Skip to main content

tv   Street Signs  CNBC  July 10, 2018 4:00am-5:00am EDT

4:00 am
welcome to "street sign"s, i'm joanna very is a chee and these are your headlines the brexit hurts currency. she narrowly avoids a no confidence vote. okado sinks. the ecommerce firm warns it will be bigger than expected as increased spending hits first half earnings. turkish leader erdogan wields his new presidential
4:01 am
powers by appointing his son-in-law as finance manager. neighborly rivalry takes center stage as france and belgium prepare to battle it out in the first of the world cup semi-finals. and of course our top story this morning, theresa may's new luck cabinet gets to work. dominic steps into david davis's shoes. in a scathing resignation letter to the prime minister johnson wrote that the, quote, dream is dieing suffocated by needles self-doubt and warned that the u.k. would end up like a colony of the e.u in response theresa may said she was a little surprised by boris johnson's resignation given his backing on friday. but may added that it was right
4:02 am
he stepped down if he was unable to support the deal, but in the party may was cheered by conservative lawmakers as she appears to have secured enough support to stave off any leadership challenge my colleague jeff who is celebrating 20 years at cnbc today congratulations joining us to discuss we can go over 20 years of british political history. a lot has happened in the last 24 hours. >> yes. >> it appears as though the worst is over for now for the prime minister if things were going to get worse, if there was going to be a no confidence vote, leadership contest, it likely would have happened already. >> i think the key point on the key phrase is for now because the reality is she is hardly out of the woods she has managed to by accident almost remove two brexiteers from her cabinet, so what we have left is a cabinet that looks somewhat more in favor of the softer brexit approach
4:03 am
now perhaps that gives her a little bit more room to maneuver when it comes to the key terms of that agreement that was hashed out in checkers on friday because we got a very quick response from brussels which seems unwilling to go too far down the road on that existing blueprint. so from that perspective, maybe she does have a little bit more wiggle room now when it comes to the space to make further concessions with the e.u. at this stage when it comes to her own political future, clearly she's managed to fight off the immediate threat, but let's be aware, boris johnson left a poison pen letter on his resignation. he clearly is not going to go off into the night quietly one manage there will be further challenges to come at this point. >> of course he's very popular
4:04 am
within the party i wanted to pick up on the reaction yesterday of course we're a business channel and it was almost bewildering the way sterling assets behaved we had ftse up .9% we're back about 2% stronger the markets are telling you that all of this together is actually pointing to a better outcome as far as investors are kerconcern. >> i think it's clear that the market has decided that it wants a softer resolution to the exit story than a hard brexit now if you take that as your template moving forward, anything that suggests that it will be a softer brexit will be received positively. and it's interesting the knee-jerk reaction i think to the loss of these two key individuals was for a weaker sterling but it appeared that theresa may was saying this may lead us down the road towards a hard brexit, but as the time has
4:05 am
moved on i think people have begun to re-examine the shape of the cabinet and the flexibility that might give her with negotiations with brussels and they draw positive conclusions i have to say there is a constituency in the market as well that has a con trarn view on the u.k edwin shane was on "squawk box." he feels we will see 8,000 this year on the ftse two issues here. one, it's an underloved market given how much u.k. company income on the ftse is generated outside of the u.k. and, two, has it been so bound over the politics during that period. he was suggests a contrarian trade, we go 8,000, there will be some up side for this index over the rest of the year. >> it's also coinciding with a slide pickup of q2 data and
4:06 am
potential rate hikes let's notforget that jeff, i'm going to bring in steve who's out in westminster steve, jeff and i were just discussing the positive market's reaction in ftse, also seen it in sterling today. do you think the market's reaction is correct in pricing the events over the last 24 hours as positive? >> reporter: no. i think the market reaction is utterly irrelevant i don't think we've seen it all. there's a contrarian view. if the pound goes down, then it changes the trade. quite honestly it matters not a jot the movers on the u.k. financial assets today we still don't know what's going on we still have a very fluid situation. i would argue that as the minutes go on mrs. may actually gets a slightly stronger position and when i say minutes, i mean minutes because you can measure the speed of political events in
