Good morning its thursday. We have another jam packed show for you. Lets kick things off with a look at the European Equity markets. We are fairly even steven. We are looking at a 0. 1 decline for the stoxx 600 this morning weve lost a bit of steam in todays trading session after three days of gains. Lets look at the european markets one by one the ftse mib in italy hanging on to some marginal gains elsewhere, the xetra dax, cac cac seeing small declines. We have plenty of data out today in the form of july retail sales, eurozone inflation and the ecb minutes. When it comes to the sectors, were seeing once again basic resources leading the charge up 0. 6 , this comes on the back of strong gains in that sector yesterday on the back of chinese construction spending. Today metal prices are flying once again lets come back to the big story of the day and of the week President Trumps two big Business Councils have been disba disbanded. The bosses of some of the top u. S. Corporates decided together to end their associations prompting trump to bow to pressure and pull the plug several executives and labor leaders already left to trumps response to the violence in charlottesville. The White House Press conference where trump stuck to his both sides rhetoric was the last straw for members. Kristen welker has more on how the councils fell apart. Reporter facing a fullscale rebellion by the very ceos he once called colleagues, President Trump announced on twitter today hes disbanding two of his advisory Business Councils rather than putting pressure on the businesspeople of the Manufacturing Council and strategy and policy forum, i am ending both. Thank you all. The president trying to get ahead of a mass exodus from both councils eight of the Business Leaders previously announced they were out because of the president s reaction to charlottesville after mr. Trump again equated White Supremacists with counterprotesters yesterday. Not all of those people were neonazis, believe me. Reporter the latest upheaval began this morning after Conference Call with members of the strategy and policy forum which resulted in a decision to disband. They then called the white house with the news. The president dumping those Business Leaders publicly before they had the chance to announce the decision the ceos releasing their own statement today. Intolerance, racism and violence have absolutely no place in this country. Jpmorgan Ceo Jamie Dimon writing, its a leaders role in business or government to bring people together, not tear them apart. The nations top labor leader, richard trumka, also lashing out. We believed that the symbolism of being associated with that spirited defense of racism and bigotry was just unacceptable. Reporter its a punch in the gut to mr. Trump, a billionaire former ceo who ran as the jobs president. He needed Corporate America to back his claims that he was a businessman president who could get things done with their help. Now they have turned their backs on him reporter the president s surrogates largely silent. The Vice President rushing to his defense. What happened in charlottesville was a tragedy, and the president has been clear on this tragedy and so have i. Reporter both former bush president s saying, in a rare joint statement, america must always reject racial bigotry, antisemitism and hatred in all forms. Pathetic, isnt it . Just pathetic. The president of the United States needs to condemn these kind of hate groups. Reporter a cascade of criticism that could further stall the president s agenda. I think the entire legislative agenda is imperiled by calamities that are all of that was Kristen Welker reporting. Tim cook has become the latest Business Leader to criticize trumps response to the violence in virginia. In an email to employees, he called the events repulsive and said his firm would donate 2 million to help counter hate groups lets talk to our panel of guests rolof solomon and rika disenta join me around the desk. We heard in the report from washington that this is probably going to stall the reform agenda of donald trump. So far we have to the seen much. Not even healthcare what about tax reform do you think that will happen . Lets be clear. This is a moral issue a political mess, but we dont think it will change anything in terms of economic fundamentals the agenda will be postponed, but i dont think a lot of investors were kind of expecting anything anymore the glass was no longer half full expectations are low but frankly it doesnt really change the story thats a sanguine view. I think at the start of the year everyone was banking on, you know, deregulation in the Financial Sector on that big tax reform and Infrastructure Spending we were expecting 3 to 4 gdp figures. I feel like the narrative has changed. That was at the beginning of the year since the beginning of the year the market has given up hope on that weve seen that reflected in the dollar the dollar suffered quite a bit from all the chaos thats happening in the white house equities not so much i know youre a fixed income person, but treasuries, too, yields have been under pressure quite a bit. Why has that been reflected more in the fx and income space rather than equity space weve seen the dollar react to recent comments and events coming out of the administration, politics in the United States. But what were seeing in the fx space is its a broader picture