Mainland shares gaining access to the msci index sending the blue chip stocks to 1 1 2 year highs. The queen is due to open parliament in just over two hours. But uk government hanging in the balance as a deal between theresa mays conservatives and the Northern Irish dup remains in limbo were in complete unknown territory. Theyre trying to sew up the deal with a Smaller Party not telling us what that deal is that Smaller Party today, so they cant do the deal yet because the governing party is in chaos. Travel niis kalanick steps n as ceo of uber over a shareholder revolt its officially in bear market territory we had a rollover in one of the contracts from july to august yesterday. The Oil Prices Falling pretty modestly bearing in mind this has been a long pulldown from january where we were trading around about 55 bucks a barrel on the front month contract all the oil majors finding themselves under a significant amount of pressure in europe lets look at the u. S. Energy sector as well bearing in mind weve been talking about record after record on the broader u. S. Indices. Record after record on sectors such as material, technology which has had its own wobble this sector moved in one direction all year from the top of the month we saw falling, falling, falling, now people are saying, hang on a second, is it bear market territory where you have to sell it because its unownible or bear market territory where we can start buying this sector because its one of the most unloved sectors in the world what is the catalyst im an oil watcher i spend time running after saudi, Iranian Oil Ministers in opec i have to say im struggling to find it from the supply story. Opec has been telling us their compliance is 1 0108 of the mot recent cuts. Surely you stop at 100 no saudi is putting down more from its share of what its supposed to be cutting. Nonopec compliance has been slightly less, the mean has gone to around 106. Opec has big compliance, the latest api data yesterday wasnt that bearish there was a draw down. It was 2. 7 Million Barrels kind of where you would hope it would be offsetting what we saw, the build from the week earlier. We have data from the government coming out into todays session. That will be very interesting. Thats coming out at about 10 30 eastern time i cant see where the ish catals unless you remember its not just about supply. Its about demand as well. Plus investor positioning. Theres three people in this relationship, the buyers, sellers and the speculators who do both. I think its interesting to see what theyve been up to. Earlier we spoke to rita sa nshn wh said these moves are unprecedented. Sentiment, i have not seen sentiment this bad ever. We have had clients emailing saying theyve been trading 20, 30 years, they never seen anything like this could we go below 40 in the shortterm very well so, yes, we could. Okay. So lets look at european mar t marke markets. Theyve been ignoring this, but perhaps other factors which are of great concern European Equity markets coming under pressure the ftse 100, which im sure i mentioned earlier was looking at virtually 7600, now trading around 7455. Well come back to this story in a few minutes time chinas blue chip stocks have hit a 1 1 2 year high we know why this has happened. This is the msci, which we talked about and i told to you read bobs s bpisanis piece it explains the numbers that were talking about that are index linked to this the msci change, emerging market index, 222 large cap equities accepted from Mainland China the index said it would add to the stocks on a gradual basis from next year. You cant put that many stocks in straight away theres all kinds of issues. Companies on the list include the bank of china. Right. We have this report. This is the fourth time that msci has looked at china for inclusion. They passed over a shares for three years in a row saying it wasnt enough. China had not done enough to increase Market Access and transparency for Foreign Investors. Now, of course, with this news today, that certainly does indicate that msci is on board with what china has done, with what beijing has done on the reform side. They called it a game changer what china had done more eventually in terms of programs it rolled out in the last few years, connecting hong kong with mainland stock exchanges in shanghai and shenzhen, which allowed Foreign Investors to invest into china through hong kong and chinese investors to invest into hong kong through the mainland domestic stock markets. A lot of these concerns, yep, msci did work with authorities to resolve them. Critics are saying issues still at hand here, one for instance is stocks are still suspended on the chinese markets. No idea when theyll start trading again. Not enough information to figure out what next for them with the stocks that have been suspended. Lets bring in kevin leyong for more they still have to clean up their act. Theres a lot of things to deal with suspensions are still there. Preapproval restrictions are still there. So its a first step theyre giving, a first clearance theyre giving, but then more to be done for bigger inclusion right now you can see the inclusion is a partial inclusion. I would not call that a full inclusion