Transcripts For CNBC Street Signs 20240714

Euros. Oil prices climb amid mounting tensions between the u. S. And iran as washington ratchets up economic pressure with major new sanctions and President Trump tells nbc news he never threatened to demote fed chair Jerome Powell but claims he has the power to do so if he wants. I have the power to do so. Thats not a threat just a reminder that you can. I have the right to do that but i havent said that. What hes done is 50 billion a nont quantitative tightening, its ridiculous. Well, good morning and happy monday, everybody. To kick off the week were getting german data out. So lets break that down for you. The june efo survey german business moral has fallen in june the Business Climate index came in slightly higher than expectations at 97. 4 versus the forecast of 97. 2 however the execations index come in at 94. 2 versus forecast of 94. 5. Little lower on expectations current condition index risen to 100. 8 in june versus forecast of 100. 2. On forward looking indicators sentiment is little worse. May index revised to 95. 2. Yet to see if thats upward or downward revision. Bottom line, the expectations have come in slightly lower than expected here. Commentary here saying the German Economy is heading for the dull drums they cut their forecast for not only this year but next year as well its still slightly higher than the germans own forecast. Its pretty remarkable what they have to say visavis the commentary German Economy is headed for the dull drums still very much in contraction nar territory and thats what people care about in the context of germany more on that later when we will be speaking to the ifo president in a few minutes time our other main story for today, shares in dime ler, the auto maker are trading lower after the german car maker cut its 2019 earnings outlook. It blames increased expenses thanks to, quote, various on going governmental proceedings focussed on diesel vehicles at its mercedesbenz unit the company warned it would set aside provisions worth a quote high three digit million euro amount im happy to bring in the head of research at bank house mezler join the line. I want to get your take from diamler over the weekend the Investment Community perhaps wasnt ready to take on this amount of negative news that has come out of the company. Yes it was surprising. Certainly we all thought that the new ceo was around only for about a month would have a better start, would have a good start into his new job and that he would even bring us some new perspectives for daimler this is not the case only four weeks after he is in the office he has to deal with old things like the diesel scandal. On the other hand, and this is the Second Thought on the whole thing, what daimler says here reads too much like an excuse, i think. It looks like, it sounds like, if you want some oneoff effects which caused daimler to take a look back, says picture in the first five months minus 5 is really weak and this is a deeper problem. Of course just to touch on that over the weekend, daimler also announce that i had may have to recall up to 60,000 vehicles, diesel cars in germany after the regulator found that they were fitted with software that allowed them to bypass these tests. Back in april, the eu antitrust regulator specifically charged volkswagen, bmw, daimler for this issue how much pr issue do they have with this . Both sides have a pr problem. Certainly daimler. They always said we did not do anything wrong, which is i think certainly not the case and even four years after diesel gate was opened if you want, after the case was opened, we still talk about these things and we still hear the same kind of excuses from daimler. This is certainly not good but on the other hand, the German Authorities like the kba, they come four years later with still some discoveries so to say and this is certainly also everything is but positive that it takes so long to come up with these things. Jurgen, you talk about daimlers excuses. Lets talk what they said over the last 24 hours. They blamed the rise in provisions on various on going government proceedings and measures the company has given no further detail to the media or investors than that. What do you think that actually means . I think this is principally one Diesel Engine which is investigated by German Authorities. This is not completely new we knew that this is german kba. If you want this Auto Industry authority looks at this one specific engine and so what daimler said here, they have to call back 60,000 vehicles. This is probably not the full true, not the full story we hear from other sides that all together some 4 to 500,000 vehicles could be affected including some transporters and this then leads to the warning on this special division, if you want, as this warning is concretely focussed on daimler vans which is the transporter business of daimler and the background is indeed this investigation on this one Diesel Engine. Thank you so much head of research at bankhaus method going back to those numbers sticking with germany, we saw the expectations come in the last few minutes the current predictions for may revised to 107, expectation is 94. 