Us over time significantly closer to what i have called the pre covid inflation path while allowing us to monitor how some Key Developments unfold. Taking off british carriers hitting the top of the stoxx 600 as signs point to a recovery in the industry. Oil prices rising on the news opec and allies will meet tomorrow in a signal there may be consensus onextending outpu cuts a warm welcome. We are waking up a day after the ecb meeting. Lets look at some of the Market Reaction to the meeting. The euro has climbed to a threemonth high while italian bond yield on the back of the decision to ramp up the stimulus plan the euro trading about 11 basis points higher to 11347. The ecb will double its Bond Purchasing Program to 1. 25 trillion euros the ecb president Christine Lagarde ses they still face a contraction of 7 this year. They dont expect inflation to rise leaving it far below the 2 target she said she hoped the boosted bond buying will steer inflation back to pre covid levels collectively determine that the 600 billion should bring us over time significantly close tore what i have called the pre covid inflation path while allowing us to monitor how some key impact our policy. So we will understand a little better how the economy rebounds in the Third Quarter and then later on in the course of the coming months. To have a bit more clarity it is all systems go in equity markets in europe seeing very strong gains across the board hire the ftse mib up 3. 3 spanish stocks rally leaving the overall stock market higher. The dax up about 4. 4 and trading about 1. 4 higher as well this is all interesting because yesterday, in the immediate reaction, we saw the stoxx 600 end the day lower. It was a very choppy session we were trading lower in the lead we rally after the announcement and we saw stocks bounce around throughout and banks in particular going between the day ending flat. Banks rally. We are looking at gains of nearly 7 . Deutsche bank off 3. 5 soft again up 6. 7, a very, very strong positive reaction to the ecb move yesterday alongside the rally we are seeing in the euro investors clearly sending the signal that it is risk on. Discussion suggesting the next market will be the health situation. Continuing to see stabilization. Investors on the Global Economy monitoring things closely. We are looking at the auto sector yesterday, autos were the key underperformer this morning, weve got daimler shares recovering. Part of the weight was the german stimulus package which failed to buy for the conventional car buying. They tried to use the stimulus package to steer the economy into transition. We are seeing green across the board in their basket to ferrari down 6 basis points. Lets look at airlines, the recovery story baring the brunt of the selloff we saw in the wake of the pandemic air france, klm up 12 iag shares up 12 . Well go into the driver behind those as well as the broader demand easy jet up 8. 8 those on the back of very strong moves in the u. S American Airlines surging 40 after the company said they are seeing a big boost in u. S. Flights next month still that stock around 45 since midfebruary important to put these moves into context the Airlines Sector has plunged. Lets look at iag in a little more detail. Al alex cruise saying the company, quote, does not have an absolute right to exist he warned that the Parent Company iag is burning 178 Million Pounds of cash researches a week. They plan to cut its work force despite the uk government furl owe scheme reacting well this morning up 12 . Shares in lufthansa up this morning despite the airline having been relevant gated from germanys blue chip dax index for the First Time Ever compounding the particularly turbulent first half of the year the exit comes after the coronavirus outbreak prompted a near total stop to global air travel, prompting shares to drop and forcing berlin to hand a 9 billion bailout. Looking at the spot in the dax will be taken over making it the second group to enter the index. Some housing could pile the pressure on rental and property prices in germany. Lets get out to annette youve been all over this lufthansa story. No surprise the stock has fallen out of the dax what do you think of the significant of the change . We have another Real Estate Company entering the blue chip sector just as the Airline Falls out. Exactly it was widely expected that lufthansa would fall out of the dax because of the sheer hiez and market value lufthansas market value has more or less deteriorated completely because of the coronavirus and stands roughly shy of 5 billion euro. That is far too less to stay in the dax. We normally get a reshot in september. Because of the construction, it reacted so swiftly and replaced lufthansa by june 22 Deutsche Wohnen is 22 years old but since its creation has grown into one of the biggest real estate companies, residential companies in germany last year in discussion about the rental capital was a discussion for some time because of the rental increases especially in berlin has taken a toll on the company last year. They were one of the candidates to move into the dax now second time lucky they made it into the dax with a market value of roughly 14 billion euro in berlin, you have that cap now in place since