Transcripts For CNBC Worldwide Exchange 20240622

Of profits. Its soured by continued weakness from pimco but the ceo defended it to cnbc. Its still a strong bond house it used to be as a performance looks total the current fund has an excellent performance year to date. Almost back to its shiny days in performance. In the black for the Second Quarter in a row as the banks turn around plan continues to bear fruit. The company boosted by cost cutting and asset sales. Happy friday everyone and welcome to worldwide exchange. Im seema mody. Alibaba getting real. Find out how the ecommerce giant is trying to win back customers with knockoff goods. This is it, jon stewart boys out after 16 years hosting the daily showment we bring you the highlights from the star studded show. And we speak to the new venture that will deliver food to your door. Well digest the details. Welcome to the show. So the july u. S. Jobs report is out at 2 30 cet with another solid month of hiring expected. Forecasts call for an increase of 215,000 in nonfarm payrolls versus the 223,000 in june. Now while the pace of hiring has slowed from last year its still double the rate necessary to keep one population growth. The Unemployment Rate is expected to hold at a 7 year low of 5. 3 . Near the range of course the fed believes is consistent with a steady but low level of inflation. Joining us now is the head of g10 fx research. Good morning to you. Theyre looking for some improvement. What is enough to keep september in play . Well, from our point of view its that as long as its above 200k it should be sufficient to make the move. I think a bit more important for the markets, the response would be the average Hourly Earnings following the disappointing employment cost index last friday. A lot of people have been looking for indications that it is disappearing. The company is starting to generate Wage Inflation and we expect more evidence of wage growth picking up, 2. 2 annualized and the combination of outside support has it above 200k. Plus evidence of wage growth. Accelerating should mean that the fed is on course to tighten rates in september. You say its a combination of the two, hourly wages and also the actual number but i have a feeling that over the last couple of days since we got that warning of some improvement in the labor market everybody has been focussing on the actual number whether its 225,000 or 230 or 200,000. Do you think the market is focussing on the wrong print . Theres a knee jerk reaction. Presumably the payroll print itself may have a stronger impact. In terms of how sustainable an impact it will be i think the markets will look at data and refocus on the earnings part of it as well and as long as were above 200,000 that should be sufficient for the fed to say okay weve seen further improvement there so presumably lift off is on the table for september. Effectively what im saying is it will take significant downside surprise today to see the dollar bullish sentiment in the market to weaken significantly. So if anything theyre going into it fairly constructive of the dollar. We expect further outperformance down the road. If the fed does take a more dovish position how do you expect Global Markets to respond . Thats the other big question, really. To what extent a strong or weak print will have sustained impact. Its interesting most recently on wednesday, its quite an impressive nonmanufacturing print. The markets took it as a positive signal. U. S. Stocks did rally on the back of that. So my hunch is is that if its weak and the fed is forced to adopt a more dovish response that should be supported. Overall, i think deposited for Commodity Currencies in particular given the recent shifts by the rba and theyre on course to adopt a more constructive view overall so expectations and further rate cuts down the road but again our central case is for stronger and sufficiently strong print to keep the rally. Are the risk assets front running to what equities are doing at the moment . Weve seen a little reaction we inqui we inquiequities. Still close to the lows of the year and super low Commodity Prices, presumably very fixed income markets and theres growth concerns, inflation concerns, all of these things. If youre worried about growth or inflation. You shouldnt buy stocks. You should be selling stocks and what investors are clearly underestimating is the fact that the impact the drop in Commodity Prices having all export revenues of commodity exporters. Significant declines in fx reserves have been building up over the years on the back of the commodity super cycle. They want any Central Bank Money and Global Fixed Income market so those reflected look mispriced to me. Do you think equities are due a bigger correction . Thats the big question. My hunch is that equities will follower commodities. I think the market is way too co complacent and that discrepancy or the coupling between lower equity risk and lower Commodity Prices wont be sustained for long. Youve seen a significant escalation in nervousness when it comes to the market. The stock market crash in china and the greece crisis as well. How could the external factors impact the feds timetable. So far the fed has been fairly dismissive of that. If you start with the testimony three weeks ago and follow through all the fed speeches we have seen, they have been trying to down play any Significant Impact coming from outside of the u. S. It is generating inflation and my hunch is that the assumption for now is that that need not derail Global Recovery