welcome to "street signs." i'm joumanna bercetche these are your headlines european stocks begin the quarter on a low note but not as bad as the ugly selloff on wall street. skyward for sky shares after fox offers new concessions in its takeover bid murdoch says sky news could become a separate company in a move designed to ease government fears about independence. and europe's chipmakers selloff on reports that apple

plans to axe the intel processor. and amazon turns in its worst performance in more than two years as president trump steps up his criticism of the company. good morning, everybody. it is the first day back for europe the first day of the quarter as well of course we did have a nasty session in u.s. trading in yesterday's trading that was the first day of the quarter as well did not get off on a good foot let's look at the picture for european markets it is not that pretty but not as bad as u.s. markets. we have ftse 100 down 0.7% hovering around that 7,000 mark. key to watch that. this week in the uk we'll be getting a lot of pmi numbers and pmi manufacturing in about a half hour's time we have cac 40 down about 0.6% xetra dax is the underperformer

today down 1%. that is mainly on the back of very weak german retail sales numbers earlier in the morning and we just had the german flash print for manufacturing pmi, both very much underwhelming the picture for europe is weak as far as the trading picture is concerned. let's talk a bit about the technology sector in europe that is what drove the under-performance in u.s. trading yesterday. you can see this morning we have a whole bunch of the semiconductor space and chipmakers down, between 1% and 2% that's on the back of the story and reports that apple was thinking of processing its own microchip in some of its models from 2020 onwards. that impacted intel yesterday. you can see it's having an impact on european tech sectors as well. let's move on to asia. let's see how things are doing

there. the tech-heavy index kospi has done okay in yesterday's trading. around that flat line, down 0.1% nikkei down 0.5% weak session, but then again not as bad as the chinese indices. you can see shanghai is down almost 1%. the shenzhen is down 0.8%. this again was on the back of retaliatory trade fears. another escalation in terms of trade rhetoric between the two sides. china announced tariffs on about $3 billion of u.s. imports that has impacted the chinese equity markets switching on now we will talk about specifically what happened in the u.s. to give you some context, dow was down almost 2% s&p down more than 2%. the tech heavy tesector down 2.% april has been the worst start

for the s&p 500 since the 2.5% decline in 1929. really the u.s. equities are starting off this quarter on very much the back foot the all three of those indices are technically in correction mode have pulled back 10% from the january highs. and both the dow and the s&p are trading below their 200-day moving average many tech analysts will be looking at those two and seeing what the signals will be from here a lot of the signals are pointing bearish let's talk about the tech sector in the u.s actually let's talk specifically about the sectors in the u.s. first. you can see every single one of the sectors did trade in the red in yesterday's session you can see that again the under-performance was led by the tech sector. fi financials were down 2.1% or so.

7 out of 11 of the sectors in the u.s. are technically in correction territory as well here's an interesting one. the only positive sector year-to-date is technology up 0.6%. let's talk about tech and individual stocks what is interesting about the session we had yesterday was that it was a lot of idiosyncratic stories going on we had the trump tweets about amazon and fears about what would happen next and regulation and the u.s. government potentially looking to apply more pressure on amazon and some of their policies when it comes to the postal service as per donald trump's tweets. tesla is citing production concerns we had elon musk's april fools

tweets about the company going bankrupt that wasn't takie inn well and nvidia announcing they will suspend some self-driving tests in vehicles. broadly speaking you can see it is not looking good for the first day of u.s. trading, particularly for the tech sector of course facebook, which is what we've been talking about nonstop for the past week or so is almost down 3%. there you go worries about trade wars and big tech are clouding the close of the first quarter. with bumper earnings expectations, are markets heading for another run or is this the start of a tech unwind? >> it was a sea of red on wall street all 11 sectors in the s&p are in correction mode, they're down 10% or more from recent highs. investors were confused around trade fierce aears and technolos