february, which means they cant increase their rents for another five years the scrutiny now is on Deutsche Wohnen more. Thats what Housing Associations are now saying most likely International Investors want to have higher dividends to push harder for rent increases. If you are a dax member, you are more investable for loads of investors. At the same time, talking about lufthansa. Thats not possible if you look at the fallen angels it is not too bad. Rallying by others as well lufthansa has fallen so much, there is room for recovery now as the airline is saying for example, they are going to increase their capacity to september by 90 in the short to medium haul and 70 in the long haul they seem to be confident there is going to be a pick up in travel again after the summer break. Back to you. A really interesting point about the progress theyve had after falling out of the dax easy jet being one of the names that fell out. Just as these come through, we are seeing a very strong bid for the airlines annette, thank you so much. German Industrial Orders slumped more than expected in april. Thats the biggest contraction on record as the pandemic and lockdown weighed heavily on goods from europes largest economy. Expecting the German Economy to contract saying it wont see a full recovery until 2022 at the earliest speaking speaking to cnbc, saying he agreed with the forecast adding that europe is facing a recession the likes of which he has never seen caller these are numbers we have never seen before in germany and in europe. We have seen really extreme numbers but there will be recovery and we hope to be back in spring 2022 still ahead on street signs, crude prices rise as they set a debt for a meeting on more output cuts more when we come back 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. Jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. 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. Welcome back to street signs. Oil prices are trading higher on the news that opec and allies are set to meet tomorrow to discuss extending output cuts. Saudi arabia and russia have agreed to the deal by one month. Compliance remains a sticking point. Taking a look at the oil majors, we are seeing a strong rebound taking hold across markets oil and gas a big part of that bp shares a big part of that shell up, the entire Energy Complex there is trading very firmly lets get out to steve who is going to join us now. Great to see you again what do you make of this news . We finally have a date now on this opec plus meeting the agreement looks like one month of extension getting agreements of two months up to the year compliance is the key concern that will prevent the deal from being extended much further. It is not all or nothing. There is already a deal to have 7. 7 Million Barrels off the table the rest of the year. That is apparently in the bag. This is the difference between 9. 7 and 7. 7. It is not 9. 7 or not it is 9. 7 or 7. 7 the other point is, looking at what Alexander Novak has been saying everyone who comes on cnbc has a position people say we are going to the moon, it means they are long in the market Alexander Novak whose prime resource is oil says he thinks there could be more demand than supply as early as next month. Again, he speaks from his own con tight one si if hes right, baring in mind more people than on this planet. That would be an extraordinary turn around. From the start of the year, we were producing 100 billion barrels a day being consumed way in ex tess of the 75 to 80 Million Barrels. If hes saying as quickly as in the space of a couple of months, weve reached some form of balance, to me, that is way more interesting and exciting for those looking at the market, the swift turn around for opec, opec plus, shell predeucers a lot of ceos from the likes itself from the likes of bp and others respectively talking about how they are taking production off the table. That makes it more delicious especially for those hedge funds that have gone way too far in this delicate stage not only from compliance from this last time around and perhaps more justification, we are worried about iraq they are the second biggest player the compliance issue is getting headlines. If the mark is rebalancing as early as this month, that doesnt take away the large inventories. The vast, vast inventories in terms of the crushing. Thats what the grouping really looks at the huge inventories they dont like it i think it makes the whole lower price ee kwaks more delicious. Back to you. Thats the first time ive heard the whole thing called delicious. Thank you for your report. Nissan ceo has told cnbc he is aiming for Sustainable Growth despite uncertainty around the pandemic i sat down with him for a wideranging conversation and asked him to give an outlook about the company and the alliance with renault. We want to become a sustainable profit we must address an area of underperformance and pull back from the previous over extension that has been done in nissan this means, weneed to optimize production also, the operation efficiency it also means that we are going to priorities ourself which market we can be able to grow. This is the building around the product and technology where nissan can be really successful. Taking our