Transcripts For CNBC Street Signs 20240714

Lost. Asian markets and investors dial back. But the bank of france governor hints that the ecb could act in its next meeting. We speak about Monetary Policy, we have several governing to come in the next month. And if and when needed, there must be no doubt about our determination to act and our capacity to act. New party wins a resounding victory as Prime Minister tells cnbc hes ready to deliver change. I feel if i have a strong mandate to deliver on my agenda, which is an agenda to grow the economy, to create more jobs but also to make sure that the greek people feel safe again. Hard to swallow. Shares sink after the French Food Company warns sales growth will slow in the Fourth Quarter as the caterer braces for the loss of several north american contracts. Well, good morning, everybody. Our top story today Deutsche Bank shares are trading higher after the german lender announced an overall which describes as, quote, the most fundamental transformation in decades. They will create a 74 billion euro capital release unit and slash 18,000 jobs. At least three senior figures will leave, including garth richie the head since 2015 richie has overseen a 30 loss in trading revenue under his leadership now, we are in frankfurt, this is a dramatic, strategic change for the german lender. I think the key question for the shares is this enough to actually change the equity story and in turn turn around the share price once and for all reporter yeah, thats the key question here. I guess just the pure announcement doesnt do the trick. I think investors will want to see whether the bank and the management can really execute that strategy because its a bold and its also a risky move. Ive been talking to various people here also on the ground they all say its a strategy looks good but its quite farfetched as of now because looking at all these targets, its also 2022, like the new return on equity target, also the cost income ratio target, so it looks all good. But as i was saying, its down to the execution risk, which is now so threatening the bank. The key question also is, i guess, for investors before being completely convinced the shares are by whether they can really do it without another Capital Increase so far the language is theyre intending to not raise capital but an intention is not a promise and a clear conviction well, having said that, ive caught up with the cfo yesterday early evening here in frankfurt and ask him whether this is really the last Restructuring Plan we are getting from the bank because we have seen so many, so what has he to say to reensure investors and also their own staff. Take a listen. One of the reason wes looked at this as a very fundamental restructuring is we were aware we needed to put paid to any further speculation that theres additional restructuring to come so were very confident this is the final restructuring for this organization were looking forward, frankly, to having that behind us and focus on your core business Going Forward, hence the ambition frankly of the restructuring. You mentioned, you know, goals and objectives that Deutsche Bank management has publicized in the past and not necessarily always met thats something that christian and i and i think the Management Board has been very aware of and as youve seen over the past year or so weve been quite deliberately trying to set nearterm goals we can hit, deliver on our promises and build from there this is howie approach our next phase in our restructuring, and were determined for it to be our last. The 18,000 jobs are about to go in 2022 where will those job cuts be primarily focussed on . Will it just be hitting the Investment Bank . First of all, those job pain cuts are painful for us all. Its relatively broadly spread of course theres some in germany, particularly associated with the integration of the private bank those are plans that have been under way for some time. And of course in the restructuring or realignment of our Investment Bank there will be significant cuts there as well whether the announcement is were going to exit entirely but also to some degree in the fic organization. Lets look at what it means for the u. S. Investment bank because theres so many reports that literally nobody is working anybody especially in the u. S. Investment bank. How much will be left from that unit look, we understand that the speculation about what was going to happen clearly will have had some impact on moral and engagement both of employees and frankly clients. We always said, though, were not exiting the United States. We have been consistent in that messaging. With the announcements today we remain consistent in that messaging. We remain a very significant dollar clearing organization, gtb, if you like, Corporate Services will remain an Investment Bank providing Corporate Finance as well as a targeted Equity Capital markets capability globally. So its not a retreat from the United States at all. Reporter so the new vision the bank has of itself is to be the leading german lender with a global footprint thats what james said in another part