Monthly contraction on record as gdp falls more than 20 on april on the countrys first full month of lockdown. A resurgence of cases across the u. S. Fuels fear of a second wave as the imf calculates around the world already spent 10 trillion to fight the pandemic and warns america cannot afford another lockdown we cant shut down the economy again. I think weve learned well create more damage, not just economic damage but there are other areas. Weve talked about this, medical problems and Everything Else the six group seals the deal batching the nearly 3 million take over. Well talk with the ceo at 10 35 cet. Very warm welcome to street signs. Happy friday it has been quite a week for morning ets. We open the day in negative territory extending the losses weve bounced across the flat line into positive territory it has been a volatile choppy session already. The theme is certainly over the last couple of days in the reversal of the cyclical value parts of the market. That trade has been unwinding. We are now essentially flat on the day lets look at the region we have green here but just so so the German Market now off the highs of the morning it is really been oscillation throughout the markets this comes after a very difficult day for wall street. We saw the worst day for equities since march as investors pulled their money out of the risk market and put it into safe havens which is higher demand for the bund. Suggesting not only the Federal Reserve where they pledged to keep rates near zero rising infection rates in some parts of the United States so mounting concerns about the virus itself some concern about the trajectory of the United States outbreak. Second mnuchin made clear that another full lockdown is out of the question for the the United States fairly mixed picture we have autos, media, banks, travel and leisure outperforming. Leading in the position there 1. 9 this rally weve seen was particularly beneficial for autos, banks, oil and gas. Health care underperforming. Telecoms, retail, food and bev, some what of a tilt as to the offensive parts of the market. Taking a look at the u. S. Markets. Weve got the dow trading 3 lower. The s p this week down 6 and the nasdaq down 3. 3 this is really the theme weve seen come together in this reversal of that catch up trade where the cyclical parts of the market became in favor of growth oriented stocks. The tech heavy nasdaq has become more resilient lets take a look at asian markets. Much more muted in the u. S weve got the shanghai composite. Negative territory shenzhen higher on the week. Much more muted moves in asia relative to what we have seen and in other parts of the world. Lets bring in our next guest. Ryan, thanks for being with us it has been an incredible week i can only imagine what it is like as a Market Participant what do we make of the universal trade pulling it out of certain parts of the market and putting it back in growth quality stock. Does that reversal have legs thats an important question. Yesterdays action was a shot across the bow for those investors pricing in a vshape recovery the past couple of weeks, the market has been trading. The reality we face is that covid hasnt gone away we are seeing a worrying up tick of cases in the u. S. We are still dealing with the recent recession in memory the question is where do we go from here . In large part whether the u. S. Can get covid under control. Also in terms of the rotation in the market weve looked at the bottom of the cycle. The first is during a down turn, the free wall we saw in march is all about visibility, stability and balance strength tech, health care tend to do better in that environment once investors get confidence that economies open back up. I would say we are not quite there as we saw yesterday, we get to the rotations valued and small cap. What we are increasingly focused on is implementing those cyclical sectors and the portfolios we want to focus on some longer term trends that have emerged from covid such as the switch from physical consumption to more work from home, et cetera brian, when it comes to the data, bulls for the last couple of weeks have looked to highfrequency data. Things like toll road activity and more of the cyclical market. You think about the trajectories of the market, particularly u. S. And europe how much does that tell us yes, we are seeing a bounce back but that should be expected because weve been in lockdown what about the long term that doesnt give much insight, does it . You are right for us, it is about the pace of recovery ultimately that comes ba being to how quickly can we get people back to jobs that have been laid off during this crisis it was very interesting watching fed chair powell on wednesday. Hes come in with a lot of criticism. Hes done a good job mapping out the type of recovery well see we will see the activity bounce back we are seeing very encouraging signs out of china retail stores, 95 are open again. We dont think we get back to full economic recovery until 2023 the market will take a wrong direction and back to that valuation trade weve discussed. Making a really important trade in china with stores and factories. We are not necessarily seeing this equal bounce back in sales. Weve seen it in europe and the u. S. , Savings Rates rocket for those fortunate to receive an income here. Do we have any visibility on whether those higher savings are going to translate to