i'm craig melvin. thank you for watching. ♪ welcome to "street signs." i'm silvia amaro and these are your headlines. it's super thursday in europe. the central bank cuts by 25 basis points for the second meeting in a row as we await norwegian and uk central banks. we will bring you the boe decision time today. european equity markets start the session to the upside

with tech stocks leading the charge while the nasdaq is looking for a strong bounce in trade after the june teenth holiday. and president macron has enough members to claim a top job. we will cross live to luxemborg and speak to portugal's representative. and rishi sunak's polls suggestion he is on track for the lowest level seat total in the upcoming election. we start today's show looking at the latest announcement from the norges central bank. the key policy rate has been kept at 4.5%. what we are seeing this morning out of norway is a note change

from the central bank. this is actually in line with what analysts were expecting going into this meeting. however, a lot of analysts were looking at the probability of the rate cut was dmiere diminis. they could see a rate cut happening around autumn time, but they raised the prospect that it would raise in december rather than september as some were expecting. this has to do with the latest numbers from norway in terms of inflation as well. investors taking in what is happening there and what is happening on the economic front to understand what might be the

next steps from the norwegian central bank. in terms of the commentary from the norges bank, inflation is running above target. they are showing, clearly, a lot of concerns here in terms of the level of inflation in norway. they are also saying since the march report that inflation has been a little lower than projected, but overall, they are still seeing room for concern when it comes to the overall trajectory of inflation later on this year. they are also making comments surrounding employment. they are saying unemployment has increased since the march report. clearly, the norges bank is monitoring what is happening on the labor market front. then a very important front with wage growth. we know this naturally feeds into what happens with overall inflation dynamics. norway is saying wage growth

will be higher. a few points here for concern when it comes to inflation in norway, but overall, what we heard from norges bank so far is they keeping rates unchanged at the 4.5% level. this comes as a day of super thursday as we are calling it today because naturally, a little over half an hour ago, we heard from the swiss national bank. they are announcing a second consecutive cut reducing the key policy rate by 25 points. the snb said it is willing to be active in the fx market as necessary. a comment they said back in march. the snb said inflation pressures have eased on the quarter and revised the inflation forecast down ten basis points to 1.3%. the storieyies we hear from switzerland and norway are different for the time being. stay with cnbc today.

at 12:00 cet, we will hear from thomas jordan and at 13:30 cet, i'll speak with ida wolden. stay with us for the boe rate decision at 12:00 british summertime. with all of that monetary policy context in mind, let's show you how european markets are trading at this stage. we are seeing all of the major boards in the green. i would highlight the stronger or strongest moves in germany. the dax up .60%. the italian market moving up .70%. naturally, in the wake of the swiss national bank decision, we are keeping a closer eye on the swiss stocks. we are also seeing exchange, excuse me, in the swiss franc in

the wake of the snb decision. over here in the united kingdom, the ftse 100 is flat at this time. it is important to keep in mind the investors do not expect a change in the rates from the bank of england as we are approaching the general election. we never know. we shoul we should monitor the comments from the bank of england with the voting split as well. we will see what implications it will have in the markets. just a brief look at u.s. futures. they are suggesting a stronger open on wall street today, but this is after we saw actually no trading session yesterday due to juneteenth bank holiday. at this stage, we are looking at a stronger open on wall street. let's see.

now over in cannes, marketing executives are discussing brand authenticity and human development in advertising amid the surge of a.i. elon musk talked about advertisers on his x platform saying his previous harsh words were not aimed at advertisers as a whole. speaking at the cannes lions festival along mark reid, musk said it is important to have a platform supporting free speech adding he will not allow it to be censored for money. we have our own tania breye r with more. >> reporter: thank you, silvia. good morning from the rainy and windy cannes. the man responsible for getting

remarks from elon musk is mark reid. thank you for joining us on "street signs. >> good morning. >> reporter: mark, you spent 45 minutes with elon musk yesterday. thousands of people were queing up. >> you can call it the charm offensive or engaging with the industry. the biggest queue at the cannes festival with people wanting to hear what he had to say. >> reporter: are the industry angry with him? you told him politely to go somewhere. you how is the he going to win back? >> he wasn't telling the industry to do that. he was saying from his

perspective freedom of speech is more important than what advertisers tell him. if you go to a newspaper, they will not take a phone call from the advertiser to tell them to change the coverage. i don't speak on his behalf, but what he said to us yesterday was very much the same position he took as it runs x. the company formerly known as twitter. >> reporter: talking about x, the company formerly known as twitter, what do your clients want? do they want to advertise? >> the whispering were i'll have another look. as we talk to the group and the brand safety perspective, people say it is brand safe. he made the point about advertising in a safe context. i don't think it is perfect. i don't think any media platform contains that volume of posts. there are more than 500 million people a month on the platform.

