. welcome to "street signs." i'm willem marx. european stock markets follow asia higher after earnings help lift the s&p and nasdaq back into positive territory for the year a miss from ibm after the bell could put pressure on the u.s. session. shares in danone jump as strong demand for baby food helps the french food group deliver better than expected first quarter sales. a bitter taste for heineken. shares fall after lower volumes in europe offset stronger

international growth and italy's president is expected to ask the senate speaker to break the deadlock over the formation of a new government after major parties hit a brick wall in negotiations it's been a positive start to trading across europe if you look across our heat map, more green than red. the stoxx 600 up 0.1%. driving that positive momentum, you can see the ftse 100 well into positive territory. the xetra dax in germany up over a ten of the a percent in france, the cac 40 up 0.35. in italy, the ftse mib up 0.10 basic resources up 1.4%. energy sector into positive territory, up a third of a

percent, in line with what we've seen with wti overnight. travel and leisure ahead of the summer season not looking so good, down a fifth of a percent. danone has reported stronger than expected sales boosted by chinese demand for its baby food products they had challenging conditions in the u.s. and european dairy units. speaking to u.s. colleagues last week, the chief executive commented on the progress of its white wave integration >> the integration is going well synergy plan is slightly ahead we continue to see enormous attraction in the long-term growth behind the pudding, non-dairy alternatives with brands like silk, so

delicious organic, nondairy, which is a great combination of our dairy business, which is making danone an unparalleled brand company that can address the needs for people to have a variety of choices on the market. shares in heineken are trading lower. asia and the americas saw sharp increases with overall beer volumes up 4.3% year-on-year, that's thanks to the late lunar new year and an early easter the brewer struck a bullish note on the full-year retaining its outlook saying it expects operating profits to expand by 25 basis points. sticking with booze, remy has

cited strong demand for its premium cognac in china for a boost in q4 sales. asml holding reported a 540 million euro net income in the first quarter beating expectations the key supplier to computer sh chip manufacturers saw increasing numbers of its lithography systems. and jupiter suffered 1.3 billion pounds of net outlows in the first quarter, this after the chief executive admitted it's been a tough start to the year jupit jupiter's asset management fell 6.6% because of withdrawals from fixed income portfolios in particular the company said it will be targeting further diversification.

let's talk more to brian singer from william blair why do you think a fund manager like that here in the uk has had such a tough start to the year is this all about volatility >> i doubt it will be the last firm that has a tough time the market from our perspective has really kind of ridden on the back of central bank, ultra easing monetary policy throughout the world we're beginning to see some of that pull out. as we see it pull out, it will stress some strategies like systematic strategies, beta strategies that have been doing well over the past several years but that have been coming up against the free ride, and i think we'll see more and more firms have this type of stumble. >> what's the solution >> don't have ult -- don't have banks manipulate things.

fundamentals have struggled to exert themselves in this environment. the key for fundamental investors is to remain low key, not take too much risk in the past environment, but as we see it unwind, to step into those fundamentals, and step against some of these rule-based, smart beta strategies are like -- they're reminiscent of portfolio insurance. unfortunately i'm old enough to remember going through that. when portfolio insurance kicked in and it was a rules based structure that could do nothing but sell, sell, sell, market couldn't handle liquidity. we'll see more and more problems like that this year. >> do you still think there's head room for u.s. equities or do you think that head room is left exclusively for markets in europe like the uk >> i wish i were smart enough to pinpoint that one. i think there's head room for

almost any market. i think the fundamentals as we see them emerge are better here in europe and mostly emerging markets than what we see in the u.s. the u.s. has been a safe haven market over the course of years. it's performed well. as it has done that, it attracted more and more assets you have robo advisers now which are pushing more of this stuff in the u.s so it's kind of gotten itself out there extended relative to other markets. it's difficult everybody calls it the most anticipated bear market in the history of the u.s however i think it has run its course manipulation is leaving an opening for it to trail down >> let's talk about currencies before we move on. they have been interesting, particularly for us here in the uk looking at cable. i wonder you go back to the referendum vote, we're become at