4:07 am
minutes at times like this just to restate the fact, we haven't seen two cabinet ministers resign in 24 hours since 1982 as well arguably mr. davis and mr. johnson will both be marginalized in any way within cabinet. whether they were in the cabinet or behind the scenes, whether mrs. may splits the brexiteers, that will remain to be seen. that is the pure mass that mrs. may is working on to get a deal through and, indeed, of course to keep her job as well because it needs to go to the 1922 committee which could force a no confidence vote and of those 48 votes we don't believe they have come forward as of yet because key brexiteers, dominic raab who is the new brexit ministry are all at the moment in government. let's see what mrs. may has been
4:08 am
saying in parliament in the last 24 hours. >> what we are proposing is challenging for the e.u. it requires them -- it requires them to think again to look beyond the positions they have taken so far and agree on a new and fair balance of rights and obligations because that is the only way to meet our commitment to avoid a hard border between northern ireland and ireland, without damaging the constitutional integrity of the u.k. and while respecting the result of the refr ren zblum mrs. may appears to be a great survivor she had a disastrous election jupe 8th despite having this weak position, she's still there. it's interesting that now she has decided to throw away the rule book by keeping your
4:09 am
friends close. one, she is the prime minister phillip hammond is on the soft side and the man with the pursestrings as well three, the home secretary is a remainor and now, four, with johnson, the arch brexiteer gone, she has replaced him with a key remainor ally in the form of jeremy hunt let's hear from that man >> my principle job at a time of massive importance for our country is to stand four square behind the prime minister so that kwee get through an agreement with european union based on what was decided by the cabinet based on chequers. this is when the world is looking at us as a country what i want to say is brittain is going to be a reliable ally
4:10 am
that stands up for values and we'll be a strong and confident voice in the world. >> reporter: everything else is about calculations mrs. bring the fan talked through what she was trying to achieve. i can tell you that i've been speaking to the deputy leader of the labor party, the right-hand plan, so to speak, of jeremy corbin i'm going to bring you the tape in a very short while's time he didn't outside say that he wouldn't work on getting through brexit legislation he didn't say he was there to challenge, he wants to rule out cross party support for what mrs. may is doing. i think that's part of mrs. may's calculation. she hopes to bring in support while she perhaps jettison's support from the hard brexiteers
4:11 am
even if they're not prepared to back her overtly, do they want a general election do they want to potentially let in a government led by jeremy corbin that is perhaps the greater of two fears and avoiding another challenge. >> absolutely, steve still a lot to contend with there. it's going to be exciting the next couple of months and thank you, jeff, for joining me on the set. i'm sure it won't be the last time we discuss brexit. >> no, i have a sinking feeling. >> but make sure you stick around with my interview with sir michael fallon that's in 15 minutes' time let's take a look at how markets are fairing this morning. of course, we're talking a lot about the reaction in u.k. assets but of course we did have a strong reaction in asian markets. there's more optimism in the equity markets you have japanese indices
4:12 am
at .3, .5 and china's equity balance as well. what we see in europe is broadly speaking the stock 600 is up .1 of a percentage point. nothing drastic. you have cac carant up ftse 100 today is struggling a little bit as well and that is in line with the usual correlation which you tend to see on days when the currency is trading stronger and sterling, of course is trading .22% stronger let's bring it to flash sales in the market picking up again about what i was saying about u.k. sterling assets, there seems to be a little bit of confusion about how the pound should have responded to the various resignations that were going on.
4:13 am
is it just the case of the market being focused on the chequers plan, is that a good thing for the market or is it a case that the market is still numb to all of the political ins and outs that doesn't really care about who stays in, who stays out as long as this government survives? >> we have a new plan out of the government but we don't know how to implement it and the e.u. is a big part of that i think it's too early for anyone in the market to make a big bet on any of the changes in the strategy we believe that the markets and economics are more important to brittain's future in the near term the u.k. is a very global economy. as long as the world economy is still growing and as long as we're still trading a lot of other parties.
