Positive start after u. S. Stocks close in the green, but log their third negative week in a row while the Trump Administration seeks to calm recession fears. I sure dont see a recession despite a lot of worries if its a volatile stock market. Most economists on wall street had been marking up their forecast for the third and Fourth Quarter and hong kong prepares for more massive protests after millions brave the rain in a peaceful rally for the 11thstraight weekend of prodemocracy demonstrations in the chinese territory. Well, good morning, everybody. As you can see, there is already quite a lot of green on the board behind me, but first i want to take you to some european news that the german finance minister says berlin has the capacity to launch fiscal stimulus worth 50 billion euros in the event of an economic crisis now concerns of a slow down in europe have grown after weak Economic Data across the continent. Now on friday, the german magazine reported berlin could take on new debt to countera potential recession. That would break its balance budget rule. The markets reacted positively to those set of headlines friday afternoon, obviously talking about the potential for extra debt and then some of the comments out of the finance minister that have given somewhat of a boost to european banks this morning its anticipational, germany easing the taps just a little bit even though he said specifically it would happen in the case of an economic crisis, but thats been good for the banks. We have Deutsche Bank up 2. 5 . The two german banks the market has been very much focussed on swiss banks also up about 1 as well and some of the uk banks up north of 1. 5 Percentage Points its worth bearing in mind that its not just a story about the german potential fiscal stimulus, were also heading into that september meeting for the ecb, widely anticipated to be a crucially big one where they could announce another big bazooka. That would be a boon for the sector as well let me take you back to whats been happening generally, more broadly with markets we had a positive epd to the session on wall street on friday another positive session for asia a couple of things at play one is as we just heard President Trump looking to down play concerns about the weakness of the economy down playing concerns of a recession and reiterating that talks are on going with china, even though theyre not yet close to signing a deal. Thats given a little comfort to the market and then over the weekend we had china as well indicating further policy stimulus and size tweaking their new lending rate which is is a strong indication theyre willing to go down the route of further stimulus for the economy. Overnight in asia, markets were trading positive new york today, most of the heap behind me is green for the week last week, remember we had a lot of volatility actually the stock 600 only ended down. 5 so we really are ready in the first hour of trading. Weve already more than compensated for the down trades in last weeks trading lets talk about individual european all in the green, ftse 100 up. 1 the big story in the uk was that of the Weekend Press reporting about the worst Case Scenario on a kneeldeal brexit that could lead to food, fuel and medicine shortage that has been somewhat dismissed by the government saying that it is a no deal brexit situation, a worst case situation and today we actually have ftse 100 trading up in the green. Actually talked about germany up 1 and italian index up 1. 1 big week for italian politics. There could be a no confidence vote as soon as the next couple days something to watch out there for well. A cool, cloudy day in london but lucky were joined by the warm and always sunny simon. Thanks so much for being with us joumanna talking about some of the comments from schultz. What matters more decisions made in berlin or in frankfurt at the ecb. Over the course of the last ten years it has been the ecb, but in fairness that has been driven by the reluctance of berlin to go to spend any money. The ecb has had to pick up the lack of fiscal stimulus being provided so, on the short to medium term, yes, its going to be about what the ecb does, but lets not underplay whats just been talked about if we actually genuinely talking about german breaking the balance budget rule and were talking about the additional buns being pushed into the system if that pushes up yields even slightly, that has a huge impact all the way through the system it lessens this desperate desire for investors to seek yield elsewhere. Thats a positive. That should be good for markets. This feels a little too light, little too small. Simon, how much does 50 billion euros, german spending, really move the need is this going to be the antidote to all of europes problems this 50 billion euros they may or may not use in terms of economic recession. Its about signaling than anything else. Theyve been prepared to do anything at all. So far we have had this complete reluctance to go and spend money and we have a market thats been starved. Hence the reason why we have these astonishing negative starting to move youre right its not a huge amount in the global scheme of things. It at least sends a signal theyre prepared to change, maybe thats good news. When you look at it, youre obviously chief currency strategist, and with the interesting thing about euro is despite all of the movement in Interest Rates and despite all of the movement in equities, europe really doesnt move that much why have we been stuck thats a fascinating argument it feels to me that whats actually happened is the currency market has looked at what Central Banks have been doing globally and decided all of them are going to introduce additional stimulus, all are going to end up with yields close to zero. They dont probably going to do qe in a couple cases and therefore it becomes a case of theyre all equally bad. This is why. You see currencies uniformly starting to fall