vestment office at ubs wealth management.join matt and i on bloomberg radio at the top of the hour. radiol be on dab digital to discuss more about what is happening in the global markets. the white house front and center in that story. let's not forget the fed or the data coming out of the u.k. later. city one one -- minutes into the session. we are off, that we have faded the earlier selling a little bit as you can see. european equities are pretty flat right now. it is august. it is the middle of august. ditties in the market. divvies in the market. this is bloomberg. ♪ matt: all right. here, we see the sun rising. i guess it is risen. shining over the brandenburg gate. it is not shining on the dax index, although the dax, the cac, and the ftse, all of them down, but none of them down by two much. little changed for european stocks after gains yesterday. yesterday was yesterday. what should you be watching later today? 11:00 a.m. you -- u.k. time, and alibaba. a lot of people watching the market cap of alibaba as it gets re

upcoming,n elections is it time to cash in on the euro gained, we will speak to a ubs strategist whoaid it's it is time to do that. he will explain why. in banking, we will take you inside wells fargo's plans to restore its image following the phony account scandal, why listening more could be the key to their success. before that, let's look at where european equities are trading now, just under 30 minutes to the close and the losses on the stoxx 600 becoming quite entrenched on some of the country benchmarks, losses of more than 1% and on the stoxx ,00 right now, down 8/10 of 1% red across the wheel with every industry group in lost territory . health care, real estate, consumer discretionary underperforming, the travel and leisure stocks underperforming for a lot of the session. are here, risk aversion partly on the policy paralysis in the u.s. that perhaps has been compounded by the geopolitical risks and the ongoing investigation with the terror attack in barcelona. volatility, what is interesting, i have the fix in blue and the v stocks index, this is year to date, we saw both

david: still with us is julian emanuel of ubs. these two dubs, that we don't have the inflation data. go back to before the break. you were saying what could turn things around is that the fed moves too quickly. does that mean week inflation is encouraging to you? julian emanuel: i wouldn't put it that way. seeink what you want to is over the next month, how this course develops. you put out the doves yesterday and we probably want the jacks in the whole, but then, the fed meats in september and there is this push and pull between the whole idea of normalizing rates, whether you do that really just to return to a path or gather more ammunition for the next downturn. is atct of the matter this point, the market doesn't believe that the fed is going to hike again this year. therein lies the potential difference that we saw in march when the fed boosted people's expectations in a matter of hours. we really have to see how the discourse goes. david: is there an irony here that is more deep and broad? we have central banks at the begin

so says he ubs which is the driving force and they say now is the time we're starting to really talkntral banks about this and starting to talk to regulators and tightening up on data privacy. notably on cybersecurity and this is where it gets interesting. banks have been worried about the cryptocurrency speculation. a lot of it has been linked to not quite aboveboard behavior and you see the hacks and why always asking for paying in bitcoin. and the illegal drug trade done by cryptocurrency. , its kind of tarnished likability with some untoward behavior. now the fear is cut out and they are starting to show this could be an area of growth and underlying efficiency for banks. this is a huge disruption that could occur for the financial industry. briefly, coming at a time when interest and the other cryptocurrencies emma the more well-known ones its peak -- cryptocurrencies, the more well-known ones peak. caroline: every day out of about a record and today is a new one for bitcoin. when will it stop? we see significant spikes. you also mentioned the second-biggest cryptocurrency, it h

tom: the teenage dealers are at socgen, not ubs. >> ubs has a higher average age.tribute to tahthat in some way. companies maintain their foreign pricing strategies. environmentger euro we have a squeeze on profit margins of european exporters, but you don't get the effect on the volume of exports. that is what i as an economist care about because we look up real gdp. we don't care about profits. that is something vulgar our equity strategists get involved with. francine: when you look at youth unemployment, it's still shocking. >> i think policymakers care about the an impact on inflation and moves in inflation. the euro level is not expensive. it's cheap. it's not going to damage growth. i agree with paul, 100%. but the european policy makers did not want to get into a process of normalization, by which i made another round of tapering, slowing the rate of bond purchases. so, they feel squeezed. the europeaninpoint, countries are not doing that great, but the currency is performing well better. how do you expect to have a cheap currency and a big current account