of that interview so its a completely tore from being a leading global Investment Bank or at least being a leading european Investment Bank. What were getting from Deutsche Bank is a shrinkage story to being a bank which is concentrating to go back to it roots. Next year the bank will have its 150 years anniversary. Thats what they are saying now. They want to go back to their roots being a leading the leading german bank to cater to all those companies from germany doing business everywhere in the world. So meaning the Investment Bank would be shrunk but they keep on servicing those corporates with all solution they need from Investment Banking but, as i was saying, the complete exit from equity sales in trading was perhaps a bit bolder than people had expected, but its a good move because investors wanted it. Perhaps Going Forward, if youre really seeing the management execute on all these promises now, then we will eventually also get the share price moving. But as of now, i think we still need to wait and see whether the plan is really doable. Back to you. Certainly, investors are cheering on this radical reform today. The stock is up more than 3 but i want to go back to something which you just reiterated now and n that the bank clearly wants to go back to its roots and be a corporate and retail bank with a focus on the german domestic market and yet whats interesting is theyre sticking to their return on equity target as well, which is a return on equity target that was put with the mindset of still being an Investment Bank how is that going to evolve over time and is that return on equity target still actually achievable reporter well, actually they are trimming it a little bit down they previously said theyre targeting a 10 return on equity target for the longer term now theyre trimming it down to 8 saying this is reflecting the new environment. The lower for longer rates by the monetary authorities and, b, also the new setup of the bank if you look at the different divisions, actually the Retail Banking is having quite a good return on tangible equity. The unit of the bank which is really lacking at all is the Investment Bank. So i guess they think this is sustainable on the longer term basis. Retail banking in germany is very competitive market. If you look at the products, Deutsche Bank is actually offering, theyre quite pricey compared to other banks. So for example, you wouldnt get a free account, which you would get with other lenders so theyre just like they are on as i would say perhaps in the luxury segment of the Retail Banking and whether they can maintain that spot, this is the key question here. Back to you. Excellent we look forward to see how the story unfolds over the next couple months. Certainly investors are cheering it on today. With that, lets look at how European Markets are fairing more broadly this morning. Julianna its been a fairly mixed morning so far for European Market as you can see beside me here, the dax has been fluctuating between positive and negative territory. Otherwise markets are trying to edge higher. The big piece of data investors globally are digesting is the nonpharm payroll out, 224,000 jobs added in the month of june. The debate has now become is this enough to prevent the fed from cutting rates in july the market had been widely expecting that to come through and the debate was whether it would be 25 or 50 point basis cut but now with this very strong jobs report the question is will they cut at all . So investors here digesting this it comes off the back of a very weak session in asia lets take a look at the moves there. Theyre obviously digesting this report as well the shanghai composite down more than 2. 5 . The nikkei down 2. 5 markets overall adjusting to what this could mean this week we will hear from the several fed members. Were going to hear some fed speak from Jerome Powell himself. We have the fed Meeting Minutes coming through on july 10th. Well hopefully get more insight into the feds thinking as the days progress the reaction to that strong jobs report seems to be very negative tenyear yields, the feds speak for what happens here. Its been a tremendous rally for global bonds now right now the german is trading at negative 37 bases points in the uk, 0. 71 and italy we have got the tenyear trading at 1. 73 . So thats a picture for global yields well wait for the fed speak to determine how theyre thinking about the july meeting thank you lets bring in david riley chief investment strategist. Its great to have you with us i want to pick up on what julianna was saying about global yield. Its actually interesting italian is trading through u. S. Treasuries at 2 focussing on the u. S. , though, what do you think the fed are going to do at the end of this month after fridays payroll print . I think theyre going to cut rates. I think theyre going to cut rates by 25 bases points it was a bumper payroll in terms of jobs growth and i they is good news. Means the u. S. Economy isnt being dragged down, but i still think there are some risks that the fed is concerned about including trade policy uncertainty. We have