that's for sure. i know i'll see her again someday. that's what keeps me going. [music playing] ♪ ♪ good friday morning. welcome to street signs. these are your headlines. officials step in to step up the currency, setting get higher than the daily fix that was expected for the fourth day running. beijing fights and escalated crisis of conflict. >> losing more ground in the final day of the week.

china fears as best ways on investors. >> weighing on uk sales as volumes followed by double. bearish moose spills over into bit going. following is much as 9%, much of its gain since june after space x reportedly sales off it's spendings. ♪ ♪ more overnight pain. these attempted efforts out of china, markets have been rattled. the roads second largest economy all week, let's break down the latest news. china center-right -- central

bank, setting its latest midpoints much later than expected. 7.20063 percent per u.s. dollar, that is the furthest away from expectations this year and comes after hitting a nine-month low earlier this week. the daily fix has now been significantly firmer than expected for 4 straight days. we will tell you about pboc's attempt to rein it in. another troubled chinese firm have received home visits from police urging them to refrain from public protest. that comes after the firm repeatedly told investors it needs to re-adjust its debt. missing payments on multiple product based on this week. the final story we are looking at this week is to do with ever

broad. the group has filed for bankruptcy protection in new york, which protects the company . evergrande in 2021, shining a light on the wider property debt crisis. it had $330 billion in liabilities. shares have now been suspended for almost 18 months. this is what we are watching from overnight. the reaction, as you can see, has been negative once again. shanghai down 1%. this is also coming down, as well. the hang seng, down. x japan, a nine-month low. we've gone about 3% as a lead for the whole.

let me just say the week to date performance. here, you can see the hang seng is down. of course, the property sector continues to be in focus . and then the shanghai also sits down 1.8%, as well. despite talks, more stimulus measures have been coming. will it be enough? the markets are telling you, no. we have seen a massive, massive fall out of chinese equities this week. this get to our first guests. roger jones, good morning to you. from where we are sitting right now, it feels very difficult to construct a positive taste for what is happening the second half of the year. what sort of effect do you think it will have on the global economy? >> absolutely. i think it is the big uestion at the moment. given the size of the chinese

economy, the importance. we are actually starting to see some of the reports recently talking about some of the challenges in china. i think it's been a big hurdle for the market. this is in terms of earnings, numbers, their growth trip. i think it is a big challenge for markets. we have to see if a policy directive can be effective there and actually draw some shorter-term growth. >> everyone i spoke to was quite negative on china and what is happening. i think it is pretty obvious that this hasn't panned out as analyst start. many expectations for chinese growth this year, is that negative narrative thing adequately affected in where

stock markets are trading right now? >> you know, it is probably not china alone. it is probably an accumulation of several factors. the expectations in terms of china, that has definitely started to -- or chinese exposure. it definitely struggled a little more as of late. i think the market has caught on to this. i think also, we are seeing a global showing. also as we go to the expectations, it becomes a little bit harder. in the u.s., especially. >> this is still 9% of its all- time high. it is about 14% already this year. is the good run of the year over? what is your outlook specifically on it in the second half?

>> yes. certainly, we had very low expectations. going into the second half, he gets a lot tougher. these extended double-digit earnings, what that would do into 2024. again, looking for about 12%. the market is ooking for about 12% earnings growth. that is quite difficult to get there. probably coming to the stage where those exes savings are spent by the consumer. is actually going to start after a long lighting effect. ultimately, it does become a lot tougher in the second half of the market to make headway. i think we have probably seen that given the strong first half, some of the returns where the very much first half. >> what are you recommending? what should investors be doing

right now? >> i think the first part of it, the structural -- is still coming through. there still structural growth in markets. artificial intelligence, machine learning -- there has actually been a big earnings and pacs. there is growth. i think it is an encouraging message. we've been quite cautious on it, and more on the structural side. i think the exposure to that should do well. on the oversight, the more of the -- approach, at the beginning of the year, they are now much more relative. having some of this alongside the structural growers, and it makes sense.

