in continental europe we've seen the numbers come down 2% even in the last three weeks. >> i like at the multiple of the uk market, the ftse 100 here, and i think actually that's expensive. it's really expensive. we need some serious upfwrads of earnings. >> we do. we on 16 times which is the highest we've been. the average is closer to 13. you're baking in 20, 25% upgrades. i'm not sure we'll necessarily see. >> are there any cheep defensives left in a low interest rate world that a investor should be looking at this moment. >> you're right. price are a little lower. bond yeemds are lower. you would normally go to defenses, but the problem is consum consumer staples. we would look at utilities and the health care stocks and maybe tell cos and those sectors to us look reasonably valued. >> you look at the dividend yield you can get from equities relative to the yield you got from bonds and that's super attractive. >> it is and with the gaps at a record high so if you look at dividend yields in the euro zone, you're about 3%. you look at corporate bond yields you're blelow one. we hav

into both the judicial situation and the obligation they now have if they want to operate in continental europe. time now to check in on the markets. for20 the first time since 1985, the british pound well below below $1.31, but it was not all gloom and doom -- london's footsie did like news coming out of england -- like otherse did news coming out of england, which led it to close up. meanwhile, wall street opened today after being closed on monday for a bank holiday. u.s. stocks are in the red, also dragged down by lower oil prices . index's tech-heavy feeling the weight being dragged by apple. we begin with the world's oldest bank. trading was halted today. it ended down more than 19% in milan after losing more than 14% the ecb warned it could need to shed more than 10 billion euros of bad loans after bets on italian institutions. russia has deficit has swollen and may need to use is rainy day fund to fill its budget gap. have beend exxonmobil given the green light for an expansion of an oil field. last week, bp said it was building another plant to liquefied natural gas in indonesia. food c

a heat wave has hit much of continental europe. this boy in spain tries to stay cool.are the latest figures about rising temperatures telling us about a planet getting hotter? this graph from the american weather agency shows january to june every year from the 1880's are below average in the first half of the century and claiming dramatically later. in the last six months, it was more than one degree over the long-term average. looking closer, you can see why scientists are surprised about the scale of the increase. it is partly driven by el niÑo, whose warm water in the eastern pacific, but also by greenhouse gases from pollution. the paris agreement on climate .hange is meant to slow it down scientists researching the claimant have been warning for years that unless the greenhouse gases are cut, temperatures will rise. the impact is likely to become more severe. >> we are at a dangerous level of climate change. we have the paris agreement, but we should not exceed one point five degrees centigrade of climate change. unless we start removing omissions from the atmosp

tracking the newly minted prime minister theresa may, too, as she makes her first visit to continental europe as britain's new prime minister. she's meeting with french president francois hollande today. all of this coming as melees the groundwork for negotiations from britain's exit from the european union. her goal is to maintain the closest possible economic relationship with the eu countries as they iron out issues over trade and migration. >>> three months state of emergency is now in effect in turkey following last week's failed coup. after meeting with the national security council. pro government protesters gathered in istanbul shouting they wanted turkey to reinstate the death penalty to deal with those involved in the coup. >>> the rio games getting close to that starting line. one top nation may be on the verge of being left behind. just hours ago russia lost its appeal against the olympic ban on track and field athletes. that decision could add pressure on the ioc to exclude the country entirely from next month's games. the world anti-doping agency is recommending russia be barred

versus what we are seeing in places like japan and continental europe.ou prefer if the bank of england did not cut rates next week? going to comment on what the policy of the bank of england should be. i think they have done a very good job of trying to ensure the that they stay a safe, liquid functioning financial system in the u.k.. a bank like barclays, rather than being part of the crisis in 2008, now we are seeing it as a place of stability. we are open for business. we want to work in cooperation with the bank of england to minimize the economic impact of wrecks it and be on the side of our customers and clients in great britain. >> it seems american investment banks are doing well at a time that european investment banks are not doing so well. how does that look to you at barclays? analysts toall the look at our second quarter. our corporate and investment rank in the second quarter return ona 9.5% tangible equity. that is one of the strongest in the investment banking industry, whether you are in new york or london. i like the performance of our

