welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines >> a bumper quarter for bp replacement cost profits surge 71% to 2$2.6 billion but the cfo tells us oil may not stay at these levels for long. >> prices today feel frothy at $75 a barrel it's driven by strong oil demand it is still tracking around 1.7

million barrels this year. benjamin netanyahu claims the iranian government lied about its nuclear weapons program. the european commission accuses the u.s. of prolonging uncertainty after the white house extends tariff exemptions for another month. brussels insists restrictions on steel and aluminum should be permanently lifted. apple shares buck the broader trend jumping 2% ahead of the quarterly report on increased optimism the tech giant could reveal a record breaking capital return plan it is labor day, which means trade volumes will be light with much of asia and continental europe out in asia, chinese, hong kong and south korean stock markets have

been shut. in europe, the only major equity market trading is in london. france, germany, italy, switzerland, spain, most of the scandinavian markets are closed. let's take a quick look at how the ftse is doing, given it's the one major index that's open. up 10 points a lackluster day mostly on bank holidays, days like this when continental europe is out, trading activity is thin. in about a half hour's time we'll get manufacturing data out of the uk. keep an eye on that. let's look at ftse's largest movers as well in the session. you can see right at the top we have marks ae& spencer up 1%. aviva up also. we have the underperformers still morrison's and tesco as

well given the price action we saw yesterday. bp opened higher after reporting its best quarter since 2014. it says higher oil productions helped to last earnings. production for the period rose by 6%. steve, our oil expert joining us around the desk. we're also joined by a member of the investment committee from carmenac these were stellar numbers out of bp today, in line with shell and other companies. it's not all about the rebound in the price of oil. >> it's not. it's about the conversion to cash flow. this is something analysts have been looking at.

they've said that's fine, let's turn this into cash flow would covers capex and dividends one number was moving slightly in the wrong direction, netgearing when you consider shell has been concerned about their net gearing. bp moving in the wrong direction that one came in at 2 8.1 by in large these were strong figures. on that gearing front, on that figure, concern about that but the cash flow figure blowing past expectations with a pred p pre deep water horizon number with a 7.1, 7.2. everyone has been worried about cover for the dividends.

so there's more appetite for these stocks with the dividend covered at a higher price and lower dividend yield 1% increase in the key figure to 2$2.6 billion u.s. dollars. we spoke to brian gilvary, he's the cfo. he's been in the business a long time he's been at bp a long time. we talked about the price and his concerns were surrounding the short-term oil price versus long-term. this is what he had to say about the price. >> in terms of how we plan our balance sheet, we're assuming $50, $60 a barrel. that's a good place for things to settle. it's good in terms of growth in the world, energy, and that will be important going forward right now you have to remember it was less than 18 months, two years ago it was $28 i traded oil at 9.60 -- >> did you buy it or sell it.

>> i sold cargo oil at $9.60, and we made money on it. it will go up and down people are focused on what happened in the previous three months i would let this play out. >> i remember oil at 9.63, but i wasn't buying it at that level it shows you where it can go to the down side. you can still buy and sell and make profit at those levels. depends on your costs. everybody is obsessed by the middle east, iran, saudi, what netanyahu has done and syria as well i thought in his answer when we asked him about geopolitics t underlined the key point, which i keep hearing about the oil price and geopolitics. it's not just about the middle east >> geopolitics is playing into the price. we can see that. if there were, i think, moves in

that way that would take more oil off the market that would exacerbate the situation a lot of that oil moves bilaterally to other places around the world, that creates a negative back drop in the oil price. >> he didn't mention it there, but it was venezuela he cites. iran oil, 4 million barrels plus it seems happy at the current level. venezuela lost 30% of its production we know how catastrophic the regime has been. they're at 30-year lows in production that's one area everybody is pointing out ubs is saying a valuation of 5.50 and a buy at a 13% premium. jeffries has a sold on the stock, price target of 5.40.

