Transcripts For CNBC Street Signs 20240714

As the British Asset manager posts 16 billion pounds worth of outflows in the first half despite some strong market gains. And china sets its yuan fix at a slightly weaker than expected level, the trump team plays down fears of a drawnout trade war. The nato secretarygeneral tells cnbc the tension goes beyond trade. We need to assess security consequences for all of us of the rising military power of china and also see that china is coming closer to us in europe, in africa. A very warm welcome to street signs. As you can see, a fragile calm taking hold of markets today in europe this follows a mixed session in asia and a rebound on wall street the stoxx 600 trading about 0. 7 higher the calm really has come on the dak back of stabilization in the yuan the pboc fixed the Reference Point for the yuan slightly weaker than expected, but overall no more escalation in the u. S. china trade tensions and currency tensions. We have plenty of corporate earnings coming through today in europe lets look at the markets and see how the different regions are faring green across the board strong gains in the dax, up nearly 1. 3 . Leading the charge across european markets we have some earnings from banks coming through, basic resources. So a lot for investors to digest on the corporate front banks under pressure we heard from abm, commerzbank, unicredit displaying the impact of lower for longer when it comes to rates and what this is diddi i doing for profitability. The picture for europe is green. There are banks under pressure as i mentioned relative to the best of the group. Banks up a half percentage point. Were seeing pressure for some of the names reporting basic resources in the red down 0. 15 there we heard from glencore overnight. They have reported that 32 drop in first half earnings, due largely to lower prices for copper and cobalt. The basic resources sector has been a key victim of the selloff driven by an escalation in u. S. china ftrade tensions in asia, no massive changes. Shanghai ended about a third of a percent lower. The hang seng ended up 0. 15 so this fragile calm followed a relative sense of calm in the asian markets. Lets talk about banks. Yu unicredit reported a jump in Second Quarter net profit thanks to the sale of its stake in finnacle bank, but the disposal of bad loans will accelerate in the second half. Commerzbank has warned itself target for higher 2019 net profit has become significantly more ambitious the german lender blamed a worsening Macro Economic and geopolitical environment but lower taxes helped it beat Second Quarter profit forecasts. Joumanna bercetche is in frankfurt outside the Bank Headquarters what did the bank say was the cause for the gloomier outlook in profits we have predominantly the macro backdrop which has been underwhelming to say the least when you look at german manufacturing data, lending slowing down and the prospect of lower Interest Rates in the eurozone xher bank is commerzbank is exposed it lower Interest Rates they got their Corporate Banking and retail banking, and both of those activities are very much geared to Interest Rates if you look at whats happened in the latest quarter, you will see theres a couple of developments which raise a few questions for investors, namely that their loan provisions have gone up to the tune of about 155 million euros. They have not given detail in the press release as to what that pertains to they have cited single cases this is one potentially problematic issue going forward. If a bank like commerzbank is starting to raise loan provisions, that raises questions about the macro uncertainty. I also talked about the Interest Rate environment so far whats interesting is the numbers are up 9. 5 Percentage Points on the year its a relative Positive Side in the report here. Namely because they have been managing to gain more customers on the private side and on the retail side of the business. Putting that altogether, investors are concerned about the guidance that theyre giving the fact that the loan provisions have gone up, and look the return on tangible equities, still 4. 1 thats way below other peers in the sector, which are returning tangible equity north of 8 , 10 , or striving to get to 12 still very much below competitors, and also the valuation is cheap to reflect the fact that people are concerned about where profitability will come from just one thing to add to this. The last Earnings Release for commerzbank came on the heels of the breakdown on the discussions between commerz and deutsches tieup. Since then theres been a couple other banks circling around commerzbank as potential acquirers. A couple names are unicredit ing said they put the talks to rest unicredit singled out commerzbank as being the bank where they are putting things on hoed so its interesting to see whether they raise this idea of inorganic growth, which is a trade term for a tie up an acquisition to boost that profitability. Certainly these are questions i will be posing to the cfo. I will speak to him right after street signs. Lots to contemplate here essentially the market is underwhelmed by these numbers. Operating profit is still down 26 for the first half of 2019 