The group will hit higher in the third quarter. The question is still out how long it is going to last thats the real question we spoke to the former Vice President of the ecb as the central bank chief said she is undetoured by the Court Decision another member tells us the decision could have unfortunate consequences this could infringe in the end of independence of the ecb im not sure if it is laughable or serious and dangerous reassuring the markets and instability amid the outbreak in the plunge in the First Quarter profit the cfo tells us he expects an attractive recovery. With a sharp decline but not as sharp a recovery but more an elongated recovery thats what we are planning. Maximum caution is the latest message from the uk Prime MinisterBoris Johnson as he prepares to announce a limited easing of the lockdown a very warm welcome to street signs markets this morning responding positively as representatives from china and the u. S. Have agreed to Work Together on the face 1 deal and create a favorable environment coming after a recent war of words between washington and beijing over the coronavirus outbreak lets look at the market moves more closely uk markets are closed for holiday. The dax trading about 0. 8 higher that had been more than 1 higher the cac 40 up about 50 basis points not only reacting to the talks between washington and beijing and the phone call they had but bracing for the euro Group Virtual submit finance ministers in the eurozone will be meeting to try to agree on terms to the emergency credit lines european investors keeping an eye on that. The swiss market about 0. 4 higher we are seeing a preference for cyclicals this morning we are seeing the likes of daimler, porsche and psa no doubt following the tensions between u. S. And china the chip makers. Yesterday, the tech sector led in gains you can see chip makers in europe for the most part trading higher sd microup ams and semiare trading on the back foot this m is a way forward if beijing wants to engage in fair relations highlighting the strained relations. Theres never been an attack like this and it should have never happened could have been stopped at the course could have been stopped in china. It should have been stopped at the source and it wasnt right now, it is a relationship of disappointment and frustration. The president has said how frustrated he is that the decisions of china put americans at risk. We are demanding every nation be transparent and open. The things the chinese say they want to cooperate. Great. We are prepared to work on this just as the Trump Administration has done for three years now. It is interesting to hear the tone coming out of top trade negotiators. How interesting is it that the top officials held the phone th months atas in the form of a phone call confirmed by the news agency on the chinese side we got out of it that on the morning of may 6, both sides discussing cooperation and public sanitary cooperation where they should work hard to push for positive results. Both sides agreed to keep communication. As part of the phase one trade deal, they agreed they would communicate at least every six months on the u. S. Side, they say Good Progress is being made to make a phase 1 agreement a success and u. S. And china fully expect to meet obligations under the agreement in a timely manner we got data on the latest trade situations for the respective countries. There was some concerns china was not going to be able to make good on their part which is an increase in purchase of u. S. Goods. The first year, expected an increase of 76 billion of u. S. Goods. Part of the phase 1 deal is for china to buy additional 200 billion of u. S. Goods. With this latest data points, they are behind on their purchases. As i mentioned, both sides saying this is Good Progress being made this is the first get together or talks since the phase one trade deal was signed in january. This was good and lifting the markets, as you can see. Closing out the week the shanghai composite up 0. 8 and closing at 24233. A lot of support compared to earlier in the week when we had simmering tensions about where the coronavirus started from ill leave it there for now, julianna back to you. Lets bring in our next guest, steve and karen are also with us. Thank you for joining us lets kick off with what weve seen in the equity markets quality stocks have been benefitting from this rally more so from the valley parts we are seeing less loved parts of the european markets bounce industrials and autos are performing pretty well what do you think we see from here as we look to the reopening of several economies throughout the world. Will we see investors put money back to work in those parts of the market we think there will be some money but those things we are looking at is how we are opening up in china is playing out what you are seeing is from a consumer perspective they are staying with the softer consumption in the Technology Side of the equation where you will see the first parts of the recovery as we emerge from lockdown we are getting a glimpse in the world. One of the big question is what will consumers do with the higher rate consumers are seeing now. What is your take as consumers take in this time. Will they hold on oractually distribute into the economy by ramping up spending . We are of the view that consumers will be rather slow in terms of grinding those savings down this has been a shock and as a result, they likely will go forward and try and rebuild their savings. In the event of the second round of outbreaks or other shots to the economy, theyll want to be ready. I want to get to the reaction we are seeing in markets there has been a lot of information from the earnings. Yet, we are not