German company to raise profit outlook. We talk to the ceo at 11 30 cct. Good morning, everyone it is monday hope you all had a great weekend and it is a new week, especially for those investors caught with political tensions between north korea and u. S. , sent stocks down, the worst performance since last november. On this monday morning, seeing a bit of a relief rally. If we look at the indexes one by one, these gains are broad based. Ftse up by a half point. Dax surging by 1. 12 we will talk to the cfo later today. When it comes to the sectors, what youll see is that we see a bit of a rebound when it comes to the Banking Sector, up by 1. 7 this is one that was hurt pretty heavily. Auto trading high on the back of fiat report that oil and gas are underperformers. Back to the big political story that kept us busy over the weekend. President trump under fire for failing to explicitly condemn white supremacist groups, this where a man drove his car into people protesting against extremism in charlottesville 20yearold james fields charged with the attack that left one woman dead and dozens injured. Trump initially denounced violence on, quote, both sides, but failed to single out White Supremacists, sparking widespread criticism from Senior Leaders across the political spectrum Nbcs Kelly Odonnell breaks down reaction from washington. Reporter for a presidency forged by blunt talk, what donald trump did not say is politically deafening. Hatred, bigotry and violence on many sides, on many sides reporter the president seemed alone spreading blame for the violence his omission, choosing not to call out white supremacist groups, some known to support him, a failure according to critics and many republicans. I would urge the president to dissuade these groups that hes their friend. Call it white sue prem sichl evil, let the world hear it. It is something that needs to come from the oval office and this white house needs to do it today. Reporter a wave of criticism on twitter from National Voices in both parties. Today, first daughter Senior Adviser ivanka trump was more direct there should be no place in society for racism, White Supremacy and neonazis white house damage control a statement that says the president s condemnation of violence includes White Supremacists, kkk, neonazi and all groups candidate insisted labels matter under the term radical islamic terrorism. Anyone that cannot name our enemy is not fit to lead this country. To solve a problem, you have to be able to state what the problem is or at least say the name reporter today, National Security adviser h. R. Mcmaster defended the president gl when he condemned bigotry and hatred, that includes White Supremacists and neonazis, i know it is clear in his mind. Reporter ousted Communications Director said the president fell short. He needed to be harsher with white sue prem sichl. Reporter tom boss earert wa pressed to be more explicit. I condemn White Supremacists and groups that espouse hatred and exclusion. I cant be clearer. The chinese president is trying to diffuse tensions between the United States and north korea. Trump declared that his military was quote locked and loaded. In a phone call, she agreed north korea should stop provocative behavior but urged trump to avoid inflammatory remarks. The chairman of theUnited States joint chief of staff will meet with the south Korean Military leaders in seoul today. Reporter general dunford arrived in seoul ahead of meetings with south Korean Military officials tomorrow and amid very high tensions on the Korean Peninsula the North Koreans said their plan to strike guam will be in place by mid month, a couple of days away. North korea is notorious for making extreme threats but not following through, so the question is this time will their leader, 33yearold kim jongun actually act on the threat to strike off the waters of guam or will he hold fire. About 140,000 americans live in south korea. There are about 28,000 troops stationed here as well over the weekend we spoke to a father and teacher, father of two, and we asked him are you worried. May be a real fear, but couldnt let it control your life i think here most people just you carry on life as usual i mean, i really havent thought about the situation for a week. Reporter china urged calm. President trump leaned on china to help solve the north korea issue. But tomorrow he also plans to challenge the country on trade kelly kobe a, seoul. Cia director mike pompeo said he wouldnt be surprised if north korea tested another missile. Speaking to fox news, he said he was, quote, quote confident that leader kim jongun would continue to develop the countrys missile program. North korea claims it plans to attack water surrounding u. S. Territory of guam. That will be completed by mid august and President Trump is expected to sign a president ial memorandum later to investigate china laws, practices and policies in relation to trade. The first step by the president to tackle what he described as beijings unfair trade practices and could lead to sanctions. The move comes as the u. S. President called for greater cooperation with china when dealing with north korea it was an eventful week last week, that saw plenty of closings in currency today gold is trending off by a half percent look at the last seven days. Up by roughly 2 in the course of the last week up 2. 