to just a normal tycoon. he wanted to be the elephant in the room, and for a while, he made it. >> narrator: doug vaughan will be 77 years old when he is >> narrator: doug vaughan will be 77 years old when he is released.

point. this monday is pointing in the right direction.

most of the indices in the green. we are more or less taking our cue from overnight markets we will get to that in a moment. the ftse 100 is up .80% firmer we have minor basic resources trading at the bottom. cac 40 in france is up slightly. in the cac 40 and dax is languishing a bit in trading overall, you see the bias is toward the positive. let's talk about what happened in the asia markets. we had key data come out the composite is trading around flat the hang seng is down .60% we had weaker sales data that

has come through one of the reasons that commodities is struggling. the nikkei in japan is up 1.1% the nikkei now is at the highest level it has been since the beginning of the year. in response to the china data, the central bank cut the key rate for the second time this year in a bid to shore up credit de demand they lowered the lending to 400 billion loans to financial institutions to lending institutions they cut rates, but only by 10 basis points. the china economy slowed in industrial output and sales coming in below expectation. our colleague filed this report.

>> reporter: losing steam as beijing sticks with the zero covid policy economy slowed through june and all three indicators came in leaver than expected retail sales missed forecast by a large margin industrial output softened last month with weaker manufacturing pmi and fixed asset investment is a big supporter of growth and missed expectation and slowed from june. the bright spot in all this, the jobless rate came down slightly. youth unemployment stayed in double digits. recovery momentum slowed, but the officials say the job market is generally stable although the pressures exist and they expect the property secto

stabilize. new home prices fell at the fastest pace since september 2015 based on reuters calculations the pboc cut a key lending rate this morning, but analysts questioned the timing of that. an hour before the data dropped leaving them wondering if it is too little too late. in singapore, i'm sam badas. back to you. a delegation of u.s. lawmakers landed in taiwan on sunday, just 12 days after nancy pelosi visited angering china. the four-member delegation will meet senior leaders to discuss u.s. and taiwan issues nancy pelosi conducted a series

of discussions after the drills off the china coast. according to sources, the meeting with president biden and xi jinping would come on the tour to include visits to bali and bangkok to attend the asia pacific summit in-person attendance would mark the chinese's leaders first international trip in three years. i'm happy to bring in the chief china economy from hsbc. good morning to you. let's start off by looking at the data retail sales and industrial output is lower than anticipated. is this the sign the chinese recovery is not panning out as the senior leadership would have hoped? >> well, the data clearly meets

the market expectation it came as a surprise, but at the same time, it echoed the weak credit demand data last friday we think, you know, the strongest cap winds is the covid and responding measures ago well as the housing market. >> can i ask what the general outlook is here? is it a case so long as china is pursuing the zero covid numbers it will be difficult to get to those numbers expected >> to be honest, we think the zero covid policy that comes with economic costs. at the same time, if we look at the data in july, we see covid clusters spread out.

when we look at the data, the negative shock, it seems to be smaller in magnitude we see the supply chain disruption as we saw back in april. that means, you know, to some extent, the government implemented more measures. that helped to kind of reduce costs to some extent >> to what extent do you think the property slowdown is derailing the economy here it comes up a lot with the china macroeconomics situation certainly the central bank would not have reacted if there is not concern in the property space. >> i think the financials are gathering together and trying to come up with a solution for the housing market at the same time, i just want to point out this is very different from what we saw in the u.s.