a truce between the u. S. And china, not a peace deal. Theres still no evidence of inflation pressures. One thing came out from the payrolls number was in fact that theres no real sign of an acceleration in wage growth. That being said, i think the market hasover shot how aggressively the fed is going to be cutting rates although i do think theyre going to cut by 25 bases points, i would have a short duruation bias at this stage. The Market Reaction on friday is very telling of positions, isnt it interest yields actually sold off, moved up higher after the number came out. Do you think that the feds are in a bit of a pickle the reason i say that is because the whole market, the whole world expects them to cut the end of july to 100 priced in. 25 bases points, further cuts to come afterwards and yet one of the key metrics their five year, five year inflation or where the market expects inflation to be has done nothing but drop. So the market doesnt believe that this round of easing is actually going to have a reflationary impact on the economy. Surely thats a problem for them. I think is the challenge thats facing global Central Banks which is the models around what should have happened to inflation in a situation where unemployment has been falling and reaching record lows thats not just a u. S. Story unplace of employment rate has been falling pretty consistently in the eurozone. You had this collapse in Inflation Expectations i think what that means is there is some access capacity. They can allow the economy to run hotter, keep rates lower for longer i dont think thats good news for banks, however, in the sense of particularly for bank equity, sort of flatter yield curve for longer is not a good story for equity holders i still actually like banks from a credit point of view, though. In terms of the fed, the pressure the fed has been under from President Trump and if the fed is inclined to hold off, would you expect that President Trump ramps up his pressure on them and can the Federal Reserve chair resist that . He will ramp up the pressure again. I think thats one prediction i am comfortable in stating. And we have also seen one president in turkey exercise his views on Monetary Policy by dismissing a Central Bank Governor around the result has been higher Interest Rates as well as significantly weaker currency hopefully President Trump will be weary in that respect i think the fed at the moment will continue to do what it thinks is the right thing to do. One thing i think trump is right about to is a world in very low growth and rates are very low, if the fed is hiking and the rest of the world is easing, the dollar is going to take off. I think that is something which he doesnt want to see i just want to come back to what you just said about still liking bank credits here im surprised to hear that that index is down 50 over the last couple years and yet yields go from strength to strength because of the global rally to zero were seeing in yields everywhere do you not think where some of these tier one credit names are trading say sub 4 is a little bit on the rich side given the risks out there and the flattening of the yield curve and the propensity for rates to move lower no. Everything kind of you could argue looks rich when you have bonds at minus or close to minus 40 bases points. I actually think the ecb is likely to be cutting rates further either at its next meeting or in september. So when you have negative rates, negative bond yields and the french is trading in negative territory. You look at bank credit and getting 4, 5 yields on down the capital structure, i think that looks pretty attractive right now. Stay with us. We have plenty more to talk about after the bank coming up on the show, will the ecb act in its next meeting . The governor of the bank of france tells cnbc dont question our determination. More from that exclusive interview next welcome back to the show well, frances Central Bank Governor has called on political leaders to reduce uncertainties, telling cnbc that Monetary Policy cannot perform miracles speaking at a business summit, he blamed trade tensions for the growing worries. He also addressed concerns over a slowing european economy if we speak about Monetary Policy, we have several governing to come in the next month, including with mario dragi, and if and when needed, there must be no doubt about our determination to act and our capacity to act. I repeat, if and when needed yes, thats clear i mean, the ecb especially mario but you also have been repeating that, but looking at the current set plan for qe, you really have to change things then would you be ready to change let me stress one thing we look at the markets, but we are not market dependent we are data dependent. And if we look at the economic signals, there is a continuing slow down, but there are also significant wage increases plus 2. R5 1 in q1, significant jobs creations on both sides of the atlantic, so let us wait for our next governing to assess and then decide this is what i call, what i always call progress matism. Will that mean by any means wait for december because