khosrowshahi says he plans for ub toer to pay the bills, but dg that filling a slew of executive positionhey have been without a chief financial officer and a head of finance for quite some time. arianna huffington tweeting this photo from the meeting saying a special selfie at end of a special all-hands this as the uber board selected khosrowshahi from expedia who will officially take the helm at uber next tuesday. a lot on his hands guys, i'm officially like the uber reporter nowadays >> there's been so much news, you delivered it expertly as always. >>> expedia naming a new ceo to succeed dara khosrowshahi. the cfo, mark okerstrom will take the top john b. okerstrom will take to us this morning. >>> i wanted to come back to a side point about these ceo merry-go-rounds. someone has an impressive job as ceo to make that worth while >> he stands to make a lot when the company goes public. >> absolutely. but it's an expensive proposition. >> he was in 2015 the highest paid s&p 500 ceo >>> stocks to watch today, workday reporting second quarter earnings and revenue that topped forecasts. th

mike ryan from ubs joins us now. mike, i'm looking at vix. it is spiking today.is 20. to give a little pushback, are investors scared? >> i don't want to overreact today. this is risk-off based on event, concerns about escalation and tensions in the korean peninsula and global growth and financial markets. we still look at this as a low probability event. we still think if you think about nuclear war to us, that is still unthinkable, conflict on the korean peninsula. we also recognize the acceptance of icbms that could hit the united states is also unacceptable. i think what we'll see something has to be worked between those. you have to pursue diplomatic solutions include implementation of sanctions against north korea. lauren: geopolitics changes everything i have get it. when you focus on the trump agenda, speaking ledge slate of of -- legislatively, charlie gas broke a story. they couldn't get health care done on the in the senate specifically. there might be a rift on tax reform and tax cuts. do you think that will hurt the market because that is what invest

are james and a guest from ubs. it is a great honor to have you with us, jim.ther ball of walks. to our audience what a grand jury is. it is unique to the united states. nobody really does this like robert mueller is going to do this, do they? james: that's right. it is a delight to be here. grand juries, there is an old cliche that if it prosecutors once, a grand jury will invite a ham sandwich. it is a trial with no food defense. present all of his evidence to the grand jury. the grand jury's question the prosecutor. it is for that reason the prosecutor can drive the process anyway he or she wants, and by and the result of a grand jury is typically an indictment. that is a charge, which then leads to a trial. tom: one of the great separations of this is the idea of a grand jury as accusatory or as almost an inquisition. there are different ways this is done in other countries. let's say he is in front of mr. trump, junior, who i believe has been subpoenaed. mr. trump, junior, for example .s one who will have no defense we'll be make accusations or are they fi

first, we have ub-40.. >> steve: yeah. >> jimmy: it's a bad name for a a birthday party. [ laughter ] great name for trump's approval rating. [ applause ] yeah, ub-40. next up we have friskies. well, that's a good name for a a cat food. it's bad name for an hr department. [ laughter ] >> steve: that is bad. >> jimmy: it's great name for a a tsa agent. [ laughter and applause ] here you go, just let me on the plane. just let me on the plane, please. after that, we have yankees, there you go. [ cheers and applause ] that is a good name for a a baseball team. that is a bad name for a a massage parlor. >> steve: what? [ laughter ] ♪ yankees! >> jimmy: that is a -- it's a handshakes. [ laughter and applause ] there you go. >> steve: "get in here." >> jimmy: up next we have white walker. well, that's a good name for an evil character on "game of thrones." it's a bad name for a sneaker company. [ laughter ] it's a great name for mike pence on a treadmill. [ laughter and applause ] white walker. >> steve: he's a w

uncertain about, in terms uncertain about and insol uability of those and we did a survey recently, ubs, that surveyed 2800 high net worth individuals and what they said is 80% of them responded this is the most uncertain time in history that's no surprise -- >> 80% >> 80% the other interesting part of that, somewhere around 50 -- and i might be slightly off, feel that they are able to deal with that environment today so what they are saying, we have a goldilocks environment. >> they are rich, ubs clients. i feel they can deal with it too. that's called the availability bias, they feel it's most uncertain because the media is telling them it's so uncertain how uncertain was september 10th, 2001, nobody felt uncertain then. >> there are always things that can knock you in another orbit. >> that's my point. >> whether we feel certain or uncertain -- >> the only thing that's been certain is uncertainty. >> with that we have to go to a break. >> best buy, lulu lemons, those trades and more on the halftime report what are you working on? let me show you. okay. our thinkorswim trading platfor

