welcome to "street signs." i'm joumanna bercetche these are your headlines rising tide. european stocks trade higher following a wild day in u.s. equity markets which ended positively after shoarp drops. telecom italia moves higher as vivendi and elliott continue their stake battle. potential peace talks in the trade conflict china's ambassador to the u.s. signals a preference to

negotiate while trump's top economic adviser sees a path that avoiding commerce confrontation. and uv soft shares top the european market as the latest release from its flagship series proves a hit with gamers good morning we have the final composite numbers coming out of the eurozone for march those have come in at 55.2, just a smidge below the flash estimate of 55.3 earlier this is a little bit below the february reading of 57.1 that composite number has ticked down a bit pretty much in line with where the flash estimate did come from euro has not really reacted that much already was trading weaker on the session in any case.

we also got car sales out of the uk as well those numbers are a bit shocking uk car sales have fallen around 15.6% year-on-year in march. that's preliminary data. quite a steep decline when it comes to uk car sales. almost 16%, that will weigh on the sector and autos have not been having a good couple of days. let's check in on markets. we did have quite the roller coaster ride in the u.s. yesterday. we saw dow end up 741 points off its intraday low i think that did set some form of a record. you can see stoxx 600 this morning is also much stronger and trading up 1.5% already. let's switch to individual bourses. xetra dax is leading the up trade today.

up 1.8% today. yesterday it was leading the down trade germany is the out-performer this is despite some weak german factory orders seemingly brushing off macro data and responding with more positive sentiment ftse 100 also up 1.3%. let's switch to sectors. see where some of the leadership is coming from every single one of those sectors is trading in the green. the sectors that got hit the most in yesterday's trading are the ones that are rebounding this morning basic resources up 2.3%. chemicals, technologies, all of those names bouncing back in vigor. yun p underperforming a bit to real estate and utilities now, the trump administration officials down played the escalating threat of a trade war between the u.s. and china after beijing ramped up the stakes

responding to washington's tariff measures with measures of its own. hours after the u.s. imposed tariffs on $50 billion of chinese impacts, china shot back targeting key imports like soybeans, cars and aircraft. trump said the u.s. was not in a trade war with china because it was a war lost many, many years ago. members of his team sought to walk back the threat now, nancy has more from singapore. how have markets responded overnight? >> investors have been encouraged by the fact that the trump administration really has been talking down this idea of a trade war. in fact, if you listen to wilbur ross, he's not even keeping the cards close to the chest, he said this is just a negotiation stage. that came to the relief of wall street and that spilled over to the asian session. firm moves to the upside we should note the greater china markets are closed for holiday

they did not get a chance to react to the latest news, because remember when china's official retaliation hit the wires yesterday, most major markets here were already closed the nikkei 225 higher by 1.5%. the kospi was in the green, higher by 1.2% after trailing the region yesterday along with the improving risk appetite in equities, we saw that spill over into the forex markets. some of these names you will recognize. others are highly expoez sed to trade tensions as you look at the soybean future prices, look at kikkoman, a giant when it comes to soy sauce that moved higher.

shareholders pushing the stock higher by 3% elsewhere, unrelated to trade tensions, let's look at samsung electronics. this is part of the reason we saw the uptick in the south korean session samsung was higher by almost 4%. a day before it gets set to release guidance for the quarter and investors seem to think it will be another strong quarter for samsung. back to you. >> thank you very much for that. the bounce in sentiment continues in european time as well wilbur ross told cnbc he expects trade talks to take place between america and china. >> even shooting wars end with negotiations.. shooting wars end with negotiations it wouldn't be surprising at all if the net outcome of all this is some sort of a negotiation. whether that happens by may or it happens at some other time, that's another whole question.

