A system you can count on, we need transparency. President trump ramps up his Public Campaign to blame china saying he has seen evidence linking the outbreak to a lab in wuhan. I think the World Health Organization should be ashamed of themselves. The threat of tariffs weighs on the futures rbf and posted better than expected profits revenue surge and shares sink. Jeff bezos plans to spend 4 billion on virus response measures apple beats top and bottom line forecast in the First Quarter but ceo tim cook said he wont pretend to provide an outlook. Sending shares red after hours a very good morning to you and welcome to street signs. A rough start to may, the only stock markets that are open are trading lower after washington and beijing increased overnight. Threatened new trade tariffs against china after claiming the coronavirus outbreak originated from the country the president did not offer any evidence adding, quote, im not allowed to tell you that and also saying the worth Health Organization is covering up for china. Have you seen anything that shows you that wuhan lab was responsible for this virus yes, i have and the World Health Organization should be ashamed of themselves. The eus president said the origin of the virus is needed. Asking if she supports calls by a number of governments to probe the source of the outbreak also asking whether she thinks china should join the effort of course one of the Lessons Learned from this pandemic is that we need more robust data overall. We need more centralized than an entity to analyze so that the Early Warning mechanism is better at the level of the European Union, we know we need a more robust system for such situations as we see right now with the coronavirus for building up the system which you can count on, we need transparency we will have to work on that after the crisis that means you would like to see china Work Together with the commission and others to get to the bottom of exactly how this virus emerged . Yes this is all of us important. You never know where the next virus is starting. We all want that for the next time, we have learned our lesson and established a system of Early Warning that really functions and the whole world can contribute to that are you concerned that will lead to a weakening of relations with china and some cooling 0 of or distancing . No. I dont think so it is all in our own interest. This pandemic has caused so much damage it is in our own interest of every country that we are better prepared next time we do not know when such a crisis occurs again but we should be better prepared now. Jeff also spoke about the sharp downturn of the economy and about the post Pandemic Recovery we have to stand together to work on the economic recovery. The last time we have seen a drop in the gdp was in the Great Depression this shows how huge a task is ahead of us. Everybody indeed needs the next one or two years, the front loading of investment, maybe targeting the countries most hit by the virus and the following economic lockdown. The eu on monday will launch as much as 8 billion to fight the pandemic telling us why a Global Funding march than is needed the only way to beat this virus is with a vaccine. We need joined Global Action to have a coordinated approach to find a vaccine when we have it, to produce it and deploy it all over the world. There for, we have on monday the 4th of may, an online pledging conference we hope we are going to raise up to 8 billion. Geoff is now with us. You conducted this interview last night with the president of the euro area. It is all well and good to have this Recovery Plan but speed really matters here. What was your sense speaking and discussing this problem . Obviously they are going at the right speed but there is frustrations still about the pace at which they are still moving how quickly can they move through that eu leaders meeting where they talked about focusing on some sort of shared deb burden paper to the idea that there was a trillion euro idea fund but it was very slow i asked the president about how the lending terms would last and what would be the detail for companies or countries, she said it is too early for that kind of information at this point which suggests that it could be weeks and weeks before we really see something put together that can then start to provide Financial Assistance for companies in the process. Frustrating, i would say in terms of how it is going to be assessed by those who continue to wait and watch and ask, what does membership of this block or the eurozone actually mean in terms of shared pain when the going gets tough certainly with the speed the virus is evolving. We are already seeing the economy reopen and how we will shift and potential stimulus support. The other comments around the europeans supporting the investigation around the origin of the virus thatconversation has become really political what is your sense of going on a way without risking it and with regard to how the rest of the world views beijing . It would be great to have a nonjudgemental inquiry into the origin as we look at gilead and amgen and all these Companies Working hard to bring some kind of remedy to the table it would be useful for them to get a sense of where this started, what the chinese Scientific Data reveals and how quickly it then passed among the chinese population and what the a spread was. The w. H. O. Is probably the best organization to assist in that it has been politicized rightly or wrongly by President Trump. Well see what happens there and with china, theyve become brittle with anything that looks like criticism by a foreign country. The message from beijing has said we are not interested in participating in anything. I think it is bold that president von der leyen is adding voice to this im not sure well see any action soon from beijing markets under pressure this morning and we are seeing a selloff of that risk and perhaps the rest of the world to come back in. Thank you for being with us. You can get more of that interview and find out if she thinks eu cohesion is under threat lets check on how the european markets are for april. Rallying about 90 for the month. Taking a look at the ftse mib in italy. That index in april gained about 3. 