and on greece i think noise surrounding greece is significant. Im not sure theyll feature that. The fed is on course to deliver that lift off in september. What happens after that, it seems that the uncertainty about the impact, obviously uncertainty about the timing is one thing but the impact of lift off is weighing on confidence. Were seeing people sitting on their hands. Not doing much. Just wait and see whats going to happen. Thank you. Youre going to stick around and talk about the boe. The super thursday which was for the doves and not so much for the hawks. So what is your nonfarm payroll guess . Let us know what you think using the nailthenumber. You can see our forecast on the screen. Get in touch with us by email at worldwide cnbc. Com, via twitter cnbcwex. Yours is 210 right . As long as its above 200, that should be sufficient for the markets to continue betting on a lift off in september. Okay. Wilf, how are the markets looking ahead of that report . Lets have a look at these. It was slightly softer in europe yesterday and its a median soft day in europe today. Were looking at about half a percent of declines in the stoxx 600. August for u. S. Equities much worse than july. Were correcting in the first few trading days in august. In both europe and the u. S. But more pronounced in the u. S. Stoxx 50 down as well. Lets look across europe and were looking at the moment at all of them in the red. Ftse 100 outperforming just below flat. Germany and france down 0. 4, 0. 5 . Lets look at bond rates. Weve seen yields tick up a little bit over the first of august but were still looking at 0. 7 for the german ten year, safe haven buying going. 2 on spain. We have the u. K. At 1. 94 . Of course dovish sentiment coming out of the bank of england yesterday. Quick look at it as well. 20 basis points moves each day. Nothing too serious with just above 109 at the moment. Sterling yesterday did have quite a weekday. Only one of the nine members voting for a rate hike. People expected at least 2 or possibly three to vote for the rate hike. We only got one. That fell below the 155 handle being steady around 156 for the last month. A little bit of a sell off on sterling yesterday but today it is flat. Now finally a look at commodities. Monday and wednesday saw two big legs down in oil price and we stabilize just since that second leg down. Just above 45 on wti today and just below 50 on brent. Coming up on worldwide exchange, a new road to investment, were getting on board we egypt as it opens its new canal. Find out how much it costs after this break. Allianz under pressure despite posting better than expected net profit. Its under pressure because the asset manager continues to grapple with outflows. The stock is off as you can see 1. 2 . Earlier we spoke with the group cfo that defended the performance of pimco which lost its bond king last year of course. Pimco is still the strong bond house it used to be. Total the fund has an excellent performance year to date. Its almost back toward shining days in performance. Now bmps shares are sharply higher as the bank posts a net profit of 121 Million Euros and higher capital suggesting its turn around plan is working. The market liking that to the tune of 7 . Telecom italia is slightly higher. Legal charges weighed on the top line. This was the first Energy Report since it became the largest investor. Overall shares flat now. Its off 2. 85 . Sales did beat forecasts in the first half after a week start to the year. The luxury shoemaker saw strong sales in north america and south america as well. Markets benefitting from favorable currency moves but overall disappointments headed there and investors selling off more than 2. 5 . Sterling still under pressure after losing over 100 against the euro after the super dovish bank of england meeting. The governor said this morning the central bank is in no rush to raise rates and hit back at claims to boe rhetoric. This after only one member pulled the trigger this time around. Still with us, head of g10 research. A less than hawkish statement from the boe. Yes. Indeed. It came under pressure. U. K. Fixed income market also supported. It highlights the fact that it will be difficult for the boe to be hiking rates any time soon as long as inflation remains close to zero and the pound continues to rally. The Inflation Report was quite interesting in that they even introduced a measure of domestic Price Inflation which is excluding inflation reflecting the strength of the pound and thats also an indication that the way they see the problem is that, yes, indeed, labor market slack is disappearing. Wage growth is accelerating and its going to get us to a point where domestically generating inflation will be there and things outside our control may delay that decision. That was a bit of a disappointment and its also a warning to bulls that if they keep buying the pound theyre delaying a rate hike. Thats the big factor in terms of the imported inflation with the u. K. Amazingly strong correlation between the inflation print with with the u. K. Given that on a trade basis its so important. Once we still have that qe in europe its probably important. It is. A lot of deflation. Thats part also the open market. The membership in the eu as such. So you import it effecting wage growth here over time but importantly product prices, right. If you think of the the massive fdi we had in the u. K. In the last four years or so, 80 of that came from europe. This meant that actually the likes of rolls royce or other manufacturing