Control. For example, the euro swiss rate, saw the dollar start to be stretching while these might be esoteric, sometimes theyre tell tale signs. Investors were worried about whats happening with President Trump, whats happening with u. S. Policy, and the big danger would be loss of confidence and potential crisis for the dollar. I dont think thats going to happen, but well see. Certainly the most recent moves in Euro Dollar Exchange rate are interesting. What do you think the fed makes of the jobs report, it is only the july report, talking about a potential december hike a couple months away, i know wages number is still pretty low. 2. 5 do you think despite that the fed is now embolden, wanting to do a third hike . I think they are. The parliamentary speeches from the fed would suggest they do want to continue the mobilization of policy give us color fresh spin on what intentions are, but i think embolden by the jobs report in line with what theyre expecting, u. S. Economy mixed data first half of this year the key worry is absence of inflation. I think the fed hasnt made up its mind if it is demand or supply shop. If it is supply shop because of globalization and the Amazon Effect if you like, then inflation wont reach the target and may have a potential problem and theyll be tightening into the situation where inflation is low. I think it is a gradual process. Fed have a right to be cautious, dont want to derail the economic recovery, but also conscious of preserving financial stability. To be honest a lot could happen between now and december. Absolutely. Obviously the september debt ceiling debate absolutely. In the past, thats thrown the u. S. Economy and World Economy completely off course. What do you think will happen this time around i think the debt ceiling will be a key issue as a potential fiscal pitfall we have seen last minute deals between the white house and Congress Debt ceiling has always been lifted in the end. Last minute you would expect it to happen this time as well, but may go to the wire there may be concern in the markets, seen in the past volatility in Treasury Bill market, bond market. That may happen. Interestingly, treasury may run out of money at the latest october, maybe september that will coincide i think the fed will go ahead. Money markets 40 probability to a december rate hike less than 50 we are almost in the midst of august, slow summer trading. This year low volatility trade has been more pronounced than previous years in the past we had china with debt ceiling debates what do you have as investors in the month of august to get to september. Sit on the sidelines probably go on holiday, lets hope theres not as previous years potential hiccups, market crisis you can never rule that out. Investors would want that what are we doing here . Why arent we on holiday. I was on holiday two weeks in july neil, thank you so much. Neil mckinnon, global strategist lets remind you of the best performing sectors mining stocks are higher boosted by strong commodity prices, copper and iron ore driving the sector higher. Pace of growth is slowest in years. Households are starting to feel the pinch of inflation. Uk chancellor is reportedly blocking gambling firms, strapping the review into high stake gambling machines launched last october in order to preserve tax revenues. Britains finance minister hasnt commented on the report the ceo is stepping down the Company Announced a new chief executive. Revenue growth of 9 for six months of 2017 and postnl shares saying it is taking a toll on profits, will push earnings down from the forecast tweet me it is a monday im sure you have plenty of questions for guests. Still coming up, softbank shares close higher, they report a big profit boost more as to why and where this profit boost came from after this short break do stick around. microphone fee listen up, heart disease. Soft ban and hey, unmanaged depression, dont get too comfortable. Were talking to you, cost inefficiencies and data without insights. And fragmented care stop getting in the way of patient recovery and pay attention. Every single one of you is on our list. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Banco selling to Anima Holding theyll gain 1. 1 billion euro from the sale. And Deutsche Bank germanys largest lender suffered a 28 drop in private banking. They paid a 7 million settlement to department of justice for misselling Mortgage Backed securities. A federal jury found former Drug Company ExecutiveMartin Shkreli guilty of two counties of securities fraud, one conspiracy count. He faces up to 20 years in prison with a max sentence unlikely reporter it was almost a six week trial, including five full days of jury deliberations in the Martin Shkreli trial the jury coming to a verdict in the middle of friday afternoon, finding him guilty on three counts of 8. Two counts of securities fraud for former hedge funds he ran and to commit securities fraud for a former Biotechnology Company when ceo the government charged mr. Shkreli with robbing that Technology Company to payback investors that he defrauded in hedge funds. When he was arrested at the end of 2015, the government said he could face up to 20 years if convicted. His attorney friday saying he expected the judge to potentially be more lenient, perhaps not giving jail time though he was found guilty on 3 of 8 counts, shkreli pledged victory friday coming out of the