Subside but mexicos nominee for the World Trade Organization leader tells cnbc a key kpo component has been lost. The basis of cooperation and trust. This trust has been lost completely the second night of the Republican Convention defies tradition with secretary of state mike pompeo from overseas. Delivering on this. This president has led bold initiatives in nearly every corner of the world. A warm welcome to street signs, everybody. Lets get in to the latest weather developments in the United States. The National Hurricane center has upgraded laura to a category 2 with maximum sustained winds of 155 miles an hour and is likely to produce a storm surge and should be a category 3 before landing on shore tonight. Producers prepare for the biggest threat to the Energy Industry in 15 years lets look at how oil is trading. No massive moves we have seen a jump higher in oil price. Wti and brent have been trailing higher lets turn to jay gray who filed this report from lake charles, louisiana. Reporter sand bags, boards and building tensions along the gulf coast kind of nervous for texas and the westside of louisiana. Reporter thats where forecasters say hurricane laura will strike. Brittany thomas and their family locking down the house before land fall. Theyll ride it out. Weve got water and supplies where we are at is equivalent to a bomb shelter im okay with that it is time to go. Moving to Higher Ground by the bus load but as families rush to shelters, the storm is not the only concern here we are in the middle of a possible hurricane and trying to actually think about cove too. Reporter many areas are using more and larger areas making room for social distancing as the storm continues to churn. We expect the land fall to be just after midnight wednesday night to thursday. The high tide is the same time that will add additional water on top of that storm surge, a very dangerous situation developing with laura, gaining strength and barrelling toward the coast. Jay gray, nbc news, lake charles. Laura wreaked havoc in haiti leaving a trail of destruction behind at least 2, 100 people were killed well get out to more on the hurricane preparations stay tuned this market this morning flipping around from where we started. We were weaker but now positive. Still cautious trade the green on the boards just over. 2 looking at core markets, we can see improvement we are witnessing on the core markets of germany and france. We claiming the 5,000 handle on the french market. The dax an outperformer. The ftse having a weaker session yesterday. It was a Strong Performance at the start of the session that was swept aside by later to the point selling some of the Big Oil Companies and selling the stock at losses of 1. 1 . Adding that loss to the tune of another third a percent to the 6,000 handle that is separate from what we are seeing italian stocks bouncing from the core markets just a fraction but at least tilted to the positive side. Lets get to what we are seeing on the pharma side the giants are lobbying the eu from potential of lawsuits should viruss arise from the vaccines keep in mind, Many Companies are trying to access around Clinical Trials and the talks of government also putting the accelerator around populations lets get to one of the themes of the market could be ait, average inflation targeting just tell us what you expect tomorrow to hear and the ramification for investors. Indeed, front and center will be the opening speech, we expect the fed chair to comment or discuss some of the results of the ongoing strategy review. We believe that we would be targeting and seem to suggest the views the fed is going to take the big difference is really in the level of detail a strong, lovish message and heavy detailed discussion and the level of the mean inflation and target the way the fed wants to get there. Whether they want to tolerate or stimulate and maybe even the yield curve control wherefore us, some what less regardment that fed chair would be adopting the average inflation target but would not provide the level of detail many are hoping for some early an al tis suggest if we do get some moves toward the targeting, it could stephen the yield curve in the United States and could increase the market action. The very early stages when we talk about the pricing what do you think about the ramifications for the decline. The main channels and the dollar are lower to the u. S. Which implies the Treasury Curve however, one undesired consequence could be actually higher to the long end of the treasury yield they are steepening to the yield curve especially if the fed remains undecided about the framework in terms of the policies they want to implement if they misbehave. If the curve there stephens. If there is a risk if they do preannounce the pivot of the fed but really for us has not discussed any potential framework policy step to keep the curve flat to contain any rally. That is supported for the dollar by the virtue of the higher inflation and higher long end of the treasury yield how does election risk play into the dollar here if it looks increasingly likely that joe biden secures the presidency, what kind of reaction would you see. And if President Trump is poised to get reelected, what does that mean for the green back . Thats a good question. It would suggest that President Biden is seen by most as a more negativout come for the dollar the investors are focusing on the less business