bernstein likes the outperform they say they handled downturns better than others and rbc capital markets also at outperform price target of 6 pounds >> seems quite positive from the analysts how are you thinking about if not bp specifically but the energy sector. >> we are quite positive on the oil sector it's one of the few cyclical sectors where we are positive in the context of an economic slowdown geopolitics is one thing, but it's more like an option value on the sector. what we have seen since the start of the year is there has been a lag between the performance of the oil companies and the performance of the oil price. we think there's still a very competing case for oil looking at stocks, our preference for u.s. shale

producers, where we think we have got greater upside in terms of production increase, but if anything i guess that one of the good news in terms of the bp numbers today and unlike the exxon numbers that we had recently is actually that the production numbers has been going up and has been resilient. so you have the double effect of capturing the higher oil price but not being hit on your volume side >> absolutely. we were just talking about some of the monthly performance and the fact that energy was the best performing sector in the s&p. on that note i will take a look at what the indices have done for the month of april so let's look first at some of the equity indices, see how things performed for the month of april ftse 100 was up 6.4%

of course that was belying some movement we saw in the currency. it was a volatile month as far as cable was concerned, specifically in the last couple of weeks which saw cable plummet. that's good thing for the uk index. you can see dax also was up 4% or so for the month. cac up 8% italy was up 7%, the best month in a while, this despite the lack of government information going on there very positive month as far as european indices are concerned let's switch and look at asian indices. the picture there, you can see the one laggard on the month was shanghai, that was down 2.7% let's not forget this came at a time of heightened trade tension, rhetoric between the u.s. and china that impacted hang seng, which had slightly better fortunes, up 2.4% kospi very much in the cross currents of those trade wars,

also up 2.8% nikkei had a strong month, up 4.7% this is one of the best months since last november, i believe so broadly positive for asia despite all of the noise that was coming out both geopolitically and with respect to trade wars. let's switch to u.s. markets there the fortunes were not so good for u.s. equities again, all three of those indices did eke out a positive return for the month despite the volatility we saw via the trade war rhetoric or the f.a.n.g. stocks, the cambridge analytica scandal that broke out you can see nasdaq just about ended april in the green, up 0.04%. dow and s&p were up somewhat in terms of sectors, energy was up 9.3% for april.

consumer discretionary, up 2.3%. to the down side, telecom was underperforming. industrials down 2.8%. consumer staples really did not have a good month at all in april, down 4.5% >> we talked about the markets let's talk about volatility. we have seen that uptick in volatility i wonder whether you think that's going to be a continual trend over the rest of this year >> i think it's going to be with us for quite some time the major shift since the start of the year has been this kind of gradual normalization of monetary policies. in this environment of tighter liquidity, probably we will have to live with volatility higher for an extended period of time >> i'm sorry to interrupt you here i will talk about one of your countrymen we can see french president emanuel macron arriving in sydney to meet with the australian prime minister,

malcolm turnbull they will talk about defense in the asia pacific region. this is not quite such a high-profile set of meetings over the next three days that we saw with his recent visit to washington, d.c. and president trump. but those are live pictures there. the middle of the night at this point with sydney and emanuel macron meeting with the australian delegation. talking trade and defense. let's talk about trade a bit we have seen the exemption for steel and aluminum, they have struck deals with argentina, brazil what is your outlook for global equities when you take into account what seems to be persistent tension over trade? >> i think trade is somehow a smoke screen for a lot of

investors and investors have been focused on those trade tensions but the issue of trade is obviously more complex than a few tweets by the u.s. president. you can see there's more global integration of the economies, which to a certain extent is supporting why we have seen this kind of delay in terms of implementing those tariffs people should be looking at the economy, together with the monetary policy normalization, which is creating probably a much more treacherous environment for investors than on the trade tensions which are making big headlines but not necessarily the main driving factors for equity markets >> you say we should focus on fundamentals, but if we look at fundamentals, two-thirds of the s&p have reported and 80% have

beat and equities are not rallying i wonder whether it's buy the rumor, sell the fact people had expected this to be a strong earning season. it happens but on a forward looking basis there's a bit of nervousness in the market. where do you think the nervousness is coming from if not trade wars >> it's coming from the combination of the economic momentum which is rolling over if you remember a couple months ago everybody was extremely bullish for the year to come everybody was extremely aggressive on their european perspective. and the latest numbers that we have seen are not bad per se but not as strong as what people were expecting that is first in line with what was our view at the start of the year which was the market got a bit ahead of itself. you have an almost of realigning

of the financial markets it's true the market reaction has not been strong, but there's been an element of freshness the companies which have done well compared to the ones not doing well have actually had some very diverging fortunes it's becoming much more of a stock picker market, where you are narrating the individual fundamentals of each company, and not in this risk on risk off market where everything is running higher or lower. so you need to be more active to generate returns, but it's not such a bad thing >> don't go anywhere stay with us we will take a quick break coming up, israel claims nuclear deception. iran dismisses those allegations as the boy who cried wolf.