courthouse, calling his attorney his hero. I dont think theres anything that compares to the government trying to squeeze you, standing up to them, telling them we dont think you have our backs notwithstanding all the resource of the federal government, we fought back and feel like we won. He and his attorney saying the most important charge was count seven of eight that he was found not guilty of. That was most important. It could have held the most severe penalties if he was convicted on that count. He was found not guilty on that one. They are pledging some victory Martin Shkreli no stranger to social media, jumping back online almost immediately after arriving home from the courthouse Live Streaming youtube, talking the trial and what was next. This is not the last we heard from Martin Shkreli. In other news, the german medical supply company says acquisition will boost dialysis business the deal represents the latest tie up in a wave of Health Sector m and as. And this follows a report from a batch dog taken a 29 stake in media set pay safe has a 3 billion offer for black stone and cvc Capital Partners they called that proposal quote fair and reasonable. The offer represents nearly Japan Softbank reported rise in First Quarter profit of 50 . They saw operating profit jump after including his private equity fund as new reportable segment. What i found striking is the fact they didnt include full year guidance. Why is that . Thats right. The company saying too much uncertainty on the horizon to include that full year guidance, that may rattle investors. Stock was higher 2. 4 before earnings were released, which were released after the market closed good bit of news would be that big jump in operating profit, rising to 4. 33 billion. That was ahead of forecast as well as big increase on that one. Revenue up almost 3 on this period more interesting than those figures were comments from the ceo following results about consolidation surrounding u. S. Unit sprint. No secret they have been shopping around for a partner for sprint in the u. S. , even suggested to look at outright purchase of Charter Communications if charter doesnt come to the table on its own for a tie up keep an eye on developments. The ceo saying theyre near announcement here. He said sprint could manage on its own, but in order to realize the full value, they need a partner. Thats exactly the comment i got from an analyst looking at this earlier on capital connection. He told me they, too, want to see consolidation to get justification for the buy rating thats completely the focus in terms of what they report for financial results, as long as theres not anything completely disastrous, then the focus will move from there. Saw sprint results earlier in the week, some comments there about it possibly being closed we dont know what deal that would be a tie up between sprint and t mobile is the one thats most likely. The analyst saying he thinks t mobile is the most more logical buy for sprint we will have to see what the decision is. I want to bring up Something Else within the earnings, big jump in operating profit coming from inclusion of the vision fund for the first time. Vision fund is the Largest Private Equity Fund with 93 billion in fire power behind it. They have been investing aggressively through the u. S. , heavyweights invested in the fund as well, but it is not without criticism keep in mind many argue that the structure it operates on, including debt structure is complicated, this could fuel tech mobile the vision fund could contribute several billion dollars in revenue if all goes well some ways pushing aside criticism surrounding that this is a crucial part of investment in the United States which as you know have been applauded by the white house thank you so much for that, nancy. Moving on, venezuelan president maduro praised authorities for stopping an attack on a military base. Some 20 armed men said to have raided a base, announcing uprising to restore Constitutional Order two were killed, several captured a search under way for the rest. The incident the latest unrest in the country following replacement of a governmental super body after the election. And venezuelan bonds were probably oversold in the wake of that contested vote, however, sees few reasons for investors to buy the countrys debt at current levels do you think its a matter of price . Do you think theyre expensive 44 cents on the dollar how low do they have to go take into account all of the contingencies. We know some about the debt, dont know about amount of debt, dont know how senior bonds are compared with debt owed or the chinese company. What would be the catalyst for them defaulting on debt. Some said it might be triggering of sanctions on the oil sector or is this something that will come inevitably anyway do you think default is avoidable . Matter of time before the country defaults, it has been around the corner for past two, three years at least they keep continuing to leverage assets they have, borrow high Interest Rates the end is close, it is a question of whether it is six months or 12. Thats why you dont want to be invested in bonds you could argue that if maduro government default on bonds, new bonds have to come in, and they would be valued at a higher rate that would be a win for investors or does it not work that way. It is difficult to tell if the government does fall, almost impossible to tell