confronting today's very real and very vicious threats. donald trump also condemns the u.s. intelligence leaks in the manchester attack after uk prime minister theresa may raises her dissatisfaction in a brief chat at the nato meeting. sterling hitting a two-week low against the u.s. tlar adollar a two-month low after the party sees its lead reduced further in the election poll. good morning. glad you're with us once again on this friday morning. it's the end of the week. it is the friday before a long bank holiday.

many european markets are taking a bridge day. volumes once again today are somewhat lower. we are seeing outperformance in the ftse 200. this has to do with the drop of sterling. this is on the back of the latest poll showing the lead of the conservatives against the stories down to just 5%. the cac 40 off by 0.4%. let's get back to the big story. our headline today, that is, of course, the oil story. oil prices continue to drop, that's having a negative impact on the oil stocks across europe. bp off by just a tad, but italy off by 1%. crude prices continue to slide after tumbling nearly 5%, that's following opec and other major oil producers decision not to increase production cuts. the oil producers merely agreed to extend existing production caps through march of 2018, but

kept levels steady. steve joins us once again live from vienna. i guess that was a fairly underwhelming meeting when it comes to market expectations. >> the market has a lot of ideas, and i likened it all morning to an activist investor verses a long-term shareholder. the market wants something now. it wants its adrenaline rush. opec turned around and said we have a long-term strategy, we have a historic strategy which you guys all liked sick montx m ago and we're sticking with it. when we fell from about 52 bucks, 53 bucks on brent to 47, they started using some of their ammo they were going to use at this meeting early and started getting out there there would be a nine-month extension. by the time we got to the meeting yesterday, market wanted more, deeper cuts, something to sustain its adrenaline. and it didn't get it. i think the market is in a bit

of a wobble. today prices are better, just a little bit. they could come off again when the u.s. starting trading aggressively. they decided they have a strategy that will over q2, q3, q4 that will drain the market of excess oil. they were saying yesterday they think they could do it in six months. this is what the saudi oil minister told me. they have gone for nine months because they think the first quarter of 2018 is going to be weak demand any way. i did speak to the saudi oil minister, the architect of the action of these 24 nations, it's not just opec, i said what if the price does fall? will you start reacting to that price coming off and cut deeper? let's listen in. >> price is not the key indicator that i'm looking at. we're looking at inventories. inventories ultimately will drive other indicators, including investment, including

price, including stocks of companies, and operators as well as service companies. so if we focus on the fundamentals that we can control, the market will move in the right direction. >> let's be very clear, they think they will get the market from oversupply to deficit by doing this strategy. they think they will get the market from multi-year highs, record levels in some products, and get that down to five-year averages, which means take iing off. opec put their own inventories into the first quarter as well which douses some of the effect. there has been some lack of compliance from some such as the iraqis and uae, but they have had 102% compliance in the most recent period. so they think in the heavy demand period of the latter part of q2 and 3q and 4q.

there are three big x factors. one, will compliance wane. two, will shale fill the gap. three, what will happen to demand? >> let's pick up these points with the head of commodities research from bank of america merrill lynch. let's pick up on compliance. if oil prices do move higher on the back of this nine-month extension, at what point do you think non-opec producers, like russia for example, drop off when it comes to compliance? >> it's true what steve said. compliance has been surprisingly strong. we have never seen an opec deal with such strong commitment, real commitment. the interesting thing is the market this time around doesn't want to listen to opec anymore. opec completely lost grip on the market in terms of rhetoric. they want to see action. it is true the actions have been positive. we do believe the market will go

into a steep deficit especially in the third quarter, which will be unseasonal. we do believe inventories will come down significantly during the course of the year. it should bring a shift in the structure, which by the way is what they're really targeting. they want to have higher spot prices than forward prices to penalize forward sellers. we do think the market will rally on the back of that. is compliance going to drop? it probably will. if we go from 100% to 90%, the real worry we have is libya and nigeria. compliance -- opec failed to bring inventories down in the first quarter when libya and nigeria had -- saw disappointing production levels. what will happen now that these two countries come back. >> sure. steve? >> i hear your questions over