3 . Fourth positive week in five and the best performance since april. Talk more about this with james butterfield, head of research and Investment Strategy at Etf Securities james, you have a big gold fund. How busy in terms of inflow . Last two weeks seen roughly 100 million in inflow which is small compared to this time last year when we saw that on the back of loose manager policy geopolitical crises and loose monetary policy. We have tightening of monetary policy, prompted outplays until the recent geopolitical crisis our analysis suggests when you start to see crisis like this, if they actually occur, gold tends to really outperform in the following year. Do you believe that these in flows you saw last week, even if you say they werent huge in comparison to last year, do you think theyre sustainable . Do you think theyll see follow through or do you think as soon as the news flow around north korea stops, in flows will abate. There will be tightening and europe too our fair value year end is 1250, below where it is today. You cant price geopolitical crises into a spread sheet were not going to attempt to do so lets say this all falls away, what we are left with is fair value around 1250 gold. What about the other safe havens, treasuries did well last week, swiss franc, the yen, should you remain allocated to that but to some extent cash, never know what mr. Trump or kim jongun will say as you say, you cant build it into a model, thats why you should be prepared. We are seeing flocking to safe havens where theres value. The alternative is the u. S. Dollar sold off quite considerably year to date. Last month, 52 million of in flows into usd positions thats against the euro. It could be a safe haven, has the threat of the newspaper is out about rate hikes in the United States. Thats interesting. You say the dollar is becoming a safe haven, even though it sold off so heavily the last couple months. Seems that, it might be looks cheap, might be just we expect the dollar to have 1 to 2 toward end of the year, but does have again issues with it, primarily donald trump and uncertainty around him implementing tax policies. James, were going to continue this discussion after the short break. Head of Research Investment strategy at Etf Securities send in questions, email the show street signs at cnbc. Com you can find us on twitter curious to hear what your thoughts are about the dollar, whether we are seeing a turnaround or whether youthink it can act as safe haven currency. Still coming up on the show, not content with being the land of the rising sun, japan is the land of rising gdp we look at Second Quarter numbers in a few moments back in two. 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. Chances are, the last time yoyou got robbed. An, 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 to the show shares in Fiat Chrysler trading sharply higher on report that at least one chinese automaker made a bid for the Italian American car maker. According to automotive news, a well known chinese car maker made an offer at a small premium this month the deal was rejected, but it cites meetings between other executives and delegations of other players. Fiat has been on the block while China Companies are under pressure to expand outside their home market. Chrysler shares are up by 3. 3 the merger between Aberdeen Asset is completed the deal is the largest listed asset manager in britain with assets under administration of 670 billion pounds speaking to cnbc last week, said the move creates a uk Asset Management champion. The main thing for me is not the numbers but the fact we saw increased diversification of flows, so execution of strategy was in a good place, which puts him in Firm Foundations for the merger. Rwe in germany trading sharply higher after revising profit forecast to the upper end of target range. The German Energy group says it is boosted by Strong Performance in gasfired plants. Outlook came as rwe reported a 7 rise in first half adjusted earnings in line with estimates. Theyre also promising a special dividend, something investors like to hear speaking to the ceo at 11 30 thats an interview you dont want to miss. James butterfield, head of research and Investment Strategy at Etf Securities. The earnings season is slowly but surely coming to an end. What do you make of it pretty good bottom line, growth has been fantastic. There are a couple of problems on the horizon, one is revenue if you look at the financial and energy sector, revenues have been disappointing really. And what we think is it is strength of euro you strip the companies which have more than 40 revenues outside the euro, you find that Revenue Growth is much more healthy. Clearly this is a problem. At what point does the Exchange Rate become problematic for german exporters and 114, 115, obviously the