yet. The other issue at hand is whether Foreign Investors want more exposure to china the domestic economy is slowing. Its the worlds second largest, giving waning growth concerns of rising debt levels, it may not be the most rosy picture for investors. The other issue is gains made in the market, it may be hard to take that out given chinas strict capital controls. Perhaps the light at the end of the tunnel is now that since chinas stocks are in the spotlight, beijing may be pushed to make greater reforms that analysts do need to happen again, i want to underscore what you said before, referencing the wto and being included, the renminbi being included in the drawing rates basket this is a symbolic move. Tons of Global Investor money tracks this index. We could see more coming in but that doesnt mean that everything is quite clear yet, in the clear for china when it comes to complete and open Market Access. Definitely an issue long on the table. For me, whats going on in china and the great reforms going on there the move away from look at industrial and exports addre s as a primary dro the economy to domestic, that fits into the story and what is going on with oil and demand ha herman wang has joined us. For me, it almost doesnt matter in the shortterm about how amazing the compliance had been from opec and nonopec, its about the buyers and the speculators as well. Just run through what you think the buyers are doing, whether there is strong behademand or n for product. Opec almost painted themselveses into a corner with this compliance. Opec comes out every week with compliance figures, the market yawns. Inventory data is not falling down, prices plunge. Weve seen that the last couple of days. The u. S. Has seen two weeks of stock builds that the market was not expecting. Its gone against the narrative where opec is saying stocks are coming down, you see the monthly reports. Oecd stocks are coming down. But some of the data, the u. S. Is the most transparent data market so theyre upset with the stocks they dont like them being that high but the demand picture according to just about everyone said by the end of the quarter of next year i think next year, theyll have 100 Million Barrels a day of demand as well. So demand is picking up even if the stocks are not surely if opec holds the line with discipline, we will get the price range. Thats the message opec is talking about, price range the market trades daytoday, week to week the u. S. Stocks are still plenty high theres questions about will this summer demand driving season materialize its been lackluster. When did it start . End of may whats happened . Demand, it takes months to show the data. But we know u. S. Refinery runs are at record highs. Gasoline stocks are very high. Theyve been running a lot of crude if that demand doesnt materialize and pull the gasoline out of storage, refinery runs can come down. Gasoline prices go down. Crack spreads suffer, refineries dont run as much crude. Crude demand goes down the third person in this relationship, the interloper, the one who was responsible for an extra 15 bucks to the upside, are they responsible to any bucks to the down side, the speculators . Thats what opec is trying to figure out opec is engaging with the Money Managers back at sera week earlier this year he was talking a good game. We met all these hedge funds, we came to an understanding prices were doing okay the understanding was you guys produce what you can, well cut down on our production floss way the u. S. Producers will agree there is a fundamental disconnect between what somebody is trying to hedge production will do versus a state producer trying to influence supply levels is the oil price going to break 40 will wti break 40 . Certainly some technical indicators suggesting that might be the case. The 50day moving average has gone below the 200day moving average. Thats gently a bearish sign its hard to say Inventory Data seems to be what everybody is looking at. Herman, thank you very much getting to us. Okay elsewhere, uk government no deal yet between uk Prime Minister theresa may and Northern Islands democratic unionist party. Queen elizabeth ii will formally open Parliament Today with her speech the vote on approving the speech will be a critical test of whether may can manage the difficult task of leading a minority government. Dup sources told reuters that the partys support should not be taken for granted but the party is expected to vote in favor of the conservative s legislative program. Willem is down at westminster. You spoke to john macdonald. Im fascinated to hear what he had to say its fascinating, ease rhes relishing the idea on the confusion as to their policies, theyll struggle to get this speech through or without the dup, we heard from Arlene Foster and a flub of people saying a deal is not looking that straightforward. Even damian green, the de facto deputy Prime Minister, the secretary of state saying this morning to the bbc that centsly hes not sure a deal will be possible john macdonald, i asked him a number of questions. The one interesting for the european audience is about the idea that Philip Hammond, his opposite number on the conservative front benches, has essentially