nigeria and libya. al al-falih was asked about this. he said we're throwing these countries a bone, we're giving them slack, but the other two countries, like the relationship between saudi and russia. they're talking about trust. i think the body language between mr. novak and al falih is striking. technologically, fighting isis, in terms of pivot and who your allies will be, and just a pure trust level, there's a shift between russia and saudi. are you picking up on that? if so, do you think it could be significant for the relationship between these two key suppliers? >> we are picking up on that. it was a historic agreement in the first place that saudi and russia came together and hammered out such a big deal. we do see there is much more of a reproachment.

we also on the other hand see the fact that russia has a presidential election in march next year which is likely why they were only able to agree to a nine-month extension at this point and russia has a huge amount of greenfield production coming into the market. that will make it more difficult for russia to manage further production cuts if the deal needed to be extended more and beyond the presidential election. >> i'm glad you picked up on that point. it's something i thought yesterday. isn't it interesting you have the election of the president on the 18th of march and they don't want add ripples to what should be a smooth process. so the markets also want something today, but they are also looking ahead to the end of march next year as well, when as you quite rightly say, discipline could be interesting. it could all break down. you could see countries really

trying to pour oil back on the market because they are under so much pressure. they have said jmmc could elongate, it could make new recommendations, it's meeting every other month. between now and the end of march do you think they will tweak the strategy and potentially cut deeper? >> it's very, very difficult for them to cut deeper. what happens if opec was to cut production now? you would of course get a price reaction. at the same time you would get a huge, huge reaction from shale. we have to remember that the shale cost curve is flat at the point we're in now. if you get a bit of a price acceleration, you will get a very large excacceleration in se production. remember also that opec plus russia has lost market share. this is likely to be a permanent loss in market share. a permanent increase in opec's spare capacity, which is bearish

for the elongated oil prices. it's difficult for opec to cut deeper. at the same time it's difficult for them to go back to a market share war. their fiscal situation is so tight. fx reserves are running down so quickly. saudi still has a 12% gdp budget deficit this year at our expe expected average brent price of $54 a barrel. to us, all they can do is extend, pretend and hope demand will come back. that is clearly also a big issue for them in the first quarter, demand has been so disappointingly weak. you mentioned the cost curve of u.s. producers. one interesting note talked about the fact that maybe there's a misunderstanding between the saudis and the u.s. the saudis seem to think cost inflation is hitting the cost curve of the u.s. producers. the note was saying this is not the point. >> that's the million dollar question, we spend a lot of time

thinking about that, talking about that internally, trying to understand this. clearly we do know costs are going up. we do know that. if you look at the daily ric rate which has gone from 15,000 to 17,000, and it will continue to go up. there's other pockets of service cost inflation. labor is quite tight. the issue is efficiencies are also continuing to increase. that's offsetting some of this cost inflation. we believe costs overall will go up, but not by the 20%, 30% that people are touting. it will probably be more muted at 10%, 15%. some of the mock kpockets of these cost pressures will get fixed. people will come back into the market and we may also see

availability of mine sand go up later this year. yes, there will be kostin flac t cost inflation, but probably not that much. >> regardless of how cautious they were about the nine-month extension, about how it's working well, that is almost unprecedented. even if they always agree at the end of the day, you see a lot of contentions from the iranians and on the basis of a saudi policy. how long will iran and iraq who have enormous reserves, about p 300 barrels between them in the ground, because they are both desperate to grow the reserves by several million barrels a day. >> again. what really brought about the opec deal on december 8th last year was an agreement between saudi and iraq.