levels that we have seen of late, 118, 119 at some point, surely those would create headaches at what point do you think theyre more comfortable with the Exchange Rate . I think it is weaker. I would say 110. It benefits different sectors different ways if you look at the industrial sector, you see that actually it has been fantastic for them. Theyve outperformed top and bottom line. When we look at whats happened so far in the third quarter, thats why i am seeing bulk of the depreciation against the u. S. Dollar. Wouldnt q3 season be worse than q 2 . For the first two months, you saw a fairly weak euro against the dollar is the worst still to come for the euro impact . Thats quite possible q3, what happens to earnings and when we get to september, october time, quite a worry for europe might be exactly the point where we see the ecb, ne discuss tapering, news is out there, saw a little settle. Future positions so high at the moment, we could see it start to trade the other way, and dollar further strength from that another factor that in the past has really helped the european corporates is the low oil price. Still stuck around 50 a barrel level. I guess thats neither a head wind nor tail wind the marginal cost of production for most producers ranges 30 to 40 a barrel. Still being earnings appreciative is hurting them the outlook is worried look at opec, seems that the deal is falling apart. Seeing three consecutive months where delivered oil, Oil Production is above targets. Thats a real worry. And the real perpetrators are iraq who want further market share, libya, nigeria who arent in the deal at the moment, that could be a problem suggests it is not a significant up side to the oil price. What are you seeing in terms of flows, investors dont find it too exciting at this point. If theyre not going into oil, do you see them going into other sectors as a result . Where is the rotation happening. Interesting in oil. Investors are trading that range. When oil goes above 50 a barrel, they sell out. We have seen 250 million of outflows in the last month when oil tends to hit 40, 43, thats when we start seeing significant inflow arranged trading aside from that, we have seen a slightly better story with china. Interesting clarkston results, we saw china highlight that growth in china was better than many believed. You look at export volumes, et cetera, we see evidence of that. Were seeing strong in flows in industrial metals. James, thank you for that round up james butterfield, head of Research Investment strategy at Etf Securities speaking of china, the latest from the commerce ministry, it issued or implemented u. N. Sanctions banning north korean imports of coal, iron ore, seafood effective tuesday in line with the latest u. N. Sanctions decision we spoke about china strength, factory output, it slowed more than expected in july showing growth of 6. 4 retail sales came in below forecasts. It reinforced news that the China Economy is starting to lose some steam as lending costs rise and Property Market cools down Second Quarter gdp figures for japan show the economy expanded 4 fastest rate in more than two years. Growth driven by robust domestic demand as Consumer Spending and Capital Expenditure rose at the fastest rates in three years investors looking for more rate hike clues when the fed releases minutes from the july meeting wednesday, weaker than expected data triggered expectations for friday, more betting soft inflation will keep the fed from hiking again this year a lot to talk about with the global head of strategy at bank of america, merrill lynch. Kickoff with the japanese gdp number, 4 annualized, 1 on the quarter. Thats a very strong number. Why was the yen down that was a surprise, well above expectations, but still i think the bank of japan focus on inflation is very low, but the real reason that the yen has been supported last week and we saw actually some weakening this morning is increase in market volatility and headlines from north korea. We had the market move last week, high volatility, weak equities, and some action today because we didnt have headlines during the week. I think the main driver for the yen at this point is geo politics rather than data in japan. You say in the most recent notes that the north Korea Tensions could go into safe havens like the yen and swiss, but at some point the yen will reverse and be weaker. Why do you think that is it can be nonlinear to the extent that the headlines recently is driving Risk Appetite lower, this is a market move from very high levels actually, and will support the yen. However, if we see some scenarios unfold in the region, these will have direct implication for the economy of japan and will be negative for yen. What do you do with dollar yen changing at 109. 