intel slumped on reports that apple may be using its own in-house chips soon instead of intels the question is is this a big tech unwind? we don't know earnings are expected to grow 20% in the first quarter. that's a big number. to continue along that past for the next year. the earnings outlook is clouded by technology. the overall market is not overvalued but tech is in certain sectors like semiconductors the problem is technology got too big for its breeches tech alone is 20% of the weighting. and the big five, apple, alphabet, microsoft, facebook, amazon together account for 15% of the entire s&p 500. five stocks, tech and financial

earnings in the first quarter are expected to be almost double the rest of the s&p 500. no wonder the market goes into a 'tis tizzy when there's a small threat i'm bob pisani, cnbc business news >> just recapping the importance of the tech sector when it comes to overall s&p trading speaking of u.s. equities, let's look at what the u.s. futures complex does look like this morning when it opens up actually the puck picture today is rosier. the dow up -- no dow opening up about 30 points lower. nothing as dramatic as some of the moves we saw yesterday when all of those indices were down 2% or so >> president trump is continuing to target amazon using his twitter account. the stock sold off sharply as

the president sent multiple tweets criticizing the company on tax payments and its use of the u.s. postal service. amazon accounts for over 6% of the nasdaq's weighting and recent data from bank of america showed it is one of the most crowded long trades with over half the mutual funds owning amazon willem selles joins us on the show today just taking a step back. doesn't appear the first day of trading for the quarter is starting off on the right foot if you look back it has been volatile, rocky indeed what is scary is the change of sentiment. in the beginning of the year people are thinking this will be a bullish year for u.s. stocks and technology somehow people are being forced to re-evaluate that assessment

does that concern you? >> when we wrote our 2018 outlook at the end of last year, we warned of volatility and we thought it would be interest rates and to inflation, which was the cause of the february volatility we did not foresee the facebook issue. i think at this point in time the problem that we have with this volatility is that we have few buyers around, because we -- when you look at sentiment surveys, a lot of people are neutral, and when you look at the bulls minus the bears, it's negative few people are willing to step in here. that's despite the growth picture being solid. so we think april will be the trigger for people to gather confidence again that's when you will have earnings, which should be solid. >> but the tech sector is such

an important sector for u.s. equities arjun joins us as well surprisingly, i don't know if you were listening earlier, tech sector the only sector in the s&p that's still up for the year up 0.7% or so. is that telling you that fundamentally a lot of these companies are still rock solid but we need to navigate this regulation storm >> that's right. if you look in the short-term, there's more pain to come when you add in things like the trade war, you add in also fears of increased regulation if you look longer term, some trends these technology companies are plugging into will continue the rise of mobile. the continued switch to cloud computing and the likes of amazon, internet shopping as well looking at facebook, huge network. they can continue to monetize that if they can keep the users on the platform post what

happened with cambridge analytica. it looks like those trends will still remain intact. >> do you agree with that? do you agree at some point this tech selloff will be a great buying opportunity as long as you pick your names right? >> exactly you're right about long-term and picking. what we call fourth in this revolution has a lot of aspects to it. the platforms may remain more volatile in terms of news flow, but when we look at things you need around the platforms, the logistics, the automation we're seeing >> the cloud >> the cloud, all of those are longer-term trends which means if you have a six-month view, if that's your time horizon, i.t. and tech is still more an overweight for us. >> another question for you then so we've had this big selloff. some people are getting -- a few people say this is the beginning of a bear market the flip side is as you mentioned the fundamentals are

still strong are we in a situation where the tail is waging the dog and the stock market is warning people of what might happen in the next few months and warning the fed not to go too aggressively i tightening >> i think it's a mistake to make that link making the link between strong economic growth leading to inflation and more fed hikes and leading to tighter financial conditions and then the market taking the view that that would be bad for equity markets. that's taking it a step too far. the same thing here about i.t. and technology obviously it is a big part of the market it's also a part of the market that was driving the momentum. there's a lot of quality stock t out there. there's masmall and mid cap stos that are less involved in the

