how to answer the questions. how ythey under estimate the regaining of control of the taliban so quickly why the afghan government and afghan national army were unable to protect citizens from a full taliban takeover what we will see is an emergency session of the united nations coming together to meet and discuss the situation on the ground in afghanistan. the u.n. secretary-general has condemned the action we have seen from the taliban against afghan civilians he called for a peaceful transition in the country. again, we don't know what that

is going to look like. it is likely we will hear from other world powers with statements of condemnation against the taliban for how it has been able to effectively regain control on the grounds in afghanistan two decades after the u.s. entered the country and has now youleft back to you. >> dan, thank you for your reporting. i appreciate you breaking it all down for us. 1,300 people have died in he haiti after the earthquake on sunday now a race to bring doctors to the area before the major storm hits and haiti was reeling from the presidential assassination and the 2010 quake which killed 300,000 people >> 300,000 people in 2010. monstrous number. we will cut to a quick

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welcome back to "street signs. i'm joumanna bercetche with julianna tatelbaum these are your headlines tracking fresh weakness in asia after chinese data misses expectations showing a slowdown in the world's second largest economy. oil with losses and u.s. yields retreat after the u.s. confidence is the lowest level in the decade. and the taliban takes control of afghanistan with the president fleeing the country. the u.s. stands by its decision to withdrawal troops despite mounting criticism >> the idea we sign up for remaining there in the midst of the civil war for another 5, 10 or 20 years was not in the

national interest. faurecia shares surges after buying the group hella for 7.6 million euro it will better position the company in an evolving market. let's get a check of european markets an hour and a half into the trading session. losses accumulated from the start of the show. the ftse 100 down .9%. cac 40 down 75 basis points. the losses growing for the other major reasons as well. investors dealing with the weak invasion this on the back of the taliban taking control of afghanistan and the weaker than expected china data out overnight and the

spread of the delta variant driving concerns as well overall, a negative start to trade. what does it mean for bond markets? let's look at u.s. treasuries. a rally in treasury. investors looking for amount of safety is what it looks like 10-year trading at 1.26% u.s. futures what does it mean for stock markets. you have the dow jones industrial average looking to open nearly 80 points lower it is getting worse from the start of the show. fairly contained losses. s&p looking at an 8 point drop at the open. joumanna turning to covid updates french police deployed tear gas in paris on saturday as demonstrators took to the streets for the fifth straight weekend in protest of the recently intro tuduced health p.

japan's government extending the state of emergency until september and adding more states to the list. the surge in cases caused by the delta variant is behind the move the measures had been set to expire on august 31st. and the u.s. is facing a surge in the number of covid infections with many hospitals facing the risk of being overwhelmed. states are divided over mask mandates c nbc's kathy park filed the report >> reporter: in utah, the state's largest health care system is struggling to keep up. stretched thin treating mostly unvaccinated patients. >> full. completely full. this is not the place we want to be >> reporter: and nationwide, pedestri

pediatric cases are growing. 94,000 new infections in a week. as more kids head back to school recent outbreaks in georgia now forcing several counties to suspend in-person learning >> teachers cannot plan. teach the face-to-face students and teach quarantine >> reporter: the debate over vaccine mandating boiling over in kentucky, protests over requirements for health care workers. in los angeles, one person was stabbed during a clash outside city hall with pro and anti-demonstrators and blocking the mayor's residence for the first day of prove of vaccination at venue yovenues. >> it is about saving life >> reporter: the rule applies to customers and workers who can show vaccination status through an app or vaccine card >> if you are unvaccinated,

unfortunately, you will not participate. that is what we are trying to get across >> reporter: few details have been shared for non compplicompe restaurant owners say it is adding more to their plate >> the hospitality industry is the scapegoat or everything covid. i hopnvestment into the hea care industry has surged the greater investment is fueled by the rapid response to the pandemic to discuss the trends in detail, newman haack is joining us great to have you with us. as i was saying, the pandemic has shed a huge spotlight on the power and potential of bio-tech and bio-pharma.