friendly policy the democratic candidate has been highlighting. Additionally, when it comes to a second term by President Trump, that could be most likely positive for the dollar given the mix of policies. Fairly aggressive fiscal support and also fairly aggressive protection abroad. If anything the current polls which are putting joe biden firmly in the lead and the dollar underperforming in recent months all of that said, our analysis suggesting that some negatives ahead of the vote are already in the price of the dollar. Discussions seem to suggest that most of those investors ahead of the election may want to wait and sit back for a bit leaving the dollar in a Holding Pattern before the election. If anything, what we are also hearing is that most investors are really a contested vote, the polls are not extending. It is a close poll that is drawn out. Maybe the best strategy on the outer come could have a different out come in the market looking at the flip side and the pound. Recently the Options Market suggests there are no real flash points ahead what do you think would be the main driver of that trade moving forward. There are a couple of things on both of those that will have a detriment yamal impact that could lead to a slow down. Uncertainty could continue to weigh on business estimates. What looks like the rebound and the last couple of months, they saw and going to reverse for the Fourth Quarter from that point of view in terms of pressure points clearly and they all come in october, with brexit in october and in october, we have the governmentfunded furlough scheme, which we believe is going to lead to sharply increase in unemployment so in this back drop, we favor the down side against the euro thank you for that. The head of gid x research shares of alibaba has risen to the highest level the deal could eclipse saudi aramcos listing to become the biggest ever Planter Technology has filed to go public. The Data Analytics firm reported a net loss of more than 580 million. Known for work with the cio and other organizations has seen a rise in 2020 revenues in high demand from the government sector palantir is expected to debut on the new york stock exchange. Rebuilding trust. Mexicos candidate for the wto says the level of trust should be more. That is coming up next flur and innovation is at the heart of it. These days, businesses are adapting to new ways of working. Verizon 5g ultra wideband is the fastest 5g in the world, with speeds up to 25 times todays 4g networks. Its massive capacity and ultralow lag time is already available in parts of select cities around the country. Which means businesses both large and small can innovate like never before. 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The gop was criticized for using government buildings the first lady chose the rose gardens as the back drop for her comments larry kudlow revealed further tax cuts and a warning for potential presidency stocks are in record territory. A vshaped recovery are pointing to a better growth in the second half of this year. Looking ahead, more tax cuts will be in store payroll tax cuts for higher wages, income tax cuts for the middle class, Capital Gains tax cuts in investment, productivity and jobs more regulatory relief for Small Businesses in economic turns, folks, this is no time for a 4 trillion tax hike second of state mike pompeo delivered a speech from jerusalem. The first to speak to the delegation in years. This president has led bold initiatives in every corner of the world. In china, hes pulled back the curtain on the Chinese Party hes held china accountable for covering up the china virus and causing death around the world he will not rest until justice is done. He has ensured the chinese spies posing as diplomats in america are jailed or sint back to china and undone the ridiculously unfair trade agreement with china and bringing jobs back home telling cnbc, china has a formidable role to way with the wto but that china still has issues to overcome when p it comes to trade asking him how relations will come to china and other relations shaping the wto. There is a sentiment among many countries in the west and east of china in asia to resolve those issues there are concerns about the working of the price mechanism but at the same time, china has been harding rebecca, nice to see you again just walk us through how transformational it has been to the supply chains and trade figures you are witnessing what you are seeing is a shift in the way world trade is being done you are seeing a lot of trade moving digital and into services you are seeing huge nationalization in the trade so a lot more being done locally. This is likely according to world trade to cause a drop of world trade of up to 32 no one is completely sure but there is a Seismic Shift that is really important when we are beginning to see is the localization of supply chains that is critical. Nobody wants to see what happened at the beginning of this crisis. People saw things fall and they were dependent on one supplier they couldnt get access on things in order to get world trade going. 