er we'll talk about ub and the great service and product it has created for people.redit goes to the early team, the doggedness, the ability to take on a whole bunch of things against all odds and build a great product for the consumer. should they have done certain things differently? yes. some of those things need to be fixed. should they have a different culture based on everything we have read? yes. clearly a leadership change is needed and that is being talked about. i think it will be a challenge, because every situation we see, the risk appetite changes. the good news is uber has multiple founders and some of the others are still involved. one hopes they can provide the backbone for risk appetite while a new leader works with them on cultural issues and tries to make uber as good as the product. emily: your name has been floated as the ceo job. are you up for it? >> i think the board has made clear they are looking for a ceo , an existing ceo. emily: are you interested? >> i cannot answer that question, since i have not had any conversations. emily: you have n

it was the head of ubs france, who told a committee earlier this year. it is a recent statement.our years ago. before 2013, yes, the situation was really different. but in the meantime, we have made four incremental reforms on the labour market. i think we already have the situation which is not so different from germany. and with new reforms, we will move somewhere between germany and the uk. hopefully closer to the uk. it will be a different situation. it won't be that far away from the uk, perhaps ireland. it will have a more flexible labour market. christian noyer, in paris, thank you very much indeed for coming on hardtalk. thank you very much. hello. the area of low pressure that brought wednesday's rain is still close enough during thursday to produce showers across the uk, making it quite windy too. it is gradually edging its way north—eastwards. not quickly enough for many of us before it gets to scandinavia and our weather improves. plenty of showers from the word go across many parts of the uk. the north and west in particular. some of these will be heavy. the risk of

ned room built or soil march to ub disclosed buyer. >> pretty cool. i ton no if he want the cardboard cutout looming over me in the newsroom. >> i may be tibe give that i let's see. we got or selves a beautiful day now. low 80's. low humidity. reminder everybody gain. a big deal. newschannel 8. abc 7 teaming up with dc united and capital area tomorrow. in the, through the day 7:00 to 7:00 on 14th street in southeast to stuff the bus backpack and school supplies help the kids out because school is getting close be a stuff the bus. so there's temperaturessing that the day and start in the 60's be a ebb up in the low he a. now tomorrow. tomorrow evening, a first preseason game televised at 7:30 and red skins travel up to baltimore for ravens' stadium the game on newschannel 8. the weather be spectacular and just a quick look ahead here. well, show you the weather continue until the showers and thunderstorms get in the forecast for friday and the weekend. all right. thanks, doug. >> thank you for joining us this midday be sure that watch abc 7 news at 4:0

it was the head of ubs france, who told a senate committee in febuary this year.ably taken from reports done four years ago. before 2013, yes, the situation was really different. but in the meantime, we have made four incremental reforms on the labour market. i think we already have the situation which is not so different from germany. and with new reforms, we will move somewhere between germany and the uk. hopefully closer to the uk. it will be a different situation. it won't be that far away from the uk, perhaps ireland. it will have a more flexible labour market. christian noyer, in paris, thank you very much indeed for coming on hardtalk. thank you very much. hello. once again, this sphere is beginning to get a bit overworked. it has been one of those weeks. the reason? that area of low pressure has been thereabouts across the british isles for much of the past week. there are signs of a change, but it is going to be oh so slow. feeling that way across northern scotland from the word go. showers, if not longer spells of rain. that is not the only area. coming

ub next, steve hartman answers the question nobody asked-- what can you learn from a clinkenbeard?on: we end the week in the hoosier state. why say question for steve hartman "on the road." >> reporter: we came to indiana looking for one of life's most elusive secrets. we'd heard that deep within knox county, indiana, back amongst these cornfields, there was a cluster of people who had all unlocked the mystery of a long and happy marriage. >> years. 61 years. >>t wiarllri 61 be 59 in decemb. >> 55 in november. >> soon be 53. >> 4. >> 54, okay. >> reporter: but here's what's even more remarkable-- they're all related. together, the eight clinkenbeard siblings have amassed nearly half a millennia of marriage, 449 years total. so i figured if anyone had the secret to wedded bliss, it would have to be these couples. >> everybody just kind of gather in. >> reporter: so i gathered them for a series of interviews, and here's what i learned. >> big smile! >> reporter: if you want to stay married forever-- women, you need to speak your minds. >> i cldou tell when she was ticked. >> reporter