how youhas this translated intoe sector >> good morning. it is great to habe here to discuss this this has accelerated we looked at bio-tech and medical device and tools and diagnostics as well. as you said in the introduction, the first half of 2020 matched the investment pace of 2021 of about $50 billion going in the pandemic is partly responsible for this it has shown for this. it created demand for drugs and treatments and for all care models interestingly, the one sector that really out performed among the total was health tech.

the only sector in the first half of 2021 out performed the biggest of 2020 with the investment of $15 billion in the half year mark compared to $10 billion for the whole of 2020. >> what kind of growth are investors expecting from health tech and what is the investment horizon of those interested in getting involved in health tech and what should they be thinking about? >> these are large investments by capital funds they are looking to a medium-to-long-term horizon. a lot of investment to alternative care and provider operations you typical sell into the established health care systems. so, you know, unlike perhaps some areas of software where you can disrupt from the outside and build an alternative ecosystem, within health tech, you have to work within the ecosystem. the time scales are longer in

many respect one thing with hybrid care and alternative care, when you have a disruptive state of affairs like the pandemic, it can greatly accelerate some sectors. we have seen large employees for example, including alternative care benefits as part of the health programs as part of the insurance programs that is greatly accelerating the change in business models in the sectors. >> we talked a lot about what a phenomenal year it has been for fund raising i want to ask about the landscape for exits and how the ipo landscape has also evolved in the last 12 months. i see in the report as well you are talking about the distinction of those exiting traditional ipo versus the spac group. there is disparity among the two. >> it is fair to say at the

moment there is not a lot of data on spac exits within health care just under 40 deals to date with spac the first half of the year is dealing with volatility in the market and generally with health care for various reasons it is difficult to compare the longer trend with ipo and spac it is difficult to make a conclusion on whether a spac is the right move versus ipo. what is true and demonstrated, this alternative route of forming a spac and finding the target is bringing new investment into the market as far as more traditional ipos go, we think we will end up similar to last year around 80 companies going down ipo it looks as though the first

half of the year is anything to go by, average proceeds will be a little bit lower that largely reflects the private fund raising market is so large, but these companies with the software industry are able to stay private for longer which reduces the pressure to go public in the first place and reduce the amount they need to raise when they eventually do go public >> a question on the geographic distribution how is europe and the uk faring versus the u.s. at this point? we are accustomed the deals done in and out of the u.s. where does europe stand? >> europe is a smaller market. it is a very important one and rapidly growing and catching up as well. you know, the uk within that is the largest market in europe

attracting 35% of venture fund raising into health care europe also has its fair share fewer in number of health care unicorns as well we have seen mega brands and medical device companies with dialysis which raised a quarter of a billion and a health tech company using artificial intelligence raising funds of over $400 million babylon, a large valuation as well with. and the company filing for a local listing at a high valuation. they are there we know the technology is there and if you look at the inflow of funds from europe particularly from the u.s., i think u.s. ventures are realizing there is

not just financial value to be had through the lower valuations in europe, but actually signs on par with the best in the u.s >> newman, before i let you go, i i want to get your quick thoughts on the meteoric rise of moderna. its market value rose from $6 billion to around $200 billion at its peak. does that rally make sense to you? >> it's a tough play i would confess it feels frothy. mrna has a long way to go with vaccine development. that is not to understate the fantastic work moderna has done. i look at that as the sentiment on the sector as a whole the prospect of what moderna can

do across the health care sector with mrna platform it is a competitive field, of course not the only company out there with this technology we will wait to see what happens with that. >> all right newman, great to speak with you. thank you for joining us on "street signs. still ahead on "street signs," china's port still remains closed putting pressure on the shipping industry we'll have more next