versus 2018. Thank you very much for running through those details. We look forward to that interview later on Sonia Forster joins us on the line and christopher is here in the studio. Sonia, we heard details why commerzbank thinks theyre struggling with net profits. Looking at the german Banking Sector more broadly, what is your view about the challenges the sector is facing i do think its a number of factors. Obviously already mentioned the lowrate environment, which is a particular drag on german banks, which have ample liquidity that is one factor also in the german market, the cost structure is relatively high and compared at least to certain other european markets, its more time consuming for the banks to reduce that cost structure. In addition you have to bear this mind that for the german private banks they compete to a large public Banking Sector, which are basically price leaders. So its difficult to push through significant price increases, notably in the segment, so all these factors play a role. There are also other factors overall the digitalization rate is relatively low in german banking. Theres a lot of cash used in the economy. A lot of small factors that all add up you have run through clearly the challenges to profitability and weve seen on the screens how the major german banks have performed in terms of the stock Market Performance i want to ask about beyond profitability challenges, are there systemic risks in the german Banking Sector that you think investors should be paying more attention to . Its difficult to tell in a benign environment, but the ratios look low. There are the typical factors that everybody is concerned about. Notably the sector commercial real estate, Leveraged Finance and the auto sector. We have to bear in mind the German Economy overall is geared towards exports. So all the geopolitical issues going on currently are impacting the German Economy nonetheless we believe that underwriting in germany in general has been relatively conservative i want to bring in christopher peele. What do you think of banks we heard longer, lower rates but its also one of the most unloved sectors in europe when i look at valuations is it an attractive space for you here well, to a certain degree its the graveyard trade the european banking index has been reasonably volatile over the last ten years its close to the lows when you look at it in comparison to the u. S. Financial sector, its underperformed. This is an area where it should be attractive. But the i believe that the Banking System the Banking Industry tens to follow the economy. The fact is the european economy is really struggling the dependence on the auto sector, export oriented, is a problem especially if one feels well have a hard brexit that will push more pressure back on the German Economy that economic weakness is a big part of the reason that the ecb is looking to ease further is there anything that the ecb could do that would make you more optimistic or more excited about the Banking Sector probably not. They already have negative rates. They have trillions of euros worth of european debt on their books. I think they played their last cards. What they really need is an uplift in the Global Economy and to export their way out of the Current Situation. Sonia, what do you think the low Interest Rate environment that we just talked about there and the challenges for the ecb in finding new tools, whats that meant for the behavior of depositors in germany . I mean, we have seen over the past years, we have seen a clear trend towards overnight deposits, a proportion has increased significantly. To that extent while higher rates are positive for banks, there is a fair concern that deposits might be priced in if there is a change in Interest Rates or temporarily that could be a negative impact from the shortterm nature of the deposit base we heard from many of the banks, including in germany, about this push to focus refocus portfolios back on the core strengths. Deutsche bank is trying to refocus towards its roots of being the bank for german corporates what do you think of this strategy is Deutsche Bank going to be able to prosper under this new strategy, refocusing on the german Corporate Market without a Global Equities business that, of course, is a complex question i could cite the example of commerzbank where we do see the benefits of that strategy having been implemented earlier you knowed earlier that Net Interest Income has been growing, which is the effect of very focused investment efforts in that area we do believe Deutsche Bank has the potential. We also think that trading has changed very much. Reducing equity trading, getting completely out of the business by itself should not necessarily impact the corporate business. But the problem is there has been a lot of headline risk that could be spilled over into other areas of the franchise, even though theres no direct connection thats something were going to watch going forward. Thank you very much for weighing in this morning and joining us Sonia Forster from dbrs. In other banking news, lower rates have made things more challenges for abn amro. They beat expectations still abn benefited from lower impairments on bad loans and an increase in interest income. The cfo gave cnbc his take on the current Interest Rate environment. Weve seen rate cuts, as you mentioned, thats driving rates lower along the curve. Low rates are not good for banks. So weve mentioned we see the margin environment getting tougher in the next year or two as those low rates work their way through our margins, which means we have to work hard on our asset margins, make sure our margins and lending to customers is solid. Assets under management at Standard Life Aberdeen Rose 5 market gains offset net outflow theres that totaled 15. 