The firm cites challenges in its crop science and Consumer Health divisions. A hunger for going public. Food Takeaway Service delivery hero rises in its frankfurt stock market debut well speak live to the ceo, Niklas Ostberg on how the company will navigate a crowded marketplace. Good morning its friday. A quick look at the markets in europe were modestly higher to the tune of 1 we are set to end the month of june with the biggest monthly loss in one year off 2 for the stoxx 600 in june following four months of gains maybe all these worries about tightening weve seen. When it comes to the sectors or the markets, the ftse 100 is off by 0. 3 . The xetra dax is down 0. 1 the cac c40 is up by 0. 3 lets get to our guest, mike bell from jpmorgan do you think theres too much concern about some of the tightening by banks . I think theres been a bit not enough focus on the ecb statement and what mario draghi was saying i think they will taper. What he was emphasizing is two thin things firstly core inflation is not giving a proper read on whats happening to underlying inflationary pressures suggesting that actually inflationary pressures are higher than core inflation suggests also suggesting and trying to turn the market to look at a u6 equivalent measure of unemployment they point out that thats much higher than the headline unemployment level you would expect, 8 , but he also pointed out that during expansions you see that gap between u6 and headline unemployment, which is whats happening if you look back to the lowest point in 2007 and 2008, it was only at 15 . Theres another 3 for ma that me measure to close before you have tapering if you saw a dramatic increase in yields that would be a problem. I think it will be a gradual increase, which is positive for financials, positive for cyclicals, you can would be a problem for low volatility sectors. Maybe the first shock is the deepest. Maybe we need to get it out of the system and be aware, hey, this easing Monetary Policy wont be here forever. Were aware of the fact its happening in the u. S do you think the european markets can continue their outperformance weve seen the first half of the year i think the key thing is equity markets never go up in a straight line. Youll see a pullback at some point over the summer. It should be relatively small. Id be surprised to see a pullback of 5 , 7 or so from there you could see european equities higher,equiti year high. I think you will get strong Earnings Growth come through, the continuation of what weve seen in the First Quarter. That should drive equities higher lets take a step back from europe want to show you what happened in the u. S. Equity markets in the first half of this year. The dow up by 7. the s p 500 surging by 8 . The nasdaq up by 5 . That belies some volatility and selloff weve seen the last couple of weeks. I want to show you the sectors in the u. S. As well. Energy was really the worst performer, off by 14 given the corresponding fall in oil prices, despite the extension of the opec agreement the s p tech sector did well, despite the recent selloff, up by 16. 5 financials also doing fairly well, up by 6 a quick comment from you on the u. S. Markets what do we do in the second half of the year . Do we rotate out of some of the winners in the first half . Weve seen that be underway the last few weeks when it comes to tech i think will you see a rotation youll see a rotation out of some of those expensive stocks in the u. S its not the whole of tech, but you look in the tech sector there are some stocks trading with crazy multiples some of it is fine you will see a rotation out of the low volatility defensive stocks, which look really quite expensive in the u. S. , and into more value parts of the market, particularly financials which could should do well we heard from the co of Morgan Stanley overnight, he said finally theres volatility back in the markets. I guess some volatility is good, thats what keeps us trading, that keeps us busy too much volatility is usually bad for markets because it speaks investors are we at the right type of volatility its relativity low its healthy to have volatility over the summer. Profit taking, but historically its been almost impossible to try to trade that and make money out of it. Our view is to look through that potential shortterm increase over potential volatility in the summer and stick with our 12 to 18month view that earnings will keep growing the Global Economy remains healthy, the Recession Risk in 2017 and 2018 is low, and just remain overweight equities i would say within the u. S. We probably now are favoring nonu. S. Equities, places like europe in particular, but we still think u. S. Equities have upside yet you say a correction is due for some pockets in the market you mentioned low volatilitvola low beta equities. Where would you find them . Where would you be wary of the defensive sectors, the bond proxy type stocks consumer staples, historically the relationship has been clear, when Government Bond yields, the tenyear yield has fallen you have seen outperformance of those consumer staple stocks, and underperformance of financials, as Government Bond yields start to rise, which is what we expect over the second half of the year, you see a rotation out of those defensive stocks and into things like financials