Challenger claiming victory. Translator i can lead and try to govern the victory by accepting the electoral results. Translator its a regression of rights and liberties have failed today u. S. Energy secretary Janet Granholm called for greater oil output as she tells cnbc, there is a volatile environment in energy markets. A lot of emotion in these markets and so we have deep concern about trajectories of where things are headed. Reporter and the wildfires prompt europe carriers to have the biggest Mass Evacuation of the country in history good morning again, everybody. Welcome to street signs. We have such a busy week coming up but also a very busy start to the day as well, namely because were getting a lot of flash pmi data out of the eurozone countries. We have the flash composite number out of the eurozone let me bring that to you it has come in at 48. 9 that is lower than where we were back in june so a little bit of a contraction versus where we were just in the prior months lower than expectations. Just to break it down further, the july flash manufacturing pmi number had come in at 42. 7 that is versus the 43. 4 number that we had back in june. The services has come in at 51. 1 estimate estimate has come in at 51. 1, again, lower than expectations of 51. 5 but lower than june trend of 52 so we are moving in the wrong direction. Earlier on we had the numbers come out for germany and france also showing a worsening of the situation over there as well just to give you an idea in france, the pmi manufacturing number is the lowest since the start of the pandemic. In germany the overall number is back in contraction nair ri since the first time in january. You are seeing an impact on the euro that is one of the reasons why the currency has fallen to the tune of. 4 of a percent. On thursday we have the ecb meeting. All of the data, the weakening backdrop is going to be factored in to the ecbs Decision Making as the market price stays. Let me take you to our main story for the weekend. Spains snap summer election has ended in deadlock after the conservative Peoples Party and the Coalition Leaders failed to clinch an expected majority. Albertos center right narrowly topped the polls in the countrys general election on sunday leading with 33 of the vote Prime MinisterPedro Sanchezs socialist party claimed 31 of the vote even though pp had a central majority they do not have an absolute majority. But the conservatives preferred partners the right wing vox party fell well short leaving them with an uphill task incumbent president Pedro Sanchez and his ruling socialists also face a difficult task of forming a coalition leading leaving the country on course for a reelection lets get out to charlotte the far right vox did a lot worse. The question from here is what happens next given theres no absolute majority in government right now . Reporter no, and thats the Million Dollar question here, joanna as you were saying, a surprise, the blue wave we saw in the original election with the central right taking it from the social elite, that didnt translate. Yes, the political fallout of the central right party, they have set themselves a target of 150 seats they were hoping to reach and they reached 130 seats. The far right potential coalition, vox, has lost many seats. Thats one of the key lessons, vox had earned 52 and theyre down to 33 they have lost the far right momentum that was one of the keys the rest of europe as well Pedro Sanchez, big gamble for him after calling a snap election the election was supposed to be in december and he called it early. Trying to catch some of it for his own party to actually gain seats there and they went from 120 seats to 122. He comes out stronger after this however, some of the partners, regional and nationalist parties have lost momentum in this particular situation with smaller regional parties from catalonia have lost some seats but even more important for him to potentially reach this magical number of 176 seats. So we are in a bit of a deadlock here long negotiation and talks will be going on. As they hold the leader of the center right party, coming as a top party in this election, he should be the one trying to form a government translator our obligation now is to avoid a period of uncertainty. S spaniards have put their trust in the party the candidates of the party that has the most votes, i think my duty is to open the dialogue so i can lead this dialogue and try to govern our country by accepting our victory and the electoral results. Reporter now, again, Pedro Sanchez coming out stronger. They make between 1 and 2 of the National Votes are hugely important to him a lot of his parties had said before the election that the price would be very deep well see including some of the pro independent national parties. Well have to see what their demands are. The Catalan Leader is reporting exile. It could be quite con throw versal here. They meet in august and the king will meet with all the leaders of the different parties and ask one of them to form a majority if they fail to do that, they have a couple of months to do that, then he can ask another leader to form a majority. If that fails, they would have a second election. The most likely scenario thats what happened in 2019 already. You remember in april there was an election, no one reached a majority they had a rerun it was the First Time Ever fragmentation and polarization in spanish politics. The big two parties. The socialist and the pp the dynamic has changed. Turnout was good even though it was held in the Summer Holiday and a heat wave. There was a lot of vote. The left wing block mobilized despite beating the odds here. Still a lot at stake we are in a deadlock still open what comes next a bit of instability. The Historical Context is different, charlotte as you mentioned, the spanish voting electorate are not immune to deadlock situations this has taken markets by a bit of a surprise. The ibex has pulled back 1. 