i'm steve sedgwick danske bank's ceo has resigned amid an alleged money laundering scandal as its probe into the estonian branch implicates customers from the russian federation. >>> europe joins global stock gains shrugging off tensions even after china retaliates tariff against the united states tariffs. beijing says they have the tools to deal with economic challenges but they will not resort to de-valuing the currency sending the yuan higher. >>> and michel barnier says brussels is ready to improve its offer on the irish border ahead of a make of break leader summit in saltzburg let's look at european equities two thirds of stocks in positive territory. the key point from overnight is there was a measured response from china, ie the top end of tariff implications has not happened, and they have come in with the 5%, 10% bands rather than the high of 25% yes, there has been retaliation on both sides, but we are seeing perhaps a lessening of the worse ramifications of this round at least, though there's some extraordinary comments coming out from various observers saying this one could

steve sedgwick asked him what he thinks and why the u.s. economy is growing >> the u.s. because it has just received a massive fiscal stimulus. the fiscal debt of the u.s. government, the deficit has been brought down from 10% in 2009 and getting down to 3% by 2016 with, of course, the republican party saying the deficits are far, far too big and only some irresponsible democrat like larry summers saying we need to hire a deficit to get it going trump has unleashed a massive, massive increase in the u.s. fiscal debt. it's going from 3%, up to 5%, it will be up to 6% this is a large deficit when an economy was already growing. everything we know about economics, if you put in a huge stimulus to an economy that is already right, you'll make it grow faster. out there you'll create inflation and you'll create increased rates unless you slow it down. as was said yesterday, the u.s. economy is growing very, very strongly but it is fragile because it is based on a really huge fiscal stimulus now simultaneously we are seeing the emergence of a problem which is really, you know,

steve sedgwick joins us from there. steve?i'm in this shot, because it's beautiful. i had an amazing conversation with the former italian prime minister, he says if we're not careful we do not want to repeat the mistakes of 100 years ago, but what about the mistakes of ten years ago? what will be the lead for the next crisis? i just spoke to one of the great minds here, neil furgeson from sanford, head of the hoover institute. he's been saying the next financial crisis will not be based in u.s., it will not be about mortgage-backed securities, it will be about china. let's listen in. >> if one is looking for trouble on a large scale in the world economy, it's not italy you need to worry about it may be china which has had a disastrous stock market performance this year. the currency has been under pressure it's clear the peoples bank of china doesn't want to do a devaluation. look at the debt levels in china. look at strain that the system is coming under because of this breakdown of the u.s./china relationshi relationship >>

steve sedgwick joins us from there. >> you know better than me, you have followed this story in fine detail over the last few months and years of what a problem italy has got at the moment. let's remind viewers of the back story before we get to where we are now. italy has 11% unemployment rate. italy has a quarter of all the nonperforming loans across the eurozone italy has a debt to gdp of 132% and agreed to commitments in 2019 to get its budget deficit down to 0.8 a budget which will be balanced in 2020. this was a previous government commitment the coalition is coming forward with its budget which has to be presented to the commission by october 15th that's the back story. the facts of the matter is the chances of hitting those previous-agreed targets are zero that's what the market has been said yes, the spread has come in a lot from its highs of the last month. but there's great concern that the economy minister will not be able to control the two wings of the party controlled by the deputy prime ministers, i did m dimayo of the five star and salvini. these are unfunded commitm

lng targets may be a prime target for the xi jinping government my colleague, steve sedgwick is in barcelonahis morning. this will have a big effect on the energy market. >> i thinkyou're right i think we're trying to work out in broader energy markets, in the oil markets and the gas markets who the winners and losers are as we know, the world gas markets are competing with oil markets. they're competing with dirtier hydrocarbons like coal but also competing with renewables. people are wondering how this affects the gas industry in particular why do we care about the gas industry it's a major part of the growth energy consumption for china the chinese have built up natural gas. a lot of that, a vast amount of it, 45% in the next couple of years will be imported the chinese have not domestically cracked shale they don't have the natural gas production where they need it to be it will be a long way until they get there. imports into china and exports from china are key everybody is looking to export their excess we've been speaking to a host of people including neil chatterley he has basically