the fact that iraq had massive funding pressures through summer last year and finally after the agreement they were able to go into the market and raise -- find themselves externally. we think iraq will stay on the line for now. they do need to see higher prices. but over the long-term it will be difficult. in particular i will say for iran. iran will be increasing production over the course of 2018. nigeria and libya will be increasing production. that alone is probably something like 300,000 barrels a day off of supply increase. it will be really difficult to manage this exit strategy. but to us, you know, a return to a full blown market share war doesn't make sense. at the same time to cut production more aggressively is also difficult. extend and pretend. >> that's a very good point. extend and pretend, almost

sounds like a central bank. you talk about exit strategies and extend and pretend. sabina, thank you very much. also want to thank steve sedgwick, of course who hopefully got more out of this opec meeting than just pastries and the wienerschnitzel. thank you very much, steve. what i want to show you is the ftse 100 in the uk, currently up by 0.2%. there you go. 7,533. easily taking out the 7,500 level once again. and it's hit that fresh high this morning on the back of the poll showing that there's a further tightening in the election polls in favor of labor. conservatives lead is only 5 points. that's obviously putting a lot of pressure on the currency. e-mail the show, streetsignseurope@cnbc.com. you can find us on twitter, cnbc

and tweet me at @carolincnbc. the tranquillity of the low ke location belies the uncertainty of the location of the meeting of the g-7 7. we head out to this beautiful spot after the break. cdw implemented dell poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. so nobody wants coffee?! hey, can i get a couple copies? enhanced mobility by dell. i.t. orchestration by cdw.

the future isn't silver suits anit's right now.s, think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute.

and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. . welcome back to the show. let's take you straight to sicily where donald dusk and jean-claude juncker are about to deliver a press conference. let's listen in. >> our role is to do everything to maintain the university of the g-7 on all fronts. most importantly, university needs to be maintained when it comes to defending the rules-based international order.

each day we are confronted with these strategic global problems that pose a threat to peace and security in europe, in asia, and in the middle east. from the war in syria and russian aggression in ukraine to nuclear and ballistic missile tests in north korea and land reclamation in the south china sea. if our group is not determined and united enough, the situation in the world can really get out of hand. i expect that the g-7 will demonstrate unity regarding the conflict in ukraine. we fully support ukraine's independence, territory and sovereignty. a solution to this conflict can only be reached with the full implement of the agreement. since our last g-7 summit in japan, we have not seen anything that would justify a change in

our sanctions policy towards russia. therefore i will appeal to the other g-7 leaders to reconfirm this policy. the g-7 should also remain united when it comes to ending the brutality in syria. we should be ready to increase our efforts to defeat terrorism in syria and to find a political settlement. a special responsibility rests on the shoulders of those who, like iran and russia, have become involved in the crisis and cooperate with the assad regime. instead of wasting time, they should use their influence to enact a cease-fire, stop the use of chemical weapons, and ensure safe and immediate humanitarian access to all the people in need. finally, let me say that we also

need g-7 university in managing crisis. this is a global challenge but also in sicily a local problem. it was to keep the current level in addressing this crisis. whether it will succeed remains an open question. thank you. >> thank you. >> now to the president of the european commission, jean-claude juncker. >> yes. i'm happy to be here. i'm happy to be here in taormina for this g-7 summit. i would like to thank president gentiloni for his hospitality.

we will meet in a few moments from now, and there are four new leaders around the table. so, we are only stable on the international -- >> we are the veterans. >> we are veterans, but we are not old. so it will be very interesting to notice this in a better way, though we have seen some of them yesterday. and today. we stand up here as we are always doing for our shared values of freedom, democracy, rule of law and respect for human rights. we do believe, as europeans, in open societies, and we are always seeking multilateral

solutions. we want to build bridges, not walls. but we have to understand those here and elsewhere who do not see how globalization works for them. those 45% of europeans who do think that globalization is a threat, and not an opportunity. who think that it's an opportunity if dealt with in a proper way. we have to put fairness at the heart of everything the g-7 and our partners do. that's mainly related to trade and to all trade issues. >> all right. that's jean-claude juncker, the eu commission president speaking there at the g-7 in sicily. this time he chose to speak in english, not in french. let's get out to willem who joins us from the g-7 in taormina. mr. tusk was saying this is one of the most challenging g-7 in