going anywhere fast and what are we waiting for when it comes to the data and real evidence used from the impact. In terms of the investors seeking as the next trigger for the market for us, what we are looking for is a greater clarity on what the trajectory of the recovery looks like what we saw in the first parts of april, we unpriced the risk of depression in the global economy. As weve seen from a lot of companies, they still dont have great visibility on what the shape of the recovery looks like once we get clarity on that, we think the markets can better price that and lead us more closely in terms of the direction 2021. Weve been talking about the differenti different alphabet shapes. How concerned are you about that despite the rush to provide assistance by governments and Central Banks that it runs out just when Companies Need it most we are of the view we are going to see defaults. The objective by the banks and government to spread out those and not mack those about access to liquidity and not access to the models and that will play out over the next 6, 9, 12 months Going Forward from here thats why when we are looking at companies it is really because of the Balance Sheet and strength of model and Revenue Streams here given those kinds of outlook a very easy question for me a lot of midsing single to high there. There is some value there i think the big challenge for a lot of investors now, what we are doing is to try to look to 21 into 22 to try to understand what types of earnings can be generated by a lot of these companies Going Forward. We have to recognize that the Revenue Companies were generating pre covid, the costs would be the same oreven relatively higher because of the debt the profit structure well see may be lower from here and that results in the kind of value traps you will see highlighted in a number of companies we want to be weary about those types of outcomes. When you get on the call with your customers, what are they doing . Are they buying or selling the other part of that, how long a time frame are they willing to sit with the positions at the moment which are quite volatile . Lets face it, our clients have taken two approaches . They have two piles of savings on one hand, they have more strategic savings, theyve started to stretch the horizons. Looking for the quality and reliable revenue in earning and income streams with what weve seen over the last three or four weeks, youve seen a lot more tactical activity start to come back. Companies unduly sold off because of shortterm earnings and dividends that have attractive prospects and trying to participate in those activities in the market i am a bit surprised about how much appetite there is to be participating and starting to step back in over the last weeks. Really appreciate you joining us and the candid insight. Lets get a check on how german markets are doing after exports sank in march way down in the large drop of european demand a far drop from 5 than expected with a drop of 5 as the surplus shrank a little more red on the board but overall we are trading higher at 0. 8 at one point, the dax was up more than 1 siemens shares up about 5 this morning lets get out to annette who joins us more on this stock. As we heard from our last guest, one key question is how the recovery in china is going i know siemens responded to this exactly the ceo was commenting saying that it is strong. This is probably giving us some hope of perhaps some delay, we might also get a stronger recovery he was also saying that ros slu little longer which is more of a concern to the business. Shares are up that much, i guess because they give some visibility, i guess. They have some visibility when it comes to how long the crisis will last. How long the damage and effect also on their business that is probably giving investors some sort of, i would say, confidence that siemens might evolve and emerge in a world that might be more digitalize take a listen to how long they think this will last from q 2, q 3 and based on what we hear from our customers and supply chain and those opening up and the close down geography that is, lets say, very difficult to judge. The question is still out is how long it is going to last thats the real question where there will be some sequential relief we are expecting three to four quarters before the up tick again. Clearly siemens is benefitting from the new industry new business was stronger than expected, actually helping, and mobility business is doing very well where they see weakness is in Digital Industries and Smart Industries business but overall, they seem to be quite confident that actually, as i was saying before, they can benefit from a more digitalized world Going Forward. Thats what we are all experiencing and most likely will be here to stay, a more digitalized economy. Thats what siemens is saying should be positive for them once we are out of that crisis. Of course, they also dont know how long that will last and how strong the recovery will be in the end. They seem tentatively optimistic back to you. Another big mover this morning, ing the dutch lender plunged as the bank upped its loan provisions to 661 Million Euros the ceo said the bank was well capitalized. The banks cfo outlined what type of of economic recovery can be expected from the pandemic we are going to uncharted territories. People talk about the vshape, ushape or wshape our own view is that well have a sharp but not too sharp, more of an elongated vshape recovery thats what we are planning on coming up, the uk government prepares to unveil a road map to exit the lockdown and warns it will come slowly and with maximum caution as the uk prepares to remember and celebrate ve day 