against hard assets like gold i mean, theres a finite amount of gold, but you have every increasing amount of currencies. So i do agree, you look at the euro and you might well argue should be trading down at 103, 104, given everything we know about whats happening in the european economy and what the ecb is about to do with policy but, the market has just become increasingly cynical about Central Banks overall. Currencies across the world looking at Central Banks thinking theyre all moving in the same direction from a long time we heard from officials at Central Banks they would like to see more fiscal activity on the government level, particularly here in europe where of course coordinating is so challenging do you think that potentially this announcement from the germans are prepared potentially to introduce some fiscal measures might encourage some of their european peers to follow suit and that in turn might change the equation for i would love to think that that was true. I genuinely would. It would change the way the market operates and change the outlook for the european economy right now, but we all know exactly how things have gone in europe the last 20 to 30 years and expect in german to do anything other than the most minimal of change is always going to be cautious throughout my entire career, the Foreign Exchange market, you always had to assume that germany was going to take the hard money stance. And as long as you took that to be the case, you usually got it right. Also to willems point, it depends which country opens up the fiscal taps, right we have seen the standoff between the italians in brussels over the last year or so, and were heading up to another very contentious season in october when it comes to the submission of their draft proposal. How are you thinking about italy and the italian story here last week again the theme was a continual rally in beatable yields even though investors are worried about the political story. You look at italy the last 12 to 18 months one of the astonishing things is how little the market has responded even what looked like half a crisis last year kind of petered out as we got into late september time. I have lived through a few italian crises of the past usually theyre far more dramatic at the end of the events i think hes telling this time around, okay, we have been talking about the lead, theyre going to be far more cautious than spending five star. Overall hes talking about a Political Risk market doesnt care. All it cares is the search for yield. That drives Everything Else out. It worries because people miss key signals. Simon stay with us. Lets talk about the Political Risk in italy where of course if you have been following things theres real challenges in the coalition. The five Star Movement said salvini, thats his counterpart on the screen is no longer a credible partner in government this public announcement effectively ends any chance that romes Ruling Coalition can survive. Salvini recently insisted his partnership with 5star is no longer functional. He requested a vote of no confidence in the government critics says he wants to compete in a fresh election but his efforts have so far been unsuccessful Prime Minister will address the crisis in parliament tomorrow. Here in the uk, Prime MinisterBoris Johnson is preparing to request a new brexit deal apparently when he meets his french and german counterparts he will once again insist the uk will exit eu on october 31st with or without a withdrawal agreement. Johnson travels to berlin on wednesday and paris on thursday. This will be his First Official overseas trip since he took office last month. British government documents that warn of serious disruptions in the event of a no deal brexit have been leaked the sunday times has published a classified dose ya reveals the uk could face shortages of fuel, food and medicine. The times reports that a meltdown at British Ports could last up to three months while trucks that cross the English Channel try to adapt to new customs rules. The Uk Cabinet Office had compiled a report under the code name operation Yellow Hammer michael, the uk cabinet minister in charge of plans for no deal brexit insisted over the weekend that the leaked documents represented the most severe possible outcome. If we do have a no deal exit, there will inevitably some disruption, some bumps in the road thats why we want a deal. Its also important for people to recognize that whats been described in these documents in operation Yellow Hammer is emphatically a worst Case Scenario now, those leaked documents also contain some concerns about the border between gibraltar and spain. Gibraltar says the Yellow Hammer briefings are out of date and that authorities have already addressed the various no deal scenarios. Gibraltars chief minister this morning urged the uk and eu to Work Together to avoid a hard brexit the whole world is watching a game of political chicken being played out between london and brussels and i think we need to all have a way out of this. Nobody needs to be the first one to blink which will produce a la va face. One in europe or political constituencies in the united kingdom. We need to maturely find a way to address the possibility that both sides might want to shift in some way to ensure we avoid a no deal brex. The iranian tanker seized in july has left anchorage off injure bral ta the gray swan set sail on sunday night. It comes despite a u. S. Attempt to block its release at the 11th hour the federal courts in washington issued a warrant to keep the vessel detained on friday. But gibraltar rejected the request telling cnbc the Prosecutors Office was bound by eu law. Gibraltar considers the United States as a key ally. Nobody must think that we have sided with a foe and let down a friend this became in its last throes a legal issue. The request to the eyes was a political request. It came to our prosecuting authorities as a mutual Legal Assistance request all of those decisions have to be made objectively. There are legal issues about an eu blocking directive which prevents the enforcement of sanctions against iran to be done by the European Union authorities, including the member state authorities and gibraltar is one of them, at least until the 31st of october. Therefore this is a straight Forward Operation of law. And from gibraltar on to asian markets take a quick look at how the markets there close this is the hang sang closing up north of 2 on the session we also had shanghai have a very solid session as well up about similar amount lots more positivity in asian markets, a lot more graen on the board. But lets talk about the Political Developments in hong kong organizers say 1. 