British Prime Minister who will demand an early election for the second time in a week. We either go forward with our plan to get a deal or somebody else should see if they can get us in beyond october he tells cnbc that bond market holders need no longer be called saying investors need to take the asset class. You will lose we had a major player in the bond market that is involved for noncommercial reasons. Happy friday. First lets recap the price action over the last 24 hours. Very positive session for u. S. Equities and actually u. S. Indices are about 2. 5 from record highs yet again despite volatility those indices continue to make a come back and that after better than expected Services Data yesterday. So weakness on the unemployment sub index but better data on the services but but of course the number one narrative and the expectation of a meeting between china and the u. S. In washington next month thats giving a little bit of relief to investors. Well have to see what happens hopes is very high as the poz sy makers have been saying its down about. 2 and the number one focus is still the Political Developments and its going through the house of lords today and is expected to go into law as soon as monday but there will be the possibility of a snap election on october 31st. Well talk ar about that we had more disappointing data out of germany as well. And all in all its been a good day up almost 3 as the new government had been sworn in let me take you to the price action again in u. S. Markets strong gains yesterday as you can see the dow up almost 400 points 1. 4 higher as investors came to terms with the possibility of a deescalation between china and the u. S. When the meeting takes place in washington next month as a reminder, its worth reminding viewers that the average tariff on chinese imports was about 17 with 5 before the trade war kicked off. Equity 500, nasdaq up 1. 75 . Tech was the big gainer in yesterdays market all eyes today on payrolls and then its 3. 1 on earnings finally, i want to take your attention to ten year yields because we had big moves in bond people are getting nervous about whether or not ecb are really going to go for it as well as the fed. All eyes today on whether or not theyre still going to signal its a mid cycle adjustment or whether theres more cuts to come a lot of drivers for the bond markets here. Thank you very much lets get straight out to steve. We have been listen listening to your interviews all morning. Fascinating comments not just on the bond market but on what is going on more broadly. Give us the low down lets listen to a little bit of what we have been hearing from our guests this morning its fascinating hearing controversial marks from the likes of Neil Ferguson about what he thinks the president is doing. What he thinks the president can do how long the trade war will it turn into a cold war with china as well but lets listen into what he had to say about trade and the trade war with china its a multiplayer game of chicken buttheres two dominan players as there were in the early cold war and the dominant players in the United States and china. The key thing here is that Donald Trumps role historically has been to wake america up to the chinese challenge. I think he did achieve that. When he started talking about putting tariffs on china at the beginning of the Election Campaign people acted like he had lost his mind. Now its conventional wisdom now its a bipartisan issue that the United States needs to wake up to the chinese challenge. And the problem is he is no longer in a position to simply turn it off when it suits him because its escalated into other domains and particularly into the domain of technology and he has much less control over that. So that was Neil Ferguson talking about trade, about trade wars with china and a multiplayer game of chicken going on between the u. S. And china and others as well lets move on and take a look. Its for its survival perhaps on the central bank of europe. It was about 6 or 7 years ago where he told me he said look, the crisis in the euro is over now. And it was not really a good idea usually these things with Exchange Rates they worked well when the economy is growing. It looked like it was a success but i do think it wasnt in debted countries in 2012, but also theyll have adjusted much faster to the post financial crisis world in fact they havent adjusted yet completely but theyre still behind what they were ten years ago. More than ten years ago. You could put at least some of the blame on the euro and what we have followed. Now having said that and given where we are and given the institutions that we have, i dont think it would be a good idea to break it up but it would be a better understanding. Its not just driving from the core which is basically german policy and then expected to come along. But the response has been one that you would give to a child, isnt it im screaming hence i get. Its like if i wanted a constant load of sugar from my parents and they keptgiving me that an kept giving me more id die of diabetes or Heart Disease or Something Else as well thats my worry about what the ecb has done to europe its continued to give it what it wanted because it was screaming for it was this the right medicine . There wasnt much else they could do. Have them take responsibility and have to make severe political decisions because otherwise there will be even worse. You really hit the nail on the head because governments were not prepared to do it so what do you do . If youre mr. Draghi youre sitting there and you dont see governments doing what they have to do. So then you say i have to do whatever it takes. Its not easy to react here and you can do what you want but the need for effective policy and policy