market focus, we are prioritizing further Sustainable Growth meaning on japan, china and u. S. Part of your strategy is around the new strategy of the alliance, focusing now on this leader, follower model which means nissan will defect from europe and renault from asia how do you assure the alliance will develop and grow under this new model. The alliance could be a competitive tool for each company, which means that the contribution should make each company in terms of the revenue and profit we look back in what is still the working on the leading force. We came to the conclusion together the chairman of the alliance and my partner in renault and mitsubishi and myself especially on the engineering confidence each company has and the model each company can lead for nissan, if i take one example like in europe, we want to maintain or sustain ourselves. How we maintain is what we have to decide. We would make our capacity first and will be satisfied with our customer then in the area where i can get benefit from the support from the alliance especially from renault in europe. So this is how we are working. What if it doesnt go exactly how you hope it does some call this the last roll of the dice with your partners. What if this doesnt go smoothly, where does that leave nissan the alliance should be a competitiveness asset for each company. We can use those to make each company grow is a key point. We have a very close communication. We put everything on the table very transparently let me remind that alliance mindset is that we should have transparency on everything together and how we can make sure respect and trust each other. If we cannot trust those, how can we bring each business for the benefit of each company. I am confident on the way we further tore grow. Particularly with a lot of the discussion we may for see, in the end, we could overcome and that could be the benefit for each company i really like to be buying the alliance is not like the stag nant play for more, head to our website. Dont miss the rest of my conversation can you see the full interview next wednesday at 23 00 cet. Bringing in angus once again. I spoke yesterday to the nissan ceo about covid is impacting the auto market. He raised the point that in some ways, it is going to accelerate some of the disruptive trends already under way in the auto space. So the shift to electric vehicles for example and more automation for cars. What do you think in terms of the broad recovery what are we looking at in perhaps the better than expected scenario given the changes to Consumer Behavior and preferences as a result of covid19 good morning. Very, very interest questions there. Very valid this has been evolving very rapidly. First, we are seeing a lot of stimulus coming through the governments secondly, we are seeing a shift in Consumer Preferences clearly, this is reaction to take public transport and could lead to higher usage in cars and the data coming through. What is interesting is the speed of recovery in the markets as expected youve seen a very, very rapid rebound in loans and car purchasing you mention the government stimulus we have the german stimulus package coming through 48 hours ago. Announcing 48 billion euros. Is this an opportunity for europe to become a leader in the green transition in autos. How significant are these green packages it is interesting it is far more nuanced than headlines would suggest. If you look at the german package, it is cheaper if you go to buy the ev i think you can see the forces played there that will affect the german come bust yan engines you have the fiscally conservative on the other. 20 of gdp that is pushing for stimulus to come through there there is a long way to go. We do need investment coming through. That is always a tough competitor angus, lets be honest about it 2017, 2018, when you and i would look and see 68 Million Units sold in the gory years what hope is it for any of our viewers to make any money in the current stocks Going Forward incentives will be left. The cost is through the roof if they cant make money in 2017, 2018, what hope is there now . Steve, i was thinking of you the other day and your point on the listing here the Government Support is keeping this dynamic alive we have an incredibly deep recession, youve got all of these collapsing and pressures pointing out in terms of loans and stimulus, doesnt mean the bad business would fight to stay alive. If the stronger players could be allowed to survive we would see rationalization in the market it doesnt look like it will happen in the short term but we will continue to see prices and that will continue to squeeze the weak players we do see strong players generating cash flow the valuations on these stocks are very, very cheap as you are seeing on this rally at the moment bringing up the point about weak players possibly going through this this is a big theme across the markets. Well have to leave the conversation thank you for joining us in this conversation about citi. Coming up on the show, the race for the vaccine intensifies. Well speak to the Chatham House chair next the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines the rally is on. France and spain lead european stocks higher on the back of more ecb stimulus help