a report released today by the swiss bank, ubs, predicted planes operated by remote control could be reality by 2025. remember, that's just eight years away. commercial flights without pilots could begin sometime after 2030. passengers can save as much as 11% a ticket if they boarded a plane without a pilot. >>> what if you were offered unlimited paid time off from work. it's happening more and more in the corporate world. at least they say that's what they're offering. researchers at the university of iowa found more companies offering unlimited vacations these days. they include tech firms like netflix, linkedin and general electric, and also include lesser known companies. grub hub a big one in the bay area. employees don't seem to be abusing their privilege. they report some workers take less vacation than they did with a fixed amount of time off. a lot of them take two or three extra days per year. east coast storms are stopping many vacation plans. however, the storms continue, there is a little bit of relief. major airlines are waiving change fees from the mid-atlantic and nor

inintegrity capital, incredible woman, and a serial entrepreneur very successful his latest company is called ub. let's see them. >> hello. i'm here to butter you up. my company creates high quality natural organic shea butter products. i was inspired to create it after serving in the peace corpse our business model is a fusion of high product quality with social impact. the customer wants access to natural products and they want to make a difference in this world. according to to a harris pole 237% of millennial women want to buy all natural products. this is not a trend. research predicts by 2020, the natural products market will be $15 billion. the customer can find our products through our line at mgm resorts, we have a spa line with them. as well as whole foods markets. i'm looking to raise $2 million to support product innovation, also build our supply chain and make some improvements, as well as sales and distribution. >> nice. i'm going to stop you right there. you got a lot in there. i'm going to give you two these. i need numbers one to ten, what do you think of the product? the pitch?

wayne gordon, ubs wealth management. coming out, jay y.south korea's family-run corporate giants? ♪ rishaad: samsung down, markets reacting to the jailing of jay y. lee. does this embolden president moon in his plans to reform? >> opinions are split. jay y. lee is appealing. it is a harsh sentence for a top conglomerate leader. rishaad: they asked for 12. >> they went midway to send a message, but at the same time, it is not that much time. any sentence of more than three years cannot the suspended -- cannot be suspended. one management group saying the government will push harder if the economic conditions improve. global investors saying it sends a strong message. does show the government is better than in some other places, japan for example. theasset manager saying one case one have an impact on reform. it is a milestone along the way to actually getting some change, to loosening the grip of conglomerates and south korea. grip has been long entrenched, and they are huge employers in an economy that is export-led, and that is important

. >>> ubs has released a report that remotely controlled airliners could be taking nauf eight years. >> passengers aren't on board with that idea yet. only one in five said they would take a pilotless flight. >>> t emotional is offering a 55 plus plan. >> it's offering seniors two lines for $60 a month but unlike other carriers this is a full-fledged smartphone plan one limited data. >>> apple is on instagram, the company's showing off photos shot on iphones by us. >> apple curators will look for the hash tag shot on iphone and ask to share them on apple's sfram account. your photo could be next. >> haven't we always been >> haven't we always been shooting iph at ikea, we believe your perfect student deserves the perfect room for the perfect price. and... who's there? hey. a boy? oh, on the bed? you never told your dad and i about any... wait, what's going on now? move the flag. ♪ when you recognize something isn't right, make the call to the veterans crisis line at 1-800-273-8255 and press 1. at ikea, we believe your perfect student deserves the perfect room for the perfect price. a

they say ubs has notified the german regulator. the bank and regulator declined to comment.uber's incoming ceo is said to have told staff that an ipo should happen in 18 to 36 months. that is according to people who listened to the meeting. expedia has named finance chief mark bacchus from as its new ceo. he has been at expedia since 2006 and cfo since 2011. don't miss our interview with him at 3:30 p.m. u.k. time. francine: thank you so much. billionaire investor warren buffett says the rally in markets has made it harder to find bargains, but stocks remain his choice over bonds. the ceo of berkshire hathaway spoke to david westin about the challenge of buying shares in the current environment. warren: it was shooting fish in a barrel in late 2008 and 2009, and stocks have been steadily -- well, marchr of 2009 was the low, so it is eight plus years. stocks aren't going to earn much more just because you pay more for them. they've gotten less attractive. they are still attractive compared to bonds. if you look at the 10-year, you are paying 45 times earnings when you buy tha