75 , so lagging what weve seen in germany. The buying seems to have accelerated in the last week or month there. Gains for the month, difficult yesterday. Taking a look at the french index. The cac 40 rallied as well overall for the month of april, the stoxx 600 overall the best month since 2018 benchmarks have risen but not to the same degree we have seen on wall street. Uk Prime Minister says the country has passed the peak of coronavirus but will not ease restrictions too soon. He will unveil plans next week the first time we are past the peak of this disease we are past the peak and we are on the downward slope. We have so many reasons to be hopeful for the long term. The uk is leading efforts to find a vaccine germany will reopen playgrounds, museums and churches on monday but will not decide about schools and sports until next week as it eases out of lockdown. They say there was a risk of resurgence if people dropped their guard and forgot about social distancing. Translator i am firmly convinced the interest of the economy and social contact are best pursued if we look at the fact that we can take a step forward to allow more contact but we do not have to go back again and caution remains with the comparative hygiene rules. Some fresh estimates out of the Spanish Government now forecasting 2020 unemployment at 19 . 2021 at 20. 2 . So we should see some recovery between this year and next now seeing the 2020 deficit at 10. 34 by 2020 and the 2020 debt to gdp ratio, they see at 115 by 2020. So those are fresh numbers demonstrating the extent of the economic hit spain, one of the strictest in terms of the lockdown measures just beginning this week to ease those measures with children in spain able to return to the outside world for the first time in several weeks theyve had a massive reaction and we are seeing that translate into their unemployment deficit and debt forecast. Yesterday. The ecb was on focus they left rates on hold and said the Purchase Program could run to the end of the year stressing the governing council would stay in place during the picture. The hard numbers are just beginning to come. We just had a few numbers from the First Quarter. Our forecast for the Second Quarter points to minus 15 on a quarterly basis. As you saw, european equitys had a strong month lets look at bonds now. The 10year in the United States, the 10year treasury over the month, we saw the u. S. 10year jump early at the beginning of the month reaching north of 0. 05 now below 0. 065 a pit of a picture there with equities rallying. Being looing at the german 10year, the bund trend lower. Following a similar trend rising still firmly in negative territory, 0. 85 trying to keep a degree of pressure on fiscal policy measures and adjust the composition and looking at the italian 10year, very sensitive to what is going on at the ecb we have seen a spike about three quarters of the way through the month reaching north of 2. 2 we have see the yield tick up a little in recent trade the level now 1. 76 . We are going to squeeze in a quick break. Coming up, turbulence ahead for ryanair as they warn of job losses due to the coronavirus. More when we come back these days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back to street signs. Eye few of the stocks in focus here in the uk, ryanair has announced it will cut 3,000 jobs and reduce pay up to 20 it has reported a net loss of 100 Million Euros in q1 and further loss in q2 it will ground 99 of flights through july uks largest House Builder barratt will continue on with morning may 11 it furloughed most workers holding up better than the broader index as steve pointed out, the Construction Center has been getting going again in the uk theyve been able to continue work through the lockdown. Shares have held up okay over the course of the month. Well take a look at the Banking Sector which saw profits in the First Quarter to 519 Million Pounds the british lender will beat expectations and put aside 802 Million Pounds amid the economic down turn. This takes the total provisions to 6. 7 billion pounds. Sticking to the latest priorities ahead of the lockdown rbs shares are higher by 2. 8 . Lets bring in Laurie Mayers i want to start with the funding set aside. 6. 6 billion is the number set aside for the expected loan losses that are expected to come what do you make of that number . Do you expect to see these do more or is that sufficient our expectation is that they will need to set aside more. This is primarily because for the most part now, they are setting aside provisions for what they expect to happen they havent actually experienced that much deterioration, particularly relative to where they were lets say at the end of last year in their loan books so we think there is more to come q2 will be more useful and insightful than this First Quarter. Well have to wait to really evaluate those numbers it has been an interesting result season so far showing how different business mixes are fairing and seeing different reactions. What is important to the biggest mix toward the current crisis. Thats the term i used, mixed bag. I fully agree