whether the new government which is friendly to investors and new government which is quite unfriendly or something in between, but even if theres an investor friendly government, they might declare debt issued by the administration owed ee us, in which case it might not acknowledge it would a default precede government change or do you think it is a default that would trigger a government change. Whats the chicken and egg situation here. It is difficult to tell the interesting wrinkle is one of the major reasons the country is still probably wants to continue servicing debt is that it knows if it does default, that will be the final end probably if they were to default, would speed the end of the regime would you be more inclined to touch bonds of the oil company pdvsa, closer to 30 cents on the dollar, would offer more value, or because of sanctions you want to steer clear those of us in the bond markets have been analyzed to investors for so long. I think everything is priced if sentiment were to improve, spike much higher, if recovery value were to be that much higher accordingly, all of the bonds would rise one might go up 1 more than others at this point it is a question of making a pick as opposed to individual bond. Seems like a tricky place to invest not for the faint hearted at this time. Talk about others that might be easier to invest in, even though we have a lot of stories brazil, avoided trial, will have to work on pension reform. The bonds are a buy tricky political decision whether to invest in brazil, brazil has a large portion in every in investable, to not invest involves a big decision however, the ability to avoid removal from office is quite constructive for the markets oil prices are up. It is more important that markets have confidence to be implemented eventually, meaning end of next year, early next quickly before i let you go, seeing that rally when it comes to emerging markets that were bonds apart from venezuela can that rally continue even if the dollar this is a question we have in emerging markets a lot of us are concerned. As long as market fundamentals remain, benign and negative parts of most investor stories are avoided. Thank you for the stocks. Appreciate it. Many of you are on vacation. Heres another man who is. Another shirtless fishing trip for russian president vladimir putin. Latest bare chested shoot captures his funting and fishing trip in siberia. They hold the next election in march, he is widely expected to win. Hasnt announced his candidacy yet. He is busy we will be back in two [narrator] introducing a breakthrough in hearing aid technology. Presenting the allnew eargo plus. The worlds smallest, most comfortable rechargeable hearing aid designed with patented flexi fibers so therere suspended completely inside the ear canal and so small that theyre virtually invisible. The kind of invisibility hearing aid wearers have been looking for, if you could look for invisibility that is, which you cant, or i guess you can but you wont find it, well, cause its invisible. You know, anyway. The point is, most people probably wont even know youre wearing them and theyre so comfortable you might forget youre wearing them yourself. Eargo plus is also rechargeable so theres no need to replace batteries because theres nothing more frustrating than those tiny hearing aid batteries, or there probably is but we just cant think of it right now. And our advanced Noise Reduction Technology reduces background noise. Dont wait, call or go online now to get your free sample pair today and try the hearing aid pc magazine calls, tiny, comfortable and nearly invisible. Eargo, hear life to the fullest. The ceo of the fed is the most characteristic of the job. New 52 week high for the Financial Sector people look at the banks as the engine for financial growth and Economic Growth in the u. S. It is a joint manufacturing plan probably gets them off the president s radar if he continues to go after manufacturers who are building in mexico and shipping to the u. S. Welcome back to street signs, i am carolin roth. These are your headlines european equities are mixed after stocks are higher following a record close, strong job numbers in the u. S the u. S. , australia and japan are out with a tough new statement, pressuring north korea to change its ways this as north korea says sanctions infringe on its sovereignty. The book maker says the ceo is stepping down, the stock on track for worst day since brexit vote last year good morning, everyone quick look at u. S. Futures see if we see follow through from the strong report friday which took the dow to an 8th successive record high were looking quite positive s p 500 up, dowjones set to add 23 points, nasdaq up by 13 points financials doing well, given the odds of another rate hike, increasing once again. When it comes to european markets, had a stellar session friday that was very much driven by weakness of the euro against the dollar the dollar rocketing out much better jobs report 209,000 jobs created in july now seeing Dollar Strength fading switch to the fx markets thats impacting equity markets. You have euro dollar trading higher this morning. If we bring up the chart once we have it there, youre up thats the sterling. Anyway, i did want to tell you your dollar was edging a little higher in todays trading session. There you go up by 0. 