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only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ welcome back to "street signs. we have deal news. faurecia trading at the top of the stoxx 600 after agreeing to buy hella. it will end up with a 9% stake in faurecia. offering 60 euro a share the merged group would be ideally placed to capitalize on developments transforming the industry commodities giant bhp in

talks to sell oil business to woodside petroleum in a deal worth $50 billion. it offered the review of the oil and gas business worth between $10 billion and $17 billion. and hsbc expanded the reach into asia after announcing it will buy assets in singapore in a deali worth $575 billion. it will have an emphasis on the asian business. and german economic stabilisation fund to sell l lufthansa. you are beginning to see the unwinding of the airlines after

the pandemic last year that is beginning to happen in germany. a key terminal at the port in china remains port after the positive covid case further disrupting the global supply chain and putting the shipping industry under pressure. lack of shipping containers and blockage has seen the rates jump this year ahead of the christmas holiday season the ceo is joining us here this morning. alan, talk us through the significance of the port how much of a role does it play in global shipping and what could the ramifications be if the port remains shut? >> certainly ningbo port is one of the most important ports in the world if you look at the amount of cargo in the world

in terms of the vessels that call it? it is third behind shanghai. certainly, it is one of the absolutely central hubs in the container shipping network that said, it is important to understand that is not the entirety of the ningbo ningbo that is closed down. it is one of the ports in the peninsula. most of the port, somewhere around 80% is running at normal capacity one terminal has been closed all vessels calling to the port have been packbacked up. that is causing disruption >> it seems because it is just that one specific port, it is not going to have huge global ramifications. how will this fit into the broader context of rising shipping rates with the bottom necks and events that happened this year that propelled freight

higher >> the problem is that an issue like this, had it happened in the last ten years at anytime, it would have been a problem or annoyance. the ship would call with the boxes waiting to get out for the rest of the system, it would not be a problem w we had ten years of oversfupply. the entire system has been stretched. we have no slack that means smaller incidents are becoming bigger. ningbo is an important hub if the entire port was closed down, which cause ace risk with the one case that would be disastrous we had one close in late may or early june and that had significant ramifications. that forced rates higher

if ningbo was to close, that was the third largest port a heavier toll right now, it is a local problem. it could very quickly become a systemic problem >> alan, when you think about the magnitude of the price impact, i'm reading a report that suggests container prices from shanghai to los angeles up 220% over the last year. over $10,000 in the last week. what is the magnitude of the situation? >> honestly, nobody knows. the person who knows that number is lying i will not venture a guess there is an upper limit. that is the value of the content of the containers. $10,000 is the base price ocean

port-to-port price that doesn't take into account the surcharge to get an empty container. you have to pay a surcharge just to get a space on a vessel some cargo owners will see freight rates of $15,000 at least. the rates going inland that is purely shanghai to long beach. if you want to go to chicago, rates are high we are hearing people are paying $20,000 to $25,000 could they go to 100 it is not impossible at that point, half of the cargo won't most the point is we reached far past the level where every sane person said freight rates will never move we can go higher if shanghai or

ningbo would end up closing. i don't want to venture what freight rates will be. if one of the major hubs close, then certainly they would go up. not only that, it wrocould impat the prices of the goods. right now, the pure freight rate costs. if production costs, production costs go up. right now, it is manageable. a wider spread in china would be devastating for the ports. >> alan, i appreciate you. i'm giving insight into how we should think about the potential cost increase from here. i know it is a difficult situation to predict alan murphy. let's take a look at u.s. futures and how wall street is poised to open we have come down a little bit in the positive direction. dow jones industrial average now set to open 60 points lower.

we were looking at 80 points drop 15 minutes ago. losses contained nasdaq with an 18 point drop and s&p with a 7 point drop. investors are diffigesting the geopolitical issues that emerged over the weekend we will legalave you with the l pictures of the kabul presidential palace. that's it for us thanks for watching. "worldwide exchange" is coming up next. do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our

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it is 5:00 a.m. at cnbc. here is your top five at 5:00. markets kicking off the new trading week with the dow and s&p hovering at fresh record highs and cryptocurrency continuing comeback with bitcoin marching toward the $50,000 mark. the biden administration defending the decision surrounding afghanistan as the taliban gains rapid ground over there. back here at the home front, the race to va