>> happy to say that jonathan fendi from t.s. lombard joins us on the show this morning what's interesting is almost everyone has said the mick econc impact of these tariff also be negligible despite yesterday is this all just a bit of political posturing in order to get both sides to the table and start adult discussions? >> that's what one hopes it is we had the big bang opening, if you'd like, which had an inevitable effect on markets the speed of china's reaction and the way it was very much targeted in political terms in the united states at states where trump -- midwest where midterms may have an effect on the administration, that showed that china was ready for this. so i think we had the opening moves in the chess game.

the moves forward, now both sides are hoping that in the next two months, which is the deadline we expect, that they will get down and do some talking. there are more serious, longer-term issues which will have to be addressed over the years to come. >> we've seen the rhetoric between the two leaders, president trump and president xi has deteriorated since that first mara largo meeting >> i think we'll have to get through a lot of preliminary discussions between their lieutenants, wilbur ross, other administration figures and then on the chinese side you

have, after the party congress last year, you have a new economic team here they have a lot of experience deing wid dealing with americans, and i think they will try to work something out before we move to the presidential level >> a couple of questions for you. yesterday in president trump's tweets he mentioned theft of up to 3$300 billion worth of intellectual property. i'm wondering whether or not that number adds up. >> i don't know how you quantify this exactly of course what do you mean by theft? is this just going to joint ventures is it actual theft, or does this take into account instances where u.s. companies are working with china and chinese companies on their new technology schemes,

let's say, and where they may say the chinese have taken on the technology so you need a lot more definition in this before you can come up with a number. >> so that leads me to my next question china has this new made in china 2025 policy, the intention is to make china into a technical powerhouse on a global scale will there be any implications as far as the china 2025 policy is concerned if the u.s. do go down the road of limiting chinese investments in u.s. technology firms >> that's the big question beyond the immediate -- >> so it's less about soybeans, agriculture and cars -- >> it's a long-term plan, which is core, central to xi jinping's general ambition for china, for building up a great china. part of that will depend on imports of foreign technology,

perhaps acquisitions, perhaps working with foreign technology firms. this made in china program, i want to emphasize, is vague at the moment it is general. it covers ten different sectors. how actually they would proceed in those is still left to be worked out that's one of china's red lines, which it is absolutely intent on pursuing it links in with the whole political strengthening of xi jinping and the communist party and the party state. >> doesn't it also leave the chinese side with less bargaining power we had a guest this week who says china imports more semiconductors than cars >> though they have been building up the semiconductor. they will be in position to start going on stream with production in the next year or two. so, they're in an intermediary

stage. you're right, they will be negotiating, not to cut themselves off from any of the technology they need in order to become a much stronger new generation competitor in the 2020s. >> of course while all of this tariff trade war situation is going on, the other big question in the region is that north korea situation. i'm curious to hear your views on whether you think this so-called meeting between president trump and kim jong-un will happen and if it will bear any positive results >> i think it's become more likely to happen over the last week or so with kim's visit to china, which is very much china coming back into the game. there was the potential that kim and trump would meet and china would be standing on the sidelines, which would not have been a realistic situation i don't know if you saw, but very much the film of xi jinping

giving his instructions and kim writing them down in his notebook represented a certain relationship china is back in there there are some reports from washington that xi has even suggested that there should be a four-party negotiation in the future, the two koreas, the u.s. and china. that's without japan this has quite serious implications for mr. abe >> that will all play out in the next couple of weeks jonathan, thank you very much for joining us >> pleasure. elsewhere, the italian president is meeting with representatives from major parties as talks about the formation of a government continue after national elections last month there are live pictures of what appears to be two guards standing outside the door, but that will eventually be the italian parliament meeting. and cdp is set to take a 5%

stake in telecom italia. the italian government is aiming to protect the government's interests in the country as vivendi and elliott advisers continue their boardroom battle for the firm vivendi has a stake of nearly 24%. one of telecom italia's shareholders says the government is determined to keep its influence on the company >> it's not great that the government is taking an interest, but at the same time telecom italia like all state monopolies is a political football you can see all the work they had to do to separate out the network, it's all driven by problems with the former renzi government and their regulator so one can't be -- well, it may or may not be good news that the government is stataking a stake my instinct is it's not good, but it may be naive to expect