thats what we would expect to play out over the second half. All right i know we have great charts when it comes to the emerging Market Performance in the first half. Very few people thought with fed tightening the outperformance would be so amazing. Im sure we can bring this up. You say the quality stocks in emerging markets have never bee more expensive is this the time to get out . Within the emerging markets we are still relatively positive on certain parts of em those defensive stocks in the em look expensive we would have very much a preference for value stocks in emerging markets markets where the earnings have been beaten up over the last five years, theres the potential for an earnings rebound and youre buying on cheap evaluations, so thinking places like russia, brazil, as opposed to the more expensive markets and avoiding some expensive defensive stocks mike, thank you very much for that mike bell, Global Market strategist from jpmorgan Asset Management wish you and your clients a successful second half of the year blue apron shares rose by 1 in what was a lackluster market debut by the u. S. Meal kit provider the ipo priced lower than expected ahead of the listing after amazons takeover of whole foods spooked investors. Other concerns include blue aprons lack of profitability and high marketing costs now, delivery hero has arrived on the market. Shares have risen in the frankfurt debut this morning as the takeaway startup is on track to raise 1 billion euros were up 2. 2 at 2605. Niklas ostberg joins us from frankfurt. Pleasure speaking with you con grade lagratulations on that hour of start. What do you think is the allure of your company . Thank you i think theyve been a good company. I think weve built a great service. Obviously were proud. Im glad we had a good start this is really about the longterm, about the next 10, 15 years to build a very good service. I think were off to a good start. Really, this is longterm. And i think its a fantastic day for us delivery hero is a fantastic day for investors and for the whole European Tech scene. Its also remarkable given that the blue apron ipo yesterday saw less demand than initially expected the appetite was quite low it raised a third less than it hoped. Why do you think your story and the interest in your company is so different from blue apron its hard to compare it to another company. The investors looking into us were excited about the strength of the business, the strength of the growth they were having some profitability in the markets, also proof of concept. People are excited in the end we were the best blue chip investors came on board im super proud and super happy. This is longterm again. Some concerns around blue apron and ill get away from that company in a second, but they were high marketing costs and the lack of profitability. To be honest, some investors in your company may have the same worries given that youre not profitable yet and your marketing costs are extremely high at what point do you think you will be profitable at what point do you think the spend will come down i think well continue to go for growth we improved our profitability a lot as we have grown for scale we see customers stick with us for years and years and years and order more and more frequently i think thats what investors like thats also what i like. Also that makes the marketing very clear and trackable and the return were getting from it i think every investor has been able to see this everyone looks deep into it will be very long, long shareholders of us. Im happy for having them. Yeah. Competition in the space is really intense this is becoming a hugely crowded marketplace. You have three, four other competitors which have gone public and done well you have a global footprint, yet i just wonder to what extent are you able to go up and the likes of uber and amazon if they do come into your space and want to have a big share of the pie. Its a large space. We do everything we can to build the best possible service. And with this ipo we can further develop this service to be a world leading zf service of onl food ordering. As long as we have that service in the market, best product in the market, i dont think we have to worry a lot. We are already now a leader in 35 local markets i think we can truly transform the industry its a big industry. I think it stands very strong. What are you planning to do with the proceeds of this ipo as you said youre well established in many Global Markets, youre active in more than 40 countries around the world. In many places you have a market leading position where else do you want to invest we will continue to strengthen our business in those markets, making sure that we build a service that matters what we call amazing takeaway experience make sure that end to end we build a good service and we will continue to invest heavily to build that service. And we want to make sure we have the capital necessary to do so we continue to do marketing, making sure we get a lot of customers on the platform. So far theres still many people who havent tried our service. Well try to get them there, and of course the capital will be used for that. How do you plan to boost margins . I think thats one of the caveats some of the criticism coming from some of the analysts, your margins currently are