72 whats the best way to trade it . The risk for dollar might be to the down side is not we have a number of risk ahead of us this fall, fiscal debate in the u. S. , the debt ceiling, budget we are concerned about equity valuations, it is weakening. Dollar again will continue weakening because of more demand according to positioning, seeing the dollar oversold, euro overbought at what point does it turn has it already turned . As you suggested point out to stretch position in euro dollar, or euro rise p it is more than the debt will justify. What is interesting, it support euro dollar, responds to Market Correction the fed might stay on point, forced to take it no matter what still, i wouldnt necessarily buy euro dollar at this level. I believe the bench line scenario, faster than markets expect, and should be lower than markets expect now. Still, the dollar is not an outright buy, you only like it against selected currencies. Would be dollar, against canadian dollar, also like being short. Believe the market is priced for brexit negotiations. Even if you get a good deal, the pack is not small. Debt in the uk is weakening. Currently sitting 129 thank you so much for your time. Appreciate it. So coming up, we get insight into the latest Ai Innovations as elon musk warns of threat from robot revolution and plenty more on street signs in two minutes. Stick around theres a denture adhesive that holds strong until evening. Fixodent plus adhesives. Just one application gives you superior hold even at the end of the day fixodent. Strong more like natural teeth. Welcome back to street signs, i am carolin roth. These are your headlines no sign of jitters, european stocks kickoff the week with banks leading the way, despite geopolitical concerns around north korea. Fiat shifting into higher gear on media report that suggests number of chinese car makers explored a potential bid for the auto giant. Fire up the cylinders, Strong Performance in gasfired plants prompts German Energy company to raise profit outlook. We will speak to the cfo at 11 30. Good morning lets have a peek at u. S. Futures. What a week for u. S. Markets the dow and s p saw the second worst week of 2017, dow off by roughly 1 dow up 14 points, that strength is expected to continue today too the tune of 118 points at the open for the dow, according to futures, s p 500 could jump by 15 points, nasdaq could add seeing a bit of a relief rally after geopolitical concerns last week ftse bouncing back bigger bounce back for the dax thats the rwe effect. We will talk more about that with the cfo later in the day. Last week, worst week for the stock 600 since last november. Off by roughly 2. 7 . In the fx phase, the dollar climbed back against the euro, currently to 11797 and dollar stronger against japanese yen, despite the positive Economic News out of japan, japanese yen didnt react too much to that. In other news, bitcoin topped 4,000 mark first time in its history according to research by coin desk. The nineyearold Digital Currency trading at nearly 4033, increase of more than 25 in august. This comes as some startups look to get their hands on crip tow currencies like bitcoin. Reporter initial coin offerings emerged as a way for startups to raise capital, issuing customized virtual coins to anyone in exchange for bitcoin and demand is strong they raised 1. 3 billion, outpacing the amount raised by traditional Capital Venture funding. Raised record breaking 232 million last month now startups outside the block chain are starting to join the craze. Cnbc spoke to the unicorn looking to raise as much as 100 million. Mark cuban, current investors, expected to participate. Similar to bitcoin, initial coin offerings involves fewer regulations which prompted concern from the sec, peoples bank of china and central bank of singapore thats not stopping investors from buying bitcoin which hit another record high, surpassing 3500. Back to you. Elon musk says Artificial Intelligence poses greater threat to the world than Nuclear Conflict with north korea. Thats right the tesla ceo tweeted people should be concerned about the rise of machines, posting a picture of a poster reading in the end, the machines will win musk has been a long time critic of ai, putting him at odds with much of the tech industry. This week, we delve into controversy surrounding Artificial Intelligence, examine howie mer generals of this technology could effect investments. Our guest has first time experience of ai and implementation into financial services, harry gas kel, chief innovation officer your reaction to what elon musk had to say sounds like he is predicting the end of humanity because of robots. He is, but he is worried long term, north korea is more of a short term threat. The irony is that he runs a big ai company. Very true. Runs tesla, ai on wheels. I think he is warning us, he wants to be sure we take the right steps in time, not that he thinks that will really happen. How beneficial will ai be for the workplace, for productivity. Is it as much game changer when it comes to comparing to the computer, impact of the internet how big will it be about as big as the internet. Well see that unfolding the next four or five years. Beginning to automate. Every time you talk to siri or alexa, you talk to ai. You will see it through business and society the next 10, 20 years, biggest new technologies we see coming out. The biggest and maybe most