7 Current Conditions 100. 8 in june versus the forecast of 100. 2 were being joined by the president of the Ifo Institute to break down some of those details. Thanks so much for joining us, sir. The Germany Economy in the dull drums. Any chance that changes soon well, thats unlikely what we see at the moment is the weakness in manufacturing continues and its now spilling over to other sectors, in particular the service sector. So here we see that some in particular Industrial Services weakening, for instance. We get negative readings from the Logistics Sector another sector there has been going very well for a long time, construction now also weakens a little at very high levels, still. But all that suggests that this slowdown of the German Economy is going to continue for some time you know, sir, this is a little bit in contrast to the day that we had on friday. The pmi manufacturing numberings that came out showed that the Manufacturing Sector has actually started to improve. Are you not showing green shoots as well . No, we are not seeing that. We see an across the board continuation of the weakening. Its not fast decline, but we see no recovery here so far. But only recently you revised downwards your 2020 growth forecast you have now got 2020 German Economy growing at 1. 7 percent up from this year. Thats a quick recovery and turn around from 2019 to 2020 your prognosis is correct, are you confident that the German Economy can still grow at 1. 7 next year . Well what we see is that this year will be weak, as you say and next year we would expect manufacturing to stabilize there are some factors suggesting that. We expect the World Economy to stabilize further. We have strong domestic demands, so there are some factors that are positive, but currently we have no data suggesting that the turn around in manufacturing is already happening. One final question for you from me, sir weve heard a lot about external factors brexit uncertainty, weaker demand for german products, trade disputes involving the u. S. And china are there any new external factors youre hearing beyond the typical ones i dont think there are new external factors, but there are not just the external factors we have uncertainty about Energy Prices and energy policies, other countries are cutting taxes. Germany isnt. So, all of that suggests that the conditions for manufacturing in germany are not great at this moment last week the European Central Bank President outgoing president opened the door to more easing. Given that germany is now one of the weak spots in the eurozone economy, do you think thats a Welcome Development . Well, i think its an appropriate reaction you know, there is no case for tightening at the moment the question is will it help and because mario thinks it wont help much, he has called upon policymakers to do more on the fiscal front i personally think more should be done to improve investment incentives in germany and other countries that means tax reform and other things i dont think Monetary Policy will save us here. Im sure many people would agree with you, sir. Thank you for taking the time to chat to us coming to us the president of the Ifo Institute. Up next a top chinese official says both beijing and washington should make compromises on trade ahead of a key meeting between President Trump and xi details on that when we come back hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Welcome back to the show some company news for you. Carefour sold a majority stake to suing. Com they sold 80 of the unit for 620 Million Euros values its entire chinese operation at 1. 4 billion euros including debt fierce local competition and strong Online Market meant its sales decline sharply in the last year. And the german retailer metro has received takeover. They undervalue the company and urged shareholders not to accept it ep Global Commerce made the 5. 8 billion dollar bid an acquisition volume and represented 3 premium on fridays Closing Price analysts have been quick to upgrade metro but they raised its rating from underperform to market perform and in the airline industry, luft han sa will start to peg its payout ratio to its net profit the german executive board announce they will pay out a regular dividend of 20 to 40 of net profit adjusted for onetime gains and losses its previous policy stipulated a payout of 10 to 25 of group they issued a profit warning last week but says this new plan will allow it to be more flexible. And natxis sold off some of its Bond Holdings and scrapped entry fees for all of its funds. Its designed to limit recent outflows after the firm suffered significant client withdraws morning star raised concerns about liquidity and governance at that fund all right. Lets take a look at how markets are shaping up this morning. Quick recap of some of the price action head into friday. By the end of the week a lot of optimism in u. S. Equities faded out, but still we had a very, very strong week for u. S. Equities last week s p making record highs for the week indexes up about 3 . Very strong week for chinese equiti equities it was a very strong week for equity performance as well as fixed income and a multitude of other Asset Classes as well. Commodities very much in focus with energy jumping anything from 5 to 6 today, the mood is a little more cautious we have the stocks 600 trading little flatter on the session about. 