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. The uk government is set to announce a uk easing and will unveil a road map on sunday but has warned any restrictions will come with maximum caution. Lets get to steve as the country also gets ared to celebrate ve day i never know whether i should say celebrate or comment rate. As it was said, we may allow a brief period of rejoicing as japan remains sub ydued i feel like thats where we are now. That generation in 1939 to 1945, that generation in the act of surrender with the signing in berlin if we draw the parallels forward to today, there are so many things to be cautious about. Would you believe i actually saw Boris Johnson. He was going for a short walk with his security detail hes got a lot of decisions to make weve seen reports about what could be coming and they are saying, look, weve got to be really careful the mortality rate, the r rate, the reproduction rate of infection standing between a half and. 9. If it tips over, it means a whole host of infections it is a bank holiday we dont normally have a bank holiday on a friday. This is to commemorate, celebrate ve day on sunday, the Prime Minister will make his televised address and talk the country through his road map to exit we believe it will be very limited. Limited outdoor exercises. Churches and other areas may be opened Garden Centers and outdoor places that seem a little concerning will be allowed to open their doors actually Rail Services will go from 50 up to 70 of capacity thats the report from the bbc it is an extraordinary place to be ill tell viewers about this shot this is buckingham palace. In 1945 on ve day, the balcony was wear King George Vi and Queen Elizabeth who later became the queen mother were going all the way down from the palace to the square princess elizabeth and margaret, the former of course became her majesty the queen was in the crowd in cognito we understand shell be making a speak, that is significant because 75 years ago, her father made the speech. Thank you for bringing us that context and that beautiful shot this is some big news for sports fans out there. The bundesliga will restart next saturday there will be strict protocols and most have nine games to play in seven weeks players will be tested before and after games which will take place in empty stadiums. Taking place in span italy, there is still uncertainty. They are kicking off may 16. Something to look forward to very near term shares in lazio. And others have fallen about 20 over the last three months the uk premier league has not made plans the fa has planned a return to matches and training later this month. The protocol put in place and distributed to clubs regarding concerns have raised concerns. The measures mean banning massages which could increase injury risk. The player and staff could be reduced in matches and straining sessions still ahead, investors drive shares of uber higher. Why they are looking for a coryft aerble quarter. Sleep this amazing . Thats a zzzquil pure zzzs sleep. Our gummies contain a unique botanical blend, while an optimal melatonin level means no nextday grogginess. Zzzquil pure zzzs. Naturally superior sleep. Welcome back to street signs. These are your headlines trade talk pushes stocks around the globe higher as the u. S. And china agree to create a more favorable environment with autos leading the charge according to the none farm payroll report treasury yields push to record lows ecb president says she is undetoured by the german Court Decision calling for justification. This would infringe in the end on the ecb im not sure if it is laughable or serious for the independence of the ecb the german industrial giant sees profit fall but the coo says hes confident the group will hit the bottom in the third of the quarter hes difficult the question is still out is how long it is going to last thats the real request. Riding in recovery the ride hailing giants said bookings have risen off the lows saying it will be quarters, not years until the group is profitable lets get a check on wall street we are posed to a positive start to trade the dow looking at a stronger start. Yesterday, tech stocks helped lead wall street rally the nas heading to positive territory for the year the main event today is that none farm payroll report well look at how the labor market fared weve obviously had staggering numbers and get a more robust look at how productivity has evolved. Weve taken measures of how to reduce and make those payment protections out of washington. We are seeing in europe, gains across the board other markets are trading off the other highs of the day the dax trading 0. 7 higher. The german benchmark up. The cac 40 up and the ftse mib up about 20 basis points some optimism around u. S. china relations. Coming out with a fairly conciliatory tone. We have a Euro Group Meeting and virtual submit where the finance ministers look to agree on terms from the emergency credit lines we are looking at the german 10year trade. Over the italian 10 year trading at 1. 