it is tough to monitor that content content. it is a lot in respect to that regard. >> reporter: do you think anyone have changed their minds? >> i think people are willing to take a look in reassessing where they are. >> mark, i want to ask you about a.i. which is a huge topic here. you launched the a.i. production studio using the technology. how will that change the way businesses market? >> today, we tend to take physical objects and draft them. we will take the designs on the video technology. we will be able to move more quickly and shoot product before it is made. if you go to a car configure rater, they will see one car. you will see the exact car you want to buy with the wheels and

paint in a live video. we struggle with the content on the platform whether it is amazon or google or x or youtube. there is a massive production changes for clients. >> reporter: there are those that say a.i. will put some businesses, agencies, out of business. what do you say to them? >> i think creativity matters more than ever. you have to have an idea. i think while machines can be creative, our industry will be more important. when the physical objects where anyone can do something and standing out is more difficult. i agree it will be challenging and fundamental. i agree there will be jobs disrupted, but new jobs created. some people think old fashion skill of creativity and what we hear in the south of france to

celebrate for a week will remain more important in a.i. >> reporter: people are worried for their jobs. how will it impact head count? >> i think it is too early to say. we will see the um p impact in next two or three years. i think we are good at targeting people through media and anin illiniing data. we make one banner ad. technology is more relevant. it will create a lot of jobs. i think as sales and trading floors with the technology comes with more people. i'm not sure it is a total job elimination. >> of course, there is a lot of focus on the economy here. how will it impact your business, mark? >> it is interesting. people watch what is professionally produced and half

is coming from the creditor eco createor economy. we had a great piece of work for l'oreal in the super bowl which took advantage of the influence community which one at cannes. one of the biggest insurfluencen people today is tiktok. when we like it or not, that's where they are and spending this be time and discussing trends and looking at things and where culture is being shaped. that is where our brands want to be. another really important area for growth for us. >> reporter: how does traditional spend compete with that? >> you can help things go viral. you can help things spread. i think how our clients are spending money is gradually shifting in that direction. meta is one of the fastest growing in the last year in

terms of advertising spends. i'm pretty sure that tiktok is not far behind. >> reporter: we are in an i big election year. are your clients worried they could make a misstep? >> i think many clients see the uncertainty. i think they worry about a misstep, but more looking at the way physical parties see technology as interesting. if you look at the campaigns in the uk from the labour party and conservative party, you see the targeting messages at user groups. in a way, critical parties are leading the way in the use of social media for advertising. >> reporter: finally and quickly, mark, what should they prioritize in the next 12 months? >> we are doubling down on a.i. our view is this is absolutely fundamental. i think we need to see how to embrace it. yes, it's early, but people who

start early will finish ahead. >> mark read, ceo of wpp. thank you for talking to us on "street signs." that's it from an almost sunny cannes. back to you in london. >> it is always lovely. thank you for bringing that conversation. for more with the wpp ceo and elon musk, check out cnbc.com. coming up on the show, the eu opens budget discipline measures against france adding to the country's risk premium. we'll take a deep dive into what is happening in the european bond market after this break. what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your 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.

