ave known her as a friend. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] ♪ welcome to "street signs," everyone we're live in london and the shores of the adriatic in bari these are your headlines european equity markets opened to the downside after the fed revised its rate cut projections to just one this year and chair powell warns the fight against inflation is not over. >> the economic outlook is uncertain. we do not expect it able to

reduce rates until we find that inflation is moving towards 2%. the eu threatens tariffs of up to 38% on chinese evs as the bloc commission tells cnbc it deserves a level playing field. >> what they want to ensure is that this investigation is a fair competition, that chinese companies are not gaining a competitive advantage through subs days. tesla shares drive higher pre-market amid a key shareholder vote which could see it award a $56 billion pay package to the ceo elon musk. and g7 leaders touched down here in bari, italy looking to sign off on a deal to increase funding for ukraine's war efforts using frozen russian assets ♪

welcome back to the show, everyone what an interesting session it was on thursday. we got a cpi print out of the united states showing, you know, quite a bit of positive sentiment there, that inflation was healing stateside. markets seemed to have enjoyed that then we heard from the fed saying that basically changing their projections in terms of rate cuts for this year, now saying it's likely that we're only going to see one rate cut we'll try to digest what these two events mean for the markets, perhaps which one really is more important at this stage. with that context in mind i want to take you to how european equities are trading at this stage. we have the stock 600 trading marginally lower by .4 of a percent, quite different than what we had seen on wednesday's session, the stock 600 gaining about 1% and actually breaking a

three-day losing streak. looking at the major indices, the footsie 100 down by.02%. some of the downside, the moves here, actually related to what's happening in the housing market. we heard from crest and nicholson. their shares are tumbling after the house building issued a profit warning we're still keeping a close eye on what's happening in france, down by almost .5% let's see what impact on the market after the snap parliamentary election over in spain also an important one this morning the market is down by about .3 of a percent earlier this morning, we got confirmation in terms of harmonized cpi prints. just to give you an idea the 12-month inhalation rose to 3.8% in may from 3.4% in april, and actually these numbers are very much in line with what the ecb had been guiding

you know inflation is easing in the euro zone. however, this last mile really of their journey is likely to be bumpy, and this data is proof of that looking at the sectors at this stage, there's also some interesting dynamics there actually i want to refer to what's happening in the outer market at this stage they are the worst performing sector, down by 1.6%. it is very interesting what's happening here in the wake of the eu's announcement of new tariffs on chinese evs we are seeing more pressure this morning on europe altos compared to chinese names travel and leisure, down .8 of a percent. some of the dynamics there this morning are related to some changes in the opinions of analysts for instance, we are monitoring chairs of had lufthansa. they have been moving lower after jpmorgan cult the pric

target for the stock, and that is just broadly continuing some of the negative sentiment in this part of the market. looking at the u.s. close, as i was mentioning to you earlier, it was a very interesting session given the cpi and given the fed decision we saw some very interesting moves. when it came to the s&p we have it in the middle of our screen, and the s&p saw basically closing the session above the 5400 mark for the first time the s&p and naz-both of them, they hit fresh record highs on the session. let's see what's upcoming data later on today that we'll have in store for wall street with that in mind let me show you how u.s. futures are trading at this stage. when you think about today's session, we'll get a second chance really for -- in terms of inflation reading. we're going to get to the ppi print. at this stage it seems like it will be a mixed start to the trading session on wall street let's see what sort of earnings

implications there will be as well as data, but i want to get back to the fed. once again, they held their benchmark rates steady in the target rage of 5.25 to 5.5% as it was widely expected, but then the market's attention was elsewhere. in its latest rate forecast and economic projections, the latest projections point to just a single rate cut by the year's end, a significant dialing back from march's forecast when you had pencilled in three cuts. that's right we went from three to one. but the fed raised projections for 2025 now anticipating four rate cuts. speaking to reporters following the fomc decision, the chair jerome powell said the fed had made substantial progress tamping down inflation, but price pressures remain too high to justify really a rate cut for now. >> our economy has made considerable progress towards

