e a knee and we can just call it a day. thomas: no, it would simplify my life. lemonis: alright, brother. ♪♪ ♪ good morning and welcome to "street signs" i'm joumanna bercetche with julianna tatelbaum and these are your headlines. european stocks rally alongside asia's rebound from last week's lows, but service and manufacturing activity in europe slows amid supply chain constraints and new covid protocols. rallies to the top of the stock 600 as private equity buyers reportedly start to circle the uk supermarket chain.

germany's cdu and are level in the polls with just five weeks to go until the general election as support for chancellor angle merkel's party wanes in the largest drop since 2017. >> translator: remaining 35 days, every hour to ensure the csu is strong every hour to ensure we shape germany well and lead it into a good future and that we do so, of course, with our future chancellor nato secretary general tells cnbc the organization is working around the clock to get as many people out of the afghanistan as possible blaming the failure of afghan leadership for the taliban takeover >> the speed of the collapse of the afghan government and security forces, but we also need to look at nato and our

engagement ♪ good morning again, everyone welcome to "street signs." we have a lot to get through on this show, but first i just want to bring you the eurozone flash pmi data for the month of august that we're getting just to tell you that the comp sit number has come in at 59.5, just a smidge below the consensus expectation of 59.7. but still, very small dip from the very high number that we had back in july that was almost a 20-year high for the overall business index in terms of breakdown, we have the services come in at 59.7 in august that is again slightly lower than the consensus of 59.8 and we had the manufacturing index also come in at 61.5 versus the consensus of 62 a little while earlier we had the individual breakdown for germany and france so just to tell you those numbers the german pmi flash

composite came at 61.6 that was a disappointment. and that was primarily driven by manufacturing pull back in germany. so that came in at 62.7 versus the consensus of 65. and france it was the opposite story. we had again the flash composite come in at 60.6 versus the expectation of 62.4. but the disappointment was led by services and not by manufacturing. but putting it all together, business activity in the eurozone does remain extremely strong in terms of some of the communication that we've received from the ihs market, they're quoting that the economic recovery retains an impressive momentum in august. pmi dipping only slightly. so we'll be hearing in a little while from chris williamson who is the chief business economist at ihs market just waiting for him to come online one thing i think is worth

flagging, julianna, yet again, this has been a consistent theme the last couple months, talking about supply chain delays continuing to reek havoc, leaving companies unable to meet demand and pushing firm costs higher, so this is probably the third or fourth month that we have mentioned specifically about some of these supply chain disruptions. and that is beginning perhaps to have a little bit of an impact on some of the manufacturing output going forward >> it certainly looks that way, joumanna, that these numbers would have been even stronger had we not -- had we not been facing these supply chain issues i think that is certainly a notable feature of these pmis. the other thing is the impact that the spread of the delta variant is having on business optimism moving forward. you know, are we approaching a situation where the supply chain issues perhaps begin to ease at the same time, though, optimism about the future begins to wane. what does that mean for where we

go from here do we actually stabilize around these levels or could we see activity slow down further from here it seems to be a story of the services sector beginning to take over in terms of drive -- what's driving the recovery. but the services sector we know very, very impacted by restrictions and what is happening on the virus front so it does call into question whether we have seen the peak in these pmis and what -- how these supply chain issues evolve moving forward and business sentiment moves going forward given the uncertainty around the virus itself, joumanna. >> the actual input price index is down from the july record high of 89.2 so there are signs that perhaps some of these price pushes are beginning to moderate. 89.2 in july to 87.3 now, but supply delays, which is people's -- company's

expectations of how long it's going to take to actually procure their supplies, that index is near a survey low so you've got to make a distinction between actual input costs and company's expectations of how quickly they can source some of these inputs as well >> well, joumanna, let's bring in chris williamson now to give us a little more detail on these numbers. chris williamson, chief business economist from ihs market. chris, great to speak with you again. joumanna and i just going through the headlines here it looks as though we are continuing to see supply chain disruptions curtail production and really cap the recovery especially in manufacturing. is that a fair assessment of the current sniituation >> yeah, that's what it is looking like manufacturing being hit. the official date tends to get a bigger hit from these pmis from those supply chain disruptions

