welcome to "squawk box." we're coming to you live from london and paris. these are your headlines. france's left-wing coalition claims a shock win in the parliamentary vote warning off the far-right which gained a surprise third position. and meantime, france wakes up to a hung parliament with no clear indication of who will

lead the government and gabriel attal declares he will step down. french stocks, i should say, bounced off the opening lows as risk premium on french debt from the lowest level in mid-june. boeing looking to plead guilty and pay more than $450 million to settle a deal into the deadly 737 max crashes, but victims families ran the deal and fair. ♪ france's left-wing group, the nfp, this is key, because it was a name that we've just become used to because the coalition formed on the back of the first shock that there was

going to be an election. the new popular front has received what is considered a sharp victory in the parliamentary election thwarting the far-right rally which was expected to become first in the vote. the nfp picks up 178 eat seats. marine marine le pen taking below the projected. the result leaves no party with the majority and france with a hung parliament putting the state in political paralysis. they are in discussions to form a government for outright majority. the left-wing expects to lead the next parliament, whatever form it takes to carry out the tax and spending program. speaking to cheering crowds following the first exit poll,

jean-luc melenchon called on emmanuel macron to appoint a new prime minister from the new popular front. he suggested they will enter from a position of power and not carrying out macron's agenda. >> translator: we said it last and reiterate this to the president of the rewestpublic. we refuse to enter into negotiations after looking relentlessly for recseven years. the votes have confirmed this after the ballot box made them largely disavowed. especially after the new front popular despite all of the defamation and inssults the people gave them. >> marine le pen said the

results would lead to deadlock. >> translator: tomorrow, we will be in a position to have an absolute majority. maybe in a year. because the shield i had predicted will occur. france will be totally deadlocked with three sides in the national assembly. so that's the way to go. it's unfortunate we will lose another year. another year of illegal immigration and perch and power loss and another year of insecurity exploding in our country. if that's what it takes, well, then that's what it takes. >> prime minister gabriel attal announced he will hand in his resignation to emmanuel macron this morning. he said the new parliament will get to work to address the needs of voters. >> translator: tonight, the political faction are represented in this campaign although it performed three

times better in last weeks. did not maintain a majority. the rules and in principle, i will hand the president of the republic my resignation tomorrow morning. >> let's get to charlotte for more of what we saw over the weekend. the highly engaged french voter and the political landscape working together to block the far right. >> reporter: that was really, really interesting. it was just four weeks ago where we stood where president emmanuel macron called the snap election and the far-right made the huge gains in the european elections. look, this is a moment that france needs a moment of clarification. in a way, we've got it. france voted against thegagain. the republican front held.

the voters coming out en masse. 67% turnout. people came out to vote. all of the candidates dropped out of the race in the three-way run from round one to round two to consolidate the vote. all this worked. that moment of clarification did happen. there still are questions there. now we have all these three blocs and none can reach an absolute majority. we see the left-wing bloc can top. that was the surprise of the evening. none of the votes had predicted that. they are very far from absolute majority at 182 saets. away from the 289 imagimagic nu. can there be a coalition? that is not at all in the french political tradition. the centrist parties will have to work together if we don't want to have this gridlock situation in the national ass assembly. we have to wait and see how the calls go.

we heard jean-luc melenchon say earlier he doesn't want to talk to president macron's party to talk about alliance. other members, including from the socialist party, are more open to the talks. we have to wait and see how things go for the meantime. for the far-right group, marine le pen said it is only a delay until her party makes a victory. all eyes are on the 2027 presidential election. we are hoping to use a victory in this parliament election as a stepping stone to the presidential one. that is a setback. if there is chaos and the centrist parties do not manage to work together, it is laying ground for the far right. the left-wing has to come up with a name for a prime minister and they also disagree with that. we have to wait and see if they get their act together. gabriel attal preparing his resignation and he said he will continue to run the day-to-day

affairs because france is facing key challenges with the olympics starting in less than three weeks. we will wait and see if there will be a new team and government put in place. >> charlotte, just looking at the next prime minister, that conversation, as you said, would need to get their act together. the leader of the far-left, jean-luc melenchon, very divisive character, nonetheless. if he was the one selected, how damaging could that be overall to president macron? >> reporter: he's not going to become prime minister. even members from the socialist party, for example, say they do not want jean-luc melenchon to be the prime minister candidate for the left. it's very, very unlikely he would be the name put forward. they have to agree on an alternative name. some mentioned the former president, a socialist candidate, has been elected as an mp just yesterday.