with you that the different mix in the loan book plus Capital Markets can make a big difference so far this year. In terms of the best book is probably a mortgage book from that point of view, wed say in terms of credit losses, we would say probably nation wietd, well be best positioned because thats what theyll be focused on but thats not necessarily so for the revenue side but in terms of credit losses and pure mortgage book, well experience a lower level of loss and clearly, we are seeing pressure on the margins given the drop in the interest rate. How low do you think the nims can go we do expect the pressure some of them have held up pretty well some seem to be in greater pressure before the coronavirus outbreak and reduction of base rates by the bank of england it depends on what the bank does we are not in negative territory in the uk at this point in time as compared to europe. But they may hold up from where they are for the time being. I think we are more worried about pressure on revenues additional provisions for credit losses at this point in time this is much more of an issue in countries where there is a link between how much does the Sovereign Rating matter given how much debt they will accumulate to support the economy . In all jurisdictions despite the strength or weakness of Sovereign Rating actually for the uk when we put the uk Banking System on negative outlook back in december last year, so well before all the crisis started. A big driver of that was the element of the Sovereign Rating of the uk which was put on negative many uk banks had negative outlooks partly driven by the fact that sovereign support element could go negative excuse, could go to the lower level even for the uk banks. The sovereign element is still very important in the Current Situation we are in. Through all of this and what the bank is playing directly and indirectly to the banks is really important in terms of mitigating to the extend that they can to some of the negative impacts that would otherwise occur as a result of the crisis and economic lockdown. Laurie, really appreciate your in sight. Coming up on the show, another rough week for jobless claims but the Labor Department believes the worst appears to have passed. Well take a look after the break. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines European Commission president tells cnbc an investigation into the origin of the coronavirus is needed as she addresses the economic damage caused by the pandemic we are in a very deep crisis and it will take quite a while to recover from that President Trump ramps up his Public Campaign to blame china threatening beijing saying he has seen evidence linking the outbreak to a lab in wuhan i think the World Health Organization should be ashamed of themselves. The threat of tariffs weighs on u. S. Futures and pulls the ftse lower tech titans see red. Amazon shares sink as jeff bezos warns the retail giant could post a lost. Apple ceo tim cook said he wont pretend to provide a positive outlook amid the pandemic. Weve got some fresh data on the uk economy the april final manufacturing pmi come in at 32. 6, just a touch below the flash at 32. 9. Broadly within expectations. Now the lowest on record a couple of Interesting Data points the manufacturing pmi output sub index was sub for april. March coming in at 43. 9. In terms of new orders, that sub index also the lowest on record. So uk factories suffering the worst month in three decades that is the message from the data provider. The key here was priced into markets given that we had flash numbers, final numbers that we saw early on lets push on to early reaction. We saw that pressure this morning. Now looking at the stock ftse 100 down 1. 9 following a sharp drop yesterday that index dropped under 3. 5 within the benchmark. The stand outperformer better than had been expected sticking to their strategy that allison rose outlined before the pandemic sit they also set aside 800 Million Pounds for future losses looking at what that bond market looks like trading at 0 b. 32 you can look at the last month that guilt yield after dipping, thats the price rising over the course of the month. Taking a look at u. S. Futures. We are looking at more losses, the dow pointing to the drop at the open the s p 500 and the nasdaq also pressure following a weak day yesterday for wall street. Part of the reason sentiment has weakened over the last 24 hours is this renewed threat of trade tensions resurfacing President Trump has threatened new trade tariffs against china after claiming the coronavirus originated from a lab in the country. The president did not offer any evidence and was asked whether he would insist allowing investigators into the country we are going to say, so far, china seem to be trying to be some what transparent with us. Well find out youll be learning in the not too distance future. The federal social distancing guidelines were lifted a few hours ago. The death toll has risen above 62,000 now the federal guidelines are no longer applicable and it is up to the states how they want to proceed exactly we are seeing a patch work of decisions by states and some push back as well in the state of michigan. The governor wants to extend their stayathome order they have approved a lawsuit against her. There have been demonstrations at the capitol there we have seen a number of states that have financial problems as a result of this one state reports over 200 billion could be the loss. President trump is now shifting his focus to a vaccine the president said that he, not the scientist, is in charge of something called operation warp speed trying to find 300 million doses of an effective vaccine within eight months in some cases within half the time that scientists thought it could be done astrazeneca said it could get 100 million doses by the end of the year on the wuhan lab, he is saying he has seen evidence but not saying what that evidence is certainly getting more and more political by the day. Thank you. The savings rate in the u. S. Is at its highest level in nearly 14 years after surging in march. Economists argue this could be the catalyst as consumers see lockdowns could be lifted. That is a contentious point of debate that could become more controversial as we move forward. U. S. Weekly jobless claims hit 3. 