Airline heavily criticizing the bailout deal the worlds biggest lighting maker has made a product that can degrade the virus and disinfect indoor areas all the applications we are putting into the markets are safe the good news is that it is also good for covid19. South koreas minister agrees to step down after north korea shows footage of it blowing up on the border a warm welcome from street signs. The stoxx 600 is in the green. There have been a few significant positive developments in the last 24 hours, we had those strong retail numbers come through providing a boost in the u. S. And europe. On the health care front, we had Health Care News the uk major drug trial found that a 60yearold steroid, very common, widely available, cheap drug actually reduces the mortality rate of Covid Patients this is the first drug they have found that reduces death from the vie vus. We have remdesivir but this drug, dexamethasone cuts the death rate. We are eyeing beijing where theyve seen a new set of clusters theyve shut down more parts of the city and schools and now moving all Classes Online for all grades strong retail sales and positive drug news. Lets look at the individual regions. Green across the board the cac 40 leading the way ftse 100 leading the way fairly distributed broad based rally. Lets get a check on the pharma stocks green across the board here, gsk and sanofi and roche above 1 . Thats a look at the european pharma sector. Lets look at lufthansa. Shares are topping the stoxx 600 after share holder criticized the 9 billion bailout deal with the government tla said he has raised his stake in the company to 15 and is pushing to seek in all directions voting against the government which gives the government 20 stake in lufthansa in the general meeting on 25th of june. Shares of trading about 2 higher this morning. Signify unveils an ultraviolet light that can degrade the coronavirus in a matter of seconds. Testing the technology in Boston University and found the exposure to the light kills the virus. Telling cnbc how the product could be used to disinfect indoor areas it is interesting in three seconds, the virus is eradicated we have an exposure of 6 , it is 25 . For the scientists, they need to have these type of statistics to say this is gone that is very good news it is a preventative measure meaning that we are disinfecting the surfaces and the air the eu commissions to offer a preliminary decision between Fiat Chrysler and peugeot. Lets get out to charlotte today, the big day for the european commission. What can we expect to hear. The commission was looking at this megamerger to see that there are areas of the merger in the market share one could be problematic it was expected to have a joint venture to produce most of those together quite complimentary to be seen positively by many others and saving from the focus on europe. The sector was won and identified you have seen the tolerance level for the commission is a 40 stake market share this would be the case for the merged company in france, italy or spain now it is interesting to see what they could do to accept the concessions to have the deal come through the deal asked for the concessions and dont come through. They give their opinion on the measure, when they are not entirely happy, they can open an investigation into this and last about four months. It doesnt mean that they will delay the merger it is expected to close by end of 2020 or early 2021. We know that xo, the main share holder of the order said the rational behind the deal today is stronger than ever behind the crisis and the challenge ahead for the automakers it will be interesting to see whether fca and psa are happy to make concessions and reduce some of the market going ahead. Thank you keeping with the carmakers, new car sales in europe fell 56. 8 in may an improvement from april of nearly 80 as the country has hit the auto sector hard. Spain, portugal and croatia have seen a decline lets bring in the head of the research thank you for being with us this morning. When you talk to people who are bullish in the market, analysts and investors. What are the High Frequency saying about the auto market if you look at the google search, it is definitely household and those willing to buy a new car. If you look at france, italy, there is a clear market for the crisis then thats just a willingness to buy a car when you look at those kind of indicators, then you can see there is always three to four months lag between the first time you start to see for a new car on the internet and the time you buy it meaning that those indicators should only help us to anticipate the car registration in the middle of the summer at best for the offset of european countries. If i could pick out another one of the bull arguments, hearing all of the attention around Public Education and desire to avoid densitiy may lead to an up tick or better performance. Caller this could be the bonus to what we could expect. My view is that the car market is a market within europe mainly driven by replacement needs. A few factors related to covid19 can boost new car purchase for those who dont want to take Public Transportation that would be not enough to offset i mean postponing of buying new cars in most of the other countries. Lets be honest about it, the product isnt necessarily fit for purpose and is too expensive. When i look at the hybrid, they are hardly worth the money something has to give here we need a