about 15 years ago you know, the u.s. and china housing market fundamentally different in the sense that the two factors contributing to the u.s. subprime mortgage crisis. one being the poor underwriting. those elements are amazing in china. in that case, china has started in much better shape without so much risk floating around. that being said, we have seen a turn in the mortgage costs and others it is still very important for the financial regulators to come up with a holistic solution to the housing market >> what about the ten basis point interest rate cut today? how much of an impact would that have it is literally ten basis points >> i think this is symbolic for

two things for one, last week, the pboc released the second quarter monetary policy implementation report inside of that, over 50 pages of the report there was a one-page box discussing the potential increasing inflationary pressure it turns out lots of media coverage seems to focus on this box and saying that it might be the signal that the pboc will turn hawkish we did not agree with the assessment and last friday's report, we elaborated that the pboc will continue to support and being accommodating. this ten basis point cut is the pledge of the policy support for the second thing, we have seen, you know, pboc aware of the policy from the perspective

repeated it will emphasize and prefer to use quantitative instruments instead of hiking the interest rate. >> another area we spent a lot of time discussing on this show is the price of commodities, particularly the price of oil here i just wonder given china is the largest importer of crude oil, how have the higher prices derailed the recovery? >> we have seen this year around actually china is careful about the inflation pressure in terms of the energy mix, it is doing more on the coal production and renewable energy. i would say to some extent, higher oil price will become

kind of, you know, a headwind. i don't think this is a key bottleneck for whchina's recovey >> fair enough with the rising political tensions with the u.s. and china, we talked about the potential meeting with president biden and xi jinping, until that happens, there is an issue over the house speaker nancy pelosi visit. the state of relations between the two are dire because of the harsh words from the chinese almost threatening in that part of the world to what extent will that impact at all china's prospects going forward as it pertains to the tariffs that the u.s. applied on the chinese exports?

>> i think the escalating tension on top of the tariffs tech rivalry and export ban, that will become restrictive in certain areas for china. at the same time, this seems to be the new norm. the tension will persist the fact that president xi and president biden spoke to each other before the visit and the potential reported meeting in november that is minimizing the further escalation between the countries. >> all right we will leave it there thank you very much for joining us today chief china economy from hsbc. also coming up on "street

signs. aramco records the highest profits on record amid the bumper year with producers we'll be right back with that story. 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. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 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 coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

these folks don't have time to go to the post office they use stamps.com all the services of the post office only cheaper get a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again. wanna help kids get their homework done? get a 4-week trial plus powell, an internet a dconnection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. through projectup, comcast is committing $1 billion so millions more students can continue to get the tools they need to build a future of unlimited possibilities.

♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme.

welcome back to "street signs. the united states and switzerland can move to a free trade deal talks have stalled, but the two could make progress on sector deals and work on business in the pharma sector. the swiss is the u.s. number one market and richemont is urging shareholders to vote against the bluebell board seat. it does not believe it merits a seat given the small stake posea conflict of interest elsewhere, german chemicals henkel raises the outlook for the year

the first half ebit fell as higher prices for direct materials impacted production. and hellofresh, the meal hit company, reported record revenue for the second time this year. the online meal hkitmaker had a increase in the second quarter and has been able to bypass inflation. you see the stock is up 8 points today. and gas market regulator will announce the gas price levy today as it it looks to lift th prices regulators are expected to pass on 90% of the cost from buying gas on the spot market to

hous households the german finance minister is looking to wave the value added tax on gas levies. this is the picture we have been watching strong reaction today in uniper. it has been a very challenging year for the german utilities. germany's lindner is not in fae favor of the taxing excessive profits. he was worried it would open the tax system to arbitrariness. clearly, it is not a path that germany wants to go down as well and aramco posted the highest profit since going public three years ago coming in at $48.4 billion a 90% increase on the year and more than $2 billion above

expectations the number comes with the soaring prices and increased refining measures. a quick picture for the major oil makers today in europe you see it is a mixed bag. shell down .80%. bp up .20%. the picture has been positive in general for all of the oil companies posting record quarter on back of sky rocketing oil prices you can see there is somewhat of a moderation brent trading weaker wti down as well let's get to hadley who has been looking at numbers another bumper quarter for an oil company. what was interesting is they are looking to payout $19 billion in