that level when it comes to pound against the dollar do you think the pound is relatively cheap >> yeah. we have been buying it after the brexit vote. we went through last year a period of relative calm in negotiations on brexit we thought that calm would be a nice underpinning to the broader fundamentals, relative purchasing power parity. we thought that would be an underpinning and it has been for the pound. not so much the case in the continent. some of those currencies, the euro, swiss swiss frank, those we see more difficulty in and the dollar >> stay with us. we'll come back to you for a conversation about trade later on that's brian singer. e-mail the show about any of the things we've been talking about. streetsignseurope@cnbc.com you can also tweet u us, @streetsignscnbc. coming up, u.s. president

donald trump comes out swinging on twitter about the transpacific trade partnership what next for u.s. trade we'll talk about that after this break. racing isn't the only and with godaddy,

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the first shots in a potential trade war have been fired. so says the imf's chief economist delivering the organization's latest outlook. he warned that an increase in trade tensions could derail global growth. speaking after that release, he was asked how a trade war could hurt global growth >> really depends on how far things escalate. from the types of measures threatened so far, the big risk is if these sorts of actions

spook asset markets, spook stock markets and other markets, that could have a more serious effect on confidence and growth >> tune in tomorrow when joumanna bercetche kicks off coverage of the imf spring forum. president trump has once again criticized the transpacific trade partnership at the end of a day of talks with japanese prime minister shinzo abe, he said he doesn't like the deal for the united states days ago president trump asked members of his cabinet to re-examine options for the u.s. to consider joining the multinational agreement, but the president has insisted that bilateral trade deals are far more efficient and profitable for u.s. workers steve mnuchin yesterday spoke to our u.s. colleagues about trump's trade strategy >> it's a focused strategy that the president has been very clear on we had an integrated plan.

we have larry who is on board. he's a terrific part of the team we've been in talks with our counterparts in china about reciprocal trade we have focus on this. the president is determined to make sure we have free trade >> in davos the president said i'm thinking about tpp we went a few months, nothing was done people said i told you nothing would happen then we hear he asked lighthizer and larry to look into it. is that ongoing? has anything been done you said you speak to lighthizer a lot? do you know anything about the reception that's receiving by the 11 members that are already in the tpp is it possible that happens? >> sure. again, let me say, i think it was a big announcement in davos

where the president said he would reconsider entering, but only do that under better terms. we quietly had some conversations with our counterparts about what the issues are with the 11 people in tpp, we have free trade agreements with many of them today he will be talking with japan about trade at mar-a-lago. japan is one of the big participants and we're focused on our trade relationship with them that's a big part of the tpp right now. >> does china have anything do with this new interest in joining the tpp, would you say >> no. no it's independent again, the president had been consistent to only join tpp under a different deal >> you handicap it at 1 out of 3? 2 out of 3 what are the chances we end up in tpp >> i don't really handicap it. >> better than 50/50 >> i'm not going to handicap it. it's not a question if we're in

or not in, but the question is will we make the progress on trade that we want i'm comfortable that we will this is not about protectionism, this is not about tariffs, this is about making sure that we have free and fair reciprocal trade. >> we always have to talk about the dollar >> why not >> the president tweets, and some people say that's just a tweet. but when a president puts anything out, you have to take it somewhat -- maybe not literally, but take it seriously. he talked about russia and china being currency de-valuers. we put sanctions on russia we devalued the ruble. >> counter to what we saw from a treasury report last week where china was not labeled a manipulator. >> that sounds like the president wishes the dollar -- >> that's not the case it was a warning shot at china and russia did de-valuation.