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welcome back iran lied. those are the words of benjamin netanyahu after what he said was evidence of an iranian nuclear weapons factory. majority of the alleged evidence is from before the 2015 nuclear deal iran has dismissed the allegations as propaganda while some intelligence experts say the documents do not show a violation. netanyahu said iran had deceived the international community. >> iran lied after signing the nuclear deal in 2015, iran intensified its efforts to hide its secret nuclear program. >> hadley gamble joins us now. can you tell us what the iranian authorities have said in response to these claims >> aside from the fact that the

four ministers said this is the boy crying wolf, this is a rehash of old allegations, there's been a response from the head of that country's atomic agency let's listen to what he had to say. >> we hope we never have to come to this situation. we hope that mr. trump and his colleagues and his government come to his senses, do not create a headache or cause a problem for themselves or others >> you have folks there who see this is an escalation of tensions that they are worried about what the outcome will be in the arabian gulf, we have saudi arabia echoing these sentiments in terms of iran being the major state sponsor of terror in the region of course the bigger question is whether or not the european leaders who are speaking to the iranians over the weekend will move this forward in any

significant way and be abe to assuage the situation. it will be interesting to watch. heightened tensions in the region but nothing we have not seen before. >> hadley, thank you very much for that i know you'll follow events there closely. let's talk about the u.s. dollar because the dxy hit at 92. that's the highest level it has been since january so there is a strong bid for the green back emerging despite much of the market being bearish. it has staged somewhat of a remarkable turnaround in the last couple of weeks month to date the dollar index, for the month of april, it was up 1.9%. that is the second positive month in three, the best month since november 2016. so the dollar is staging a comeback here. let's look at uk spreads this is -- so we're looking at

the ten-year gilt and the ten-year treasury. the ten-year is still nug snugly below that 3% mark that's a mark many are fixated on on that note i would like to say a member of investment committee of carmeac is still with us we were talking about the fatigue in the market. as an investor, there are people talking about the ten-year yield breaking through 3%, are you worried we'll witness an era of extremely higher fixed income yields, or with the ten-year here it's not that much to worry about? >> it's clear if we have a rising yield continuing to grind higher, it will be a significant

headwind for the equity market our view is that we are probably past the worst in terms of yields grinding higher, in terms of the outlook for the second half of the year, that's probably for inflation to slightly moderate. also probably we might have clarity on the lack of accelerating momentum for the u.s. economy, which is a key conviction of ours that should help to keep the yields in check. i think one of the key issues for investors now is a correlation regime between equity markets and bond markets what we've seen since the start of the year is this correlation regime has been unstable we went from positive correlation in february, negative in march, and positive again in april so that means you cannot rely anymore on having bonds in your portfolio to diversify your risk

and manage volatility. >> we were talking about the slowing momentum of u.s. growth, but let's talk aboutthe slowin momentum in european growth. many people would agree that the u.s. is in a much later stage of the cycle than europe is but it looks like european data is slowing down as well. when you look at equities, the performance for european equities was much better than its counterpart for april. do you think that at least over the short-term european equities will continue to outperform? >> i think european equities like japanese equity are obviously extremely linked to the fortunes of foreign exchange it's a less typical case in terms of what's happening with economic momentum rather than what's happening on the fx so i would not try to capture

european equity market our view is that it's much more on a second torial basis that you should be positioned and we have quite a constructive view on the technology sector. unfortunately you don't have that many great technology companies in europe. so i think for this reason it's quite difficult to make an overweight case on europe. >> because of the small tech come pope's. >> speaking of sectors, the retail sector, we had this big amounsment me amounsment -- announcement coming out of sainsbury's yesterday, what do you think it means for the rest of thegross e groce groceries and others in the sector >> i think we've seen size did not protect tesco against smaller players like lidl and aldi two, i think what people have been missing is that one of the

main messages is actually walmart retreating from the uk market to fight amazon in the u.s. and managing digital transition i think this is a key message. what i see through this merger is a key message that technology is impacting every sector and every company. >> absolutely. thank you very much for joining us on "street signs" today coming up, exemptions extended president trump gives europe another month to try to broker a trade deal, but will it be enough stay with us crohn's disease.