1 point weaker slightly more red on the board than there is green but all eyes are on the upcoming g20 summit and whether or not there will be progress on the u. S. china trade discussions when the meeting does occur between President Trump and president xi thats it for the macro. Lets look at the individual markets and look at how the breakdown is all of the majors are actually trading in the reds. Ftse 100 just trading around that flat line slightly in the green but treading on water. A lot of scrutiny on autos daimler is right at the bottom that stock is down more than 4 after issues a profit warning over the weekend and higher provisions for their diesel cars so that has been dragging down not just daimler but the Auto Industry as a whole. Other key names down about 1 as well the airline issued a profit warning today theyre announcing a change in the dividend policy dragging down the german index cac is down. 1 . Stock markets reacted quite well to that the name is up 2 Percentage Points. Then the italian index down about a third of a percentage point but after some positive developments on the public finances front with the eu stopping short of going ahead and pushing forward a procedure seems like the two are coming to some form of a resolution. But we are seeing a bit of a negative reaction. In terms of sectors, this is the breakdown on the board we have media up at the top up two thirds percentage point. Food and bench up a quarter percentage point at the bottom, we have autos, daimler down 1. 7 . Banks also in focus down about. 6 Percentage Points banks really have been struggling ever since the ecb turns pretty dovish and yields have rallied fixed income also german tenyear bonds trading close to their alltime lows chemicals down. 6 percentage today. Starting off the week more cautious than some of the price action we had lots more red on the screen than we had towards the end of the week last week. Outside europe, chinas vice commerce minister said both the u. S. And china must make compromises in their trade negotiations the two sides resumed talks ahead of president xi jinpings meeting with President Trump donald trump at the g20 later this week. He did not refer to the u. S. By name but said the tariffs from, quote, certain countries represented a threat to the Global Economy and the u. S. Has targeted the Chinese Super computer industry with export. Added five names to socalled entity list. Eunice young filed this report. The Chinese Government took a cautious but stern line on the g20 listing the parameters for trade talks. They are, no breaching of chinese sovereignty, speak as equal partners and both sides need to compromise, not just one. No mention though of what china would compromise the vice commerce minister a lead chinese negotiator said the trade teams are in discussions ahead of the meeting between president xi and trump the nikkei is reporting they could hold dinner saturday after the summit ends and the minister said that china hopes the u. S. Would remove, quote, inappropriate action against chinese firms, like blacklisting more chinese tech names. The u. S. On friday added Chinese Super Computing Companies to its socalled entity list. President xi is expected to remind President Trump of chinas influence over north korea after xi visited kim jongun last week. One issue china wont discuss, though, hong kong. The officials today say the issue was a, quote internal affair and not for the g20 in case this doesnt result in a breakthrough, the Chinese Media is saying fear is not in our vocabulary there might be a possible olive branch from the u. S. Vice president mike pence was expected to make a scathing u. S. Policy speech about china tonight in washington. Those remarks have been postponed. Eunice yoon, beijing well, the Financial Holding company Raymond James reported 5 increase in client assets during d month of may. Its ceo says market gains have been strong over the past week despite uncertainty. Paul riley joins us now. We hear a lot all the time about geopolitical uncertainty, turkey, u. S. , china, the gulf and yet equity markets have not performed that badly at all if you look at them in the round. Why not . Despite the uncertainty youre seeing globally which worries all economies its Interest Rates and the fak that all government are adding stimulus or not raising rates as in the uk has given the market kind of a boost and its kind of hard to go into fixed income assets when Equity Assets are having higher yield. Its pushing the market up. So you agree with the inflow data i was just looking at some of the flow data. Last week was the biggest week of inflows from i think early on in the year since a couple of months back. The interpretation from the Investor Community is dove Central Bank Gives the green light to go into stock markets why are people reading it that way and not as a warning that