both goals over the past two years. the labor market has come into better balance with continued strong job gains and a low unemployment rate. inflation has eased substantially from a peak of 7% to 2.7%, but it's still too high. >> now next to that, the fed released its latest economic projections, and you have the latest figures nudged up its forecast for pc and core pc inflation by 20 basis points each to 2.6 and 2.8% respectively suggesting sticky inflation so the rate is not expected to hit that 2% target now until 2026, so we have a long time to wait there alongside all we got out of the fed, we also got may cpi print it helped to flatten on the month and increased 3.3% compared to a year ago, both slightly below expectations. that was thanks to falling

prices and only fractional rise in food coasts the core figure rose by 0.2% on the month and 1.4% on the year, also lower than expected i'm pleased to say that daniel mccormack head of maguire asset management is joining us now first and foremost, i want you to compare these two events. we got cpi we got to this fed decision. ultimately which one would you think was the market event for yesterday's session? >> thanks. great to be with you though very important, the cpi that came out early in the day showed -- it was a very benign number the headline number was weak, the core number was weak and core services, ex-housing was soft, and the market reacted to that the u.s. dollar fell rate expectations dropped away, but then later the fomc meeting some of that was unwound, and

not all of it but some of it so the cpi report was more important in that respect, but i think what chair powell made clear in the press conference was that the cpi report was very welcome. it was what they want to see, but they need to see more of that to be convinced that inflation is heading sustainably back to 2%, and, therefore, the fed can potentially cut rates. >> actually in your recent notes, you're suggesting that there is a real risk that inflation is higher in the coming months. just outline for us why you think that's the case and how much harder is the task for the fed then. >> essentially -- yes. essentially we think goods inflation globally is potentially coming back a bit, so if we rewind to last year, the big cause of the disinflation in the u.s. was goods inflation which was very, very soft. there was, in fact, deflation in the goods space, but this year that has turned around, and we've seen it in other areas as

well we've seen it in the uk. we've seen it in the euro zone that goods inflation is coming back, and it's coming back because the global manufacturing cycle is picking up demands for goods, picking up and tightening the demand for supply balance, and we're moving from deflation in the goods space to a little bit of inflation, so in the u.s. what we think that adds up to over the course of this year, services inflation should continue to moderate as the labor market softens up further and wages growth moderates, but that will only happen slowly we think that that will be more than offset by rising goods inflation, so the goods inflation number in the may report was actually very soft, very welcome, but we think that that was heavily influenced by energy prices and to a degree a one-off and over the rest of this year we think that the risk is the rising goods inflation trumps the falling services inflation and the monthly numbers just remain too high for the fed. >> jerome powell said it was as close call really between two and one rate cut this year ultimately, if we do see one or

even two, does it make a huge difference given that perhaps we're talking at maximum a 50 basis points cut >> it's important to point out here that no one has a crystal ball no one knows how the data is going town fold, and chair powell was very open about this in the press conference. he talked about the fomc focusing on the totality of the data so, although that is what is in the doc plots and the fomc projections and where they will end up at the end of the year nobody really knows. the answer to your question, does 25 basis points or 50 basis points make a huge difference to the u.s. economy probably not sort of in a literal sense, so will it be that consumers will go out and spend more because interest rates have dropped by 25 basis points the effect is probably marginal. where it potentially has an impact is as as signal, right, as a signal for markets and for economic agents that we're on a

path to less restrictive monetary policy and lower interest rates that signaling effect could buoy confidence and have an impact through that channel. >> give us your thoughts on the communication style from the fed. are they getting things right because they also said yesterday the next review starting this year, they were going to be assessing the fed's communication strategy this has also been a topic here filt because forecasting is very difficult. as i mentioned before, no one really knows where the economic data is going to go, particularly beyond a time horizon of three to six months, so that's what makes it all very complicated. i think the best thing that a central bank can do is be as trans parent as it possibly can about its thinking, explain its reaction function, and it