firms became part of the vertically integrated supply chains. Needless to say you have all the german retailers competing in the u. S. With retailers and as a result theres an indication for shock price index. Its been in deflation for the last years, right . Thats measuring food and clothing inflation and all of that as a result of the proximity, the trade lengths with europe. The u. S. Doesnt have that issue, right . So if youre hoping that the u. K. Will be able to generate domestically generated inflation, you may be i dont know. Im just less optimistic on the back of that. At the same time it is more confident that wage Price Inflation will put the fed on course to hike. So from that point of view, were still fairly bearish cable. I think that sterling versus and yesterday, super thursday confirmed that view. I just find it all really confusing to be honest. I dont think im the only one here. Leading up to this Inflation Report everyone was positioned relatively hawkish. Even carney himself said a number of times were moving closer to a rate hike. He was taking a page out of Janet Yellens play book. Now he did that again by saying were going to be data dependent and sending a dovish message. Has he made up his mind as to whether he wants to be dovish or hawkish . Its a tough job. Being data dependent cuts both ways. It gives the market something to go with. If youre hawkish then whatever you say you can interpret it either way. So from that point of view its not an easy job that he is having but if anything, i guess, it highlights the fact that the boe will be very cautious whenever it comes to really that div div divergence and so long as that effecting the pound and fuelling fx depreciation its likely to actually delay a meaningful rate hike from the boe. Okay. Thank you so much for your time. Lets switch gears. The egyptian president unveiled the new canal, an 8. 5 billion project finished in under a year. Hadley gamble has the full story. It was a historic day for egypt. With pomp and pageantry and a Major Political victory for the countrys president. A new canal carved out of the egyptian desert in just a year at a cost of 8. 5 billion and all financed by the egyptian public. But with analysts already speculating that the governments figures are overly optimistic. A wind fall as 13. 5 billion in increased transit revenues over the next five years its the Economic Zones plan for around the canal that the government hopes will rake in the longterm cash. Its that longterm investment and job growth that egypt so desperately needs as golf governments begin to tighten the purse strings, the pressure is on the president to perform. When you come to a conference like this you can feel the economic engine of egypt starting to rev up. A string of multibillion dollars deals in marchand a look at the guest list. Leaders from the gulf, africa, russian Prime Minister and the president of france may shed some light on where the president is hoping to find Strategic Partners for investment, next. Earlier this week the Obama Administration reaffirmed a commitment to deliver 8 of 16 aircraft suspended indefinitely after the overthrow of morsi. Secretary kerry delivered the good news but was notably absence today. While the presence of so many leaders from the gulf is no surprise given the major monetary gifts over the years to keep the country in the black they do reflect a widening of the net. A growing cooperation translating into new economic and military deals. When you speak to egyptian officials they do say this is all about maintaining economic stability over the longterm but for many privately they also speculate that this is as much about realignment as it is about financial opportunity. For cnbc news, im hadley gamble. Hadley joins us on the phone now. Hadley, every day on this show we talk about sluggish Global Economic growth so i just wonder how does egypt monetize this investment . How do they justify it . Well, theyre calling it egypts gifts to the world but the question is is the world ready for this. Theyre extremely optimistic. This opening of the new canal, many people think theyre not going to get the returns theyre anticipating but this is really even more about bringing egypt into a new era. Theyre tasked with making this economy work and he has managed to build an entirely, you know, new section on the canal. This is a mammoth undertaking and just about egyptian pride more than investment and an achievement in what a sense is in several years of economic downturn for this company and its something that egypt felt they desperately needed and if you saw the celebration taking place you at least saw it celebrated in the ceremony and this is also about foreign governments as well. Hoping for partnerships a broad and noticeably absent was a major u. S. Figure on that stage yesterday. The russian Prime Minister as well. And this was as much about injecting a sense of National Pride as it was about any economic gain in the short and medium term. Okay. Thank you very much for that. Well be back out with hadley to discuss this in more detail later in the show. Thank you very much. Lets switch focus. Families of the chinese victims of the mh370 disaster are staging a sitin in protest outside of the embassy in beijing. This is after they accused the authorities from hiding the truth about the airplane parts down on reunion island. Eunice is there and filed this report. Theres a very heavy security presence here in beijing. The journalists are being held in a very small area and this