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endless possibilities for people to thrive. visit feedingamerica.org/actnow welcome back to "street signs," everyone. we look at the markets at this stage. european markets have been trading for an hour and 20. we have the stoxx 600 up .40%. today is a day of super thursday. we have three central bank decisions happening here on the european continent. on top of that, we received new

car registration data suggesting a drop when it comes to ev sales in the bloc. i want to take you to the geogg geographical breakdown at this time to show the breakdown of the indices. we have swiss stocks up .30% in the wake of the snb decision to cut rates once again by 25 basis points. we are talso keeping a close ey on the uk. the ftse 100 here at this stage is flat. we are waiting to hear from the bank of england at lunchtime. however, commentary will be important to understand what could be the future rate path for the bank of england. i also want to take you to the different sectors. there are a couple of stories at this stage. the worst performance is food

and beverage down .5%. a couple of stories have to deal with the fact that one announced a deal to buy a company in the united states. the details of that announcement have not been very pleasant for investors. on top of that, we also heard from danon decreasing the guidance to investors. that is contributing to the negative momentum when it comes to food and beverage. technology at this stage is up 1.2%. they are thesector pushing and driving up european equities this morning. one of the events early today was an upgrade of asmi which contributed to some possible t positive momentum. this is one of the main nar toughs for the markets this week. one of the main events, of course, was nvidia becoming the world's most valuable company. let me take you to the bond

market. naturally, the important one in the central bank announcements. atop of that, a lot of concerns with the french paper as we approach the parliamentary election. just a brief note to say the yields are picking up. we are keeping a close eye on the spread between the french and german ten-year yieldsis ri the european commission announced yesterday it is taking steps against the french government ahead of the parliamentary ote. we know this is a concern and continues to be a concern. we'll be getting a gauge, really, of investor appetite when the french treasury undertakes its latest auction later today. we are keeping a close eye of the feeling among the investors with the french bonds at this stage or the fiscal pru den as i

as we approach the parliamentary election. i'm pleased to say greg peters at pgim fixed income is with me now. >> good morning. >> i like to start the conversation with france because we will have the auction later today. what do you think we will see? what do you think is the sentiment among investors? >> it is an important auction. it is the first auction since macron's gamble. what is note able is you sea a w weakening of the french bond market and spreads, but also in germany. there is a broad weakening trend. this auction will give you a sense of demand and clearing level. i don't see investors stepping in because you are stepping into the unknown. it is unclear how the election will play out and the implications are pretty important. i don't see bond investors

seeing yields at higher levels and saying it is all clear. >> what does this mean for potential risks for the eurozone? some analysts are actually making the point there could be risks for the periphery or risk for the german bonds as well. what is the spillover effect from the parliamentary election in france? >> it calls into question the growth prospects. there has been this cyclical upswing in europe. some of the peripheral countries have out performed the core. that relationship has inverted to a large degree. i'm not sure that is the defining characteristic going forward. the more uncertainty you have around budgets, deficits, you need to cut and grow at the same time which is inn tractable and makes growth in europe that more

question questionable. >> where is the growth in the eurozone? it seems like the south as you are highlighting there is seeing a turn of the page prospects. is it still a safe moment to look at the south of europe? >> i think it is in a very good place. you know, italy will, you know, see significant slowdown. it's been out performing the past 18 months. spain continues to do quite well. i expect that to continue. the uk is doing well. you have inflation coming down and you have wage growth really quite strong. the back drop is quite robust from a cyclical standpoint. there's lots of secular forces going the other way. sick this is why the elections

are so important as it takes the cyclical lift away from the eurozone. >> do you think we're at a point where we're likely to see the ecb actually triggering tpi? do you think that the risk will be high enough that the ecb might have to intervene or are we too far from that? >> i think we're too far from that right now. i was fully expecting the markets to test that. that hasn't come to fruition. anytime there is a line in the sand, that is pushed. i would be really surprised if it happens vis-a-vis france. i don't see that as a problem at this point in time. it will be found watch at these levels. >> industry very interesting. i would like your thoughts on the u.s. we talked about the fiscal issues with france with investors. what about u.s. debt?

are we lacking paying enough attention to this bond really? >> so debt is el the sevated everywhere. this is a global phenomena. at some point, you have to rein in deficits, whether it is in the u.s. or elsewhere. the challenge that the u.s. market has is that politically, there is no will to do so. if you look at polling, deficit worries doesn't even show up as a top ten issue. until it is an issue in voters be minds, it is not an issue. i expect deficits to continue. the u.s. election is important, no multiple dimensions. that deficit has a different look versus democrats and republicans.

i think that matters a lot. >> just briefly, in your notes, you have cash is king. are your investors basically on hold for now? >> i see a much quieter marketplace the second half of this year. returns have been, you know, pretty solid. you are seeing the shot across the bow across with mexico and france. i think investors will wait for the coin flip on the u.s. elections. >> thank you for your time. greg peters from pgim. coming up after this break, we'll be crossing live to luxembourg where finance ministers are meeting today. we will speak with joaquim miranda sarmento after this.