we are sort of 1 about.5 growth for the next ten years, that's not enough to sustain the continental europe and social model. and in order to increase, we need more structured reform such as for instance deeper market notably in services. >> henry dixon is with us. hope fourth of july. how are you is th? >> it's been a lot of long unpredictable days. >> how do you look at your portfolio and position we need to rejig or sitting tight and waiting? >> sitting tight and waiting is not an option. i think the central case has to be against cyclicals and we're keen to wait our way away from any financial leverage, any premiums to book values. replacement costs. if you're anchoring case off a p and l right now, i think that is very dubious indeed. we retreat to assets and cash. outside of that, i think there has been a blind bid for everything that isn't sterling denominated and is u.s. denominated. we very definitely want to be a bit more thoughtful for that. i understand the bid for pharmacies was exceptional, but you need to maybe look under the surface and need to be more nuanced and try to fin

and across continental europe. the first full week following that historic brexit vote.cks higher wrapping up their best week since late may despite that monday post brexit sell off. london's ftse posting the strongest week since 20 is 1. up 7% outperforming europe's broader market stock 600 index by 2-1. earlier today george osborne told business leaders he's abandoning his goal of achieving a budget surplus by 2020. citing likely economic fall out from the brexit vote. the jobless rate fell slightly in may to 10.1%. that's the lowest level. >> the race on the bottom here. it's amazing. the dow and the s&p getting closer back home to erasing those losses. all the indexes year to date as we begin the second half of the year. can investors begin to relax this long weekend. with us to talk about that is the trek to of operations at ubs. we had follow up to the upside today. the market got that better than expected ism number today. lots of talk of central banks trying to get easier in some fashion or another. is it a heads i win, tails you lose response by traders here? >>

flights to continental europe were also down about 14 to 17%.ite said terrorism and refugee crisis may also be to blame. the fares likely won't go down any further, the experts say. >>> still ahead, five years of drought have taken a toll on california forests. see how the forest service is keeping track of the damage. and here's a live look from our emeryville camera. more sunshine today. windy, as well. temperatures are building throughout the week. lisa argen will be along shortly with the full accuweather forecast. ♪ light piano today i saw a giant. it had no arms, but it welcomed me. (hawk call) it had no heart, but it was alive. (train wheels on tracks) it had no mouth, but it spoke to me. it said, "rocky mountaineer: all aboard amazing". hey, they'd be lucky to have you. don't be nervous mommy. you're so smart. good job. just like bunny ears. you got this. do i? really? come on! nature valley. with you every day. everywhere. with the energy you need. >>> new this is abc7 news >> a warning this morning for users of the. >>> smartphone game

and thomaseasyjet, cook, a travel tour operator, 2015 revenuets from continental europe. softer in europe. in the united states, things are stable. equities on a five-day when his. stocks continuing to make all-time highs. -- joining me is korea -- maria. europe is a key theme on the program off the back of a tragedy in the south of france. the political backdrop is fragile to the economic backdrop is soft. brexit has been added to the mix. how do you think -- see things developing in europe with that as your backdrop for the next 12 months? is a soft time for europe. a big issue developing there is the fragility in their banking sector. as we have seen since the financial crisis, banks have increased their capital buffer, however in europe, the increases have been much lower than what we have seen in the u.s., so by ftse standards, for instance, most of the european banks are still undercapitalized, and that is why we see the pressures we are seeing recently. that is on top of the issues that they need to deal with with spain and portugal having deficittheir budget payme

and along continental europe as the dow is up almost 200 points briefly.lle. >> carl, if you look at the screen we had a lot of green across the european map as well. the vast majority are higher and by substantial amounts gains of more than 1.5 to 2% after the u. s. jobs number. let's dig down into the movers there. the stoxx 600 is up 1.5% in the overall market and then european automobiles are doing well. they're up 3.5% after data showed that passenger vehicle sales in china rose 19.4% in june from a year ago. so shares are all higher by 4 or 5% respectively. so these are pretty big moves. what's going on with the british pound? we have to look at it every day. it's in positive territory versus the dollar. that yellow shows what the dollar is doing. it's weaker against the price. $1.29 so still below the $1.30 level. up 17% after being halted for excessive gains. and conducted it's own internal stress test which confirms the banks resilience and working with the ecb to solve it and confirmed on friday, they are continuing to explore all ways to allow p