than u. S. Politics were no longer seeing that divergent Monetary Policy on a global basis so no longer is it a story of the fed hiking and global Central Banks easing but more of a convergence from Central Banks around the world thats impacting the dollar. Well come to the fed in a bit. We got the fed minutes last night. Well talk about that. When it comes to the dollar, do you think much of this is down to the lack of inflation pressure or to the lack of reform progress on the part of the white house . We think the dollars recent moves have been more related to whats going on in the white house than it has been in terms of what well see from a Monetary Policy perspective. Thats on the dollar side. If we think about the rate space, our key focus there is the fact that markets seem to be underpricing the likelihood that we could see rate hikes going forward. What does it mean for your investment scenario . You say not too much has changed. Do you still like u. S. Equities at this point even though evaluations are toppy . I would add one point to the comment made earlier the bull market is taking its cue from the economy, and the prospect of earning bgs lsins b. Earnings are flattered bay weak dollar, that certainly is a nice effect at this point in time, but i cant see that margins are going to go upwards if Economic Growth is going to stall. Margins the odds of margins going higher is low, but margins have been stable at a high level for quite a long time the reason that margins will be coming under pressure has to do with wages we dont see a lot of wage pressures yet. The fed made it clear they dont see it either. Theres something bubbling, but no big wage pressure margins will stay higher for longer what i hear from a lot of people from around the desk is that the u. S. At some point is going to underperform. Europe has a lot further to go that is the consensus view at this point do you agree or disagree completely agree. Margins in the u. S. Are at cyclical highs margins in europe are on average like that. Monetary policy will stay easing longer in europe than in the u. S. You work in a field thats not loved much now, the fixed income field where do you see opportunities where do you see value in the space . Certainly its an interesting time for fixed income investing. One key is to be nimble and recognize its not just about the Government Bond space. We think there are a lot of opportunities in spread sectors, places like emerging market debt, for instance where do you see value in the fixed income space i concur that there is still relative value in Investment Grade credit and in high yields, but its a relative game, not an absolute game. How do you deal with the volatility which made a remarkable comeback last week on the back of the north Korea Tensions we dont know thats here to stay lets assume with the debt ceiling debate in september and october and more of trumps comments day in and day out, that will be here to stay. How do you protect your portfolio against that its difficult. Basically what were saying is that volatility has been ringed by Monetary Policy, and all the other events, big as they may seem, dont change the fundamentals as long as Monetary Policy doesnt change, volatility is likely to stay low whats your best bet on volatility volatility, we expect it to pick our focus is the timing of that we dont see the timing of the trajectory shifting until the end of next year in the meantime we think we can be in a relatively low volatility environment thank you very much for those comments well continue that discussion and talk more about the fed in a minute cnbc has obtained insider details about the collapse of trumps strategic and policy form head online to read more about the three female ceos who initiated the process that led to the groups demise. Email the show on anything that youre seeing whether you have any questions to the guests. The address is streetsignseurope cnbc. Com as always, you can find us on twitter, treetsignseurope cnbc i love reading your tweets you can reach me at carolincnbc. Coming up on the show, fed divided. July minutes shows policymakers pushing for cautious on rate hikes, hawks believe its risky to divert from normalization back in two. 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. 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. Welcome back to the show lets tell you about some Corporate News novo nordisk has announced a new diabetes drug succeeded in a trial. It sets the stage for the drug to become the new therapy for type ii diabetes the once weekly drug was shown to be significant in reducing glucose levels and lowering body weight like for like sales at kingfisher fell nearly 2 in the Second Quarter the owner of b q and screwfix in britain said a weaker French Market and poor sales dragged down numbers kingfisher said it remained cautious on the second half outlook. Vestas maintained its 2017 outlook as Second Quarter results came in below forecasts. The danish wind turbine firm kept its fullyear outlook. Earlier we spoke with the vestas ceo. Take a listen. It would be better in my opinion if u. S. Would stay in the paris agreement. On the other hand, what drives the market and will drive the market up beyond 2020 is the current structure in place in the u. S. That has the broad bipartisan support support. So that drives the market through the 2022 time frame. We dont expect changes in that. U. S. Wind employment actually increased nine times faster than the average employment increase in the u. S i think its Good Business ciscos fourth Quarter Results show a seventh consecutive fall in revenues figures for its closely watched security business showed growth of 3 , down from 16 a year ago that has raised concerns over the companys efforts to transform into software focused company. Shares fell more than 2 in afterhours trading. Josh lipton has the details. Cisco reporting 61 cents on revenue of 12. 