is as the Chinese Police look to control the situation and prevent any unrest. The families of the passengers of mh370 have been arriving here. They have been holding a sitin protest but earlier today they clashed with police so they were hoping to get to the Malaysian Embassy and this is after what they saw as a failed meeting with Malaysian Airline officials. One of the demands they had is they wanted to speak with a government representative. They were very disappointed in the remarks that they said jumped to conclusion linking the debris found on reunion island with mh370. They said instead theyre focused on the french investigators much more guarded comments. The emotions among the family members have been running high. Some of them have been shouting slogans and throwing themselves on the ground to beg for help. Some say even if theres a 1 chance their family members could be alive they dont want to give up hope. Still to come on the show, keeping up with the clintons. How hilary found a way to troll the gop candidates on twitter during last nights debate. European markets on the back foot after a sell off state side with the dow closing at a 6 month low. The dow treading water ahead of the nonfarm payrolls report. A repeat of taper tantrum is unlikely when the fed raises rates. This as the Central Bank Holds off on more easing despite sluggish growth. Still feeling the effects of bills departure. Its soured by continued weakness from pimco but the cfo defended its performance to cnbc earlier. Pimco is still the strong bond house it used to be as the performance of the funds is total, it has an excellent performance year to date. Its almost back to its shiny days in performance. Italian lender in the black for the Second Quarter in a row as the banks turn around plan continues, the company boosted by cost cutting and sales. Lets have a look in on markets. Relatively soft today. Half a percent of declines on the stoxx 600. Relatively outperforming only just france. Germany and france both down. They unexpectedly fell for the month of june. Meantime, asian markets are looking like this. We are a little bit higher. The nikkei up by a third of 1 . For the week were still on track for the third weekly drop. That disappointing data out of germany, pressuring the euro right now. Take a look at where its trading. Well, flat against the u. S. Dollar at 109. At the same time you have a lot of traders going long the u. S. Dollar ahead of the july jobs report but consensus is for 223,000 jobs to be added during the month of july. Well see where it comes at 8 30 a. M. Eastern. The top leading gop president ial candidates took to the stage for their debate and current front runner donald trump continued to be the center of attention. Lets get to tracy pot with the full report from cleveland. Trump didnt shy away from more controversial comments. No, he digit, carolyn. People were wondering which trump would show up for this debate. Would it be a kinder gentler trump or would it be the fiesty trump we have seen on the campaign trail. We found out early in the debate he got into it with a couple of candidates but also with the moderator when she asked him about derogatory comments made about women. Trump responded saying she had not been very nice to him and he could say very not nice thing about her as well. It was probably one of the most memorable pieces of sound from the night. In fact afterwards he talked to reporters saying he thought her question was inappropriate and most of the questions were unfair on tougher on him than the other candidates. This morning he was tweeting that he didnt think that the questioners or moderators including megyn were quite professional. And also a couple of other moments from this debate that a lot of people will remember, governor Chris Christie of new jersey and rand paul, senator rand paul getting into it over National Security. A pretty testy back and forth between the two of them over National Security in the Foreign Intelligence Surveillance Court with both of them going back and forth on that and rand paul making reference to new jersey governor Chris Christie giving a hug to president obama. Thats one that you really have to see and then finally a stand out that you might not have expected. Neurosurgeon ben carson. Near the end of the debate he was asked why he doesnt talk more about race. He was the only African American on the stage. He said im a surgeon. I operate on the things inside people that matter the most. Not their skin color and then in his Closing Argument he made a couple of statements that drew laughs saying he was the only person on the stage that ever separated twins. There were interesting standouts as well. Ted cruz, mike huckabee. Well hear from all of them at the next debate coming up in california next month. Thank you for that. Keeping up with the clintons, Kim Kardashian endorsed Hillary Clinton for president with a selfie. Excited to meet the next president tonight. Maybe shell take a selfie with me. Theres unlikely to be a repeat of the taper tantrum when the fed raises rates. The move was already priced in by markets. This after they kept the Stimulus Program unchanged saying the economy is recovering moderately. Joining us is the head of global Asset Allocation. Thank you for coming in. They continue to be very upbeat about the japanese economy which is quite puzzling for many people. Are they too optimistic given that for the Second Quarter many are expecting a 2 annual contraction. It is a case of talking it up. The economy