china has deval cued currency i the past they have used a lot of their reserves to actually support the curren currency so the president wants to make sure they don't change these plans and he's watching it >> thoet treasu though the trea from a few days ago says china has been actively trying to prop up its currency. >> like i said, it's a warning shot to make sure china does not devalue the currency like in the past >> mnuchin was speaking to cnbc on what is known as tax day in the u.s., that marks the deadline for individual tax returns. but a website outage means many americans will be given additional time to file and pay their taxes. the irs apologized for the direct pay site having crashed and has subsequently extended

the filing deadline to midnight tonight. president trump filed an extension for hisown taxes for the second time since he took office the white house said he will file his 2017 tax return before an extended deadline on october 15th speaking about the impact of recent tax reforms, secretary mnuchin told cnbc that rising economic growth would pay for any temporary short fall in tax receipt receipts >> let's talk about u.s. growth in particular. we heard from the imf. they're positive about the possibilities of things going

well what about trade are you concerned about the rhetoric from washington and beijing over the last few weeks? >> i'm concerned about any rhetoric that comes out of washington these days. i have not looked at my twitter feed in the last 20 minutes, so i ma trade war i think reciprocal protectionism might be a bit of an oxymoron here i'm still trying to struggle with that. it's beyond a doubt a risk that needs to be taken care of within the risk management aspect of the portfolio. you can't run away from it you don't want to run away from it the way we look at it is from a game theoretical perspective the broader moves -- forget the twitter moves, but the broader moves of these players, whether it's the u.s., china, nafta, canada, next co, thmexico, cana consistent with negotiating behaviors you should expect.

it might look like there's aggressive action, but it's just posturing. so far like the chinese, this tat for ttit-for-tat behavior >> do you think the efforts of the administration have worked to the u.s. advantage so far >> with regard to -- with many of his policies, yes, in terms of regulatory change, is that are going on in the background, tax policy, yes. what about trade >> we don't know yet the trade negotiations are in their early stages we'll have to see what comes to fruition from it i don't think that we can replace everything with a bunch of bilateral agreements. that may be nice to say. it's kind of threatening that i can take this agreement, junk it, and start running around bilaterally. that's not going to happen so it may be a part of the threat that's going on here. but we're a good ways from

actually seeing what happens from all these negotiations. >> you heard what the u.s. president said during his campaign about the tpp i wonder whether you were surprised when you heard that robert lighthizer, his trade rep and larry kudlow were being instructed to look at the possibilities of getting involved in it again >> in some sense i was flabbergasted when the u.s. pulled back on tpp in the early presidency it did open up a strategic negotiation with asia a lot of power an opportunity for china coming back in it now, yeah. i am surprised it's happening now. but it does demonstrate to all of the players in the negotiation that he can be flexible regardless of what he does the mere communication that he will reconsider it suggests he can be flexible, he's worth negotiating with there were openings left in it for the u.s. to come back in

it will not be as easy a thing to do now. but i take it as another just negotiating maneuver on his part in this broader term process that he's going through. >> you talk a lot about the difference between words and deeds. the imf's own chief economist saying even the words could dent confidence do you agree with that >> yeah. yeah the thing about -- with this type of thing, when you play poker, and you bluff, it's not about being honest with all of the other players, showing them your hand, you're lying along the way. you do lie it's part of negotiations. it's what governments do in a geopolitical arena it does keep people back-footed. the world trade organization is one of the most back-footed organizations right now. we don't need them back-footed,

not with things going on here with brexit as well. the repeatedi itness of those g reversals is fascinating in europe, the italian president is planning on asking the senate speaker to form a government she has been summoned for a meeting with the president this morning. she is expected to start a round of coalition talks this week according to the reuters news agency mattarella is considering her as the leader of a unity government as well. she's a bridge between opposing factions in italy. sticking with italy, jpmorgan has begun coverage of some of the country's banks this week and updated its ratings for others it sees encouraging asset

quality trends in the sector but warned the ongoing npl cleanup in italy may not constitute sufficient action. jpmorgan performs unicredit and intesa because of lower probability they will need further cleanups when it comes to bad debts jpmorgan also revealed its top telecom picks for europe the least preferred picks include talktalks, swisscom and kpn. telecom italia says elliott's aim is to reduce the significance of the company's assets it said its strategic plan is on track and that it could reinstate its dividend policy once the group hits investment