then you have the full new data set, to projections or would you no, no. A set, we have several governing to come. Christine lagardes nomination to become the next president of the ecb was welcomed by Business Leaders and central bankers in france. The agreement which happened last week in brussels is very good news. Its one sign more if you allow me that honor the Decision Making process in europe is slow, is complex, but at the end of the day, europe and france and germany together are able to make decisions and to make excellent decisions. Christine lagarde, after mario draggi will be a great president for the ecb and will have my full support. I think she will have very good training there how to deal with financial markets, with the price, with communication and how to deal with the political authorities because we are in european yun not complete and the central bank has to be able to talk to the political authorities and explain to them what they need to do to make more resilient what you need is to be progressmatic, smart, listen and communicate well and i think she has all the skills. I hope the new president of the commission, the new president will see the central bank will be able to do better to drive europe into the next area of growth its what we desperately need to make sure that we can continue to support our social model. Well, lets get back to our chat with david riley. Now i know joumanna is excited to talk about Christine Lagardes appointment. Perhaps before we get to that, if we could just focus on the july ecb meeting i was having a look through your latest notes and youre pretty dovish when it comes to your expectations looking for a ten bases cut in july and also movement on the tiering, suggesting that theyre actually going to move ahead with tiering to mitigate the impact of negative rates on banks. What specifically gives you the confidence theyre going to be so bold at the july meeting . Because i think that the signal that came from draggi and has been followed up by a number of other ecb speakers. Importantly i think phillip lane, the new chief economist. I think the message thats come is that the power of policy easing comes from as a package. Its not the individual sort of policy moves themselves. Its when you put the package together so, i think expectations have been set up. I do think that mario is not going to disappoint that i think it has reenforced my conviction at least theyre going to move in thatdirection not every governing Council Member is on board with the view toward tiering so is it really realistic that theyre going to find a consensus on this so quickly i agree the messaging on tiering has been mixed clearly did think about it quite hard and then sort of pushed back on it that a little bit. I do think they have opened up the potential for going more deeply into negative rates as far as perhaps Swiss National bank and like the Swiss National bank, they have to address the Financial Sector issues and part of that will be by introducing some form of tiering. Now that its been particularly helpful for the swiss banks either, but in that respect i do want to ask you about legard, full managing director, what does that tell you about eu leaders perception of the role of the ecb because as many analysts out there will say that, look, shes somebody who doesnt necessarily have an economist background, she has been a finance minister and obviously shes a great communicator and has been sailing the ship of one of the Worlds Largest organizations but doesnt necessarily have the Technical Expertise that some of the other candidates who were put forward had. What does that tell you about the face of the ecb and what its going to look like in years to come . Well, i do think that the ecb, like every major central bank, ultimately is not wholly independent of politics. Ultimately politicians do both appoint the president of the ecb, governor of the u. S. Federal reserve as well. And in terms of setting their mandates, im less concerned madame lagarde doesnt know the plumbing of money markets in europe she has a whole institution that can understand that. And i think what is going to be important Going Forward is that a greater coordination if you like between monetary and fiscal politician one things that have been highlighted is they cant just be about Monetary Policy i think shell be more effective potentially in pushing for some relaxation of fiscal policy. Why on earth is germany not borrowing money when they can borrow negative rates. Surely it has Investment Opportunities that can generate positive return. So we do need some fiscal easing and i think shell be quite effective at delivering that message. Youll get the inevitable pushback from italy. And also from greece with the new democracy. Lets see what they go back to brussels with visavis those surplus targets. Thank you very much. Thank you david riley chief investment strategist also coming up on the show, i just mentioned greece shifts from left to right as new democracy sweeps the victory in a snap election. Details next struggling to clean tough messes with wipes . Try new