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to any of its ingredients. we're fed up with your unpredictability. remission can start with stelara®. talk to your doctor today. janssen wants to help you explore cost support options for stelara®. welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines >> a bumper quarter for bp replacement cost profits surge 71% to $2.6 billion. but the cfo tells us oil may not stay at these levels for long. >> prices today feel frothy at $75 a barrel it's driven by strong oil

demand we have 1.7 million barrels a day of oil demand last year. it is still tracking around 1.7 million barrels this year. you have stronger compliance benjamin netanyahu claims the iranian government lied about its nuclear weapons program. the israeli leader's public denouncemente sanctions on tehr. the european commission accuses the u.s. of prolonging uncertainty after the white house extends tariff exemptions for another month. brussels insists restrictions on steel and aluminum should be permanently lifted. apple shares buck the broader trend jumping 2% ahead of the quarterly report on increased optimism the tech giant could reveal a record breaking capital return plan some dramatic numbers coming out here the uk april manufacturing pmi at 53.9.

against a poll of 53.8 look at cable, dropping against the u.s. dollar. >> what's interesting is most people expected there to be a rebound in the numbers after that beast from the east effect had been unwound we're not seeing that, which is more disappointing speaking of cable, let's look at other foreign exchange pairs starting with euro/dollar, you can see the drop there continues as well. euro/dollar is the weakest level in a while euro/dollar looks very close to breaking that 120 mark one question i raised yesterday on twitter is whether or not the move through euro/dollar through 120 would be more significant for the market than the move of ten-year yield through 3%. given that not many people have that trade on.

i would keep an eye out on that euro/dollar currency pair this morning. again, dollar strength is yet again the theme. dollar/yen charging higher, almost at 1.10 we spoke about cable, more disappoint be numbering out of the pmi. we said much of continental europe is out today with the exception of the uk and finland. you can see uk is up in today's trading, despite the weaker manufacturing data coming out and all the changes going on politically. switching to u.s. futures. it's the first day of the month. let's see how things are looking there. dow is seen opening up about 16 points weaker. s&p about 4 points higher. of course all of that may change in the next couple of hours or so >> president trump has extended the trade tariff exemptions for europe, canada and mexico for an

extra 30 days. these countries have until june 1st to make the exemptions permanent for steel and looalumm exports. the decision to extend the temporary exemptions came hours before they were set to expire late last night and late their week a u.s. delegation will be headed to china for high-level trade talks which may include discussions on steel the u.s. is prolonging uncertainty in the market by extending the trade tariff extension. in a statement the european commission says the bloc should be fully exempt from the measure because the tariffs can't be justified on the grounds of national security. our next guest has a lot of experience in brussels dealing with trade do you think this approach from the u.s. which to me feels like

a sword of damaclese hanging over the european bloc, do you think that will ever win people over >> can i apologize for my voice, because i developed a heavy cold overnight, but i'll do my best i'm not sure it's even as determined as a sword of damaclese. i think president trump didn't want to insult president macron and chancellor merkel but imposing the tariffs when they hardly got on their planes home. in fact, this month's postponement doesn't alter anything it kicks the can down the road >> allows him to save face more. >> it doesn't allow him to underline the issues >> you spent years working on

bilateral trade issues when you look at the current u.s. administration's approach to tariffs do you think the uk will have an easy ride when it comes to negotiating a trade deal after brek brexit? >> no, i don't and the people in the u.s. doing the trade negotiations are hard-nosed people indeed they are not sentimentalists they don't pay much attention to kiss and kin and old ties, that sort of thing. i think the uk is in for a hard time just as the experience on the transatlantic trade and investment partnership ran into very heavy difficulties at the eu level with the united states. i think the justification for

tariffs that trump is introducing is thin. there are three legitimate ways in which you can take action against what i might call unwelcomed or potentially damaging imports that is if the products are being dumped, if they're being sold in the export market at a price lower than the home market the second one is if there is evidence of illegitimate subsidy by the government of the exporting country. the third, if there's evidence of a sudden surge of imports >> which is the bush justification. >> y the bush justification, it was. back in the early '90 s. the trump justification is national security.