because they affect such large manufactures like the auto sector, we know already lots of notifications about all sorts of production being hit in september. so this is going to keep rolling. and, you know, it's not getting any better that's the sign here, these supply constraints, yes, they're not quite as widespread as they were a couple of months ago. we're seeing some easing in the race at which they're developing, but they're still getting worse and worse and worse. so this is additional problems to the ones we had before. supply chains really dominating the whole manufacturing sector across europe now and curbing that growth somewhat >> well, interestingly looks as though the services sector, while the manufacturing sector is continuing to struggle with these supply chain issues, the services sector is getting stronger with growth in the service sector overtaking that manufacturing sector for the first time in the recovery from the covid pandemic

and this is at the euro area level. i'm wondering how stable that recovery is given the spread of the delta variant and the impact that may have on optimism and confidence from businesses in the future >> yeah. good observation yeah, we are seeing that optimism start to come off the boil now, some of that is only natural because obviously in the early stages of a recovery like this, optimism is bound to be very optimistic. it's just starting to wane a little bit from those highs from that high base but the delta variant is starting to become more evident in the reasons companies are giving us as to why they're perhaps not so perky about the outlook and we're seeing things like the need for covid passes, especially in france being cited

by firms as probably going to limit some of our growth compared to what we thought we were going to get if these sort of restrictions are applied. so the delta is definitely curbing growth somewhat, but these numbers are still very high in terms of these pmi growth rates it's very rare for these indexes to stay at this level for long simply because it's a surge in growth being recorded. so some cooling is nothing really to worry mabt what we want to see is we want to see these numbers hold at these levels sort of late 50s, maybe into the 60s for a nice, long period of time and if we can sustain that, then recovery will be a good one as we go through the second half of this year which it all seems to be lined up for really yes, there's supply constraints, but very importantly jobs growth is accelerating. so it's the second month we have

the best job growth in the eurozone for two decades so they have the confidence to rebuild their work forces, to rebuild capacity, to meet demand if that happens then supply demand comes into rebounds nicely. >> we talked about the supply chain disruptions but at the end of the day, these are still really strong numbers. the july numbers blew it out of the park because they were so strong the strongest numbers in 15 years for the composite, the strongest numbers for 20 years for services yes, we've dipped a little bit, but just to contextualize it, chris, this is still showing that business activity within the eurozone is strong despite the supply chain head winds and despite the prospect of a slow down in growth because of the delta variant. >> indeed, yeah. don't lose sight of that still very, very strong. and that obviously has an implication for inflation as

well so, the stronger this growth is and the more these supply constraints are for, then the stickier inflation may well be we have the additional signs already. i mean, if you look at these flash pmis from australia and japan earlier today showing more production constraints due to the delta variant, the july pmi showed asian manufacturing being hit starting to actually fall in many countries as the delta variant is curbing production. so the concern is that supply is going to remain constrained for quite some time, especially in -- from supply chains from apac that's going to cause these problems to persist. while they persist price pressures will remain high that's the concern at the moment we need to being look at. >> julianna, before you came on the input price index dipped marginally from the july record

at 89.2, we're at 87.3 is this a positive sign? is it also showing up in terms of how businesses are thinking about the future when it comes to overall input costs >> yeah. again, i think come from extremely high levels and even in germany you have some upward movement in the price indexes again. you know, the manufacturing price index 93.7 it can't really go much higher than this. we've never seen anything like this before in terms of industrial price pressures coming through and what we're also seeing is while in other countries you might see some soft those material price pressures starting to ease off what we're seeing is more references to wage growth creeping up especially in the service sector now, this may be a shorter phenomenon as companies scramble to get work force numbers up in the immediate aftermath of the height of the pandemic but if that persists, linked to

lingering material price rises, then the whole cost base looks to keep rising for some time to come >> chris, in recent weeks, the data coming out of china has been a point of concern for investors. export growth factory output retail sales all missing expectations to what extent is that showing up in these numbers? >> well, that's showing up largely in the supply chain constraints. the shipping of materials out of asia into europe is still getting lots of roadblocks huge problems getting enough materials, getting the shipping to move those materials even if you can find a producer that can supply them. so global supply chain is still in a complete mess and there's no sign of that ending any time soon we have not got china data for the pmi yet for august

we await that. but the prior numbers we had accurately predicted this disappointing run of data that we've had through the summer for china. it was all there in the pmis suggesting that specially the delta variant, the lockdowns, the shutdowns were hitting production in china and indeed hitting service sector growth as well china is slowing that's all been -- going to be very interesting to see if that persisted into august with the final numbers. but, yeah. quite worrying signs there about the extent to which china is slowing. >> really interesting color. chris, thank you for joining us today. chris williamson, chief business economist from ihs market. ♪ germany's social democrats are now neck in neck with the christian democrats, according to the latest polls. this with just over a month to go until the federal election.