is doing okay. I think okay would be a fair description. It could ideally be growing a little bit more strongly but on an underlying basis the economy is growing about 1 for japan. That is pretty good. Theyre equally optimistic about that inflation target. They still want 2 and currently were seeing cpi at zero. Well that is a bigger problem. Theyre at the mercy of commodity. And commodities and weve seen its going to effect expectations. Generally in the economy and that, inturn, brings inflation pressures down. So theyre kind of swimming against the tide and wages are sluggi sluggish. If we touch on the high level of debt to gdp, theyre not the only country with high level of debt to gdp but theirs is particularly high. Do they have a get out of jail free card because of the high level of domestic ownership . The very loyal domestic owners of their debt . Is that going to last forever or is there a risk that that could flip and change and you could see debt costs rise very quickly. For the moment theyre okay. But the 250 debt to gdp ratio puts greece into perspective because its one of the highest ratios around. Its clearly not sustainable. At the moment the domestic aspect makes it seem stable but i think there is a general recognition that it has to come down. Its only a matter of time and it really needs to start going down fairly soon. They have been struggling to do that. What worries me is the health of the labor market. The key is to boost labor Market Participation but that hasnt started. It hasnt begun. Youre right. The decline in the working population is taking a few basis points away from growth. Boosting and getting more migration are key to the labor Market Dynamic and getting it to support growth. Its been very difficult but you have to give it a bit of time because these things, theyre kind of multievolving processes. You have to give it another couple of years to see what success they have. Are there lessons from other countries on whats happened in japan . Particularly china. If you look at the high level of debt to gdp, china does resemble japan a decade or two before. Do you think china is heading to the path over the past decade . China is slowing down on an underlying basis. I dont think its quite at the level of japan because the demographics are still not as unsuppo unsupported but the declines are speeding up and theyre just reaching that hump and from here it starts to look a bit more negative but were still way behind japan. Is there anything that works in favor of shinzo abe now . During this interview we only talked about negative points. Is there anything actually working . We have to recognize that against these very adverse conditions, debt demographics, the collapse in Commodity Prices, what has been done is actually pretty good stuff. So it gets more than a fast mark i would say. You have to give it a bit more time and things could go wrong and the commodity price falls have derailed the process slightly. You know, you have to recognize that. We just need to give it a few more years. All right. Thank you for your time. Head of global Asset Allocation at aon hewitt. The apple watch goes on sale making it the first retailer to sell the smart watch outside of apples own outlets. It will be available in 100 Bestbuy Stores today and on its website before being rolled out to other locations. Its unclear how sales of the apple watch are going as the company is refusing to release official figures. Shares in htc fell about 10 after it posted another quarter of big losses. The struggling smartphone maker which is suffering from weak demand in china is planning significant lay offs to cut costs. It downgraded the stocks and said htc is facing too much competition from apple and samsung at the top end and from china manufacturers at the bottom end. The stock is down over 50 from this years highs. Moving on, shares in China Railway signal were subdued today after the Worlds Largest builder of rail Traffic Control systems raised 1. 4 billion in hong kongs fourth largest ipo this year. Bernie low has more on the story. This company had more than a dozen investors and plenty of institutional demand. China Railway Communications stock sticking close to shave down offer price. After raising less than originally hoped the worlds biggest maker of train Traffic Control systems is heeding the will of the government. They have plans for overseas Chinese Investment over the next decade and asking Domestic Companies to increase their market share in their industries abroad and increase influence in the global economy. Crscs 1. 4 billion fundraising was small compared to the biggest ipo this year which raised 5 billion back in may and investors hearsay that more confidence building is really needed before the gates open up. I think first of all they have to gain back the confidence in china as well and stabilize the market. A few weeks or by months. Then i think we start doing some ipo in the asian market. It is normal. Meantime, hundreds of China Companies have been lining up to launch ipos. Its one small step toward that but the market remains nervous after the sudden spurt. Nobody is more eager than the Hong Kong Exchange itself to get that train rolling even faster. Well, the ipo is going to come. Iq has never been really disrupted and now that the domestic market does not allow new ipos to come while theyre stabilizing the market we will continue to see new flows coming in. Not only the ones that wanted to be here in the first place. We will probably be seeing other companies