dividends to shareholdersharehos the main shareholder is the saudi arabia government. what do they plan to do with the cash >> absolutely. joumanna, you have to think where we have come this was an ipo that was controversial in 2019. it follows the saudi mantra. put all of that money off the oil back into the pockets of every day saudis this is part of the 2030 vision. the saudi prince has been talking about being overly reliant on petrol dollars. these profits mean how much clout this puts behind riyad we saw u.s. president joe biden

visiting weeks ago an. the rumor is at some point in the near future, we could see president xi of china making the same visit taking a step back and looking at the profits, you remember saudi arabia is doing well even if oil prices are falling if they are above $80, this is good for the region and everything that happens in saudi arabia has a knock-on effect to other countries in the uae and egypt as well. you have to remember this doesn't just happen in a vacuum. listen to what my guest early this morning had to say. >> if you look at anyone producing oil and exporting it, it is a winner saudi arabia is the largest oil producing country in the world that is a major achievement. that is translating into higher w w windfall and revenue they are receiving dividends and

royalties on each barrel produced they are increasing with the oil prices the higher the price, the higher royalties. then the income tax. that trickles down in the economy. you see the forecast for saudi arabia is the only g20 country the list of beneficiaries can be long anyone producing or exporting gas is making money like never before from the high prices. >> this is a fascinating issue from the geopolitical and economic aspect. you have q2 numbers with a $21 billion budget surplus not bad so far in 2022 you have to think about this as a company. talking half net income soaring to $88 billion better than rivals the bigger question about what they see as coming down the pike

for the oil and gas industry in the report, joumanna, they said again and again we see oil demand continuing to grow this is what they are planning to do. >> you mentioned that which is interesting because the line from the governor that caught my attention. they could look to increase to 12 million barrels a day i know a big opec meeting is happening this week. tie that all together for us what is actually the likelihood that the saudis and aramco do to go down the path of increasing daily output >> so what we understand about this, joumanna, and the language is important we have seen this before pushed back by the saudis essentially what they are talking about is expanding maximum sustained capacity this is something they talked about a little bit before. when i sit down with the opec

secretary-general later this week, i'll ask about that. as you know, these guys consider themselves and told me they are the guardians of the market. so for them, they are looking closely at the demand picture. they are looking at demand from china. they are worried about what is happening with russia's invasion of ukraine and they are concerned about continuing to keep russia on side here for them, any questions of the production have to be unpolitical. this can't be about serving electric or winning a midterm. this is the overall needs of the market fr frankly, the overall health of their economies. >> hadley, thank you we are looking forward to the interview with the opec plus new secretary-general this wednesday. don't miss dan murphy on

cnbc.com he has done analysis of the aramco earnings. coming up on "street signs." global earnings have fallen this year all of the details after the break.

hi. i'm shannon storms bador. when we started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster and thanks to shipstation's discounted rates we're saving a ton. honestly, we couldn't do it without shipstation join over 100,000 online sellers who get ship done with shipstation go to shipstation.com /tv and get 2 months free.

good morning welcome to "street signs." i'm joumanna bercetche these are your headlines markets in europe begin the week higher after the fresh round of stimulus from china and positive earnings. u.s. futures lower following the four straight gains for nasdaq. the china central bank cut the key lending rate as it looks to prop up the covid economy after retail for july is below expectation. shares in uniper surge to the top of the stoxx 600 as investors await the announcement on consumers and industries aimed at easing the energy

costs. and aramco posted a profit in second quarter with the oil major benefitting a surge in crude prices. good morning welcome back to "street signs." we are trading more solid footing than half an hour ago. you see all of the indices are nicely in the green. this building up from gains last week the stoxx 600 ended 1.1% the momentum has continued of course, the same is the case for the u.s. markets as well