still ahead, ubs is considering a big increase for its equity research.ther banks also considering policies. a look at how they're all trying to get around new eu regulations. this is bloomberg. ♪ vonnie: live in bloomberg world headquarters. the european close is just minutes away. consideringto be charging clients $40,000 a year for access to basic equity research. that is according to people with knowledge of the matter. this is in the wake of new rules from the european union that require money managers to separate the trading commissions they pay from investment research fees. joining us with more is jason kelly. great to have you in london. we had you on tv from dawn until dusk. this is big news. >> all the talk of the city. nejra: exactly, and bloomberg eeps breaking this news. we're talking about the lower bond of $10,000 coming in from jpmorgan. talking about and all in price, are we? the banksfeels like are testing the waters. we are five months out from this. some of this information is leaking out and what are testing a little to see what the

well, let's discuss policy diversions with ubs wealth management. thank you for joining us.it make a difference if they do cut? what difference does it make to inflation? inflation is looking benign for a country like india. in the case of india, we are not sure. it seems like a done deal we will get a rate cut, but we are not so sure. it is mathematically straightforward that inflation half rebound in the second -- will rebound in the second half. one of the drivers his salary increases, especially on the state level for civil servants from the so that should bring inflation numbers. especially -- there was a quid pro quo, government puts in inflation dampening and capacity enhancing measures, and with the central government 20 months from the national election, we are noticing maybe not all out, but there is a tilt , minimumopulism support prices for agricultural producers the government buys or the hikes higher than they used to be, so we are seeing a couple of measures where it is not so clear inflation will remain as low, also whether the central bank sees the actions o

ubs good research by published recently.an additional 10% to 40% demand on nickel over the next seven or eight years. haidi: there's been a lot of discussion in the industry and monks analysts -- amongst analysts saying it is too heavily weighted towards race metals and you should add more gold to your portfolio. you agree? >> our mantra is that we are a diversified miner, gold and days metals. the nova project will give us a ghting towards mental, but our focus is what we call high quality, long life assets of scale. the nova project is all of that criteria. is a high-quality project, 10 year mine life, and the losers -- and delivers assets. is a prizeow that asset. you are looking for another nova. suppose a company wanted to buy nova.would they have to buy the whole independence group? >> two ways to answer. the first one is i don't think anyone can cut a big enough check. would wed is, why contemplate that transaction when we are only at the very beginning of understanding the value of nova, and the potential, and findin

fedex is joining a sharp contrast with ubs.s competitor, fedex will forgo most holiday surcharges this year. extra charges will be applied only to packages that are big enough to require special handling. ups surcharges-- will raise by about 3%. that is your latest bloomberg business flash. tesla out yesterday with second-quarter earnings. in a takeaway is that they ran through almost $1.2 billion worth of cash. will that convince investors to take their foot off the gas? bloomberg'ss columnist liam denning. all the money they raised in march out the window, basically. am: yesterday there is a certain:-like aspect to-- cult-like aspect to tesla. some people said it would not count against the stock because so many people wanted to succeed. vonnie: some people come down hard on tesla. it needs to raise more. it is not have enough cash on hand. liam: right. they were asked about that on the call last for now, they are saying they want to go out and raise more equity, and they may not need to. hand, in the past, aboutave played co

new note from ubs suggests pilotless planes could save airlines 35 billion a year pilotless planes are feasible, could appear by 2025 all this week, talking future of work how technology and other factors change the workplace, who the winners and losers will be this hour we focus on how businesses can profit from new economic opportunities while safeguarding employees albert ellis joins us. thanks for taking time on what's driving change in the employment market what is the driving force? >> development of big data, software engineering that can take machines now and give them some sort of artificial intelligence of course, we have seen google leading the way on that. most technology companies are making significant investments in machines, in computers that can replicate what humans do right now. >> whenever i have a discussion about how destructive ai will be for the jobs market, it is tale of two stories some say it creates millions more jobs, others say millions of jobs erased from this planet. where do you stand you have some skin in the game given you run a staffing company. you