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meeting in a row while the norges bank sees the rates on hold for the rest of the year. we will speak to the head of the snb and norges bank. and rishi sunak suggests his party is on track for the lowest level seat. we'll bring you the decision at midday london time. european equities lead the charge white nasdaq is charged with the strong bounce after the juneteenth holiday. the tustle for the key role with meloni secures enough votes. we'll cross liveluxembourg.

and in the latest, meloni's right-wing group has taken over in the european parliament as the faxction announces 83 membes in the 720-seat parliament, i should say. in comparison, it renews 80. that could change this morning with five mps in talks. we will see what happens there. the ecr has vowed to take a top eu job putting barriers in the way of a second five-year term at the helm. parties have july 4th. the european commission has named seven countries which should be disciplined for

running budget defdeficits. bullard, belgium, france, hungary and italy. this is the first time this will be used since the suspension of the rules in 2020 amid the covid pandemic. the executive vice president and the commissioner for economic affairs explained the move laying out what to expect in the coming months. >> we reviewed the reasons and concluded that the deficit criteria is not fulfilled in seven member states. belgium, france, italy, hungary, malta, slovakia and poland. this means that for these member states, the commission will propose decisions establishing the procedures. >> today's report is the first step in the process of opening

the review. it will be for the council in july to adopt a decision and establish the existence of those member states. the recommendation of the correction will be proposed in november. european finance ministers are gathering for a meeting of the economic and financial affairs council. the portuguese finance minister is joining me live from luxembourg. >> good morning. >> first, i would like your thoughts on the spillover effects, really. there is a lot of concern today as we approach a new auction by french debt authorities that there could be ramifications for other parts of the eurozone debt market.

are you concerned that the call for the snap election in france could have ramification for other eurozone bond yields, including the portuguese? >> well, good morning. we are confident that the european institutions and the european projects will remain very strong. we believe markets will continue to have confidence in the euro project and in our particular case, portugal is well suited to be protected from market adversities. we had a surplus of 1.2% of gdp last year in our fiscal balance. we forecast to continue to have surplus on the fiscal balance of 0.2% or 0.3% allowing to us reduce public defenbt to close 95% and reduction of 80% of gdp in 2028. i think the concerning portugal,

the fiscal balance and the reform program and the economic growth perspective will allow us to continue to have confidence from investors and markets in a broader confidence of europe. >> recently, you highlighted that in the first quarter, the portuguese economy registered the deficit. you suggested that a lot of that had to do with the previous government. you've blamed them for the fiscal position of portugal. ultimately, what is the message to international investors? do they need to be concerned about the state of the fiscal por position in portugal? >> no, institutions should be confident on the fiscal position of portugal. we will end the year with a the small surplus. 0.2% or 0.3% of gdp. we forecast for the next year.

we will remain extremely robust in terms of public finance and with the economic growth, we forecast 2.3% economic growth next year. we have the structure reform and we expect growth to increase and we believe we are potential gdp to grow up to 3% over the next years giving more fiscal space to portugal to reduce the public debt. >> now, a lot of the economic performance is coming from the tourist sector. this is not just the case in portugal, but a trend across south europe itself. minister, do you recognize there are potential risks here of a tourist bubble for the economy and more broadly for the south of europe? >> tourism is an important sector. portugal has always been. the value has been increasing. we are creating more value in

the tourist supply. other sectors arie also growing. we're continuing to diversify the economy and creating more value in the services we provide to people. >> let's look at the banks. the central bank governor warned the portuguese banks they need to save more and the recent earnings they have posted are actually transitory, i should say, and ultimately they are not here to stay. when you look at the banking sector in portugal, do you think that is a moment of transition and they need to be quite cautious really, about the outlook as the ecb starts cutting rates? >> well, the portuguese banks have a tremendous transformation