3 whether the payroll report was a game changer for the jobs report the rally didnt last too long at this point. New note from ubs suggests pilotless planes could save airlines 35 billion a year pilotless planes are feasible, could appear by 2025 all this week, talking future of work how technology and other factors change the workplace, who the winners and losers will be this hour we focus on how businesses can profit from new Economic Opportunities while safeguarding employees albert ellis joins us. Thanks for taking time on whats driving change in the employment market what is the driving force . Development of big data, Software Engineering that can take machines now and give them some sort of Artificial Intelligence of course, we have seen google leading the way on that. Most Technology Companies are making significant investments in machines, in computers that can replicate what humans do right now. Whenever i have a discussion about how destructive ai will be for the jobs market, it is tale of two stories some say it creates millions more jobs, others say millions of jobs erased from this planet. Where do you stand you have some skin in the game given you run a staffing company. You dont want to see jobs being lost you want to still play a very Important Role as intermediary. Correct you look at the study two years ago, said 47 of current jobs in the u. S. Will probably be obsolete in 10 or 20 years, maybe thats on the tough side, this is the trend, this is whats happening technology is really moving jobs from one sector to another beneficiaries are the tech companies, like amazon, google, apple, ge which was and is one of the most successful industrial giants in the last ten years, 30,000 Software Engineers to help their business become digital unemployment is relatively small. 4. 3 in the u. S. Seems to me unemployment is falling and jobs are being created. What does it mean for a recruitment company, will you have to adapt by catering to Technology Companies where jobs are created . Companies are not hiring people who cant operate in digital environment and dont understand how social media and business and commerce is reacting and converging. Candidates need to be very digital, of course whats happening is while that digital experience is so important, companies are looking for creativity in the past, outsourcing a lot of work. Now theyre bringing a lot of creativity back into the company because theyre under pressure, competitive, digital pressure, all creating new roles, new jobs thats where we need to be on the board ahead of the curve. How do you make sure your business is not inter mediated by machine you want to mesh the employer and employee why do you need a company to do this if a computer can probably do this just as well thats something i think about every day. Linked in was the first step to that Many Companies use linked in we use those tools in the past where candidates and database was important and valuable to us, now it is our consultants need to have communication skills, they need to be people focused, customer focused as opposed to searching. The machines do the searching now. You said human touch will always be important. Thats correct. Absolutely lets talk more about the economy. See reports about legalities protecting workers rights, giving minimum pay, sick pay, vacation pay do you think enough is being done to protect the worker here . We get the sense that government and regulators are well behind the curb even taxation doesnt seem to be able to handle new conditions and structures these companies are employing, and theyre using digital equipment and Software Technology to make these Business Models really viable in the marketplace. I think governments have a huge challenge ahead. I dont think it is easy we want to maintain flexible labor. We have sort of low employment in this country. Regulators are worried about risking flexible labor market, therefore it has a long way to run to see how it resolves itself. Before we let you go, an exciting trade pulled up, want your take on that. All we can talking about how the workplace is changing. What Workplace Change you want most less time and meetings, shorter commute or new boss. Whats your take on this, what do you want . Always worried people that want to work less and have Less Technology in their lives. I think more technology is good. I like less commuting, more flexibility, but you want to work for a Company Forward looking and you know the company is doing well. Thank you so much head to trader dleel poll. Cnbc. Com. In other news, google has publicly condemned a memo written by one of its employees which argues the company has relatively few female engineers because men are better suited to the job. The leaked internal document prompted social media backlash over the weekend comes at a time when google is under investigation by the u. S. Labor department for gender based pay discrimination downing street reportedly played down claims the government is willing to pay up to 40 billion youre owes to settle the exit from the eu. Reacting to the sunday telegraph report, sources say it was highly speculative and wrong the issueof settling Britains Brexit bill proved a major Sticking Point between both sides. And coalition of social democrats which runs the german state of lower sacks knee called for early election it is the latest in setbacks, seven weeks before they take on Angela Merkel. Seems like this has entirely evaporated. Thats