he could be one of a more centrist figure. of course, we know that emmanuel macron was his finance minister, back stab him, and became the main candidate. he had to walk away in the election and running for re-election. that would be a turn of events if he would be prime minister with emmanuel macron in charge. we have to wait and see. a lot of speculation at the moment. this is completely uncharted territory with french politics. there have been a president dealing with a party in government not from his own side, but not a completely hung parl parliament and divided. they have to redo what they do in french politics. the french voters certainly wants politics done in a new way and the polls reflect that.

now we have to wait to see if the parties race to the challenge. >> unchartered territory, indeed. charlotte, thank you for reporting throughout today's trading. interesting thing, we thought the market might point to the instability. instability is not necessarily good for the market picture. it seems to have turned in another light. we have seen the market managing to gain .50% particularly out of france. significant movement higher. some of the lenders are the ones who went down significantly following the first round of voting. this time around, it is the french banks that actually moved higher. this is what you are seeing then. credit agicole. up .13% to the good there. soc gen now .7% higher. so is bnp paribas over .25% to

the good. to europe, 1.08 is the mark. managing to find some gains as well for it following on from where we had seen it almost losing out at 108 early on. now you see across the flat line across today's trading. 108.40 is where the euro stands. on to the yield. this is one we had been looking out for because of the eurozone bond yields had been dipping. even after the first round of this election cycle then as well ahead of the elections, the second round that is, and the risk premium we had seen that move to the highest level since 2012. 3.2181 is the ten-year french curr currently. overall, let's look at the market picture. silvia, we anticipated instability coming fromthe results, which would bring on

instability, shall i say, and the rmarket is moving to be suc into the green. >> reporter: the markets are looking at this and looking at the result suggesting actually what we obtained was not the worst possible scenario. they are taking some relief from that. so far this morning, we look at french equities and that market. i want to take a closer look at the euro. i'm pleased to say christopher, the senior advisor at asset management is joining me. >> good morning. >> i was looking at the french moving against the u.s. dollar shrugging off the moves we saw earlier today. how are you looking at the outcome of the french election and thinking about the outlook for the euro? >> i think the market understands the next government and which coalition will take place and has little fiscal

space. the biggest problem is deficit and public debt. i know during the campaign, the left won a lot of seats, and was looking to increase production. at the end of the day, the next government will have no way to increase spending. they need to cut spending and they need to, perhaps, increase taxation. at the endof the day, that is a kind of political course that will apply. >> ultimately, when you think about the overall move about the national assembly, it is clearly moved to the left. they have very concrete plans of how they want to increase spending and actually likely to clash with the fiscal rules that the eu has put forward. ultimately, is the outlook for the eu likely on a downward move as a result of the potential clashes? >> i think we should not panic. after the first round, i was in

touch with the green party. they went to me and said the next election, the second round will be divided. we don't know the outcome. we like to understand which economic measures we should keep in case we make a coalition government with macron. what you need to understand is what is left is nfp, will not last so much. it was a platform to win seats. at the end of the day, there will be a coalition government for macron's party. >> you are suggesting we are going to see the fall of the far-left coalition and actually see macron, perhaps, making coalition with the socialists and the greens? >> clearly, it may take a number of days or weeks. we need to learn that. in france, we don't normally do that. at the end of the day, i'm sure we won't have so many far-left members of the government. i don't think they will be part of the government because they will never agree on the economic

merger. most of the companies would go bankruptcy. i think there will be a grand coalition as we see in germany, for instance. >> what is the outlook for the fiscal position? regardless of the next prime minister or regardless of the government, as you suggested, we have a budget deficit of 5% this year. when you think about what's ahead for 2025, are we likely to see pressure on the euro as result of perhaps not bringing down their deficits? >> it could be tough. we could see the pressure. france is one of the key economies in the eurozone. as a matter of fact, i expect for next year, we need to cut spending and increase taxation by 20 billion which is huge. 20 billion is huge if you want to cut defenseicit. clearly, it is a negative path for the euro. i don't think the euro will move. it will remain weak at 1.08

against the dollar. france, in terms of the deficit on the economic situation is one of the risk in the eurozone because we need to tackle this deficit. it is one of the biggest issues. >> 1.05 for this year. when you think about what is happening in the united states with the fed and the election there. >> i'm clearly thinking we iwil have a strong dollar. you will want to go on the dollar which is one of the best. in the next month, we will have a tough negotiations in france with the budget. it will have an impact on the bund markets. ultimately, it will be negative for the year. a lot of volatility and clearly my bet is a strong dollar in the coming months through 2025. >> reporter: thank you for sharing your thoughts. that was christopher dembit at pictet asset management. guys, we could see further

pressure for the year. we could not factor in what is happening in france and broader usua eurozone, but what is happening stateside. >> thank you, silvia. coming up on the show, the u.s. creates more jobs. that is not all good news. we will bring you the numbers next. what is cirkul? cirkul is the fuel you need to take flight. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul is your gateway back home. so