mr. Clean magic eraser sheets. Just wet, squeeze and erase icky messes in microwaves and on stovetops for an amazing clean, get the power of mr. Clean magic eraser in new disposable sheets. Applebees all you can eat is back. Now thats eatin good in the neighborhood. They have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again welcome back to street signs im julianna tatelbaum. Im Joumanna Bercetche and these are your headlines. Deutsche bank shares pop after they announce a exit from the equities business and slashes 18,000 jobs in a sweeping overhaul. The bank cfo tells cnbc this round of restructuring will be its last. We are very confident this is the final restructuring for this organization thats absolutely how we approach this next phase in our restructuring and were determined for it to be the last. Asian markets log steep losses as investors dial back fed rate cuts following a strong u. S. Jobs report but the bank of france governor hints that the ecb could act in its next meeting. If we speak about Monetary Policy, we have several governing to come in the next month, including with mario dragi and if and when needed, there must be no doubt about our determination to act and our capacity to act. Greeces center right new Democracy Party wins a resounding election victory as Prime Minister elect Kyriakos Mitsotakis tells cnbc hes ready to deliver change. I feel if i have a strong mandate to deliver on my agenda, which is an agenda to grow the economy, to create more jobs but also to make sure that the greek people feel safe again hard to swallow. Shares sink after the French Food Company warns sales growth will slow in the Fourth Quarter as the caters braces for the loss of several north american contracts. We have some fresh comments from Deutsche Bank ceo this is our top story this morning after yesterdays announcement of this sweepg overhaul for the german lender saying this morning, he received a lot of unsolicited interest to purchase deutsches equity business he also highlighted their revenue targets when it comes to 2022 they say they can grow the Corporate Bank to a 6 billion euro business by 2022. Theyre aiming for 7 1 2 billion euros at their Investment Bank by 20202 and in terms of their Corporate Bank, they are expecting to post pretax earnings of 2 billion in 2022. In terms of synergy between post bank and Deutsche Bank, they expect 2 Million Euros of synergies this year between those two and in terms of Asset Management business, deutsche expects that business to record revenues of 2. 5 billion euros by 2022 a little more emphasis, a little more color around their revenue expectations this is the biggest overhaul at Deutsche Bank in years markets so far reacting positively to this news, but the question is will this really change the equity story long term for the german bank on that note, well hand it over to joumanna for an update on broader European Markets. Thats it thats one of the names that investors are eyeing this morning on the open. At one point Deutsche Bank shares were up 4 . Now higher than 1. 5 Percentage Points in the green up. 1 percentage point. The picture across the board is pretty muted in contrast to the weaker session we had in asian markets overnight with some of the majors there trading lower to the tune of 1 . This after a stronger than expected u. S. Payrolls print on friday that allowed some investors to pair back some of their expectations for how much the feds will cut at the end of july and their upcoming meeting. 100 probability of 25 basis point price is cut in and some people were hoping more. It had a negative impact on asian equities overnight you can see in europe the mood is little bit better but still were trading around the flat line as well switching to foreign exchange, though to see what the picture is like there. And here you can see that euros trading again little firmer around 112. 30 is where were at. All eyes on what happens to the u. S. Dollar. Well have testimony from the fed chair powell later on this week some indication on what the feds next steps from here will be very welcome, of course dollar yen, bit of a bounce in yen overnight to the tune of. 1 percentage point, a bit of firmness as we saw asian equities trade softer. Cable is back trading around 125 handle, 125. 30 again, crucial, Political Developments going on there. We have a debate between the two lead contenders to replace succeed theresa may all eyes on that and whether or not Boris Johnson or jeremy hunt will continue to make their stamp there. Finally were seeing a bit of a bid into swiss switching to u. S. Futures, we had a slightly weaker close on friday, though not as negative as we got to at some part of the day. Intraday losses were greater than the close on friday you can see this morning it looks as though the picture will be slightly in the red as well all of the three majors seen opening up in the red. Dow about 60 points weaker nasdaq 30 points weaker as well. Slightly softer session in line with what we had in asian equiti equities, too. Let me highlight for you a story thats developed over the weekend. Turkish president erdogan fired his Central Bank Governor over months of high rates he was removed from president ial decree and replaced by his deputy local media reports erdogan said the governor was fired because we werent on the same page. Joumanna just returned from turkey did you play it well in terms of the moves we have seen in the lira i didnt play the currency move well at all actually. The week i got there the currency appreciated 3 and this morning its off by 1. 