trade issues those are good opportunities with somebody with a six-month view >> again, investors need to be mindful of positioning we were saying amazon is one of the most beloved tech stocks we've seen what happened there similar theme for fixed income we heard about all of these different types of speculative accounts we have had equity selloff because of higher yields, having equity selloff because of tech scares what's the next reason for equities to come off again >> i think they will go up because of the earnings season i think what you're seeing in a lot of those markets that you mentioned, you mentioned the bond market, the u.s. dollar, which has stabilized as well if there is consolidation with valuations becoming a bit more

attractive than before, there will be consolidation in the rally when you have that positive fundamental news. >> we'll talk more about that in a short while. willem and arjun joined us you will be back in about 45 minutes. thanks for that. switching to media news, 21st century fox says it may be willing to separate sky news to satisfy regulators who worry about journalistic independence if rupert murdoch is allowed to take full control of sky they are seeking approval for their takeover of sky. the media firm said it could consider selling the news channel to disney. cn cnbc's parent company comcast also has a bid in for sky.

shares in mediaset opened sharply higher after it reached a content deal with sky's italian unit mediaset could broadcast some of its pay tv content on sky's platform mediaset is losing market share to sky which is the main competitor this could create a possible broader alliance between the to rival companies. and the battle to print brita britain's next pass pord raports on the latest after this break. stay tuned - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to "street signs. some banking news. hsbc agreed to pay 1$100 million to private investors who claim is rigged libor. u.s. court papers show hsbc denied wrong doing but settled to avoid the cost of litigation.

elsewhere deutsche bank is reportedly considering appointing juerg zeltner as its new ceo. deutsche bank's chairman has held talks with zeltner who left ubs last december. and last week ceo john cryan wrote a staff memo saying he's committed to the lender. but lots of noise about what that future will look like for him. china slapped tariffs of up to 25% on dozens of u.s. products ranging from pork to wine the country's ambassador to the u.s. said china would retaliate against any new tariffs imposed with measures of equal strength, value and scale. speaking to cnbc, peter navarro said he did not expect trade tensions with china to

escalate >> i don't think this will be an action response, action response that's not what this should be about. that just leads to escalation spirals. i know the president is committed to an equal playing field. he was elected on the basis of having fair and reciprocal trade particularly with china. the course here will be a course of resoluteness. whelm selles is still with us on the show we have not discussed the possibility of trade wars. while some rhetoric has calmed down the last couple weeks, and many exceptions have been applied as far as the steel tariffs were imposed, the chinese did retaliate. when you think of it from an investment perspective, does it make you re-evaluate your own

pivot to asia theme that you talked about >> trade around the world is still high and strong. that's because the global economy is strong. investors are worried about it so the question is how to position for that really and one idea there is to look at intra-asian trade. this whole belt and road initiative the more there are worries about global trade the more china and investors will look at asian trade. that will continue those links will intensify there's opportunities there. if you look at the chinese economy, it's not affected the pmi is not affected. it was stronger than expected. anything that is local as well, the local demand, the local em consumer, that's another way to manage that volatility that we might continue to see around the trade issues and that concern from investors around that issue. >> i see one thing you have written about as well is your interest in china is also on the back of a future in innovative

china in the sense it's trying to become more of a high-tech economy. we talked a lot about the tech selloff that's occurred in the u.s. are you concerned about names like tencent, baidu, those names that have done very well at this point in the year, do you think that's what happening in the u.s. will spill over to some asian names? >> there is an element of contagion there, which is logical. that's what you tend to see in the market and in the u.s. market as well you see volatility going from one sector to the other without any direct link. one has to realize that many of those platforms in china make 90% to 100% of their money locally. so it shouldn't really be all that affectaffected. what is the link between the two is that idea that valuations were a little bit too high, were frothy that was already a concern at the end of last year and that,