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having closed last week slightly lower for the stoxx 600, 2% lower, in fact. the market is moving in positive territory. the french market managing to find some gains, in fact. that is pulling through across the broader market. .40% higher is where we are right now in the early morning of trade, an hour and 20 minutes, since the markets opened in europe. friday, we followed on from the uk shift into the market and just seeing the labour landslide victory and what that meant for the ftse. that went down .4% by the close

of the trading picture. actually, it is seeing household goods and construction index 2.5% higher. where is it today? this is where the european markets are today. the ftse 100 is flat in the slight green for now. the cac 40 has managed to move higher. .23% to the good. the german market manage anning to find gain. ftse mib is 1% higher in today's trading. positivity all around there. on to the sectors. this is what's moving things along. we have been asking if the luxury stocks would be able to gain. autos managing to find strength .23% higher there. the banking stocks on the up as well. 1% higher for the insurance companies with construction and material companies .8% to the

good. basic resources falling .50% with oil and gas stocks taking a bit of a hit as well. let's follow on from the oil prices which is down after rising four weeks after the cease-fire out an gaza. potential disruptions in the united states with tropical storm beryl on that side. u.s. futures. we are headed toward what is thursday's cpi print which will be very significant for the market picture. at the same time, we still have the earnings report that is set to come through as well for this market. that is happening on friday as we kickoff another earnings season. karen. let's talk about something that oil markets could be watching closely. storm beryl has strengthened to a hurricane as it barrels toward texas. oil companies have evacuated platforms bringing a halt to lng and exports. the u.s. economy added 206,000

jobs in june, but coming in weaker than may's revised gain of 218 k. the unemployment rate unexpectedly rose to the highest level since november of 2021. steve liesman filed this report. >> reporter: if trends continue, it will give fed officials something to think about with monetary policy. non-farm payroll came in at 206,000. april and may were revised down by a large combined 111,000. the unemployment rate ticked up to 4.1%. a tick higher. the first time since november of 2021. that's likely higher than the inflation rate. probably another month of real or inflation adjusted positive wage gains. government led the charge with

jobs up 70,000 with federal, state and local government hiring. heal healthcare, a source of strength for the economy, 49,000. goods with gains in construction. leisure and hospitality up 7,000. temporary help, may be a sign of weakness to come, down by 49,000. private sector job growth down at 136,000. it has been weak in the past two months which augers for more weakness ahead if government spending drops off in the coming months. the fed funds market put a low probability on the rate cut in the july meeting, but confident of a cut in september. futures trade with a second cut in september. job growth and especially private sector job growth have stepped down from earlier levels this year, it is hard to say they're weak, but it bolsters what the fed community says it

may be time to keep a closer eye on the fed dual mandate. steve liesman, cnbc business news. now to m&a news. s skydance and paramount agreed to a merger. shari redstone will agree to sell her stake. paramount has lost almost $17 billion in market value since 2019. boeing says it has agreed in principle to plead guilty to a criminal fraud conspiracy charge tied to two deadly 737 max crashes. the deal with the doj, which still needs the approval of the federal judge, will see the company pay a fine of almost $250 million. this is a massive, i suppose,

deal for boeing in a sense that they've now admitted to something. of course, getting a fine. many will feel $250 million is getting off almost scot free. >> the loss of face, to an extent, is meant be compensated with the slightly lighter offer here which is what is on the table of $250 million which is what some of the plaintiffs were seeking in the order of $25 billion in terms of a fine. huge gap in terms of the penalty here. there will be some heat on boeing. that is through compliance officers who will be watching the company for three years. that is part of this deal if they accept it as well. independent monitoring, effectively, to make sure nothing else goes wrong here. what was on the table in 2021, the courts were fairly light on the crashes as long as boeing was above board in the operations. that is not the case.