now with where we were sort of 20 or 25 years ago, where central bank is -- we're quite secretive about their process, qug a pretty good job at trying to communicate where the fed is going and how it's thinking. >> i would also like to get your thoughts on the potential impact of the u.s. election here because i was reading from notes from nothingan stanley suggesting that if joe biden returns as president of the white house, this would be good news for bonds on the other hand, if trump were to win, that would be better for economic growth. just explain to us what sort of implication does a potential re-election mean for monetary poll i. >> so i think one of the big things that has supported the u.s. economy lastyear and this year has been the looseness of fiscal policy, and we think that

broadly speaking under either candidate that continues so that important pillar of support for economic growth for the u.s. kind of remains in place whoever wins probably, of course, president trump is more hawkish when it comes to tariffs and has promised a 10% across the board tariff, 60% tariff on china, and that would have a sort of onoff one-year impact on inflation which may keep the fed a little more hawkish than otherwise as they want to watch and make sure that there were no second round effects from that impact on the inflation numbers, but, again, it would be temporary and only last a year. >> all right a very eventful year ahead thanks very much for your time, the head of research at maguire asset management. now our colleagues stateside will be discussing all the latest economic developments out of the u.s. with the treasury

secretary janet yellen don't miss that interview at 13:30 cet, and coming up on the show the eu slaps further tariffs on chinese ev imports citing unfair competition. we'll have all the reaction after this break

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♪ welcome back to "street signs. let's look at some of the corporate stories we're monitoring this morning. atos shares are having a rough year after the french i.t. company says it will restructuring a restructuring proposal by 1% putt forward by a chinese billionaire. one proposal was provided with enough liquidity to stay in the birks but the deal will result in a major dilution of existing shareholders speaking to cnbc an exclusive interview, the ceo paul soler said the company is focused on creating long-term value. >> obviously it's really a painful decision in a sense

because of the amount of dilutions for the shareholders we're just really focusing more on making sure that this new proposal can be put in place to make sure that the company is on better financial footing for the long run >> elsewhere, wise has beaten analyst expectations, posting a nearly 230% rise in a full year reported profit. the transfer money company said it expected an annual income growth up to 20% this year, well down on last year. and mexican billionaire carlos slim has taken a 3% stake in uk telecom firm bt worth nearly 400 million pounds. a spokesperson for slim described it as a financial investor bt says it welcomed the investors who see long-term value in its business. and moody's listed telecom

italia's cred rating one notch to ba3 maintaining a positive outlook. the upgrade comes after its first sale of its fixed line network to kkr was approved by the eu's antitrust authority the sail, which could be worth up to 22 billion euros, offers a key part of italia's debt restructuring strategy and shift to a retail focus. now also i want to show you how we're trading in terms of european outdoor shares uncertain interesting sector in the wake of the eu's announcement of new tariffs on chinese evs. as you can see on your screen, we are seeing quite a lot of downside momentum for some of the european alto names. just to highlight volkswagen, down by almost 3% and stellantis down to 2.7% and bmw also down by about 2%, and then compare that, compare that picture with the chinese ev-makers.

we are seeing shares, for instance, in byd they were up by more than 4% er in up by almost 2% and same for alto it goes to show at this stage the chinese ev names are to some extent really not paying too much attention to this announcement from the european commission however, investors seem to be concerned about the impact of this policy on european names, and we have heard from some of the european names in the wake of this announcement saying that, you know, this is not good news this is impacting open trade, and it could actually have implications in the -- for some of these european alto makers. let's see what happens and get more details from what we heard from the european commission because yesterday they said they were going ahead with preliminary tariffs on imports of electric battery vehicles from china this is after an investigation