years. though with four new members around the table it's a challenging makeup to address some of those headwinds. >> the italian motto for this meeting in sicily is about rebuilding the found dag ations renewed trust that is focused on these new relationships for some of these leaders who have not appeared at a g-7 meeting before. jean-claude juncker wants a rules based order to be a priority that seems to be a vailed remark about the u.s. we heard about ukraine territorial integrity, the need for the russians to adhere to the minsk agreement. talking about russian sanctions, he said there is no reason to look at any changes to international sanctions on

russia. last night on air force one traveling down here, president trump's economic adviser was asked whether the u.s. was of agreement with that, and essentially said that president trump is looking at sanctions on russia. he would not give a specific answer to that. we hear about the migration crisis. that's close to the italian leader's heart in sicily. this is ground zero for that european migration crisis. we've seen tens of thousands migrating from north africa and landing on shores here. that will be the focus of conversation for the next several days. >> they say you can tell a lot about a man through his handshake but the u.s. president seems to offer few clues with a series of unpredictable handshake photo-opes. as we go to break, look at some of donald trump's most memorable palm-pressing moments. ♪ ♪ hello, hello, hello, hello

♪ hello, hello, hello, hello, hello ♪ ♪ hello, hello, hello, hello, hello, hello ♪

hello. welcome to "street signs." i'm carolin roth. crude bounces back from the worst losses in three weeks but oil stocks still drag the markets lower. the saudi energy minister tells cnbc price is not the problem. >> we focus on the fundamentals that we can control. the market will move in the right direction. pay up. that's the message from president trump telling his nato leaders to increase defense spending and accusing them of owing massive sums to the united states and the alliance. >> 2% is the bear minimum for confronting today's very real and very vicious threats. >> donald trump also condemns the u.s. intelligence leaks in the manchester attacks after theresa may raises her

dissatisfaction. and the uk conservative party sees its lead reduced even further in the latest election poll. good morning. once again, if you're just tuning in, let's show you what u.s. futures are looking at. s&p 500 seen up by just a tad, up by 1.63 points. the dow off by 2. the nasdaq set to gain 4 points. the dow ended the day with just 33 points away from its record close. by in large what you saw yesterday is that markets did very much shrug off the drop in oil prices. yes, the energy sector was down, but markets still clinging on to those record highs. a bit of a different picture in europe. we are seeing the ftse 1 00 outperforming. this is thanks to the drop in sterling. we'll get to that story in a

second. the dax is off by a half of a percent. the cac 40 lower to the tune of 0.7%. oil and gas stocks weighing on these indices. let's get back to the fx story and you'll see pound sterling is off by a half of a percent after in the uk the labour party reduced theresa may's lead to 5 points. according to latest poll, the first to be published since the attack in manchester, the labour party has gained three points and is in second place with 38%. another look at pound sterling, 128.76 the current handle for cable. let's turn our attention to the u.s. san francisco fed president john williams said trump's fiscal policy also have little impact on the u.s. economy. williams added that any fiscal measures in the coming months will not matter much to monetary

policy. st. louis fed president bullard said the impact of a balance sheet reduction on long-term yields will be minimal. bullard also criticized the fed's policy rate path and warned markets have a more dovish view. we are joined around the desk. you agree with what mr. bullard is saying. why? >> it is clear the market is more dovish than the fed for rates. the market is pricing in june more or less as a done deal and as advertised in the minutes. at best 50/50 for another rate hike the rest of this year, and then one more in 2018. the fed itself is is saying we'll be at 2.25, 2.5%. so there's a big disconnect starting to build up. >> to what extent do you think