7 Million People braved heavy rain to protest in hong kongs Victoria Park on sunday the citys 11th weekend of prodemocracy demonstrations hong kong got a break from weeks long violence and tear gases this past weekend. Hundreds of thousands of antigovernment protesters marched calling for a complete withdrawal of a controversial extradition bill and universal suffrage on sunday while dwarfing probeijing antiprotest camp organizers say more than 1. 7 million participated in the march. Police estimate is much smaller at 128,000 while the peaceful nature of the march can give the protest a new momentum and more protests are being scheduled, u. S. President donald trump is linking the stoeshl unrest in hong kong with a trade deal with china. He warned china against resorting to violence in containing the hong kong protests i think it would be very hard to deal if they do violence. If its another tiananmen square, i think its a very hard thing to do if theres violence. And im president , but thats a little beyond me because i think there would be tremendous Political Sentiment not to do something. So i hope because i think were going to end up doing a very good deal. This follows his economic adviser larry kidlows similar message in an interview over the weekend that a humane ending in hong kong might bolster the u. S. china trade deal. All this as were eyeing beijings response in the leadup to october 1st which is the 70th anniversary of chinas national day. Coming up on the program, trump and his advisers play down fears of an impending recession. Well discuss how investors will react to these latest statements from the white house next. These folks, they dont have time to go to the post office 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 heres another cleaning tip from mr. Clean. Cleaning tough bathroom and kitchen messes with sprays and wipes can be a struggle. Theres an easier way. Try mr. Clean magic eraser. Just wet, squeeze and erase tough messes like bathtub soap scum and cakedon grease from oven doors. Now mr. Clean magic eraser comes in disposable sheets. 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He added that while china is keen to strike a trade deal, he is not yet prepared to sign an agreement. If i wanted to make a bad deal and settle on china, the market would go up, but it wouldnt be the right thing to do im just not ready to make a deal yet china would like to make a deal. Im not ready. Elsewhere, larry kidlow says trade delegates from china and the u. S. Will speak again within the next ten days. He told nbcs meet the press program if discussions, quote, pan out, washington would invite officials from beijing to the u. S. For talks kidlow explained why he believes a recession is not on the horizon. We had some block buster retail sales consumer numbers towards the back end of last week, really block buster numbers. And, in fact, despite a lot of worries with the volatile stock market, most economists on wall street towards the end of the week had been marking up their forecasts for the third and Fourth Quarter that echos our view. You know, what weve got here, consumers are working at higher wages. Right. They are spending at a rapid pace theyre also saving also while theyre spending thats an ideal situation. So i think actually the second half the economy is going to be very good in 2019. Meanwhile, white house trade adviser Peter Navarro has dismissed last weeks recession signal from the bond market. He said, quote, an inverted yield curve requires a big spread between the short and long all we have had is a flat curve. Navarro said it was the result of a strong domestic economy as investors chase yield in u. S. Markets. President trump has said he does not want to do business with huawei. And multiple reports on friday suggest that washington is expected to prolong a grace period that allows the Chinese Company to buy supplies from u. S. Firms however, trump once again called huawei a National Security threat and reiterated his desire to avoid working with the phone maker. Meanwhile, the ceo of apple, tim cook, he has warned trump about the impact of tariffs and how this could give an edge to apples main rival samsung the president said mr. Cook had made a good case and given him something to think about. Its tough for apple to pay tariffs if theyre competing with a very good company thats not. I said how good a competitor he said theyre a very good competitor samsung is not paying tariffs because theyre based in a different location, mostly south korea but theyre based in south korea. And i thought he made a very compelling argument, so im thinking about it. Chinas central bank announced Interest Rate reforms to help lower real rates for chinese companies. The pboc says the move will, quote, lower real lending rates as beijing looks to boost its economy amid a slow down and the trade war with the u. S the new loan prime rates will be based on open Market Operations with the central Bank Publishing the level on the 20th of each month. Indeed, that is taken as a positive sign for markets overnight with the chinese indexes all trading in the green. Lets bring in chief strategist from mellon bank the stimulus measures this