happening today in europe, theresa may making her first visit to continental europe as britain's new prime minister. you see there with angela merkel. also meeting with french president francois hollande today over the heels of the meeting with the chancellor of germany yesterday. it comes as may lays the groundwork over britain's exit from the european union. may says britain's goal is to maintain the closest possible economic relationship with e uks countries as they work to smooth over issues over trade and migration. >>> we always talk about self driving cars in the bay area but now how about cars making money when you're not behind the wheel? the man behind tesla motors is unveiling a plan with self driving cars, semis, bus, car sharing service he says to rival uber. elon musk revealed detail tons company website and on twitter. musk saying that tesla will create its own car sharing fleet allowing renters, owners, i should say, to rent out their vehicles while at work or on vacation. we talked to people at santana row tesla showroom about that idea. >> having a tesla is one of m

investment project, 19 billion pounds, and that has been sort of leading to good things in continental europeas been slow here. they added some money to that. people will be keen to see if that is starting to pay off for them. the other thing about the u.k., it's a very competitive market, and they don't benefit from what a lot of the other players have, which is convergence. that is something that is an industry trend that they are doing in other places -- they've begun it in the netherlands but haven't done it here. anna: things are getting more competitive for them. tell us about the brexit impact. this is one of the first companies we heard from post-brexit with a headline-grabbing statement. ryan: a threat really. if you think about that they could leave -- they have been here since the 1980's -- that would be a big deal. the company gets about 50% of the revenue here. germany and other places are big markets. the germans are lobbying for their business. it wouldn't be inappropriate for them to do that. that what isay interesting about these earnings, they will be reporting in euros for

return of terrorism and the attacks and what kind of impact that would have on the rest of continental europees this play into the uncertainty that is hanging over the region? david: these are certainly shocking pictures. most of us spend time on sidewalks. it does add to the insecurity that we feel. people are going to be affected by this. it has to a general sense of vulnerability and the failure of governments and security .pparatus to protect us it is very hard to do, in this case. , the a." side of it is if we look back at the last six or eight incidents, it tends to dissipate quickly. i would not expect this to have a lasting impact. defense spending may go up. tom: dear team at deutsche bank has written extensively on the italian banks. what is the immediacy of your research solution. david: this is not a 2008 situation by any means. the banks are much better capitalized. oversight is significantly improved. it is not the matter of something blowing up in the next several weeks. nevertheless, it is a systemic problem that needs to be addressed and the numbers speak for themselves. have

scarlet: do you see any situation in which the brexit could bring continental europe closer together rather than deep in the fragmentation that is taking place? nina: obviously, there has been some ball at rhetoric on how this will make europe stronger. i think in practice, very difficult proposition. acause there is still fun mental structural flaws in the eurozone and it is different how berlin and paris want to tackle the challenge. the u.k. leaving is actually a huge blow to the eu. a lot of liberal allies that the u.k. had come including the netherlands, the nordics, feel isolated in europe now. they don't like the fact that they are left alone with germany and france and and fundamentally, germany and france think so differently as to how the eu and the eurozone should proceed, it's just been to make things very awkward. so i think a lot more to come. >> they seem to have the -- matt: they seem to really solidify the european union. but they don't want to talk about it. they don't to go public with it because it is so unpopular monks the voters. nina: this has always been a prob

jobs, they are using this as a downsizing, that is because they have to move those jobs into continental europe't know what happens next. if it is just britain i think we are okay. norway and switzerland are doing fine with in europe but not within the eu. the dominoes that fall, that is where we worry about financials that have exposure to the european market but as far as discovery, regional banks in the united states, banks with domestic earnings, they are pretty good. charles: these banks have been ladders, do they make major changes with respect to how they do business? looking at the most recent survey of senior living officers, this year versus last year down significantly over the last few years what is the model for them particularly in the low interest rate environment? >> a lot of pressure came from dodd-frank bill that really took liquidity out of the market. a lot of pressure on those things because of that and a low investment rate, these banks are going to have a lot of issues but in that market the banks that are good become stronger so you look at good solid banks that are here

