And german exports mark the biggest increase since 1990. Shares slump after a warning he wont hesitate to add more countries to britains quarantine list. Uber sees revenues fall almost 30 sending shares lower after hours. A warm welcome to street signs. Weve got some macro data. Frances trade balance fell to 7. 96 billion in june down from mays figure comfortably beating expectations in germany, exports are posted their biggest gain rising 14. 9 in june. Strong demand from china spurred a near 9 jump in industrial output chinese exports rose 2 easily beating forecasts. Imports contracted missing estimates of a rise. Officials are reportedly said next week to reach the talks asian markets have traded lower. Main land Chinese Markets taking a hit down 1. 4 amid escalations with washington moving to ban tiktok owner bytedance and we chat owner tencent European Markets have been open about an hour stocks are up 15 basis points. This follows a drop of 0. 7 . Yesterday, the u. S. Session also fairly muted for most of the trading session. We did sessions higher facebook gaining notably following the launch of reels which is a competitive rival to tiktok that will be part of their instagram platform u. S. Markets higher and European Markets slightly higher as well. European markets we have green on the board for the ftse 100, the dax and others investors digesting the data we got through this morning for trade and various countries ahead of the u. S. Nonfarm payroll report later today the ceo of aberdeen life told cnbc the outlook for the second half remains uncertain and depends on the second outbreak remains difficult because of the underlying volatility. We are not just dealing with economic data. There has never been as big a connection between health, well being, economics and broad policy a lot of things have to fall in place before we see a strong rally in equity markets from here lets bring in our first guest. Jeffery, great to have you back on the program what is your take on the market here uncertainty in the mark eight and around the World Markets remain high and continue to rally a combination of better cohesive quality making. The markets have underperformed. Valuations are reasonable and underheld. They do need to be very selective within the markets a lot of people felt similarly in the immediate after math this was europes opportunity to better perform europe did a getter job managing the outbreak and yet in july, european stocks underperform a lot of the u. S investors not truly convinced that this is the game changer many initially thought what is your take . Are you not concerned around the Implementation Risk and concerned that this may actually replace national spending. We dont have a concern given the prolonged period we think that is critical in two ways it supports the periphery and breaks up the european risk that will encourage flows into all european assets. And putting the Recovery Fund in place. The second thing is that it is part of the eu sevenyear budget that becomes more than the instrument it becomes a tool with the Borrowing Capacity that means that europe will see a larger Investor Base in safe, save save on bonds just today, we are talking about belgium being taken off the bridge list and you are having to go back to kwaurnt to fly back to the uk there we are seeing a spike in cases in france at the moment and other European Countries how concerns are you about the affect of assets from covid19 weve got ongoing uncertainty that is best demonstrated where bell Weather Companies have all given us no guidance our view is that the uncertainties we are seeing are going to be less of a problem than we saw in april and may theyll be more regional and for shorter periods. The market will gradually learn that covid is with us a few months our view is that well have a cocktail of a solution in terms of a vaccine if that is correct, then it is supportive in the coming months as we move towards 2021, cyclicals will begin to perform. That is where we see the exposure he said the uk by far remains the cheapest looking market. What about buying the uk on the medium term view we would be buying in the shortterm it is not over yet because the uk has got a really high exposure to services we still have a brexit overhang well start to see brexit clarity we need to see clarity of what the government does and unlocking progress and to the extend we get resurgence we are confident by the fourth quarter, the 15 times multiple and the dividend that is still above 3 will begin to assert and well see buying interest. We also think with that, well continue to see sterling the markets are moving together in contrast to previous months that weve moved that way. I want to dive into more specific relations weve seen a lot of movement in who is a dividend player with the banks pulling back and Energy Giants slashing theirs which had been reliable sources of income. How are you adjusting your view given that you do want to pay into those we are looking closely at balance flow strength and cash flow strength. Those with the strength have been reinstating the dividends in the uk, weve had 27 countries that would do so they also announced a move into alternative energy and growth. The market is looking for companies that are moving to higher growth areas because that is the way they have growth shifting in that direction we dont think there is solvency pressures there they could be a great lead indicator in the months ahead net interest market measure peaking. That could be a sign we are Getting Better visibility and better likelihood of Corporate Investment and spending and also the constituents in the European Market so they are a big driver in gains towards the second half of the year our colleague focused on bp and the fact that share price had jumped on the announcement he said the results were dreadful and the people who were buying bp on the back were idiots is there an element in a way in particular where we are seeing new u. S. Investors chase share Prices Higher on very flimsy stories . We think some of these share prices have overrun. Theyve been one of