9 billion pounds over the sixmonth period adjusted pretax fell 6. 1 . The markets have come a little bit our way, when i look at the volatility around in the first seven months of the year, im pretty confident that we will have a sustained improvement in performance i come back to the fact that its not just the First Six Months of the year, its been Strong Enough to deliver something over the last three years. Coming up, u. S. Markets rebound as the Trump Administration says it wants talks with china to continue well bring you the latest developments on the trade war after this break when i was diagnosed with breast cancer, i went straight to ctca. After my mastectomy, i felt like part of my identity was being taken away. My team made me feel whole again. Cancer Treatment Centers of america. Appointments available now. Int easy. R Treatment Centers of america. 12 hours . 20 dogs . Wheres your belly rubs . After a day of chasing dogs you shouldnt have to chase down payments. vo send invoices and accept payments to get paid twice as fast. danny its time to get yours vo quickbooks. Backing you. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Welcome back to street signs. The yuan is trading weaker against the dollar in the offshore market but it remains shy of record recent lows. Chinas central bank fixed the currency under the 7 mark at a point that was close to expectations President Trump has played down the impact of a trade war with china on the domestic economy. He tweeted massive amounts of money from china and other parts of the world is pouring into the United States. The president also promised to maintain the federal governments Financial Support for American Farmers after beijing suspended purchases after u. S. Agricultural products white house economic adviser larry kudlow insisted that the Trump Administration does want negotiations with china to continue the president said many times that hes willing to negotiate were still planning on the chinese coming over here in september. The president was not happy with the progress when secretary mnuchin and lighthizer went over to shanghai. There were no ag purchases, as you know in the course of his tweets and conversations with the trade team, he would like to continue negotiations he would like to make a deal has to be the right deal for the United States. Beijing hit back at washingtons decision to label it a currency manipulator. Chinese authorities says the designation represented projectionist behavior china pointed out that the imf said it believes the yuan is in line with fundamentals eunice yoon has more details from the Chinese Capital reporter beijings priority appears to be to stabilize the yuan despite allowing the currency to weaken past the psychologically important 7 level earlier this week. The central bank today set the mid point slightly stronger than 7, even though the currency is at the weakest level in 11 years. Chinese authorities are wary of disrupting the markets further after china was labeled the currency manipulator by the United States. China called it unilateral protectionist behavior it pointed out china does not meet the u. S. s own criteria for the label. Larry kudlow believes the label fits theyre down 10 in the past year or so so that is something that we cant tolerate now, ironically, that actually lowers prices. That takes the pressure off any Consumer Price increases at home thats the wrong way to do it. That after all if china keeps devaluing its currency, than money will just flow out of there. Its already started reporter the bank says previous conversations with the imf they determined the Renminbi Exchange rate is in line with fundament fundamentals James Bullard says it is not realistic that the fed will respond to each threat in a titfortat trade war. He said the Current Situation was like a pandoras box and predicted further volatility he insisted the most recent rate cut was sufficient to counter growth concerns that may stem from the trade war were joined by christopher peel still. I looked at your notes you sent through in the lead up to this conversation you seem rather blase about the trade war. What gives you a sense of optimism that were in the later stages and that were approaching a deal i think works for the white house to get a deal done at some point over the next six months as you enter 2020, the run up to the next general election, and also i think the trade war is hurting china more than its hurting the u. S. So xi has every ep seincentive o make this go away. I suppose its handbags the way theyre calling each other names. Were getting to the end of i think were getting into