very strong week over there for wall street. today, we are seeing the ftse 100 in uk up .80%. some of the minors are lagging we have basic resources stocks at the bottom after the china data coming in disappointing on the retail sales and industrial output side. basic resources and commodities as a whole coming under selling pressures. ftse 100 in that index are coming under selling pressure. cac 40 in france is under pressure hellofresh is up more than 9% on better than expected earnings. we have autos and minors lagging in performance today we are seeing a bounce for the u.s. dollar. that is against every currency up here. the pound is trading weaker through the 1.21 level

you have dollar/yen with a stronger yen over the dollar the euro is trading weaker 1.0230 is where we are there as for european yields fixed income today not a lot of moment. the 10-year bund is below the mark the 10-year gilt is hanging in strong and the italian market is close today. it is at 3.05 above the mark that people have been following ahead of the september 25 elections. as for u.s. futures, this is the picture. you see all three majors opening up in negative territory

dow opening 116 points lower nasdaq is 63 points lower. s&p is opening 17 points lower we get retail sales numbers coming up, but results from target and others. that will give some strong clues as to how the u.s. consumer is actually faring in the inflation environment. elsewhere, this year has seen a decline in ipos with volumes falling 46% in the first half and proceeds down by 58%. that is according to ey which reported the biggest decline in the u.s. global ipo leader is paul, thank you for joining us what do you report the lower level? >> so far, the number of things we can consider. one has to remember last year, 2021, was a record ipo year for the last 20 years.

as a start, we are comparing a record year. with that said, what we have been seeing in the market is not just for the first six months, but actually in july things have picked up. when we compared july last year, we have 100 compared to 300 last july we raised $10 billion u.s. versus $40 billion last year it is difficult to launch an ipo when the stock market is very volatile the other reason is weak stock market performance the majority of the ipos launched in the last 18 months they have not performed well if the market becomes more stable and there is a more

stable performance globally, it is more difficult to launch ipos at this current climate with the investor sentiment. >> private markets work with a lag. once you see public equity drawdown, it takes a couple of months before it impacts private markets. let me ask you which one of these is the bigger driver the fact of the reevaluation with the stock markets particularly in the tech space or is it a structural phenomenon because it is difficult for companies to find a platform to ipo? specifically i'm talking about the decline in performance of spacs which were important last year, but now the door is closing a bit on companies that would pursued an ipo down that

route? >> technology sector is the leading sector in the ipo the last couple years. even this year when the ipo market is a lot slower that said, as you rightly mentioned, we are tight in liquidity and interest rate is going up now investors are chasing growth and looking at probably sustainable profits and companies probably with stronger growth perspective we have seen quite a lot of them coming to the market in the last couple years most of them, unfortunately, share price has performed badly. that hurts the investor sentiment. with the tight liquidity, investors are now more careful and choosey in allocating capital between more profitable -- maybe less growth

prospect, but stable and show profitable track record. those are more preferred c compared to last couple years. >> what are the sectors you have seen ipo we have talked tech a lot. given the draw downs in the market, are there others considered leaders in the space? >> we have seen health care and consumer staples in the last couple years one of the sectors that we see stood out is energy and renewable energy with the rising energy prices, some of the largest ipos we have seen so far of the year comes from the energy sector oil company or renewable energy or battery compocomponent.

these are the companies that have been able to attract the largest ipos some of these are largest ipos happening outside of the u.s. and traditional european and asian pacific market because of the strong energy prices that we have seen. >> one thing i haven't asked yet which is relevant to the investing environment is the higher interest rates everywhere central banks raising rates. to what extent does the general ipo market depend on higher interest rates environment if at all? >> for a start, increasing interest rates would effect the valuation. especially on technology companies. based on future projections of cash flow and actually growth. you know with the discounting and increase of interest rate will drive the valuation that is why we are also seeing some of the larger and probably