consumption. If we look at data out of china, yes, its going to be a slow gradual recovery in areas such as autos which are a big ticket items auto sales are up. Actually coming into this down turn with really healthy Balance Sheets we know governments around the world have writ withen checks to households u. S. Household saving rate jumped to an alltime high of 30 . Once people get more confident that economies are opening up and get more security as far as job prospects, well get more pent up demand it is really about the ability to suppress the covid curve like in the u. S on the point in the u. S. For the trajectory of further response there yesterday, secretary mnuchin made very clear, the Trump Administration of shutting down the u. S. Economy again even if we are siege numbers rise, which wir seeing in parts of the United States. How do you price that in, the fact that we may see an up tick in cases the economy is not shutting down how do you work with that . I actually think one of the key drivers to that that they will not go into full lockdown again. I think governments around the world now are much better prepared for the second weave, whether it happens in the summer or later in the year we are likely not to see further shutdown as weve seen in the past more likely to be in the lines of test, trace and isolate that is critical in terms of the economy to open up and for Cost Properties to come back. What does this mean for your recommendations . A lot of the work we do focuses on the cycle and tools and gave us opinion in the year and precovid late in the sickle in the position late in the term dealing with the fall out in february and may, we have a number of strategies implemented across our portfolios such as high quality and Even Health Care thats provided some stability we are discussing about gradually implementing more cyclicality into portfolios. In the next couple of months, we are expect to move to more of a barbell strategy and retain things and gradually begin to position for an economic recovery the market will come out in a long time weve seen it in the hard Economic Data really appreciate your views. President trump has attacked the Federal Reserve for the first time in months and took to twitter to signal his dismay about the grim forecast saying the fed is, quote, wrong so often. He added that the third and fourth quarters were very good and the u. S. Will see one of its best every years in 2021 that is contradicting u. S. General powells outlook saying that certain cities are seeing a second wave of the pandemic we cant shut down the economy again. I think weve learned if we shut down the economy, you create more damage. Not just economic damage but there are other areas. Weve talked about this of medical problems and Everything Else that get put on hold. I think it was very prudent what the president did but i think weve learned a lot. The uk economy has announced it suffered the worst contraction on record. Around 20 lower how are businesses including in the magnificent market well discuss after the break on street signs. Okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back to street signs. Fresh news out of air france youll want to listen up if you are trying to plan your summer holiday. Air france expects to serve close to 150 destinations this summer that is 80 of its usual network. By the end of june, the flight schedule will represent 20 of capacity usually deployed over this period. Priority will be given to strengthening Domestic Networks in paris and the french regions particularly to and from corsica. Increasing to French Overseas departments and territories, europe, spain, greece, italy and portugal notably, the uk is absent from that list. Long haul services with air france will gradually resume on large part of the network for passenger and cargo transport which is particularly buoyant. By the end of june, 20 of capacity usually deployed over this period. So there is some fresh news. British airlines, easy jet and ryanair in a joint statement define the measures as, quote, flawed and would have a devastating effect on the economy. The quarantine rules are expected to come into effect on monday airbus ceo has warned staff they may face more permanent job cuts discussing the decision to end by october could see a more permanent change to the job force the uk government will reportedly introduce a light touch regime to border checks planning a rigorous change to imports and an ease to a call from businesses keerch to minimize disruption due to the pandemic the figure was worse than fraction with the construction sector proving to be the biggest drag we all new the damage was going to be severe now investors are focusing on the reopening, which is why you are standing there this morning i suppose you and i both love anyway this economy is dire straights looking backward weve already heard how the theater industry is really going to struggle to get back on track as well construction down broader economy is down is it going to belonger lasting access talking about other names. In the last 48 hours, weve heard from bp as well weve heard bp cutting 10s of thousands of jobs. Heathrow is looking up potential voluntary. Fighting back as well im delighted to be here im delighted to say, we have darren who is md good morning sir let me say, the market never shut never shut. How tough has it been it has been very difficult. Weve