4:14 am
>> do you like the ftse 100 here >> we do we think the u.k. is under valued as a market we like the fact that it got exposure to energy which means it's undervalued and we also think it's under a lot of international investors have stunned it because it's in sterling if you muckle onto the other companies, their fortunes, many people come on and tell us that the u.k. equities are undervalued. perhaps they will continue to stay undervalued while this cloud of brexit hangs over the economy. you've only got growth out of 1.5% maximum at a time when the u.s. is growing at 3.6 and europe at 2%. >> the ftse 100 is a global equity market. when you're doing value investing, it's easy to find out
4:15 am
when something is undervalued. i think we've already had with the energy sector, we're starting to see improvements there with earnings being updated dramatically i think the next thing is rate hik hikes. so i don't think it's going to be a magic moment where all of a sudden everything goes up but there are little things that are happening that will lead ip be vestors to see that things are happening. the u.s. market, year to date we're up 4% in s&ps it's coming from the tech sector and do you expect the tech sector to continue in the latter half of the year >> i think it will there are always risks of regulations, antitrust, but if you look at what those companies
4:16 am
are doing, they're actually less expensive on a valuation basis today than they were the start of the year because earnings have gone up pretty dramatically there are some that are trading quite well but they're delivering huge earnings >> this is the interesting thing, in q1 i remember there was the selloff after the earnings, particularly caterpillar. if you remember caterpillar day, everyone was saying, we've reached the high water mark. we couldn't possibly match that in q2. now in q2 expectations are 20%, pretty much where we were in q1. the eps numbers are not dipping. >> no. we have a much higher rate and if we get 20% the market will want more than that to go up, but i think we've also had really good economic growth.
4:17 am
corporate earnings over the long time tend to track no gdp growth per share. we have the u.s. growing at 3% per year, we have tax cuts, coming back into the u.s. from repatriation i think that's a pretty good environment. >> what if you're wrong? what if growth runs out of steam. they'll debate that global growth will start growing on momentum do you hedge against that? >> i think having a good, diversified portfolio is a good way to handle it you have to be certain about timing with those types of things i think in the u.s. the biggest risks are over heating from inflation and most recessions
4:18 am
tend to happen from the fed over tightening that's something we watch closely. the yield curve flattening is a bit of a risk. that's narrowed in recent weeks. so i think we watch all of those things you have to be cognizant that it's going to take time for things to deteriorate. it's probably not going to happen overnight the data now still looks pretty good >> thank you very much for coming senior performing manager. now elsewhere, tesla has raised its prices in china amid trade war concerns th price rise. elsewhere, turkish president erdogan has named his son-in-law as finance minister. hours after being sworn in, erdogan announced the cabinet including his former deputy
4:19 am
prime minister with less familiar faces the lira fell 3% on the announcement meanwhile, turkish scholars, and coming up, comcast is on the hubts to divest the networks we'll tell you why after this break. plaque psoriasis can be relentless. your plaques are always there at the worst times. constantly interrupting you with itching, burning and stinging. being this uncomfortable is unacceptable. i'm ready. tremfya® works differently for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks... stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections,
4:20 am
and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as fever, sweats, chills, muscle aches or cough. before starting tremfya®, tell your doctor if you plan to or have recently received a vaccine. ask your doctor about tremfya®. tremfya®, because you deserve to stay clearer. janssen wants to help you explore cost support options for tremfya®.
4:21 am
we all want to know you know, the new, new thing. with xfinity's retail stores, you can now see the latest. want to test drive the latest devices? be our guest. want to save on mobile? just ask. want to demo the latest innovations and technology? do it here. come see how we're making things simple, easy, and awesome. plus come in today and ask about xfinity mobile, a new kind of network designed to save you money. visit your local xfinity store today.