been the one accused of pushing us off brexit we clearly heard that the idea of staying in the Single Market is off the table, according to david davis, staying in the Customs Union in the current form is off the table. Philip hammond understood austerity was a problem for british voters i issed john m easked john macdd whether he trusted anything Philip Hammond had to say. The prime issue is about the protection of jobs and our economy. I dont believe a word Philip Hammond says because six weeks ago he was willing to walk away from negotiations and put the uk as a tax haven off the shores of Continental Europe his position changes everybody week clearly Philip Hammond along with Boris Johnson and david davis who are out on maneuver fofrs tmaneuvers for the leadership bid either Philip Hammond is making a bid for leadership or trying to be the kingmaker. Theyre in disarray. So its not just about the difficult relationships between the various parties here in the uk, its about difficult relationships within certain parties and specifically the conservative party. If theresa may seems to put the speech forward with a number of issues that have taken the manifesto off the table, encouraging Economic Growth protecting consumers, clamping down on domestic violence, these issues have crossparty support but a lot of the pledges we heard during the general election having not won that majority seem to be watered down well get a better idea of that in the next few hours when the queen reads out a raft of legislation. Clearly brexit will be front and center of the legislation. We heard the queens speech next year will be canceled to extend the period of time to two years during which parliamentarians can debate a bunch of legislation coming down the pipeline a lot of that will be focused on brexit im sure shell be quite pleased especially if it coincides with ascot weve been told the queen has to be at ascot for the jersey stakes which starts at 2 30 p. M. Shell be rushing from her work to the queens favorite place, the ggs after that fantastic. You stay in the shade there. Make sure you join us at 12 30 Central European time for coverage of the queens speech coming up on the show, the end of the road. Uber Ceo Travis Kalanick has resigned after pressure from shareholders more on that after a short break right here on street signs. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Livestreat the airport. E sport, binge dvrd shows, while painting your toes. On demand laughs, during long bubble baths. Tv on every screen is awesome. The allnew Xfinity Stream app. All your tv at home. The most on demand, your entire dvr, top networks, and live sports on the go. Included with xfinity tv. Xfinity the future of awesome. Welcome back to street signs. Ubers Ceo Travis Kalanick has stepped down a statement from ubers board of directors said kalanicks Bold Decision to step down was a sign of his devotion and love forever the compan for the company. Pressure mounted on the uber founder from five of the major investor s to resign immediately. Despite these scandals, uber remains one of the most highly anticipated ipos in the tech space. Geoff spoke to kalanick about the potential listing last year. But he would not die vvulge when the company would pull the trigger. We have to ultimately find liquidity for all shareholders but im going to make sure it happens as late as possible. Two years three years . Five years ten years . Ill keep you posted. I have no idea another ipo that has persistently gotten Market Attention is saudi aramco. We asked if havent volatility in the oil market could affect the mammoth listing and lead to the worlds first ever trillion Dollar Company he said the complexity of the deal will have a greater impact than the price of crude. Irrespective of the falling price of oil, this is a huge company. It has diverse interests upstream and downstream. Theres a lot of preparation that needs to go on which is why they hired a bunch of advisers, theres a bunch of technical things they need to achieve to figure out how to list domestically and internationally. Our expectation is that will take them through the balance of the year its a transaction that will occur next year. Irish bank has narrowed its ipo price rank to 4. 60 euros books were subscribed multiple times within the initial range trading is set to start friday Garrett Mccartney joins us from ubs. Nice to see you. Good morning. Lets start off, you can talk about saudi aramco its tricky to talk about it. Well talk in the generic how are things things are busy this is always going to be a busy period in the run up to summer i think its around 14 live ipos in europe at the moment due to price in coming weeks. In terms of where the drivers are coming from, im delighted to hear its not necessarily coming from the traditional reliance, from private equity and mixed expectations of the price they can get its coming from elsewhere the community has had a number of exits they delivered over the last few years. That was a restocking of the pipeline, then normalization were coming to the end of this grun of Portfolio Companies coming out of sponsors what youre seeing in todays market, whether its governments or corporates or families using the ipo route to exit. Has it got any relevance that the markets are trading at record levels . Were down again today looking at the dax coming down 0. 