found they benefitted from quote, unquote, fair and unfair subsidies posing what it described as a threat of economic injury to ev producers in europe. now, the european commissioner executive vice president told me that the group is not taking arbitrary decisions. >> what we want to ensure in this investigation is fair competitions, that chinese companies are not gaining competitive advantage through injurious subsidies. the united states recently decided to impose a 100% tariff on chinese battery electrical vehicles we are on one hand basing our proposals on specific level of subsidies identified, and second, as i said, we're also open for continued engagement with chinese authorities and

stakeholders to find acceptable way forward. >> so stressing it's a different approach from what we heard from the united states. i'm pleased to say richard windsor, founder of radio-free mobile, a research company, is joining me to discuss this in more detail. good morning, richard. >> good morning. >> first and foremost, what do you make of the potential impact from this announcement from the eu on an european alto names i was mentioned they were moving significantly lower this morning. outliest line just a are the implications for the european alto sector? >> there's two there the first one is that the ev playing field will become more level, ie, the price to the consumer of a chinese electrical vehicle will go up which means that, you know, the difference that -- the difference in price between the two will be less now the net impact of that could very well be is adoption of evs

slows even further, you've now got to the stage where it really needs to be the mass market, and the mass market occurs not so much in the luxury sense but more in the mid-tier the reason why and i think the european oems r suffering because there's obvious fear of reprisal in china. china is the world's biggest auto market, and an observe move to make by the chinese would be a retaliatory strike, increase import tariffs of european vehicles into china which could then very much further hurt their prospects in the local market, and i suspect that's why you're seeing some of a counterintuitive reaction. >> i would like to think about the european consumer for a moment now thinking of it and whether it's deciding to buy a chinese ev car or a european brand. ultmath mat lire which one will be offering the best prices,

despite the announcement of these tariffs? >> it will still be the chinese vehicles that offer the best prices even if, you know, you're going to see the tariff on someone like saic now be close to 50, they likely are still going to be the best -- the best prices, but the overall impact i think is not going to be so much that you see a market share necessarily shift from the chinese to the europeans, but i think what it might be is just to slow the overall adoption of ev it makes of owning an electrical vehicle more expensive than it already is things getting more expensive is a bit of a problem, particularly in europe right now so i think, you know, maybe one of the reasons why the european carmakers are rallying is because they will sell more petro vehicles which is what they are good at. >> interesting there's indications that it's in the both sides really on the

chinese and european to come up with an agreement in the coming months and mitigate the impact of some of these tariffs how likely do you think that is? >> given the geopolitical environment, i think that's probably quite unlikely. we've seen, you know, if you look at the u.s. and china, they barely talk anymore, and europe has shifted somewhat away from its more mercantile approach to china to be slightly more nationalistic, so i would -- i would guess it's unlikely, but you never know you can't really pull that out. >> i see radio commentary and i quote, against this backdrop the shake-up is far from over, and there's more blood to be let meaning that i would stay away for now. just explain to us why are you so pessimistic really about this outlook? >> well, the problem is at the moment there are far more electrical carmakers than the market can support we'll give you an exam

first of all, there are about 26 large established wms more than 100 electrical vehicle manufacturers in china alone, and if you look at some of the problems that the startups are having like rivian, like fiska, the problem with make cars it's extremely capitalist intensive, and these companies all need to raise billions more in startups and many other ev startups are the same and there isn't enough capital available. what i expect is -- because there's too many carmakers you'll see continued consol dog. i would expect fiska to be acquired and i wouldn't be surprised to see rivian acquired rivian is one that will survive on its own. >> just briefly, rings pecting more subsidies in this space is the next strategy from the europeans really to also announce subsidies for the alto sector when you think about what the u.s. did, what china is doing? is this the answer >> i don't think so to be