kept the core of our market open and gone back to our ground roots weve got the hospital across the road weve been able to come through but very, very different now 88 down significant drop on the weekend, it builds a little bit many of your viewers know the hustle and hustle and the food here it is more of a place to come and buy your groceries and go home and enjoy i see the signs it is pretty much get the food and get out. It is the public want to do the right thing. We need to help them to do that and keep the space that means keeping two meters apart. That means being outside the market and coming in when it is busy gather your stuff, take it home to enjoy rather than Walking Around we are in the shadow here where it would normally be bustling ps about the tourists as well. Are they coming back we are seeing a gradual building up but we are nowhere near what we expect to see missing those people has changed the nature of the strad. Trade is set up for one thing businesses that were selling off food are now selling fruit and veg. You initially are a charity but you want your store holders to make as much as possible. It is a fantastic part of the community. Government, mayor, council, good and bad . It has been a challenge unprecedented in history everywhere in the world. The government in the main stepped up to the plate. We are a little concerned of the way we come out of lockdown as much as we went into lockdown. The way which we are emerging is a little sudden and jerky. For us to be able to set up and be ready to handle people safely what policy could make the biggest difference for the medium term of this business we need to look at the way to operate the space as we return no whistle will be blown and we suddenly go back to normal we need more support in how we operate. Those restaurants are on their knees. They are not able to trade at all. Really im trying to understand what i eat as well you were born on a beef farm you understand food as well. There are trends happening which are shown here with food that can come into the country, are you worried about brexit the way that brexit has started is a complete miss no,er in some ways, there is an opportunity for the uk to have a sustainable property the variety of food. Of course we are concerned if we dont get the safe guards around quality, well have an unlevel playing field. Also, if it is not clear what people are buying. The quality food will be sitting next to things that isnt the same quality ill put my hand in my pocket where should i go . Go to the fish market unashamedly to every one of our viewers around the city. Come down here, put your hand in your pocket and spend some money. Not only a great grub but a charity. I wish you could stop by and bring us some of that fish thank you for that interview Swiss Exchange group six joins the big league after sealing a deal to buy spanish rival bme. Welcome back to street signs. Im Julianna Tatelbaum, these are your headlines european markets move into the green as u. S. Futures bounce back from the biggest selloff since the middle of march. Launching legal action challenging the uk 14day quarantine rule. The uk suffers the sharpest contraction as gdp falls to 20 in april after the countrys first full month of lockdown the six group seals the deal with Spanish Group after the 3 million take over. Ill speak with the ceo in just a couple of minutes. After starting the day on the back foot in negative territory. Leading the charge higher about 1. 25 . Also gains on the italian and uk market to the tune of more than 4 overall last week, several markets gained more than 10 the selloff we have seen has been a retracement pausing to try and decide we know that they are keen to hold steady around 2022 now eyeing closely in particular to the deep south and west coast. Yesterday, we saw the dollar index gain nearly 1 we saw the demand come through for safe haven now we are seeing a renewed appetite for sterling and the euro trading about 30 basis points higher. We got a little brexit headline to discuss looking at a long awaited talk kicking off on monday. The dollar trading firmer against the yen to the 107 mark. Lets get a look at selloff markets. We saw oil markets plunge. Now looking for a little more paying forward wti around the barrel mark. Looking at wall street we have green across the board there. The dow down they have been bouncing around a little bit well see. It has been a long way to go before the nasdaq open and the nasdaq and s p pointing to a stronger start sounding pessimistic about current levels. Stocks are trading at 30, maybe 35 times a bubble historically extreme markets probably always overshot on the down side and upside if we look at where we are, weve come back down around 8 from the highs but still over 35 from the lows we are in the period where we are trying to find that doesnt mean we cant go lower or higher we are trying to digest what value should be. Euro next has announced teleperformance will enter into the cac 40 as part of the reshuffling. The call center will replace catering giant which shaw shares slide during the pandemic. Saying the company was quick to adapt to the outbreak. Some of our big clients have been touched specifically in the hotel and Airline Business as the businesses goes down some clients on the other hand specifically in the e economy of have seen their activity boosting but what was critical in this