indeed, leads to a bit of volatility indeed the trend of trying to add more value add in manufacturing and technology has a part in there, more broadly as well that's a longer term trend and part of the five-year plan >> given how much is domestic exposed. going back to the last segment, you said fundamentally the u.s., when you think about a forward looking basis, you said earnings will be there. you expect them to be strong over the next six months what is the best way to position now in the u.s.? do you rotate out of growth stocks into value stocks do you rotate away from cyclicals into defensive >> depends on your horizon if you're short term you need to look at quality. if you have a longer term view there's a number of areas that should be positive we would take a cyclical tilt here we would go into capital goods and investment spending in our

view will be strong in the u.s., in part because there's less spare capacity but also because of the tax plan which is incentivizing investment plans banks should be doing well as well on the back of cyclicality. >> willem, thank you very much for joining us cvs is said to cbs is offerk value for viacom leslie moonves would lead the company for at least two years and walmart is eyeing a move into healthcare entering into talks with humana. the possibilities range from expanding partnership to a complete acquisition the retailer has been focused

fighting off the competition posed by amazon and online shopping melrose industries has won shareholder support in a fierce battle for control of gkn in an 8 billion pound hostile takeover deal the uk government had raised concerns about the job security of the 6,000 british workers employed by the aerospace and automotive parts supplier. melrose issued a series of legally binding commitments about gkn's future which includes keeping firm headquarters in britain. regulators will now assess the deal gkn stock is down almost 3% today. down 2.7%. british company de la rue will appear the decision to award gemalto the contract to make new blue national passports.

de la rue says it's own bid was the highest quality and technically most secure. prime minister theresa may announced in december that britain would go back to blue colored passports after brexit. the president files for stormy daniels lawsuit to go bererbratorfo ais instead of a jury details after the break. ♪

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welcome to "street signs." i'm joumanna bercetche these are your headlines european stocks begin the quarter on a low note but not as bad as the ugly selloff on wall street. skyward for sky shares after fox offers new concessions in its takeover bid murdoch tells uk regulators that sky news could become a separate company in a move designed to ease government fears about independence. and europe's chipmakers selloff on reports that apple plans to axe the intel processor in favor of its own

model. and spotify takes the stage. the music streaming company makes its debut today in an unusual listing in an attempt to rewrite the lyrics on a traditional ipo. all right. we've got uk march manufacturing pmi data that has just come out. it's come in at 55.1 versus feb which was reversed to 55 a smidge higher than the feb print. however it is still at a one-year low so you can see that sterling has come up just a fraction on that. pretty much in line with expectations but overall speaking, cable has had a bit of a bumpy ride the

last couple of weeks talking about the uk, let's look at how the ftse index has done obviously today's session down 0 0.8% the overall index is trading about 8%, 8.2%lower for the entirety of the quarter. now it's hovering around the 7,000 mark it was key when we broke through that a couple fridays ago. we seem to be bouncing around that mark. for now we're holding there. overall it doesn't look like it's been a good start to the year at all for the ftse as far as equity index is concerned let's switch and look at fixed income here. the performance of the last quarter or so as well. ten-year yield is currently trading around 2.75. we started off trading at 2.40 at one point we almost touched 3% we reached the high of 2.95. we did sell off 50 basis points, a bit more since then we reversed course on

the year ten-year treasuries about 35 basis points higher than where we started off or about 15% lower if you just look at it on price terms. switching to u.s. dollar u.s. dollar has been on many peoples radars since the beginning of the year. those expectations in january that the dollar would get somewhat of a bid with a more hawkish fed. we have not seen that really on the quarter the dollar index is down 2.5% actually what's interesting is the last couple of months have been pretty range bound. i'm happy to say that the global head of fx strategy from bank of america/merrill lynch joining us to talk all things fx. the greenback has been a surprising underperformer this year most people expected with a more hawkish fed, with the tax cuts that came out of the u.s., the repatriation, that all of these