the italian government to trade out of its influence >> some corporate news shares in ubisoft are at the top of the european equity market after the launch of the fifth game in the far cry series vivendi recently announced it was selling its stake in ubisoft ending a long-term struggle to take control of the company. germany's largest lenders should not merge the that's the message from banking supervisor raffin the executive director said such a move would not fix earnings. the comments come amid speculation that deutsche bank and commerzbank could merge in an attempt to address trs their difficulties. clariant expects north america to be the second bargest market by 2021. they say increased r & d and capex spending will drive

growth. coming up, soy swing states. how china's possibly targeting trump supporters with tariffs. - 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. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. racing isn't the only and with godaddy, i'm making my ideas real. with godaddy you can get a website to sell online. and it will look good. i made my own way. now it's time to make yours. ♪ everything is working just like it should ♪

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tokyo stocks closed higher as fears of a trade war between the u.s. and china eased somewhat >> the nikkei index finished 1.5% higher thursday following a rebound in the u.s. market investors fears of tensions escalating between the u.s. and china eased after u.s. officials signaled they were open to negotiations and not seeking a trade war. the yen weakening against the dollar around 107 yen, the lowest in three weeks was also a welcomed buying cue. china announced wednesday it would retaliate against tariffs on chinese goods by slapping penalties on u.s. products including soybeans, beef, autos and airplane the soybean market fell as much as 5% at one point before

settling to a 2% drop. the news helped soy saucemaker kikkoman which rose 3% on hopes of lower import costs. the announcements worried that u.s. soybean could be affected and that's all from the nikkei, back to you. >> thank you very much for that. speaking of soybean, u.s. s soybean futures recovered after china hit the u.s. with a 25% tariff on soybean. >> the chinese looked at where could they have an impact with many people who may have the ear of president trump or at least may have some ability to talk to

president trump and his administration the farmers are that they were big supporters of him as he was elected. i think they wanted to do something that would get the attention of farmers, and farmers will put pressure on the administration >> happy to bring in stefan vogel from rabobank who joins us we had a bounce by the end of the day in soy futures actually at one point they were down 4%. ended up the day mildly positively if the tariffs do end up getting passed, what is the likely price impact we'll see on soy? >> first, you're right, we have seen a rebound because it's an uncertainty, we will have this uncertainty for another month and a half to two months until we know if china will impose those duties it will be a reaction if the u.s. imposes duties fries from r side you need to understand china is

the largest importer of soybeans in the world, absorbing 70 million tons of beans. there's not enough soybeans outside the united states that could go and supply all of china's needs. even if you take everything available in south america and ship it to china, that's not enough so they will have to find a way to come around those 25% of duties, meaning prices in the u.s. will have to drop to become competitive and prices of soybeans in south america will rise to adjust for stronger deman for the export market and prices in china will increase making the feed and food for people in china more expensive because china is a large hop producer and higher prices of soybean meal will reflect to higher prices in the chinese market >> there's not enough beans in the world to satisfy china's demand without relying on u.s.

imports, have you done work on the inflationary impact the ris in prices will have? >> yes, it's a complicated topic. it's not easy to say prices will rise by 25%. that's not true. we will see some other products moving into china to substitute a bit, like other meal and seed, so we will see an increase and our estimates are around 4% increase in prices for pork in china based on this 25% duty but it's an uncertain time here, if we even get those duties. if we will, it will clearly hurt the consumers in china as well as the farmers in the united states and maybe the laughing third will be the farmer in south america who gets a better price for his soybean.