now the world trade organization does permit trade restricted action to be taken in the event of threats of national security. but that really only exempts armaments, and goods for combat. the trump justification based on the investigation that was carried out by the commerce department is that imports of steel into the u.s. of all sources were so damaging that they threatened the u.s. ability to defend itself that's the justification that justification has never been authoritytidetermined in t trade organization the wto has been careful >> it's a pandora's box. >> yes >> the wto has been careful not

to pronounce on member countries national security issues but trump has taken this into that field and the chinese have now issued notification of dispute proceeding proceedings. >> but the eu have said if the tariffs do get imposed, one thing they could do is go to the wto and raise a formal complaint. i wonder whether or not you think that will yield results given already the u.s. has a tenuous relationship with the wto. >> as i just said, the chinese have already given initial notice that they want to raise a complaint to the wto it would be precisely on this question of the national security justification i think that it's very uncertain that the wto would be able to make a definitive determination there. as i said, it's very eager on pronouncing member countries national security issues

>> michael, thank you very much. michael was talking about china's notification to the world trade organization, and alibaba's co-founder sawarns of timing of trade tensions he spoke yesterday >> in a way this trade war comes at an ironic time. we are in a time in history when china is shifting from a manufacturing export-led economy to a consumption driven economy. so there are now 300 million chinese consumers that are desiring and demanding to buy from all over the world. so there's great opportunity for producers from america, from europe to sell to china. >> interesting that he's saying that the trade war could hurt u.s. industries the most what do

you think? get involved in the conversation e-mail us or follow us on twitter, @streetsignscnbc or you can tweet us directly. coming up, apple is expected to shed light on how it plans to repatriate its overseas cash and what that could mean for investors. what to watch in the tech giant's quarterly report next. - 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.

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welcome back to "street signs. i want to recap what's going on in the uk. we've seen some big moves in markets, starting with cable foreign exchange that broken through the 137 handle that had previously provided a bit of support. then you can see we have firmly broken through that number, sterling/dollar is down 0.6% on the day. this is after yet another round of disappointing pm irks coming out of the uk. we just had the uk april manufacturing numbers, they came in at 53.9 versus 54.9 last

month and versus 54 54.8 expectation so a weaker number despite some people hoping this month we would see an uptick after the beast from the east effect would have been unwound. this is interesting coming up to the bank of england meeting next may. there most people had gone in expecting the bank of england to hike, hiking probability was about 90% just a month ago now it's dropped to as low as 20% chances of a hike. so quite a fall as well in terms of peoples expectations of whether or not the bank of england are going to go here i think mr. carney will have to answer questions in terms of guiding the market correctly given some swings we've seen >> let's look quickly at gilts ten-year gilts are -- seem to be somewhat unchanged on the day,

still at 1.42. that's the lowest level in a couple of weeks. all of this action is happening in the front end as people unwind and take out the possibility of further rate hikes from the bank of england in the next couple of months the cma will make its final decision today on the 21st century fox and sky merger in january the uk market watchdog provisionally found the deal not to be in the public interest, but extended investigation for another eight weeks. since then fox has attempted to assuage regulators, trying to get sky news to sell to disney comcast, the owner of cnbc, submitted a higher bid of 12.50 pounds per sky the competition regulator will report to the culture secretary who will make the final decision >> the strength of sky sports is a key reason for the overall group strength and is at the center of this bidding war

the premiere league rights are the backbone of that business. those rights have been rising significantly in value over the last 25 years. the most recent action saw sky pay 3.579 billion pounds for just 128 games over a five-year period, you can see shares in the pay tv broadcaster, they've shot up over 60% a lot of that in the last few months our sports reporter joins us on set. this is a startling set of numbers. >> absolutely. it's down on the previous deal so everyone thought they were going to have to pay more. but they have paid less this time around to give you an idea of how much they value the premiere league, sky pays 15 million pounds a year to broadcast the open championship, one of the four golf majors of the year a real prime event 9.3 million pounds per game in

the premiere league. astounding amount of interest in the premiere league from sky it's integral to their whole being, so much so they renamed one of their sky sports channels, sky sports premiere league >> part of that came because bt entered the market and forced them to pay a higher price >> they still got a lower deal in the end >> in the end, both sides understood this was really silly money. >> it just kept going up and up. sky showed their hand by showing how important premiere league football is to them. it's the biggest league in the world. the premiere league saw fit to do away with a sponsor for years it was sponsored by beer companies, credit card companies, banks, now it's their own brand.