honest you know, the problem -- the problem -- the problem with the subsidies, you know, a lot of these care-makers are fairly inefficient. they need to become more efficient, and if you add further subsidies to them, what you're real doing is you're saying it's okay to be inefficient, so i think the right way to go would be not to offer more subsidies to the automotive sector, to put them under pressure to become more competitive and better compete with the vehicles coming from china. >> thanks so much for joining us said that was richard windsor, founder of radio free mobile. let's look at tesla. their shares are trading higher pre-market after elon musk took to tweet to say his pay package is passing the shareholder votebury a wide margin shareholders are voting for the secretary time on his reimbursement package which could come in as high as $55.1 billion. the vote is set to conclude on thursday meantime let's get out to steve

who is joining us now from bari. >> thanks, silvia. after the break we'll look at what the g7 meeting can be and what the tangibles can be from the george maloney presidency including whether the g7 can make real progress on the use of frozen russian assets and indeed the interest from them and perhaps create a loan deal there's a lot of negotiations going on on the technicalities, and we'll discuss after the break on "street signs."

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welcome to "street signs." we are live from london and the shores of the adriatic i'm silvia amara with steve cedric and here are your head lyons. european equity markets open to the downside after the fed revises its rate cut projections to just one this year, and chair powell warns the fight against inflation is not over. >> the economic outlook is uncertain. we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is

moving sustainably towards 2%. >> the eu threatens tariffs of up to 38% on chinese evs as the bloc commissioner tells cnbc it deserves a level playing field. >> what we want to ensure is this investigation is a fair competition, that chinese companies are not gaining competitive advantage through injurious subsization. >> shares drive higher pre-market as elon musk claims victory in a vote which could see the company award him a $56 billion pay package. an on the g7 here in bari, the u.s. and its gp allies look to finalize a deal to potentially use frozen russian assets to provide a better source of income for ukraine we'll discuss on "street signs." ♪ let's look at france because

this is one of the stories this week the french president emmark ron defended his decision to call for a snap election which has sent ripples through the financial markets. in his address, mark ron urged political rivals to help him fight what he described a, quote, extremist fever spreading through france he also appealed to voters saying he trusted them to see the difference between expressing anger and building a serious project. share lot reed joins us with more shore lot, everyone was taken by surprise in brussels when mark ron announced this. >> and in paris and in france, everyone. >> ultimately is this bet likely to pay off >> it's very much out there. it's looking difficult the election is just around the corner it's such a quick turnaround there and mark ron is making the case yesterday in the big lock press conference talking about how he's taking responsibility for calling this elects and

calling other parties to have the republic wake up and fight the far right and we know his case is difficult. we know the populist vote has been growing everywhere in the world and in europe and not an exception in france, but the political implosion that's happened over the past few years with traditional parties collapsing, the socialists and the center right has created the natural opposition, the one party there from the beginning against president mark ron so it's a match being played again and again with the far right kind of rising every time. we see the recomposition playing out and we heard from president mark ron yesterday that he is taking responsibility for this election >> translator: if i thought that i had done everything right, i wouldn't be standing here today. i wouldn't have called an election and everything would be perfect so, yes, i have a responsibility in the sense that i probably failed to dom up a solution that was swift and raid call enough to some of our fellow citizens with some legitimate concerns. the social malaise in real

areas, this feeling of not being in control the fears that exist of falling off the social ladner some neighborhoods and the risk is the return to the extremes. >> you hear president mark ron calling for a moment of clarification with the french people deciding what kind of future they want and it reminds them from cameron did with the brexit vote where people have to choose what they want and, again, we know what happened with brexit and some people are worried that's what could happen in france. 31% of people said they would vote for the far right in the election and 28% for the left wing bloc. that's interesting because whether they can propose an alternative they could be the opposition to emmark ron we to wait and z it's a block with a lot of differences in the last legislature. we'll have to see whether in the program they can put their differences aside and really prove a challenge to the far right, but we'll have to wait and see representing all the candidates this weekend. the campaign starts just on