over the last 15 years. they are now robust. they have high levels of capital. they have liquidity. they have families and friends reduced their debt. the banking sector in portugal is much more robust for the future. nevertheless, it is necessary to continue to have capital ratios and it is important to continue that banks continue their restructuring and that the banks do not allow for coming back to a more difficult position. i'm more confident on the banking sector in portugal that the transformation in the last 15 years was one of the most important in the portuguese economy. banks are resilient. they have high levels of capital and they could absorb shocks, but again, it is necessary to

remain vigilant and banks continue on this path to be more and more resilient. >> are you supportive of the consolidation of the banking sector in europe? our neighbors speculate about a merger in the banking sector. some of your colleagues in explainspain suggest this is not good for consumers. that's the deal we need to see in order to see a strong capital market. in your opinion, do you think portuguese banks should be consolidating further with other banks in europe for that strong capital markets? >> that's something we will have to analyze over the next months and years. there are regulatory issues and government will have a position, if any, of those businesses were to happen.

at this moment, i'm very confident of the banking sector in portugal and also on the five main banks and how they share the market. >> a question more from a member of the portuguese government rather than just looking at the finances themselves. there are a lot of conversations about the next stop jobs. i have two questions for you. you are supportive of the president of the european council and what portfolio would you like portugal to have from the next european commission? >> well, first, all government is supporting the council. that's a you non unanimous deci. we will have to discuss the decision of the portfolio areas that could be of interest for portugal. it's too soon and it will be a

good step on the negotiations if i were to make any comment on that. >> let's see what will happen. thank you so much for your time today. good luck for the meetings. that was the finance minister of portugal. looking at china. chinese automakers are seeking higher tariffs on eu made cars as the country pushes back on chinese evs. it comes after the european commission itself announced subsidies of more than 38% on some evs imported from the country set to take hold in july. sam vadas filed this report. >> reporter: chinese carmakers have raised tariffs on gas guzzling vehicles. it comes after the eu announced hiking duties on chinese evs after the unfair competitive

advantage. the calls were voiced in the closed-door meeting this week organized by the chinese ministry of commerce. who was at the meeting ? byd. european carmakers like bmw and vw and stellantis were all there. this is not the first time we heard this. there has been talk about hiking tariffs from 15% to 25%. there is an expectation this could prompt talks between china and eu. in the meantime, china has launched an anti-dumping investigation into pork from the eu. this was at the request of the industry and in line with wto

rules. the report comes as german economy minister is headed to china this week with a low-key business delegation. he is not involved with the tariff talks directly, but is expected to push and do so for a more level playing the field in china. in singapore, sam vadas, singapore business news. time to look the european boards which have been trading for an hour and 45 minutes thus far. what we are looking at is green across all of the main boards in europe. we are monitoring what is happening in switzerland. we are seeing swiss stocks higher this morning after the announcement from the snb it was cutting rates by 25 basis points for the second meeting in a row. over here in the uk, we are going to hear from the bank of england later on this morning. naturally, it is a moment where we are keeping a close eye on what happens in france.

cac 40 up .5%. an important market as we approach that parliamentary election in july. i want to take you to some of the sectors. chinese automakers are seeking highers tariffs on eu made cars as the country pushes back on chinese evs. that's according to chinese state media. some of the names at the moment to my right are seeing this story on potential tariffs on actually putting pressure on a lot of the european auto names. early this morning, we got data showing that new eu passenger car registrations fell 3% on the year in may with battery electric vehicles losing market share to 12.5% from almost 14% a year ago. pressure here when it comes to evs. in other corporate stories, danone is expected to focus on health and medical nutrition as part of the strategy to boost

sales. the manufacturer says it expects to achieve like for like sales growth between 3% and 5% between 2025 and 2028. at this moment, we are seeing shares down by more than 4%. still in the space, sainsbury's is selling its core business to in thewest with the bank expecting to acquire 2.5 billion pounds of customer assets. the purchase is expected to have a 20 basis point impact on natwest with the ceo saying it is a great opportunity to accelerate growth. some of the shares of the company is here to my right. this is not just the first announcement we are seeing in terms of the banks looking at other parts of the market. earlier this year, we also heard from barclays and that banking business. that trend is continuing over here in the uk.