things have not been managed well. that seems the light deal that was offered back then is now replaced with this offer. many of the victims feel it is not going far enough and it is a slap on the wrist for the company. where it is in terms of admitting to guilt and where it could go badly wrong for the company is the defense contracts. if there is a criminal outcome here, that it would bar boeing from going after the contracts. $22.81 billion last year. the wall street journal piece on this. there is talk there could be a waiver which would allow this guilty plea, in that is still enabling boeing to go after defense contracts. very key to the bottom line. >> they ultimately need those to keep the business going and re resuscitating since dave calhoun is leaving after this year. who will take over is interesting to note. will it be an insider or

ultimately somebody who sees the culture as having to be different? earlier this year, when dave calhoun was speaking to congress early on, he said we've heard the concerns loud and clear. our culture is far from perfect, but we are taking action and making progress. how do you prove you are making progress? is it just a case of no issues arising over the next three years in which you are then being watched? after that, what happens then? you've had what feels like years and years, if not a decade and more, of these frailities happening within boeing. is it now systemic? >> we are talking accountability for these deaths. coming up on the show, we return to politics with france heading for a hung parliament. we will discuss the path forward for the country's agenda with

antonio barroso.

♪

welcome. we are covering the french election live. we are coming to you live from paris and london and covering another night of french politics. here are your headlines. france's left-wing coalition claims a shock win in the parliamentary vote fending off the far-right which gained a third position. france wakes up to a hung pe parliament with no clear indication of who will lead the government and prime minister gabriel attal says he will step down. french stocks bounce off their opening lows as the risk premium on french debt falls to the lowest level since mid-june. boeing agrees to plead guilty to misleading safety regulators on and paying more than $250 million to settle a doj probe into the deadly 737

max crashes, but the victims families state the deal is unfair. france's left-wing group, the new popular front, has claimed a sharp victory in parliamentary election. the far-right rally was expected to win the majority. no party has a majority and france in a hung parliament. one accusing them of handing power to the far left. >> translator: unfortunately, the alliance and the dangerous deals made by emmanuel macron and gabriel attal with groups on the far left tonight, deprive

france. tonight, those deals have thrown france into the far-left jean-luc melenchon. >> several have celebrated the result of the french election. robert is relieved the left and centrist parties could stop a on social media, spain's center left prime minister, pedro sanchez, took to x, saying last week's elections in france and the uk had been a definitive endorsement of progressive policies. and donald tusk said it will offer relief through europe. the eu's commissioner for the economy, paolo gentiloni tweeted vive republic.

and leaders of the main political groups are now set to hold talks on former a coalition without a majority or otherwise a minority government. france could see a techno krat ick government led by a non-partisan prime minister. whatever the outcome, it will be up to emmanuel macron to appoint the new prime minister. in the statement, macron will wait until the structure of the parliament is confirmed before making a decision. french rules mean it cannot hold a repeat election within 12 months. charlotte, of course, having covered this for us. it's been such an interesting time, overall. now it is the wait and see moment because president emmanuel macron has a hard decision to make here as well. >> reporter: and it's going to be very tricky. it was super interesting just

four weeks ago we were standing here after president macron called the surprise snap election after the far-right made some huge gains in the european election. he said the country needs a moment of clarification. in a way, we got it. france came out en masse to vote in high turnout of 67%. the last turnout was 46%. people came out in big numbers to come and vote and they did vote the far-right out. the surprise was that the far-right not only didn't win an absolute majority, but came in third in the results. that was a surprise in the bloc come top in the election. there is still a lot of questions and no group is anywhere near the all magic number of 289 seats which is the absolute majority. the top group, the nfp has 182

seats. far from the absolute majority number. the second group, emmanuel macron's group, which lost seats, but held uppe better at 0 seats. the far-right has made some big gains. they used to have only 89 mps. now they will have more than 140. they are making a lot of wins, but not the wins we were expecting in the polls and not the picture we had in the first round of the parliamentary elections. what now? we don't know. we don't know who could be prime minister. the parties will have to discuss among themselves. can they be centrist alliance? what we heard from jean-luc melenchon, the far left president, who said he would absolutely not negotiate with president macron's party. other voices were moderate, particularly the socialists saying we need to come up with a solution or we cannot govern the country. we need to see if and when a solution comes on the table.

at the moment, prime minister gabriel attal will put his resignation to the president. you have big events in france. in two and a half weeks, you have the olympics starting here. we will stand by here. will the centrist parties be able to reinvent the way we do french possible plitics? this is aw wait and see. the voters do not want a far right, but a new way of doing politics. >> charlotte, let's say there. let's bring in antonio barroso, the managing director of teneo. we have seen this over a number of years, but this has resonated with supporters. just how big will the far-left be in the coalition of the nfp?