grade. this comes before what is said to be a fiery shareholder meeting. and hammerson has withdrawn its offer for intu properties and recommended share holders not back the 3$3.4 billion deal. the real estate developer said the long-term risks outweighed the long-term rewards. intere rio tinto will aim to complete the sale of two european aluminum smelters by the end of june despite u.s. sanctions against a key russian supplier the company also said there may need to be adjustments to the annual output because of the sanctions which raised concerns about a global supply shortage aluminum futures have risen to the highest levels since 2011 over some of these concerns. coming up, facebook is about

to ask you if it can use your data for services like facial recognition. we'll have all the details on that shortly

welcome back to "street signs. i'm willem marx. these are some of your headlines. european stock markets follow asia higher after earnings help lift the s&p and nasdaq back into positive territory for the year a miss from ibm after the bell could put pressure on the u.s. session. shares in danone jump as strong demand for baby food helps the french food group deliver better than expected first quarter sales. a bitter taste for heineken. shares fall after lower volumes in europe offset stronger international growth and italy's president is expected to ask the senate speaker to break the deadlock over the formation of a new government after major parties

hit a brick wall in negotiations a quick look at currency markets. the euro trading weaker against the dollar the pound seemingly also weaker against the u.s. dollar. the dollar is stronger though against the yen and the swiss. so a strong day for the dollar so far it's also very exciting day for uk we can look at some uk inflation numbers. they have just popped across the wires here the sterling is dropping after that data coming out it looks like the cpi numbers have come out. they're up 3.4% for march, that's year-on-year, slight increase month-on-month as well. that's for rpi core cpi, that's up 2.5%

year-on-year that was against expectations of 2.7% i'm joined to talk more about this with oliver harvey. you heard those numbers. slightly lore thawer than expecn cpi. does it matter >> to be perfectly honest, it doesn't matter what matters for the bank of england policy outlook is not the month for month cpi prints but the inflation forecast two, three years out. there they have cpi overshooting their forecast, the target of 2% what they're looking at as the relevant driver is not the month on month cpi print it's no surprise cpi is beginning to fall or rather cpi growth is beginning to slow down that's because there's less of an impact from a weaker sterling into inflation numbers over a two and three-year basis what matters is domestically generated inflation, another way of saying wage growth. and yesterday obviously we got the labor market data out for

february that showed another improvement in underlying earnings growth in the uk this is not happening in a vacuum there was another fall in the unemployment rate. it reached another low, 4.2% we're seeing a big labor supply shock going on in terms of falling immigration, recruitment difficulties in the uk, and finally policy turning more supportive for wages we will see a bit of a pay rise in april because the national living wage is being increased put that altogether, that's still presenting quite a positive outlook for wages i think they'll probably look through the cpi data and we think they'll hike in the inflation report next month. that's 25 basis points >> what about the rest of the year what are the other factors besides wage growth that might lead to more rate hikes? are we talking about brexit again and again? >> wage growth remains relevant.

demand remains quite relevant. uk growth has weakened we have gone from the second fastest growing economy in the g 10 to the second slowest that being said, it's not about where growth is, it's about where growth is relative to supply the bank of england has significantly lowered their estimates for capacity of the uk economy. we need gdp between 1%, 1.5% for them to continue on this hiking cycle. you mentioned brexit it will probably be off the table until later this year. we had a more credible deal with the eu than we expected in march. that's a positive. that's not to say brexit is all solved >> we heard from donald tusk this morning saying ireland needs to be solved or the next meeting will be problematic. wh >> what is important is in

principle in march they agreed to the back stop issue with ireland. the big issue is the future relationship which has not been solved we have this debate with canada versus ukraine versus norway those risks will reemerge in q4. in the near-term, themarkets will be focused on the bank of england and uk growth picture. >> so the bank of england downgraded its view for global growth the imf maintaining its outlook. do you think the uk remains behind the curve and will continue to? >> it has. >> do you think it will for the rest of the year >> i think to a certain extent what's ironic is that the uk growth over the last 12 months to a certain extent has been saved by the eurozone. this has been the strongest eurozone growth we've seen since the financial crisis uk economy remains very well