it follows a series of gaffes committed by cdu leader and the greens along with public anger about last month's devastating floods and the situation in afghanistan. speaking during a special election event on build tv, chancellor candidate said he could still win over more voters before the election on september 26th >> translator: i find that the party should have more humility in how they approach the voters and the support they received. i still very moved by how many entrust know be the next leader. it's something very moving this is about very difficult and important position for this country and for europe i see how many people want to vote for the spd and still rooting for more than just support. >> meanwhile, cdu candidate told the same program he's convinced the party can once again climb above the 30% mark when pushed on the covid policy, he pledged not to impose another

lockdown on the country. >> translator: there are those who want us to continue to be careful. there are also those who are still concerned and those are still in hospital intensive care units. so i insist we must continue to advance with the vaccination program. for those who are vaccinated there should be no more restrictions and should not go back into lockdown >> let's go out to annette with more on the latest in germany. annette, summarize for us what exactly is underpinning this positive momentum we're seeing in spd and at the same time where things have gone so wrong for merkel's party bloc. >> well, i think to start off with the popularity of the spd, it's very much tied to the popularity of olaf if you ask germans who should be the next chancellor, 35% of those asked say they want to have olaf at the top of the

country. only 12% seen armin as a suitable candidate for the chancery the weakness of the spd is tied to the candidate armin is widely seeing not being the right fit, not having the right character, perhaps not having capacity to represent germany in the world and that is something olaf has already shown he's able to do, for example, the marginal tax he has brokered and also kick started from germany and his sort of how he actually handled the flood catastrophe was widely seen as much more positive than what armin has done with joking on the side. so i guess that's the main problem. but, the race has just started

we are five weeks into the election over the weekend, the sdu kick started the fiction election campaign that angela merkel also very vocally supporting armin laschet as the right candidate the spd is now gathering momentum so coming back from the summer break, i think the next five weeks will show who actually is able to get the most votes and also to form a government because it's not clear also which coalition was then govern germany, whether it will be a socialist -- social democratic elected government or a christian democratic-led government that seems to be the two government options right now. >> thank you for breaking that down for us, annette it's worth noting to anyone who

is watching the green's party dropped in the polls as well to around 17% so, really at this point the race seems to be between the sbd and the cdu but we still have five weeks to go. let's talk about major corporates today the stock is up well over 12 percentage points today, trading up they are eyeing this as the next big takeover target in the uk. now according to the sunday times, apollo is exploring a bid for the supermarket group if it's left out of the deal to take the rival chain morrisons private. now, morrisons accepted a 7 billion pound offer from rice last week. but, it consortium led by softbank backed could still raise its offer. the times reports that apollo remains in talks to own the countered by, but could alternatively target sainsbury

a lot of moving parts there. the bid seems to be contingent with what happens with morrisons. the point is the interest is there and private equity have been circling around many of the uk retailers we're seeing a very strong reaction up 12 percentage points well, another company we've been watching very closely, two of them actually, vonnovia has launched an improved offer for 19 billion euros this would be the largest-ever deal in european real estate a one year row increase over the last month's failed bid. the company said this offer is, quote, the best and the final offer. so let's see about that. this is the share price reaction today. deutsche weaker, .3 of a percentage point and vonovia up.

the trend has been pretty positive the stock up 14 percentage points. and finally, looking to expand into china, legal general. the uk's largest pension provider is attracted to the country's demographics the move would play into the company's plan to enhance its global footprint with asia set to play a major role very interesting timing coming out of legal & general, especially with everything going on in china and the major pullback that we've seen in some of these hong kong listed chinese equities but speaking of, risk is back on for asian markets as stocks bounce back from last week's lows we'll get some analysis from singapore. we'll be right back. ♪