1 billion. In terms of product revenue performance, switching and routing revenue decreasing 9 . Deliberation down 3 wireless and security increasing 5 and 3 . Looking ahead, cisco forecasts eps between 59 and 60 cents and revenue to decline between 1 to 3 , in line with forecasts on the Conference Call analysts asked Ceo Chuck Robbins about the switching business heres what he said. If you think about our guide last quarter, we anticipated that we also knew at the time that we were going to be making the announcement in june about the new platform so we anticipated these results. Any time we do a major platform announcement, particularly in switching, there is a period of time where our customers pause, because they want to understand what this means. So we did see a pause. We actually anticipated it but we saw great traction with the new platform another topic on the call, spending by the u. S. Federal government remember, that was called out as a sore point last quarter. Robbins saying starting in early may cisco was seeing more clarity and improvement there but facing uncertainty when it comes to spending by the fed josh lipton, san francisco. Chuck robbins, the ceo of cisco will speak to cnbc later today at 15 10. We have to talk about the fed. Minutes of the feds july meeting show policymakers divided over the timeline for future rate hikes. Some appeared wary about weak inflation, others are eager to get on with normalization. Let me bring back in my panel. Are we any wiser about how the fed feels about this conundrum which is the broken phillips curve . Not surprisingly they acknowledged the weak inflation weve seen recently. We saw that divided committee in terms of whether this is an idiosyncratic event or more structural that we have this low inflation environment what were looking at is the fact that the market really is not pricing much likelihood at all for a december rate hike its less than 40 in our view, while we will need to see inflation tick up from current levels, we think theyre in play for december they have a dual mandate some on the fomc claim that the weakness in inflation is just temporary its down to, i think, mobile tariffs, declines in mobile phone prices and prescription drugs. Thats the line from janet yellen do you agree with that view . Do you think theres a bigger underlying issue in the u. S. Economy, especially when it comes to wages wages this time around around after the financial crisis will be more depressed. When we look at the growth picture in the United States, which remains solid, and we look at the labor dynamic, which is very strong and improving, we do think that will ultimately put pressure on Wage Inflation we think its a matter of time and that over the medium and longterm we will start to see Wage Inflation pressure kick in. So we expect the fed to hike rates in december, pending inflation, with probably a couple hikes next year in order to get to the zero percent real yield, even if we have a fairly benign view of inflation then they might pause and see where to take it do you think the market is adequately pricing in what the fed might do in december the dollar still seems low same for treasury yields i think the 40 probability for december is on the low side. What i find more interesting is theres only one rate hike price for the next 18 months, which im sure thats too low. Im not sure about the december one. Thats even. But one in 18 months is too low, despite the fact that structurally inflation will stay low, but you have cyclical pressures and cyclical pressures are slowly building. Its not just the fed that is in the process of tightening, its also the ecb. Yesterday we got the leaked reuters report saying the ecb is not going to give new signals at the jackson hole symposium i guess well have to wait for september for the next press conference whats your best Case Scenario when we expect tapering from the ecb . Best case is that draghi would be announcing something in jackson hole given the strength of the euro recently, and the hints they have made themselves, its only likely that theyll postpone it and talk down the taper. What about you . Where do you sit we dont think it necessarily makes a huge difference whether they announce tapering at jackson hole, september or october meeting. The key is that we expect it to start at the beginning of 2018 we slightly revised our forecast we thought it would be more of a sixmonth process. We think that may be extended and take all of next year. Were looking for draghi to comment on the euro and the vent strength and the impact that could have on inflation. Lets talk about the last big central bank in europe, the bank of england we did get good wage data yesterday. 2. 