completely the case. The recent poll, spd has fallen back to the level before that euphoria that means that the spd is now spending at 23 . Some even putting them at 22, others at 24 but somewhere in that region thats like where they were before, and that is nowhere near Angela Merkel she has a rating, her party has rating of somewhere between 28 and 40 essentially that recent backlash is adding to not working strategy of the social democrats. Telelost three Regional Elections in a row theyre more or less falling into the hands of the cdu. Another bad sign going into that election month of september. Having said that, for now it looks like september elections will yield a coalition possibly between Angela Merkels party, ceu, the liberals back in force, and also the greens. That might be the new coalition in germany for now, as we know still a lot of things can happen Election Campaign on the ground just started, seems like a hot political summer in germany. Back to you. Thank you for that. I cant believe were not seeing another grand coalition. Maybe this time well see a slightly different makeup of the coalition in germany anyway. Thank you for that. Still coming, Rex Tillerson upping the pressure on north korea following the u. N. Security Council Decision to impose new sanctions on the rogue state. We will bring details in the next few minutes your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. And ive never seen a better time to refinance your home, than this summer. Why . Because right now were seeing our average customer save 20,000. But with the fed already talking about raising rates, this window will not last for long. Lendingtree is the only place to compare up to 5 real refinance offers against your current mortgage for free. Are you sure you have the best rate . Take 3 minutes and find out right now. Because at lendingtree, when banks compete, you win. They called on the International Community to implement new sanctions against north korea. New statement follows the u. N. Move to back further measures against the rogue state over missile testing. Earlier u. S. Secretary of state Rex Tillerson raised talks on north korea depending on behavior, didnt put a time line when they can take place. Were not giving someone a specific number of days or weeks. This is really about the spirit of these talks, they can demonstrate theyre ready to sit with spirit of finding a way forward in these talks by no longer conducting these missile tests. So this is not give me 30 days and were ready to talk. It is not quite that simple. So it is all about how we see their attitude toward approaching President Trump weighed in on the north Korean Administration as his administration deals with speculation about his political future Nbcs Kelly Odonnell has the latest. Reporter from his summer stay at his new jersey golf resort, President Trumps first take on a significant Foreign Policy accomplishment. North korea sanctions came without bravado. Two tweets noting china and russia voted with us, very big Financial Impact today, adrenaline out of the Trump Administration came from Vice President mike pence. After New York Times report described a Shadow Campaign for 2020, where prominent republicans, including pence, were donors, made political stops in case President Trump is not on the ballot. But in a lengthy review, he called the assertions disgraceful and offensive to me, laughable and absurd and pledged his efforts to see trump reelected in 2020. Greatest privilege of my life to serve as Vice President to a president who always puts america first. Reporter counselor Kellyanne Conway defended pences loyalty. It is absolutely true that the Vice President is getting ready for 2020 for reelection as Vice President. No concern he is setting up a Shadow Campaign. Reporter speculation smoelders given his Approval Ratings and potential improper contacts with russian allies today, when asked if he would try to fire bob mueller, conway batted that away cooperating with he is not discussing firing bob mueller. Reporter Rod Rosenstein would have to approve any expansion of the probe into areas or people beyond the election interference and would not say if he had. It is not a fishing expedition that was Nbcs Kelly Odonnell. The u. S. Military and nato allies showed off military muscle this weekend as Russian Forces flexed theirs matt bradley filed this report. Reporter the sound of sabers rattling, dualing russian and nato war games as tension between russia and American Allies reaches the worst point since the cold war. Deterrents because what this is credible serious capability. Reporter on board uss george h. W. Bush off the scottish coast for a military exercise called sacks on warrior russia is holding the International Army games, showing off its military prowess, prelude to Massive Drills in september. Belarus and china have also been invited. Nato officers say both drills were planned long in advance it is at least three years in the planning reporter they come between uneasy times between moscow and nato, they have Close Encounters between pilots increasing in the region. If things escalate, military capabilities will be rising, that promotes potential for miscalculation reporter not just a show of force to moscow, theyre also display of unity to allies, some of whom are having doubts about President Trumps commitment President Donald Trump chastised nato countries