that disconnect will close? will the fed come down with its fed futures forecast or will the market adjust to the upside? >> during the course of 2016 we actually saw this sort of fed converge to the market. our own assessment is the market is too complacent. the fed wants to tighten policy. one interesting thing that has happened this year is since the fed increased interest rates in december and march, financial conditions in the united states have gotten easier. so the markets are saying go on. we don't mind. we don't care. keep on going. we don't think you will be raising rates as far as you think. the fed is saying the market is perfectly relaxed about this, so we'll keep raising rates. one of those two things will come into conflict. we think it's more the market than the fed over the course of

the year and next. >> you think poorer than expected data for the u.s. in the first quarter including the gdp, and we'll see another revision today, you think that was an anberration and short-tem yields will rise. >> that's correct. the quarterly numbers are volatile. the bottom line is that the u.s. economy is growing at about 2%. it's at full employment. and i wouldn't agree actually with john williams, the san francisco fed saying that fiscal policies won't matter. sure, it takes time for them to feed through, in the near-term they don't matter. with an economy at full employment, if we do get substantial tax cuts going into 2018, that is going to generate inflation pressure. the fed will respond to that. >> let's talk about europe. we've seen massive inflows into european equities, has that been mirrored by the credit side? >> we have certainly seen flows coming into european credit. i think more generally in terms

of euro assets, because just as we had some sort of trump reflation trade which has disappointed, usually europe and emerging markets have become the epicenter of that. people want exposure to your assets. this in contrast to the fed will be very cautious in terms of hyper cautious if you like in terms of drawing stimulus policies. >> yet at some point the ecb will stop supporting the credit market. the boe is doing that. at some point the boe will taper overall. what will that mean for the european credit markets? how long can this party last. is it the matter of a few more months? >> that's a good question. a number of investors in the european credit market have taken comfort from the experience of the sterling corporate bond boost as you highlight. the bank of england stopped buying sterling corporate bonds,

and the market rallied on the back of that. so actually it's fine. we're a bit less sanguine about that. the biggest issue is what will happen with tapering to sovereign peripheral spreads. if we saw sovereign peripheral spreads start to move higher, that's an if, but if they did, that would have spillover effects to the corporate bond market. >> in the meantime, what's your favorite trade? >> actually not in europe, it's emerging markets. we like emerging markets. we have been increasing exposure to emerging market and local currency. with the selloff we've had around brazil, adding to brazilian rates. >> thank you very much for that. david rightly from bluebay. lucas papademo is being

treated for injury after a letter exploded in his car. grease has had a history of small scale attacks against politicians and business leaders. a guerrilla group is expected to be behind the attack after authorities discovered a batch of letter bombs sent to public figures in march. embattled brazilian president michelle timer reversed a decision to deploy troops on to the streets. 17 hours after sending in the army, temer revoked the ruling after severe criticism. temer is under pressure to resign following corruption allegations. the fbi believes that president trump's son-in-law, jared kushner, has significant information relevant to the investigation into links between russia and the trump presidential campaign. according to an nbc report, c b

kushn kushner, one of trump's senior advisers, is not in the same category as michael flynn or paul manafort who were considered subjects of the investigation. a u.s. federal appeals court upheld a lower court ruling blocking the trump administration from restricting travel from six muslim majority countries. the fourth circuit ruling said it was unconvinced that the block "has more to do with national security than it does with effectuating the president's proposed muslim ban." former u.s. president barack obama has met with german chancellor angela merkel in berlin for the first time since leaving office. speaking at the brandenburg gate obama said the chancellor has been one of his favorite partners throughout his presiden presidency. in a veiled reference, he said programs are essential for national security.

if there's disruptions in these countries, conflict, war, poverty, in this new world that we live in, we can't isolate ourselves. we can't hide behind a wall. we're about to go to break. we have plenty more great interviews for you coming up throughout the morning. head to the facebook page to catch our exclusive life hacks live interview with bill winters. that's today at 11:00 cet.