5 who knows. I couldnt anticipate that president erdogan was going to sack the Central Bank Governor it follows me around the world, joumanna. On another note, lets take a look at greece and what happened there over the weekend. Greeces center right new Democracy Party stormed to a landslide victory in snap elections, unseeding Alexis Tsipras and his party. New democracy is on course for an outright majority in the greek environment. Kyriakos mitsotakis will be sworn in later today as the new Prime Minister sylvia, its not that long ago that we were all concerned about greece collapsing, exiting the euro, the whole euro project was really in question they have come a really long way. Now we have the center right party in power what can we expect from mr. Mitsotakis reporter its indeed a new chapter in the greek history we have Mainstream Party returning to power after all we saw back in 2015 a lot of protests hearings against austerity. With very confrontational tone against the eu and the International Creditors and now we see the conservative party, new democracy, getting elected and now majority its important to bear that in mind because mitsotakis told us last night that with 40 of the seats in the greek parliament, he will be able to deliver on his probusiness agenda as soon as possible. I ask for a strong mandate to change the country and the greek people delivered im very, very grateful for the result we won outright majority, which was our main target. We almost reached 40 , which is incredible number given the context of the political landscape, and i feel i have a strong mandate to deliver on my agenda, which is an agenda to grow the economy, to create more jobs but also to make sure that the greek people feel safe again. The new government will be announced tomorrow, so ill ask you for a little bit of pay sense for the new minister of finance. It will be sworn in on tuesday we will have our first Cabinet Meeting on wednesday and work begins as of tomorrow morning. Reporter as you heard there also mitsotakis, who is going to be the next finance minister, theres a lot of interest among analysts to know who the person is going to be so then they can understand what are going to be the priorities of the new finance minister if this person is going to focus on the Banking System or rather on the Macro Economic picture as a whole. But lets look tsipras as well what happened to the party led by Alexis Tsipras, Alexis Tsipras, of course, did not manage to get reelected so yesterday i asked the outgoing minister for Foreign Affairs what happened, where did tsipras get it wrong in all sectors we have improved the situation that we had enhanced, but people expected more from us, more and faster so i dont think thats something went wrong, simply the expectations of the people were greater than what we could deliver to them. Reporter i have to say as well that perhaps the biggest surprise, though, was really that golden the far right party a lot of support throughout the financial crisis, they did not manage to elect any lawmaker so in that sense, Kyriakos Mitsotakis told me last night this is also a positive development for europe let me describe the mood here in athens, its very different from those days where we saw this square full with protests, people complaining against the austerity measures this day today really its a business as usual. You see that its literally a new chapter thats opening today here in greece i have to say it is remarkably peaceful behind you, sylvia also a reflection of the Athens Stock Exchange im just looking at how the equity market is doing, its basically flat, hasnt done much on the session, but then again greek tenyear bonds as you know are very close to the 2 mark who would have thought that a country on the brink of exiting the eurozone a few years ago now has Interest Rates almost lower than the u. S. Counterparts sylvia, thank you for the excellent coverage of the greek elections over the weekend. Now, another story were focussed on today, iran has announced another nuclear deal breech and threatened it will continue to reduce its commitments every 60 days. Teheran said it has kbeeded the 3. 