>> i see brazil exports more soy to china than the u.s. do. another commodity that's going to get hit is cotton reading in your notes, you already have a bearish view on cotton in the first place. will these exacerbate those tariffs? >> the united states is a massive producer of cotton and is a heavy shipper of cotton it's different where compared to soybeans, that's the powerhouse, for cotton there are other players in the market. so the reaction may be more muted in the case of a 25% duty on u.s. cotton, but clearly we will see the pain in the market making china and the industry there that uses the cotton a little let's competitive compared to its neighboring countrie

countries. >> with soy, maybe some latin american countries could benefit from the tariffs on u.s. exports. in cotton, are there any other countries that are likely to benefit? >> sure, we have other cotton producers like australia who could benefit from that. we will see changes in trade flows, but also quality will play a key role here we will see some other countries benefiting from it and i think australia could be one of them >> one final question, broadly speaking, we spoke about cotton and soybean, are agricultural markets in general pricing in and accounting for these tariffs getting imposed? >> they have not really done a whole lot yet. if you saw yet it was a quick reaction, 5% down in the soybean market because there was a panic. but very quickly when people understood we have two months of uncertainty and then maybe the duties will never come or they come in a different form than

announced today, so it's not yet fully priced in. nevertheless it doesn't mean if you get a 25% cuduty on imports into the u.s., the prices have to drop 25%. there's a higher risk of duties, people will take that into account the next two months. when we finally see if china says yes or no on those u.s. soybean duties, then the market will finally react on the other side sellers of soybeans into china will be more and more cautious selling u.s. soybeans and will try to sell more south american soybeans to avoid a risk of getting a penalty in china with their goods. >> absolutely. thank you very much for your thoughts on agricultural prices here trade headlines stole the spotlight but the payroll figure for manufacture march in the united states came above estimates.

241,000 net new jobs for the month ahead of the consensus for 200,000. over the past few readings a strong adp beat has led to a similar non-farm payroll number which we will get tomorrow. coming up, the latest developments from the u.s. and china after this ductivity like never before. which is amazing. unless you're a barista. cdw implemented a dell emc unity flash storage solution. keeping data available and people connected from anywhere. so lucky me. so nobody wants coffee? hey can i get a couple copies? increased flexibility by dell emc. it orchestration. by cdw.

welcome to "street signs." i'm joumanna bercetche these are your headlines rising tide. european stocks trade higher following a wild day in u.s. equity markets which ended positively after sharp drops telecom italia shares move higher as vivendi and elliott continue their stake battle. potential peace talks in the trade conflict china's ambassador to the u.s. signals a preference to negotiate while trump's top economic adviser sees a path that avoids commerce confrontation. facebook says cambridge

analytica may have accessed more information than previously thought. mark zuckerberg admits to mistakes says data scraping from public profiles has been widespread we have the uk march services pmi numbers they did come out much lower than expectations. coming in at 51.7 versus expectations of 54 that's quite the miss. but again, the weight of the snow may have impacted somewhat. we saw that in the construction data yesterday as well so far the pmi numbers out of the uk for march have been disappointing. we are seeing somewhat of a reaction in the pound here muted, it was already traying l trading lower to a quarter percent. generally the pmi numbers are

disappointing. elsewhere, eurozone businesses reported their weakest expansion since the start of last year manufacturing pmi dropped to 55.2 in march from february's 57.1 this again as snowy weather and a strong euro dented growth in new orders let's look at foreign exchange since we were just looking at cable. today the theme has been oneof dollar strength. as you recall yesterday, while all of the trade jitter concerns were going on, dollar wasn't really sure how it wanted to move some people were saying it could be positive, others negative, we saw dollar trading weaker and as equity markets have recovered, we've seen a rebound in dollar euro/dollar is trading a tad weaker, 0.1% dollar/yen made a bit of a rebound back through the 1 107