integrated with the eurozone slightly ironic in the wake of brexit that that has occurred. in terms of upside, one impact of today's cpi print and yesterday's wages numbers is that we're beginning to see the real income squeeze on uk households ease a bit. real wage growth is turning positive that was a big driver of weaker uk growth last year certainly. consumption was about half as much as it was in 2016 so maybe there's upside in terms of the domestic demand story in the uk fiscal policy is also going to turn more supportive we have seen a big dialing back of austerity over the last 18 months about 4% worth of gdp of tightening that we had pencilled in pre-brexit has been taken out. there are a few bright spots the uk will continue to lag global growth. >> one final question on sterling to give you credit, one of your

march notes, there was a rally in the pound that we saw can you tell me what that will look like for the rest of the year >> in the near-term we're constructive one reason is that the bank of england is hawkish, sterling is correlated with rate spreads that should be supportive. brexit will be more on the back burner then in april you will tend to see a good month for pound the pound rallied in april further out the stories are probably more nuanced particularly against the euro. we're quite bullish on the euro this year. the flow picture in the uk is quite weak current account deficit is not improving. in europe you are seeing a current account surplus. further out i would be more cautious, in the near-term i like it higher >> thank you very much for that. oliver harvey from deutsche bank in london. let's look at european markets, the ftse is doing well right now, up more than 0.4%

in germany, the xetra dax up 0.3% in paris, the cac up 0.50% in italy, the ftse mib up 0.25%. looking at u.s. futures, looks like a relatively positive start to the morning a few hours out the nasdaq looking to open around 27 points higher. the dow jones about 10 or 11 points -- oh, 14 the s&p 500 looking to open up 5 points one of the shares to watch will be ibm. they dropped as much as 6% in after-hours trading last night after the first quarter profit margins fell short of expectations revenue did grow 5% breaking a near six-year streak of declines the profit margin dipped to 43.7%, down from 44.5 a year

ago. the latest results come as the firm tries to change strategy and focus from hardware and software to cloud computing and data analytics and cybersecurity. shares in goldman sachs also entered the trading session down despite the bank reporting gains in all four major business units. analysts cited concerns over the volatile nature of its core business wilfred frost has some details >> goldman sachs comfortably beat revenue and eps estimates but shares sold off due to questions of sustainability of the beat following the earnings call that is despite an impressive 15.4% rieturn on equity. trading the most in focus following disappointments last year and they delivered in light of a better trading environment. up 31% year-on-year compared to jpmorgan up 7% year-on-year. the 4$4.4 billion of revenue fo trading the best for three years. investment banking was solid

with encouraging pipeline comments, and investment management also strong despite the market volatility. the biggest aspect of the beat came in the investing and lending business, 2$2.1 billion of revenue up a massive 43% year over year. analysts feared how sustainable this beat was given a large part came from mark to market gains there was a 5 cent boost to the dividend to 80 cents however there will be no buyback next quarter, which took analysts by surprise and also accounted for the share price fall wilfred frost, cnbc business news. cnbc should get more reaction to those results later today when lloyd blankfein joins our colleagues in the u.s. for an interview at 2:30 p.m. central european time. facebook is about to ask its users if their data can be used for services like facial recognition in a move at complying with a new european

data law the social network said they'll ask users whether they will let facebook share information such as political and religious views as well. users in the european union will start seeing the request as early as this week to talk more about this, i'm joined by arjun kharpal. i mean, we talked about this a bit yesterday, some changes coming down the pipeline this seems pretty significant. do you think in the eyes of european regulators that facebook will be doing enough of this >> the general data protection regulation is the big new change to the more than two decades old data protection rule enforce in the european union that comes into place in may that gives citizens in europe a right to their data. they own that data the changes that need to be made are giving users more control of data facebook is saying you can see more of what we hold on you, you have more controls, we're updating our privacy policy, but

actually a lot of this is -- will probably just be enough there could be more. i tried using some of these new features, i found it difficult to find out specifically the data being held by facebook, and what ads they were targeting i feel like for gdpr this is something that is sufficient enough one of the more interesting parts of this, they're bringing back a feature called facial recognition. this is a feature they scrapped in 2012 in the european union because of the data protection regulations in ireland and because a privacy regulator said this is too much too much data. facial recognition, it's too orwellian. they said you have to scrap it and they did i reached out to the irish protection unit and