so people in all of europe, continental europope, now see wt brexit, but going out means. the alternative, you have europe. it is now as clear as it ever was before. you are now prosperous and not a sovereign as you could be, or you are sovereign and running into recession, so this kind of alternative was not t clear ass it was before the brexit. people thought there would be a classless society, and we could be sovereign and rich. and now you see, this is not going to be as easy as this. i think it is an eye-opener for many people who thought maybe, france a and austria and other countries as well, we could go on the same path and be prosperous and sovereign again. this would not be true, and you see that in the u.k. peter: an optimistic take. hannah, i sense you might be a little more pessimistic about how the brexit vote might impact the european union in the weeks and years to come. hannah: the idea that the british economy has collapsed in two weeks is a little prematutu. i don't think it will be that dramatic. that was the argument used by a lot of the remainers, tha

jamie dimon's comments to mean that they intend to provide all the services to their clients in continental europehan they do currently. if that's reducing more personal to hire personnel in other european capitals i suspect that's what they will pursue. >> thanks for the analysis. >>> we're keeping a close eye on the biggest tech ipo of the year it has just begun trading at the nyse. going strong line up 31%. we sit down with the co-founder and chief global officer for his first cnbc interview when "squawk on the street" comes back. the dow is up 154. here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. everyone talks about what happens when you turn sixty-five. but, really, it's what you do before that

the irony is we will grow faster in terms of headcount expansion on the assumption that continental europetoo then we would have pre-brexit. expansion will be faster in germany, france, italy, spain, and places like brussels. what i am concerned about is losing influence in those markets and those markets are very important. wpp did not vote for brexit. >> that is so martin sorrell, ceo of wpp. hillary clinton most face won't facearges -- criminal charges in her e-mail scandal. this is bloomberg. >> this is bloomberg go. the hewlett-packard enterprise greenroom. coming up, the portfolio manager will discuss jobs, fed, and much more. this is bloomberg go, i am david westin. everyday we have another story in the side of that has been the e-mails of hillary clinton. yesterday it was the attorney general saying they won't prosecute her and today is james comey appearing before congress. donald trump not giving up on this. he is pressing harder and harder despite the fact that she is not getting indicted. is there a chance this could backfire? definitely, not only in the trump campaign but on t

we will have to see how it shakes out, and more of the uk products are produced in the continental europeso for us, manageable given the smaller size of the business. >> what should be the opt more of organic, and losing green giant, and what we are talking about regarding the tricks of the organic in natural now, and what is the right percentage given that, ken, those numbers are blow away. >> well, look, i don't know, but it is what i know is that it is growing rapidly, and more and more consumers are coming into that, and very interested in looking to expand that portfolio, and annie's is a terrific acquisition, and great brand vision, and positioning, and we have brought them capability to do things that they could not do on their own, and annie's, and cereal, and annie's and soup, and more to come, and so it is -- clearly, it is going to be a $1 billion for us soon. it could go to $2 billion, and you know, hard to the say, but it is going to be a continuing high-growth part of the portfolio, and we are interest ed in adding to it. >> and you are a self-effacing man, and i have known

the depravity and continental europe. the defenseless 84-year-old preacher in a church.illed in yemen. but for this to be happening, the police knew about one of them for about a year and a half. >> for centuries, this has been considered sanctuary. the place you could go where no one could could touch you. two people identified as soldiers of ice soldiers of isis, to go when a murderer and 84-year-old priest, that is no soldier in my book. if you want to kill it priest, come through me. stuart: phase one was welcome. comment. then they realize there's a problem. phase two starts. hold on, no more. we can't handle this. i think we are getting towards phase three, which is get out of here. if that happens, you've got communal fighting in europe. liz: turkey exploding as well. >> we are right on the precipice. this could go into very dark territory. people are afraid the public was dark. it is going to the person against person and a soft targets, you are exposed. stuart: strikes terror into the heart of europe. >> for anybody watching, there's nothing to prevent that from