67 cap on enriched uranium. Macron condemned the mood but said he would push for all parties to resume dialogue by july 15th. Mike pompeo said the action would lead to, quote, further isolation and sanctions. And we have some fresh comments from the uk foreign minister on the topic of the leaked emails from the uk ambassador criticizing President Trump. This is a story thats developed over the weekend in terms of what the uk foreign minister has said, he said i dont agree with the uk ambassadors views about the Trump Administration its important that the ambassador can feel that they can express their views, but its very concerned about the leak of the ambassadors memos he says we need to find out ho the leak happened and that we will not allow any interruption in our relationship with the United States over the leaked memos. So thats the uk foreign minister weighing in on those. Now President Trump Prime Minister candidate also. Prime minister candidate of course so really interesting to see his response now President Trump hit out at the ambassador over the alleged remarks. Take a listen to what he had to say. We had our little ins and outs with a couple of countries. But i would say that the uk and the ambassador has not served the uk well. I can tell you that. Were not big fans of that man and he has not served the uk well so i can understand it and i can say things about him but i wont bother. Now getting back to one of the corporate stories in focus today, sodexo says sales growth increased by 4. 2 in the q3. They expect growth to slow in the coming quarter due to contract losses in its north american market. They now expect to see full year organic Revenue Growth 3 at the high end of the guidance. Julius bar announced a new ceo. He will replace retiring ceo bernard from september 1st julius baer says part of a longterm Succession Plan and looked at potential internal and external candidates. Coming up on the show, the u. S. Womens team makes it a fantastic four as it picks up yet another soccer world cup the highlights coming next we call it the mother standard of care. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. Cancer Treatment Centers of america. Did you know you can save money by using dish soap to clean grease on more than dishes . Try dawn ultra. Dawn is for more than just dishes. With 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. Try dawn ultra. The u. S. Womens soccer team are world champions for a fourth time after beating netder lands, 20 in the final adam reed now joins us around the desk adam, i know i may sound it may sound a little smug given where im from, but how much better are the americans than everyone else in the sport can i rephrase, how much more money are the americans receiving versus other teams around the world arguably the best funded National Womens Soccer Federation in the world. So, yes, they are better again, 2015 world champions. 2019 again a fourth time overall. And, yes, they are fully deserving of their victory it was megan rapinoe, the face arguably of the womens soccer team to do the business for them again. She kept her cool to take this penalty in the second half many the first ghichb a womens World Cup Final thanks to var. The dutch didnt really have a lookin to be honest it was only because of the heroics of the keeper that they were even in the game and even she couldnt keep out this great effort from rose yes, the u. S. Are champions again. They were chanting equal pay at the end because they believe thats what they deserve, but things are changing because in the womens game in this country, in england, they just had a full year of being professional and theyre going to have a lot more football available to watch next year they have the introduction of Manchester United and tottenham in the top division as well. Momentum is definitely going around the world. I feel like this world cup has got a lot more attention than prior female world cups obviously thats a good thing for the sport and as you mentioned now in the uk, the team will be fully professional team now for the next well, in the future. It has been for the past 12 months what is the future of womens football from here and has this world cup be a success in terms of promoting it to a large extent, yes. Viewing figures around the world apparently figures are sketchy at the moment because it only just finished. But a billion fan engagements have taken place around the world. Thats up from supposedly three quarters of a billion last time out as well, but if you compare to the mens world cup last year which annoyingly we still do, theyre still way down on that because its 3. 5 billion engagement from last year. Now as far as the womens world cup goes moving forward, you saw there handing over the trophy, he wants to make the world cup next time around 32 team on par with what the mens world cup is now but thats getting made bigger to 48 teams in the future theres going to be a huge opportunity because theres stars here theres alex morgan, megan rapinoe. In america theyre pretty well known. We have been discussing that all morning. Around the world, though, adia didnt play for sweden at norway, sorry. For norway at this world cup because of a pay dispute but she is the worlds best player as well and so theres stars there, theres marketing opportunities. Once we know talking on this program if nike get ahold of those opportunities, then, yeah the sky is the limit we will see a lot more going on in structuring of funding marketing in the womens game. And billing up the ground. Hugely. Speaking of the brand, i should point out that julianna and i appear as though we support the swedish team because of the colors were wearing. Subliminally i dont know why i was thinking that. We led you astray with the colors were wearing early objective this is just a coincidence adam, thank you very much for breaking down the womens world cup for us and switching gears, expectations for a july rate cut from the fed have fallen after jobs data for the month of june comfortably beats expectations the u. S. Economy added 224,000 jobs, that is the best gain since january. The Unemployment Rate rose to 3. 