asked if they had conversations about this, and if they're comfortable about this being brought back so there's more questions here what will keep privacy activists happy? will it be every time you logon to facebook or suddenly there's a day facebook makes it when you logsented with a range of clear options if you do this, you do this. >> that's one part i feel like it's more extreme to the point where you can say i want to use facebook, but i don't want any advertising i don't want any data to be used for -- i think that's how extreme it is. >> if you made it that black and white who would suffer businesses would struggle to target and facebook would lose its business >> essentially its business model will be shattered. that's what it relies on that's how extreme people want to go. what really does need to happen is a more simplified, more black and white approach to actually

what data is being used. to go on there and have a one-stop shop and say this is what facebook is holding on me i want to know what you're holding on me. i don't want this to be disseminated anywhere. that needs to be the next step for now these changes will be sufficient i'm sure we'll hear noises from some european regulators in the coming days. >> tens of millions of users here in europe, thank you very much for that, arjun you can find out more about the privacy changes on our website, written by the master himself, cnbc.com tesla says it plans to increase production of the mod t model 3 cars by the end of june. that was before the company having to unexpectedly halt production for several days to upgrade equipment. the plan is to then move to a round the clock production, that's according to an employee e-mail sent by elon musk

cnbc confirmed the authenticity of that e-mail the news sent shares slightly higher in after hours trade after a slump on monday when that production halt was first reported german public prosecutors say they're searching sites in connection with an emissions probe involving porsche. another company facing bad pr is starbucks. it will close 8,000 coffee shops in the u.s. for an entire afternoon next month for employees to undergo racial tolerance training the company faced protests and calls for boycotts to the chain following the arrest of two black men at a starbucks in philadelphia. president trump has revealed his administration has been in direct contact with north korean officials. trump appeared optimistic about plans for a potential meeting with north korean leader kim

jong-un. hallie jackson has more details on this story overnight. >> reporter: dominating discussions tonight, not talks with japan's prime minister, but a different meeting that could come within weeks. >> i look forward to meeting with kim jong-un and hopefully that will be a success >> reporter: donald trump and kim jong-un face to face, maybe in may or june the president says as he confirms high-level direct talks happening now with the north korean regime. for the first time in nearly two decades. >> we've also started talking to north korea directly we have had direct talks at very high levels. extremely high levels. >> reporter: no north korean leader has ever met with a sitting u.s. president if donald trump does, it would be a major milestone, granting dictator kim jong-un the legitimacy he craves >> we have not picked the site yet. but we picked five sites where it's potentially going to be >> reporter: to pave the way, the north koreans are in talks with south korea, apparently

given the green light by the u.s. >> south korea is meeting and has plans to meet with north korea to see if they can end the war, and they have my blessing on that. >> this is usually something that comes at the end of a negotiation process. it's not something at the very beginning, which will only incentivize the north koreans to believe they have been accepted as a nuclear weapons state and will keep their weapons. >> that was hallie jackson in a related development, the "washington post" and "new york times" reported that it was outgoing cia director and nominee for secretary of state mike pompeo who met with kim jong-un in north korea the newspapers reported that the trip happened over the easter weekend shortly after being nominated as secretary of state. nbc news has contacted the white house and cia last night but both declined to comment we just got some headlines coming to us over the last couple of minutes. the russian embassy in

washington has received a liter from the trump administration saying that the usa had no immediate plans to impose new sanctions on moscow. that's interfax, the russian news agency citing a diplomatic source on sunday the u.s. ambassador to the united nations, nikki haley said in a media appearance that she was expecting steve mnuchin to announce new sanctions as early as monday. there was then a bit of a back and forth on whether she was confused turns out she wasn't confused. it may be the oval office was giving mixed messages. seems like that the u.s. has said they have no immediate plans to impose fresh sanctions on moscow. coming up, saudi arabia prepares to open its first cinema in 35 years that's amid sweeping nick reforms in the kingdom we'll head out to our new abu dhabi headquarters for more on that story