andaan looking at the dax, that is up 1.6% cac 40 and ftse mib also in line ftse 100 lagging but up more than 1% in today's trading following the positive rebound in asian equities and u.s. equities into the close. speaking of u.s. equities, the picture for the u.s. this morning is one that looks more optimistic the dow opening up about 100 points higher. s&p opening up about 19 points higher it appears at least for now that equity markets are saying the worst is over. top u.s. and chinese government officials are speaking out after the countries each put 50 billion of new tariffs on the table. the u.s. commerce secretary, wilbur ross, said trade talks between the two countries are

likely and sought to play don't latest moves >> anyone who thought the chinese would do nothing when we put on the measures that we did just wasn't paying attention that would have been extremely embarrassing to them, unnecessary. they're very good at math. they know we're talking about fractions of 1% of the respective economies this is not world war iii. >> after a meeting with john sullivan, china's am bobassador the u.s. said china was willing to negotiate but washington n d needed to step up. >> the relation is complex we have so far always been able to expand the good things and manage the not so good things. negotiation is still our preference but it takes two to tango. >> i'm happy to say joining me on the show is lord digby jones.

i know you wear many hats, but putting on your trade has the here, what do you make of the back and forth going on between the u.s. and china >> i think it's a conlict shun a and confluence of trade. you have a president in the usa saying he's doing what he said he will do that's a tick in the box politics on the other side is china saying we'll not just put up tariffs but targeted them on places where it will hurt the trump heartland. politically again you have people saying i know you were going to do this, thank you, by the way, not if it hurt me that brings in international

trade. electorates don't often understand you have purchaser and vendor and by in large china is the purchaser, the u.s. is the vendor they need each other badly if all they do is slug it out, they will both fall over i think deep down they know that it's a lot of posturing, but on the other hand it's harmful to everybody. it will hurt you and me. when elephants fall over in jungles, mice get hurt in this case these two big elephants will hurt a lot of mice around the world, businesses around the world will feel the cold air if this carries on >> initially when president trump came out with the tariffs, starting with steel and aluminum target, which did not target china directly it was under the

guise of national interests. is that just a pretext >> it doesn't take much to send america into its protectionist isolationist dna they call themselves the home of the brave, land of the free, they are brave but they're not free they don't do free trade perhaps the way britain would understand it out comes 25% on steel and aluminum people in america will say good, we have the deficit. we need to do something. it hurts britain, sweden, luxembourg, germany, all of america's allies if you're going after china, do it another way don't hurt your allies in that case, that was a big bludgeon when a little bit of direct would have been a better thing to do. that's where it will end up. australia has already done its deal with america on this. >> assuming these tariffs do go

ahead. they already provided certain exemptions >> sure. country by country they will achieve that the problem you have is trump's doing domestically what he said he would do. the consequence domestically and the consequence to his allies, it's substantial >> i will flip this one back on you. it looks like markets are scared about the prospect of higher tariffs. what does that mean for the uk >> as far as uk and europe are concerned, the jury is still out there. will be no tariffs, it's in no one's interest >> the uk will be part of a customs union in your view >> no there will be a free trade agreement between the eu and britain and in that respect, manufactured goods will have no problem. whatever germany wants, germany

will get it's not in germany's interest that there's tariffs between germany and britain. services is where the problem lies on any free trade agreement, not just financial services, which is a huge important thing for britain, but also other services as well. the problem with that is britain's economy is 80% of gdp of services. that's the big one people always say there's a single market in services, there wasn't in many of my businesses you couldn't get france especially but also spain, italy to behave itself and what it was meant to do in services the single market worked really well in services it didn't. i think the biggest issue britain what is that the biggest trading partner, it's biggest ally, that's america what we need to do is ensure the link politically, the link commercially between america and

britain remains strong on that basis i would love to see the trump administration and the may administration talking it up. they probably are, we don't know, but we need to see that working well that's because america is our best friend. what we need to do, in their protectionism try to get them opening up for britain >> president trump seems to have other priorities as of now >> well, you know, we don't know what's going on behind the scenes >> i want to ask you about the fragile unity for the parties here, do you think mrs. may will come under more pressure from within her own party >> i think she will, because you have different factions who want different things on brexit