he is still charged in keen county with stealing hundreds of thousands of dollars intended for yth uba >>> federal investigators say they can't determine the cause of last month's four alarm fire in oakland. the report by the bureau lists the cause as undetermined. the fire broke out around 4:30 in the morning. the blaze also forced the evacuation of 700 people from nearby buildings. >>> newelev d those two attention seeking dare devils who climbed the golden gate bridge earlier this year. they are getting slapped with a lawsuit. jessica castro has the details. >> reporter: the golden gate bridge district is suing the duo. you may remember they recorded this student, blasted it out on social media. the man who posted the stunt went by the name peter tee time online. his dare devilartn is thomas rector. the two reached the top of the north tower of the bridge back in april by climbing up the suspension ropes and up the main cable with no safety equipment. days after pulling off the student they described the climb to my abc 7 news colleague. ta ake listen. >> pretty steep. we have to g

the proud marching band with a great history suddenly had an ub certain future.after budget cuts, former band director just decided to push his retirement up and get out. that was bad news for students. it got worse as band camp rolled around and the kids didn't have anyone to lead it. but you can see and hear the bands on. >> band is like a family. like most of your friends are in band. people love playing their instrument and putting on a show. >> reporter: these two weren't going to give up on their passion. in the short-term they would run band camp. they put out the word they were holding practice. >> we didn't have anything prepared. we were going to do some basics and show up. >> show up they did. almost the entire band on day one. >> on their own the band practiced marching. everyone bought into the plan and lots of folks in the community and university of delaware helped out too. by the time mike archer was hired as the new director, the band was already where it should be. >> what these two particular students have done is really nothing short of except

for more, let's bring in the ubs equity research analyst.n shares hit a low since the ipo. are they cheap enough to become a takeover target? >> we do not think it is cheap enough yet to think it is a positive risk reward for .nvestors on takeover never a great way to predict that. we are still in a position where it is early in the lifecycle of snap building out their advertising business and there is a fairly volatile set of outcomes going forward that could be both upside and downside. nejra: what sort of timeline are we talking about. when are investors going to lose patience and expect more from snap? to point out right frustration is growing come in our conversations with investors, i would say frustration is the main theme. into the next one or two set of results, i would say investors need to see a better directory in the advertising directory -- business -- better trajectory in the advertising business to turn this around. vonnie: you are one of the analysts that has bogged -- brought down their price targets on snap following this

for more we are joined by ubs director art cashin, as well as our own commentator mike san tolli.y broad-based sell-off can you talk it up to tensions around north korea even though secretary tillerson said we all should be sleeping at night. >> i think those tensions are getting the world's attention. i think that's on the stack of things to be cautious about, stack of things to be more aggressive about i think the stack has just gotten higher. people are looking at the manifestations, whether it's the end strengthening, you see the german ten-year yield receding back, which is a level a lot of people are forkcussed on i think it's up a lot more than really the decline in the indexes would suggest, which means either too many people were caught betting, and have to scramble to cover. they're fighting this undertow for weeks, and the average to be underperforming the index. >> art, what are you watching? >> well, you know, keep an eye on the safe haven trade. this is a very, very dramatic problem. in some ways marginally existential, certainly for the people in airia. it would app

the ubs says that buying euro at this level should be a profitable investment over the next one or twoears. over the next one or two months, it might be difficult to chase the currency higher given that the ecb is targeting inflation. euro pushes down on inflation which is still well below the ecb's target of 2%. the data points of interest today in the u.k. were consumer credit cooling slightly in july amidst concern amongst bank of england officials that the market may be entering a bubble of secure lending. it grew 1.2 billion on the month. banks have been warned recently that they may be getting into a spiral of complacency in consumer lending. ofresponding to the buildup credit by ordering lenders to hold extra capital and strengthening rules on mortgage lending. untila will be in japan friday. i thought we would look at the trade balance. trade deficit a in the u.k. four in the u.k. for a number of years since at least 1988. it has been increasing in the last year or two. the problem for the premier is as she tries to hash out a provisional trade deal with japan, their focus is o

