Stocks weighing down other Airline Stocks as the low cost carrier ditches its guidance and says it will fall below 40 . Investors satisfy their thirst and hong kong water giant and shares go 80 higher from its listing price. A warm welcome to street signs. Lets kick off the show with the European Commission president who is speaking now with changes to the European Commission translator this experience is crucial for ensuring the solution so speaking there and announcing that mqguinness has been named as irelands new Eu Commissioner lets get more context we knew ireland had nominated two different people to take up this post after phil hogan had redesigned after breaking quarantine rules what can you tell us about the decision to go ahead with mcguiness. Its not a surprise they were key to ensure the 50 50 balance and this allows them to achieve that mairead has been quite vocal when it comes to brexit as well. This is an important change that is happening right now and the European Commission. Happening now, we know they want to do this quite swiftly and fast because she wants to avoid further stability particularly at a time when they are dealing with coronavirus and instabilities in neighboring intentions between greece and turkey so there is a lot on the table in the European Commission and they want to get this done as soon as possible having said that, this name still needs to be approved by the parliament in the coming weeks. The fact that she has been working there could help her get approval by colleagues so she can move to the commission in coming weeks lets see how this new commission will work in the coming weeks if von der leyen updates her policy it is important. We hear from the president saying and outlying and developments on policies and trade and comments about ongoing brexit negotiations. Thank you there are two crucial announcements that have come out. One that mcguiness will be taking over in the irish commissioner place and the other is the trade portfolio and whether ireland would be able to retain they went ahead and named dombrovskis has been named to take over the trade commission what is your take i know youve been following everything in brussels in so much detail of dombrovskis taking over this trade deal we know they wanted to keep that trade portfolio phil hogan, the commissioner that left was a member of the epp family and through distribution, the epp got that very important subject trade that was also a key demanding away was to retain that portfolio, from the team that is currently in the European Commission, hes also a member of the epp, from that point of view, it makes sense to keep that with the epp member to avoid any further tensions with the political groups it is a very important portfolio we need to monitor in the coming months and years we mention the trade relationship with the United States and phil hogan made progress on that front that is going to be the challenge Going Forward. He is not new in the u. S. Politics he also served as Prime Minister and has experience in talking trade with other countries prac perhaps that could help him in this task. Hes also one of the most senior officials and is currently executive Vice President along with two other names so giving the trade portfolio to the commissioner and the executive Vice President is giving further weight to this important portfolio. Thank you for interpreting this news. We appreciate it lets get a look at the markets now. A mixed picture. Generally negative, we are seeing a european retreat. We did see equities bounce back after the down turn we saw last week today, we saw the dax, the cac 40 and the ftse mib trading lower. Yesterday, the ftse 100 outperformed lets look at the sector the best performing parts this morning, real estate up, banks up as well overall modest gains no major moves other than the magnitude we are seeing this morning. Worst performing sector. Weve got technology under performing down 1. 7 construction down. Construction, chemicals and industrials as well. To put these into context, weve got gains for autos, oil and gas, and utilities that gives you a sense of how we are trading. It does give you a strong sense of how we are trading. President trump has raised the idea of decoupling with china claiming the economy would not lose out if the two economies were less reliant on one another and argued that the move would bring jobs back to america. China is using the money we bring them to build up their military when you mention the word decouple, it is interesting. We lose billions of dollars. If we didnt do business with them, we wouldnt loose billions so youll start thinking about it japans secretary sugar has kicked off his Leadership Campaign suga is the current front runner to replace abe said he would expand coronavirus Testing Capacity and push for protection of jobs, businesses and exports. He also confirmed he would stick to the Economic Policy set by his predecessor. Japans economy has suffered the worst post war economy grappling with the impact of coronavirus an cap pal expenditure and Household Spending wages fell for the fifth consecutive month. They get ready to elect the new Prime Minister with the leadership vote expected to be held next week senior economist from mizuno bank what is your take on the japanese economy, the outlook for japan in the midst of the worst economic down turn for the first time post war, really. What is your out look for japan. Caller its a very steep gdp. The slide in bounce