84 million another thursday, another dismal unemployment report from the government this time 3. 83 million filed in the past yeek. Thats higher than the estimate of 3. 5 million over the past weeks, 30 million americans or one in five workers has filed for unemployment claims the number has come down from a peak of 6. 8 million. But every one of the numbers since then would be a record on its own from before the coronavirus hit the United States in terms of the insured Unemployment Rate in terms of what is eligible by state, michigan leads at 22 , pennsylvania at 19 . New york and california. Other states are lagging because they havent had a big effect on the economy as some of the coastal states had experienced florida with a 2 insured Unemployment Rate, their problem is that they cant process the flood of claims coming 64 have received benefit. A lot of americans going without the benefits they need to get by day to day reporting for cnbc Business News to hear more when our colleagues speak to larry kudlow, advisor to President Trump. Dont miss that interview at 15 00 cet. The International LaborOrganization Warns nearly half of the Global Workforce are in immediate danger of having their work flow destroyed. In the Second Quarter of this year, we are looking at the equivalent of the loss of 305 million jobs that is an extraordinary figure. Figure it more extraordinary when you figure three weeks ago that estimate was 105 million. We are going downhill still. Adding that will not be sufficient to guide the damage caused by this outbreak. One of the features of this terrible pandemic is the type of International Common purpose we did see in the past, we did see in the crisis of 2008, 2009 is by and large missing or inadequate we need to see Member States having the un in position to do more it is not too late but is necessary. Amazon and apple both see red in after hours trade there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. The big u. S. Tech players have joined the fight against the pandemic apple and google have released a version of virus tracing software allowing blue tooth signals to allow notifications to users who may have been exposed to covid19 but it will not collector share user identities. The development and use of Contact Tracing technology has already faced criticism in europe french lawmakers have raised concerns about data sharing as the push to use an app as part of the exit strategy in an exclusive interview, asking whether she thought this was a good idea . No. We should not set aside privacy concerns but it is possible to have a tracing app it is important to us that it would operate throughout the European Union and must be decentralized. You must have privacy and a smart system that indicates whether you have been in contact with a person who was or is corona positive. Tech company has developed a bracelet that will alert wearers if they get too close to someone and will alert someone if theyve been exposed to someone with the virus there is indeed a possibility to do this the way we do it at rombit is by ensuring that only a certified or a trusted person can look at that data so we are not spreading it over the internet or through a Cloud Service we are keeping it local and only accessible to a person which can be trusted with that data. Lets get a check on how tech performed through april. The nasdaq rallied 15 higher leading the way through the benchmark, the best month since early 2000 and the index rallied. Strong demand as investors position their portfolios through the pandemic and who may come out as winners. Truly a signal there shares in twitter lower as the Company Offered little sign of recovery in advertising over the First Quarter. Unlike its competitors beating estimates and posting a smaller than expected loss twitter saw the number of active users rise to 106 Million People cfo said the company is continuing to improve the company algorithms we are trying to help not just with launches but performances over time that goes with app installs and the growing market where we have a growing Business Today that will be and needs to be much bigger over time given the hard work we are doing and we need to keep moving down that funnel and helping to get all the way to a purchase on twitter eventually if you are an amazon share holder, you may have to take a seat that was the stark message as they plan to spend 4 billion in the Second Quarter and warning it could post the First Quarterly lost in five years shares sank in extended trading. The Group Reported a rise in expenses as it launched a huge recruitment drive in a bid to meet demand. Top line applications and aws crossed 10 billion in revenue for the first time apple tim cook said, quote, it is hard to see out the windshield topping 58 billion in the Second Quarter beating expectations Apple Services saw a 16 rise amid increased demand. Cook said he was not prepared to make projections given the lack of visibility. Lets bring in dan ives add Wedbush Securities ultimately, it was better than feared. If