monday, so it's going to go extremely quick, and there's so much at stake for both france and for europe. >> what about the right? is there a strong likelihood really because there's speculation that the republican and far right will come together in this election >> there was incredible drama yesterday because they have been collapsing notoriously, the leading of the republican called for for a meeting and straight out the party leader said he said that's not happening and he barricaded himself in le republican and the party is the completely collapsing altogether but extraordinary to see a center right party, similar to the tories, calling for a vote for the far right important and that's just extraordinary. that's important president mark ron has passed

through some of the key economic reforms so if they collapse even further because of the internal disputes there could be more implications for mark ron having any support in the national assembly. >> there's so much at stake here no doubt the coming weeks will be very, very important. let's see how the french will vote in a couple of weeks time meantime, i want to take to you germany because the german government is reportedly looking at a supplementary budget that would see 11 billion euros in additional borrowing this year while respecting the very important debt break according to the newspaper lawmakers are monitoring the development of tax revenues and are ready to act at any time a finance ministry spokesperson told reuters elsewhere, the nato secretary-general jens stoltenberg said the alliance is set to begin coordination of arms deliveries to ukraine as efforts are stepped up to protect the flow of aid to kyiv ahead of the potential trump presidency

hours earlier, hungary agreed not to block nato decisions on support for ukraine. in return though for the ability to opt out of deepening support in the future. the u.s. has broadened sanctions against russia, including targeting companies based in china that are selling chips to moscow, and imposing fresh curves on the exchange it comes on the east g7 meeting in italy where they are expected to announce an agreement in principle on plans to issue $50 billion of loans to ukraine backed by interest from frozen russian assets steve joins us now from bari steve, this is a very, very complex issue. we have been talking about the possibility of the russian assets being used somehow to support ukraine. we know also that the g7 sometimes struggles to reach consensus. how likely is it that we're going to get a clear path on the use of russian as totes support ukraine?

>> i think it's pivotal that a lot of these leaders get a win, silvia i mean, just, you know, if i may compliment you on your fantastic coverage of the european parliamentary elections and your brilliant coverage of all the the shenanigans going on at the commission not only this year but over a longer term period. the fact of the matter is the g7 and the west has been stunningly united, way more than many people expected in this last two years plus of the ukraine-russian war and yet in many ways they are struggling to keep that unity together your brilliant coverage just showed how problematic things are for so many of the key leaders in europe and in broader g7 as well so i think they need the win. they need the messaging to look right from this meeting as well, messaging not just over ukraine but also over gaza, over bigger issues as well like energy and people to even talk about the climate challenge so much anymore. it is one of the issues that

georgia maloney wants to bring up here. i think on many, many levels, political leaders needing a win level, on the g7 messaging level, on the message to russia and to china as well and to bringing the south on board, i think all these issues are really important i'm going to elevate i think it's a stunningly important g7 i've been to a lot of g7s. i've been to g-8s, the last one being in 2018 where i remember standing and getting a question to.obama as he and president putin walked by me and i've been to g-20s and they have been underwhelming on a regular basis. like water, there's no taste to t.water is good for you, but i think they need a win and that $50 billion, in round about way getting the answer to your question, getting that $5050 billion loan or whatever it is with all the huge amount of technicalities under the hood from that as well, getting that over the line would be a very, very strong signal

it would be a very big positive for leaders who are facing electoral problems such as mark ron and sumiac and possibly biden. also, it would endorse georgia maloney's position look, i have covered italy for 16, 17 years i was here in the financial crisis, and it was really sad for a country i've been coming to for 45 years to see what a state it's in. actually, if you look at all the relative data on the economy here, i'm not saying there won't be challenges. i can go through those any day but actually relatively the economy is doing pretty well the banking sector is doing pretty well. you only ask mr. messina and others about how well it's going. maloney is one of the few european ministers who is actually really strong at the moment he had a great european parliamenty elections and actually all the fears from the people in the european house, they haven't come true she's proving by and large a very solid leader so this would