will be smaller as well. The two do seem to be clearly linked todays Household Spending result for july was disappointing and probably puts negative Downside Risk into q 3 consumption estimates. It is probably a little early to go about changing your gdp forecast nonetheless, certainly at the beginning of july. On the flip side today, we had the economy watch survey of august which suggests it bounced quite sharply and does suggest some of that will be recouped in august nonetheless, the down side risk in terms of policy and the continuity and he will have the same struggles has abe has and it will be difficult to get that up the boj is lose but struggling to find additional ways to ease the policy and wont find negative consequences and additional easing is really only on the cards and the prog know ses for the second half of the year to recover. I skpekd a further bounce in q 3 or q 4, the virus remains relatively muted and that should also help recovery through the back end of the year in the short term, in that basis that is recovering the structural issues suga faces with the population decline. One of the big issues is revitalization it wont be anymore difficult for him. Despite the fact that he seems to have a decent bump in the poles and looks that hell have quite high support early in his tenure he has pushed for those policies that abe has pushed where can he deviate in terms of his policy agenda . His plan is not to deviate a great deal that has been quite comforting for markets. That equity declined on the news of the resignation but that bounced back sharply since the markets had become stable. The broad brush assumption is that in big picture, there may be changes and one of the things hes looking at is mobil phone pricing and things like that there will be more efforts other than the big pictures trends that drive bond markets. I want to shift gears here. Mentioning the latest comments from brPresident Trump on relationships with china he wants to decouple from the chinese economy and end things with china once and for all is his comment. Markets shrugging this off what do you expect is this just rhetoric in the runup to the election . Caller certainly, the election is on the horizon one of the things when you look at when the Trump Presidency is analyzed in future years, the Main Development will be the worstening relationship with china. Something hell have successful and will continue to push that theme for the next couple of months there are some real policy moves behind it as well. I think for me, the market concerns remains that biden will be the new u. S. President in november and consequently, there is less concern attached to trumps comments in the coming months. Lastly, we are just days away from the central bank meeting. It has been more sharply focused as the Federal Reserve will be letting the labor market run longer what are you expecting from madam lagarde and the policy caller i dont think it will be a particularly exciting meeting. More will have more scopes to reassess where they are in the recent rejection and the possibility for increased qe from the European Central bank and the bank of england as well. The focus will be on the comments about the risks surrounding the forecast highly likely to be stressed on the down side and any commentary on the euro from last week. Thank you for joining us today. Senior economy from mizuho bank. Coming up, nasdaq hsoft ban ll called the nasdaq whale wediscuss their tactics after the break. In san diego, california. Weve had a ton of obstacles in finding ways to be more sustainable for a big company. We were one of the first stations to pilot a fleet of zero emissions electric vehicles. The amazon vans have a decal that says, shipment zero. Were striving to deliver a package with zero emissions in to the air. I feel really proud of the impact that has on the environment. But were always striving to be better. I love being outdoors, running in nature. We have two daughters. I want to do everything i can to protect the environment to make sure they see the same beauty ive seen in nature. My goal is to lead projects that affect the world. I know that to be great requires hard work. At cdw we get youre always yeah. Im just not sure my goal is to lead projects that affect the world. Office drones were the way to do it. [ laughing ] drone voice lol. Our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back to street signs. Softbank shares struggled for the day after being called, quote, the nasdaq whale. Helping to fuel the recent rally. Head of research and securities now. I know youve been following the soft bank story for some time now. Hes really prided his exiskilln private startups now we are hearing about the Public Sector they are following what is going on here in terms of soft banks strategy . Clearly in a world that struggles for yield, income and growth, the soft Bank Portfolio and investment approach needs to look for these returns the Asset Management arm they announced on the 11th was one of prudent and Financial Management and prudent and defensive actions were mentioned on the call at the time this would be called as a gamma gamma and potentially wagging of the market would be huge for investors of the stock what do we know about the head of the team that was established on august 11 so hes been a specialist in investing over a decade now and behind some structured assets for soft bank for which have been successful. Looking to sell part of the alibaba holding, the