85 ecb president Christine Lagarde as she talks about that German Court Ruling she says she is, quote, undetoured by the ruling to justify the asset purchase program. Asking the bank to make the assessment on whether the effect outweighs the objectives telling a panel that central bank is an independent institution that answers to the european parliament. Now the court has threatened to block the bunds bank from participating in they do not respond in three months. Former ecb board member told the german courts ruling could hamper the ecbs independence. If one takes it more seriously, then it is a bit worrying if ecb had be willing to go looking into all the frozen counts, who would be heard they quote the savers and companies. In the end, what will the ecb do with that. Will they have to balance the price mandate and impact some people, some borrowers this will infringe in the end of the ecb. Im not sure if it is laughable or dangerous for the ecb former ecb also spoke to us and hailed the ecbs response to the ruling it does some damage fortunately, the ecb has reacted very clearly particularly in the Statement Issued by the governing council of the ecb, reaffirming its independence recalling that the European Court of justice. The superior Court Policies and has reaffirmed their mandate and commitment to all area countries. So i think it was an excellent reaction to the ruling of the german Constitutional Court. German lawmakers are examining whether to require the bank to report to parliament on policy following tuesdays ruling saying the move would be significant as the eurozones biggest central bank is not ablidged to support. Going now to our guest, florian, thank you for being with us. Break it down. What is your view of what should happen here. We have the court ruling and the response saying the ecb will be undetoured as they see fit the ruling has been a new chapter in a longstanding consultation between the european and union law the Constitutional Court made two things clear the first one that the court really recognized the sup recommend see of the eu over national law over constitutional law. It made also clear the courts can control the eu law remaining in the scope of power that has remained by national law. It did so and compared to the ecb and European Court of justice and the court was ultrawired in the end, it will have the effect that the bundesbank will have to check their asset involvement on the new check whether it feels bound or not bound, it is not so much relative to how the test will be conducted over the next three months the Constitutional Court said the German Government must monitor more closely whether an ecb is still acting within its mandate or outside buyers. This is something we have to insure institutionalize. At what point, do you see the mandate being control. What institution should have the say over that . Caller this is a tricky matter of course, to say quite bluntly or directly, no one, neither the Constitutional Court or someone in parliament thinks the decisions on Interest Rates or other ordinary policy decisions should be monitored or directed or commented by someone in the parliament. This is not the content of the ruling and not the intention of the german policymakers. We are discussing a more difficult aspect when it comes to a conventional Monetary Policy should it even be allowed in the democratic environment to define the term Monetary Policy completely without any control, without any corrective checks and balances on its own are not or must be someone to control that definition or the practice of the Monetary Policy is still in accordance with the law. I do think we need such instance to control the application by the ecb. At best, it would be the European Court of justice doing it in a precise way. That was one thing we are focusing on that they did not do its job properly i think there must be an instance we must certainly not go to a situation in germany where we discuss the single policy decision by the ecb on a regular basis. Would you like to see them being accountable to parliament to have surviving in this capacity as president in the bundesbank meeting you on a regular basis explaining the poll sicks and ultimately that you have a say ultimately in what is okay and what is not okay caller i think it could be a discussion that could be discussed with bundesbank. I would also do it and discuss with the ecb itself. I think we need the regular reporting and that is what they request for the bundes leg someone in the parliament that is accountable the court does not so much insist on the certain outcome. That in no way saves for the asset and bond purchases in no way it does say so requesting us to monitor and set up the process to discuss whether the limits of Monetary Policy and the mandates which is not something ecb has created itself but has been set up and. The mandate is kept and respected. I think process and structure is the thing we must establish now. Are you not concerned that this move now is actually compromising the power to hide the Current Crisis and potentially the crisis in the future that may be one, in fact, if ecb cannot establish the proporti proportionality of the measures. There is the core of the conflict shall the central bank be entitled to do whatever it thinks is appropriate and necessary to do . And not be bound by limitations of law or should it be bound by the limitations of the law should it be another instance to interpret the boundaries and limits of the policy i as a democrat and supporter of the law deeply convinced that the argument of the central bank means that they must be entitled in the policy and in the way that is client with basic principals with democracy and rule of law. We need the policy but we also need checks and balances as to the respect and boundaries and limits of Monetary Policy. We appreciate you being with us lawmaker with the fdp. Annette, thank you for sticking around for that interview. Lets get a check on the treasury the twoyear treasury hitting a record low we also saw fed fund rates pressure in a pressure environment. This is one place they determined not to go but they think is not out of the realm of possibility. You have a look at the bulk. The twoyear at 0. 2 10year at 0. 