perhaps the economy is slowing down so much that the Central Banks will have to be a little more aggressive with the little less fire power than they had in the past its absolutely right you would think with a downgrading of Interest Rates or outlook people would stay away from equities but its been the opposite because of yield and return they cant find it in fixed income so there are cash its paying more but not that much you want a 4 or 5 yield you go into equities. Thats still where the average investor is going thinking theres still time in the equity market before theres any kind of major correction. We had a major rally in fixed incomes. You think its set to fizzle out at this point then well, its come down from very low in the u. S. First time its been under 2 for a couple of years. So even though its a small drop in numbers its a high drop in percentage and thats really caused the rally and bond prices so, well see. But its people cant imagine it being negative like it is in germany, so they dont think theres a lot of room to play there. Looking at this from 30,000 feet as a ceo, but where have you found success for your clients recent sfli where have you struggled . Where have your teams seen that strong yield youre talking about . So in the Wealth Management business our advisers are telling people that diversify, not make your bets all in one. So i think most of them are pretty diversified the surprising move is that cash has been down almost a record lows in portfolios even individual investors have been moving money out of cash into cash alternatives or into equities which we havent seen at this level in memory. I want to ask you about currencies and whether or not you have a high level view and what happens to the u. S. Dollar here many people in europe were surprised to see the currency actually trade up stronger by the end of the week. The euro is trading very close to 114 now this after an extremely dovish press conference given by the president of the ecb a week ago and yet the currency doesnt want to react here what do you think is going on . Is it just the race to be the most Dovish Central Bank in the world right now between the ecb and the feds i really think so my first disclaimer is i lived in london, amsterdam if i bet on currency i would have been broke. I could never tell where theyre going longterm, so i dont. But i do think its that its who is being the most accommodating and u. S. Currency has done well because it had relatively the highest Interest Rates. I think its a bet on rates on the exchange right now. Where do you see the u. S. Dollar Going Forward given as you say the fed are about to start cutting. You have deficits. You have a waning fiscal stimulus. Im one that doesnt think the fed should cut but it looks like theyre going to and theyre not asking my opinion. So if it does go lower, the currency should go down some, but well see what happens i really dont know. Do you think this meeting between the two president s trump and xi later on this month is a very key moment or do you think thats been overhyped . Its really hard to tell when it comes to u. S. Trade negotiations whats going to happen so i read tweets like everybody else but, you know, hopefully i think its going to be important for both economies and the world economies to get that behind them its to both countrys advantage to get something done. Im hopeful but its hard to tell with those two countries when they negotiate. We appreciate you being candid with the lack of certainty on that front. Paul riley the ceo of Raymond James joining us here in london. Also coming up on our show, President Trump says hes prepared to negotiate with iran without preconditions. 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Its time to get yours vo quickbooks. Backing you. Welcome to street signs im willem marx. Im Joumanna Bercetche with our colleague in adieu dab by, these are your headlines well, President Trump says hes not looking for war as he ratchets up economic pressure on iran with major new sanctions. While his envoy to teheran tells me in an exclusive interview that the administration is looking for talks. It is going to deny the regime the revenue that it needs to run a violent and expansionist Foreign Policy, but its also designed to bring them back to the negotiating table. So ultimately we would like to have a new deal that addresses irans regional aggression, the Missile Program and the nuclear program. Profit warning from daimler drags down german auto stocks as the car maker cuts its 2019 earnings outlooks due to diesel emissions. Business moral fell for the third consecutive month in june as the institutes president says the economy is heading for the dull drums President Trump tells nbcs meet the pres he never said he could demote the fed chair but claims he could do so if he wants. I havent suggested that. Thats not a threat, just a reminder that you can. No. I have the right to do that but i havent said that. What hes done is 50 billion a month in quantitative tightening, thats ridiculous. Welcome back to the program. The u. S. Will unveil a series of additional sanctions against iran later in