time around seem to be leaning more towards Monetary Policy type measures than fiscal stimulus. Yeah. Thats exactly the way the market is reading it, but of course theres a quid pro quo from that is you got to expect further pressures. Monetary policy is going to ease, you expect that continued slow steady depreciation to take place. But of course thats going to have an impact as for the region because, of course, everybody else will want to keep their currency relatively competitive. So i think thats where they get out of this is going to come i think the key point here is that when it comes to talking about whats really driving the chinese, of course theres been that longer term downward pressure the trade story as well is there and theres no sign of that going away any time soon so i think weve got to accept that thats going to be a factor for at least i would argue the next 12 months. Youre saying that you think that the currency landscape, we got the pboc setting the midpoint range the weakest level in 11 years or something, you think that continues yes. And the landscape completely changes in the longterm yeah. I do think that the pboc continues to do that look, from their perspective, as long as it is operating in excessive volatility in their local and regional markets, as long as it is not particularly feeding into speculative bubbles, which is a consistent issue from their perspective, then i would argue to allow the currency to weaken why not . Theyre not manipulating it. The whole point about this is theyre allowing the market to actually take it where it should go to. And lets face it as well, thats exactly what the u. S. Did from 2002 onwards with the dollar when it took a policy that was nonneglect. Okay for the u. S. To allow the dollar to go down, why wouldnt they allow the juan to go down currency wars, how can the u. S. Win a currency war if there arent that many currencies out there that can appreciate against it well, at this moment in time is extremely difficult i mean, in the past they were the experts at this. They knew how to be able to bring rhetoric to bear they knew how to use Monetary Policy to bear over the course of the last ten years, central bank and politicians learned the tools and tricks they understand exactly what kiwi can do and what negative Interest Rates can do and they understand quite what benign neglect can do every central bank knows how to keep their currency weak, the u. S. Doesnt have an advantage anymore. What do you think that means for powell, though were coming up to an interesting time for the fed theres a lot of pressure from the president to keep cutting because ostensibly that should lead to a weaker dollar. If it doesnt, what do you think happens . I they the feds in a hugely difficult place right now. Because, of course, the market is despite what is being said, one and done, we got a market that is trying to decide whether theres two or three rate cuts by the end of this year at the same time, a Central Bank Governor is extremely aware that Central Bank Credibility takes decades to achieve and months to lose he cannot be steen be pushed into an extreme move by politics if anything, the president wants him to cut rates, he should say nothing at all well, lets see thank you very much for coming on the show, simon chief currency strategist. Also coming up, the warmup for this weeks g7 summit in france begins today as Emmanuel Macron hosts his russian counterpart Vladimir Putin from ukraine to iran, well look at the key talking points that comes up next danny let me get this straight. After a long day of hard work. You have to do more work . vo automatically sort your expenses and save over 40 hours a month. danny every day youre nearly fried to a crisp, professionally vo you earned it, were here to make sure you get it. Quickbooks. Backing you. 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. A lot of folks ask me why their dishwasher doesnt get everything clean. I tell them, it may be your detergent. Thats why more dishwasher brands recommend cascade platinum. 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The shanghai composite closes 2. 5 higher after Interest Rate reforms are introduced to support challenged companies as the trade war with the u. S. Takes its toll. Wall street gears up for a positive start after u. S. Stocks close in the green but log their third negative week in a row while the Trump Administration seems to calm recession fears. I sure dont see a recession, despite a lot of worries with the volatile stock market. Most economists on wall street towards the end of the week had been marking up for their forecast for the third and Fourth Quarter hong kong prepares for more massive protests after millions braved the rain in a peaceful rally for the 11thstraight weekend of prodemocracy demonstrations in the chinese territory. Well, the handover from wall street was pretty positive on friday and that momentum has continued into Asian Session overnight. A couple of stories at play here, one as you just heard, the u. S. Administration talking up prospects of the u. S. Economy, saying that a recession is not in sight they have also reiterated that the talks are on going with china, even though the president has said that theyre not any way closer to getting a deal signed and of course, over the weekend, we did hear about the china and chinese officials tweaking some of their Money Lending and the Interest Rates at which they lend out to the economy. Thats being taken as a sign of further stimulus, positive session for shanghai composite up more than 2 . So the theme in europe is also one of positive momentum ftse 100 we have. 8 percentage point higher but i want to talk about the german dax up. 8 as well today this again here are some stories swirling around germany and whether or not they would actually start begin with the fiscal spending. There is some talk over the weekend from the finance minister suggesting they have 50 billion euros worth of fire power if the economy were indeed to tip into a recession. So that 50 billion euro is the number thats flashing all over the screens today and sending some hope into these markets its also been a positive session for banks right at the top we have Deutsche Bank was up more than 3. 