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♪ welcome back to the show, everybody. let's check in how european markets are fairing. for a change, all majors trading

in the green after a torrid week last week for global stock markets. the stock 600 ending the week down 1.5 percentage points that is the worst since february even though we managed to eke out a positive session on friday but the handover from asia was positive all of these indexes are trading nicely in positive territory if led by the french index up about .6 percentage point which is interesting because it was the worst performing index last week ended the week down about almost 4 percentage points last week with luxury getting majorly hit on back of ramifications from china which is a very interesting linkage between the european companies and what is happening in china let's not forget that we had the pmi flash data for august come out very strong numbers. although aslight dip from wher we were in july and about five minutes we'll get the uk pmi numbers as well. that will be a driver for the

ftse 100 no doubt european markets are taking their cue from asian markets. very robust performance overnight. let's break down the overnight action matt >> hi there, julianna. yeah, very robust session indeed but some of the markets ending off the highs of the session, so we did see a little bit of lat selling pressure in the day for a number of these major markets. but if we give you a look at some of the key ones, north asia was particularly strong. the japanese market closing up around 1.8%. south korea up 1%. taiwan market up around 2.5% we had a really rough end to the trading week for markets across the asia pacific on friday when we saw the hong kong market fall into bear market territory, 20% decline from the mid february high. but a bit of a recovery today on the back of what we saw on wall street on of course, friday and of course markets and investors looking forward to jackson hole

later on this week but let's give you data about the hong kong market, that's the one we were really watching today. up by more than 2% at one point during the trading session the market ending up by just over 1%, 259 points higher, managing to pull itself out of the bear market territory i was telling you about which we saw on friday. of course, remember this market really been weighed down by a lot of selling pressure in a number of those mainland chinese tek companies listed in hong kong on the back of the regulatory issues there. we saw a big bounce back when it comes to a number of those technology names today and the index that tracks that, ending up by more than 2%, in fact, but we were up by 4% earlier on in the session so you can see just how much we unwound throughout the latter part of the trading day. also want to show you a little further south in new zealand because when it comes to covid and this part of the world we are continuing to see numerous lockdowns and rising cases and new zealand the latest country to extend itself lockdowns until

the end of the week. that's its nationwide lockdown and the city of auckland until next week as we see rising case numbers in new zealand this coming out as the new zealand market closed. we have a 1% gain. but that is the story in asia, positive start to trading week back to you. >> of course, matt, we're watching the covid situation in australia very closely as well they seem to be going neck in neck, similar situation to what's happening with new zealand with that community transmission definitely something that investors will keep a keen eye on matt from singapore. julianna, i was out for the last couple days of week last week and i was really surprised this morning to come in and see just how steep the declines were in some of these stocks, particularly some of those luxury stocks they mentioned remember, these have been some of the highlights of the

pandemic but things have changed suddenly and quite dramatically in the last week or so because of their association with china people i think are beginning to get a bit worried not just about the regulatory crackdown but also about the china macro from here and what that might mean for the rest of the world and any company that has linkages there. >> you know, joumanna, when you left last week mid week europe was outperforming the u.s. and things took a turn looked like europe was just catching up to the u.s but i think you're absolutely right that this weakness that we've seen come through in europe that's hit the luxury sector particularly hard is largely coming from this change in messaging from china. huge emphasis on common prosperity and evening out the income levels across the country. investors wondering they need to reassess their strategy when it comes to investing in china.

and at the same time, the macro data coming out of china has begun to weaken as well. things like exports, retail sales coming in lower than expected in the most recent data so also on the growth front, china concerns weighing on sentiment in recent days i would say, joumanna. >> we're actually about to get some pmi data from the uk, which should give us again a bit of a picture on how some of the pmi numbers are evolving from here let me bring you to them the slash composite in the uk has come in much lower than where it was in july july was 59.2. the uk number has come in at 55.3 flash manufacturing came in very close to where the july number was, so 60.4 in july, 60.1 in august the major disappoint in services r5 5.5 versus 59.6 in july concerns over delta variant but also joumanna, it could also be