things would be a boom for the dollar but it has not materialized. why is that the case >> the u.s. debt has been strong the fed has been hawkish fiscal policy stimulus is one we expect to support the dollar, however the dollar weakened this year and it's at relatively weak levels there are two reasons that has kept the dollar from rallying. one is the concerns about trade war, which also sends a signal about uncertainty in other areas of the u.s the second is when we look at flows, we have seen strong dollar selling across the board. it started last year after the french elections, but it seems it has accelerated this year this has kept the dollar from rallying despite the fundamentals justify a much stronger dollar. >> those two justifications that you have given me, do you expect

them to subside and come in quarters where do you think the greenback goes from here >> in the second quarter of this year the dollar will rally we have seen enough of the sector selling, this is unlikely to continue. we have seen real money starting in recent weeks buying the dollar from a short position we expect the u.s. debt to strengthen further there's negative further u.s. debt in the first quarter. most of the impact of the fiscal stimulus is ahead of us. as a trade policy in the u.s., we don't expect extremes we believe they will get a deal with china and they will avoid the worst. together with strong fundamentals and positioning, this should support the dollar in the second quarter. >> are you not concerned that the u.s. administration is adding so much fiscal stimulus at a time when the economy does not need this and this could lead to a big amount of inflation and we may see big

inflationary impulse in the latter half of this year which would not necessarily be a good thing for the greenback. >> that's a good question. the market is focusing on the twin deficits in the u.s., in the long-term this could be negative for the dollar. but in the short-term it adds to the economy. we can see it overheating. we can see higher inflation. and this would suggest a more hawkish fed. fiscal stimulus in an economy that is at full employment in the short-term should be affecting the economy. >> is money moving into euro or where are the places where that currency is being deployed what is interesting is it is not going into the euro. there is a market perception that they have to go back to the euro because they're short this is not true

we have seen it going to yen but also kiwi, emerging markets and other currencies it seems the reserve money jers have decided to gradually diversify away from the dollar >> the euro going into previous ecb meetings there was concern about the strength of the euro and the speed of appreciation. some people are saying the euro could top 1.30. we didn't get there. what do you think the trajectory is from here >> to a large extent the euro/dollar is a euro trade. the euro itself we expect it will remain range bound. the ecb does not want a strong euro but they can't do anything to weaken the euro we are bearish euro/dollar because we're bullish on the dollar the euro core strength will be

happening next year with new policies >> the q1 data is beginning to slow on cable. cable is back to around the 1.40 level. do you think this holds? >> we like sterling, though i would be careful against the dollar because we also like the dollar in the second quarter but we like sterling against euro, against swiss franc. we believe the bank of england, now that we have a transition agreement, will start hiking at a faster pace. the uk debt is relatively good so far in the brexit negotiations we've seen logic prevails so we expect this will continue to be the case >> let's hope logic does prevail. thank you very much for joining us let's take a quick look at u.s. futures and see what the mood is like there we did have a very nasty start to the quarter yesterday

it looks as though things are really going to open around the flat line. nothing too dramatic there dow seen about 20 points lower s&p seen opening up a couple points higher. but i should tell you earlier on in the session the futures were pointing to a much better start. it looks like things are turning a bit. let's keep an eye on that in the next hour or so. president trump is reportedly pushing for a preliminary nafta deal to be struck within two weeks. according to a bloomberg report, the trump administration wants an agreement to be reached ahead of the summit of the americas in peru on april 13th and will host cabinet ministers in washington to achieve a break through a white house official tells cnbc that two weeks may be overly optimistic. the mexican peso and canadian dollar paired losses against the bre greenback on that report. daca, a program which protects undocumented immigrants brought to u.s. children is dead

according to president trump speaking yesterday trump blamed his political opponents for failing to secure a bipartisan deal on the issue. >> the democrats have really let them down. they have really let them down they had this great opportunity. the democrats have really let them down. it's a shame and now people are taking advantage of daca, and that's a shame. it should have never happened. trump's perm lawysonal lawys asked a judge to ask stormy daniels to use arbitration to settle their dispute she is suing trump attorney michael cohen to be released from a flanondisclosure agreeme. daniels' lawyer said the case should be settled in open court. switching back to europe german prosecutors say they decided to file an extradition application for carles