the day and may further inflame tensions between the two countries. President trump announced the measures over the weekend and described them as, quote, major. They dismissed the impending sanctions as, quote, propaganda according to state media President Trump urged teheran to engage in talks with washington. He told nbcs meet the press program yesterday there would be no preconditions for those talks. Im not looking for war and if there is there would be obliteration like we have never seen before. You want to talk good, otherwise you can have a bad economy no preconditions . No preconditions. Youll talk anywhere . There it is, look you cant have Nuclear Weapons and if you want to talk about it, good otherwise you can live in a shattered economy for a long time to come. Meanwhile, the information and Communications Technology communication in teheran says u. S. Cyberattacks on the country have not been successful reports the New York Times and Washington Post suggest the u. S. Hit the countrys rocket launch systems and i. T. Networks believed to have been involved in the recent oil tanker attacks. Both reports site multiple sources say the assault has been planned for weeks. President trump says he called off an air strike in iran because he did not believe the response was, quote, proportionate. He told nbc news meet the press the potential loss of life as a result of air strikes did not equate to the shooting down of an unmanned drone. So, they came and said, sir, were ready to go. We would like a decision i want to know something before you go, how many people will be killed in this case iranians i said how many people are going to be killed sir, i would like to get back to you on that. Great people these generals. They said, came back and said, sir, approximately 150 and i thought about it for a second i said, you know what, they sott down an unmanned drone, plane, whatever you want to call it and here we are sitting with 150 dead people that would have taken place probably within half an hour after i said go ahead. I didnt like it i didnt think it was proportionate. Well, our colleague hadley gamble joins us with more details. What do we know about these impending sanctions we heard so much about well, its a very, very big day here in the uae as you can imagine given how quickly this story has been moving, at least so far we know, of course, secretary of state mike pompeo is making a lastminute trip to the region saudi arabia and the uae are on his agenda before he heads over to asia for the g20. I think its really interesting to note couple things from my exclusive interview with the u. S. Special representative on iran, i asked him about redlines he said we dont set redlines when it comes to how far the u. S. Is willing to wait to take action when it comes to whats happening in the persian gulf. I also asked him about the potential for countries in asia like china to Start Playing a really big role in the persian gulf eeluded to that as a major part of the conversation he expects to take place at the g20 and talked about oil prices blaming teheran for higher oil prices, but lets listen in to some of what he told me. We dont announce the redlines in the way thats conventionally understood. We take it day by day, i think but its in the context of a very thoughtful and focussed strategy and that was put in place over a year ago by secretary pompeo when the president got out of the iran deal, we put in place a new iran Foreign Policy that does a couple of things. It is going to den the regime the revenue it needs to run a violent and expansionist Foreign Policy but also designed to bring them back to the negotiating table. Ultimately we would like to have a new deal that addresses irans regional aggression, the Missile Program and the nuclear program. In order to get there, its going to take pressure and in order to get iran to change its behavior, its going to take a lot of pressure. So were going to increase our sanctions on iran. Were going to continue with this Foreign Policy. Iran has a large body of threats to peace and security. We have matched that with a very strong and robust Foreign Policy iran doesnt like it, but its the right way were going to restore deterrent. When bob mcnamara wrote the fog of war he talked about traveling to vietnam and understanding from his vietnamese counterpart just the mine meal that was happening and there was a massive disconnect in terms of a kmunist takeover and what the vietnamese was happening and that was a civil war and said we would have fought china and other imperial powers to the very end and thats why we were fighting you. Does it worry you given the lack of communication between washington and teheran right now that we could be making a massive miscalculation in how were addressing this . Well, our message to the iranians has been exactly that do not miscalculate because we will respond if we are attacked. The president made that very clear since september when there were attacks on our embassy in baghdad and one of our diplomatic properties. He made it very clear we will respond if necessary so we have warned the iranians not to miscalculate. By