1 in the last three months. Thats encouraging inflation is low the real squeeze on wages is going to be falling somewhat would that be, you know, enough of an inscentive for the boe to hike we dont expect the boe to hike soon. A lot of the data is mixed we think the bank of england will be on hold. Whats your key trade at the moment your key recommendation . I think the key recommendation will be to stay short duration, especially if you see Central Banks tapering, then eventually that takes out a bid for bonds. Then you see bond yields reacting first eventually youll have to be careful with credit as well. Same question to you. I stick with what i mentioned at the start, emerging market, local currency debt. Still value and strong fundamentals all right thank you both in other news, wienerberger posted a 7 rise in first half pretax earnings. Revenue rose 4 in the period. Wienerberger confirmed guidance saying they expected fullyear operating profits to rise 415 million euros. The ceo will join squawk box tomorrow at 8 30 cet a second chinese carmaker has come out to say it is not longing to guy Fiat Chrysler shares in fiat has risen in havent days on reports that major automotive dealers in china have offered exploring buying the car giant, but geely and dongfeng said they will not be making bid. Others could be interested but significant regulatory hurdles block the road. President trump pulls the plug on two Business Councils. More on that story after this short break. 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. 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 street signs. Im carolin roth these are your headlines business boycott President Trumps two Business Councils disband as ceos of blackstone, jpmorgan, pepsi and gm protest his failure to denounce White Supremacists. A divided fed. July minutes show some policymakers pushing for caution on rate hikes due to low inflation, while the hawks believe its risky to divert from the path of normalization france puts the screws to kingfisher as that market dents sales with the Home Improvement retailer also reporting a slowdown in the uk sending shares lower good morning if youre just tuning in, waiting for retail numbers for the uk for the month of july we have uk retail sales growth weakening broadly as expected in the month of july, up by 0. 3 month on month versus a june print of 0. 3 . The reuters poll was for a print of 0. 2 . Just a tad better than expected. You see that pike in cable sterling dollar up by 0. 1 on the day versus being flat just a few seconds before the data hit at 1. 2897. When it comes to the European Equity markets we are underwater today after three days of gains on the european markets. Ftse 100 off by 0. 1 the xetra dax also falling by a similar percentage same declines for the cac 40 we are still seeing that basic resources are the one sector that are seeing some outperformance, but this is down to some rises metal prices in china. In the currency space, the dollar is still a bit under pressure when it comes to some other big currencies like the japanese yen it was hurt by two things, fed minutes but also the chaos happening in the white house with the collapse of the Business Councils. And that may or may not be reflected in u. S. Futures. Lets take a quick look. Were seeing when it comes to u. S. Futures still a couple hours away from the trading seg. There you go mixed open is what were expecting. The s p 500 flat dow jones set to add one point the nasdaq off by 6 or 7 points, this after stocks in the u. S. Managed to close with small gains yesterday. The dow up by 0. 1 the s p 500 gaining 3. 5 points the major averages did pull back on the back of the news that were just going to recap for you. President trumps controversial ceo councils are officially over the bosses of some of the top u. S. Corporates decided together to disband prompting trump to bow to pressure and pull the plug several Business Leaders left over trumps response to the violence in charlottesville. Lets get out to Edward Lawrence who joins us once again bright and early from washington. It seems President Trump is increasingly isolated. He prides himself with being close to the business community. Now theyre fleeing from him exactly hes kind of out on an island with the remarks he made so many Business Executives were leaving those committees or those Planning Councils that the president just got ahead of it and disbanded two of them. The president there was a vigil last night for the victims in this. The president tweeting about that vigil saying heather heyer, the victim in charlottesville was a special young woman. Saying she will be long remembered but that sentiment was drowned out by the chorus of people who are condemning the president s comments that both sides were to blame for the violence in charlottesville, virginia. We could not find one republican lawmaker to come on television and defend the president s remarks related to this case democrat nancy pelosi saying the president has lost the sense of whats right and whats wrong. Also even his own cabinet members were distancing themselves from the president. Secretary of state Rex Tillerson condemned the violence that happened there also it has no place in American Society at all so again the president seems to be isolating himself as now tomorrow he will go to camp david, meet with top advisers to talk about what to do in asia related to a number of different topics, including north korea. Hes trying to get back to the agenda but seems to be getting in his own way