saying they dont spend enough on their military these drills offer a glimpse how a cold war past could make for a risky future matt bradley, nbc news on board the george h. W. Bush. A lot to talk about with Global Political analyst tina, thank you so much. Another busy weekend when it comes to news out of the white house. Also in terms of ratcheting up of geopolitical tensions kickoff with north korea seems like President Trump needs a win badly, tried to portray the 150 vote in the u. N. Security council in favor of more sanctions against north korea as his personal win. Do you think it is that significant for him . I actually think it is pretty significant. Given that Congress Passed new sanctions against russia a few days ago, russia could indeed threaten to veto at the security council. The p 5 need to vote together. Heard from Russian Foreign minister lavrov they might do that getting Russian Support and unanimity is something we havent seen in a while. Not sure it is a victory, but a positive signal for sure. China didnt block it either. I wonder to what extent the sanctions are a game changer when it comes to north koreas aggressive behavior. We have seen 8 rounds of sanctions since 2006 and still seeing Economic Impact hurting north korea, but still theyre trying to send more missiles in the air. Theyre not doing anything i think it is unlikely sanctions are going to work in reversing north koreas commitment to its nuclear program. And the Six Party Talks went on for years, excruciating series of talks when it comes down to it, policy makers only have a few tools in the tool box sanctions, and diplomacy diplomacy hasnt worked, sanctions dont seem to do the trick. They cant go for the military option, can they the military option would be incredibly destabilizing in all the war games of the last couple decades point that direction, thats what makes north korea the worlds most destabilizing geopolitical risk. Were not sure if we are dealing with a rational actor. How can this program be curtailed, how can north korea be convinced into reversal i think reversal is unlikely denuclearization which has been the policy objective is not going to happen. Do you think status quo will persist, no side can score a big win, it will be somewhat of a failure for trump who tried to reset relations with north korea with the help of china this is where the rhetoric comes in because whats the u. S. Objective . Previously was denuclearization. What is it now Iran Nuclear Deal was about slowing down, stalling the program. Iran submitted to the worlds most intrusive inspection regime i dont see north korea agreeing to that. What does President Trump want does he want north korea to slow its program, to end its program. Does he want is it really about china. Thats where the markets come in markets have been concerned that trump might possibly take out frustrations against china in trade terms for failure to cooperate with north korea thats where the administration is confused, mixes Foreign Policy and trade in this quid pro quo that were not used to seems like you will still take aggressive trade action against china, even though the statement on friday was delayed, probably coming sometime this week do you think he will go ahead with the plan we read about in the news last week or might he alter it to some extent, now that he tried to make in roads when it comes to north korea seems like the two are closely linked. It does i have been in this roll over 20 years. Ive never been less sure of gaming out what a Major Political actor might do i think markets should be concerned that trump is ratcheting up pressure on china. What we need to understand is chinas objectives are different. China doesnt want north korea to become a failed state on its border and it may be willing to risk north korea obtaining nuclear weapons. If the price for cooperation with trump is trade war with china, he may paint himself into a corner, increase tensions, or even possibly provoke preemptive action from north korea itself, which is as we know very unpredictable power. I have a question about trump on the domestic front, saw articles about pence preparing for 2020 that was shot down by him. He said that was disgraceful and offensive. I wonder how isolated trump is now at home within the gop as we saw the Health Care Debacle unfold. We can only speculate we have mid terms coming next year we have the administration at 8 months without a major legislative victory. The Republican Party wants a couple of things for sure, what it hoped for in supporting trump, thats tax reform and deregulation i would put as top two things i wouldnt be surprised if nerves are fraying lets remember trump leaving the scene prematurely decreases likelihood policy objectives are met. So there may be nay sayers and detractors, he is still the best belt for getting pet projects passed. Thank you for that. Ill leave you with comments from softbank ceo, interested in investing in uber, love to get in the ridesharing market. With that,is wh you a wonderful monday see you tomorrow byebye. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Another week in the green after hitting record highs. Secretary of state Rex Tillerson doubles down on north korea after the u. N. Approves tough new sanctions. Googles antidiversity manifesto sparks outrage Worldwide Exchange begins now. Good morning warm welcome to Worldwide Exchange on cnbc