>> i would agree but the real uncertainty is about continental europe. europeans say they are eager to snatch london's financial sector. to do that they have to have banks. the one bank that failed the us stress test was a german bank, the italian banks in the wall street journal are in terrible shape as our banks in spain and other countries. the reality is the continental europeans have a badly managed economy, poorly structured banks and would serve the british interests to leave, look towards america and asia for their trade and their banking sector will do fine. ashley: i think you are right, based on that, what is the likelihood other countries will follow suit? denmark, the netherlands to name a couple? if that begins, is it the beginning of the end? >> a lot depends on conservative party leadership election. if teresa may is elected leader, there is a real danger the vote will be thrown out. what she will do is offer the norwegian solution, she said we have to expect to pay something to get into the eu. they are not asking americans and free trad

fundamentals of the british economy are actually very, very strong, they are far stronger than in continental europeext prime minister will, of course, also have to negotiate free trade agreements across the world including with united states, capitol hill in last two weeks or so you have seen tremendous momentum from several members of the senate to push forward with the free trade deal once article 50 is triggered in the united kingdom begins the process of britain leaving european union exciting times in coming mince. >> despite hysteria so many people -- if bret were to leave eu, do you think there is going to be a pause other or delay in triggering article 50 because i know that is the start of really major change because that what is boris johnson said before he basically got kicked out. >> yes. i think that you are going to see article 50 actually create a pretty swiftly after the september 9 date it is very important britain move forward i think to begin the process of leaving the european union that creates greeter long-term stability it is in britain's interest i believe to be out of the e

and morgan stanley 2000 jobs out of london, somewhere in continental europe.uropean stocks are a problem because of the domino effect. they're valued cheap right now. if you start having the eu break up, that's another shoe to fall. as far as the tech stocks, in the u.s. equities, that's where money is going to go. that's the only place where you'll get a return on your money. stuart: armageddon for now. that's a caveat on the end now. we'll get back to that in a second. the big political news, it's this, attorney general loretta lynch will accept the fbi recommendations in the clinton e-mail investigation. rich lawrie is with us from the national review. what do you make of this, are you a lawyer parsing words? >> entirely with tammy, never trust, always parse. the statement, we talked about our grandchildren a great deal and primarily about social things, underline primarily. if she's going to just accept the career recommendations, why doesn't she go all the way and recuse herself? >> well, if she did recuse herself, you have to have what, a special prosecu

the forecast for europe, you may notice some clouds moving over the northern portions of the continental area. that is because we have a huge dome of high pressure that's really bringing a southerly flow for the area. that's going to bring temperatures close to the 40 degree mark. you need to be careful with this. that warm air really affecting spain, the iberian peninsula, also portions of france and germany. cooler air to the north, but not by much. we do have a trough system inverting itself which is pushing warm air. unstable weather ahead. moscow, kiev looking at wet weather, highs in the 20s. stockholm at 22 degrees. that's what i mean by depending where you are it may not be as warm. then back toward the west and london, paris, eveven madrid. madrid, high of 39 as we go throughout the day on tuesday. as we wrap things up with a look at north america, i want to point out a couple of areas we're looking at for the possibility of some severe weather. we do have a low pressure system moving in through the midwest of the united states. and then we have a cold front that's down towards

it beat expectation, sap and united continental also higher. in europe higher across the board.r hong kong. all of those stories coming up this hour and joining me to break it all down fox business network dagen mcdowell, townhall.com guy benson and morgan ortegus. dagen: high energy, no sleep, doesn't matter. [laughter] maria: you say one thing object the convention, guy -- >> i'm not saying as an attack on trump, it's like constructive criticism because you have nominees today and tomorrow, they squandered the 10:00 p.m. hour and it's the crucial prime time hour because it's prime time across the country. maria: you heard chris christie and donald trump, jr. by that time, people leave. >> at this crucial moment in terms of tv ratings and the opportunity to really drive a message you have a half empty or worse arena and speakers who are built as head liners with no energy in the room. very odd choices specially when they were good speeches to be given. put rudy, christie towards the very end. maria: don't put the rolling stones at the beginning to have night. >> bingo. maria: w

the concentration camps in europe, the continental u.s. was our concentration camp.olice, not least, the look where we are getting them from. from the fringes of white society. donald trump would never have a child who says he wants to be a policeman or join the military. mitt romney had five sons and not one was in a uniform of any kind. what i'm saying is, what else can we do? host: if you're just tuning in or listening on c-span radio, we are asking about the shootings that took place in dallas. earlier in the week outside minneapolis and baton rouge. the president saying there has been a racial bias in america's criminal justice system, all part of the debate this past week leading into the conventions that will take place later this month. phone lines are open at (202) 748-8000 for democrats and (202) 748-8001 for republicans. if you're african-american or latino, the number to call is (202) 748-8003. a couple of tweaks to share with you from edward who says cops go to where the crimes are committed #black lives matter. to the earlier caller from indiana, the in