endorse perhaps her position and see a little bit of a shift in the focus of a g7. very often seen as the west versus the rest, and i think what georgia maloney has done is incredible this is not like a g-20 or g7 plus or minus, anyone apart from the russian and the chinese are coming, the turks, the south africans, brazilians, the indians, some of the biggest and most important south nations on this planet that have refused so far to historically back the g7 and its efforts on a lot of these plans. they are all here as well. a, you get a decent communique at the end of it, b, you get progress on gaza and, c, you get progress on use of the frozen russian assets, d, you're getting progress, it looks like, from the treasury getting down tighter on the sanctionses a well and georgia maloney, who you think you can see on the screen as well, it would be seen as an incredible success of this italian presidency

so many issues on so many levels many technicalities about getting this loan together as well we're basically talking about $250 billion to $300 billion worth of frozen russian assets most frozen in europe, a single digit figure most of is in europe and belgium as well and there are profits from those profits as well using those profits somewhere between $it billion and $3 billion, maybe more a year, it will be a great crip feed for the ukrainian war effort but nowhere near as much has they need if you can monetize, that and most of our viewers know about monetizing future income streams, it's one of the parts of financial chicanery that is used on a daily basis, if you can monetize that now with a loan, that would be very, very interesting. the problem is who underwrites the loan what happens on a trump presidency what about the european situation which you know full well about this six-month renewal of sanctions as well and

what if the war ends every single one of us wants the war toned but if it wins should the russian assets be given back to the russians or should there be reparations if so, what happens to the already monetized stream of income going forward which has been turned into a loan backed by who at least five big questions there, silvia. >> just so interesting how georgia maloney is now becoming the g7 leader to some extent you have shulz struggling at home, sunak approaching an election and biden as well and same with mark ron do you think they will get clarification from the g7 regarding china because are we likely to see a stronger g7p statement towards china in the context of their support to russia >> i love your question because -- and i love the thought that you've put into it because it isn't just about china's position on russia,

china's position on the ukraine war, china's position on the support there, china's adherence to international sanctions because, as we know, we understand from the draft the second-tier chinese financial institutions won't perhaps be mentioned in this as well. this is a much, much bigger dare i say it than the war in ukraine issue. this is about china and the west relationship which goes back to the other big story with you and charlotte and karen and everyone has been concentrating on that as well, what about trade wars what about the relationship across the pacific between the united states and indeed china what about those tariffs on chinese vehicles is it enough to actually make a meaningful change? bear in mind, of course, the u.s. has 100% tariffs as well, so i think the chinese will be watching this and any communique and any commentary from the g7 leaders has to be stunningly well calibrated. it's really, really important, stunningly well call bratd, yes, to rap on the knuckles for some

chinese institutions but not look like this is the west trying to isolate china because, of course, china will hit back as our viewers know full well. >> well, we'll continue to monitor the coverage out of the g7 obviously we're seeing some arrivals on the screen as well we'll speak with you tomorrow, steve. meantime though, i want to take you to another story, and that is musk's pay. it is coming up on the show. we'll be looking at his potential $56 billion on the line for the ceo of tesla as shareholders are voting on his pay deal we'll be joined by arjen to discuss this more coming up next frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com.

welcome back to "street signs. just moments ago we were talking about steve about what's happening at the g7, and we're actually just getting some flashes regarding the ukraine president, mr. zelenskyy he's saying that quicker fighter jet pilot training and plane deliveries are one of the priorities at this g7 summit zelenskyy is present to speak with the other g7 leaders. he was invited by the host, georgia maloney. zelenskyy is saying that

obtaining more air defenses and long range weapons and getting approval for use of the frozen russian assets are naturally more of the priorities that they will be discussing later today at the g7. we know that the president of ukraine has previously asked for this he's been very vocal about the need for more air defense systems. zelenskyy is also saying that he'll be signing a security agreement with japan on thursday so all of this is helpful to ukraine and naturally as they continue to fight this invasion against russia let's look at tesla. their shades are trading higher pre-market after elon musk tweeted to say his pay package is passing the shareholder vote by a wide margin shareholders are voting for the second time on his reimbursement package which could come in as high as $55.8 billion. the vote is set to conclude on thursday, and arjen joins me to