at 11 somewhat lower than some competitors. What can you do . Do you want to raise fees . Do you want to, you know, own the delivery chain what are you planning . We are only interested in building a good service. If that means we have to add logistics, we add logistics. If we invest more in technology, we invest more in technology for us, its investing in better service. I think in many cases theyre doing a fantastic job delivering food to our customers. I continue to believe this is mainly a marketplace business. But if we require to build out logistics, we build out logistics. We do what it takes to build the best service in the market how much influence is there from some of the biggest stakeholders and shareholders. Nasspar took stake, how much say do they have over where youre headed as a company . We listen to all our shareholders we are there for them. We listen to all of them i think they have good advice. I think both have proven to be value addtive to us. We are grateful for them, but also grateful for other share holds that we have in the company. We take a lot of advice, input, but we drive the business. We have to be the one building it we are also the one closest to the business, in the end they trust us to make those decisions. Thank you very much for that. Congratulations on that successful ipo a big day for European Tech companies. Thank you very much, nikla Niklas Ostberg, ceo of delivery hero let us know your thoughts about the delivery services, whether youre on them, use them, what you think about uber and amazon crowding this space. Follow us on twitter streetsignseurope cnbc and tweet me directly, carolincnbc. Well be back after a twominute break. Hey youve gotta see this. Cmon. No. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Welcome back bay ea bayer shares are trading lower the firm said it expected negative impacts from its brazilian crop sigh yciences division shares are off 4. 3 . Nike shares soared more than 7 in afterhours trading after it announced a deal. A deal between amazon and nike it also reported Fourth Quarter profit and sales that beat expectations nikes Ceo Mark Parker said they were looking to improve the Consumer Experience on amazon by improving the way the brand was presented. Old mutual Asset Management peter bain is stepping down. Hes given up his roles as president , ceo effective immediately. James richie will serve as interim ceo. This week has been about all central bankers speak. From mark carneys likely removal of stimulus to Mario Draghis reflation replacing deflation. Earlier we spoke to james bullard, co and president of the st. Louis Federal Reserve bank, he argued the fed has been too hawkish in its recent communications ive got a flat rate path compared to the rest of the committee. My point has been that reaction to the march Rate Decision and then the follow up in june has not been that great in Global Financial markets, Inflation Expectations are down according to Market Measures the tenyear yield dripped down to, you know, 2. 15, 2. 10 now its come back up in the last couple of days. We can talk about that but i think that the committee has been too hawkish for the data during the last 90 days or so now whether that is suggesting now, i dont know, but thats something we could talk about further. So, you are not a Voting Member this year im not you were in 2016. Yeah. If you were a Voting Member you would be voting not for at hike this year until we see something inflationary in the data. The last four reports have been weak in the u. S the narrative of the committee has been inflation is creeping back to 2 , you can see that in the data, but just this spring thats not been the case its gone the other direction. Hard to tell if thats noise or part of a broader trend. I think some confusion around your comments have come from the fact that you were one of the more vocal proponents for an early rate hike. When you were calling for that to happen, most pegged you as a hawk at the fed. Your comments have become more dovish in their tilt right now on rates im the most dovish member of the committee. Starting last year, a speech here in london, i went to this regime based idea of how to think of the u. S. Economy. You should quit thinking the u. S. Economys growth is around the corner well grow 3 , inflation will take off i dont think thats the right way to look at it. The better way to look at it is growth will be around 2 inflation will be low. Theres not much inflation pressure therefore the kirnt levcurrent f rates is appropriate for the u. S. Economy its a different view. Lets get back to mike bell from jpmorgan Asset Management im scratching my head here. You say you expect the tenyear treasury yields to rise between 2. 5 to 3 by the end of the year i heard this many times over the last two years its simply never happened why should it happen this year if were closer to 2. 1 or 2. 