Argos delivers fo sainsburys as the uk retailer reports like for like sales ahead of forecasts, while cost cutting improves its bottom line good morning happy Independence Day to those celebrating it today volumes will be lower across europe as a result of that lets look at the ftse 100, off by 0. 3 . The cac 40 off by 0. 2. The xetra daxtrending lower. Oil prices reversing recent gains. Weve seen eight days of gains lets show you the sectors one by one autos, insurance and banks higher technology, telecoms a touch lower. I wanted to come back to some big stories. German generic drug company stada is trading higher as bain capital and cinven may seek approval from regulators to submit a revised bid to the group. And now lets talk about clariant a group of shareholders urged others to rejected the proposed merger with huntsman corvex says the deal wont unlock value and we saw some big moves in the u. S. Dollar yesterday and the u. S. Twoyear yields they closed at the highest level since 2009 in yesterdays session on the back of the isn data which showed a blockbuster jump soaring nearly 3 points to 57. 8 the stronger than expected manufacturing number pushing the dollar to a sevenweek high. Lets talk more about the moves with Marilyn Watson from blackrock. Good morning to you. How long does this selloff in the bond markets in the u. S. And here in europe last . As you know, weve seen low volatility in the markets for a long time. Its going remain low for quite a considerable amount of time to come given the actions by the central banks. We would expect this to continue further. Theyve been triggered by various things such as the data in the u. S. Yesterday. We had strong data coming out of the eurozone as well comments from central bankers including mario draghi, mark carney also fueled a little bit more movement. I think what were seeing are still movements within the year to date ranges we have not seen anything that has come outside of the ranges that weve seen so far how do you reconcile this with the fact that Inflation Numbers are still low. And the price component of the ism manufacturing index, that was quite low as well. That really doesnt go together with the bond selloff, does it i think its something the central bankers in particular have to grapple with growth figures on the one hand, inflation is continuing to disappoint on the other hand not just in the u. S. But in the u and elsewhere. I think its something that at the moment you can look through, so you can see temporary factors in the u. S. With wireless, various things that are dampen down inflation we think that technology and the impact of that is continuing to have a depressing impact on inflation and will continue to do so. Obviously in the eurozone as well, inflation remains dampened due to temporary factors you mean oil prices the oil prices have a huge impact if you look at impact of energy on core inflation, thats helping to haul it down. For the time being, central bankers have suggested theyre happy it look through that look through the fundamentals and the rest of the data for the time being were comfortable with where it is who takes the leadership when it comes to the bond selloff and spike in yields. Last mu triggered by hawkish comments, this week it seems treasuries have sold off the tenyear back above 2. 3 the twoyear at the highest level in eight years, precisely on the back of better data, and we expect a fairly strong print when it comes to the jobs number on friday. Do you think the u. S. Could take the leadership i think the market can focus on one thing at a time last week it was about the ecb now that the tension has shifted again, and its on the u. S. Again, its quiet markets at the moment given the holidays in the u. S. And canada. Are you saying we shouldnt read too much in the moves in the market, this is summer trading . To a certain extent, yes. Any moves we see will be incredibly slow. The moves are still within the yeartodate ranges. Any moves we do see from a hawkish standpoint from either the fed or from the ecb or the bank of england will be so slow and gradual, i think it will take a long time for it to take effect were looking at a reuters report saying ecb insiders are nervous about making more hawkish signal at the july meeting. After the ecb got burned last week with draghis comments, they are very, very careful about saying anything that could be interpreted as remotely hawkish next week. All eyes are on the ecb theres a huge expectation that they will continue to taper next year everyone is looking for signs about continuing to taper the Asset Purchase Program what theyll do when they announce it a lot of expectations for september, but they could be before or after that so i think theres so much scrutiny on the central bankers, so much scrutiny on what theyll say and do because the market volatility is so low, then we are just seeing these little spikes based on the communications from central bankers. Lets talk about gilts. The Market Pricing in the 90 probability of a 25 basis point hike next year pricing in one 1and a half hikes by the First Quarter of next year is thatted a kuwa ed ted adequ . I think there is a huge amount of uncertainty obviously in relation to brexit, in relation to the uk economy we saw that also in governor carneys comments, where he played down expectations we saw the 53 vote to keep rates on hold that was a surprise for many Market Participants i think carney down played that. And more recently said at some point we would expect to see rates rise again, its a tricky job for the tral ba central bankers to give guidance around what theyre doing without spooking the markets i think one rate rise is expected if the economy continues to be performing as well as it is, even with the bank of england it will be a slow process help us out whats the obvious trade i would think