that should certainly create good return profiles. >> we have been watching this very closely. it continues to drop, despite some of what we are seeing in global markets. is it an opportunity to lean into buying some of these cheaper option trades? at this point? >> yes. that is a really good point. they were levels unseen, in terms of pricing. we side at the beginning of the year. the fear of missing out that first half of the year, and actually positioning is normalized. -- to buy a pit option would be extremely cheaper, or has been

historically. i think in terms of investors looking to get a little protection, it does look like an opportune time for that. >> is the final question to round things up about european stock markets, do you have a view on where we might see our performance among this? people also point to the relatively cheapness. is that likely to be corrected anytime soon? >> yeah, it is a bit challenging. i think it has come apparent that there is clearly value. the difficulty here is seen the catalyst for realizing that value. really like this article 2022, it was well compared to other embassies. i think we need something that is a longer-term, or at least a mutual term catalyst for both

of these to start forming. the challenge, it is certainly with the stocks, which probably lack longer-term growth options. have overcome i think we got some of the pharmaceutical stocks tarred -- starting to grow. the first half of the year, that can certainly upper market. it definitely needs a sort of catalyst. and focused to do drive. >> so interesting. good place to leave it. thank you so much for joining me. roger jones, the head of equities from london and capital. you can see there's a lot of red behind me, given that isn't much of a surprise. as i was just walking you through, we are sitting at a third straight week of losses for asian losses, and a fourth week of losses for european.

investors continue to digest an onslaught of data to some of the -- still coming out of china. and of course, all of the -- that are hitting the economy over there. in terms of the individuals, this is what we have. they are trading below the front line. focused on 120 7/10, and -- getting hit this morning. luxury is in focus there, given the sensitivity and exposure to china and to chinese consumption , all coming under selling pressure this morning. uk, also down 6/10 of a percent, 42 points weaker. we did have some very weak retail sales data come in for the month of july.

-1.2%, versus -- it was already running in the uk, which meant that summer sales closing didn't go quite well. again, just telling you about the health of the uk consumer. that is something to watch on the macro fines. in terms of week today, i was just tell you, it has not been a great week. the 5100 is down 3.1%. and then the decks, also down 1.6%. all in all, it has not been a great week of trading. again, as we continue to focus on the narrative in the second half of the year, this is sort of winding down the end of the season. in terms of today, this is where leadership is. not much to chat about. we've got them basically training around -- details at 1.5%.

those numbers pushing down some of the key stocks in that basket. also, being dragged down lower yet again, and the construction material one of the more -- elements of this basket at 1.2%. the european central bank is reportedly preparing to send a letter to italy raising objections about the government tax on bank profits forget that is according to the italian newspaper, which says the latter will criticize the fact that -- without first informing as it is supposed to do under the rules. -- has not cited any sources. saying they will be sent in, quote, a couple weeks. this is a picture of some of the banks today. of course, they are still absorbing the shock announcement.

it was announced just two weeks ago. >> they have plans to spin them off on or around -- they will give one share for every five of its own, listing the company in switzerland. this had been widely -- j.p. morgan and -- have all cut their price text. the company shares plummeted in yesterday's tree, wiping nearly ,■8 billion. they fell short of the expectations in the first earnings. remember this since it would go public. a substantial drought. look at this. all of that happens in yesterday's trade. the cfo towed nbc yesterday that they are investing in the

team, rather than being controlled by -- >> we really wanted to invest in the business. we grew the team by about 1200 people last year, grew 550 people or so in the first half. our plans are to continue to grow. we see a really big opportunity in the broader financial services space. we see that over the medium and long term. we plan to invest in the teen. that will help us best recognize our opportunity. we spent a lot of focus on building our technology on one platform. we have a very low -- in 2024 when we will grow it slower than the top business. >> look at this one. the stock is up 60%. they are surging on the news that the

majority shareholder is planning to take the company private. the bidding price is 16 the trade. representing more than 66 premium on thursday's closing price. big news if you are a stockholder. if you want to get involved with anything, tweet directly on x. also, coming up the street signs, we will be talking about japan. will that be enough? we would discuss after the break. ♪ ♪