the last sixmonth stretch and trumps reaction a couple days ago was focused at powell as much as xi. Lets not lift off the rate cuts he wants to keep the pressure on the fed because hes running for reelection so it was atwopronged tweet a the fed and the chinese markets. What would you say to investors who want to buy the dip . This is august. A lot of big decisionmakers are in the south of france, the hamptons you know, these are thin markets. Im not going to read a lot into price action in august the same way i dont read a lot of price action into the month of december i think well hit the Fourth Quarter and have an environment where the world is cutting rates. In the last week india, new zealand, thailand, the u. S. Cut rates. Rates are falling and growth by the imf forecast is running around 3. 5 globally, 2. 5 in the u. S. Its a positive environment for risk assets. There will be volatility, by that goes with the territory, especially in equity land. I want to come back to the fed. Its far too early to talk about the fed holding their nerve, but when you look at the pressure from the white house on the Federal Reserve, you look at the mixed data, you hear what mr. Bullard said yesterday about not responding in that manner, do you think there will definitely be a rate cut . Is there a way they can say we dont need this . I think the fed is rattled. They got rattled the end of Fourth Quarter when they did that rate cut in december. It was two or three weeks before there was an aboutface and said we will be data dependent. Were open to cutting rates. Ive never seen the Federal Reserve behave in that manner. So something, probably from the white house, has changed the way they look at their job so i think theyre going to be under pressure especially if you start to see weakness in the data, the nonfarm payrolls are big numbers every month between now and the end of december. One more question about global trade are there specific companies that you look at or sectors you look at as we expect smi chains to supply chains to shift around that you think over the next 3 to 6 months become attractive . Chinese technology firms, you know, they are almost equally as progressive as those in Silicon Valley so given the pressure that theyve been under, exposure to chinese tech through equity plays will be a good play if one believes that there will be a solution to the trade war. Is that because weve seen that slightly weaker chinese currency its probably, if one has a 12 to 18month time horizon, Chinese Technology firms are cheaper. All right thank you very much for joining us and weighing in on the conversation christopher peel falling cobalt prices and tough Economic Conditions in the democratic republic of congo have weighed on glencore well bring you details of the companys latest numbers after the break. Olay ultra moisture body wash gives skin the nourishment it needs and keeps it there longer with lockin moisture technology. Skin is petal smooth. Because your best skin starts with olay. Welcome back to street signs. Im willem marx. Im Julianna Tatelbaum. These are your headlines european equities rebound after wall street recovers from the worst day of 2019. But banks miss the bounce as unicredit, commerzbank are weighed down with low Interest Rates. Glencore shares hit a 2 1 2 year low after first half core profit misses estimates thanks to lower cobalt prices and copper production. Standard Life Aberdeen sinks as the British Asset manager posts 16 billion pounds worth of outflows in the first half despite some strong market gains. And china sets its yuan fix at a slightly weaker than expected level, the trump team plays down fears of a drawnout trade war. The nato secretarygeneral tells cnbc the tension goes beyond trade. We need to assess security consequences for all of us of the rising military power of china and also see that china is coming closer to us in europe, in africa. European markets rebounding following a move higher on wall street yesterday a little bit of a mixed session in the asian markets the gains are coming through across the board here in europe. The dax, as you can see here, leading the charge higher, up about 1. 14 . We had some big moves higher in the german chemical sector we are seeing a bounce in the auto space this is one sector thats been hit hard by the escalation in u. S. china trade tensions. Today seeing positive momentum coming together there. Every major region trading in the green this morning the only sector suffering this morning, basic resources with glean co glencore trading lower lets look at fx markets next. The euro trading just a touch light versus the dollar around that 1. 