8 is that a coincidence or does that leave another nice reason why its okay to do this i think ipos are cyclical i think theres some factors that are helpful one would be for the selling shareholders, reference multiples you get against the peer set are higher. That becomes quite compelling. Secondly given underlying equity values, youre seeing good portfolio inflows from Portfolio Managers and ipos, thats gently a good place to put hem. I have no doubt when i see there is oversubscribing people are buying back shares left, right and center you have companies bought on the market by people who have cash to burn. Im slightly cynical sometimes about the massive overdemand, shall we say am i right to still be skeptical about some of these ipos two things. One its telling you theres a shortage of compelling narratives in the secondary market for people to put money into so this is getting to a tired bull market. Generally ipos have a story attached to them so that makes them interesting and the dollar cash call for the market as a whole is not that great. If a big ipo in europe is 1 billion, 2 billion, thats a relatively small transaction, so you can see this honey pot effect, when they go well you get oversupply youve seen this before, youve seen my moderately cynical questions before as well given the fact you think its a robust, okay environment if you had to Say Something could upset the apple cart what would those factors be a couple things one is the macro back drop weve been amazing if you take the Geopolitical Uncertainty year to date, the vix index is at historic lows. For me the vix and volatility in general is the biggest friend or foe for the ipo market as a whole. I dont know what to make of the vix. Im a student of volatility for the better part of three decades. I dont know what to make of it. I speak to practitioners who say we cant own this stuff but we cant short it is it a reliable indicator . Theres two things. Youre right theres Structural Dynamics around the vix which led to this unprecedented low valuation that youre seeing in terms of trading around 14 on the vix but i think secondly, were seeing a liquidity story investors have cash. If you look at the european context, International Investors are underweight europe were seeing that flow of money back into europe which is supportive 15 seconds left i was cynical over Something Like snap, but i like good solid companies where you can see visibility are we getting more snap companies coming the snap and the technology phenomenon is a u. S. Fa nom nom. Phenomenon thank you for joining us. World markets live is on have a look at it, then come back and watch street signs. Well be back on cnbc. Welcome to street signs im steve hedge wisedgwick these are your headlines Oil Prices Falling further into bear market territory dragging Energy Stocks and the rest of the European Equity market lower. Chinas great wait is over mainland shares gaining access to the msci index sending the blue chip stocks to 1 1 2 year highs. The queen is due to open parliament in two hours, but uk government hanging in the balance as a deal between theresa mays conservatives and the Northern Irish dup remains in limbo were in complete unknown territory. Theyre trying to sew up the deal with a Smaller Party not telling us what that deal is that Smaller Party today, so they cant do the deal yet because the governing party is in chaos. Across europe they must be thinking what a mess Travis Kalanick steps down as the uber chief executive. That amid a shareholder revolt all right. Very interesting movements on a couple of these pairs. Rile ill go straight over and look at cable its been trading 1. 28 the last month or so, but its been dovish from mr. Carney i think in yesterdays delayed Mansion House speech, we are teetering on a 1. 25 handle as i speak. 1. 2598 losing another big figure as we speak. Aussie tldollar losing ground lets look at European Equity markets. Again, you heard me. This time yesterday i said i dont get this Energy Falling aggressively yet the rest of the market looks robust. We saw a down tick i wouldnt go too mad about the dow down tick. European markets are taking this signal were talking about lofty evaluations a trailing ftse. Im seeing various estimates, 25, 28 times as well these are high evaluations especially when you have under pressure sectors such as House Builders xetra dax down 0. 