chinese automakers are hoping to sell their cars in the united states despite facing numerous challenges including poor image, fierce competition and unknown names. eunice yoon has the full report. >> reporter: if the chinese company behind this car gets its

way, i will soon see this suv on american roads. state-run gac motor believes vehicles like this have all that it takes to win over u.s. drivers. >> depending on your politics, the brand name could be a problem or reason to buy. this car is a trumpchi. >> we called it in trumpchi in 2010. we had no idea that seven years late their it would sound like president trump. he says his ambitions for the u.s. is huge. trump chi was the fastest growing chinese car brand last year and won high marks for quality, given the automaker confidence that it could believe it would beat the odds and do what no other chinese car brand has been able to achieve, conquer the u.s. american drivers are like chinese drivers, he says.

they both like big sizes, big spaces, and luxury interior. the plan is to export cars like this one from trumpchi's factories in china. yu is considering partnering with a u.s. automaker locally and sees potential building his own american factory don't line. despite the anti-china rhetoric out of the white house, yu says trumpchi is in it for the win when it starts selling there in 2019. if we can succeed in the u.s. market, we can succeed anywhere in the world. is the trump name a help or hindrance? >> it's hard to say, he says. we're still trying to figure that out. eunice yoon, cnbc business news. >> trumpchi, i guess a lot of americans wouldn't buy the car based on the name. the other half would. amazon's first new york city book store opened its doors. morgan brennan has more on how the online giant could shake up

the paperback world. >> reporter: they have brought one back. as you just mentioned, this is a brand-new book store from amazon. it's located in the same retail complex that used to house a borders. i have been hanging out here all day. i will admit i have purchased some books, but this is the first of two planned stores in new york city. it is the seventh brick-and-mortar location for amazon in the u.s. right now. it officially opened its doors this morning. while admittedly a lot of media, amazon staff and book publishers here check this out today, the foot traffic in general has been brisk, particularly at lunch time. we had lines out the door, down the hallway because this store was at full capacity. amazon did start as an online book store. this is the amazon take on the brick-and-mortar experience. you have these displays curated with data, with amazon's 20 years of online data. you have the front-facing books.

that means less inventory. integration of the amazon app, and not surprisingly generally lower prices for prime members. that last point is the reason analysts see this as the latest strategy from amazon to grow the prime base. that being said, amazon books vp jennifer cass says the reason the company is doing this is because customers have been requesting it. >> the easiest thing to do if you want to buy online is get out your phone, go on the computer and buy it. i think we'll listen to customers and see what they want. right now they love to be in an environment. where they have physical books. >> come look at this. it's not just books. you have an electronics section as well where you have amazon devices like echo. the whole idea here is to be hands-on. not different from the apple store. not surprisingly amazon not disclosing its long-term strategy for brick-and-mortar. but cass does says the company

is on track to have 13 book stores by year's end. >> interesting concept. russia's state-owned postal service is reportedly the latest victim of the wanna cry ransomeware cyberattack. computers were down contradicting claims by the postal service who said terminals were shut off as a precaution. shares in cybersecurity firm sofos has risen 30% since the cyberattack. we have alex gund, a fund manager. he is still popular on the stock. i would argue time to take profits in sophos after that rally. >> the shares can stale go higher for two reasons. one is the future trend of cybersecurity. two is the fundamentals. if we take the future trend, the

reality is if you talk to chief information officers at companies, only about 7% of them actually believe their i.t. is robust enough to withstand attacks. if you take idc data, about $1 billion needs to be spent every year for the next four years on enhancing i.t. systems. you look at the range of threats, they're getting more sophisticated every single day, 1 million new malweaare attacks are rising. when it comes to sophos, why i do think the shares can go higher? they have a niche area in the market. they have an off the shelf product, they have end product, so your phones and fire walls are being protected in the network. the figures they reported were