you dont want to go against the trend, so underweight any sort of government paper and overweight credit is that the trade . I think youre spot on. Particularly in eurozone, you know were short duration, short bunds, short francs, in the uk pretty much neutral given where markets are. And we do like credit. So we think that will continue to perform well, particularly in rising rates environment last week, we saw that spreads tightened again as rates rose and more unhedged buying of u. S. Credit in particular so we like good sources of credit that offer decent liquidity. In the msummer market its good to have an eye on liquidity. And we like emerging markets if we can find decent carry we find that attractive thank you very much forever bringing us those ideas. Marilyn watson from blackrock. Heavy discounts on loans to consumers did not help u. S. Car sales in june. Phil lebeau has a breakdown of the number. Reporter the signs of the season are out for dealerships, plenty for sale but not as many customers as dealers would like. Sales last month were not trer t terribly impressive. But the average price paid for a new model, over 34,000, continues to tick slightly higher so consumers are still spending, especially on trucks and suvs. But automakers gradually have seen inventories rise as sales have eased as a result, some Assembly Lines are stopping production for longer than usual this summer. But not tesla. Where the electric automakers production of its new model 3 will start later this week with the first model 3s being delivered later this month it has an expected starting price of 35,000 the model 3 is targeted at the mass market and is critical to tesla taking the next step and becoming more than a niche automaker. If initial reviews of the model 3 are positive, dont be surprised if we see a surge in reservations which already stand at well over 300,000. A wave of erroneous market data appeared on several market sites in asian trade the prices for a number of nasdaq listed stocks were listed as 123. 47 including amazon and microsoft. Nasdaq says the problem happened because of test results wrongly distributed by third Party Finance sites. Google said it is looking into what caused the error. Yahoo did not immediately respond. And still coming up, could talent be a companys scarcest resource we will speak to bain and company. Well be back with more street signs in two. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the c300 for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Oscwe went back toing bithe drawing board. S. And the cutting board. We removed the added nitrates and nitrites, byproducts, and artificial preservatives in all of our meat. Every. Single. One. Why . For the love of hot dogs. More doing chores for dad per roll more earning something you love per roll bounty is more absorbent, so the roll last 50 longer than the leading ordinary brand. So you get more life per roll. Bounty, the quicker picker upper and now try bounty with new despicable me 3 prints. Only in theaters. Yeah, and i can watch thee bgame with directv now. . Oh, sorry, most broadcast and sports channels arent included. And you can only stream on two devices at once. This is fun, were having fun. Yeah, we are. No, youre not jimmy. Dont let directv now limit your entertainment. Xfinity gives you more to stream to more screens. Welcome back to the show french president emanuel macron says he aims to reform the government by reducing the number of mps and allowing more proportional representation in a speech he threatened a referendum if parliament does not approve the proposed changes within a year. Lets get out to claire fornier covering the speech. This was a rare president ial address to partmen meparliament what was the reaction . It was a first for a newly elected p eed president to gathr nearly 1,000 mps and senators in versailles you had many reactions to this long speech resembled the american state of the union. Its not in the french tradition to have a newly elected president , you know, talk about his vista for the next five years in front of the mps and senators but as you know, emanuel macron is inspired by others and wants to reestablish the president ial functions prestige what was the reaction of course the mps thought it was a philosophical with a lot of vista speech from their president. While the opposition said that it was much to do about nothing. And for a high cost considering that it cost about a half Million Euros to gather people in versailles. What emanuel macron wants is a steadier presidency there will be a third of the mps out of the National Assembly if the law is voted and that would make the National Assembly more representative i have to tell you that all eyes today are on the Prime Minister, Edward Philip who is expected to give a lengthy speech as well at 3 00 p. M so 24 hours sharp after the president. And he will lay out the detail agenda of reforms. For example, the reform of the labor market, much expected in france also the state of emergency will be scrapped in the fall. Well, what will be in the law against terrorism . That will be laid out also this afternoon. And Edward Phillip will have to explain how he plays with a bad financial situation in france. A hole left by the hollande mandate, 8 billion euros theyllexpenses. How does that interfere with their willingness to implement the reforms and lowering taxes thats what the Prime Minister will have to explain this afternoon. At the same time theres a lot of criticism against mr. Macron for taking the thunder away from the Prime Minister to what extent is france upset with the style that mr. Macron has been advocating . Explain to us what that really is yes its been spreading in the french media, jupitarian style, that means macron wants to be the boss and restore the prestige of the president ial function aides around