that has an immediate effect is fiscal policy so at least it is precisely what germany did in 2002 and 2005 when they had the big Reform Program and then the supply side policies will have an effect but thats not what governments have im looking forward thats very interesting that you should reference germany and what they did in 2005, germany will do the same again now will it finally start to roll forward using its incredible muscle and Financial Flexibility to forget about a balanced budget and actually start spending more money . Well, we have to wait to see it first and then i will be. I would still want to see it not as much as i wanted to see it in 201220152014 but it will still help and at least, you know, let the countries that have budget surpluses on there theyre only investing about 10 of gdp theres no investment going on thats the time for the state to step in and provide new Infrastructure Investment and Digital Infrastructure and green energy those things are not happy and theyre more concerned about saving money to repay debts and making necessary investments in the economy to bring growth which could be used to repay debt anyway. So tomorrow when you give your speech about the last 20 years youre going to get asked about the next 20 years of the euro does it survive in its current form i dont think we have a structure in place to avoid when the next financial crisis comes. And theres cycles in the system. Cycles that even Central Banks cannot hold back they cannot, no. So given our debt profile across europe, well say the Northern Europeans have been more frugal. Certainly the germans again. We have referenced that as well. But the debt to gdp of italy and greece and the rest of the continent in many ways and the unemployment rate, these are much worse than at the start of the financial crisis and given the overlay that we havent got the Financial Institutions sophisticated enough to negate the effect of recession or slow down, its going to be much worse, isnt it . Well, it would be worse if we a acted the way we did before which is a its your debt and your problem kind of thing they all agreed to form a euro there were certain things they needed to do to make it succeed and as it turned out they were not prepared to do those things and now theyre all committed to making the surviving prospect. And theyre still they still dont seem to be as committed as they need to be to make it succeed but at least now we have some more money. But you do need to have more debt sharing. I could ask one quick question i have about 30 seconds. So what do you make of whats going on with brexit at the moment everyone is something you and everyone is asking us. What is going on its the disaster from the economy. We dont even know who is going to be Prime Minister next month. The big decision has to be made. And what can i say im just disappointed to see, you know, just calling the referendum almost on the spur of the moment but i cannot see countries investing in new technology because they dont know what theyre going to face. Thank you, sir. Its quite a nippy morning here on lake cuomo. Thank you indeed, sir. Just to say, coming up, a whole host of key players. The former italian Prime Minister and Pier Carlo Padoan what does he make of whats going on at the moment well come back later on in the show. Thank you we look forward to the interviews lets get right into the latest on brexit. Were waiting for a High Court Decision on whether the british Prime Ministers decision to suspend parliament for five weeks is lawful. The case buzz brought by gina miller who successfully challenged the u. K. Government in 2016 over its authority to lead the eu without a vote in parliament he had strong words forcing him to ask the eu for a three month extension to negotiations. Can you make a promise today to the British Public that you will not go back to brussels and ask for another delay to brexit. Yes, i can. Id rather be dead in a ditch. Lets get out to westminster. Some pretty strong words there from mr. Johnson id rather be dead in a ditch than delay brexit but what are his chances of actually avoiding that outcome at this stage . What he would like to do on monday is block this deal and get through the house of lords and then its signed into law on monday he said he would like to see another parliamentary vote on the possibility of a snap election for that to happen, under the terms that he tried to do that earlier this week, he would need a 2thirds majority. Theres other alabama tern tiffs where he could see if they have confidence in him. That would require a simple majority and theres a chance that would go through and he could always resign and go to Queen Elizabeth and say quick Jeremy Corbyn and see if he can form a government and that would also end up in elections if the alliance that we saw around blocking a no deal brexit is not sturdy enough to unite behind Jeremy Corbyn. All of this, though, could be the days before parliament is suspended. Theres a huge amount of uncertainty about what that will mean and of course, as you mentioned, were waiting for this High Court Decision, essentially looking at whether courts have jurisdiction over a monarchs decision upon advice from her ministers Boris Johnson argued he was quite within his rights to do that but theres a number of interesting parties that say thats tisimply not true, guys. Were going to take a short break but coming up well discuss the future of 5g with logitech more after the break got it. Janet, i hope youre not afraid of heights. Whats going on in here . My it staff is planning to overthrow me. Theyre tired of working weekends to maintain our aging infrastructure. At cdw we get the pain of outdated technology. Thats why wed assess your needs then design a secure infrastructure to make you more agile and efficient. Hey guys. Oh hey, boss. No more weekends. No more weekends . Lets do this mutinys off ted. What . For Infrastructure Solutions you need it orchestration by cdw. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. He expects 5g technology will soon expand its reach. By next year, 2020 we expect 5g to reach, in terms of ability to reach in coverage 2. 2 billion people on the planet thats the size of the system and how fast we expect deployment a lot of these and its the early stage and you still dont have that much coverage but thats going to happen very fast. Lets get out to elizabeth and beyond 5g what are some topics that have come up its always been here but were talking in the context of these u. S. China trade tensions so lets talk about how youre dealing with this new round and what the expectations for plans are there. We do our own manufacturing we used to do our own manufacturing in china we used to move things out of our factories and move things around and were able to adjust for the most part where we need to were lowering costs across the board and selectively were looking at price increases are you looking at markets outside of china for the longer term because of the uncertainty . Manufacturing has always moved around the world its had better costs and better productive but china continues to be a great place to manufacture. Well be there for the longterm. Talk about the price increase because thats the big question for anyone in this market. When is this going to come down to consumers what is your outlook we already made selective price increases. Consumers were probably just starting to see the early stages not of ours necessarily but of other companies and i imagine over time youll see more and more. How does that impact your outlook for going into the holiday seasons. We had this monster advantage and most of our products sell for very low prices anyways. And we sell Video Conferencing equipment to companies so some pricing is probably doable without a big impact on our business. Talk about the Video Conferencing side of your business we have seen an ipo from Companies Like zoom and microsoft. Why such an investment there. You just named two companies that we partner with so we dont make the Video Conferencing system we make the equipment that enables it. So those are great for us. They will be video enabled overtime and its a huge opportunity for us the other opportunity we have to talk about is gaming. Were kind of 1963, u. S. , the nfl is just formed the nba is just forming and its the very beginning and e sports is on the rise its a longterm secular trend thats not going to let up and were right in the middle of it. Its a lot of exciting launching happening. Well be bringing you the conversation and back to you. That was elizabeth. Also coming up on the show we will be seeking with former finance minister more coming up wanna see something. Amazing . Olay body wash visibly transforms your skin from dry and dull, to strong and healthy, in just 14 days. Better skin from a body wash . Better believe it, with olay body. The dow jones more than 350 points for the best day in three weeks after the u. S. And china agreed to head back to the negotiating table. Germanys industrial output unexpectedly drops in july amid more signs of a slow down in europes largest economy. Id rather be dead in a ditch than delay brexit. Boris johnson is in a corner. They played a game of chicken not only with the europeans but with their opponents in parliament and they lost its as simple as that i dont think theres anyway out for him that i can see other than to resign. Hes a hostage hes under house arrest in 10 downing street with power having entirely shifted to the house of commons. Bond Market Holding should no longer be core investors need to take a different approach to the asset class. If you stick with the old rules you will lose. You have to understand that we have a major player with the bond market with a Printing Press in the basement involved for noncommercial reasons and you have to think differently about the bond market. Shaping up to be a mixed morning following a strong rally we saw on wall street yesterday. We saw strong gains yesterday with the rotation out of defensive sectors and into those more cyclical sectors like autos and technology and also banks but a little bit more of a mixed picture. Just hovering around the flat line yesterday this index underperformed the broader European Market ending 5 lower. The dax is bucking the trend its been a story of bouncing around the flat line as investors pause for breath after the rally inspired or at least supported by the expectation of a negotiation between beijing and washington to resume in early october. Lets move on and look at fx markets. Yesterday we saw it edge lower currently down about a third of a percent at 1. 229 we saw sterling hit the highest level since late july. A number of questions still unanswered on the brexit front but holding on to the gains for the most part. The euro is currently trading a touch stronger versus the dollar around the 110 level of course all eyes next week on the ecb meeting. Lets take a look at u. S. Futures now. A very strong day for wall street it looks as though were going to see the three major indices continue higher but the gains at this stage look to be modest just looking at single digit point rides at the open and the big event for investors across the globe today coming up later on. Germany has a surprise fall in industrial output the reading for july fell 0. 6 month by month along side a deeper decline in manufacturing output the data comes after europes largest economy shrank in the second quarter. Steve asked german state secretary about the dow