this after the end of last week, we saw b.a.t.nds and other sect -- in the sector selling off after announced plans for reduced nicotine counts in tobacco product. interesting to watch another headwind for that industry. some car news? manus: honda this time, raising guidance. lifted operating profit outlook billionlien yen m ¥705 seven5 billion from hundred 25 -- lifting operating output -- outlook to 725 from 705. raising the full-year cash internet profit forecast to 545. they're basing it on dollar-yen level of 107. rolls-royce? pretaxirst car adjusted profit, above the estimate. beating the estimate, first half adjusted first half profit, full-year outlook unchanged. a lot of questions direct did at the managers of this business. around the outlook. they were forced this week to back away from earlier guidance around cash flow generation. the old was that they would reach one billion pounds. instead, they seem to be aiming for something to beat the previous high of 2013. a little more nuanced on the guidance. analysts and inv

remains say that b.a.t. the strongest among its peers. any potential impact seems more than embedded. they wrote that in a note yesterday. 7% white line, it is done by in that period. the blue line, done by a percent. what a month it has been for metals. what a year it has been for metals. the typical inverse correlation between the dollar and metals is vulnerableng prices to a rebound in the greenback following trump's election. as trump's agenda stalls, there is a weaker dollar. it is keeping metals like copper, aluminum, and lead at higher levels. there is a divergence between the dollar and the london metal exchange index now. will it last? morgan stanley questioning it. abigail, what is it like over there? abigail: the bulls are in charge again. we have nice gains for the dell. -- for the dow. the nasdaq adding to yesterday's big rally. investors looking aside from the geopolitical tensions that we saw earlier, and buying that di p. it was brief. averages are higher on the week. let's look at the nasdaq 100. it has been quite some ti

b.a.t.e out with a 30 year bond yesterday, so we'll for 1.7% over treasury, and that is after they had their debt rating slashed twice. this is like a cigarette company. tesla has a deal with some odd clauses that hold investors out of its battery factory and it supposedly high-yield -- it is .upposedly high-yield is this the death, too good to be true, the end of this credit run? manish: i came in and i saw a chart. we had investors holding bond in the portfolio. the average used to be 20% to 22%, which clearly says that there is lack of investment opportunities and enough capital to go around. people are filing into bonds and investments that are available. that is not a good strategy according to me. having said that, if you look at what the central banks are doing . there was a lot of buzz about the central banks are going to start raising rates or going to start softening monetary policy. that is not happening. you have seen the u.s., the ecb, and the bank of england as well. good strat

when everyone turns to one side, it turns out it is not as strong as people thought, so that could b.a.t here as we going to these months of august and september. catalyst, is say the implication that, people who have losing trades might start selling more than just those traits? trades?ose yes, and when we look at what is going on with leverage, leverage is absolutely horrible leading economic indicator. but when people get crowded into one trade, there tends to be a lot of leverage in it. a moves in the other direction when that leverage gets unwound. we saw what happened when hillary clinton made a comment about biotech stocks a couple of years ago, and the group got hammered. when people have to unwind leverage, it tends to overshoot on the other side. when people have to sell things, and there is not enough bids in that one market, they turn to other markets, and the u.s. stock market tends to be one of those markets. matt, thank you so much. breaking earnings here on salesforce.com. like it is looks beating on all of the metrics. earnings-per-share, $.33, one cent ahead of estimate

b.a.t. up a little bit. allianz up as well, we will talk to them later in the program.ing forward to that conversation. european stocks a little on the back. stocks falling after news broke is using a federal grand jury in washington to collect information as he probes russian meddling with possible collusion with the trump campaign. night thislly last is in west virginia, the president lashed out against the investigation. president trump: the russia story is a total fabrication. for thest an excuse greatest loss in the history of american politics. that is all that is. guy: joining us now, the global head of strategy at morgan stanley also joining us on set. kathleen, what does the news about the grand jury tell us? theleen: the tells us investigation is progressing. there is a grand jury in washington, and alexandria, virginia. we are not sure if they have begun to interview witnesses but this is the next step in the process. he was only appointed a couple of months ago so the fact that two grand jury's have already been impaneled this eccentric and that is significa

you can see that b.a.t is taking the most off as far as points are concerned.ou see some biotech and drugmakers that are weighing on the index. k down as well as diageo. take a look at the gainers, what is holding the stoxx 600 at the water level right now. you see some drugmakers there as well. glaxo is there as well as astrazeneca. not a lot of direction. the market trying to still interpret what donald trump said and what that means for the future of the u.s. and global economies, and waiting for mario draghi's speech before a vote of moves are made. europeugust 23, most of still on vacation, and there's not a lot of liquidity in this market. manus: most of them are in the south of france and greece. let's talk about the global issues and rhetoric overnight coming from phoenix. donald trump threatening a u.s. government shut over his campaign promise of building the wall. >> believe me, we have to close down our government. we are building that wall. let me be very clear to democrats in congress who oppose a border wall and stand in the way of border securit

told me that they have had a moderating impact on some of those views and as a result things like the b.a.t the trade talk with china tamped down a bit. it wasn't quite as venomous they thought after they had the an impact are you going to continue to see ceos consulting with donald trump? is this for show at this point or is this a true break -- >> there's a difference between consulting, if you will, as a day and being on councils as a relationship relationships have now become unsustainable for ceos because they have to be -- they have to answer to shareholders and employees. they can't sustain that. i think going in for individual meetings is something qualitatively different and they'll continue to do that. >> do you think trump will actually reach out to them only because he is not somebody who tends to take rejection well. >> his view of constructive criticism is that it's clearly overrated. so he may cherry pick which ceos he speaks to or the subjects on which he speaks to them. he still needs to know, they're a powerful constituency. for example, of all the ceos were to take a cert