you look at thepandemic, no just because of the supply chain but the demand with no june guidance. In my opinion, it was prudent. It would be like playing the game blindfolded darts and looking on the other side of that dark valley the one thing id focus on is china. Rebound and services that is key to really Holding Valuation here in an uncertain time coming in to these results, you mentioneds the latest research would leave clues to this launch. What did we learn in terms of the timetable and the tradeoffs in launching versus delaying it is a great question. From a tea leaf perspective, i believe we are looking out to december and just what happens with the global lockdown can they release the phone into september, october the supply chain is getting more normalized but do they release it with health and grocery and Hand Sanitizer over an iphone 12 in terms of a priority perspective. That is the balancing act. I think there is a small chance they release this into september october. You mention how important china is from the market demand side it is also crucial on the demand side for apple tim cook came under pressure and rejected the idea that they are overreliant on china do you see them retooling in the wake and the political tensions that have evolved on the trade front aside from the pandemic . We saw this last year with the u. S. china trade war apple is really the poster child when you look at companies heavily tied to china with foxconn. There is no chance they can move out of china maybe more than 5 of production over the next five years. Thats where they are in position with the foxconn perspective. The overall heat, i do not see that changing. They are in the eye of the storm from supply and demand supply chains normalize. You are starting to see some break down in china. Thats where i would see a ray of light in a dark storm a good message there. Apple has been embarking on this shift trying to change perception and the underlying Business Model to become more of a services and less hardware company. Where do you think the viewing stands and when is it realistic to look at them as a services company, not a hard wear company. I think you are seeing a big part of the rerating in apple. I believe services from a valuation perspective is worth 5 to 600 billion it is a huge part of providing the stability or safety blanket in this environment. Going forward, thats a 60 billion revenue treatment next year the heart and lungs of cooper continue owe will be iphones they live and die by that. If you look at iphone numbers. June is going to be a trough you look at last night, the star in the show was services that continues to be the key lets bring in karen who looks at tech closely for us karen, please come into the conversation i wanted to ask you about the pricing leaks. What we heard in the report suggesting that iphone 12, the 5g connected device wont be any higher than the 11 was which is different than say, samsung. The potential change and much cheaper iphones coming to target the emerging markets what does it mean for the mechanism of the iphone now . They are caught in really what id say is a balancing act. 1,000 iphone looks more attractive today than it did a month ago to consumers an important call of 20 to 25 million units. When it comes to iphone 12, i think you are going to see four phones the higher end component will be the balancing act otherwise, this is a product that will not see demand i was surprised to see the motivation for tech ceosto get us in the lockdown do you think Silicon Valley can save us this time around for them from a privacy perspective as you talked on this show, there is some concerns when you look from a technology perspective. There is still heavy lifting to do right now, those are the safers from a tracing perspective you look at cook and apple they continue to lead by their efforts. That comes forward especially in this horrific environment. Amazon as well. We had the estimate that 4 billion will be spent on covid19 including testing they are building a laboratory is this proving that they are good corporate citizens . For them, there is definitely pr you look at amazon they have a highclass problem when you look at the growth, they continue to see a bonanza of growth but they continue to spend. You look at fulfillment cost, warehousing and other initiatives. You see the knee jerk reaction and the streets focus on growth you look at the tech giants, they are one of the few seeing tale winds and with countries being tasked, they need to touch that especially in this unprecedented environment. Dan, thank you for being with us Interesting Times in the tech sector dan ives, managing director wedbush. Karen, thank you for being with us lets look at trade. It has been a strong month for u. S. Equities. A strong rally we are seeing the dow and s p had the best month since 1987. The nasdaq the best month since 2000 now we are being looiking at a bit of red on the board. Yesterday was a difficult day for wall street. We are ending the month on a little down beat note. President trump raising concerns we could see trade tensions escalate once again laying the pressure on beijing in terms of how theyve handled the pandemic and on the origin of the coronavirus. Thats it for todays show im Julianna Tatelbaum thank you for watching Worldwide Exchange is coming up next. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. It is 5 00 in washington, d. C. Your top five 5. You may want to take a seat for this one so says jeff bezos and Share Holders selling stock. This morning, apple pulling guidance calling right now the most challenging environment it has ever operated in the ceo does say there