5 points at one point but now is up 1 italian index also up about 1 Percentage Points as with el big week for italian politics coming up. I want to take your attention to european yields because this talk of potential fiscal stimulus out of germany has sent yields higher were seeing fixed income come under selling pressure today i know that sounds strange the ten year is at minus 64. We sold off 3, 4 bases points. Coming off some of the record lows in yields we reached again on anticipation of potentially some easing coming out of germany. Of course, lets not forget the big ecb meeting coming up in september thats putting pressure you can see all of the other european fixed income markets coming under selling pressure today, too lets talk about u. S. Futures. And today weve got all of the three majors seen opening up in the green. S p 500 up 23 points dow up 220 points. Big week as well for the u. S we get the jackson hole to watch out for later on in the week so plenty of macro news to digest for investors. Back here on this side of the atlantic, the french president Emmanuel Macron will meet Vladimir Putin in the south of france later on today macron is expected to persuade putin to restart talks with ukraine. James is the Russia Program manager and joins us here on the studio before we talk about the foreign policy, which may or may not be the focus of these conversations, i would like to ask you about the situation in russia we had some pretty sizable protests there, some of the largest in over a decade why in your view is there this atmosphere in this particular case the protests were set off, sparked by the disenfranchisement of Opposition Party candidates not being allowed to stand the elections. They felt aggrieved and brought increasing numbers on to the streets. You want the wide macro view, then its been actually 20 years last week since Vladimir Putin was installed as Prime Minister and subsequently president of russia thats a long time it means that life gets increasingly difficult if youre not a completely authoritarian system where the lid is slightly off and allows for some protests, then these can snowball life is getting harder and hadar for Vladimir Putin after 20 years in power when Living Standards are now dropping quite considerably as a result of the oil price not increasing as it was for the first 15 years of his reign and of course sanctions and corruption hitting more the economy is actually done relatively okay this year. If you look at emerging market kmis, russia is one of the bright spots the currency is one of the best performing emerging markets this year and actually if you look at putins Approval Rating is still north of 60 thats something that other leaders would quite would be quite envious of. I probably challenge both of those points for what its worth. Okay. I think on the Approval Rating thing when people are asked and your ring up and ask somebody, people are suspicious and going to give an answer like Vladimir Putin in those area they dont know whats happening. So i think really that Approval Rating is, yes, still above many western leader Approval Ratings ill grant you there but in the late 40s or 50s. As for the economy, i vary from that as well its not a recession, but it is certainly stagnating, certainly growing slower than actually even a postbrexit britain is expected to do so. Its performing way underpotential for a nation of 145 Million People when youre the largest oil Energy Exporter in the world so its not so much whether the russian economy is in free fall, its more that its underperforming and certainly in comparison to a first decade of putins reign. James, one more question about the domestic environment for investors looking at russia today, what should they understand about the relationship between government and society and about the potential for the kind of c change in politics weve seen in, for instance, ukraine. Yeah. There is dissatisfaction with corruption i think in russia theres a lot more safeguards against that kind of thing happening. Theres a heavy Security State security presence. Putin has a relatively new formed president ial guard if you like, 30,000 people under his command designed to hit spots where trouble comes. They dont always use it they use it where protests are political, as they are now, in fact we have seen violence. We have seen some beeatings the fact is russia is an increasingly protest driven nation these days. Ten years ago we wouldnt see these kinds of things because there is increasing dissatisfaction, inkresing confidence on the part of increasingly harassed opposition f you like. James, president putin gave an interview to the fd where he declared li ed liberalism is ded do you find it strange that president macron is engaging before the g7 summit macron meeting one on one with someone who is actively declared that this western liberalism is on the decline why is he indulging him . Its a fascinating question the way you put it is really good i suppose for macron, if you like the de facto leader of europe, merkel losing power, the uk distracted by brexit, macron sees himself as a european leader, if you like. There is still an immaturity in macron where he believes he can do things that other european leaders are incapable. Any new leader who comes into power in any significant european state believes his predecessors are rubbish and they can do what they couldnt as for macron personally, and i think the french attitude towards france and ukraine, think about your previous question, theres still not a full understanding that ukraine sa genuinely independent nation. Disdain for ukraine, if