one thing that has impressed me, after this amazing exercise in arrogant complacency called the 2017 general election, which is what it was, it amazed me how she's been written off again and again and again -- >> and survived. >> exactly so often people have said she won't last a week. corbyn was said i'll be in downey street by christmas, and she's still here probably stronger than she has been for a year. it's interesting that she's showing the british public she has strength, quite a lot of stamina, quite a lot of staying power, resolution. i'm not here, i never belonged to a political party i don't intend to start. when i was trade minister i didn't belong to a party i wanted to do it for my country, not a party i think the prime minister at this moment is showing the country she has more resolve and strength than people gave her

credit for >> talking about markets, many people say the threat of the hard brexit is the uk walking out of discussions, and that probability is almost zero, especially after securing the transition deal. do you share that sentiment? >> with one exception, yes, i do i think the markets are building into everything. the fact they think there will be a deal of some sort parliament has, because of the supreme court judgment, and i think because people generally want this to happen, will have the last say what will go up for the vote in the commons and in the lords will be do you want this deal or not? what is the alternative? no, i don't want this deal, so what do you want if someone says put it to the people, we'll have a second referendum, the question is do you want this deal or not? if the country says no what's the alternative? europe is made of -- you have

gone, britain. we're getting on with our lives. the country believes it's gone it's negotiating its way out euro is building a country, and britain is talking trade you have apples and pears. britain is gone in many ideas, it's just how you walk through the door i don't understand what will happen if either in parliament or a second referendum or both, if the idea is we don't want this deal what do you do do you go back and say it was all a mistake, we want to come back they'll say only on our terms. so there's a confusion as to what would happen if the deal was not agreed in parliament >> the challenge is getting the deal agreed in parliament. the labor party says they want the uk to be part of a customs union -- >> i don't think mr. corbyn and

his friends do anything but politicize this. i don't see them doing it for the good of the country, i see them doing it for the good of the labour party that will be a tribal fight. the liberals -- problem is the wrong word for theresa may they only have eight members in the house of commons, or ten, but they have 108 in the lords they can cause problems in the lords. i would like to think the lords would never overrule a democratically elected chamber, but they can cause problems. >> a quick question about russia and how the uk has been handling this the uk announced the expulsion of diplomats and a light version of sanctions do you think they've done enough and do you think the government handled the situation well >> i think they're doing enough. they have done enough for now. i don't think they should rule -- don't let russia think this is the end of it. if i was the uk government, i

would be pleased that putin did not get his one achievable aim, which is let's disrupt and fracture the western alliance. in that respect i think the government played a good hand. where they played a poor hand is in the last few days where people said i'm not saying it wasn't russia, i'm saying i can't guarantee it there's some russia around somewhere which says they can. now i see the newspapers saying they probably can, which is what the other leaders of the world have seen, but you and i haven't. so the communication to the wider world openly has not been good the last few days every single time there's a little chink in the armor of the way they behave, russia will be in like a shot and trying to exploit that america, britain, europe, we all have to be eternally vigilant. >> unified >> ensuring unification stays.

exactly. on the other hand, this is unfinished business in moscow and london >> sir, thank you very much for that we have to leave it there. pleasure to have you on the show now, the u.s. is reportedly planning to sanction russian oligarchs this week over meddling in the 2016 election. according to reuters, action could be taken as early as today and target individuals with close ties to president putin. the u.s. sanctioned 15 people and 5 entities earlier in march. president trump has ordered national guard troops to the mexican border he has also promised to work with governors to combat illegal immigration and crime in the border region. trump's nominee for national security adviser, john bolton, has been meeting with white house lawyers about possible conflicts of interests exact sticking points are unclear, but ethics experts say bolton's previous and potential affiliation with political

action committees could be a cause for concern. a spokesman for bolton denied there were issues saying the former ambassador will start the role on monday. coming up, mark zuckerberg admits mistakes as the skoeccop the cambridge analytica scandal widens - 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. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. but i'm not standing still... and with godaddy, i've made my ideas real. ♪