crisis for us was agilitiy, which was the ability of our brick and mortar call center. Some deal news that leap frog has jumped after completing the take overof spanish rival blm marks sixs expansion and ends the independent of the madrid that was founded more than 200 years ago. The ceo of six group joins us now. Great to have you on the show. Congratulations on kons mating the deal clearly the industry and the exchange has been under a lot of pressure what is your plan from here are you declining to go down the path are you interested in payments thank you for having me exciting to be in the transaction with such a High Percentage of the bme share holders. Payments is very noble in switzerland. In the areas where we are very strong competing with reuters and bloomberg. On the stock exchange, weve now made a big move to keep the economy bigger and more scale in the eu and switzerland to get better well further build out. We are investing heavily into new Technology Building out the exiting business creating more scale to the customers. Well continue to invest in new technologies and Business Services does that mean you are looking to add more verticals or looking to strengthen payments or Services Businesses with the combination of six now, we have two strong markets in mind that gives us a well position that will be the beach front for the eu expansion from that perspective i think we are sitting quite well which gives all the opportunities also going forward. It will also be the data business, which is a huge opportunity to grow. Next to that, we see more and more are looking for services across payments and across the exchange business. Well continue to look at that thats right. A huge theme youve talked about how youve strengthened your data business and offering very competitive with your peers. How do you expect the lse deal when it comes to these more integrated businesses . I think i understand the strategy of lse to be honest we even have the payments business also with our portfolio. I see that as a good move for them we already have that good move investing and trying to get more data, alternative data and other sources into our portfolio into a smarter rate for our Customers Using cloud and api and these sort of things to build out our analytics and abilities in the other data set directly in sight for our customers. That data business is something which i think is a huge opportunity combined with the exchange and the payments business to drive our business forward. We are very excited about investing and building it out also if i could shift gears and talk about the impact that covid19 had on the industry clearly from the market volatility perspective this could offer the boost from exchanges. We heard from Credit Suisse ceo talking about the capital up tick, which could be a tail wind for business like yours. If you could weigh in on that, that would be great. Do you see covid19 leading to any structural changes within your industry . I think covid19 will create some structural changes to the way people live their lives it might also make some changes to the financial industry the impact will be less big. Well see tremendous vow volume and continue to see good volume on the markets there will be interest and the first ipo of the season in the first today. That season is now starting. There will be more ipos following this year. From that perspective, ive seen the landscape. Companies are struggling to be profitable and to deliver on their tark egets that might impt air prices and the future that will also impact the Financial Markets of course. Short to medium term economy and to survive the difficult period back up and running in certain parts of the economy lastly around this deal with bme, what more detail could there be around synergies and what you are going to do with those savings . Of course we will look also to savings and wherever the duplication and service platform, well look into that the real gains of this deal is to reinvest those savings and earnings into products and services we are looking at products and services that bme had on the six side really across services and across the two markets bringing in the data business into the spanish geography and look at the Global Landscape to further build tha that out it is really a growth story. Combining the two forces and looking to building out our business jos, we appreciate you being with us. As a reminder, you can follow us on twitter coming up on the show, pressure mounts on corporations to take tank ill action in the wake of the protests of racial inequality okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. U. S. President trump says hes finalizing executive order in the face of nationwide protest after the death of george floyd the president wants to invest in police and promised a directive that would upgrade policing standards. We are doing it with compassion because we are saving lives and businesses, saving families from being wiped out after working hard for 20 and 30 years. Meanwhile, the majority of americans support sweeping reforms after the opinion poll found that 82 want to ban choke holds, 82 are in favor of getting rid of racial profiling and 92 want to require police to wear body cameras 14 million a day is what it costs the deployment of National Guard costs the taxpayer strongly backed by President Trump in response to the response the oneweek deployment cost about 14. 