disruptive when it comes to jobs we had this discussion so many times. How many jobs erased as opposed to how many created because we need more engineers, people well versed in stem subjects. And nobody really knows last 200 years, whenever we invent a machine, in the end had more growth, more prosperity, more jobs. The same this time i am optimist, probably will but nobody really knows. The argument that you usually hear from counter side, maybe elon musk belongs to those who believe creativity will be lost, the Human Element will be lost in interaction in the workplace, in society is there anything to contrast that trend is it replacing routine jobs, taking mundane stuff away, creating space for humans to create and be human. You see some that write novels, produce music. How good . They can produce basic journalististic articles hopefully not im reading a report saying ai is to replace a third of all british jobs by 2030 2030 does that sound about right . Is it further in the future . Is it closer to what we think now . First thing is they dont mean replace jobs, replace tasks we do today. We introduced ai, job used to take 15 hours, does it in three seconds. Thats not replacing that job, they have 15 hours to spare and do other things. We are shifting them away from routine tasks. So it is not replacing jobs, it is changing the way people work. Do i think 30 of tasks by 2030 will be replaced by ai, sounds like the right kind of number. How do you protect Data Collected by various uses of ai, self driving car, machine, person analyzing your health data or machine analyzing your health data. Who owns and protects all of the data it will be protected by the people that gather it. Protecting it is relatively straightforward, there are impressive new regulations coming next year, fine you 4 of global turnover if you dont protect data google, facebook, the ones spearheading innovation, trust them with our data in terms of keeping it safe, do a pretty good job the other question is what else do they do they can use that to discover things about you that you may not have intended. Sometimes they have the data, they can sell that data to other people how do you feel about that and how do the Companies Feel about that making ethical decisions, we want them to think more about ethics when they deal with our data ethics is a good point, not brought up enough i would think in this discussion how do you know if a self driving car will make the right decision youre bringing this up in your notes, going to make the right decision as to whether he or she, the car will stop for an elderly woman or child how do machines know that . Machines know that because they have to be coded and learn to do that we have to program them with a set of ethics. At the moment, theres no widely accepted set of ethics for autonomous vehicles. Theres a bill going through in the u. S. This year should establish the first framework for testing autonomous vehicles. What we need to do as society and Business Community is debate that how do you want to see the machines work, were in control, should stay in control of them finally, we had a guest on from deloitte, one of your competitors, they made a good point about higher premiums being paid for high Skilled Communications jobs in the future anything that is created in the future will get a higher premium, higher pay. Do you agree with that were already seeing that i think we need to change the Education System to reflect that, change the mix in our Education System to stem subjects and to the creative subjects, too. You think about an iphone, for example, it is a brilliant product, it is a great piece of tech and brilliant design. Creative skill and tech. Thats probably the recipe for education in the future. He says my job wont be replaced any time soon, yours wont be either. I dont know whether a machine can do your job as chief innovation officer, has to be really smart to do that. Thank you for that we have been asking viewers which jobs will be hardesthit by automation. Asset managers, taxi and Truck Drivers, factory workers, or journalists. What do you think . I worry for Truck Drivers last year tested in the states autonomous trucks. I worry about that all right head to cnbc. Com. Uber board room issues continue with lawsuits and unfiltd positions causing concern for investors. It is all out war between one of the prominent d. C. Firms benchmark and former uber ceo, travis kalanick. The plot thickened, he got support from shareholders asking benchmark to step down from the companys board of directors benchmark led the movement to get kalanick to resign a few months ago, yesterday the firm filed a lawsuit trying to get kalanick removed from ubers board and cut him off from the company entirely up until now, the tension played out for weeks. Now it is all out in the open. Within the nearly 40 page suit, benchmark accuses kalanick among many things of selfish power grab and hiding information critical to the lawsuit. The letter from three shareholders to date says theyre concerned about the, quote, tactics employed by benchmark