putting in place, we enhanced our forced presence here in the region and we think that helped to restore deterrence. That doesnt mean we have eliminated the ability of iran to conduct asymmetric attacks but we have helped to reestablish deterrents and there will be more to come. Just a quick recap of where we are today, secretary of state mike pompeo in the region. Hes expected to be chatting with the governments in the uae and saudi arabia as well ahead of moving on to the g20 to meet President Trump there. We heard from President Trump as you may remember talking about well, hey, we didnt really we dont really today need the strait of hormuz and we want talks, we dont want war in terms of those talks we see a lot of flashes coming out over the course of the morning from teheran and some to an adviser to rouhani says if the United States wants a new deal, they have to offer new incentives if they want any concessions from us again, guys, a fastmoving story, one well continue to watch for all the developments and bring them to you on cnbc. And whether or not there are preconditions attached well have to see. Hadley, thank you for breaking it down for us and for more from hadleys exclusive interview with u. S. Envoy to iran brian hook and to see why hes calling for an international response, head online to cnbc. Com all these geopolitical events had a big impact on the price f o oil last week. Energy is trading today both present and wti. 4 and. 9 which corresponds to the ratio we had last week brent on the week was up 5 , wti was up 10 last week. So huge, huge jump in the price of energy last week falling on the geopolitical developments. I have david hewitt joining us great to have you with us. Looking back last week, would you say theres an insufficient amount of geopolitical risk premium price at this point . The simple answer is yes and absolutely yes about a month ago we were looking at 71 and saw the first iranian move or somebody that everybody thinks was iran going after the vessels and going after the pipeline i would have expected 3 or 4 in the price that day we went up 30 cents. The way i read that was that actually the market is very concerned about the trade problems and thats why it was so dampened. We went down significantly we touched towards 60 im talking brent again. Im not surprised we had a move into the mid 60s in the last week the question is what happens next exactly taking a step back what does that tell you about the state of Global Supply today . It appears last week drawing on the price action we had there that any incremental news that came out sent the price of energy up. Does that tell you that supply and demand are pretty much in balance now . Yes, i think so i think well see draws this quarter and next as we move into the summer driving season, as we increase the demand side and this year its slightly unusual because were getting ready for the imo which starts in january next year that means the refineries taken extended turn around periods which dampened q2. You come out and get ready for the u. S. Summer driving season you will see demand strength youre not seeing any incremental supply addition to that point youre seeing opec and ropec continues to hold firm and venezuela continues to decline and issues with iran now that the waivers have been removed. I dont understand how the market reacts to this. Is this a real threat . Is it enough to be a perceived potential threat why have they reacted in the way they have quite so strongly last week in terms of markets and the crude price . Yes, theres an absolute risk here, 20 to 25 of global crude is going through the straits of hormuz something that a lot of people dont talk about very, very important, 77 million tons exporter last year we consumed 313 million tons if theres an event it would be absolutely serious for crude, it would be more serious for spot pricing for lng. Youre not seeing much of an impact for lng. Very, very soft asian spot prices very, very soft european prices as we know. That thats not been factored in there. You may take that as a take away that nothing will eventually happen the u. S. Has a very significant contingent of military based in qatar. One is that exxon is the largest investor in qatars petroleums facilities how much do you think that slightly weaker dollar impacts the demand side of the equation . I think at the margin but i dont think its material. I think it is more around the demand is a concern around trade tariffs rather than in my opinion global weakening of economies. Therefore, if we have a positive outcome with xi and trump and we remove that demand concern were left with the same supply constraints, the same geopolitical issues but less concerns around demand which has taken us down from the 70s to the early 60s thats quite a nice setup for the next opec meeting. Reading between the lines what youre saying is that there probably isnt a need for them to do that anymore well, i think its probably good they stay at the levels theyre going to stay at i think when crude goes above 70 trump tweets crude goes below 60, they talk about what theyre going to do the Saudi Oil Minister theres