discuss this in more detail. he's been very vocal about this pay package to be approved ultimately is this some sort of mind game trying to put pressure on the shareholders, or is this likely going to get approved >> at the moment the voting has been open so there have been votes cast so that's what elon musk is basing his tweet on. he has been trying to rally not just himself but others on the board have been trying to rally the shareholders of tesla to approve this pay package, and it's been a controversial pay package as we know. >> yeah. >> it was first approved in 2018 at the time the pay package was linked to targets around financial performance and around the market cap of tesla, and there were very aggressive targets at the time that very few thought would be achieved. clearly they were achieved in the time frame and the judge voided this package earlier this year and that's where the controversy stems from those against it say a lot has

changed since 2018 elon musk has bought x and started x a.i. many say he's distracted and his full focus is not on tesla tesla is facing slower growth so the financials aren't looking great and it's advising ever more competition so why should musk be awarded this pay acage those who are for voting in favor of this pay acage say, well, it was linked to performance. he hit those goals and also that the future success of tesla is all about elon musk, and so they are saying that elon musk need his incentives in order to stay at the company and to take tesla to new heights and that's really the debate playing out at the moment. >> let's see what sort of outcome we'll have on it later today. the president of the european commission ursula van der leyen arriving at the g7 meeting and one of the potential discussions they are likely to have is

ursula van der leyen asking some of the commissioners of the european commission, the heads of the eu will be having some negotiations already next week the idea is to conclude the conversations on top jobs by the end of the month let's see whether or not that will actually be the case, but, of course, ukraine support and other topics are also on the agenda for the g7. in our program note, kathy witt who is owns 5.5 million shares will be speak together u.s. colleagues. don't miss that interview coming up just after 13 cet thinking about the tesla story, arjen, i'm glad you're sticking with us, i actually want to think about the likelihood of whether he's going to remain as ceo of tesla you were saying he insd quite a lot of pressure. can we imagine tesla without elunn musk >> i think it's a lot for

shareholders to imagine it without emuck. as ron barron puts it, he says tesla is elon, ie, the company is inextricably linked to what elon does, and many who are bushel on the tesla story including catie wood, are betting on a.i. and autonomous driving to take this company to the next level and that's really where a lot of shareholders who want musk to stay on to have this pay package and really any future success must be under musk's leadership. >> such an interesting personality. we'll monitor that tesla story you can see more leaders arriving for the g7 meeting. with that in mind, i also want to show you how european markets are trading at this stage as we approach the end of the show so far it is a negatively move among european investors looking however at the stock 600 for

yesterday's session t.gained more than 1% it broke a three-day losing streak however, looking at the sentiment today it seems like it will be a different story for european equities, and looking at u.s. futures as we also approach the open on wall street, they are suggesting to be a mixed start to the session on wall street this is after we saw the s&p closing above that 578400 mark for the first time ever. both of the s&p and the nasdaq reported fresh all-time highs. let's see what we'll have in store from the wall street session later on today, but that is it for the show i'm silvia amara and "worldwide exchange" is coming up next. switch to shopify an ♪ smarter at every stage of your business. take full control of your brand with your own custom store. scale faster with tools that let you manage every sale from every channel.

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♪ >> it is 5:00 a.m. at cnbc global headquarters. i'm frank holland. here is your "five@5." wall street faces another round of record with the s&p and nasdaq once again touching fresh highs on a back of a cooler than expected inflation report. the future suggesting we may do it all over again today. investors also digesting the fed decision to hold rates and forecasting just one cut this year why our next guest says that cut could be coming sooner rather than later you have a jeff gundlach has real doubt that they will cut this year. tesla's shareholders