2 . Our view is the labor markete u. S. , it starts to look tight. We think the fed believe and we agree with them that that will eventually lead to a pick up in wage growth over the next couple of years therefore given the full employment, they should be normalizing Monetary Policy. If they start to reduce the Balance Sheet as they said they are going to, we think that could be announced in september. I expect it to be announced by the end of the year, combined with the fact theyll put rates up at about the pace theyre saying, nevertheless faster than the market expects that should lead to rising bond yields the beginning of this year investors went in heavily positioned betting that yields would rise further, having already risen dramatically so you saw an unwind of that positioning as inflation data disappointed now that is broadly neutral that provides an environment in which the sort of headwinds for bond yields going higher are much lower. Then other pundits tell me on this show, i believe yesterday, someone telling me traders dont care about what the fed is doing, they care about whether we get the Corporate Tax reform, infrastructure, investment from donald trump does the fed still matter . I think the fed is hugely important. But i agree with you what the markets have done is priced out any hope of fiscal stimulus. Thats very much an upside risk. Our view is that you see bond yields go higher, equities go higher even without any fiscal still plus if they then deliver fiscal stimulus which is not priced in, that would put further upward pressure on bond yields and drive earnings and equities higher thats the story of the first half of this year, pricing out those expectations for fiscal stimulus, will it happen we dont know even without it, earnings will move higher. If you look at 2018 earnings forecasts now, theyre lower than where they were mike before we wrap this up, whats your trade . Underweight Government Bonds long credit . We prefer credit to Government Bonds but we are also are aware that credit spreads have tightened quite a lot. So were reducing an overweight position to a more neutral position in credit we prefer it to Government Bonds but equity to credit basically youre at a position where spreads will probably go sideways, you will just earn the carrier as opposed to seeing much further spread tightening thank you very much for that mike bell, Global Market strategist from jpmorgan Asset Management check out World Markets live, our blog which runs throughout the european trading day well be back after isth welcome to street signs. Im carolin roth these are your headlines stick to the data. St. Louis fed president james. Stick to the data bayers stock drops as it washes of lower profits. The firm cites challenges in its crop science and Consumer Health divisions. A hunger for going public. Food Takeaway Service delivery hero rises in its frankfurt stock market debut the companys ceo tells this program his company could be a Market Leader in food delivery we could further develop this service or being a leader of food delivery. As long as we have the best service in the market, best price, we dont have to worry a lo lot. Lets get straight to data. Im looking at the third and final print for the First Quarter gdp numbers out of the uk, thats unchanged from the previous estimate, 2 year on year, thats unchanged as well little reaction in cable want to show you European Equity markets. Were pretty much split. Ftse 100 is off by 0. 25 the xetra dax is trading higher. The cac 40 is up 0. 3 . We will end june with the biggest monthly loss in one year off more than 2 for the month of june when it comes to stoxx 600, maybe its the worries about the tightening by the central banks. When it comes to the fx markets, heres the picture youll see the euro is trending lower against the u. S. Dollar at 114. 03 expecting the eurozone flash Inflation Numbers in about a half hours time a print of 1. 2 . That would be lower than the previous month and the dollar is a touch lower against the yen. I want to show you again the euro and what its done in the first half of the year the euro had the best quarter against the u. S. Dollar and other currencies since the Third Quarter of 2010. Up by 8. 5 , 1. 1403 at this point. Bayer shares are trading lower after the Company Issued a profit warning the firm said it expected a negative earnings impact from the brazilian Crop Sciences business lets get out to annette who has been covering the story in frankfurt. Did anyone see this coming not really. It is not a big surprise looking at the brazilian economy that the crop science business in brazil was hit by higher stocks. Essentially they couldnt sell enough of their products to clients, and that is one of the big reasons. Remember brazil was hit by the worst recession ever in its history. Just barely came back to growth in the First Quarter of this year so were looking at a onetime hit of 100 million to 400 million euro more precisely what that means for the outlook of bayer well get on yjuly 27th when they pu publish Second Quarter results theyre saying unfavorable currency developments are also affecting the Consumer Health division negatively. We have two of the biggest units of bayer negatively affected by different reasons. So, of course its pharmaceuticals, the biggest unit, then the crop sigh yens business then the Consumer Health business. If the second and third biggest units are negatively affected that explains the wild reaction of the stock price today Going Forward, july 27th is the date when we get more information on what that exactly will mean for the outlook of this year. Perhaps also beyond it for now, of course, bayer is waiting to have their big monsanto takeover