4:22 am
welcome back to "street signs. fox is reportedly preparing a bid for european group sky that would beat out comcast's offer fox's new bid would value sky at 25 billion pounds. it is expected to be made sometime this week if the u.k. government approves fox's earlier bid for sky. fox has declined to comment from the reports. meanwhile, comcast is reportedly eyeing potential buyers of the regional support efforts. in an effort to avoid regulatory
4:23 am
scrutiny the media group wants to divest to avoid any antitrust concerns. comcast, the parent company of cnbc, is reportedly dodging interest from private equity firms and other media groups as well and elsewhere, shares in okado r trading sharply lower. this is the online grocer who had losses in the first half as increased investment fell 14% but it said it remant confidence joining me to discuss is ryan roberts 789d insights expert good morning, very disappointing earnings from ocado. this is coming at an interesting time because they were elevated to the ftse 100. has the outlook changed from
4:24 am
here >> i don't really think so there's some disappointment that has slid that has been elevated to the premiere network so the actual retail partner is the groceries in the u.k., that was hit by some poor weather in the first half that's quite destructive there are heavy investments to new fulfillment firms. there are some reasons why the u.k. is there. just encouraging, over shadow all of that. >> the market doesn't seem to be
4:25 am
reacting very well despite in the guidance they are expecting the second half of the year for retail investments and they're thinking it will be better it's down 25%. perhaps investors are wanting to see the results particularly from the partnerships. >> share prices are going to double there's a lot of good news already. i think this really is a long-term fight. patience just started building the first area it will take time for the earnings to come on stream i mentioned this morning they're
4:26 am
hiring guys on the software side, hardware side, construction the u.s. international partners are getting this off the ground. what's key to the valuation of ocado is the partnership and how quickly the partnership is moving the program there are 20 fulfillment centers. the aman grocery market in the u.s. is quite well established the key here is the additional part and any supply is square in the u.s.a. >> you say the main risk is one of how quickly these types of integrations can occur >> i think that the main risk is how far equity progresses. the other is spreading itself too thin in terms of manpower across six countries they need more and more people to build the facilities so
4:27 am
that's my concern really is they're spending lots of time. >> going to have to leave it there. thank you for joining "street sign"s and talking us there ocado. that's brian roberts, insights from tcc global we'll speak to sir michael fallon about the brexit battle right after the break.
4:28 am
4:29 am
overwhelming air fresheners can send you running... so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.
4:30 am
welcome to "street sign"s. i'm joanna versace and these are your headlines theresa may is battling to keep her government together as she narrowly avoids a no confidence vote. ocado sinks. it says the full year loss will be bigger than expected as increased spending hits first half earnings. turkish leader erdogan wields his new presidential powers by appointing his son-in-law as finance minister
4:31 am
sending the markets sharply lower. neighborly rivalry is nearing close as france and belgium prepare to battle it out in the world cup semi-finals we have just got an avalanche of u.k. data at 9:30 i'm going to run you through them we have gdp number that came in at .3% month on month in line with expectations. 1.5% year on year. that is slightly stronger than expectations the sterling is fluid there. we have good exports u.k. exports were down 4.4%. slightly weak on the goods numbers here imports are up .8% let's take a look at the industrial production.