you talk about isolation. How is that playing out within the white house and the cabinet . What are you hearing there it seems like not even general kelly can constrain what trump is saying. The Washington Post is reporting this morning that general kelly, the chief of staff, is deeply frustrated and dismayed over this were learning that staffers inside the white house are looking for an exit strategy we have not seen mass resignations, but people are talking about leaving this white house. They have just named an interim communications director. The last one didnt go so well, lasted six days. So this white house definitely has some turmoil the president trying to turn the page but again, stepping on his own message of his administration. So far it hasnt been seen in the economy. But, you know, going forward, well have to wait and see edward, thank you very much for that report out of washington President Trumps top trade adviser has said the u. S. Is not seeking a mere tweaking of the north america Free Trade Agreement as talks for renegotiations kicked off. On a contentious first day of talks, u. S. Trade representative Robert Lighthizer echoed the agreement that led to the quadrupling of trade between the three countries has failed many americans. Kayla tausche has more. Reporter day one of nafta renegotiations showed the three countries have quit disparate views over how the agreements played out canadas foreign minister called nafta an engine for jobs and growth mexicos secretary of the economy called it a success for all parties. The u. S. Trade representative said the deal while beneficial to u. S. Farmers cost 700,000 american jobs. Thats a view that echoes President Trumps. I want to be clear that he is not interested in a mere tweaking of a few provisions and a couple updated chapters. We feel that nafta has fundamentally failed many, many americans, and needs major improvement. That view struck some diplomats on site as harsher than expected. But not altogether surprising considering President Trump has threatened to exit the agreement if it does not benefit the u. S his main issue is a trade deficit with mexico, and a goods deficit with canada. Something that minister freeland said is not a bad thing. Canada does not view trade surpluses or deficits as a primary measure on whether a trading relationship works nonetheless i worth pointing out today our trade with the u. S. Is balanced and mutually beneficial reporter a u. S. Trade official said they would try to balance trade deficits throughout the new agreement, while describing the goals of this first round as quite ambitious. Kayla tausche, cnbc Business News washington. Target shares closed more than 3 higher after the company beat profit expectations during the Second Quarter the american retailer also bucked the trend of four straight quarters of comparablestore sales declines, this on the back of same store traffic. Geron martis joins us bright and early this morning from new york were franticly looking for companies that are amazonproof. Is target one of them . Well, its definitely evident the second quart their retailers have not been lazy about their survival theres a transformation in the air starting with target who reported yesterday saying they will be introducing smaller format stores. They already opened one in tribeca in new york city that offers sameday shipping in order to compete with amazon the Department Stores are also closing their weak performing stores and reallocating that money into digital and ecommerce then youre seeing that brands like ralph lauren and kors, theyre pulling merchandise out of the stores and reducing exsessie excess inventory the one strategy that is consistent is more and more retailers and brands are offering less discounting in order to entice the shopper to pay higher prices and improve margins. So target was one of those retailers that weve seen that saw a big improvement yesterday in terms of samestore sales and earnings, and is bringing those shoppers back into the stores. Thats the on viable strategy at this point, if you dont want to lose out on margins the ceo of Dicks Sporting Goods a csaying the sporting sector i in panic mode because discounting continuing i assume the bulk of retailers will continue to discount . You can expect to see more discounts, however we have already seen this strategy has already worked for ralph lauren and michael kors that already beat expectations. Gap is expected to report today. Even though they introduced the traditional 40 to 70 december counts, we saw this time around they excluded some merchandise that resonates better with consumers, that are stronger in demand, like the jeans and athletic wear. So we will see today if that strategy is consistent and does work for other retailers other than just brands like ralph lauren and michael kors. You mentioned gap will be reporting today, also walmart. It will be the battle of the giants, walmart against amazon how will walmart fair . Theyve been pretty busy when it comes to tech investments. Do you think organically they can do just as well or are they dependent on those tech investments . Our data suggests that they did experience an increase in both instore traffic and online theyre definitely using technology in innovative ways to drive shoppers in. They just released a mobile app called scan and go, that allows consumers to scan the merchandise