you like and the french its a businessfirst relationship. And if its a businessfirst relationship and if your salary depends on you not understanding something its essential to understand, then youre going to put commerce before sanctions even though sanctions have an element which is if you like more ethical or moral result of annexation of crimea the french has been a more industrydriven relationship than the uk or for more, head to our website for a special report on putins generation an indepth look at russias young people. Thats on cnbc. Com well, it was another slightly upsetting weekend if you are a chelsea fan. The team has continued its losing streak at the start of the season after coming draw 11 with lester yesterday. Adam reed joins us in the studio not another happy occasion for mr. Lampard. Absolutely. This is how its going to be for Frank Lampard. Hell get wins no doubt about that but hell have to take a rough with the smooth as he steps into premier League Management he has a transfer embargo until the summer of next year so they havent got the opportunity to sign players this isnt really his team yet, but hes working with what hes got and what hes got is a lot of young players, potentially talented players, some that could be chelsea players for years to come. When it comes to one of those players, Mason Mountain was one of those who has been entrusted by Frank Lampard in the starting 11 Stamford Bridge rose to welcome Frank Lampard back hes won everything you could win as a chelsea player. This is what lampard would like to see pressing from the mount and mount getting his reward putting chelsea up 10 he scored the equalizer in the second half to make it 11 no wins through three games for Frank Lampard. They lost of course to Manchester United to 40 but did play quite well. Man chested united, a tough place for them to go, are they going to sell short . Dont expect to mutual from his players yet because theyre not quite up to speed. Its a big period still for us its still more or less preseason we got a couple other weeks where we could put loads of work on the Training Ground and after National Break i think its too busy with games to do some training. So we had a great week training. The mood has been good, of course, and its been competitive because theres some players that werent involved that they want to make sure that they prove a point to the coaches and myself that they should be involved next time so, one of those players who might want to prove a point is alexis sanchez, 75,000 dollars every time he puts on a Manchester United shirt. He is close to being involved, but probably wont be tonight. He turned down a move to roma, but Manchester United could go top of the league if they get a win against wolves, but they have lost the last two times they have been there. Adam, its no big secret of yours how much i love watching the cricket. Lets watch steve smith the concussion he had. What does that mean for him . I can feel your excitement growing every time we do one of these cricket segments youre right steve smith was at the center of attention, even though he wasnt on the field yesterday during the last day of the match was drawn but that only tells half the story. Australia do lead the series 10. But will steve smith be there is the big question i was there on saturday when he was struck on the side of the neck by a 90 miles an hour ball. It was a brilliant battle going on between the two of them, but at the same time, it ended with smith going off the field injured. Precautions were taken he came back out, didnt look completely right, not least because he didnt get a century which he normally does against england, but he didnt take any further part in the test match australia will assess whether hell be ready in time they have a different set of concussion they take a much longer period of time to recover and then to return to play, but cricket australia, theyre protd kols from their website say if they dont show any further symptoms within 24 hours they can return to play. Steve smith will be continued to be assessed. Incredibly exciting player and hopefully he comes back and fairer treatment from the england fans adam, thank you so much for joining us im not scared of much, but 95 miles an hour you would not see me looking very happy. Coming up, a deep dive into education all over the globe this week. Today a look at learning and Technology Well speak to finlands Administration Li andersson coming 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. Join the fight with the Alzheimers Association. Olay ultra moisture body wash gives skin the nourishment it needs and keeps it there longer with lockin moisture technology. Skin is petal smooth. Because your best skin starts with olay. Well, willem, they say you learn something new everyday well, its the start of Education Week here at cnbc, and were kicking it off by looking at the Role Technology is playing in the evolution of learning according to our next guest, a tighter labor market and rising unemployment rates have raised concerns about the widening skills gap he suggests a new techgeared education model could help fill gaps in the job market im happy to bring in the vp of education at ibm who joins us from new york. Grace, its great to have you with us. I just want to ask you about your specific program that you launched back in 2011 that essentially deals with this mismatch between what businesses are looking for and what workers can offer. So can you tell us a little bit more about this program . Yes, i can. Thank you very much. Its called p tech p tech is really a new way of high school. Its all about mick private partnership so high schools, Community Colleges and Industry Partners are coming together to make sure that students are really ready for the future of work so were taking the very notion of high school which is traditionally grades 9 through 12 and expanding it so that it goes from grades 9 through 