what we call unstoppable Trends Companies will see those gradually and not very quickly we are looking for sustained share prices our advice is not to trade too aggressively with unstoppable trends also you are in favor of highyield bonds the uncertainty and the solvency how are you concerned about yields and not rising concerns ahead. The uncertainty with uk high yield. Youve had average yields in that area falling from 10 to around 4 year to date we think there is further to go yields are low a recent government bond. In that area, we do have positive yields still. We think what will happen is ongoing ecb support. We think there is another 500 billion euros ahead that will help keep the downward pressure that will feed through buying and also suppress the bond level. Also rising but rising quickly thank you for that. Shares in iag and easy jet are lower after the uk announced travelers from belgium andorra and the bahamas after the countries have seen a rise in cases. The changes will begin on saturday with the government warning against all but essential travel to those destinations coming up on the show, trump ticks off tiktok as a National Security threat. More after the break the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Andputs its customersity a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back to street signs. Officials from the sec have urged President Trump to Delist Companies from the chinese treasury that fail to comply with Audit Standards looking at ways to protect american investors from noncompliant chinese firms an official told officials the move is designed to level the playing field. President trump has unveiled a ban on u. S. Transactions with bytedance and we chat owner tencent. Trump said the two companies present significant threat to National Security adding that the apps could allow beijing access to private data of american citizens. The move is to take effect in 45 days we have this report. Reporter u. S. President trump has issued aek tiff orders blocking transactions with bytedance and tencent which owns we chat starting in 45 days time both cite National Security concerns and address the threat supposedly posed by these apps it is the scope that is unclear. We are waiting to see how theyll be defined this comes a week after trump threatened to ban tiktok it has until september 15 to see its u. S. Business snapped up by microsoft or see it banned in the u. S. This could put pressure to address some of these National Security concerns. Tiktok has come under fire in washington over concerns it uses data in america that could end up in the hands of the Chinese Government a similar order that threatens Chinese Government to access personal data of americans this is an interesting one, we chat is popular messaging app used by many chinese in america to chat but also to send money this could be more significant than tiktok which could be rescued by microsoft these apps may be used for disinformation campaigns that may potentially benefit the Chinese Government the u. S. Is really toughening its stance on chinese companies. Mike pompeo looking to see chinese apps removed from American App Stores at the initiative aimed at tackling National Security risks in the u. S. This does signal that u. S. Is looking to broaden its crack down far beyond just tiktok and that creates a tense back drop in the next few weeks. Uber has posted a 29 fall as the company suffered from global lockdowns that saw ride sharing mobility business. Our colleague filed this report. In just one quarter, uber went from being a Ride Sharing Company to a mobility company. Declining 6 year over year and delivery revenue more than doubled. Results werent pretty uber booked a net loss of 1. 8 billion that comes after the 3 billion net loss giving analysts more color on regional ridesharing trends calling this a tale of 10,000 cities asia and india is in a recovery league weve seen these exceed pre covid high encouraging france, spain and germany. The u. S. Value is down 50 to 85 in our top market. New york leading the recovery and cities like San Francisco and l. A. When asked what happens if structural changes occur and city life never goes back to the way it was, he said uber will expand to the smaller cities and be a consistent utility. He talked about the eats now called the Delivery Business as a health in the decline for ride sharing. He said weve essentially built another uber in three years with an accelerated Growth Profile and foot print some may take issue with with delivery, uber is getting into a competitive market with established players. Acquisition of post mates was not organic and that bumped up its market share still the team rei hterated confidence in 2021 the cfo said adjusted ebita loss is expected to be in line with q2 and would continue to improve in the fourth quarter. Reporting for cnbc Business News our u. S. Colleagues will speak with uber u. S. Ceo at 15 00 cet. The chart doesnt look great, does it . No. Do they want uber to become a food Delivery Business can the trends persist and what does that mean for mobility . It raises questions for ad tech and whether Ad Tech Companies because this is effectively a Delivery Business with a Technology Front end. Whether they have demonstrated that they deserve the same valuation as the faang, the model that is new and destructive for other Business Models it is a big question. The tech sector gets clumped together a lot you look at the new sek tctor, lot of Retail Investors and many that touch their lives i just annoyed the director asking you more questions because i wants to go to break well bring you an exclusive interview with bank of england mi uty governor dave ramsden congp in just a minute. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines President Trump ratchets up tensions with beijing with a new executive order banning tiktok and we chat from working with u. S. Companies while tencent opens in the red an export recovery chinese external trade jumps to a high in july and german exports mark the biggest increase since 1990. Shares of easy jet slump after a warning they wont hesitate to add more countries to the uk quarantine list. And a plunge in passengers for uber sending shares lower after hours. Lets get a check on the uk markets. It is a mixed picture, we have red on the board there for the spanish and german markets the ftse 100 trading up further. Trading in the session, the main benchmark on pace to break a twoweek losing streak lets look at the uk bond. A twoyear trading 4 there. 10 basis points and trading around 0. 63 basis points lets get a look at sterling where we did see a lot of strength push into the pound and offering new suggestions for recovery and outlook and a pull back around 130. 93 lets talk about the bank of englands attitude to the future governor andrew baylie said he will push back the governor also talked about the speculation around negative rates. It is in the tool box but there is no plan at the moment to bring it out and put it to work we have no plan to implement negative rates at the moment we spent a lot of time looking at the tool box and negative rates. We look at the experience of the negative rates weve used them and a lot of useful evidence and experience we have talked to about it there is a close relationship between the effectiveness and the structure of the Banking System also the point in the Economic Cycle theyve been used in different countries. So there is a lot of conditionality in there. We need as many tools in the box as we can get. We are in a constrained position with Interest Rates as though as they are it makes sense to have them in the box but i would caution anybody that thinks we are about to pull them out of the box and put them to work thats not what we are discussing im pleased they are talking about the markets in particular. Dave ramsden is talking about the markets in particular. Good morning and thanks for your time here. We just had the uk chancellor out this morning talking about how the uk cannot sustain the amount of borrowing in the crisis back in march, we had a bit of a wobble in the guilt market do you think there is a hard ceiling here for the degree of borrowing. Does that mean there is a limit on the asset purr schasing the bank can do . Thank you indeed for having me on this morning i hope you can hear me okay. I think it is really important looking back to that extraordinarily period in march. As far as yesterdays Financial Stability report in the core market particularly in the trezy market and guilt market that was about market dysfunction more than about borrowing. Reflecting a range at its core was not really about that point when there are economists out there fix ated on the risk of bond market vigilantlies deciding that the debt stock has risen too high, they are wrong in looking at that risk at this stage. You think there is plenty more capacity for the market to absorb more gilt you have seen theup date on the latest yields we are seeing and they are extraordinarily low p but it also reflects a downward trend in recent months and years as longer term trends, lower productivity, demographic factors have pushed down on real rates and as far as the treasury in the Global Financial crisis that is not to say that we dont always have to ensure your fiscal position is sustainable the point i was trying to make with the extraordinary conditions in march, which i have not seen in my time with the treasury and the bank. Reflected in the liquidity shortage when you look at where debt has gone in the uk and other jurisdiction, the root cause why debt has gone up and barrowers have increased so significantly is because of the pandemic and impacts and tax receit and doesnt always move towards sustainability in finances can i ask you then, the forecast yesterday on the fan chart had us moving out towards 2 on inflation by 2022. But we would see Something Like one and three quarters percent by 2021. Given that you point out that half of the gilt market is in negative territory at this point. Are we marching forward to some kind of crisis in the market are we living on borrowed time here it seems that a lot of people that own gilt on the other side of the story will see inflation upward of 2 over the next 22 to 24 months. I think we are in the position well see the gilt market there were very, very challenging positions. Weve made very significant intervention on the 19th of march. Out of the vision which was designed explicitly to explore market finding with the purchasing of 200 billion of gilt and Corporate Bonds youve seen conditions improve markedly and come back to much more where we they are pre covid. The market is functioning well but equally as we pass the projections we put out show we are forecasting that the recovery continues we think the pace of the recovery wont slow. The recovery will continue with months of factors alongside the weakness of demand pressing down on inflation. We think as the forecast showed, that inflation will rise back towards the target towards the end of the forecast period we see a return to something closer to the pre covid levels of activity and inflation but it will take time to get there. The government was receipt sent i guess youll probably go with him on that. As you would have seen, the market is pricing in an announcement in november of another 100 billion sterling in asset purchasing is there a ceiling on how high the bank can go in terms of expanding the Balance Sheet at this point i wonder if you can talk about whether the market is correct in pricing in these additional amounts . One thing we have certainly learned through this crisis so far. You saw that in the new analysis we put out around negative rates the new position former government and potential head room warns for policies obviously revisit in real time and since the crisis hit, weve done over 300 billion of asset purchasing the 300 billion is still progressing at a pace announced to slowing to around 4. 