jump on a boat after this like james bond >> i think he did that after we cut away from the shot steve sedgwick move lower, almost 3%. announcing new strategic vision. sara eisen sat down with the ceo dirk van de put in a cnbc exclusive earlier this morning, asked him about amazon and what it means for his business. >> do you think the acquisition of whole foods will change the entire landscape >> yeah, it will i think other retailers will react and they will -- >> already seeing it >> i think the main thing is the consumer is changing, online is going to become bigger and bigger every day any detail needs to be taken seriously. >> you shifted your strategy >> yes, now 40% of our marketing investments to digital we're training the marketing department to be more digitally oriented, and that's one of the big transformations in the new strategic plan we need to adapt to this new world. this isn't just any moving day. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-

steve sedgwick will be talking trade policy and italian instability with the great and good of thebusinessd. join us for interviews with the new chairman of telecom italia and then former prime minister paolo gentiloni. let's look at italian markets. you can see all four of the major indices are now in the green. the ftse 100 is up 0.10% the xetra dax is up 0.30%. the cac 40 is up 0.25% in italy it's up 0.79% the stoxx 600 as a whole has turned positive. let's check on some currencies as well. we can see the euro is still trading slightly stronger against the u.s. dollar. the pound is bouncing back against the dollar it's stronger by a fifth of a percent. the dollar is weakening against the yen as well as the swiss franc by as much as a fifth or a quarter there of 1%. let's check in on the u.s. markets ahead of the open on the other side of the atlantic the s&p 500 looking to open very, very slightly higher the dow jones also now looking to open slightly higher. being called up more than 20 points the nasdaq as well looking to open higher, being called up 10 points that is it for today's p

steve sedgwick, always great to have you with us. >> there's no way.> and the five lines is just a bit too much, to be honest with you. >>> coming up, nick johns ton has a look at this morning's one big thing. >>> also, why christine blasey ford wants the fbi to investigate the allegations against the supreme court nominee brett kavanaugh. >>> plus, the new film looking at the social economic and political impact of president trump's election victory. "morning joe" just moments away. y "morning joe" just moments away. . it's time to get out of line with upmc. at upmc, living-donor transplants put you first. so you don't die waiting. upmc does more living-donor liver transplants than any other center in the nation. find out more and get out of line today. so shark invented duo clean. while deep cleaning carpets, the added soft brush roll picks up large particles, gives floors a polished look, and fearlessly devours piles. duo clean technology, only from shark. oh, look... and fearlessly devours piles. another anti-wrinkle cream in no hurry to make anyth

that conference on monday and what could be a critical moment for theresa may and her government steve sedgwicke there and covering it. >>> volkswagen is reportedly expected to terminate the contract of audi ceo rupert stadler as soon as today that's according to the "wall street journal." stadler has been in jail for months in connection with the diesel emissions scandal the announcement is expected to come after a meeting of vw directors later today. >>> tesla shares plummeted in after-hours trading after the s.e.c. announced it is suing ceo elon musk for fraud. the s.e.c. alleges that musk made false and misleading statements about taking the electric carmaker private in august the regulators are also looking to remove musk as chief executive. the tesla ceo rejected the claims and stressed the facts will show his integrity. the s.e.c. outlined why it found him to be reckless, particularly in referencing a specific price the company would be valued at >> we allege that musk had arrived at the price of $420 by assuming a 20% premium over tesla's then existing share price and rounding up to $42

steve: and apparently there is dash cam video from his cruiser in sedgwick county wichita, kansas. to a news report i have read this morning they have been unable to download it so far. at the time of the shooting he was wearing a ballistic vest but the bullet in above the vest. brian: he called for help. ainsley: they found him lying on his side and suspect lying on face and it was a .40 caliber weapon on the ground next to them. we also have other news to tell you about. let's go down to the carolinas where that storm has never been more dangerous. officials warning behalf lies ahead as hundreds remain trapped in their homes in the wake of hurricane florence. brian: slow moving storm killing at least 17 people. steve: griff jenkins is live with more on the rising water. griff, i have heard people down there are worried because there is a possibility you could kind up with close to another foot of rain u. griff: that's exactly right, guys. florence is not done. it's not just the deaths. if you look at 15,000 people in shelters. more than 1,000 rescues already over the last four da