7 as Labor Force Participation increased. An average Hourly Earnings across the u. S. Grew by 0. 2 just missing expectations month on month calling from new york is brett ewing from First Franklin Financial Services thank you so much for waking up super early to chat about fridays payroll numbers ive got to ask you, the market is still pricing 100 probability of a rate cut out of the feds end of july is that valid in your view still . You know, i think that this will be one of the most important weeks of chairman powells 2019 career i think the market has expectations, like you said, of a quarter point of minimum rate cut at the end of the july, yet the fed really hasnt concluded that that is going to occur yet. And this is the week that either chairman powell needs to guide the market into what they believe theyre going to do that could be different or he needs to conquer with the market now, brett, President Trump has talked a lot about how president obama had this amazing backdrop during his presidency because Interest Rates were zero if the fed were to cut rates here, would that give the economy the extra momentum, the extra boost that it needs to actually get more people back into the labor force, get wages increasing more . Is that a reasonable expectation given where we are in the psych until your view . Well, its clear that the u. S. Economy is in a late cycle and that Global Growth is slowing. Like wise, were seeing numbers on the pmi data slowing in the u. S. Job growth was good here in june, but i do believe that it would be a nice insurance policy if they were to cut. There is no inflation right here i think that if theyre going to do it, its a good time to do it here in july and go ahead and get it out of the way. I believe that they raise rates a little bit too much in 2018 and this will be a good way to signal to the market that theyre on board with being accommodated. And brett, cheerily the president to pick up on what julianna is saying, clearly the president likes dovish central bankers. Hes tweeted about mario over here in europe, the ecb. But theres also going to be a change of competition in the fed and a couple names has been put forward. One of them is the chief head of asearch from the u. S. Fed bullard decented last time in favor after a rate cut that suggested dovish bias the other person is a lady called judy shelton who believes in the Gold Standard so what does this mean about the future composition of the feds and what it could look like in the next year or so if these nominations go through well, i do think both of these candidates are clearly qualified to be on the Federal Reserve. Christopher waller is currently st. Louis and director of research, but what it says is that if you look back at 2018, you had fmoc unanimous vote on every move the fed made and it might be good to have actually some different perspectives and thoughts on the economy on the fmoc economy if you believe like i do that they made some grave errors in 2018, i believe having some dissent will be good. Thank you very much for taking the time to chat with us. Brett ewing from First Franklin Financial Services all morning we have been talking about the huge radical Transformation Plan announced by Deutsche Bank over the weekend i want to flag that the shares have now turned negative on the session down. 7 Percentage Points up 4 at one point could be a bit of profit taking after 6 jump last week. That is it for our show today. Im Joumanna Bercetche. Im julianna tatelbaum. Thank you very much for watching clients voice remember that degree you got in taxation . danny of course you dont because you didnt your job isnt understanding tax code. Its understanding why that. Will get him a body like that. Move . That. Your job isnt doing hard work. Here. Its making her do hard work. And getting paid for it. vo snap and sort your expenses to save over 4,600 at tax time. danny jody. Its time to get yours vo quickbooks. Backing you. Did you know that feeling sluggish or weighed down could be signs that your digestive system isnt working at its best . 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In frankfurt, germany, a major developing story, Deutsche Bank announcing massive job cuts as it rolls out an 8. 3 billion Restructuring Plan we are live at the banks headquarters thats coming straight ahead futures under pressure as investors gear up for a new trading week well find out why and more investment, lower taxes, greek conservatives making some big promises following a landslide victory. We are there live in athens. The ipo rush back in