let's look at fx markets. it is an interesting one with the central bank decisions coming through. at this stage, we have the euro moving lower against the u.s. dollar. trading lower by 0.25%. we are also keeping a close eye, naturally, on what happens with sterling. it is moving lower ahead of the boe decision. currently trading at 1.26. earlier this morning, it was 1.27 handle. now below that. when it comes to the swiss franc, we are keeping a close eye here in the wake of the ecb decision. i want to take you to the bond market. european yields are in a very interesting momentum this morning not just because of the central bank decisions, but also because we are expecting a new auction from the french debt

authorities. they raised concerns about the fiscal position. earlier in the show, we were discussing with one of our guests that likely, investors will press pause here in terms of acquiring new french debt as they try to understand what will happen next for the french economy. let me take you to the u.s. futures. we are looking at wall street reopening today after wall street was closed yesterday for the juneteenth bank holiday. the futures do suggest it will be a higher start on wall street today. a couple of economic data numbers are due today including building permits and housing starts and account balance and we are likely to hear from three fed officials today. coming up on the show, we'll dig into what to expect from the bank of england's rate decision today. it is the last one before the country's general election.

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welcome back to "street

signs." let's look at uk politics. rishi sunak has been hit by another bruising set of polls two weeks away from the general election. one poll and labour party receiving 560 mps out of 650. the ugov poll from sky news sees l l labour party with more seats. speaking to cnbc, the former labour party communications director was dismissive of the polling. >> i do not for one second believe that the conservatives are going to get virtually wiped out. for labour to win a majority of one, they are to get a bigger swing than we got in 1997.

i think there is something wrong with the polls. i could be completely wrong and it is true labour is consistently ahead. i think in our election period, we talk less about polls and more about what the parties are saying. i don't believe the polls. i think they are nonsense. >> we are monitoring what is happening on the political front. that is happening at the same time that we are going to hear from the bank of england. this is happening today. the bank of england is announcing the latest rate decision. this is going to be the final one before we go to the polls before the uk heads to the polls. we hear from the central bank and this comes at a time where we heard the latest headline inflation print. it came to the 2% target for the first time since 2021. you have to see to my right the chart here showing exactly how much the inflation has come down, really, from the peak of

11% in 2022. the prime minister rishi sunak claimed credit for the country's falling inflation level. >> a very positive step. it shows the plan we put in place is working. inflation back to target. it was 11% when i became prime minister. i said it was a priority to bring it down so the people can now feel an ease in the cost pressures they have seen. it is because that plan has worked that we have been bable o start cutting taxes. i want to keep cutting taxes at every stage in their life. labour would just whack taxes. >> it is interesting how the politicians are taking credit for the inflation levels here. however, we have to put that in the market perspective and it is important to look at the other figures. core inflation above target at 3.5%. you have there the annual figure

as it fell from the april level of 3.9%. services inflation, a surprise to the upside coming in at 5.7%. this is what the investors are still looking at what the bank of england is still looking at. at this stage in the wake of the inflation print, investors reduce their bets on the bank of england easing after this latest print. market seeing a 1% chance of a move lower today and a first fully priced rate cut coming only in november. let's see what will happen there. economists, however, expect the bank of england to go further with 63 out of 65 polled by reuters ahead of this week's data expect a rate cut in august. this outlook was mixed with the investment banking economists split whether we will see a 50 or a 75 basis point cut throughout this year. let's see what will happen later

on today. we'll bring you that decision later. when it comes to european markets, this is the picture at this stage as we await to hear from the bank of england. we are seeing pockets of green across europe as investors are digesting some of the central bank decisions. be sure to stay with cnbc at 12:00 cet. we will hear from thomas jordan and at 13:30 cet, i'll be speaking live with the governor of the norges bank as well. i'll be bringing you the special programming for the bank of england interest rate decision. coverage starts at 12:00 british summertime. m ho is it for the sw. i'silvia amaro. "worldwide exchange" is coming up next. eed? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our

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it is 5:00 a.m. here at cnbc global headquarters and here is your "five@5." a record week under way. wall street set to open at fresh all-time highs as investors look for a rally. and a chip space with nvidia making history all of its own. becoming the most valued u.s. company in history. from new york to the great lakes, record heat is sweeping across the country. more than 175 million people are facing excessive heat warnings. we will tell you what it means for one of the