him say the french people want that they very much like the presidency of general de gaulle, and they want a president who is above all the petty considerations of political parties. They want a president who is a vis vista, so they say emanuel macron is filling this role fully. In the op something there is a bit of annoyance at this status that emanuel is, you know, putting on stage its interesting because in many ways its different from what we were used to with Nicolas Sarkozy and Francois Hollande who had in mind to make the president more ordinary and closer to the people thats not what emanuel macron wants to do. Thank you very much. Angela merkel dropped the word friend to describe the United States in her campaign manifesto. This follows a havent war s s words between the two countries. And edf share the sunk to the bottom of the stoxx 600 after the french utility raised cost estimates for the Hinkley Point power station. Edf says the project could cost 1. 5 billion pounds more than expected the increase means the pro diktded rate dikt predicted rate of return on investment will fall 208. 5 . Fait may be a Public Holiday in the u. S. But theres no rest for republicans spearheading attempts to repeal and replace obamacare. Reporter the republican effort to overturn obama care will continue to be a key issue in the second half of the year the longer a replacement stalls, the greater the likelihood that nearly 9 900 billion in proposed cuts to the medicate Safety Net Program will be watered down we saw that as publicly listed hospitals gained 32 as the repeal timeline slipped. If congress does overturn some obamacare hospital payment cuts and follows the senate plan stabilization funding for states through 2020, analysts say that could be a nearterm boost for players Like Community health, Tenant Health and hca. For health insurers, smaller medicate cuts would be a positive longterm, but nearterm, for those who say theyll be on the obamacare individual market exchanges next year, three key issues remain. Will congress reinstate the Health Insurance tax next year its been on hiatus for a year will the Trump Administration enforce the individual mandate and try to coax more people to remain enrolled . And funding for subsidies to reduce out of pock kcket costs r lower income enrollees will that get renewed. If no answers are announced by the end of the summer we can see them pull off exchanges in september. And then theres cigna after finally breaking its merger with anthem, the co has admitted he would like to pursue a deal noting that cigna has up to 14 billion in deployable capital. And the stock is at record highs. Two years ago he tried to pursue humana, a leader in the Medicare Program for seniors but lost out to aetna investors will be watching to see if cigna will try again to land that deal that got away bertha coombs, new york. Time actually is money says new research by bain and the Economist Intelligence unit. Their study found that the top cartel of managers are 40 more productive than the rest and that their Profit Margins are 30 to 50 higher than industry averages joining me is michael mankins, partner at bain company. I have a copy of the book with me you have done a survey of more than 300 executives from Large Companies across many different nations. What did you find . We found that the best companies, as you indicated in the lead, are about 40 more productive than the rest, which means that those Companies Get as much done by 10 00 in the morning on thursday as their competitors and peers do all week those Companies Keep working they keep serving customers, keep innovating. Over time, like a bond come pounds over time, that productivity advantage come points, and it produces this overwhelming source of competitive advantage for those companies. So the whole research is about how do you manage the scarce resources of time, talent and energy of your work force like you would Financial Capital with the same discipline and rigge rr walk us through some of the steps. If you think about first we talk about organizational drag bureaucratic processes and procedures that waste time and we found that the most Companies Lose almost a quarter of their productive capacity to organizational drag. That means too many meetings . Too many meetings, too many emails. Those are the symptoms of a complex organization or a culture that simply fosters collaboration for collaboration sake so the best companies minimize that they try to reduce those bureaucratic procedures by not putting them in place to begin with or eliminating them but talent is the big difference between the best and the rest. And we thought when we were going into this that the best Companies Must just have better people that explains the difference in productivity turns out not to be the case that if you compare averages to averages, the best have about the same amount of star talent as the rest. About 1 in employ7 employees isa star energy, how do you energize employees to be more productive . It turns out engagement, which has been the popular phrase for the last half decade has taken hold in most companies. That about a quarter of most Companies Work force are engaged. Which means three quarters arent the truly big difference in our research is that those employees that are truly inspired, inspired by leader, inspired by their mission of the company, and the team in which they work for are about 125 more productive than purely a satisfied employee what the companies do that want to unleash discretionary energy, they focus on building inspirational leaders, rewarding those leaders that are inspirational, and, in fact, weeding out over time those leaders that are incapable of generating inspiration for their teams. You mentioned companies that have done it right, ab imb bshb, linkedin, airbnb, google, others that are mainly u. S. Co