which strike us asset i cannily dubious and value destructive rather than value enhance i have they were in three funding rounds, investment that according to the lawsuit translated into a 13 stake of the company, last valued at nearly 70 billion this has amassed tremendous paper profits for the d. C. Firm, but average duration for investment is around 7 years benchmark is getting close to that with uber, looking to cash in on some of the profits. Add another layer to this, sources tell me ubers valuation has fallen by billions in the secondary market giving benchmark more incentive to cash out before another funding round. Meantime, Financial Times and mckinsey released the book of the year award, talks about rise of uber, diversity in Silicon Valley and Economic Impact of catastrophes if youre looking for a book to read on Summer Holiday winner will be named on the 6th of november. We will be hearing more on the award from andrew hill, Financial Times editor at 9 45. Elections in germany kick into gear with merkel taking aim at the embattled Auto Industry more after this short break. Stick around whuuuuuat . Rtgage offer from the bank today. You never just get one offer. Go to lendingtree. Com and shop multiple loan offers for free free . Yeah. Could save thousands. You should probably buy me dinner. No. Go to lendingtree. Com for a new home loan or refinance. Receive up to five free offers and choose the loan thats right for you. Our average customer could lower their monthly bills by over three hundred dollars. Go to lendingtree. Com right now. Fixodent plus adhesives. Theres a denture adhesive that holds strong until evening. Just one application gives you superior hold even at the end of the day fixodent. Strong more like natural teeth. Welcome back to the show donald trump was elected president after promising big tax reforms and deregulation for the Banking Sector however, eight months later questions are rising over what the Trump Administration is going to do for the economy. The Administration Took Office with promises of tax cuts, Health Care Policy and deregulation across many psychiatris industries theyre opening questioning what, if anything, the new government will do for the economy. We analyze latest earnings calls, found many ceos are optimistic, growing number are unsure of d. C. s direction, delaying Capital Investments and waiting to spend billions in business developments. Youre seeing hesitation from all kinds of industries, Companies Big and small. Pfizer ceo said he needs to see tax reform or absence of it to understand where market values are. Said any focus on Business Investment and changing allocations is crucial blamed political gridlock why clients are cautious ralph lauren said it wouldnt buy back stock due to tax reform all items discussed but not executed this is a trend towatch for. Will Companies Continue to wait, not because of bad policy, but because they do not know what would happen next. Back to you. Uk chancellor and trade secretary put up a united front on brexit. Joint article, said britain would be leaving the eu, would not create a back door deal to stay in the union. The two previously held different views or details surrounding a possible transition period. The uk will work on a range of Brexit Issues when it publishes strategy papers, in response to criticism how prepared the uk negotiating team has seemed compared to eu counter parts. Theresa may and colleagues return to westminster today after the summer break this is for the light hearted. Famous french comedy festival under way in he did in broe, and party leader has stolen the show with alex unleash. If that was not surprising enough, his first guest was david davis, he introduced as next and perhaps last Prime Minister of United Kingdom if you get a chance, check out what we have online on that one. It shows politicians have some sense of humor, at least some sense. In other news, uk Fund Managers reducing domestic buyers in the latest portfolio monitor report, found that conservative and aggressive model portfolios were diversifying allocation away from lower yield and fixed income equities at home. Here to discuss the report, matthew riley, head of research as Asset Management. Thank you for your time. Whats this about . Reducing reliance on home. Why . Weve seen that after brexit voting june 2016 the prognosis for the uk economy has been on downward trend whereas other regions have been more positive. We see that uk advisers, theres definitely evidence when they think about allocations, theyre reducing allocations, given the potential down side risk, increasing allocation to other areas, particularly global managers. We know about the in verse relationship between the pound sterling and ftse. When the pound sterling plummets, the ftse goes up so much of the ftse companies are, you know, earners abroad. Wouldnt that play into rationale of playing in the uk it would, but advisers are taking a more global view. I think that after the brexit vote, uk economy did better than expected and people potentially held on. Now that news is more negative, theres