. >> clearly this story is not over let's bring in caroline simmons with ubs wealth management thank you very much for your time how encouraged are you that global markets have been able to take at least this time the north korean developments in their stride or do you feel they're underpricing the risk? >> yeah. it's interesting the selloff yesterday is unwinding today. i think what it reminds us is that it's the fundamentals driving the market, particularly over the medium term it's about global growth, about earnings growth, and these sort of political and geopolitical events causing short-term volatility but over the medium term it's the fundamentals driving. we're in a situation where we're trying to work out what would trigger a sizable correction, because we had a correction 7% to 10% every single year since 1995 this year has been relatively devoid of such corrections do you feel that it's going to come from north korea? is it coming from monetary policy is it coming from policy mistakes in the u.s. administration what do you think could be the trigger here >> so, i mean, we'

ubs did this research and they say it could save the industry $35 billion a year.rying to let it all set in here. so you're saying there's -- how can -- how can that be, nick? i mean, how realistic is this? >> it's pretty realistic. one boeing boss recently said that the building blocks as he put it are already there. this could happen -- don't forget, autopilot has been in planes in some form or another for 100s not like the "airplane" movie autopilot but ubs says this could happen technically feasible they say by 2025. >> but yet autopilot, but you still have a pilot there. >> somebody is taking over to take off and land. in the air is fine. put it on autopilot but the question is we know what the industry is thinking about this, but what are the passengers thinking about this? what has the response been? >> yeah, well, michael, that's not so rosie. people are a bit like you, 54% of people polled said they would be reluctant to get into a pilotless plane. only 17% said they would be gung ho and most of the people keen on this are younger people but pilots union,

upcoming,n elections is it time to cash in on the euro gained, we will speak to a ubs strategist whoo that. he will explain why. in banking, we will take you inside wells fargo's plans to restore its image following the phony account scandal, why listening more could be the key to their success.

. ♪ >> ubs is said to be considering charging clients $40,000 a year for access to basic equity researcheople with knowledge of the matter. this all in the wake of new rules from the european union that require money managers to separate the trading commissions they pay from investor research cash investment research -- investment research fees, what is also known as mifid >> we are not only talking about price. it feels like these banks are testing the waters here, we're five months out of this and some of this information is leaking out and people are testing a little bit to see what the market will bear. we will not really know what it will bear until this is really in effect and until clients really start to see what they are getting for this money. that is why i think you are seeing a bit of a range here. it also feels like some of these banks may be putting out some prices to see of they can gain some market share. this is going to be a very different competitive landscape for them. ♪ >> the ecb brings out there accounts of their last meeting. the big headline is that they expresse

ub ser still looking for someone to replace kalanick. >> i an young man is accusing doichtz excessive force. he says they were tasering him unnecessarily while he was in custody. >> also the hack on hbo. what cyberthieves got from the cable network. >> we'll ♪ what should i watch? show me sports. it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. >>> live where you live, this is abc7 news. >> good evening once again. we'll begin this half hour with the u.s. sanctions against russia for meddling in the u.s. elections. the kremlin delivering its own response. >> vladimir putin himself announced the dismissal of more than 700 diplomatic staff in russia. martha raddatz has more. >> reporter: russia now striking back at the u.s. announcing the expulsion of u.s. diplomats from the country demanding more than 700 embassy and consulate staff be remove from their jobs leaving just 455. the same number of russian diplomats remaining in the u.s. after we expelled personnel last december. russia al

this is a predicament some are in how does the ub explain to the governing council that, yes, we understand the hawks when it comes to the better than expected economic date tax but the doves go on about the lack of inflation what do they do? >> i think what they do is what they have been doing, focusing on the reeling back or tapering of the qe, but anchoring rates at a low level which is why market expectations, the ecb forecast as well is for rates to stay where they are into 2019. but it also, because of the good growth numbers, it allows them to start focusing on bringing that tapering in >> nicholas, we'll have plenty more discussion with you on jackson hole on the outlook for monetary policy and central banks in a little bit. nicholas brooks from intermediate capital group >>> here's a quick look at the equity markets on this fairly quiet friday morning the stoxx 600 is trading at a session high, roughly one hour into the trading session we're up by 0.3% we're waiting for the speech coming from mario draghi that's happening at 8:00 p.m. uk time later on out of jackson hole today let'