puigdemont he was in self-imposed exile in belgium for almost six months. let's look at european markets. we did look at u.s. futures. you can see that all of those four bourses are trading in the red. xetra dax is down 1.4% or so we did have weak pmi data and weak retail sales out of germany a short while ago. ftse 100 also down 0.8%. similar for cac 40 and ftse mib. coming up. regulators voice concerns as ridesharing company grab buys uber's southeast asia business stay with us

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welcome back to the show the new york stock exchange set the reference price for spotify shares at $132 the music streaming service is doing a direct listing in place of a traditional ipo shares will start trading later today. we were making a few jokes on

whether they would add a potential spotify play list for that >> reporter: when it comes to streaming music subscribers, spotify is the clear leader. it's facing growing competition, a risk factor investors will weigh when it starts trading tuesday. spotify has 157 monthly active listeners and nearly half are paid subscribers nearly double apple music. pandora comes in last. we have 5.5 million paid subscribers. in the guidance released, spotify projected they will grow subscribers to $96 million subscribers this year. >> spotify doesn't have to outperform we're at the early days of the music streaming revolution it doesn't have to be one winner take off >> apple muse sick growing fast. adding 2 million subscribers in about a month noting that half the a billion people visit the app store

weekly and it is integrated into iphones in the home pod. while pandora shares are down over 60% in the past year, it's not out just yet it's subscription tier is just a year old and launched on the web in february. then, of course, there is google which introduced an all access on demand subscription service in 2013. and amazon introduced the music service. despite rivals deep pockets, spotify scored a big score this weekend. taylor swift shot a video for her new song delicate, just for spotify. this is quite a turn around since swift's boycott of spotify four years ago most of artists reservations about the service have been addressed. it also shows how video can be the next battleground for all of these streaming companies.

the until pephilippines anda will see if the move to sell uber to grab is against laws in a first-on interview with cnbc, nancy spoke with grab's ceo about how the deal came together >> there's always many ways. one was obviously an indication of market share. we are clearly in a market leadership position. number two is the other assets that they were thinking about, about us, we were thinking with them we said okay, this is a reasonable thing where both sides felt this could be an acceptable thing to both boards. >> founders never like to give up too much of the company was it a struggle for you? did you think can we make it a bit less than 27.5

>> of course all of us were debating hard about it in the end we weren't fixated on that we were focused on how creative they were and the great promise s. we have been blessed we built our relationship over trust. i have seen how he changed uber. >> from your standpoint, does this improve margins, this deal? will this increase your path to profitability? >> of course many markets will continue to grow more and more sustainable but again it's not just about us

becoming more profitable how do we become more profitable, and at the same time serve society. serve our customers. work with governments to serve customers better, that's things like grab share, where we bring fewer cars, less congestion, cheaper prices and better incomes for drivers. >> uber's fatal self-driving car crash last month has raised concerns about autonomous driving. shares of invnvidia plunged las week after they announced they would suspend self-driving tests. it was made clear that nvidia's technology was different from uber's >> nvidia's technology is an open platform. uber developed their own sensing and applications in software

we want to wait until their vision is done and see what we can learn from them. >> tesla shares plunged after it revealed on friday that a model x vehicle involved in a fatal car crash had the autopilot system active investigated shares fell further yesterday after the national transportation safety board said on sunday it was unhappy that tesla made information about the incident public. concerns over the model 3 also weighed on tesla's stock as investors await production numbers this week. a report says elon musk has taken charge of production of the car after several missed deadlines. taking to twitter, which is most peoples preferred medium these days, musk confirmed he was focused on model three production and doug fields was focused on vehicle engineering and said he was back to sleeping at the factory this after musk made a bigger joke on april fools' day