14 european sectors, the spanish sectors dont like the lack of certainty about whats going to be happening next. Let me switch over and break it down for you by some of the names within the ibex. Here you can see the key banking stocks are pulling down today. Bankinter down and a lot of these names are being dragged down again by uncertainty. The lack of clarity about whether the economy is going to head in a direction filtered towards the right or the left. Again, the uncertainty is hanging over these companies utilities as well also seeing it pulled down lower. Down. 8 and also down half a percent as well. A bit of a mixed reaction. Overall the reaction has been quite negative in terms of spanish yields, we are seeing a bit of a bounce here the yield for the 10year bond is down 3. 4. So about 4 basis points on the session. Two year at 3. 4 as well down 3 basis points as well. Ultimately they have the pmi numbers for about a year thats instigated the rally. Charlotte is still with us talk us through the potential economic rahmifications of whether we end up in a number that is a continuance si government versus a shift in government to the right. Reporter well, look, the fundamentals of the spanish economy is quite positive. For Pedro Sanchez, his record has been quite positive. Last year it was expected to be 2. 3 this year inflation is finally under 2 in spain. Unemployment, still high below on spanish standards some of the numbers have been starting to come down. The question is, what does that mean Going Forward the short term, we dont expect the big impact on the spanish economy. Its been hammered by the financial crisis in 2008 theyve worked very hard and very deep on transforming the spanish economy. Its won heavily 11 of the spanish gdp is on tourism. They had a big impact. Were finally above big prepandemic levels here still a lot of work to do in the fabric of the spanish economy. Certainly the dynamic is positive now we see a key like our previous guests were saying is uncertainty. We might have weeks or months of uncertainty going ahead. It is the long term and what is the question mark. What does that mean . Banks, the windfall tax. The Left Wing Coalition call a windfall tax on banks and energy companies. The center right party was seen to be ahead in the court a lot of people expected in in the center right government. That looks very uncertain. The center right candidate, he was not wanting to scrap it altogether but certainly he was going to reduce it a little bit. Now this is open whether he will take part or not thats impacting the banks this morning. Like one of our guests were saying, a lot of Investment Decisions have been put on hold. We need to see where things go for the next few months. Its not a couple of months. We could have another election in autumn and we might look at christmas and the budget from 2024, now there will not be any budget there has to be a reduction of the budget reduce 123. All of this is in play for the next few months and potentially with another election around the corner. Excellent thank you very much for the overview now Business Sentiments in the eu has taken a turn for the worse coming in weaker than expected in july the flash composite pmi for the eurozone came in at 48. 9 that is a full point down from june and for the reuters expectations factory output in the bloc fell at 42. 7. German and french manufacturing numbers all came in well short of expectations. On the back of that, we are seeing some downward movement in European Forces today with the exception of the swiss index the defensive index, every single one is trading in the red. The ibex is down 1. 1 . The xetra dax is down marginally trading in negative territory. Within germany the pmi number is back in contraction nair ri for the First Time Since january kaka rant sitting at 7,400 some of the luxury names are calling this index lower thats wibeen a consistent them. The ftse 100, the pmi numbers at 9 30 watch out for that we continue to keep a close eye on the macro situation with those inflationary numbers that came through last week in terms of the euro, the reaction was negative as we spoke about earlier. Weve seen a dip in the currency. 4 of a percent. 1. 1080 just a couple of trading sessions ago finally lets switch over and look at european fixed income. No surprise because of the weakness in the pmis, we are seeing a rally 106789year bund 3 points lower let me get out to chris williamson, the chief business economist for s p global market. Wonderful to have you with us. The first question i want to ask you is whether the numbers we got today can actually still be consistent with positive growth in the eurozone . Good morning. No, these are consistent with gdp 4 and the eurozone as a whole and the major economies, germany and france both of those economies seeing steeper declines, the eurozone as a whole, which suggests the periphery is Holding Things up its still mild. Its 0. 