5 million. Getting to some of the corporate response in america. Snap ceo has defended the companys decision to restrict President Trumps account telling cnbc that it is within the companys First Amendment rights after snap announced last week it would no longer promote the president s content within the president s discovery feature. Weve had the types of platform where we choose the content. We are within our right to decide what shows up on there. In terms of our business and community, we are impressing values in things we promote on snap chat. It is easy and straight forward decision to promote our values and types of content we think important for our community to see. Microsoft will not sell its facial Recognition Software to police it doesnt currently and microsoft president brad smith said it wont until a national law is in place that, quote, grounded in human rights and governs its use and added it is not just up to Tech Companies to act calling on congress to take action as well apple ceo tim cook said hell spend 100 million on a new initially dedicated to Racial Injustice focused on criminal justice reform. To watch and learn more, head to cnbc. Com apple is one of many u. S. Firms taking action following the global black lives matter protest. Alphabet has started the 100 million fund to create voices of black creators similarly, bank of america and ibm has announced it will no longer sell facial Recognition Technology to police lets bring in our guest who will talk more about diversity in the work place. Worldwide head of culture and inclusion. Thank you for joining us from bristol. Just not far from where we are in the london studio reflective of how widely the black lives matter protests have spread i want to pick up on something around demographics and how shifts are calling for us to have inequality and racism at the heart of Corporate Culture what do you mean by that so hello, everyone. What i mean is, in the uk, the mixed race is the Fastest Growing race in this country with that in mind, i think there needs to be racial visibility of all types of demographics that demonstrate all people within corporations we need to shift as our an organization is only a microcosm for society, right we need to be mirroring the different shifts throughout our society in business. Its karen here, just jumping in in the last few months, you were frustrated by the face of change what we now see on the back of the killing of george floyd is corporate coming up with strong external messages. When they havent been, theyve been more condemned. Total memos issued about change. Do you think this time it is different . I think it this time will be different. As we know, i think the landscape we are in with the paean has given people the bandwidth to engage with what they werent engaged with before a lot of people are reprioritizing prior to the american elections in november, we will see protests until then. This is going to be front and center in peoples minds for kite some time can i ask you about what managers need to do at this stage. Many find themselves in a terrible stage looking at what they need to do across organization to bring a change in culture what do you suggest at this point . I would suggest this needs to be a listening exercise for businesses asking an external Corporate Responsibility for your people first, corporates need to be working internally what is their culture like are they listening to all the different voices do they have determination of black and brown people at leadership level the place of putting their hand up to air a grievance isnt going to cost them their job it takes a huge amount of compassion Corporation Corporations people need to realize for many people that are marginalized to see someone that literally could be your relative be killed, murdered in front of you felt personal. For me, i felt like i had seen one of my relatives be killed. It was awful a huge amount of compassion compassion leave needs to be granted to your black staff. Thats where it starts humanizing the work place. There is an absence of humanity. Right in that case, if you use the word personal. How personal does the campaign get. Nike did it with Colin Kaepernick and adidas, how personal do Companies Need to get . Thats what they are calling upon our history has there havent been full truths im jumping slightly if i were to talk about what is going on in bristol with colston, the statue that was taken down of the former slave trader there is a real divide in ways and parts. Actually, most people dont know the wests colonial history where in the u. S. , the brutality of it was on their doorsteps well have to leave it there. We have plenty more conversation on this topic. Worldwide head of culture and inclusion. Well leave you with a look at futures and a bounce of nearly 600 points thats it for todays show im Julianna TatelbaumWorldwide Exchange is up next. 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. Breaking news, Global Markets hammered after wall street saw its single worse session since midmarch the dow plunging nearly 1,800 points in one day. Investors on edge in up ticks of positive coronavirus cases and hospitalizations in many states pushing to reopen their doors for business the white house says the economy will not go into lockdown again. Amid the turmoil, one Company Testing the waters in what could be the largest ipo of the year