they make sure they're seen as their own entity around the world. a and it is the most successful league, most competitive league. >> when you talk about it being global, it's not just in the uk where sky is paying that amount of money it's broadcasters in many countries across many continents willing to pay that. >> you see that around the world globally clubs will go on preseason tours to the states, to the far east open bus tours for leicester city they had open top bus parades with thousands of people liverpool went to australia a couple years ago 90,000 liverpool fans in melbourne. you don't think those numbers would stack up

imagine there's a few aussies enjoying football down there the premiere league is around the world. they will go on the charm offensive. manchester united going to america again to spread the good word of the premiere league. >> football fans are everywhere. flying back from milan, there was a whole flight of football fans on my flight. no wonder it's so popular. >> apple is set to report its second quarter earnings later today. investors will eye apple's iphone sales after key parts suppliers showed weakening demand, but opens derahop theree optimism arjun kharpal is here. >> the revenue picture has been driven by iphones, the key product for apple.

there has been a lot of concerns about the iphone x and the broader iphone portfolio and how well that's been selling that will be in focus as well as that key average selling price figure that many investors will be watching. the super cycle that many poke about last year has not materialized yet so we will be listening for guidance as to what could be the future of iphones. the second that has been driving revenues is china. apple struggled there, but in recent quarters they have seen a recovery we are hearing signs that this market is slowing down that could be a huge concern for apple. services revenue that means apple pay, that means apple music and many other products that apple offers on the side. that's a key driver of growth for apple. that is an increasingly key business for the company investors will be listening for

the cash decision what will happ apple do with the 285 billion it's repatriating what will the new products look like we're hearing cheaper iphones may be on the horizon. and finally will the iphone x be scrapped just a quick look at the chipmakers some of those are sharply lower, particularly ams, a key supplier for apple. back to you. >> happy to say the director of product management from exponential etfs joins us on the line to preview the apple earnings coming up in a short while. good morning to you. apple has been dominating in the

smartphone market. about 50% of all smartphones bought in the last year were iphones. now we're seeing the rise of other players like samsung how much of a threat do you think the rise of other people will pose to apple's business model? in the domestic market in the united states, i don't think that will be an issue. they have a strong hold here, especially with the ecosystem they have built. in some key growth markets like china, that will be a big threat to them especially as some of these other providers like samsung or small procedure ver s have much better price points. so that will continue to be a struggle for them. so we will look for guidance on apple services, itunes, icloud, apple pay, and how that could lock in other users in those growing markets to keeping the

ios system or engaging with it for the first time >> one other element that investors are watching out for is what they're going to do in terms of buybacks. and there's been a lot of speculation that they'll bring back 1$100 billion plus in repa think the market needs to see in terms of numbers to support the stock here what is the buyback number people are looking for and is there room for disappointment? >> arjun touched on a lot of the things we're looking at here in regards to cash utilization, it's not just the repatriation of the cash itself in the first quarter they announced that apple is looking to become net cash neutral, so they want to include cash and debt and have a zero balance there. i think people are specifically looking for something, maybe not a buyback number, but they're looking for cash to come back to the united states whether that takes the form of buybacks or a

dividend, people want to see better utilization right now it's not necessarily benefiting investors i wouldn't say that any number would be particularly disappointing. they're just looking for any number at this point >> you mentioned services, with this cash coming back to the u.s., do you see apple looking to invest more in original content, maybe gaming around the augmented reality narrative that they've been talking about as well or do you see perhaps some acquisition potential here with some of that money being brought back >> it will be interesting to see them delve into things like gaming that's not traditionally where they have been growing their content and how people people engage that content will be key i would say if they're going to enter a new market like gaming,

they probably would do it through an acquisition, however it's going to be a very targeted approach that they'll take >> charles, we have to leave it there. thank you very much for joining "street signs. that was charles ragauss from exponential etfs arjun, thank you very much a look at u.s. futures briefly. looking to open very softly ahead of the open here that's it for today's show i'm willem marx. >> i'm joumanna bercetche. "worldwide exchange" is coming up next. ahh... summer is coming. and it's time to get outside. pack in even more adventure with audible. with the largest selection of audiobooks. audible lets you follow plot twists off the beaten track. or discover magic when you hit the open road. with the free audible app, your stories go wherever you do. and for just $14.95 a month you get a credit,

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good tuesday morning it's 5:00 a.m. at cnbc global headquarters here's your five at 5:00 number one, president trump extending steel and aluminum exemptions on several key u.s. allies bp shares are popping after the oil giant posted a jump in quarterly profits. china's hna dropping its bid for anthony scaramucci's sky bridgeap