95 countries imposing key restrictions you pointed out only germany has pointed out measures do you think this is a key that will stay . What weve seen is world trade shift fundamentally and going back to the point about supply chains because countries dont want to be dependent on one supplier anymore, they have started to distribute to the supply chains around the world businesses will be looking from all of their supplies in different places this is here to stay well return and i dont think this is the case well return to Global Growth and return to multilateral trade. There is pressure under that and in the World Trade Organization. Just run for a list of candidates about who could be the next lead for the organization how significant is the appointment this time around i was debating whether it would be in the interest of the United States to have a weaker candidate so there isnt as much push back, especially if its another Trump Administration it has been a little bit like the league of nations. A little powerless over the last few months to do anything. In fact the last 18 months in terms of the u. S. china trade war. I dont think well see a difference between biden or trump being elected. That is being talked about everywhere around the world. I think the important point here is that everybody agrees that the Organization Needs to change it is not something people are disagreeing with it has come into disputes and what the mexican candidate is saying africa is pushing to have an after can representative and create greater trade in emerging economies in the general mood. It has been driven and done entirely on u. S. Terms sub plying walmart and amazon out there. Youve noted some changes is now picking up supply business thats right. When you look at the numbers, you see the asean region is doing really well. Particularly vietnam you are seeing trade between the United States and vietnam increasing a lot of these are sectors by the u. S. China Vietnam is one of these countries that has benefitted. It is coming from quite a small base and you are seeing a lot of growth vietnam is a regime that still aligns with china but is more u. S. Centric in the way that it does business. A few more countries, just to note how the crisis has been uneven russia impacted on import. Switzerland, the least impacted on import. Why is it so uneven and why are some countries doing better than others if you look at Commodity Prices and look at russia and the amount it brings in from exports. At the beginning of march, a lot of countries have been significantly affected are very effected on export revenue from oil. That is plies to the middle east as well. For a country like switzerland, because gold has been a health and is a major export of switzerland, it creates a better recovery outlook for switzerland. We are counting down to jackson hole and the issue of inflation if it will go above the 2 what is the impact of supply chains and inflation are there signs it will pushup inflation over significant period of time if you look where supply chains are, you see factory prices everything is in recovery mode it is not likely to be pushing on inflation too much. You see things grow and come through trade in terms of currencies as well these value against the dollar that will be something really central to the discussions at jackson hole because everybody will be looking to see if weve got uneven inflation, that will be stabilizing as well interesting comments. Thank you very much. Coming up, vaccine makers lobby over reprizal over fast tract to vaccines. Welcome to street signs fur just joining us. Im julianna tatelbaum. Here are your headlines. Crude prices hit a fivemonth high as the gulf coast braces for hurricane laura. Preparing for what could be the lar largest storm in over 15 years ant group files for a duel listing in what could be the Worlds Largest ipo. Saying europes economy is in better shape as setting aside another 10 million in relief measures and mike pompeo delivers a message from overseas. This president has lead bold initiatives in nearly every corner of the world. Markets here in europe have perked up from the start of the session. Weve had a soggy beginning as markets are moving south but weve now moved into positive territory for a lot of the markets. Weve wrapped up shop and saw a flat finish for the core markets, the ftse did lose ground for oil majors. We can see an extension of the losses only mildly down on trade. This may give you a sense of what is taken place. Sterling is one of the more supportive ones. 1. 3156 euro is roughly 1. 18 investors eyeing jackson hole and if it has ramifications on the dollar u. S. Futures in the mix which would suggest on the themes in the Market Countries across europe are seeing rises in cases of covid19 cases. France says masks are now compulsoriy. The uk added france to the quarantine list. The Prime Minister has contacted the army to carry out Contact Tracing as spain is suffering one of the worst out breaks in europe the rise in infections requires a strong but se reen response. In some places, we must remain alert serenity there should be no fear that par lies us and keeps us from acting the Situation Requires a strong response to the threat germany finance minister speaks out saying the goal is to stabilize activity saying fresh relief measures are put in place and likely cost another 10 billion euros. On the health care front, cambridge is joining the race for the vaccine after receiving 1. 9 Million Pounds from the government to start Clinical Trials in the autumn hoping it will help to reduce side affects Pharma Companies are lobbying for protection from lawsuits should issues arise from the vaccines the Global Pandemic has boosted efforts across fields from Vac