7 of 1 it was only a day or so ago we were hitting new record levels should we have a look at u. S. Futures. Down tick on the major u. S. Indices. Big news, House Speaker paul ryan says the United States will not reach its 3 gdp growth target without an overhaul of the tax system now speaking to cnbc, ryan said the gop was aiming to pass tax reforms by the end of the year he also refused to rule out a cut in Corporation Tax to the trump administrations desired rate of 15 . Id love it if we could get the numbers to make it work. Do you think you can . I think its possible well spend all summer long drafting and getting what we call scores, getting the numbers to work. We being the house tax writers, senate tax writers and the white house and Treasury Department to work we want to get the rates as low as we can. Get to a territorial system. Theyre the basics we all agree on thats what were working off now so we can stick the landing this fall. We believe you cant get to 3 Growth Without this. Republican is the winner in a high stakes u. S. Congressional race seen as a measure of President Trumps standing with voters karen handel defeated jon ossoff who ran a surprisingly strong race both sides pouring 50 million into the race. The special election was held to fill the seat of tom price who left to become president Trumps HealthSecretary Health a key issue here. U. S. Senate republicans say theyll reveal their plan to overhaul healthcare on thursday. Its the latest development in the long road to owe peeling obow repealing obamacare. There have been months of fraught negotiations since the inauguration on january 20th was it only january 20th fo feels longer House Republicans revealed a plan on march 6th but it was eventually withdrawn a revised bill passed the house on may 4th now the senate faces a july 4th deadline to fulfill the healthcare plan. Tracie potts has been following all of this in washington. Always great to see you. Tell us how this will play out so, its interesting. Its going to start with sort of a slow leak of the details of this the draft will come out this week after democrats and republicans, both sides complained they were being kept in the dark that a small group of leaders, not even the ones identified, were writing this bill over the next 24 hours we will get the details. As they say, the devil is in the details. Lawmakers want to know what is this going to cost theyve been giving parts of it chunk by chunk to the congressional budget office. Unlike the house, the senate has to get those numbers before they vote they want to know what the impact will be to americans wallets, to premiums will they go up or down. Thats part of the cbo score that budget estimate the really big part of this that has divided lawmakers is what about medicaid the government backed insurance for poor americans, for working families, it was expanded under obamacare, including in some very republican states and now lawmakers want to scale it back. But the question is how quickly or how slowly will they scale it back and will states be able to pick up whats left over . Some states, big ones like california say they wont be able to because they have millions of people using this insurance. Those are some key issues that the detail also roll out on starting today tracie potts, thank you very much for that. We have a great guest, mark bertollini, ceo of aetna you are one of the biggest Healthcare Providers out there how does this as a back drop to your business affect you i think obamacare has been tough for you to make money n where to price your product you are desperate for clarity, you have two, three proposals going forward. You dont know no what the republicans are offering from the senate you just want clarity, dont you . For 18 we have withdrawn from the aca product it will be zero percent of our revenue and earnings we are waiting for clarity to reenter the market thats a dramatic decision to say we cant get involved in this. We were the largest provider when we initially started. We about broke even, a couple hundred Million Dollar loss. Last year we lost 450 million with a projection of 900 million this year. We had to stop the bleeding and pull back. What are lobbyists saying to politicians. The bottom line is that the senate cannot repeal obamacare the senate, all they can do is fix it i think once we get to a solution where we say we want to fix it, then i think we get bipartisan support what we have is a piece of legislation, big piece of social legislation that in the history of the United States every big piece of social legislation has been bipartisan and tweaked every yeear this was partisan and for seven years we have not touched it until we agree we need to fix it and we get the democrats involved, this thing will not get fixed. I like the idea of bipartisanship, i like it in the United Kingdom as well but the relationship is poisonous between some republicans and other republicans. Let alone republicans and democrats. I hear you its kind of we are the world type message but that wont happen in d. C. , is it . Something has to break sooner or ladder. The Medicaid Expansion will continue in some form. It will be a sevenyear decline of or a sevenyear change in funding that the republicans are proposi proposing. But that cant all get passed unless we fix the aca. Weve seen one president invest so much Political Capital into his healthcare package, mr. Obama as well. It burns up so much Political Capital he could have used el wer and elsewhere. Is mr. Trump ready to do the same the real fix for the economy is tax reform which has not been touched since the Reagan Administration and infrastructure investment. You cant get to those until you deal with health care. We put the flag up say lets fix t move on, get to tax reform and then infrastructure. I think we have a great way of moving the economy forward the ambitions of