1192 mark the dollar is weaker versus the yen. The yen has been a key beneficiary of the riskoff trading weve seen now this morning the dollar trading about a quarter percentage lower than the yen. Thats the picture for fx markets. Lets look at u. S. Futures, we saw a rebound in u. S. Markets yesterday. Now were looking at a mixed start to trade here today. No major moves this sense of fragile calm seems to be taking hold of markets across the globe thanks. Glencore missed first half producti production the company said production will resume at mutanda once Economic Conditions sufficiently improve. We are joined by paul ranka. Is the winding down of operations, is that an indication that glencore is looking to step back from african operations overall i dont think they have any particular intent in order to reduce activity in africa, but theyre keen in order to improve the profit margin there in the face of a weakening price environment for copper and cobalt during 2019 mutanda in this case, their flagging up as being challenged in that regard so they would prefer to take it offline. We talk about the impact that the trade tensions between the u. S. And china have on commodities prices i want to talk about the control of Commodity Markets in the context of someone like the drc. Not far from that mine, mutanda, you have one that was sold a few years ago by an American Firm to a chinese firm the American Firm bought it with cheap loans from the u. S. Government ten years ago what im interested in, as we see u. S. Owned assets shifting to chinese ownership, what does that do to the control of the market for things like it, copper and cobalt . It makes a difference in particular flows between particular countries and regions. The chinese, because they have such Infrastructure Investment into africa as well, they also want to consolidate that by the Raw Materials that africa has available to them. Copper and cobalt in particular are things which just dont occur to a degree as a raw material in china. Theyre key elements as commodities for the battery revolution and autonomous driving vehicles and that thing for the next century china wants to be in that particular market as the dominant player. So theyre going to try to gain control of those Raw Materials wherever they occur in the reamen th region they are not willing to overpay for those, but if theres a willing seller as in this case, theyll take advantage of that what does it mean for glencore to be stepping back from copper and cobalt, two key inputs for the battery, for the electric vehicle industry . This is a huge demand driver but it hasnt progressed the way the Investment Community expected in terms of timeline. What does it mean for them to be pulling back its not a pullback as far as the overall strategy is concerned, but they need to get control of the margins in the drc they had operating issues, they made changes in management they are taking a strategic view and a tactical one that they will make some corrections here in order to improve operations if that doesnt work, then theyll have to think more about a subtraction later on as far as participation. Theyre hoping not to do that. Operational costs are one part of the margin equation. The other is the price of these commodities. I wonder how significant has the supply glut for cobalt been . Has the supply market gotten ahead of the demand when it comes to the ev space . On the shortterm the answer is yes, it has the expectation as far as the cobalt availability was a little bit underrepresented in that because the ability to scale up cobalt production in the shortterm in the drc has come about over the last 18 months. Now what is not clear is just how much in actual longer term reserve there may be in cobalt in this regard and the fact is that well need all the cobalt that can be produced anywhere in the world over the next two decades. Now, in terms of the glencore share price, today shares are trading lower on the back of this news. What do investors need to see from glencore to feel comfortable investing in this stock again . One, we saw an increase in the debt component again back up to 33 or so investors will want to see it, they got that turned back into a reduction mode again theyll want to see that the margins are improving across the various sectors in zinc and copper and so forth, that they were enjoying back 18 months ago. They want to see a return to that for sure. And they want to also see the optimization of operations it might include some sales of a few assets, just like we see in other companies. More broadly, when you look at some of these big mining firms, how do you think the difficulties between the u. S. And chinese governments weve seen in recent months affect their capex decisions at the moment the actual cost of capex has more to do with the expectations of both sovereign banks as well as corporate banks in the various regions where these mines will be developed. The relationship between china and the u. S. Has to do with orders and volumes of trade flow in these commodities but less about the actual cost of development of the mine. Surely the longterm decisions youve been making about trying to squeeze an asset will be predicated on the price. That price itself has to do with those flows. That is correct yes. The companies are looking for a consistency that they can model in order to satisfy the cost that banks will be looking for well leave it there. Thank you very much for your insight today. Thats paul rankin from vsa capital. Shifting to autos, porsche reiterated its fullyear outlook after posting a first tax first half profit of 2. 4 billion euros. Net liquidity rose to 1. 