>> it clearly, they came first in the election. make no mistake, they came first in the election because people show up to vote against the national rally. it is not about the endorsement, but it is about fear. so, i think nfp is stronger, but they are divided. this election has produced basically -- it has helped avoid two extreme outcomes. it will not be a government led by the national rally, but jean-luc melenchon will not be the next prime minister of france. centrist parties will not allow jean-luc melenchon to become the next prime minister. >> is it fair to say we have a b bold landscape because they are finally regrouping? the centrist were not wiped out.

a descencent showing over the weekend. the far-right may be able to convince voters it is not a scary prospect by 2027. am i right by saying what happens next is consequential to what happens in 2027? >> absolutely. the election has not clarified anything like president emmanuel macron wanted to do. you have a national rally which is the big loser of the election because they were aiming for absolute majority and they came in third. that doesn't mean they are gone. if you look at the percentages, it is the largest party at 32% of the vote. i think the key issue is what is the national rally and marine le pen particularly, can they convince voters? there is one clear lesson from this election that there are a lot of voters in france that are still scared of the national

rally. the campaign has not helped to dispel those fears. >> reporter: antonio, it does feel like this kind of bad result for the far right and they had made gains. the result they were hoping to get was a moment of reprieve and what is at stake is the centrist parties to get their act together and be able to work together? a gridlock seems to just potentially create more further ground for a far-right vote before the 2027 election? >> absolutely. i agree with you. it is up to the centrist parties to prove they can work together and provide some sort of alternative to the kind of governing mode that are we were seeing in the past. in the sense we have -- it is interesting that yesterday, you watched french television and everybody was saying we need to look more like belgium or germany and develop the

coalition. moments later, politicians were shouting at each other. i think something fundamental has to change in french politics to work together to form a government. otherwise, the prospect of marine le pen winning in 2027, may become material. >> reporter: do you think they will be able to work together? it seems like gridlock would be a terrible ending to the snap election there. can they work together? can france learn the tradition of coalition and a key issue would be can the left bloc name a central figure as potential prime minister? >> so, look, i think the new popular front might be able to do, but it will be very difficult because the procedures are entrenched within the coalition. that figure will have to be really one because otherwise that new prime minister will

have no chance to survive. they just don't have the numbers. i'm very skeptical that you may have a smooth process of government formation and that government might last in the long term because there is one thing here. the national assembly cannot be dissolved within a year, but part of us may be thinking maybe i should not give away too much because then in a year, we might have a new election. why would i sacrifice my position just to get through the elections. i am not very optimistic of the dual solution being found. >> if we don't have a durable solution here, what does this mean for the broad eveer contex? does france become a more unreliable partner, particularly in the eu context? >> that's an excellent question. i think the margin of maneuver

of macron is restrained by the fact that you have an unstable coalition in government, but, you know, i'm pessimistic on the government and more optimistic given that let's think about the main scenario we were considering. we were considering a quad with the national rally and macron. both of them who have wildly different policy preferences with europe and foreign affairs and ukraine and so on and so forth. now you have a government that is headed by the center left, let's say, the differences in policies in europe and ukraine are the same. at least, you have some comparisons there. with macron, you have better alternative scenario than a week ago. >> very interesting. who stands to gain the most then from the possible instability in french politics particularly the

next three years with the election called after 12 months as well? >> that said, i think the national rally could benefit because marine le pen could portray herself as the alternative or good-sense candidate, so to speak, that can guarantee a little bit of c coherence and stability. this is the close of the right-wing has been to power. when you look at it, gabriel attal was exposed to difficult questions and he struggled to answer them. then the national rally has enabled to recruit competent mps and let's say mps that are not controversial and might be able to scare voters farther down the line. if the national rally wants to exploit the current situation,

it has to do a lot of work. >> this is such an interesting permutation to unpack and unravel. antonio, thank you for your time. antonio barroso at teneo. and charlotte joining us as well for the conversation. coming up on the show, u.s. president joe biden faces more calls to drop out of the 2024 race. more details are next.