cleared. Nothing has changed yet according to reuters they stick to it, so no Material Change here. Back to you. Stick around for a moment i want to talk about the g20 european leaders promised to defend the paris Climate Change agreement in the g20 summit. Angela merkel said europe should show leadership after trumps decision to pull out of the deal the Eu Council President , donald tusk, also said europe should be a Reference Point on the worlds Biggest Challenges merkel hosted a meeting to prepare for the summit in hamburg next week. Annette will be all over that. This is going to be one heck of a summit for Angela Merkel she will meet putin, trump, e erdog erdogan, xi, three of these men she has a difficult relationship with that will be explosive, wont it yes, it is and sh managing the expectations of difficult talks. Yesterday she was saying that were in for very difficult talks here, both when it comes to a clear message against protectionism, a clear message pro multilateralism and what is dear to her heart and now top priority on the agenda, its the Paris Climate Accord or deal while shes calling on everybody else somehow among the g20 nations to unite in favor of these three big goals or three big topics, she is quite realistic that most likely the United States will not be behind any of these three big goals, targets, multilateralism, anti protectionism and the climate accord she at least hopes to get everybody else backing it. It could well be the case that the meetings between trump and also putin, taking place in hamburg as well, the erdogan issue, that could well overshadow the big three themes. But i think shes working on it. She wants to have some success when it comes to climate with that, back to you annette, thank you very much for that the German Parliament has voted to legalize samesex marriage with a strong majority. The vote comes after chancellor Angela Merkel dropped her opposition to the idea allowing christian democrats to vote as they wish rather than follow party lines. The move gives full marital rights to samesex couples and allows them to adopt children. Also the social democrats had been heavily in favor of this move some accuse Angela Merkel of trying to posture ahead of the general election. Deutsche bank is rejecting democrats calls to provide details of president trumps finances the german firms lawyer says privacy rules prevent them from disclosing client information. Max se maxin es Maxine Waters have vowed to follow the money trail. U. S. President donald trump set out a plan he says will create a golden era for u. S. Energy he called for a review of Americas Nuclear power sector and an ease on restrictions on u. S. Energy exports. He says this will increase americas influence abroad we will be dominant we will export american yrg all over the world, all around the glob the globe. These will provide countless jobs for us. Trump met with south korean president moon jaein at the white house. The leaders are expected to discuss several topics including north korea and trade policy and sectors like cars and steel. A revised trump travel ban on people from six muslim majority countries is taking effect after a Supreme Court ruling allowed parts of the ban to come into force Pete Williams has the latest reporter mustafa al hassoon came to maryland two years ago as a refugee to escape the brutal civil war in syria. He had no relatives in the u. S. , so if he tried to come here now hed be blocked by the travel ban going into effect today. It does not make sense to me, how i cannot come to the United States if i dont have a Family Member i need a new places, a new life, like anyone in the world. Reporter for people in the six countries covered by president trumps executive order, the Supreme Court said they can still get a visa to come here if they have a, quote, close familial relationship with someone in the u. S today the administration defined that narrowly as a parent or child including inlaws, a sibling or a spouse. But it does not include fiance, grandparent, aunt or uncle, niece or nephew, cousin or brother or sisterinlaw advocates for immigrants say those distinctions dont make sense. How you get from a motherinlaw and a spouse affirmatively clearly being okay to saying that a fiance or grandparent is not, without any guidance in that direction, is a mystery. Let them see their lawyers reporter the government says dont expect a repeat of the chaotic airport scenes of five months ago because anyone who has a valid visa now will be allowed to board a flight to the u. S. And to enter the country when they arrive tonight Civil Liberties groups say they may go back to court over what counts as close family and what kind of connection refugees must have before they can come here. Pete williams, nbc news, washington. Meantime theresa may has narrowly won her first major test, a parliamentary vote to back her legislative program it includes all conservative mps and northern irelands dup. Coming up, jayz released his new album on tidal well look at how it compares to the competition after this short break. Chances are, the last time you got a home loan, you got robbed. I know i got a loan 20 years ago, and i got robbed. Thats why i started lendingtree the only place you can compare up to 5 real offers side by side, for free. Its like shopping