a function of this pandemic that we talked about. obviously since then, the government has relaxed some of the requirements for people who come into contact with other covid positive individuals to self isolate that had a big impact last month and having a big impact in the first couple weeks of august as well >> really interesting to see this services numbers come in. there is a little bit of color coming in from the market who puts together these indexes. saying that despite the covid-19 containment measures easing to the lowest since the pandemic began, rising virus case numbers are deterring many forms of spending, notably by consumers and have hit growth via worsening staff and supply shortages. so starting to feel the effects of the current phase of the pandemic on activity here in the uk joumanna >> definitely. and we're getting a marginal reaction in the pound but certainly something economists will be grappling with and

thinking about in coming months. we'll cut to a quick break, but when we come back, also on "street signs," world leaders take stock of the crisis in afghanistan with thousands still attempting to flee kabul and the u.s. a week away from full withdrawal we'll be right back. ♪

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♪ welcome back to "street signs," everybody i'm julianna tatelbaum, with joumanna bercetche and these are your headlines. european equities rally alongside asia as stocks rebound from last week's lows, but services and manufacturing activity in europe slows amid supply chain constraints and new covid protocols. sainsbury rallies to the top of the 600 germany's cdu and spd are levels in the polls with five weeks to go until the general election as support for chancellor angle merkel's party

wanes. >> it is by fighting in the remaining 35 days every hour to ensure the csu are strong every hour to ensure that we shape germany well and lead it into a good future. that we do so of course with armin as our future chancellor. >> and u.s. vice president kamala harris says stability of asia is crucial importance as she kicks off a five-day visit with southeast asia with strained relationships with china. >> we reaffirm our enduring relationship to this country and in this region and to re-enforce a shared vision of a free and open enindo-pacific region. ♪ let's check in on european markets a solid day of green as you can see across the board nice handover from asia, bit of a break from some of the price

action we had last week where many of these global stock market indexes were witnessing heavy, heavy declines starting with asia with indexes there down anything from 3 to 5 percentage points. the stock 600 in the uk was down about 1.5 percentage points. things are turning around slightly if not fully recovering the losses from last week. the ftse 100 just about 7,100. we managed to breakthrough the 7,100 level up about .3 percentage point all eyes on sainsbury. up about 12 percentage points. so right at the top of the stock 600. we just had the pmi flash data come in, though. disappointing relative to expeck takes and showing a notable drop in the services component versus where we were back in july something to watch out from the macro perspective. france up about .6 percentage point points small rebound in some of the luxury names with the likes of lvmh and carrying up 2 to 3

porridge points but they fell about 10 to 15 percentage points last week. so, not fully recuperating the losses and definitely something that investors are keeping a close eye on especially with their linkages to china. up marginally about nine points or six basis points and there we're watching the political landscape very closely with those new polls suggesting that sbd and cdu are tied when it comes to overall favorability. let's push on, though, and take a look at how commodities are fairing this morning it was a really terrible, terrible week for the commodities complex week last week we had the oil trade down as much as 9 percentage points brent down about 8 percentage points the worst weekly performance of 2021 last week. but you can see we have recovered somewhat this morning with brent up about 3 percentage points and can see this is pretty much a pick toe graphic

depiction of what i was just driving. it was a very heavy week of trading. here investors are concerned about the rise of the delta variant, the slowdown in china and potential slowdown in economic growth as well as the increase in supply all those things together are weighing on the oil complex. switching over to bitcoin has managed to breakthrough $50,000 over the weekend so this is where it is right now. 50,170 some positive news for the crypto currency now at a three-month high with paypal launching a digital asset so customers can buy and sell crypto on the paypal app and coin base also recently announcing they were looking to buy about $500 million worth of the crypto currency. positive developments there but of course still far from that $64,000 i think it was $64,000

high that we had back earlier on in the year. u.s. futures, this is the picture for u.s. markets and the picture is pretty positive we've got s&p seen opening up in positive territory up about 12 points higher many tch dow 120 higher the tek index, naz sdaq up highr the big focus for the week will be the virtual jackson hole summit and whether or not mr. powell is going to go down the route of announcing a tapering, huge macro questions for investors this week. julianna >> thanks, joumanna. g7 leaders are set to discuss sanctions on the taliban in an emergency virtual meeting due to be held tomorrow british prime minister boris johnson is expected to urge the u.s. to extend its august 31st withdrawal deadline with thousands still attempting to evacuate the country while american troops are still on the ground at least 20 people have reportedly died amid the on going chaos at kabul airport