4:32 am
we have industrial outputs came at minus .4% coming in at just .5% month on month. a little bit weaker on that front and manufacturing out. also on industrial output we had minus .4% month on month the expectation was .5%. mixed bag. gdp is slightly higher manufacturing data a little bit weaker than expected goods balance came in slightly higher than expected that is the picture for u.k. data you can see that sterling is down on some of that news trading up about 40% pretty muted though. let's take a look at how other currency is trading. your dollar is trading a tad
4:33 am
weaker cable spending time talking about that let's not forget trade wars with the trading .5% weaker not as strong as the picture we had yesterday. the session for asia and the u.s., we had the ftse 100 lagging just a little bit below the slack line we have xetra dax up 1% and cac carant is up theresa may's new look cabinet gets to work this morning as jeremy hunt replaces the foreign secretary and dominic rob steps into. >> david: son's shoes. steve is in westminster. we've talked about the conservative party but there hasn't been much about the
4:34 am
response. >> reporter: a lot of commentary which has stopped at the line that says a challenge from mrs. may, this could lead to a general election and others going it could lead to a second brexit vote. the latter of those three scenarios. could there be another general election as well that is what some people have been talking about is the labor party ready for it as well? even if there were to be an election, could the labor market build a government where does labor stand in this could the new softer approach of the government in its brexit strategy actually bring people across benches as well i've been catching a few words with the deputy leader of the labor party in parliament as well the right-hand man, tom watson, i started by asking him how he would typify the situation in west min bester in government at
4:35 am
the moment >> it's obviously a meltdown without two key brexit ministers resigning effectively chiming a no vote in the confidence of the prime minister. >> reporter: but in terms of where the u.k. government is now and the chequers start, it's much more akin to where labor would be, a softer brexit style. something you can work with go across the party >> we've only seen the three-page statement that syriza may trumpeted over the weekend we have concerns about that. it's around the issue of the kus comes union and what comes out we think that theresa may essentially says there needs to be volatility. it requires technological solution and it doesn't mean it
4:36 am
exists we've been offered it for some time have a closer alignment and a bureaucracy that sits behind it. give comfort why don't you lean into us this will be confidence account peak manufacturing and so, you know, we're not saying that this is a sort of deal, you know, the proposal is wholly inadequate, we're just saying to theresa may today, look, we know you're in meltdown try and regain the initiative here listen to us a little bit and use the opportunity to recalibrate. >> tom watson m.p. talking to cnbc earlier it was interesting i was speaking to him later on i said is the labor party ready for a general election he was hedging his bets.
4:37 am
what a poison that would be especially at this very delicate stage of negotiations as well. as we all know, as much as the conservative party has remained and brexiteers originally against the labor party is a split by the same karins well. interesting to get his thoughts. >> thank you for setting that up for me very nicely happy to say that sir michael fa fallon joins us. the prime minister lives another d day. she is in a stronger position. >> she has cleared the air a couple of the brexiteers have resigned she does not have agreement on the way forward so far as
4:38 am
trading goods and with that huge home market on her doorstep and i think she's now demonstrated that there really isn't an alternative to us continuing to trade along the lines we trade now with a common rule book and some freedom of movement so that skilled workers can move from country to country no one's come up with a better plan tumultuous as it's been, the air has been cleared and we go forward. >> so in you're steam you think that the chequers plan is the one that will stay with us >> yes it's smooth. it has to be europe isn't going anywhere. that huge home market of over 500 billion people is 20 miles away, it's on our doorstep for 40 years we've been doing trade with it. that trade has built up. we've been part of the rule book that's developed over those 40 years and we've got to go on
4:39 am
abiding by those rules over two years nobody has come up with any suitable alternative for us paying a bit of a price and we accept the rules and we'll have to accept some workers from one country to another in return for continued smooth access to the market. >> are you optimistic that the e.u. will be more receptive to this plan because they have been so far pushing back very hard against the u.k. with every proposal that's come up has been shut down straightaway perhaps do you think after the events of the last 24 hours the eu will be willing to give mrs. may the benefit of the doubt on this plan and perhaps accept the proposal rather than risk it >> wimbledon week, the ball is in europe's court at the moment. >> i like that. >> it is up now to europe to respond. i hope they will show it and not
4:40 am