mr. Ryan and other republicans, the ambition of the white house, they dont seem aligned at the moment right it isnt to the outside observer. But somebody sooner or later will have to step in and say done lets move on, change the language, get some people to fix this this is a tough back drop for you, you pulled your product from 2018. Lets talk about what you are doing at the moment. When i put in aetna, i put in news flow, you are upsetting a lot of people in hartford as well youre moving hq out of hartford, connecticut . We are. We have not told anybody where yet. But it will be an investment in attracting different kinds of people into our organization as we have to move away from being just an Insurance Company to actually impacting the Underlying Health of the population so that requires younger people, technologists, innovation, that quite frankly im sure the good people in hartford, connecticut are upset about that, but youre saying theres other parts of america you could move to silicon valley, massachusetts . Where are we talking we have opened up a Technology Center in massachusetts. Well continue to add people there. We have a presence in silicon valley, in denver, salt lake, in texas, austin, texas places where people want to hang out. A big presence in florida. The broader business, you want to move beyond just being a healthcare provider. What are the key avenues for you in ast century which is moving quickly its finding a need and meeting it through sources, not necessarily owning that sourcing but providing for it in the community. More in the home, more in the community, less inside hospitals and doctors offices. When i look at the big drivers in your community, one year 24 rise. But you did pull out of the humana acquisition people are look going, the yield is 1. 3 . Maybe something on that front. Maybe you can use the money for another acquisition. Whats the key priority for you . If you look at walking away from a 34 billion acquisition, paying a breakup fee that hurts. Hurts, but the stock sup ip 29 a share since that happened. So horizontal integration is dea dead watch this space. Really nice speaking to you. I know youre here to see overseas investors as well hope that goes well. Thank you, steve. This is huge news. Major political shakeup. Saudi Arabias King Salman relieved his nephew, muhammad bin nayef as crown prince. The king is replacing him with we know who, his son, 31yearold mohammed bin salman. The saudi stock market surged on that news. For more on that story, head to web w cnbc. Com for full analysis. Amazon strikes again how the latest service will effect warwardrobe thats after the break whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if there was a single site where you could find the right hotel for you at the best price . There is. Because tripadvisor now compares prices from over 200 booking sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Welcome back to street signs. Whitbread reported a near 3 like for like sales in the first quarter. It opens premiere inns hotel and totals rose 7 over the period that was in line for expectations costs for like for likes were up 1. 1 whitbread said it had made a good start to the year and a planned hotel and quaffity sh c openings remained on track it is one of the top two gainers in the stoxx 600 the threemonth move, moved up 3 most of that was today it has been trading on a discount as well, 14 times sects 21 times the top of this stock was not before brexit. I thought that would be the top for a lot of the domestically focused stock. The top of the stock was june 12th when it hit 52 pounds it had a huge down tick from those highs. Dividend yields i think is underwhelming. 2. 5 dividend yield for this 7. 1 billion pound company. Strong buyers 3, buyers 8, holders 9. They cant work out how brexit will affect the company. Putting coffee shops everywhere. Holders 9, sellers 2, short sellers 2 as well. They are talking about good occupancy over the premiere inns hotel. I want to look at barclay homes. If theres one thing british people are obsessed w its the house price market barclays is an interesting place. It is posting a better than expected 53 increase. 53 increase in pretax profits for the full year. They are on track to deliver 3 billion pounds of pretax profit in the next four years but its warned that brexit and tax hikes on the highend property could harm the sector nearterm. I think its apolitical to say its seen as a golden goose, the highend Property Market for increased stamp duties theyve been putting up the stamp duty, they get more money from that now than ever. Billions and billions. One day that will stop because there will be less activity. Really volatile stock. 