tweeditweed i tweeting that tesla had gone bankrupt after a last-ditch easter egg sale. he made it clear then that he was kidding. joining us is neil and arjun for the tech sector. i want to talk about the future of autonomous driving. it seems like a fully autonomous vehicle is in question avenue the fatal crash out of uber from a couple weeks ago do you think this is a technology going forward is one we've been too optimistic about? >> potentially we have to put context around this in the last three or four years we had huge progresses in technology, leaps forward thanks to artificial intelligence the problem we now have is the

last mile of tech development has significant challenges we might have to think about autonomous vehicles could take a long time to get on to public roads. maybe we should be thinking about the different levels of autonomy rather than going to fully autonomous so maybe like an airplane, where you may have autonomy on freeways, on motorways, but when you get into rural environments or into city centers you may have to have human interaction like you do with taking off and landing an airplane. the whole path to fully autonomous i think has been delayed. the technology has not progressed to the extent we hoped and the technology costs have not come down at a rate that many had expected technology by default is deflationary so you would expect the costs to come down much quicker than they have that's another issue in the area of av.

>> in regards to tesla there's been questions about this company, whether they can bring production up to levels they hope and deliver on these orders that it has do you feel that the long-term tesla story, the growth story is still intact >> i think there are two things. tesla has done a great thing in terms of bringing the idea of electronics to the industry and very much it's a shift to the electron electron electronics of tesla vehicles, but they have missed every target so there's a big push/pull on this stock on whether they can justify the valuation they're afforded today that's a question to which we don't know the answer to but there's definitely an optionality around the product anyone that i've spoken to who owns a tesla vehicle wouldn't give up on one and thinks they're sub stan shastantially t to other vehicles on the road.

>> neil, i want to ask about facebook there's been so much going on. this has been dominating the news space the last week or so my question is whether or not -- essentially it's being pooled as a technology company, but it's more or less an advertising company at this juncture can there be a future for this type of company that relies so much on data usage for its advertising revenue given the clamp down we're seeing from regulators >> i think what we've seen so far is we have not seen the clamp down yet that will begin next month especially with european regulation, gdpr, which has a significant effect on any company that stores data on european citizens whether in france or in sunnyvale, california what facebook benefits at the moment is a lack of alternative platforms where ad dollars can go but in reality facebook's issue at heart is the true return on

investment for the ad dollar being spent on these platforms now we have a question that there's no proof that there's better roi on a facebook social network than on tv or on print that's a big issue a massive challenge for companies like facebook going forward. >> perhaps traditional media companies will serve to benefit from the introduction of gdpr. >> they could benefit from that or agencies become more important again in terms of helping to find homes. certainly they have challenges they never had before. >> just your thoughts on the potential trade war when it comes to the technology sector between china and the u.s. is this concerning to you or just a storm in a teacup >> i think it's concerning it's difficult to know how this plays out. we have to remember the biggest import that china has today in terms of value is automobiles. the second biccest is

semiconductors so china import more semiconductors, silicon, than they do oil. so for china's own domestic ambitions, electronics, technology is crucial to that. i think the u.s. are aware of that they also have that domestic ambition it's a big challenge for both countries. >> neil, thank you very much for joining the show arjun, thank you for joining us as well. we touched a bit on the impact of potential china/u.s. trade tension. let's look at u.s. futures the dow is seen opening up about 20 points lower. s&p about 5 points higher a bit of a mixed session that's it for datoy's show i'm joumanna bercetche "worldwide exchange" is coming up next. you know what's awesome? gig-speed internet.

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tech, tariffs and trump. those are the three ts that continue to impact your money. futures trying to hold steady now after yesterday's big selloff. the trillion dollar question, is the worst over for stocks or is there more selling to come red arrows in europe and asia we go worldwide with updates on markets everywhere. and gm slamming the brakes on sales numbers, saying it's done telling us how many cars it will sell every month. it's tuesday, april 3rd. "worldwide exchange" begins right now. ♪