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welcome back to "street signs. facebook said user who had a certain filter turned on should assume their information has been scraped mark zuckerberg took personal responsibility for mistakes the company made zuckerberg said cambridge analytica got information from as much as 87 million users, up from 50 million. this as the social network's founder agreed to testify on capitol hill next wednesday. elsewhere sophos shares made

their biggest one-day gain they were on course to hit annual billings of $1 billion b 2020 and the stock was up 20% in today's session. now it's up 18%. you have that right in front of you. i'm happy to say that joining me is the fund manager from hectagon capital sophos is up 18% today that still puts it down about 10% year-to-date the company has come under challenges as far as the billing numbers were concerned talk me through the rational there. >> we've been invested in sophos since march of last year it's been a strong, compelling journey since then it's important for investors to focus on the future trend which is that cyberattacks are not going away soon. sophos is in a wonderful position in the market it targets medium-sized

companies. it is an off the shelf package so a very good operating leverage in the business model and that is leading to good visibility on numbers going forward. with the model they have, you're talking about subscriptions leading to billings. they have 80% visibility on their revenues i think the setback we saw earlier this year is because expectations perhaps had gotten too high if we go back to may 2017, when they had full-year fiscal results, in the period of may to the end of last year, the business raised its guidance three times. people had gone into the trading statement in february where we saw a setback, they only delivered in-line guidance now we get to the end of the financial year as i think anyone really focusing on fundamentals would have understood, the business is very much on track very much on course to meet or exceed targets

>> what differentiates sophos from other security firms? >> integrated focus, solution, focus on using artificial intelligence and the like. >> let's talk about your other pick, which is controversial that is tesla. tesla has been in the news quite a lot over the last week or so mainly due to concerns over the production of the model 3 car. they did reveal the numbers, the production numbers earlier this week those came in slightly lower than expectations but higher than many had been seeing. so that gave the stock somewhat of a boost how do you see production numbers playing out? >> i think it's very wrong that people are so focused on the production figure. that's where a lot of the movements we've seen in the share prices, the volatility stems from what we would recommend is actually taking a bit of a step back, focusing on the bigger picture. what i would like to remind people is that since tesla

listed in 2010, this is a business that delivered 37% annualized returns the market has done 11%. this company has a phenomenal record in creating value for shareholders elon musk owns 20% his interests are aligned with the success of the company there's been a huge focus on model 3, you're right, but this is a company investing for growth once they reach that optimal point of operating leverage, that's when you see the profit coming through >> isn't it a matter of them overpromising and underdelivering? if you look at deliveries for q1, they're 18% behind expectations the numbers are simply not there. >> i think you're right about the numbers for the model three. the bigger picture story for tesla is really about creating an integrated energy solution. so you have the solar panels,

battery store raage and the car. when you look at financials, the moves from losses to profitabilities, that's reassuring wh >> what about the debt situation? they burned through about 1$1.2 billion of cash in q1. that raises concerns about liquidity. >> this is a business model in similar respects to amazon that is premised on this idea of investing for growth every time we engage with management at tesla, they are very explicit in saying if we stopped investing now, we could instantly be profitable. when you run the numbers, that sort of analysis, that sort of statement is plausible >> very quickly, your last topic is vestas, the wind turbine maker. why do you like the stock? >> huge shift to renewable energy 70% of all new energy production by 2040 will come from

renewable. wind is the cheapest, most efficient source ve vestas is the number one player in the market. upgrading the turbines creates a good outlook going forward >> alex, thank you very much for joining us very quick look at u.s. futures before we hand off you can see the dow is seen opening up about 110 points higher a more positive session is likely that's it for today's show i'm joumanna bercetche "worldwide exchange" is coming up next.

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