meanwhile, washington has enlisted commercial airlines to help with the evacuation efforts in its first use of a civil reserve fleet since the 2003 iraq war >> this is a voluntary program for our commercial airlines. and we're grateful for those airlines and the u.s. carriers who are supporting us. this effort will only use three or four planes from each of the major carriers, vast fleets of aircraft so there should be no affect or minimal effect on commercial air travel and we'll stay in close coordination with our partners to mitigate any impact these civil reserve flights will be helping facilitate the safe movement of people from staging locations in transit centers like qatar and germany to the united states or to a third country. none will be landing in kabul. >> well, our colleague hadley caught up with nato secretary general stoltenberg and asked him why western powers seemed

unprepared for the current scenario despite already decided to withdraw from afghanistan. >> there are some hard questions to be asked about how this mission was finalized or how they ended this mission, therefore i have stated and initiated that we will have a lessoned learned process in nato to look into what went wrong we were very clear about risks of ending our military mission, but what we didn't anticipate, what came as a surprise was the speed of the collapse of the afghan government and security forces but we also need to look at nato and our engagement and hard lessons to be learned. >> exactly, the speed of the collapse is what shocked many observing the situation in afghanistan. and very happy to bring in the head of global political strategy tee narks always a delight to have you on the show thanks for joining us.

let's just start off with the emergency g7 summit boris johnson called for tomorrow. how do you think other g7 countries should be thinking about what has happened in afghanistan and particularly america's desire to pull away from having such a global role and this didn't start with president biden. obviously started back in the days of obama, accelerated under president trump and now we're in the situation we're in afghanistan. but, does this make the u.s. a less reliable ally as far as the g7 are concerned >> thanks, joumanna. well, of course, the engagement with afghanistan goes back 20 years and so, the nato secretary general's comments more salient why was it all such a surprise this is awkward for boris johnson as the uk holds the g7 presidency we haven't quite got to the bank

holiday. the pace of events took everyone by surprise. and the reality is that for some years now as most clearly evidenced by the uncoordinated response to the pandemic, the leading nations of the g7 haven't been able to agree on a common framework for approaching very many problems i think they will want to be seen to be acting in afghanistan to prevent perhaps the worst of a humanitarian crisis, but what i think is not appreciated as much as it should be either by market participants or by the g7 leaders is how this event with the fall of afghanistan could be quite a pivotal one for political risk in our own domestic environments. >> well, front and center now the political narrative is the talk of another potential refugee crisis, similar to what we saw back in 2015 where europe

accepted more than 1.5 million refugees, 1 million alone going into germany and that has been a major topic of debate over the last couple of days in europe and also in the u.s. is it your assessment that the current situation could be a mirror image of exactly what happened in 2015 or is it a different situation >> well, i mean, let's remember that in 2015 it was immediately -- the crisis was immediately sparked by the syrian refugee crisis, but what happened was we had joining those flows of people people coming from the horn of africa, iraq and afghanistan and elsewhere taking advantage of the opportunity to seek a safe haven. we have global refugee flows as opposed to economic migrants at 40-year highs at the moment. and again, a lack of coordinated policy

turkey holds the key in many ways to preventing that -- nose flood gates opening again as we're on the eve of german elections in september and france coming up european leaders will be keen to avoid floods of people even though hasten to add in hindsight the syrian refugees have been well integrated into germany. that policy isn't necessarily the failure that many like to think it is. but it still represents a political risk that g7 leaders don't want as we head into an election cycle >> tina, what do you think china and russia are thinking right now after the u.s. withdrawal from afghanistan and all the fallout that's come with it? >> well, i think that's really important because you know watching kind of my fellow foreign policy security policy commentators, there were great

pains to emphasize that the motivation behind u.s. policy withdrawal from afghanistan was to end the unpopular and probably stalemate of the forever wars and to focus on the most pressing gentlemen owe political problems and that of course is the u.s./china relationship so from that perspective, you know, this decision amounts to a move toward focussing on what really matters and that's competition and potentially conflict with china and how to deal with it, but one of the great take aways for other countries watching the west during the pandemic was this failure to act the disjointed response, china and russia believe that the u.s. in particular and europe as well are really disintegrating empires and the pandemic has