3 billion euro. Continental has posted a 41 drop in Second Quarter net profit the german car partsmaker has reiterated the fullyear outlook it revised last month. The firm said it would continue to cut costs in a sharply declining auto market. The continental cfo told cnbc he did not expect car production to pick up any time soon. We dont really see any indications that there should be a much better 2020 than what we expect for 2019. Our expectation is that more sideways development for production in 2020 and some years after is the is to be the expected scenario. Iran has asked the u. N. Secretarygeneral to condemn the u. S. Sanctions on the countrys foreign minister irans u. N. Ambassador said the move was a dangerous precedent. Na natos secretarygeneral said there would be a strong but open approach to iran and russia. Our approach to russia is based on what he can call a dual track approach if russia continues to violate the international law, we will see the assertive behavior in russia annexing crimea, then nato will remain strong, we have increased our military presence in the eastern part of the alliance, increased our forces but if they want to choose another path to engage in dialogue, were ready for that so we combine the message of strength with also striving for a better relationship with russia, engaging in political dialogue with russia i want to pick up on turkey many watchers are looking at what they believe is a crisis between turkey nato relations. There is no script for expelling or revoking membership of nato talk us through the concerns you have around the way turkey has been reacting to incursions in Northern Syria and this Russian Defense system turkey is an important nato aill ally we have seen that not least in the fight against isis in iraq and syria. Not many months ago, they controlled a territory as big as the United Kingdom and 8 Million People d they do not control territory anymore, thats not least because of the important contributions of tausurkey and other nato allies. Then the procurement of the s400 air Defense System is a challenge. Its a National Turkish decision, but im concerned about the consequences of that decision therefore i also welcome that turkey is also in dialogue with the United States on the possibility of buying u. S. System, patriot system, and also in dialogue with italy and france about buying european systems. On top of that, nato is now augmenting the air defenses of turkey with the deployment of the patriot system and the other system in turkey the cooperation runs much deeper than the question of the russian s400 system. That was the nato secretarygeneral speaking to karen earlier this morning. I want to bring fresh numbers out of the chinese yuan. The onshore yuan closed at 7. 0414 per dollar, the lowest level since march 25, 2008 we got fresh data out of the fx reserves and gold reserves fx reserves were at 3. 01 trillion at the end at the end of july, slightly higher than the reuters poll suggested gold reserves came in at 88. 876 billion at the end of the month, higher than the end june level so thats the fresh data and the Closing Price of the onshore yuan lets talk about another currency that trades several hours east of here, the kiwi dollar weakened to a 3 1 2 year low against the u. S. Dollar after the reserve bank of new zealand surprised markets with a bigger than expected 50 basis point rate cut the governor cited trade tensions and sluggish Global Growth for the sharp move which has set the benchmark rate at a record low 1 . Indias central bank announced a larger than expected rate cut the move is the fourth time the rbi lowered rates this year as it works to gin up sluggish growth. In the corporate space, novartis could face civil or criminal penalties after the u. S. Food and Drug Administration said the drugmaker manipulated data relating to its gene therapy drugs which treats final Muscular Atrophy the regulator says it is assessing the situation but also decided that the drug should stay on the market as the earlier manipulation did not impact safety. The Swiss Pharma Company says they are confident in the treatment. I spoke to the ceo in july about the development of drug, the worlds most expensive our strategy is to be a leading Medicines Company powered by data science and advanced therapy platforms our goal is to be a leader in gene therapy for the long term we feel confident in the outlook for the drug, we look to providing more context in the time to come it is a onetime therapy that we hope one day can be proven to be a cure for these children if treated early enough its an extraordinary advance in science, an extraordinary advance for patients and for novartis an extraordinary advance for the Pharma Industry but it comes at a hefty price tag, more than 2 million for the onetime treatment. Thats the most expensive drug available in the market. In germany, tbayer and lanxess have come to a deal to sell currenta to mira in a deal worth 35 billion. Bayer says it will pay down debt with the money lanxess says the funds will promote growth theyre moving ahead, getting rid of it, and investors are welcoming the price tag theyre getting. Munich re posted a 36 rise in Second Quarter net profit thanks to low claims from major losses thats the highest quarterly result in four years the figure fell slightly