companies. they are willing to wait by the sideline and really wait for the right opportunity before they come to the market it is a strong pipeline. a famous company from the automaker and consumer products and tech companies waiting by the sideline i think they are probably prepared to wait longer to come to the market for a better and more appropriate valuation. >> fair enough thank you very much. we will leave it there paul go, global leader at ey. now u.s. republicans are intensifying calls to an fbi search warrant to allow the seizure of documents from former president trump's mar-a-lago home revealing details of the warrant would require approval of the u.s. federal judge which comes with increased threats and

allegations that the white house is using the fbi to harass the former president mike rounds told nbc's "meet the press" that revealing the documents would help the case. >> it is important you provide them with the opportunity to layout the case. i think it is very important, long term, for the justice department now they have done this, that they show this was not just a fishing expedition. they had due cause to go in and do this. they did exhaust all other means. if they can't do that, we have a serious problem on our hands >> democratic senator for the state of minnesota amy klobuchar says the search had legal backing maintaining that classified documents should not be inside former president trump's property >> it rose to the level of the search warrant that the federal judge approved we do know they were searching

for classified material. things that fell under the statutes they used in the search warrant was the espionage archact. another is you cannot destroy or take federal documents out of secure locations the former deutsche bank ceo anshu jain dies as age 59. he helped the bank expand to a global competitive and also coming up on "street signs. record-breaking summer temperatures and long dry spells cause drought across europe. we'll have more on that after the break.

why do nearly one million businesses choose stamps.com to mail and ship? no more trips to the post office no more paying full price for postage and great rates from usps and ups

mail letters ship packages anytime anywhere for less a lot less get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again millions have made the switch from the big three a 4-week trial plus p to xfinity mobile. a digital scale that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network and most recommended wireless carrier. that's a whole lot of happy campers out there. and it's never too late to join them. get $450 off any new purchase of an eligible samsung device with xfinity mobile. or add a line to your plan today at xfinitymobile.com

welcome back to "street signs. the uk labour party is looking to freeze energy prices.

it said the measure could be paid for by expanding the windfall tax on gas producers and it could improve inflation by 4%. and firefighters in southern france managed to halt the spread of the massive blaze in gironde. it forced thousands of people to evacuate their homes the fire has been fanned by wind and high temperatures in recent days the region was hit with fires in july record-breaking summer temperatures as well as unusually long dry spells have caused widespread water shortages. uk declared a drought officially last week with more water saving measures introduced in the coming days. we have more and uk has seen the

biggest drought in 50 years. what impact have they had? res >> reporter: the impact is high, joumanna we have become dry and arid. it may not necessarily soak in, but runoff with water with the ground being so hot. that would be a similar picture for farmers and in the east which has a lot the farming. it does mean that half of the crops of a lot of farmers may face a lot of ruin that is according to the environmental agency which is fearful that the drought they declared since last week with 8 of the 14 areas of the uk have declared a cldrought. it may impact farmers heading into next year

if we head into next year and we l plant right now, the farmers are saying the groupnd is not good for the seed and next year will not be as good and quality produced drops the fear is cattle may have to actually be taken to house earlier because there is not enough feed for the animals. that means the kind of poultry we get may not be as high or good as we are used to things are going to be a struggle particularly for farmers of course, we talk households and that means water shortages may be put in place. house pipe bans across more than regions than currently put in place. there are a few hose pipe bans at present they are looking at instituting that at any moment now that could happen as well.

the impact of all of this means if we don't get the right amount of food at the right stage, prices rise and interest rates are set to hit higher. it does put an lot of worry fo the bank of england with the rate around 15%. we saw growth in negative territory for the second three months of the year that could increase and keep going until late next year the boe expecting growth to then sit in recession territory until 2024 could that be made worse by mother nature who is not shining on england right now >> i want to zone in on the water shortage issue a stat jumped out from the economist over the weekend i want to bring it to the viewers and i tweeted it when polled in 2020, half thought the households used under 20 litres of water a day