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sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

what to expect at the summit. squawk in the street at 11:00 p.m. expert. welcome back to street signs. japanese core inflation hit 3.1% in july, down from the 3.3% the month before. the so-called core core inflation, the bank of japan's preferred inflation indicator, which excludes fresh food and energy prices, it rose 4.3%.

i only see that as a sign that services and demand inflation is increasing, something that the bank of japan has been looking for. it comes today after they crossed the 146 mark, putting them on alert for the bank of japan. however, this is given the bank of japan some room to breathe. to digest everything that is happening in japan, i'm happy to say that -- joins me. good morning to you. talk me through what your interpretation of these inflation numbers are. again, the preferred inflation indicator is sitting at 4.3%. that is still uncomfortably high, relative to the target. yet, they continue to ease. >> it is interesting. now, beginning signs of a bull inflation coming through.

that is good signs. the japanese population is actually seeing positive income, positive wage growth. until now, all the inflation was pushed from higher innervation energy, and this was over the last couple of months, so good inflation. that is an excellent takeoff for the bank of japan. and to complement tate -- contemplate that their job is actually done. >> in light of what you said, is this not a massive policy mistake? >> it is interesting. i don't think so. they are normalizing the bond market? remember, in japan, they pad zero for almost one generation. not just for a couple months, a

couple years. going slowly, allowing for the market to allow for market participants to take over for where the bank of japan use to dominate. it is the policy. >> how closely do you think they are watching? we are sitting at 1.45 now. ever since they made that week, the expectation is that the currency will stay. we have not seen it happen. a week of currency as we know, they've got to do something about it. >> again, the reason for -- this is strengthening. as you all know, u.s. expectations are changing with it rising steadily. right now, the movement in the c market is led by the united states, not by what is going on in japan.

from their perspective, i think it will be an opportunity. it would be wasted money. >> interesting, i was going to ask you whether or not you thought of an intervention was coming. in your view, you think that would be a waste because of the strength of the u.s. dollar. what about the operations themselves? what have they not allowed them to move up to 1%? they had that discrete jump up 60 points, and we have been hovering at that level. why don't they let them move up? >> i think it is very simple. there are costs to increasing, and the japanese ministry of finance obviously has an enormous amount of debt. if you want to see increases in interest expense for the public deficit to increase too fast, that would be very disruptive. the bank of japan, let's be very clear, this is part of the

-- of stability. you've got incredible coordination between the treasury, the bank of japan, and between the prime minister. yes, japan is trying to normalize its financial market, but it would do so very, very gradually. allowing for marcus to just work on themselves, that would be very, very disruptive and harmful for society. >> i think we will see the next big policy out of japan. when will they make that move? >> i'm thinking the bank of japan will stay on hold for quite a while. the reason is, the next eggs -- best issue. this will start to be negotiated in september. will taxes be going up? how much of the covid support measures i want to be allowed to roll off. how much of the support measures

will be crept back? it is not so much about monetary policy, even though you and i like to talk about it. really, it is about fiscal policy where japan needs to focus on. >> so what extent do you think japan will be affected by what is going on? a lot of weakness in the data. will that have an effect? >> the answer is absolutely yes. you do find that china is japan's largest trade partner on both exports and imports. it is an incredibly dense economic relationship. as you know, we just had the earnings for the april 4th, and a lot of machinery companies, they reported orders from china down 40%. that is going to have a big knock on effect. the sensitive japanese

machinery. >> we saw that yesterday, which is why brought it up. thank you so much for coming on the show with me. i'm very happy to talk monetary with you. just recall, head of japan. just before we head to the break, i just want to bring you some news out of hong kong. we were just looking at these asian markets. we now know that the hang seng index is actually closing 3.6 percent lower. why is this significant? it has official closed in a bear market, which means it is officially 20% off. and there is a picture. coming up, wet weather downs the uk's sales as shoppers retail a deep dive right after the break.