below Previous Company estimates nonetheless the german reinsurer reiterates its outlook for 2019 and 2020 coming up, a superhero performance at the box office fails to gain many fans on wall street well discuss disney earnings after the break. Its show time. Lets cowboy up exhilarating speed. Woo precision control. Woo maximum reliability. Access denied. [ repeats ] access denied. If its not xfinity xfi, its not good enough. For wifi with super powers, get xfinity xfi. And go see, fast furious presents, hobbs shaw. Now playing. Welcome back to the program. Disney shares slumped in extended trading after missing expectations that despite last months Record Breaking Box Office performance of avengers endgame. The media giant blamed the miss on dark phoenix, which it acquired as part of its deal with 21st century fox. Reporter missing expectations on the top and bottom line. Revenue in the first cal Third Quarter was 22 22. 5 billion, lor than the 21 21. 5 billion that Analysts Expected. Ceo bob iger stressing that the lower than expected results are a direct result of the big changes hes made, the fox acquisition and disneys pivot to direct to consumer streaming. Our results reflect efforts to integrate the assets, businesses and talent we acquired in order to enhance and advance our strategic integration. Implementation of our integration plan is under way, and we remain confident in our ability to execute our strategy to drive maximum value from the combined company and our appreciation for the longterm value we can create has increased. The cfo saying the acquisition of 21st century fox and taking control of hulu will have a dilutive impact on the Fourth Quarter of about 45 Cents Per Share saying theyre still on track for the acquisitio ak concretie i earnings in 2021 disney saying the next leg of growth will be driven by the value of its new content library. Were also focused on leveraging foxs vast library of great titles to enhance the mix on our dtv platforms as for the lore thawer than expected results at disneyland, iger said there were huge concerns about crowding that kept people away and that higher ticket prices and higher prices at local hotels discouraged fans from attending in the quarter. He said Guest Satisfaction is high and longterm they have no concerns about the investment in the star wars expansions to their parks. Lift is set to report Second Quarter earnings after the bell today after the firm lost more than 1 billion dollars last quarter, Analysts Expect a loss of 4 400 millions this time around Elizabeth Schulze joins us from our london studio. What will lyft investors be looking for today . A couple key things to watch in this report one of the main questions weve been talking about since this company went public is that path to profitability last quarter lyft said they expect peak losses to occur this year well be listening to see if thats the case in the Earnings Report and in the guidance were looking at revenue per rider this quarter last quarter lyft said it will no longer disclose gross booking figures, so revenue per rider are the key metric, thats expected to grow 16 year on year and finally competition. We heard about how the two players are duking it out not just in the ride hailing market in the u. S. But in investments in other forms such as escooters and bikes lyft has closed the gap with uber in the recent years, but uber is clearly the Market Leader still one other thing to look at if youre looking at this chart, it is expected to continue to grow u. S. Users, both companies thats an important thing to look at. So far no signs of growth topping out over the next three years. We have uber results a few days from now. Is the average investor going to be looking at these side by side every time looks like they are, if only because theyre the two Ride Hailing Companies that are both public theyre clearly competitors in the u. S. Market. They are the two competitors and giving indication as to other companies in the space its important to note that uber is a much wider ranging business answer that lyft for uber were looking at investments in uber eats, freight, Autonomous Vehicles and uber has that International Presence its important to look at lyft and the indication of the u. S. Market and the general figures about ride hailing, uber will give us a Bigger Picture overall. Elizabeth, thank you very much for joining us and preparing us for those numbers lets look at u. S. Futures and see what were in for at the start of trade yesterday we saw a rebuound on wall street with all three indices ending in positive territory, this following the turn in sentiment on President Trumps tariffs. Thats it for todays show im Julianna Tatelbaum im willem marx thank you very much for watching Worldwide Exchange is coming up in a moments time. Any sign of relief stocks looking for direction after a welcome rebound from what was the worst day of the year for the dow Chinas Central Bank keeping investors on edge, taking steps overnight to steady its currency but keeping it a hair away from the key 71 level. Could now be the time to buy into beijing one legend dare hedary hedge fur is bullish on china. And gold doing something it has not done since the