better product and lower price. Caller yes, the price is very important the average price is about 25 k. This is too important for a lot of households especially when they have the forecast is not good for employment or wages definitely means that the share is something which is the clarity for the renewal of the demand and car registration. It is much more important to boost the willingness to buy cars and incentive them to buy cars one way is the price and the key issue. The amount of inventory for the cars can help the first wave of new registration because they have to get rid of those inventory. That would be only one wave of new registration for the new wave then what is done by the carmakers by resuming the production which could help the launch of the new models to get the attraction for those with money to buy the new cars and those who have the incentives and we have the transitions. Look at london. It is a great study on how not to own a car nobody particularly wants you to drive a car, whatever kind of car it is. Isnt it extraordinary the government wants us to buy the cars but they wont let us drive them caller that is a good question how strong can the demand be when the equation not one of the transportation having none importable car at the same time, a lot of mobility restrictions it is a nightmare for a house hold to decide whether or not to buy a new car. And one of many of the key issues for what we are already seeing as the slow down and decline even before the crisis definitely, the crisis is taking a toll and adding a lot of challenge to the carmakers maxime, thank you for joining us u. S. Retail sales rebounded by 17. 7 in may. Biggest monthly gain ever. Easily topped estimates since the start of the survey since 1967 clothing and retails jumped, Sporting Good and auto saw sharp rises. Jay powell strikes a tone. Echoing last weeks message telling lawmakers a full recovery is by no means assured. We have this report. Fed chair Jerome Powell acknowledging the better data including the block bust ever retail sales report that was a bounce back off of april and better than expected may jobs report but continued to caution the uncertainty and possibility of a second wave and about a long recovery in which every worker will not get the job they lost back. A large number of people will not be able to immediately go back to work at their old job or even old industry. There will be significant groups that left over after we get the employment i do think theyll be hard pressed to find work and theyll need to find support and Unemployment Insurance for a period unwavering commitment to the programs put in place which will grow the Balance Sheet by trillions over the next months and quantitative easing of mortgages and bonds. He encouraged more for states and municipalities and continued assistance for unemployed American Workers there was some concern about the exit strategy. Powell said it would use the strategy they used last time after the great crisis where the fed held the Balance Sheet steady as the economy grew, it held at a percentage of the total economy. It also said that fed was watching in which it launched a pretty aggressive program. I dont see us as wanting to run through the bond market snufing out price signals. We want to be there, if things turn bad in the economy. Overall fed chair powell looking at the uncertainty in the outlook and not really making much of the data weve seen steve liesman, cnbc Business News well discuss the outlook later in the program when we speak with chris campbell. Chief strategist coming up at 10 45 cet. You can follow us on twitter street signs cnbc and directly julianna we have a new word, dexamethasone. Will the use of a steroids that been around 5060 years really lp with the pandemic we discuss next. The Chocolate Factory and you won a golden ticket. All of these are face masks. 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Thats why, when every connection counts. You can count on us. Welcome back to street signs. Lets get in to a pretty Big Development in the Coronavirus Health care front. A widely used steroid dexamethasone has been found to reduce death from coronavirus by as much as a third a look at european Pharma Companies. The British Government has left off results insisting the drug can become a standard. Dexamethasone is really inexpensive and widely available and it works and can work across the world. This is a change of practice it doesnt require complex manufacturing owned by one company that cant produce it in scale. Uk Prime MinisterBoris Johnson has hailed the treatment as a celebration of british science. The drug will be immediately made available across the dhs and around the world lets get to steve its cheap, widely available and it was discovered by british scientists what is not to love by Boris Johnson here indeed, weve been here before one thing youve said, julianna. You said european pharma stocks are moving higher on the back of this breakthrough. I would have thought all the Pharma Companies that would have spent millions and billions and youve got something that would have cost a dollar a day as a potential occur for some people. I would have thought that was maybe a wasted dollar for them lets carry on and move on with this new word, dexamethasone and the Prime Minister is very excited about it if it proves correct, the risk of death of those on ventilator or seriously ill is cut by a third from using this