♪ ♪ know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

♪ welcome back to street

signs. these are your headlines. official step in to step up the currency, setting a far higher -- accepted. escalating crisis in the market, closing the week. losing more ground in the final day of the week. nearly 3% lower today as china fears a caucus -- hawkish way on -- volumes followed by double. the bearish moves fall over into bit going. the cryptocurrency falling is much as 9%, much of its gain after space x reportedly sales off its holdings. ♪ ♪

it is a risk off session today, dominating from wall street closing to the asian market session, and now europe, as well. all trading deeply in the red. -- 100, each respectively down 8/10 for the week. we are tracking losses between 1-2%. again, as we have been talking about, we are at the end of the earnings season. they are digesting a lot of the weakness that has been coming through from china, as well, and the continued rise. let's talk more about the uk. retail sales found more than expected in july. sale volumes were 1.2% lower, and 3.2% lower on the year,

both will short of expectations. this is a quick look at how some of the major retailers are training today. all of the rest trading in. in our streetsmart segment, we want to take a deeper dive into one of this week's top performers. cheers to -- and spencer for on pace for their best gain in almost two years after the retailer posted a surprise update reporting sales and hiking its guidance. they have all upgraded their price targets. it has been a busy few years. in february with 2019, launching a full online food delivery service for the first time. by the end of the year, it was kicked out after its market value fell below the inclusion thresholds. in august 2020, they laid off

20,000 staff. that marked the largest set of layoffs in its nearly 140 year history. in 2022, shares hit a 20 half year high. by the end of the year, the stock had reversed as profits plunged. in may of this year, posting better than expected numbers, and now the transformation numbers are beginning to bear fruit. it has been a bit of a roller coaster ride. it is one of the best performing stocks this year. very happy to say that i've got one of the bullish analyst on the show. great to have you with us. you have a target price of 260. just unpack for us. >> hi, thank you.

as you highlight it, it's been a rough couple years. there's been a number of changes that have taken time to really come through and deliver the improvements that you are now seeing. the results you are seeing in the last six months, last 12 months, haven't really set in place in 2017. what we are seeing at the moment, have really found a model which works for both clothing and the food business. you've seen a number of investments made in terms of what the store looks and feels like,reducing the number to make sure they are focusing on areas with geographic locations that are most suitable to showcase in the best possible light. finally getting the products light. in terms of the consumer,

you mentioned the retail science. clothing has been week in july. say it was up 11% at the last 19 weeks. i think they really are taking market share, what is driving that product. you got more exposure to the older customer base when you think about where the pressures coming. older customers owning their own houses, maybe on less pressure than some of the younger consumers. thirdly, the investment is taken in terms of pricing, met with the relative offer really starting to improve compared to the competition. that means you are gaining rocket share.

a business model strategically, you will see the performance. >> embarrassingly, i had to say i'm in that older customer category, the one you just described. we talked about a turnaround so many times the last couple years. why is this time different? >> that's the million-dollar question. when you look at the rating of the company, it's probably around 10 times, also people being skeptical of whether this is a small recovery, rather than a strategic change. what you saw when he came in in 2017, supported by the previous ceo, and any ceos from last year , he says it is a mentor review, looking at every line. what does the stand for? looking at the cost of the 400 million+ program at the moment, you reassess your store base,

and you brought in a host of new talent. people on the design side, on the online side. a combination of a chairman who is giving him the green light to make these changes, bringing in new employees who really enacted those changes. >> what feasibility do you have on how this will look up in the future? just recently, -- said he was not happy with the performance. it is lossmaking. at what point will that turnaround? and will it ever seemed something that could be a cash cow? >> i think these are not two your words that we used so far. you are rolling out new

distribution centers around the uk. in terms of a cash position, it will probably be some time before it returns any crash -- cash. 50% of the retail, holding the remainder. over time, it would make sense for them to be the larger owner. there is an agreement in place that will probably happen as you edge toward 2026-2027. the performance is already starting to improve. it was flatted during the pandemic. i think from here, you will start seeing a return once the investment processes are starting to produce, you will see the margins revealed.