structure product makes sense because you cant indicate to the market, you cant be a big seller of the stock. This is a measure or a bet on the entire market in many respect. It appears the company will make profit from the product or approach, it is not without high risk it is one thing if you like doing that for a hedge fund. Soft bank is not a health fund and not supposed to be a hedge fund through these latest actions theyve taken and the interest in these tech stocks, it has become one Big Hedge Fund which is strange given the conservative nature of the Japanese Business that underpins softbank in some ways that you have the individual policies around the world and in effect the biggest buyer of apple bonds, then you also have the boj which is the big buyer of structured products and etfs, et cetera, softbank is the third Biggest Holding in the japan etf as one example. You could argue that perhaps softbank had seen opportunity that they could take a high Risk Strategy knowing that they could become too big to fail the ultimate buyer of the stock, if you like, is the Worlds Largest pension fund, the gpif of the japan government, which you have Retail Investors and huge pension with exposure to the japan market if you look at the market as theyve shared the story, the shares sold off heavily yesterday. They did continue selling off in their latest session but have recovered some what does that tell you in the way the market was around the strategy shift the market is telling you the strategy is at odds with the communication with the company to the market. As i mentioned before, the literal words from the ceo where that the company was going to adopt the defensive posture and they would have more prudent Asset Management package for the key scene for soft bank Going Forward thats why there is concern in the market for this the other factor to consider is that soft bank often gets good reactions the outside money coming in on these kind of strategies to the approach because it is all over well againk adjusted and the risk could be taken into the fund. Listening to you, it sounds like this could be perhaps pour judgement and has risk we know they were already under scrutiny after wework strategy how do you expect them to react to the news flow around the nasdaq dak whale saga . It is difficult to know where your move lies perhaps the next focus will be around where the others will monday ties. Perhaps in the sale on the agenda would deflect on the actions for the moment that is a priced asset without doubt. I see how that could be a great fit for nvidia to be allowed for an m a transaction to go through and to quite and balance on the strategies. What is the time frame for that i would expect the transaction to take place within the next 6 to 12 months if we look at the various places where we could get more detail from various companies. It is sowing the seed to the various transactions happening thank you for joining us this morning. Coming up in the show, a sparkling debut with the bottled water giant making a splash among chinese Retail Investors welcome back to street signs. Im Julianna Tatelbaum these are your headlines european equities failed to hold on to gains and tensions as President Trump plans to end reliance on china once and for all. If we didnt do business with them, its called decoupling, youll start thinking about it the eu shakeup. A major reshuffle after phil hogan departs. Ive decided to propose to the council and the european parliament, the appointment of mrs. Mcguiness to the post of Prime Minister dombroskis will assume managing the trade portfolio. The lowcost carrier ditches its guidance and says capacity will fall below 40 in the Fourth Quarter investors satisfy their thirst for liquidity with the hong kong water giant sending shares 40 higher than its listing price. Lets get a check on the european market. We did have a strong rebound with the rally 1. 7 driven by gains across sectors and regions. We are seeing exactly the opposite with a pull back across every region and sector coming under pressure yesterday, the gains were widespread and pretty strong in terms of the magnitude a bit of a pull back where we are awaiting the u. S. Market for the labor day market getting a check on how the currencies are trading brexit remains in the headline following the story the uk is striving to underline. Well discuss that in more detail essentially holding flat a mixed picture with a fairly muted start. A touch higher for the s p and the nasdaq looking to open substantially lower down 200 points that narrative dominated with u. S. Tech stocks posed the end of the week as they resume losses if these numbers hold back here, easy jet is cutting flights even further as quarantine measures continue to happen p hamper they said they plan to be down 40 in capacity. Ab inbev has launched a search for successor to c ceo brito. Suggestions the north american chief is the only internal figure being considered. Brito has been in charge of the company for 16 years and led it through the series of take overs. Sfloo shares in chinese bottled water giant Nongfu Spring has popped up. The ipo was more than 1,000 times oversubscribed shares subsided and closed 54 above the listing price. We have more with this ipo that has hit the market i dont know that i have ever seen an ipo more than 1,000 times over subscriber. Was this ipo appropriately priced well at this point, i think it is not really a fair comparison at least the metric for Nongfu Spri