the sort of bounding range were looking at. Throughout that the iranians are hoping for higher and higher prices because their market share is what theyre so concerned about. Their market share is virtually zero last month the output was 190,000 barrels a day. Completely dwindled. Land base shipments but you know its really whittled away. So if we go to more sanctions today and we already seeing the waiver remove had its effect the way iranians are reacting, you expect they will react more. Back to the geopolitical pricing in crude, youve got to think there is a greater potential for something to happen at some point in the future be it this week, next or as we go forward. Thoughts on gold . We had a big rally in gold as well last week up 4 back to sixyear highs i believe if you can just pull up a chart on that. Do you think that gold will continue to benefit from this environment, Interest Rates, moving lower and geopolitical risk premium sorry im an oil and gas guy i wont have a go at gold. All that glitter is potentially gold for the time being stick to lng and oil. Exactly. David hewitt, oil and gas analyst. Lets take a quick look at how european markets arefairin this morning a bit more of a cautious tone is prevailing versus some of the price action we had towards the end of the week last week. All of the four majors are trading in the red ftse 100 less so trading on water. The main underperformer down half a percentage point, steep declines in autos and airlines today. Autos the focus has been on daimler that stock is down 4 after the profit warning over the weekend. Switching on, though, and actually that is a picture for european markets if you want to get involved in the conversation, you can tweet us street signs cnbc and tweet us correctly. Coming up on the program, england advances to the quarterfinals of the womens world cup but not without controversy. Well have some highlights for you after this break unpredictable crohns symptoms following you . For adults with moderately to severely active crohns disease, stelara® works differently. Studies showed relief and remission, with dosing every 8 weeks. Stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. Some serious infections require hospitalization. Before treatment, get tested for tb. Tell your doctor if you have an infection or flulike symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. Alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. These may be signs of a rare, potentially fatal brain condition. Some serious allergic reactions and lung inflammation can occur. Talk to your doctor today, and learn how janssen can help you explore cost support options. Remission can start with stelara®. Explore cost support options. The first survivor of ais out there. Sease and the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. Well, it may be coming home, can i say that, in the context of england football. England are through to the womens quarter cup finals after controversial 30 victory over cameron. Ellen white made it 20, though her goal was initially ruled out the video assistant referee vr played another key part in fact game as cameroons attempt to draw level was called off side germany upon on and france cemented their place in the quarterfina quarterfinals. Looking forward to thursday, england norway. The Federal Reserve has given a clean bill of health to the 18 largest banks that operate in the first stage of their annual stress tests, central bank said levels of high Quality Capital would exceed regulatory minimums should the country enter a severe recess n recession. Thursday, theyre assessed on the safety for banks to hand out dividends and buy back shares. Deutsche bank is firmly in the spotlight of course. It could reportedly fail for the fourth time in five years after all that on going turmoil we have seen in its u. S. Unit President Trump has denied threatening to demote central chairman Jerome Powell meet the press program on sunday he also called the feds decision to raise Interest Rates a, quote, mistake. I didnt ever threaten to demote him. Theres been talk you might demote him to the number one two slot. I would be able to do that if i wanted i havent suggested that. Thats not a threat just a reminder that you can. I have the right to do that but i havent said that. What hes done is 50 billion a month in quantitative tightening, thats ridiculous. What hes done is raised Interest Rates too fast. Do you worry he will hurt your reelection i think the economy is so strong well bull through it i dont think hes done a good job. I think this, if he didnt raise rates, obama had very low rates. So obama was playing with funny money. I wasnt im playing with the real stuff. Let me ask you this. Wait, wait. Obama had somebody that kept the rates very low i had somebody that raised the rates very rapidly, too much he made a mistake. Low Interest Rates can also be known as funny money. Start using that term from now on the entry of Large Tech Companies poses new risks according to the bank for international settlements. The b. I. S. In its annual economic report called for coordination amongst authorities to safeguard