the reality is the average household users 335 litres of water a day. 153 litres per person. way more than we expect to use there is a lack of self awareness of water we are using in the uk. clearly this is a very big topic because of the drought and the uk government is looking to introduce measures to help people cut down on the water usage. what are some of the measures? what can be done to cut down demand >> reporter: so, certainly is interesting because you could get a few people suggesting that 6,000 litres or kill ilitres of water used if you are to extrapolate those figure nos into a month, you wil get more than 6,000 ligtres how do you enforce a ban on

households using as little water as possible? remember, you are not sending the right amount of water to dams and farms they will have to look at how they increase the reservoirs will it be wet enough for the reservoirs to get water for the winter it will be difficult they don't expect the dams and reservoirs to have enough to reach spring next year a few measures will be put in place. what they may be is certainly going to be a question for them to have with a lot of members. especially those part of the drought association. >> thank you for that. i also realized you are standing in hyde park it is astonishing. it is all dry. you could be standing in a field of wheat thank you for bringing that

report the rhine river fell to new levels over the weekend as germany battles unusually hot weather. the country will see new measures introduced. we have our climate expert with us these heat waves are happening more often is there a link between climate change and heat waves? >> i think the scientific concerns means it is a strong link with the heat waves in europe and north america and south asia and china and the north hemisphere we understand the causes the real issue is the heat waves are more intense and occurring

frequently than models project the heat waves are running faster than we would have thought from climate models. we can an attribute this to the global warming we can attribute it to the high temperatures in south asia or uk this year. >> our colleague was based in hyde park and you can see it is yellow now there's no green left. we haven't had rain for a long time the thunderstorms are expected today. those are some of the visible impacts of the heat waves. talk through the less visible impacts and the knock-on effects of countries experiencing droughts and long dry spells

>> it is confounding to see the grass in england there are implications for water supply and drinking water and agriculture and crops and energy production on the water supply, it is clear in the uk and other parts of europe, we are seeing significant water stress that is beginning to effect ordinary urban residents. not just farmers we are seeing the lack of cooling water and thermo nuclear. this is the problem all over the world. we are seeing issues in germany now in the danube region with low water flow you can't carry cargo anymore which has big implications with the transport of energy, but agriculture and industrial quite a significant impact

of course, much bigger consequences we know for human health and high heat is a killer. it kills directly and often those until the stats come out of the next 6 to 12 months it is clear the water supply system has not been adapting fast enough. that is why you see water scarcity in england. it is a problem in southern europe as well where the extent of the problem is running away from the predictions of what we need to do to adapt. if governments kept up with scientists saying for the changes, what we are seeing now for us working in the field are confronting and concerning >> just a final question for you. the u.s. released the inflation

reduction act which includes a big portion of spending devoted to decarbonization is that a game changer for the industry as a whole and the u.s. and the world's largest economy is actively pushing this >> this is a game changer. the united states has been an unreliable actor this is the first time we have seen a stack of legislation come through to bend the curve downward for u.s. emissions. i think that is very, very important. i think more important in my judgment, it is the overflow the spillover expffect on other countries. othe other countries are holding back until they see what the united states will do now the u.s. is moving forward

with the legislation, despite the deficiencies, it will bend the curve. it will have a very positive impact internationally it is coming at the right time it is very late now as we have been discussing the massive heat wave and drought in europe this is the clear signal the u.s. has to move forward and aggressively and help bring the other countries that are slow with it. otherwise, these problems will get worse. we are 1.1 degrees warmer. devastating heat wave and droughts we have to crack on. >> bill harris, climate analytics. we will leave you with a quick picture for the u.s. futures that is it for our show. i'm joumanna bercetche "worldwide exchange" is coming up in a few moments.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig.

all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme.

it is 5:00 a.m. on wall street here is the "five@5. are we about to enter a bull market for stocks or will this leave investors heartbroken again? china central bank cutting interest rates big money and big oil. aramco with 90% jump over big profits. and bitcoin doing something we have not seen in months. the morning rbi has a random but interesting stat