firms including ubs, say domestic stocks are poised to benefit from europe's economic recovery.oj, finish up with the inflation data, a key measure of price changes, rising slightly, lagging well behind gains in economic growth. central bankers clearly struggling to spur a significant improvement in inflation. core consumer prices, which exclude fresh food increased from a year earlier. the forecast was .5% and price increases still well below the boj's 2% target which why it pushes out its target for when it hits the 2% objective for the sixth time in its july policy meeting. this chart shows the ecb key measure, the blue line, the fed key measure is the white line. 90 minutes into the trading day in the u.s. how is it looking? >> some green is good after a range bound lackluster day yesterday. the nasdaq mostly flat. slightly to the negative. the s&p off the highs of the session one hour ago, it was up more than one half of 1%. slowing a little bit back on the gains about 2/10 of 1%. we heard from janet yellen. mike mckee said it was the boring janet yellen. i will point out o

let's bring in art cashin, director of floor operations for ubs. love the hat, arthur i hope you've heard part of our conversation here and i'm wondering how you would weigh in on what this all means and where you think we go from here, based on the experience of hitting these kinds of major milestones. >> i think you've got a couple things going for you one is kind of structural. the dow weighted as it is to high-price stocks have been benefiting from things like boeing and apple and i'm a little troubled by some divergences that we're having, particularly between the industrials and dow transports now. and the last time we've seen this kind of dif vvergence, the markets didn't go anywhere the other concern i have is with the calendar we're going into august. august is the second worst month of the year followed by september, which is the worst month of the year. so historically, that's a little bit of a problem to prove that i'm probably ready for that aluminum foil hat, i would like to remind you that this year ends in the numeral seven and mark

ubs saying they need to spend more than $2 billion by the time it starts model three production and believell have to raise cash based on the fact that we have dropped i $1 billion quarter to quarter, so how concerned are you by the cash burn and the need to raise cash this year? >> even though we are talking about billions of dollars come a digit numbers are easy to calculate. look at the burn for the quarter plus the investment the needs to come to get the model three to where it needs to be in terms of production run, it you could figure out how long some sort ofgo, so capital raise is imminent. julia: you have been saying they are not getting it. they need crossover and need to use the resources of one product or a second. what do you think about the cash burn here? massive improvement and production capabilities has come in with the model why, and as result, it will be a new platform. getting economies of scale by sharing the model three. that will mean they will burn anotherh because it is knows what and who this new production system will cost to develop and apply. julia: the proof w

for this year, we were more in the cautious camp at ubs, we expect about 1.4%.even less than 1% growth. we are somewhat more cautious here than the consensus. we believe that the uncertainty that the brexit process involves will have real economic consequences and that will ultimately have consequences for the bank of england, which we think will stay in a neutral stance for quite some time. tom: how can they afford to stay in a neutral stance? i get the mixture in that it is a different cocktail, if you will, than what we are seeing in the united states, but how do they stay on the sidelines? reinhard: if we think back, the bank of england turned a lot more hawkish earlier in the year , when up to 3 people voted for rate hikes. we think that the slowdown in the economy implies that the sharp rise in inflation on the back of a weaker sterling -- we are now with inflation a 2.7% or so -- we think this rise is eventually temporary, so that over time, given the weakness of the economy, inflation will slow down again and that would be the key for the bank of england

a renewed push for the markets and q2 gdp hits 3% with us, kerry firestone, and rob seechen of ubs privateealth management, one of barrons and forbes' top 100 financial advisers also with us, cnbc senior economics reporter, steve

but forget about the trading jobs ubs says they're hiring psychologists now as well as experts from shipping to confirm the research process others are hiring social media consultants. and computer geeks who can write code for complicated algorithms. it's a whole new world i'm bob pisani, new york >>> is facebook finally going to have to admit it's a media company? it has just launched a rival video platform to youtube called watch which would feature original content from its partners ceo mark zuckerberg said the platform is all about finding programs that bring fans together but some critics say tv have been doing that for decades. >>> tesla is developing electric freight trucks that can drive themselves and move in platoons. that's according to reuters, the tesla commercial trucks are expected to be unveiled in september. long haul trucks are seen as a prime target for driverless technology because of their relatively consistent speeds and the need to allow drivers to rest >>> south korea is making moves to bring in a robot tax due to worry about machines replacing human workers. it plans