continental advancing 9%. maybe the lull is related to terrorist activity in europe which has seemed to die down at least for theent. we've needed the airlines to have a rally. it's finally happening. transports positively on fire. what a bullish sign. how about the turnaround in the fortunes of the disk drive makers? did you see that? last night c-gate shocked people with a guide up in its forecast. for so long the stock has been a one-way ticket. sure, you could argue it came after multiple cuts. that's shortsighted. the average selling price, asp, for disk drives, a real commodity are going higher. they've been laying off people. it could also be a signal of increasing demand hence the 21% run in one day in c-gate's stock price. that's usually what you get for a takeover, right? finally, there's oil. i no longer think oil -- i said that niglast night. oil rallied 2 bucks. allowing for monster runs in the whole group. i could not believe things, how they did tonight, continental resources. these stocks never really sold down, last week's definitive dip in the price of crude. you made fortunes if you bought the

continental markets. dax dropping as well. let's take you through some of the stocks. >> we saw a real rally in asia. in a golden cross. in europeooks like it is read on the industry grid. if we take a look how it is shaping up, i.t. stocks up .2%, not huge gains. health care up 0.1%. consumer staples and telecoms that are down. down 0.4%.aples actually, it is energy down. the rally we saw in asia not coming through in europe. let's take a look at the u.k. 10-year yields. it looks like we are moving ever so slightly higher on that, up four asus points. we are at eight basis points. 1%s yield fell below for the first time ever in the aftermath of brexit. the stocks we are watching today. i have a couple of u.k. ones. let's start with verb very. it reported first-quarter revenues that beat analyst estimates as shoppers in the u.k. stepped up purchases in the final week of that first quarter. burberry surprised investors by announcing christopher bailey would give up his role as ceo and would focus more on creative design as chief creative officer. burberry, 3.8% on that. ismy bloomberg, it said it giving dividends today. i wanted

up on the show, the former chairman and ceo of continental airlines, we'll get his take on how terror is impacting travel with many travel stops in europeure. much more. you're watching "squawk on the street" on cnbc. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. andrea sikon. medical doctor from cleveland clinic, watson, let's review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep. you sound like a lot of medical students i know. >>> i'm courtney reagan. here's

europe are softer this morning, down by .4% vodafone, we're watching the very carefully. not really focusing on the brexit theme, this morning, but talking about the idea that the continentalgly come up by .225% this morning. foxtons though, one of the well known brands among british state agents, reacting to its warn ings. and they are down by 4.28%. and lufthansa as well, down another 1.4% after being hit so hard. it is talking about strikes antiterrorism impacting its business. it did that yesterday. but today, it is again into doing to soften up. yesterday, we thought easyjet and air france under pressure, caroline. it will be interesting to see hopefully, when we talked to heathrow very shortly, if the arnings we are seeing now is feeding through into that story. he will be joining us very shortly. so, the company reporting a 1% ase in first half revenue 35.7 million passengers use the airport. the company said it has got what it takes to get permission for take off, i.e. to build another one might. let's speak to the ceo of heathrow, to know joins us from heathrow. let's talk a little bit about what is going on. let's talk about where we stand post-brexit? any impact

. >> occupancy in england and across europe, are people actually going to england because the see the pound. >> yes, we have more and more continentaluropean people going to london benefitting from a 15% drop in currency. our currency is still good for the hotel in london. >> in terms of the strata of the type of traveller these days, you have historically focused on some of the great luxury travelers wi travelers, right now are they traveling and spending the money they used to be. >> we are in a blessed industry. we are in a industry where tourism increases. likely to increase in the next five to ten years. the high end customers are still traveling. they are very loyal to a brand. they have a soul and a lot of emotions out of those brand. then you have for us the economic brand which is half of my business which is mostly inbound travel which is basically the small medium size enterprises which are local and you're not depending on outside traffic. accor is well wait sbood the high spenders which is international basically travelers and the locals for the economy brands. >> competitively, how do you look at the impact of the star