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. welcome back to "street

signs. former first lady barbara bush has died overnight she had been in failing health earlier in the week the bush family said she would not seek further medical treatment. she was known for her sometimes sharp tongue, her promotion of literacy programs and a fiercely protective nature when it came to her family. and saudi arabia will open its first cinema in 35 years later today with marvel's "black panther" said to be the first movie on show. the reopening comes as part of social reforms pushed by crown prince mohammad bin salman my colleague hadley gamble joins us from abu dhabi. are you planning a cinema trip next time you're in rehad? >> i might very well they're projecting as much as 4 $64 billion spent there over the

next several years in terms of creating the opportunities for people to really go out there and have that social life they say she need to develop their society. let's listen in to what the head of amc theaters told me earlier. >> we think demand will be staggering we are expecting this will be quite a lucrative opportunity for shareholders of amc entertainment. our plan is to open at least 40 theaters here over the next five years in about 15 cities across the country. >> adam, just how lucrative are we talking the saudi government projected they could spend as much as 64 billion over the next several years in the entertainment industry alone how much of a slice of that pie do you think amc will take >> well, the answer to your question is lucrative is defined as lucrative there are estimates that this market will have a box offic approaching $1 billion several

years from now as theaters open across the country we would like to get a 50% share of that. our theaters are quite profitable at the operating line what that translates to is amc operates more than 1,000 theaters in 15 countries but our 40 theaters in saudi arabia could be 5% to 10% of our whole company's revenue and profit generation >> so some very real opportunities for those in the entertainment industry, whether you're in theaters or looking at things like cirque du soleil coming to saudi arabia who would have thought a day would come when that would be happening. but saudi arabia under the leadership of crown prince mohammad bin salman is moving very far very fast >> you heard 40 theaters, and that would be a revenue driver for amc.

there must be others looking to get into that market >> it's a very good question we heard companies mentioned like disney, microsoft, opportunities for folks in the united states, that was part of this rollout of the downprinccr prince's visit to the united states it was going out to california, going to los angeles, really hitting up the folks in the entertainment industry he knows he has to move fast when it comes to developing saudi arabia and certainly he has to do something about that 5$500 billion mega city he want to build a big part of that is entertainment. >> hadley, thank you very much for that story one woman has died, several others were injured after an engine on a southwest airlines jet exploded in midair prompting an emergency landing at philadelphia airport it's the first deadly accident on a u.s. domestic airline flight in almost a decade. southwest airlines has promised

support for the family of the victim the ceo said there had been no problems reported with the plane's engine when it was most recently inspected on sunday awful story there. let's look at u.s. futures ahead of the market open in new york you can see the s&p 500 looking to open up 6 points. the dow jones very, very flat. you can see the nasdaq is looking to open into positive territory. looking to open up around 24 points some numbers to watch. one share very interesting will be ibm after they dropped more than 6% last night they failed to really meet peoples expectations looking at european markets briefly. the ftse 100 up 0.4% xetra dax in germany up slightly more than 0.10%.

in paris, the cac 40 up 0.3% the ftse mid up around 0.10% as well the dollar is having a strong day so far up around a quarter percent against the yen and the swiss. the euro and the pound both weak weak weaker the pound crashing there that is it for today's show in london i'm willem marx. "worldwide exchange" is coming up next. crohn's disease. you're more than just a bathroom disease. you're a life of unpredictable symptoms. crohn's, you've tried to own us. but now it's our turn to take control with stelara® stelara® works differently for adults with moderately to severely active crohn's disease. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower the ability of your immune system to fight infections and may increase your risk

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it is 5:00 a.m. in boston. southwest airlines stepping up plane inspections after an engine blew on a flight from new york to dallas yesterday one person died. cia director mike pompeo making a secret trip to north korea earlier this month to meet with kim jong-un good news you tax procrastinators, the irs extending the tax deadline to day following a massive computer breach at the agency. >> big blue investors seeing red. ibm shares sliding after the company offered disappointing guidance. the nation pays attribute to barbara bush th