that making a decision that are not able to access the domestic market and we dont really know but i think the market for the second half will be quite strong and usually the second half is stronger than the first half. We are currently number one and we hope to be able to maintain that advantageous position. In hong kong, im berni bernie lowe, cnbc. Alibaba will be selling clothes from 20 fashion labels. They signed exclusive partnerships with International Names like timberland. This is an effort to bolster its lineup. And honestly guys its also an effort to boost its credible because the chinese Retail Market is very much flooded with fakes and knockoffs. Its definitely an attempt to boost credible and further their international expansion. They have around 350 million annual active buyers worldwide but they want to increase that from 7 to 800 million at some point. Question is will this help them with that expansion. If you flip it the other way around for a foreign retail brand you must be desperate to get on to the platform. Totally. The reach and penetration it gives you is massive. So they must be pleased with themselves. Other brands will want to get on the flat form too. But theres also still the reputation risk. If they cant crack down on fake goods, if youre associated with alibaba and the on going practices, there is risk. Absolutely. This is also competitive market. Theres the biggest market which is also bringing on Big International brands. So, you know, if youre a u. S. Brand and you want access to the chinese consumer, you have choices there. Not just alibaba. All right. Still to come on worldwide exchange, investing in facebook, p spotify and now stamp collecting. The Online Auction place is their next big bet. Dont go away. That story coming up. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging, a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Is as easy as it gets. Wouldnt it be great if hiring plumbers, carpenters and even piano tuners. Were just as simple . Thanks to angies list, now it is. Start shopping online. From a list of top rated providers. Visit angieslist. Com today. Lets have a look at the biggest today. Guiding full year earnings at the top end of the range. You can see its down the best part of 1 . This comes as Asset Management continues to grapple with outflows. We spoke with the groups cfo that struck an optimistic tone on the outlook for the full year. We could reassure and increase our outlook as we feel very comfortable in all three segments, Asset Management, Life Insurance and also pnc to reach fully our annual targets and we have lifted the outlook to 10. 8 billion euro which is is almost 5 up compared to the year before. And lets ask you about the area of notable weakness here. Do you think you still have reputational challenges obviously as we have seen mr. Gross move on and other rotation of employees taking place within the Fund Management business or is this Something Else about pimco still being a bond house and in the wrong part of the market . I think its still the strong bond house it used to be. Performance of the funds looks total and its despite the outflows so clearly a big bravo to the managers that achieved this performance and our income fund is one of the best in the industry. Switching focus to start ups, Online Auctioneer catawiki raised 82 million. The highest amount of funding ever by a dutch website. The Company Founded in 2008 is a worldwide auction house on anything from collectibles to exceptional items. Its among the latest projects for excel partners which previously invested in facebook and spotify. Were joined by one of the partners. A pleasure to have you on the show. Interesting investment. What would you say to those skeptical of a start up trying to rival some of the traditional titans in this auction house market. I think what we see and what we have seen all around is this is an unprecedented time in technology where theres groebl around us in traditional sectors like marketplaces and mobile and bitcoin, drones action et cetera. What were looking for is for these young entrepreneurs that have an idea that changes the market. That starts everything in a different light and if you look at a company, working with their auctioneers and adding highly qualified knowledge about the sectors theyre working in the objects theyre getting are more special than a place like ebay. Is their biggest competitor the traditional players or the ecommerce players like ebay . This is bringing new people to the markets. So they started in one sector, like you said, stamps or comic books and then find rare finds and we see they have grown from 20 categories when we invested to now 60. You mentioned that these types of exceptional collectible items, i would think of all the industries where the internet and smartphones are collect sd make disruptions it would be one very hard to get involved because you want to go see the items and verify their quality. How does it work and how do you get past that issue. Thats the innovation theyre bringing to the market. They have a staff of 200 auctioneers that know their sectors and make a perfect selection for people and make sure that the items that are there are authenticated and are the right ones and then present the weekly selection cure rated like you would have at an auction. Is this being a tech hub or does it not have to do anything with the city at all . Were excited to see that more historically innovation used to come from london and sweden and you see a lot of nice