steroid treatment as well. The chief scientific advisor especially as the knowledge increases and perhaps using this drug reduces the infection and maybe used in combination with other drugs, maybe we are on to something. You are right, the Prime Minister is excited about it this drug, dexamethasone can now be made available across the nhs and weve taken steps to ensure we have enough supplies even in the event of a second peak of course, while the chances of dying from covid19 have been greatly reduced by this treatment or significantly reduced by this treatment, they are still far too high so we must redouble our Research Efforts and we certainly will. Today, there is genuine cause to celebrate a remarkable british Scientific Development and the benefits it will bring not just in this country but around the world. The Prime Minister is excited about previous treatments and indeed testing that could act as socalled game changer he always said when we got a good antibody test, this would be a game changer forgetting back to work we have good tests at the moment from abbott and roche. The fact of the matter is that these tests are there now. Perhaps a note of caution on the latest drug news as well in terms of getting britain back to work and other easing we spoke to nigel wilson, ceo of one of the biggest insurance Pension Companies as regards to social distancing that the government is reviewing from two meters to one meter. He was pretty forthright in what he thinks the government can do. I think business can adapt much better on a one meter rule. Most of the countries of the world. Two meters is the outer limit. That seems to be working for lots of countries. That was nigel wilson talking to us earlier this morning julianna, dexamethasone, are we getting can right . I think you are sounds right to me i want to come back to your initial point. It is really important to make clarification to viewers around Health Care Stocks that this development shouldnt really benefit Health Care Stocks there is a potential we could see a Ripple Effect from this development that this drug could be used in combination with other drugs and perhaps not right to make a direct link there. Well leave it there and thank you for coloring this topic for us, steve. The premier League Resumes today behind closed doors. Three months after being halted to coronavirus the matches kick off a packed schedule for englands top flight Football League with 92 games planned for the end of july Bayern Munich crowned german champions with a 10 win thanks to a strike by robert lewandowaski coming up, well hear from hungry financial minister on a unofudt lkrod bgetas. Welcome back to street signs. Im Julianna Tatelbaum european edges into the green. Health care stocks get a boost as the uk announces a drug breakthrough with a common steroid drug found to save the lives of Covid Patients. And racing his stake in the airline and heavily criticizing the bailout deal with the German Government lighting up after the biggest lighting maker has made a product that can degrade coronavirus and help disinfect indoor areas all of the applications we have put on the market now are safe we have known that for 35 years. The good news is that it is also effective for covid19 fed chair warns of significant uncertainty surrounding u. S. Recovery as he testifies before the u. S. Senate but plays down the central bank latest push into the bond market i dont see us wanting to run through the bond market like an elephant doing things and snufing out prices like that we want to be there if things turn bad in the economy. Lets get a check into the european markets gains mounting weve got french and uk leading the charge with the dax nearly 1 higher as well tirning to digest those strong retail sales yesterday out of the United States the dow looking to gain on 325 points on the open nasdaq and s p also poised to a larger start to trade. South koreas minister has resigned north korean state tv broadcast footage of what it says is the office being blown up. Cheri has been following events closely. Clearly an escalation in the last 24 hours. What is the latest caller as you pointed out, the south Korean Unification minister offering to resign. That is the latest in this developing story or latest round of tensions. He stepped in to the job only after the hanoi submit so 14 months after the ministers top job there taking responsibility into the worsening of these korean ties i think this was an important point in terms of lack of clarity at this point when it comes to the interkorean relations on the south korean side also the demolition into the office yesterday, certainly very dramatic and embarrassing set back for south korean president moon jaein and his government and remember the whole peace making effort would have been his biggest legacy for his presidency as well very much harsh rhetoric she is disgusted with president moon jaeins speech and called him shameless for being irresponsible for not making good on any of the promises erasing a lot of the peace efforts. In terms of the reaction coming from washington, this is also interesting. We only saw a very generic line saying that it supports the efforts for relations and two, urged to refrain from other counterproductive actions. We didnt hear from President Trump or anything that goes beyond these generic lines it goes to show how this is about north korea and south korea at this point. The north Korean Office is