hastened that. there was an old saying by the predecessors of the taliban that said they have all the watches and we have all the time i think that observation is a useful one here as china and russia can watch and see the u.s. and nato struggle to come up with a response and at the same time they both have strategic interests in afghanistan, indeed in iran as well which borders afghanistan and the middle east where russia has gained a foothold over the last decade. >> tina, fascinating hearing your thoughts there. just lastly connecting all of this to markets, you've made an interesting point in your latest research that it's been a while sinister rorism and the threat of terrorism featured high on risk manager's matrix of potential risk for financial markets. now with the afghanistan falling into taliban hands, how do you expect this to affect market

participant's behavior and even investment decision making >> it's the perfect example of what a i call a pivotal event but doesn't constitute an event risk itself. fall of kabul is not going to move markets but what's clear is we're going back to the days of failed states and security vacuums where from attacks can be launched remember it's not just the taliban taking over afghanistan, it's isis also likely taking advantage of that space. we have had very few terrorist attacks on our own soil in the last decade. i think security services around the world will be more vigilant in the aftermath of this the geopolitical implications are going to reverberate for some time. it isn't going to be a single

event or a trigger, but opportunistic actors are also going to observe that if they have strategic patients they might just be able to outlast the west >> tina, as always, a pleasure to speak with you. thank you for joining joumanna and me tina

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♪ welcome back to "street signs. i want to quickly draw your attention to european sovereign bond markets seems as though investors are selling sovereign bonds this morning perhaps in favor of european equitequities we have the italian ten-year bond yield rising. germany's ten-year bund rising to one-week high up about 3 basis points on the day.

so fairly homogenous moves. elsewhere, u.s. vice president kamala harris has used her first speech in asia to call for a free and open indo-pacific region we are joined from singapore vice president is there for five days, i believe, and is no doubt going to field a lot of questions about the u.s.'s commitment to the region after what we have seen unfold in afghanistan. >> reporter: that's absolutely right, joumanna. it's a tough time for this trip to go ahead. had it happened two or three weeks ago, we would see a completely different joint news conference this afternoon because kamala harris and singapore. both had to field a lot of questions about afghanistan. that topic looming large over these talks. the response from the u.s. side was certainly we are, quote, singularly focussed on evacuation at the moment kamala harris also talking about how president biden had shown emotion about the situation.

meantime, prime minister announcing that singapore will donate an air bus 330 transporter plane to help with the evacuation efforts out of afghanistan and talks about the on going coordination efforts and collaboration that singapore has had with defense forces both the middle east, central asia and state side as well now, this coordination generally between these long-time friends what they're calling enduring and committed relationship, that was really the topic they wanted to focus on with this news conference across a whole range of news topics climate change, it's no longer about change, they've agreed a dialogue going forward on that then, of course, public health that dominated as well harris talking about singapore's, quote, commendable efforts when it comes to vaccination but saying that all countries need to do more. and then also, of course, when it comes to defense, and security generally, china was the word that was not really mentioned at all but the inference was there. we've been speaking to

geopolitical analysts throughout the say don't expect to hear china mentioned by name. singapore in a tough position to balance relationships both with washington, d.c. and beijing, trade and investment goes both directions here. but for the u.s., it's about staking a claim in what they call the indo-pacific region here in terms of defense in terms of security. harris was boarding a u.s. ship. we await those pictures. back to you. >> talking about an elephant in the room there, not mentioning china at all on this trip. thank you for the breakdown of what we've learned from the first day of kamala harris's trip in the southeast asia region. but we'll leave you with a very quick snapshot of the u.s. markets and the positive open that looks like that's going to ensue. that is it for our show today. "worldwide exchange" is coming up next.

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it is 5:00 a.m. at cnbc. here is your top five at 5:00. stocks looking to bounce back coming off a very rare down week futures, they are higher so what will be the driving force right now? bitcoin driving higher back above 50k as cryptos mount a comeback the fda reportedly ready to give pfizer's vaccine full approval could that drive a new round of shots? the afghanistan disaster, president biden changing course, saying the u.s. may stay in the country longer as more american