financial stability, competition and Data Protection facebook announced last week that it is set to launch its own crypto currency. The g20 could lead to regulatory efforts on, quote, something that needs attention sooner rather than later. And bitcoin briefly touched 11,000 dollars amid a renewed rally for the crypto currency seen it rise to 15month highs bitcoin has now gained over 170 this year according to coin bases price index, driven in part by optimism around Facebooks Libra crypto currency find out more about the Drivers Behind bitcoins recent rally at cnbc. Com. Shares in the german auto makers are trading lower after daimler cut its 2019 earnings outlook and blamed higher expenses on various on going government proceedings focussed on diesel vehicles at its mercedesbenz unit daimler is now down more than 4. 6 volkswagen trading 1 1 5 slower. Similar story. Porsche trading nearly three quarters of a percent lower. Any more insight into what exactly daimler is talking about in that press release . Well, actually they are talking about that cost due to diesel fixes higher than previously expected. We have that news over the weekend as well that is looking into other models than the jlk 200 which was already called back by daimler itself so, analysts do expect that it could reach magnitude of up to 700,000 vehicles which would need a refix or fix of that diesel problem theyre having. The allegations are not or not allegations what happened is that daimler is using a Certain Software which in the testing site makes the emission lower than in real life so more or less the same story as we had from volkswagen, but daimler so far is saying its perfectly legal. So this remains to be seen whether they can keep that position also when it comes to legal challenges ahead one thing is clear, it will be costly for the company and thats why they are now saying that they cant stick to their guidance for proper guidance for this year. Of course, if you look at whats happening at daimler, thats not the only problem they also have declining para sails. China is doing not great at the moment in general, they have problems to get new models on the market. So, this is a problem here they have far too high costs what we are waiting for is Business Update from the new ceo. Theres a new ceo and also new cfo in place only since a month and there was a lot of hope from shareholders that they actually can turn around the fortunes because the shares have been underperforming the likes of bmw and volkswagen already during the course of the last 1 1 2 years. This is coming at an interesting time because i believe believe later today theres going to be an auto meeting with the experts from the Auto Industry as well as some government officials to talk about some of the challenges facing the Auto Industry this was planned even before the daimler news came out. What can we expect out of the meeting later today . Well, this meeting in berlin with Angela Merkel and some other members of the government has been scheduled for quite some time. So its meant to provide an update where the Company Stands when it comes to electrify indication and what the plan is to meet the toughened emission targets from the european union. Thats a mayor issue for german car makers as you know, suvs and big sedans are one of the best sellers of the german car industry. They are not notoriously known for being very emission friendly so at the same time, they have to beef up the electrify indication and that is the a problem in the way that theyre kind of late to the game when it comes to bring electrified vehicles to the market and at a price that is attractive to customer this will be like the update Angela Merkel is getting whether we get actionable news from that remains to be seen back to you. Definitely something were all watching very closely. Thank you for bringing us the latest on the Auto Industry in germany. We have the ifo data coming out earlier and the Institute Warns that the German Economy is in doldrums the euro is still trading stronger around charging ahead at 114, so higher than where it was before that very dovish last week so interesting price action going on there in the Euro Currency quick look as well as u. S. Futures before we hand off all the three majors there yet again pointed to open up in the green this after a softer session on friday but still a very strong week for u. S. Equities last week thats it for todays show however. Im Joumanna Bercetche. Im willem marx thanks so much for watching. Worldwide exchange will be up next the first survivor of alzheimers disease is out there. And the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. Good morning it is 5 00 a. M. Here in philadelphia and we are just outside the refinery that exploded and burned here on friday. One which shook houses and tearfied a city. A mixture of propane and butane ignited setting off an explosion so big that it could be seen from space and felt for miles. The blast has closed part of the refinery, which is the largest on the east coast and many questions remain it is monday, june 24th and a big morning ahead as Worldwide Exchange begins right now