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♪ another check in on these market mipicture. we start off the day with mixed gains. we sueee the negativity. that is not the case two hours after the open. we reversed the losses and moved into the green particularly in the cac 40 in france following on from the second round then of r r runoff elections that happened yesterday pointing to the left-wing victory on that side. it is not an outright majority.

the cac 40 is .80%. on to the forex market. 108.40 is where you are seeing things flat across the line. having seen that significant weakness once the market open with the strengthening in the euro come back. what are the ramifications long term is with ahat we are waitin see. 10 108.40 is the euro-dollar. on the yield curve, we have seen strengthening in the yields moving higher on that front. question marks had been asked around the risk premium around the board having moved to the high since 2012. you are seeing the ten-year out at 3.22. the two-year note at 3.13 is where we are seeing it right now. karen. thank you, arabile. german economy minister habeck said the debt break had been held so far because the country

did not achieve its defense spending goals. he went on to say the financial situation did not fit with the security situation in germany. new uk chancellor rachel reeves is expected to say the uk government will take the difficult decisions over a national mission to create growth. reeves is expecting to announce a loosening of planning and pledge to fix the foundations of the uk economy. new uk prime minister keir starmer chaired his first cabinet meeting since the election last saturday. he said it gave his party a clear mandate. >> as the dust settles on thursday's result, what is becoming clear, for all to see is the mood of the nation and country and what is expected of us and the mandate that we have to deliver change.

it's a mandate not just to govern, although it is certainly that, but it is a mandate that has put trust in us to change the country and to deliver and it's a mandate to do politics differently. four more u.s. democrats in congress told their lawmaker colleagues that they believe president joe biden to step aside to allow someone else to be the nominee for president. that is according to multiple people on the call talking to nbc. all four lawmakers hold top positions on key committees and bring the number of democrats in congress who have called for biden to reconsider his bid for president to nearly a dozen. brie jackson joining us now from washington, d.c. with the latest. brie, certainly the pressure growing here on president joe biden. >> reporter: that's right. we know that democrats are planning to meet today. lawmakers do return to capitol hill. during that phone call sunday, as you mentioned, four more

democrats in congress, told their colleagues they believe president biden should step aside and others in tight races are wondering if they should distance themselves from the president for the vote this november. all this over growing calls for the 81-year-old to step aside and others are standing behind him. while facing the pressure to prove himself, president biden campaigned in pennsylvania on sunday and seeking to fight off criticism over the chances to win re-election. he insists he is staying in the fight for the white house while members of his own party, have their doubts. the biden campaign is also working to convince the public that he's capable of leading the country for four more years. >> brie, one things for sure as we head to august and the dnc, there is time to change candidates, isn't there?

>> reporter: there is still time to change candidates, but, of course, this is something that president biden would need to lead the charge in this and step aside in order for that to happen. what we have been hearing from a lot of top democrats, they believe president biden should stay in the race. we heard extra fthat from pelos and jim clyburn. we heard that from others in the party. the president has just over a month to really try to secure or regain confidence, i should say, within the democratic party heading into the democratic national convention in chicago. >> brie, thank you very much for bringing us the latest on political situation in washington. brie jackson from cnbc. we are seeing a genuine change around french stocks. they started the day weaker and

now climbing to the top of the boards and bouncing .8%. the dax is bouncing. oddly, the recovery taking place as the markets have been more comfortable with the wash-up of the second round of elections in france. lvmh and kering, this may be linked to the cost cutting at burberry. it is all over concerns over left-wing coalition could mean, and including the left for the french spending and if there is any movement on the wealth tax. no word on the policy to progress. you can see some of the other big names, the direction improved for those and the banks have been sold off aggressively after macron dissolved

parliament. it has been a recovery trade and that is now continuing in session today. the big question for us has been just because we had confidence in the short term, is the medium term moving for the french politics? >> that is playing into a little bit of concern in some of these stocks as you can tell those have come off those lows significantly today. is that going to be a sustained sense of positivity throughout not just today, but the rest of the week then as more clarity comes through and who the next prime minister is and all those permutations we are certainly still watching out for. >> that's all for today's show. i'm karen with arabile here in london. thank you to charlotte and silvia in paris with our special coverage. stay with the anl.chne "worldwide exchange" is up next.

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it is 5:00 a.m. here at cnbc global headquarters. i'm frank holland and here is your "five@5." breaking records. stocks moving into a new trading week at an all-time high. futures this morning under pressure. breaking this morning. boeing agreeing to a criminal guilty plea and $200 million fine over the handling of the deadly 737 max crashes. bracing for beryl. oil companies and residents getting ready for the full force of the storm. making landfall in texas