for hotels online, but our average customer can save twenty thousand dollars. At lendingtree, you know youre getting the best deal. So take the power back and come to lendingtree. Com, because at lendingtree when banks compete, you win. Welcome back it is the last trading day of the Second Quarter also the last trading day of the first half of this year. Lets look at some of the best performing stocks on the dow jones. Boeing among them. Up almost 27 . Mcdonalds delivering a solid performance, up almost 25 and apple up by 24 . On to the worst performing stocks on the dow. Verizon stock is off by 17 . Fwshgs e off by 15 . Chevron falling 12 . Some energy names didnt farewell bob pisani looked at the first half performance in the u. S. Were halfway through 2017, everything is up the s p is up 8 long bonds up 7 gold up 8 why doesnt anyone want to sell anything i think the reason is theres a lot of contradictory data confusing to everyone. Gold guys have been rewarded the bond guys think the Economic Data is going to get worse theyve been rewarded. The stock guys who think the earnings have been included, theyve been right as well there are other contradictions out there. Despite the uncertainty, volatility is at historic lows then the trump trade and the fed. We knows there some premium in the market for the trump trade of lower taxes we dont know how big it is but the main platform of lower taxes is further down the road but the markets have been calm and stable as for the fed, it faces the tricky task of talking about higher rate while trying to reduce the Balance Sheet all it means is less liquidity so my question is shouldnt there be a fear of a lack of liquidity now as there was joy and happiness when the fed was increasing liquidity a few years ago. But its not there its unlikely everyone will keep buying stocks, bonds and gold. Which asset class will blink first . Goldman thinks everyone might blink. In a note they did yesterday they raised the 2017 price on the s p 500 to 2400. They were on 2300. The s p is essentially at 2400 they believe higher Interest Rates are going to keep the markets in check stocks and bonds may both dip a bit. Everyone is entrenched in their positions, and no one feels compelled to sell, at least not yet. Im bob pisani, cnbc business news, new york. In an interview with cnbc, the chairman of Morgan Stanley said bank stocks should benefit from high rates and less regulation Going Forward step back for a minute and here we are eight, nine years from the financial crisis. The capital levels, the level of liquidity, the change in leverage ratios, has been historic everybody should declare a little victory here. The regulators have got the Capital Position of the banks into an incredibly strong position in this country not everywhere in the world, but this country what you saw was 34 banks came through. Yes, they passed. Thats a great testament that the banks are sufficiently capitalized. With that came in many cases significant increases in din dends and buybacks very healthy dynamic do the banks represent good value . We increased our dividend again. A number of banks did. The yield on these stocks is around 2 . The yield alone, and then theyre trading in many cases still at discount to book. Theres a lot of talk about the potential for deregulation even aside from deregulation, a lot of bullish Bank Investors will make the case that its just the notion of a lighter touch when it comes to enforcement that could really help the banks do you feel under this administration the handcuffs are off, so to speak, that youre in a much more favorable environment for your industry . Nobody wants handcuffs to be truly off. The last thing anybody wants to do and certainly any of my peers would recommend is that we move back to the deregulation that we had prior to the financial crisis that did not end well. Weve had a painful decade of rebuilding the banks capital on that on the other hand, eight, nine years of continuous regulation, supplemental leverage ratio, Tier One Capital ratios, and i could go on forever, theres been a lot absorb, lets consume, take a pause now. And there are clearly some areas that need to be dialed back a bit. On the point of slr, and lcr, liquidity coverage ratio, there has been talk among the Administration Officials easing up on those two ratios in particular, and secretary mnuchin said easing up on lcr could unleash or free billions if not trillions of dollars in liquidity. How could that impact Morgan Stanley in the Banking Industry . I think its bullish for the banks, to be honest. If you look at just take the supplemental leverage ratio, if you look at the securities held on the Balance Sheet, theyre not risky securities this is not what we should be protecting against we should be protecting against the risky assets i think some of the adjustments that came out of the white paper from treasury, they make good common sense and other regulators and leaders around the world have been talking about this listen, the u. S. Economy is recovering the banks are extremely well capitalized. We now need to take some of that capital to help grow and accelerate Economic Growth in this country and grow jobs. What would Morgan Stanley do if that happens . Im also curious about the impact you see on the system theres some argument