1 its moving in the wrong direction. If you think the headline output numbers are bad, dig down, look at the new orders and its far worse. It looks like the demand environment is deteriorating let me take you up on that point. Where is the deterioration coming from . Is it domestic new orders starting to dwindle or is it coming from abroad and notably china in this case its both its both. Its looking at sector theres a very deep downturn barring those initial pandemic lockdowns, this is the steepest weve had since 2009 theyre suffering from a pull back in demand globally. Chinas recovery and its as strong as has been hoped thats not happening at the same time, domestic consumers, the cost of living crisis and theres been the switch of spending from goods to Services Post pandemic therein lies the other signaling in Service Sector demand activity is fading in fact, july saw the first lowering of new services that big growth weve seen encouraging news from is fading as well. Bit of a red flag wonder whether the ecb are looking at the data that weve seen on thursday whampt about cost pressures what are we seeing on that side of things . In june we got strong signals that some of those price pressures had started to diminish is that still apparent in these numbers . Across the board the general message is inflation pressures are falling as fast as they rose this is quite another month with inflation pressure easing. There are some pockets of sustained inflation pressures. Germany, for example, we saw stickiness in the Service Sector, but generally the main indices of input costs of companies are falling at an encouraging rate consistent with cpi inflation down to around 3 by the end be of the year. This is really quite a marked downturn a lot of discounting going on. This unwind weve got, excessive baiting and downturn in final demand Companies Just across the board now struggling to push price hikes through. A lot of disinflationary forces becoming apparent. We talk about disinflationary forces we talk about the demand picture looking very weak. Theres one missing part of the puzzle which is a very important one. Whats happening on the wage pressure front so that is where weve got the stickiness, really Service Sector costs are dominated by wage pressures. Its not surprising to see those wage pressureskeeping those. The slowest rate of Service Sector inflation for 2 1 2 years. It is starting to unwind the ability to get the pay rate higher coming down as the labor market cools so the jobs growth weve got here is coming down quite markedly very modest jobs growth now. Not so long ago the Service Sector was seeing record unprecedented jobs growth in this survey but thats falling away now only very modest growth now. That is going to feed through to negotiations this side of it stickiness is going to start fading through. It does feel like disinflation momentum is picking up steam let me round out by asking about sentiment overall. How is sentiment looking ahead we spoke about the weakness coming through on demands and new orders how are businesses doing about things the surveys have a forward looking subjective pressure. It will be in a years time, not surprisingly thats come down sharply again. Down to the lowest so far this Year Companies are really reining in their expectations how busy theyre going to be citing the hiking Interest Rate environment, the increased cost of living as well as the increased gloom surrounding the economy and this continual talk of recession so the expectations are pulling back thats one of the key determinants of the labor market, of course. With that job growth coming close to stalling really in july it looks like everythings going to be moving in a further weakening direction in the coming months. So real risk of gdp falling in the third quarter. I think the ecb is going to have to be looking at this. They hiked before when the pmis have been in the weak territory, 2008, 2011, but both those times those hikes were very soon reversed. Yes how can everyone forget the famous Interest Rate hike out of the ecb. Chris, thats a good place to leave it thank you so much for joining me today and helping me make sense of these numbers and also coming up on street signs, wildfires spread across greek islands residents and holiday makers are forced to evacuate well have the latest after the break. When we started our business we were paying an arm and a leg for postage. I remember setting up shipstation. One or two clicks and everything was up and running. I was printing out labels and saving money. Shipstation saves us so much time. It makes it really easy and seamless. Pick an order, print everything you need, slap the label onto the box, and its ready to go. Our costs for shipping were cut in half. Just like that. Shipstation. The 1 choice of Online Sellers. Go to shipstation. Com tv and get 2 months free. Welcome back to the show g20 Energy Ministers have failed to reach a consensus on cutting Carbon Emissions members failed to see eye to eye on plans to triple Renewable Energy capacity by 2030. They also disagreed on the need for them to mobilize to 100 billion annually Jennifer Granholm said it is critical to move to Sustainable Aviation fuel as soon as possible. Bio fuels are necessary whether its Sustainable Aviation fuel or whether it is other obviously ships, so we want to make sure that there is a number of there are a number of countries who are looking at solutions to that, and thats what the Global Bio Fuels Alliance is. Liquid fuels coming from organic matter and ultimately youre seeing Sustainable Aviation from the United States is the goal here we want to get 3 billion gallons of Sustainable Aviation fuel by 2030 and 35 billion by 2035. Thats a lot we want to make sure we really move in that direction very quickly. So the Bio Fuels Alliance gets us both partners, research, development. The final question, secretary, is president bidens Climate Change agenda at risk given the u. S. china rivalries playing out now . No. I think that china and the United States are the biggest emitters in the world. China and the United States and