14. Students arent earning their high school diploma, but theyre also earning a costfree College Degree its not just any degree, its one thats aligned to industry needs. So when students graduate, theyre ready to fill those jobs grace, youre rolling this out whats really great about p tech. Sorry i was interesting. Youre rolling this out in several states across the u. S. You have to introduce this in many countries around the world already. Im wondering are there particular areas of the world where governments have failed to refocus their efforts on education . I think governments around the world are all concerned about education, access, equity and inclusion and really focussing on how education and Work Force Development efforts can come together. Thats where p tech really does come into play the model is being embraced worldwide. Were in 18 countries, including five in europe that will launch this september so were finding that many governments are really excited by the ptech no dell and embracing it and i just want to ask you, do you think that the investment in Education Technology is more pressing in countries where the tech sector is more advanced here im talking specifically about the u. S. , silicon valley, china have made big strides. Is that where youre seeing the demand really most pressing . Well, you know what, at ibm we believe that a. I. Will change 100 of jobs its really important for countries around the world to focus on preparing people for the opportunities that new technologies present so eits not really relegated to specific countries only, its really a worldwide issue that we all have to focus on and thats really where ptech comes in because it doesnt only work in countries like the United States or in europe it really works in countries around the world so were really in all corners of the earth, whether its the philippines or ireland or england or canada or brazil. Grace, thank you so much for joining us and getting up to se early to do so. Finland leads the way in the provision of future skills education. The finnish challenges the status quo of traditional models by adopting a learning through play scheme that promotes balanced growth in its pupils. Were happy to say that li andersson joins us on the phone from helsinki. What originally prompted the finnish government, the authorities there to rethink the approach to education, or is this something thats always been part of the finnish curriculum good morning, everyone and greetings from helsinki. This has always been a part of the educational thinking in finland i think because we are happy to see that we have managed to build a very high quality educational system thats also very that performs very well in terms of quality but at the same time also understanding that children need to play and that we also need to emphasize in the joy of learning throughout the school day. I just want story. I wanted to finland, many Northern European countries they all do very well when you look at them on Global Indexes for Educational Attainment is part of that do you acknowledge that these are smaller populations whereby its easier to centralize standards and thresholds for a National System well, i think one of the key factors behind the success is the fact that weve managed to build an Education System thats common for all students, so its very accessible and the level of income of the pupils families, for example, doesnt determine which schools you go to. So we managed to build a very wellperforming common public schooling system but one factor thats also crucial behind the finnish educational model is that we have high lly educated teachers and the teachers profession is a very highly valued one within the society and in the International Assessment that has been done where they have gone through the different educational system and different countries, i think the role of the teachers and the teachers education is one thing that has been focussed a lot on in the finnish context and really makes a difference in terms of the Education System as a whole. So one of them one of the characteristics is the quality of the teachers themselves the other is access to the public schooling system. I want to ask you from a finance perspective how much of a strain on public finances does the budget for education pose . Again, because we take this as a very good model for potentially the template for other European Countries but is it a disproportionate part of spending allocated to the Education Division i would not say its disproportionate, that its in disproportionate, but on the contrary actually that since the financial crisis in 2008 weve seen a development all over europe where governments have had to save spending that also has showed in reduce finances for many public services, including education. I think with what we are seeing now in the changes in labor market, with ch means knowledge commands are growing in all professions, we see Rapid Technological Development and awety mization, some jobs will disappear and new jobs will form, i think theres a growing understand we actually need to spend more on education and research if we want to make sure that we can raise the level of knowledge and educational level of the population as a whole i think also in finland the discussion has changed a lot in this regard and we are now focussing on how we can make more investment in education. Certainly important going to leave it there, minister thank you very much. That was li andersson. Everything is changing in the green today. Looks as though its going to be the same for the u. S thank for watching Worldwide Exchange kbt is coming up next memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 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Then the bulls are ready to run seemingly green arrows across asia and europe and u. S. Futures are pointing to a big jump on wall streets open its monday, august 19th and Worldwide Exchange