strong. they are growing the margins by 70 to 100 basis points for the next two, three years, i think you can get to a evaluation in the 500 to 600p range for this business. >> currently at 421. another stock, intuitive surgical, a robotic surgery company. in 2013 subject to a federal probe because of safety issues, but now well past that. you like the stock. why? r >> again, another future trend where robotic surgery has become a much more efficient way of performing surgical operations on patients, everything from urology to gynecology to hernia operations it improves the return on invested capital for hospital and having one of these machines. the great thing about intuitive surgical, they were early to the game. they started in '95, have grown

organically, and now have a virtual monopoly in the market. they are expanding their range, broadening the available set of products, number of different procedures that can be done. then you look at the fundamentals once again. they raised guidance once this year. growth this year will run 12% to 14% on a conservative basis. long-term, still an exciting opportunity. only about 25% of hospitals in the u.s., 10% of hospitals globally have robots. that figure has a huge runway to go. >> yet they're facing more competition from the like of medtronics. that will eat their lunch, no? >> the competition, i would characterize it as probably being bark worse than bite in the sense that competition has been around for some time. intuitive no doubt knows competition is coming in regulatory barriers are high. the reality, probably 2019 or 2020 for any competitor is really to launch in the market. if i'm a hospital, i'm worrying

about patients lives. will i go for the new entrant or for the market leader? the proven operator with a very well established product that's been endorsed very strongly by a lot of medical academics. >> y yes, you do worry about patients lives and about costs. from a cost perspective who is more competitive? >> we don't know the pricing strategy for the new entrants yet, but intuitive surgical have a strong installed base. 70% of revenues are recurring from the services. so the line of sight, the visibility is very good. they're sitting on a net cash balance. so my hunch is they will be well equipped to handle competition that comes. >> staying in the healthcare sector, you like fresenuis medical care. is this a play on healthcare in the u.s.? >> i think it's a play on the future trend of simply demographics and obesity.

whilst the business has a strong u.s. bias, a lot of the incremental growth we think will come from outside the u.s., particularly europe, japan, emerging markets. as people get older, they tend to get less healthy, there is a huge obesity epidemic occurring everywhere. world health organization says 50% of the world will be overweight or obese by 2050. high correlation between obesity and kidney disease. fresenius is well placed in that respect. shares have not been a particularly exciting performer, but we think looking ahead there's some attractive things coming up. in two weeks time they're doing an investor day, the first in three, four years at their head quarters in frankfurt. we'll probably get medium term targets and acceleration of cost cutting programs. when you look at this business from a valuation perspective we see good upside potential. >> disclosure, you don't own any

of these stocks personally? >> not personally but they're all if the future trends fund. >> have a great holiday weekend. alex gunz from heptagon capital. let's show you what european equity markets are doing. the ftse 100 seeing a slight outperformance. the xetra dax is down by 0.4%. lower volumes in these markets across europe as we're seeing a lot of countries still on holiday. the cac 40 is off by 0.75%. also want to show you what's happening with oil prices. we're seeing a bit of a bounce back after yesterday's big selling pressure. the bounce back has abated somewhat. wti crude at 48.94. brent crude at 51.57, up by 0.2% after seeing the biggest drop in three weeks yesterday. quick look at u.s. futures. we are seeing a mixed picture here. the s&p 500 seen up by less than

2 points. dow jones seen off by 10. nasdaq seen opening higher to the tune of 1.5 points after we saw a record close for the s&p and nasdaq yesterday, while the dow ended the day within 33 points of its record close. by in large these markets did shrug off the declines we saw in oil. the show may be drawing to a close, do not fear, we have plenty more great interviews coming up throughout the morning. head to cnbc international's facebook page to catch our interview with bill winters coming up in a few minutes. that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. the future isn't silver suits and houses on mars,

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>> good morning. markets now, oil prices swinging wildly after opec says it will extend production cuts. we're live from vienna with the news. the g7 summit, president trump continues his marathon meeting with world leaders in italy today. and the nasdaq closing at a record high. and there's one stock that could give it more of a boost today. it's friday, may 26, 2017, "worldwide exchange" begins now.