as theyre putting them in the cart to offer them a seamless and more cob eveve conn fast checkout experience they are also competing with Amazon Grocery with an automated grocery kiosk in the store and doing other campaigns as well, like order online and get a discount when you pick up in store. They also reduced the limit on their free shipping. So theyve been very handson in bringing in the shoppers, we expect the early estimates suggested that walmart has seen a pick up in both mall and online traffic just finally, we talk so much about the new emerging experience economy, restaurants would benefit from that at the cost, at the demise of some of the mall stores. How are you feeling about the restaurant space actually consumers are already about experiences over things when you look at the samestore sales index for restaurants, theyre expected to post a 2. 7 samestore sales stronger than last years 0. 6 coso consumers are out eating more often instead of hitting the malls and buying more merchandise. Thats an area of more strength, the restaurant sector. All right thank you very much. Still coming up on the show, we hear from esomeone on why businesses must take ai seriously. Thats coming up 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. I am totally blind. And i live with non24, a circadian rhythm disorder that can throw my days and nights out of sync, keeping me from the people, places, and things i love. The people i love have always been there for me. And now, im there for them, too. Talk to your doctor, and call 8442142424 to learn more. This week were looking at how robotics and Artificial Intelligence will change business a fear is that robot also takeover many jobs, but our next guest says ai will always be in tandem with human intellect. Tim garn steve garner and arjun car pull jo carpal around the desk we hear that ai is unstoppable and will do more good than harm. Do you agree with that absolutely i agree. I think ai is here today its real. I think its being fueled by Cloud Computing. Today we have access to unbelievable amounts of computing power. Effectively infinite storage at a price point that is so compelling that it is allowing developers to do certain thipias speed alone is not enough. Its allowed effectively computer programmers and technologists to build this illusion of intelligence by creating algorithms that can scan phenomenal amounts of data and come back with suggestions and patterns that we would never see on our own therefore enhance the human decisionsmaking process. Youre keen on making the point its not going to be man versus machine, but man alongside machine, and that intelligence by combination of the two forces will be augmented, will be compounded. Why do you think that, you know, computers on their own cant do better than humans i think computers are phenomenal, ai is phenomenal at analyzing huge volumes of data and coming back with pattern recognition. Theyre not so good at novel ideas. Let me give you some examples. In medical care, we see that on retina diagnostics, degenerative diseases in retinas, cancer scans, a computer can pick out 90 , 94 of problem areas. Where the medic or the rad radiographer is in the 80 area. When you put the two together, you get up to 99 . Why . Because the human is better at picking out false positives, something the computer is not good at. The combination of putting Artificial Intelligence alongside a professional makes them so much more powerful how far do you take the man and machine analogy . You have had Public Comments from the likes of elon musk and hes wrarn r. Waarned about thef ai, and said humans need to merge with ai, he is working with a Company Called neuralink, is that feasible and is it necessary . I think theres a lot of Science Fiction in this. Whenever new Technology Comes along, people extrapolate way out into the future and come up with scenarios in this industry, the Tech Industry tends to overestimate what happens in a year and underestimate what happens in ten years. I think machine human combination of physically merging is way out into the future im more interested in what we can apply today to business and how we can drive our own businesses to be perfectly candid, i think if youre a Business Leader today, or divisional head or entrepreneur about to set up a company and youre not building ai into your thinking and into your plans, youre making a major mistake. Its cutting across sales, marketing, customer service. I talked about before medical diagnostics, every single endstry and job fuendst en industry and job function is being effected by ai we talked to s. A. P. , sal salesforce, google some have bigger budgets than others is tuit ultimately the company with the biggest cash spend that will be the leader in the field . Not necessarily technology has taught Us Innovation has come from all sorts of angles. Theres some incredible Startup Companies in the uk that were seeing in Artificial Intelligence and traditional players as well. The Biggest Tech Company in the uk, sage, theyre Building Technology into Accounting Systems of all things. Making them intelligent to interact with, doing amazing innovation there weve seen the Big Tech Companies get bigger the likes of apple, google, facebook its difficult for start ups to get near them. If they do, they get bought or destroyed. You mentioned Cloud Computing. Theres probably three Major