20 pounds is the low of the last 52 weeks the last 52 weeks just about now encompasses the brexit period. Brexit the 23rd. Market moved aggressively on the 24th of june why do i think this is ab interean Interesting Company . The average selling price of a house is 220,000 to 230,000 pounds but this company is selling houses at 675,000 pounds this is topend stuff. What do you reckon happened to the asp, the average selling price . Overall house prices up 3 , 4 5 , they had an asp increase of 31 . Thats amazing for margin and explains that profit figure. It dropped out of the ftse last year, so perhaps less tracking activity we spend a lot of time talking about prakitracking activity wie msci today as well im telling you it trades at a major discount this whole sector. This trades at 1 2 ti7 1 2 time the sector 9 tilemes, the ftse, double that. One of the top gainers in the stoxx 600. Ford, this is interesting. Ford says it will move production of its next generation small car to china. Ford had planned to build its focus model in mexico but canceled plans for a plant there after facing criticism of course from President Trump the production shift is set for 2019 and will save ford 500 million bucks. Amazon has upped its Apparel Services launching prime wardrobe the test program will allow shoppers to order items without paying for them up front shoppers can try them on at home and decide which to return the try before you buy feature is part of the expanding amazon prime Shopping Service alibaba has weighed in on amazons 13 13. 7 billion purchae of whole foods the vice chair spoke to cnbc were not surprised at all. Great minds think alike. We think thats a great move for them to get into, the fresh foods category you do. Which we have been executing on since last year wlifrnlgts do you thi why do you think its a great move groceries is a High Frequency use case, it brings a lot of Customer Loyalty to the platform it is also in high demand, in todays Consumer Market in china people are looking for high quality foods. Jack ma is in detroit making a high profile pitch to small american businesses. He is hosting gateway 17, aiming to convince Smaller Enterprises to work with the ecommerce giant in order to reach chinese consumers. I thought we have amazon over here, bezos, ma over there lets have a ma bezos off with arjun cappal kharpal the markets are very different. But they will rub up against each other at some point alibaba is making sure International Businesses can sell into china. Amazon not in china. Lets look at alibaba the shares, twoyear performance up 61. 4 cracking International Markets the way that happens, like i said, alibaba have a Huge Consumer base in china the problem is businesses in the west find it difficult to send to china alibaba. Com is a way to jump into china. Cloud battle that sounds like they do want to go into amazons turf jack ma made a huge expansion into the cloud service, they expanded in the u. S. And other parts of the world revenues in the last fiscal year, up 121 p 1121 in the clo division you have done fin tech, financial services, its not that banks have to worry about other banks, but this lot, that lot, the rest of the tech sector i came back from china, i saw alibaba. Its the one stop shop for payments out there, loans, Everything Else you can think of you go into a shop, its ali pay. Sometimes they dont even take credit cards why is amazon, lets look at these shares twoyear performance, 128 higher double alibaba come this way. Go that side wherever you like. Why is retail domination worth 100 whatever times to thr company . You say amazon is an ecommerce platform, but its the industries theyre jumping into, food, fashion, cars. Theres no place thats safe from amazons claws at the moment so many of the places they can expand into. This is just the beginning ive been using this whaing m for a long while what is aws for our viewers. Amazon web services, huge growth thats why investors are putting such potential value into amazon and shares rallying. Exploration of new area like finance. Think will butt heads. When amazon starts doing loans, they have their own Payment Services its a huge potential for the company. Well leave it there. Thank you very much for joining us good to get you on set we had a few problems earlier on you stay there ill look at whats trending in the tech world as well lets look i should say that jack ma will speak exclusively to cnbc coming up at 15 00 Central European time all right. Lets bring you up to speed now with the top stories trending across the web cnbcs social team scouring facebook and twitter to aggregate the top stories. Republican karen handel is the winner of the special Congressional Election in georgia. The race drew attention for being the most expensive house race ever. With campaigns and outside groups combining to spend over 50 million bucks the republican win is seen as good news for the president as they frame the contest as a referendum on the president cy. The state department is misysel mystified about the cutting off of qatar many thought the administration was quite keen on this move. We will be back same time same place tomorrow but for now, im steve sedgwick, Worldwide Exchange is coming up next on cnbc. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Good morning were following three major stories breaking overnight first, uber Ceo Travis Kalanick is out after Share Holders stage a revolt were live with the man who broke that story. A royal shakeup. Saudi arabia names a new crown prince in a surprise power shift. While the fwloebl markets are ta Global Markets are taking notice. And the green light for china and msci its the first day of summer, Worldwide Exchange begins right now