some evidence, it is unclear because theres a lot of different views on the market, some evidence that theyre reducing uk allocations. Theyre also moving out of fixed income space in a broad sense. Why is that . Is it because were seeing global tightening trend or other factors . Simply valuation the main move from fixed income has been in last few years hearing people are afraid of duration. First move that happened is away from government bonds, into higher yielding corporate and high yield securities. Now with high yield securities, we are seeing further moves into other types of assets, main one being alternative strategies that can potentially give zero duration risk, play around different areas of the market, make money wherever the market goes rather than take direction on whats going to happen with fixed income. What are the alternative strategies that offer such little risk but so much reward potential . Typical strategy would be Something Like absolute return fund several big funds that uk investors are invested in, tend to be multi strategy, means they have lots of different ways to make money tend to be low risk, low returning. Perfect substitute for fixed income. Youve got investors fleeing the uk if you will, fleeing guilt because theyre concerned about Property Markets, and weve seen news of falling prices, seen brexit uncertainty. Do you think this is temporary flocking away from uk property or is this longer term issue difficult to say. I think theres a lot of uncertainty, geopolitical uncertainty. Market policy is quite low i would expect investors to come back to property but in the interim period the biggest move weve seen since brexit is reduction in allocation due to well known manufacturers. Inflation is a big concern in the uk, in the month of june saw the inflation print fall seems the hawks were given a reprieve how is this being reflected when it comes to asset allocation, when it comes to index or inflation linked products . Weve seen slight reduction in allocation and inflation linked bond funds in the recent quarter, somewhat surprising because after the brexit vote, there was a big inflow, more than a billion pounds flowing to the sector the initial thought was inflation would rise because they would import inflation. Recent numbers are flatter thats potentially reflected by investors having pause in this area thank you so much in other news, german socialist candidate Martin Schultz launched a stinging attack on the Auto Executives saying theyre putting the industry at risk speaking to broadcaster, accused managers not doing enough to plan for the future, described them as, quote, irresponsible. This follows allegations that germanys auto firms have operated as a technology cartel for the past 20 years. Earlier this month, german car makers and politicians agreed to cut emissions by updating the software of over 5 million cars. And Angela Merkel kicked off her election campaign, attacking the Auto Industry, accused managers of harming the sectors reputation translator parts of the industry played, when i say the industry, i mean leaders of management, of course. The former chancellor responded by criticizing merkel for going on holiday rather than chairing talks with car makers speaking to a swiss tabloid, said she should have taken a stronger approach. The eu set to announce tighter controls on takeovers of European Companies by Foreign Investors according to Financial Times. Report says the Commission President will outline rules to bring european policy more in line with that of the u. S. Amid concerns about the amount of China Investment into europe and particularly key sectors like energy. Interesting to note in this whether any reports about tie between chinese automakers and investors and fiat will go through. Peaceful solution to unrest in venezuela is possible, according to the u. S. Vice president mike pence he made comments on a visit to colombia after trump signaled possible military intervention mr. Pence did not rule out possible Oil Sanctions on venezuela. We are close to wrapping up the show before we let you go, quick look at u. S. Futures. We expect strong gains at the start of trading dowjones could jump by 118 points, adding onto small gains of 14 points we saw friday s p 500 up by 15 points, nasdaq set to open to the tune of 43 in the green. European markets are firmly in the green. Rebounding from loss last week thats it for todays show carolin roth Worldwide Exchange is up next. Thank you so much for watching theres a denture adhesive that holds strong until evening. Fixodent plus adhesives. Just one application gives you superior hold even at the end of the day fixodent. Strong more like natural teeth. Strong data out of japan propels stocks higher. We have the monday market setup straight ahead. Trade war coming President Trump expected to launch a crackdown on china today. Live in beijing with reaction. And the box office blues, new numbers show just how slow things have gotten at the movie theater. It is monday, august 14th, 2017. Worldwide exchange begins now. Good morning, welcome