over the next two years, you will start to see this. >> that is a good timestamp for us to think about a question about the dividends. they suspended the dividends in 2020. is it your expectation that they will bring you back at some point? i would expect, given how strong the result to be in the current financial. expectations to restart the dividends. i think you will start to get a dividend payment. i think they will start a token , then rebuilding going forward. this is starting to repaint a dividend. it will put them firmly back in the positive bracket for a

number of years. >> this has been the bright spot for uk this year. it went as low as 90 in the last 52 weeks. which is had these weaker than expected retail sales prints, so obviously affected by the weather. the lingering, cause of crisis, still talking about some of the pressures. what is it for the sector as a whole? >> i think it is a mixed fix in the overall. if you recall back to last year, coming into the first half of this year, the concerns were over, significant gas prices, energy prices, what that would mean for the budget. your dinner table chat, your

mortgage refinance. what people are worried about has changed slightly. worry about your food, your mortgages, rather than your gas bills. everybody's expectation is that all these actions will start to see a deterioration with disposable income. it is set to slow, as we look into the second half compared to the first half. however, we can prove very wrong by the resilience of uk consumers so far. two things. one, effectively low unemployment. on top of that, rage inflation has been very robust. a lot of that has been offset. it is not as bad as some people

originally feared. particularly as you look at areas where maybe you can defer , then you get your new bathroom, or anything related. >> i guess we should all be keeping an eye on the unemployment rate. adam, i believe it there. it's been a pleasure having you on the show. >> here is something we haven't talked about in a while, bit coin. it failed nearly 8% during a single hour of trade, hitting a low of just over 20 $500,000. the wall street journal reported that elon musk's space x have riddled it down in the last two years. and solved the virtual currency. that is a picture of bit coin. it has been pretty stable for

both -- most of this week. >> there is a difference between writing down the value, which is standard versus actually selling. >> that's right. space x actually sold its holdings. i think there are a few things going on there. we know that he has publicly spoken about cryptocurrencies. we are seeing a bit of that. perhaps what is happening again, bit coin is re-correlating, trying to seem very bearish weeks for stocks. also, there's something interesting happening next year. it is caught the hardening.

the rewards is slashed in half. therefore, it should be supportive. normally in the run-up, you see the bit coin start to rally. we seen a big, big rally. closer to the time, you do see a bit of a jump. along the way, there are very big down days. it's back. you are likely to see more of these in the run-up, which is slated for next april. >> others are still involved in bit coin? it is a retail phenomenon. >> what it is, a lot of large bit coin holders, also 14 prices. his big transaction managed to powerfully -- it has been

stable. even in traditional assets. that has not yet come into the market. we have heard that from results like coin base and other trading firms, as well. the hope is that it bit coin is to get anywhere near its all- time highs that hit in the past, it would need support from retail. clearly, a lot of people got burned last time. >> i could see it on my twitter. a lot of people were very noisy in 2021-22. i wonder to what extent, that has also been affected by everything that happened with ftx. i just wonder to what extent has that set the tone?

we have a very negative -- >> even the more traditional investors. they are still staying away, they needed to see if there's any regulation in place. that is one big overhand. they've been through a number of cycles. the latest was very different. you got big reactions, allegations on a criminal level. there's a lot going on here. it is a bit of a mine fall, to some extent. when you have days like this, the big 9%, it is more of that complexity and confusion. >> i deceit is one of those french products that will exist. i think the hope is that it would become mainstream.

it just didn't go in that direction. it will exist, but it will be a fringe asset class. >> if there is more quality -- clarity about what is allowed and what is not allowed. a consumer protection is available with that, as well. they got stands at the moment. it is a huge market. there is a huge retail investing market. i think that is a huge issue. >> it's been a long time since we spoken about cryptocurrencies. >> i said something bad yesterday. i said to my colleague, don't worry. will wait until november or october. it will be some action taken place.

>> all right. thank you so much for coming on. also coming up, president biden prepares to host two asian leaders for historic summits. what is to expect after this eak. eak. ♪ and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

it is 5:00 a.m. at cnbc global headquarters, and here's your five at 5:00, the markets they're breaking for a potential spike in volatility as more than $2 trillion in stock options, they are set to expire. this as the major averages extend their losing streak pressured by rising bond yields. also, china's property crisis, it deepens oas the second larget developer files for bankruptcy, a spillover with the chinese and global economy. getting near the checkout line, instacart is reportedly close to