activity. Investments this year in spain and yes its starting to have been everywhere over europe. You wouldnt expect that from spain would you . In a way you would. The less Traditional Industries you have, the more the economy is struggling and the more theres industry in the start up sector. Switching gear we used to talk about high valuations and excel is an investor in what would you make of the landskap right now as you as an investor that actively looked for start ups to invest in . Theres a lot of momentum in energy and what we really see is the march winners have the ability to grow to an unprecedented scale so the money flowing into the market is a vote of confidence of the strength of these companies. But is it tough to find a great investment given the high price tags that entrepreneurs are commanding . We try to go really early. Predict trends and be at the ground floor. We try to come in when its still three people in an attic and all the way to standing next to them. What about valuations here in europe . More or less attractive to what were looking at state side . What you want to look at as individual companies for the global winners you can pay a really high price tag and you dont want to pay any prices. Overall if you see how quickly companies can grow 200 million users its more a reflection of the opportunity than a sign of the times. Stick with us. Well continue talking about start ups and wed love your opinion on the next one. Now food delivery apps are not new. Supper is a high end Takeout Service that brings top the restaurant fair into london living rooms. Were joined by the founder and ceo. Good morning to you. Thank you for joining us. This is in addition to the fleet of Home Delivery restaurants. So you deliver top quality food. Yes. We try to elevate ourselves above the other companies. Weve gone to the high end of the market. Not just the same star food but the best of what london has to offer. Ive been looking at your website. You have around 20 or so websites on your list that you can deliver at the moment. Have you found it hard to get the top end places to sign up . Do they like to remain exclusive or do they think their food cant be delivered at the top level . It was difficult but we showed them what we could offer. We welcomed it. Its been sort of an interesting sight for them to see whats going on and we have exciting restaurants coming. Isnt the whole point of upscale dining going to a really nice location. Maybe dressing up. Seeing people. Maybe being seen by other people. Soaking in the atmosphere if you will. If you have that delivered to your home youre missing out on a big part of that experience. Were not trying to take away from that and the restaurants arent taking on the Delivery Service to detract from that. What were doing is adding the convenience factor to people that cant get to those restaurants. People with families, single mothers, single parents, whatever. We just want to bring that convenience back and extend the restaurants revenues. Lunchtimes are a difficult part of the restaurants business at the moment. Corporates cant always get out. There are high level meetings where they dont want to go into a public space and they want good food and we can bring them that and insure the quality. Thats what were here for. Its how the food is presented that is the experience. Were not trying to fool them. Were not trying to say this is a restaurant experience you would get if you went to one of our restaurants. This food is presented as best as it can be and we take a lot of care and effort in doing that. Quality and service is behind it and we try to give you the restaurant experience at home and i can tell you that we dont detract from the quality of the food. When you try this food its exactly as it would be at the restaurant but on your own plates. Youre at excel partners and invested in the food delivery scene. What do you make of supper . What is exciting to me is that food seems to be one of these kind of final frontiers of things that havent moved online yet and then if you look across the board, where as innovations in the online super market space, there its moving to high end delivery theres a lot of boom in the market. We see it literally exploding in the u. K. Scene as well as internationally so were very bullish on the market. Would you invest in supper . Were invested in deliveroo. What if deliveroo started adding high end restaurants . Wouldnt that be a big threat to you . Were trying to differentiate ourselves from the other delivery companies. They can do that. Its a free market. Anyone can enter the space but i dont think they want to invest that much time and effort in actually trying to bend or tweak their service. Do your delivery rights stand you out . We formed great partnerships. We have great relationships and restaurants coming up. The market is open to everyone. We are forging and creating the name for ourselves in this particular space. Thank you for joining us. Well speak again soon no doubt. You can read more about how the likes of supper and others are trying to capture the food delivery sight on our website. Well be back in two. Here are your headlines from around the world. The dow poised for a gain at the open after a six month low. Treading water ahead of the nonfarm payroll reports. Front runner donald trump coming under fire for refusing to rule out an independent bid if he fails to clench the republican nomination. Allianz still feeling the effects of bill grosses a departure. Shares slip as a better than ct