Players in the Cloud Computing space, that is a fundamental part of ai so is it the cloud players, Platform Providers that end up winning . Not necessarily you do need to access Artificial Intelligence over the cloud. I dont think anybody is talking about installing this in your home computer under the desk those days are long gone most of these platforms are open, open to other vendors. Salesforce, my former employer, has 3,000 companies that build apply keications around the salesforce ecosystem, using the platform to get out to customers. Stick around for just a moment Steve Garnett from salesforce. We want to show you this, in the poll were asking you what jobs will be hardest hit by automation what do you think . I think everyone will be impacted, but i spin on the positive i think positively impacted not negatively journalists certainly not arjun and i will keep our jobs forever. We wont have robots sitting here, hopefully not. Steve, thank you very much for your time. Appreciate it. If you want to take part in that tradpoll, head to cnbc. Com ten cent posted their best quarterly result ref knew rose nearly 60 , well above analyst expectations the increasing popularity of tencents honor of kings game, the top grossing mobile game in the world, helped drive games, lifting tencent shares to a record high. Most investors are feeling bullish about alibaba as the ecommerce giant prepares to report Quarterly Results before the opening bell in new york the companys market value soared in june after the Ecommerce Firm forecast revenues up to 49 in the 2018 fiscal year. Arjun kharpal stuck around the desk with us to talk about the numbers and what we can expect if tencent is a guide, these numbers will be blowout numbers, too . Any should be analysts are looking at a revenue rise of 50 , operating profit up 38 . Very large rises in the numbers. Thats because alibaba has been growing very fast. Its been expanding beyond china trying to look into other mar t markets. Mobile is growing extremely strongly as we saw from tencent numbers, numbers for mobile gaming surpassed pc for the first time. At the same time alibaba has some promising young businesses. One of those is Cloud Computing. That in the last quarter grew 103 analysts are continuing to expect high double digit if not triple digit growth there. At the same time the Digital Media and entertainment business which is games, movies, that was over 200 growth in the last quarter. These account for small amounts of revenue the excitement is that these are business in which alibaba invested billions of dollars into these could be huge drivers of growth for the future and in the shortterm i have to say, this sounds impressive equally impressive is the share price gain this year, up more than 80 , some of the articles weve seen over the last couple of days indicating b. A. T. S. Are outperforming the f. A. N. G. S. What could go wrong here expectations. If they do not meet the extremely high expectation, thats a problem weve seen it with u. S. Stocks theres been High Expectations in the past few quarters, if they missed mildly goingal is a great example of that just a marginal miss, that was it shares fell the next day expectations are high. The multiples the stock is trading son beyond the f. A. N. T e trading on is beyond the f. A. N. G. Stocks. So any negative perception could be cause for pullback. Could there be risk in the mobile entertainment business . Where is the biggest risk . Core commerce has grown 47 in the last quarter. That needs to continue if the core Commerce Business which makes up the majority of the revenue does not grow as fast as people expect, thats cause for concern. Also because the businesses are so young, cloud, gaming, movies, if theres any soin of slign ofa slowdown, thats worry alibaba said in that Digital Media and entertainment business that they will invest 7 7. 2 billion in the next three years. The danger is the level of investment, if it does not meet returns, its a big problem. Did you know that alibabas market cap is almost 90 that of amazons 87 . Thats the number to write down and tell your friends about, i guess. Its cool these days its massive. Arjun, thank you very much for that arjun kharpal, our technology correspondent. Before we wrap up the show, lets show you what u. S. Futures are doing. Theyre looking now more negative dow jones seen off by 10 points. Nasdaq could lose 12 points. S p 500 slated to fall by less than a half point after stocks did manage to close with small gains yesterday. The major averages did pull back as trumps Business Councils disbanded or collapsed today the focus is on walmart and gap earnings the Retail Sector has seen a lot of trouble of late obviously because of amazon, thats the trouble spotted in the markets. Thats it for todays show im carolin roth, Worldwide Exchange is up next well see you same time, same place tomorrow byebye. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost, so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. President trumps Corporate Council collapses. The latest on the story straight ahead. Markets reacting notable moves in the dollar as washington turmoil comes into play we have a round up of market action. And big earnings on the deck from the likes of alibaba, walmart and gap. Well tell wlau you what to loor when they report its thursday, august 17, 2017 Worldwide Exchange begins now