5 billion that would enable to complete that program by the end of the year against these wishes. I am going to repeat what andrew said yesterday we do have further head room and news that is clear there are different ways of calculating that our decision yesterday was that we didnt need to introduce anymore but we need to introduce Forward Guidance to make sure we would both be considering policy until we see clear evidence that that would come up with the weakness of the economy closing and the inflation rising back to target as you were discussing earlier. Given indication of where that policy might be. You included a session in the policy report that assesses the negative rates for the uk as a policy instrument. Andrew bailee yesterday making clear it remains in the tool box for now. Can you give us more insight into how you are thinking about conditionality and what would be key to lead into this policy in the future yes thanks for pick up on that that we published yesterday i think that was the first time the mpc has publishe sets out ty conditionality we have looked at the experience that would move towards the period that moves towards negative count of the failing structure. So how rates get out to rates on the deposits and lending rates the second piece is where different economies and jurisdictions would be set and our box goes through those that need to be achieved and take account to those who rationalize it i guess thy point to stress because im not going to say if this applies to some date in the future, then that would affect the supply what that points out is what andrew highlighted yesterday is that negative rates now are in the tool box alongside of that program where we have moved Forward Guidance it is part of the tool box and not actively planning for negative rates. We are using tried and tested policies appreciate the added color there. If i look at the projections at the heart of the Economic Outlook is what was issued on the labor market and looking to extend the furlough skpecheme. What would that mean for the outlook . I think you are absolutely right to flag the labor market we certa view, which e devoted the whole section of the policy to our assessment in the labor market to inform the forecast this goods back to what i said earlier about the nature of the crisis of the pandemic and the recovery to be shut down the treasury and the government with extraordinary fiscal measures and never went anywhere near measures such as the furlough scheme that subsidy scheme has been essential as the economy has gone through a very sharp decline into q2 and is now in the initial phase. As we move beyond this initial recovery phase, well be where the economy is going to be involving, repurposing in response to the crisis weve already seen the pandemic that has been greater on the inspectors where there is more social interaction and weve seen that in regards to the calls and outputs calling on the furlough scheme. As we move to recovery, a lesson is that it will be important that we allow and enable that transition in whatever form it is going to take to take place and a subsidies theme becomes less relevant we think there will be challenges for people moving into those new jobs thats why we think hiring will be weak. There is significant rise on unemployment that will pretty much double to 2. 5 Million People that is a challenging position we take in the worst unemployment since the financial crisis it is important that the operation at the uk labor market and new jobs have been created that doesnt mean jobs will be lost and to the current trend. That unfortunately and it is a difficult situation is a consequence of the shop on the Monetary Policy side we can support as keeping financial conditions as supported as we can through our policy actions but it is more for the authorities actions, government policy actions to enable that transition to take place and the structural change that economy will have to go to to happen deputy governor, briefly, since you are now adding negative rates to the tool box, can i ask you. Other Central Banks have gone down the road on equity purchasing is that something you may have looked at and would it ever make it into the tool box would you be prepared to buy equity etfs for example . We are very clear we keep the tool box under continual review. At the current time, no. We have no plans we havent been working on that area we have no plans we just added negative rates to the tool box it is important to stress in the extraordinary circumstances that we are in. We would always be reviewing our tools but we do have to look at the risk around our tools. We look at asset purchases which carry a risk in terms of losses on those are indem any tied by the treasury we have to bear in mind the risks that go with the policies. I focus on the risks that go with the asset purchases we havent got work going in the area you were just discussing. It has been a pleasure catching up with you banking at the bank of england do say thanks to the team for us for helping us out with the conversations with both you and the governor over the last 24 hours. Well take one last break the u. S. Economy is expected to have added 1. 5 million jobs in july well get a preview of those numbers after the brk. Ea what happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back u. S. Weekly jobless claims fell to a pandemic low of 1. 19 million the first major reading following the expiration of the government unemployment scheme and Payment Protection Program adding 1. 6 million jobs . July down from the 4. 8 million gain expected to ease slightly to 10. 5 . As a rise of coronavirus cases in major American Cities in the south and west President Trump indicated he is ready to sign an executive order extending payments andfor unemployment payments remaining a key contention wall sfretreet looking at rd across the board thank you for watching this special edition of street signs. Se n myself and my special guest. Worldwide exchange is coming up next. What happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. It is 5 00 in new york here is your top five 5 queue the spinal tap because the nasdaq is turning it up to 11. Tiktok tensions rising. Dead locked in d. C democrats and republicans still miles apart on major issues for the next relief bill the president may take mat