just the commission but the other members of the european union. how do they formally lead after brexit they want to get their goods in. they want to be able to take our goods. they're a very complex supply chain, particularly for the car industry, aerospace industry right across the european continent. i hope they'll see that trade needs to continue as smoothly as possible and therefore the commission will start to negotiate realistically. >> we've spent a lot of time talking about trading in goods, less emphasis on services and also wearing a previous hat. not a lot of talk about security and defense as well. how do you envision this to look >> first off on brexit there aren't fully developed services. brittain, of course, has a very strong position on services. it's an international command
4:41 am
center it's the home of some of these really bins big industries we'll want that to continue. on security we've already punished that on the new security in the battle against terrorism and the struggle to control our borders properly against illegal immigration, the sharing of information to track down criminals, all of these the countries whether they're inside or outside the european union have a very strong interest. they're continuing to uphold it. >> once outside the e.u. can a member state still have the same rights as a non-member state is that going to be feasible >> well, it's going to be different clearly from not inside the european union. norway isn't, switzerland or turkey it's not the same as being a member, however, we are the first ex-member and we'll being the first ex-member to have left
4:42 am
having already had a relationship with the european union. secondly, we are a very large country and a very large economy. i think it will be in europe's 2 interests to have a relationship with us. >> do you think they could have viewed it better as a substantial bargaining zmip clearly when it comes to defense the u.k. is in a supreme position versus the e.u. >> yes if you look at the corporation as being between our police forces, between our intelligence agencies in the battle of terrorism, a lot of the other countries in europe have relied on the professionalism and experience that we have here in brittain i never saw it as a bargaining chip the security is too important. the bargaining will have to be
4:43 am
in the end about trade, about who has the right. there will be a compromise of sorts. a plan that's going to be published later this week sets out our view where that compromise should land it's up to europe to respond to it. >> you sound very optimistic, sir. just a little bit more i want to drill down on this point particularly back in january you said brittain should spend 1 billion pounds on the armed forces this year why do you think now is the time to spend more at the expense of health care, nhs, other divisions? >> because the threat has grown since we last looked at our strategic defense security position three years ago in that time the threat has grown. we've seen russian aggression. russian aggression in the ukraine, eastern mediterranean we've seen more and more terrorism and we have continuing failed democracies in iran
4:44 am
we have to respond to that that means, yes, looking at the defense budget and asking ourselves, could we do more? >> on that topic, of course, president trump will be visiting later this week. sir michael fallon, please stay with us. coming up, as if theresa may didn't have enough on her plate, president trump is due here on friday we will be discussing right after this stay tuned
4:45 am
happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.
4:46 am
4:47 am
welcome back to "street signs. u.s. president donald trump has announced brett kavanaugh as his new pick for the supreme court in the 1990s he worked with kenneth starr investigating former president clinton he still requires confirmation in the senate where a tough fight is expected despite trump's party. and president trump has lashed out at nato ahead of the summit between alliance members and brussels later this week trump called on other nations to
4:48 am
increase their contributions reiterating previous claims that the u.s. is spending, quote, far more on nato than any other country. on twitter president trump also sought to link nato spending to trade barriers that currently exist between the e.u. and the u. sm u.s. president trump will touch down in london for a three day u.k. event. the president will then meet the queen at windsor castle and follow it up with a trip to scotland trump is set to have a visit which is expected to be the scene of massive protests. joining us is the defense secretary. mr. trump is upsetting nato. president trump is heading to brussels and has been very critical of nato as a starting point does this concern you this ostensible ambivalence the u.s. has towards nato >> i think the criticisms are
4:49 am
legitimate i heard them before president trump. i heard them from previous presidents, that america was paying a disproportionate share of the nato budget the europeans should be spending more i heard that through most of my adult lifetime he's made very strong critici s criticisms he's right we agreed that we all would contribute 2% of our gf tp we're spending 2% but 16 of the 29 nato members aren't even spending 1.5%. so i'm with the president on this other european countries, germany, spain, italy need to be spending more. >> do you think it's right that he's perhaps forcing the hand by linking the concept of the trades and trade discussions with nato-related funding and defense? aren't they two subjects completely separate? >> they're not entirely separate i think it's quite legitimate for the president to be asking why american taxpayers should take the pain of helping to
4:50 am