if you free up the billions if not trillions of dollars in liquidity, it could have an offsetting impact to fed tightening on Monetary Policy. I honestly dont think theres going to be a dramatic shift. This will happen very gradually. There will be a reassessment of some of the regulatory rules which is coming. Certainly we would not advocate throwing out dodd frank and starting again there is sensible adjustments. This is going to take place over a measured period of time. I dont see a flood of new liquidity coming into the market. All right lets talk about something completely different rapp eper yeah eper jay zs nl on tidal it has battled spotify and apple music. Tidals tie up with sprint is seen as a bid to develop its own distribution lets talk about this with zach fuller and Arjun Kharpal is around the tedesk with us spotify has 140 million subscribers, apple music, 27 million. Tidal less than 3 million. Whats the rational for releasing your album exclusively on tidal other than the fact you coown it . With jay zs album he knows this will be his most engaged audience, in contrast to other strategies, windowing we saw last year. We saw kanye, beyonce, and frank oceans releases, those were more about embellishing the streaming service. In this instance, jayz knows his most engaged fans will be on the streaming platform for me, thats why i believe hes doing this. Based on some reports im reading this will only be exclusive on title forgh tidal , then he will release it on apple music. Is he getting the best of both worlds because you gets a deal with sprint and tidal, then he can still reach the masses, make it to number one because he goes on the other streaming devices i would say mainly the reason why they do this, obviously it creates an opportunity for creating publicity around this thats the reason were talking about this again, i see this more for artistic reasons jayz knows this is where his hard core contingent will be he wants to serve those people first. Does this move the needle at all on subscriber numbers for title . Like carolyn mentioned, theyre way behind spotify, apple music. Is this a way to boost numbers on the platform or no Material Impact personally i cant see that i think the if youre a jayz fan and wanted to support his work, you would already be on the service. I dont think this is about bringing more subscribers over is tidal remaining a Niche Service in terms of the broader music streaming landscape . Will it be dominated by the likes of spotify and apple music . Its numbers still pale in comparison to spotify, apple music. Yeah, it does remain niche it has a part to play. Obviously it offers more high fidelity streaming service yeah, it definitely has a part to play. Sdfrnl does that mean record labels are dead in the past they would do the marketing, the fanfare around a record release, now in the case of jayz its sprint, used to be samsung, his own production company. They dont need the record labels anymore or is that really just specific to mega, mega stars like jayz certainly not their roles have changed we have seen a huge shift in behavior of streaming services which means people are consuming through play lists as opposed to albums the role of the Record Company comes seeding which tracks into which play making sure their artists have the biggest streaming. You look at apple and what theyre doing, investing in video services, buying original shows. Part of the 200 million sprint invested will be used for tidal as well. How much does new content play a part in the streaming Services Video is eating the world already. We have seen spotify invest heavily in video content youtube doing their own original content. Definitely see theres no reason why tidal wouldnt choose to go more into video content. Is there a reason why spotify never joined the exclusivity wars is it because they dont have to good question there could be all these reasons were not quite yet sure f its so far the only Major Streaming Service seeking to go for an ipo that could be one reason though weve also seen this year that could ultimately begin to change does exclusivity matter, though, on streaming services . We saw over the past two, three years this gold rush for exclusive content. Really i can personally see the payoff, exclusivity in a lot of these cases ment rereleasing it, spending money for what . There didnt seem to be much rational in terms of growing the user base. Doesity matter now people want to be a part of this they want to support artists they love. If that means being there for a week, incentivizing people, even just to take the free version of the service, i think exclusives have a huge part to play we saw the controversy last year with frank ocean performing this bait and switch maneuver where he put up an album that wasnt really the album, got out of i had contract with universal and i ultimately went to apple music that made the industry put its guard up potentially that was a delay in terms of moving forward. Zach, thank you very much for that quick look at u. S. Futures this is what we expect for the start of the trading session slightly higher start. Thats it for todays show im kirl kicarolin roth Worldwide Exchange is up next. 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. 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