4 . Looking at the tech heavy index yesterday. Significant day for the nasdaq inching into positive territory for the year that was helped in large part by gains by facebook, amazon, and apple. At one point, down 25 year to date things have turned around. Investors have flocked to these tech giants and taken money out of other cyclical parts of the market shares of uber trading higher after the ceo said requests are picking up again after bottoming out in april after posting 2. 9 billion loss in the loss of business but reported a surge in uber eats business lets get to karen for more. Why were investors so willing to look through this mammoth loss we saw first up before weve even got to the market a reporting where we saw a surge in the back of reporting of optimism in those numbers. The numbers were okay. What weve seen all along with the Technology Names estimating along the point. 1. 7 per share is more than anticipated. When it comes to individual numbers, lets look at the bad first widening 2. 9 billion for the quarter versus 1. 1 billion. The number of bookings have declined very rapidly. A fall of 80 is what you saw in april. Very downward pressure in terms of bookings. Looking at the recovery side in that growth with a smaller base than we are used to if you break it down, the gross bookings in the united states, 12 higher than the previous week, hong kong is stronger than emerged. 70 of the precrisis bookings in that market. Still early days we are down in surveys in france, about 90 expect to be back in an uber in less than three months i would say the numbers are not as strong as you saw for lyft where they are at in the u. S. Market in terms of the individual parts of the business commuting. There is some feeling some will connect workers to get them to and from offices in uber rather than in Public Transit who would have thought several months ago, we would be talking about how strong the delivery aspect so many nay sayers saying what is uber doing in this business 54 jump in uber eats. What does this mean overall for the company profitability. This was a loss of 612 million. We are hearing the company was trying to get to profitability uber will try to ex tract 1 billion from the business. We will speak to uber ceo starting at 2 00 p. M. Cet. Another rough week for u. S. Jobless claims well discuss this after the break. Welcome back nearly 3. 2 million americans applied for unemployment the lowest number since the u. S. Went into lockdown in total now, 33. 5 Million People have lost their jobs over the past seven weeks later today, the u. S. Labor dem will release key nonfarm payroll report the Unemployment Rate jumped to at least 16 last month. Lets bring in our guest, president of American Research thank you for being with us. We all know todays employment report will be grim to say the least. What is the important metric to be watching . It is going to be a disaster again, unfortunately and not even going to count the gig workers that dont even show up in this data the good news is we could see the new unemployment change decreasing i think that trend is going to continue it is definitely a disaster. Nobody should be excited about it things are going to get a little less bad than it was a couple of weeks, two weeks ago it is Getting Better there is always an obsession with the headline figure what is something viewers should look at . Which piece of data within the employment report is the most apt at the moment . I think the whole thing is just a big abhoration. I would say a glimmer of hope is showing up in stock prices predicting that future businesses are going to be improving. Im looking at the vix, the volatility index weve seen that plunge from 80 to under 30. I think the current unemployment statistics are a big problem one of the big issues i would say is part of the cares act, weve got generous unemployment paying around 6 a week. Workers are getting more money being on unemployment. The cares act was trying to get those people off unemployment, which has been a burden on Unemployment Insurance but now they are being paid to stick on unemployment. There are a lot of forces preventing the market from functioning as it should be. I was reading by that employees were dismayed because they wanted to be seeking benefits where they could be receiving more money from the government than the employer isnt this a challenge many people thought they could get a job if they wanted one are those jobs going to be there especially in Small Businesses in six months time. Right we have people who want to get back to work and businesses who desperately need workers but workers getting paid not to be on the payroll is burdening individual states unemployment. The longer this drags on it worries me it is one thing for businesses to be shut down for two weeks even a month these companies are going to be closed especially Small Businesses for six months there is a lot of these companies that will not be able to make it i think we really need to be thinking about these companies and it is one thing to just say, okay, do this temporarily but we cant have a 10year lockdown or even multiyear lockdown it is worry some to me thank you for weighing in president American Institute of economic research. Thats it for me today have a wonderful weekend im Julianna TatelbaumWorldwide Exchange is coming up next. I know that every single time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. 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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 country bracing for what could be one of the worst monthly jobs report in american history. Stocks look forward and indicate better times ahead up 280 points. The white house looking for more measures to provide relief. The steps the president could take without congressional approval the u. S. Administration and china are talking again on trade. Airbnb facing a backlash as hosts take