defend europe at a time when he sees the trading relationships against them as well obviously it's above me on trade. i hope we can persuade the president that the alliance is in america's interests much as it is in europe's interests. the only time the collective defense is defined was after 9/11 and it was important for the united states as well as for europe, but it's up to the european leaders to convince the president that, yes, they do have the plans to slowly but steadily increase their defense spending. >> it isn't just about defense spending because trump has said he wants defense spending to go up he doesn't seem to believe in the merits of nato it's almost confined to a cold war era. is it still relevant >> yes it's a very successful alliance
4:51 am
but the president is right to modernize. his need is streamline the bureaucracy, speed up the decision making and make it easier to get troops and planes from one side of the european continent to the other so they can mobilize more quickly and i think the president is right and europe needs to respond, too. >> does it not concern you that on the one hand president trump is being very critical of his allies in nato and europe but at the same time also he's having a meeting with president putin right after meeting with mrs. may next week? >> well, we have to like it or not, we have to continue to engage with russia our policy has always been engage but beware. be very, very careful about that we've seen russian aggression in eastern ukraine and eastern mediterranean and the north sea and north atlantic so i think it's very important that we continue to have dialogue with
4:52 am
russia and it's quite understandable that president putin should -- president trump should be doing that with president trump. mrs. may will have the opportunity friday before the presidents meet, she will have the opportunity to set out again british concerns about russia. you've seen that very recently with the poisoning down in salisbury. >> just to rephrase that, this is coming at a heightened tension, heightened time of tension between the umpt k. and russia because of the poisoning, because of the events of the last couple of months. so you think the prime minister should use this as an opportunity to spell out the u.k.'s concerns with russia and then defer to president trump. >> we've had a british citizen murdered, it looks like a russian weapon deployed on british soil this is serious and what russia has been doing is completely unacceptable the prime minister needs to
4:53 am
speak about that with the president when he comes on friday the two presidents meet in helsinki, it won't be the only subject on the agenda. we have to curb russian aggression and help us bring the civil war in syria to an end and curb the beeline position. we'll encourage the president to be very, very weary of russia. >> do you think this is opening up a new type of world order with the u.s. distancing itself and perhaps looking to force, in his words, a relationship with his russian counterpart. >> they've had dialogue with russian presidents even under president ragan with gorbachev and so on. the president appreciates the
4:54 am
strength of the rules-based system that we have. the focus of the nato alliance, we defend each other, the importance of treaties that we don't allow countries to develop chemical or nuclear weapons. all credit to the president in what he's doing in north korea when it comes to world trade there have to be rules by which we all trade with each other. >> finally one last question for you. the threat of a cyber attack, what can the international community do to cooperate further against a potential threat be it from russia, china, asia where, of course, they've been hot spots for launch pads >> cyber attacks, as i say, can come from anywhere they can come from states, groups associated with states, they can come from individuals, from terrorist groups and we really have to work together on
4:55 am
that pool our expertise we have a cyber security center and we work closely with the united states on that. it's yet another example of how the alliance has to work together not just in exercising chips together and tanks together but in looking at the new forms of warfare, how you stop cyber attacks from disabling your systems and harming your comments. >> i did say that was my last question i actually have one final question do you think england is going to win the world cup? >> well, we hope so. it's been a very long wait for us here. back since 1966, which i'm old enough to remember so our hopes are going to the team for tomorrow night. >> sir michael fallon, thank you for joining us defense secretary. france will take on belgium in
4:56 am
the world cup finals france has not won since 1998 while belgium are looking to reach the final for the first time england will face croatia tomorrow and we'll talk extensively about that in tomorrow's show. one quick look at u.s. futures before we head out and see what the picture is like in u.s. trading. dow is opening up 30 points higher, nasdaq 15 points higher. that is it for today's show. i'm joanna versace "worldwide exchange" is coming up next.
4:57 am
4:58 am
your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
4:59 am
5:00 am
tonight it is my honor and privilege to announce that i will nominate judge brett kavanaugh to the united states supreme court. this is an incredibly qualified nominee and he deserves a swift confirmation and swift bipartisan support. >> president trump's pick for the supreme court topping your five at 5. here's what else is happening out there. the president is kicking off a european tour later today. the first stop is brussels we are headed there live straight ahead


info Stream Only

Uploaded by TV Archive on