welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines apple silences the critics for now as the world's most valuable company launches a 1$10 billion buyback and posted and earnings beat. and european chip stocks catch a bid with dialog semiconductor spiking to the top of the stoxx 600 on the back of bumper apple numbers ocado delivers

shares rise after they sign a deal with sweden's ica to develop its online business. and shares of vivendi hit a high note after revealing they will look at options for their music subsidiary later this month. all right. we're just getting numbers out of europe. we got the final manufacturing pmi numbers for the eurozone for the month of april, that came in at 56.2, versus the 56 flash number still down from 56.6 in march. so, weaker than it was in march, but still stronger than the flash print. to be honest, your dollar has not moved so much on this news the big number you want to watch out for is in anhour's time when we get the gdp print.

that is expected to dip at the flash ggdp print shares in chipmakers and apple's german listing are trading higher after the iphonemaker posted its best ever second quarter they announced a 1$100 billion share buyback and raised its dividend by 16%. i'm happy to say arjun kharpal has more on these numbers. >> apple was up after hours yesterday after its earnings reports. the 1$100 billion share buyback front and center of that report and the announcement from apple. that was key, there has been no timeline yet but there's been some tax reform out of the u.s apple has been very aggressive on its capital return strategy just returning 22$22.8 billion

back to shareholders the report for a quarter of buybacks for apple let's move to another number the market was watching, iphone sales, we saw revenue up about 14% for iphone sales which suggests that those higher-priced phones, the iphone x and the iphone 8 plus were being sold more. tim cook says the shoppers chose the iphone x every week. another important number was the services revenue at $9 billion that was up about 31% year-on-year that is important for the company. as the market slows down for iphones, apple uses to monetize that through apple pay and apple music. total revenue at 61.1 billion.

there's a revival in china we're seeing for the smartphonemaker some other products like the apple watch and the air pods continue to rise guidance remains strong for the company. that's why those black clouds over the company managed to fade away a bit the share price was a collective sigh of relief from investors there after the earnings report. back to you. >> thank you very much we are joined by bill street, head of investments for emea state street global advisers big buyback for apple. we've seen a lot of these from u.s. firms on the back of tax reform that's your takeaway four months after the tax reforms were passed by the congress >> i think it's very interesting balance between fiscal and monetary policy. as we see tax reforms coming in. >> they will have a significant or macro impulse at the u.s.

corporate environment. from our perspective this has given us a good leaning into u.s. equities versus european equities, though we still like global equities per se we would be leaning far more into the u.s. at the moment as the fiscal impulses develop. >> also the numbers are still there as well. i was reading this morning that combined facebook, apple, ama n amazon, combined have revenues up about 30% for the first three months of the year that tells you the tech sector is actually still showing numbers, producing revenue and i want to bring arjun in as well on this conversation. it looks like most peoples expectations of a weaker quarter as far as the f.a.n.g.s are concerned have actually been dispelled somewhat most of the analysts notes i'm receiving are actually still positive on the sector

>> i remember having this conversation end of last year wondering if that f.a.n.g. leadership could continue. at that time i pointed to the companies with huge user bases you think of 2 billion users on the facebook platform. billions of users using google services these are huge markets these companies can monetize the problems have been individual in each name. you look at the smartphone slowdown for apple, which apple seems to have been weathering. for facebook it's around privacy issues, for google, it's spending, concerns over privacy. they do have some of their own issues to work through if you look at the underlying growth of these companies, they continue to be strong. >> people are knit picking at these numbers, because they are strong even on the iphone sales growth, there was revenue but in terms of the actual number of appliances sold, that was

positive people are saying this is perhaps the high water mark of the year we saw that with caterpillar and then subsequently the stock sold off aggressively we saw it with boeing in yesterday's price action what is your take? do you think going forward it's tough to be optimistic given how strong the numbers are in the first quarter that ultimately anything from here on will be a disappointment >> i don't think so. our back drop for the u.s. economy is still positive for 2018 fiscal drivers will be supported. we do think earnings will be robust throughout the year then you have the tech sector. you were mentioning a lot of skepticism about the saturation of technology and competitive forces within that you can see the f.a.n.g. companies they are managing that very well. able to deal with that saturation and criticism >> all right stay with us we'll have more on the tech sector later

of course speaking of the tech sector, snap shares sank in late trade after a redesign of its snapchat messaging app disappointed some users and advertis advertisers. the company says revenue growth is expected to slow as facebook continues to compete with similar features the number of daily active users on snapchat did increase to 191 million at the end of march but still fewer than the 194 million expected we are talking about the number of daily average users here. in the context of facebook, facebook has 2 billion users globally 1.6 billion monthly users. that really speaks to the strength of facebook and the fact that it managed to rebalance so so quickly from the lows we saw a couple weeks ago because of the sheer amount of users they have on their platform >> they're dating into the dating game. the company will launch a new

feature. the news helped to lift facebook stocks, but shares in online dating giant match plunged 22% mark zuckerberg promised to build the feature with an emphases on privacy, not a huge surprise as they continue to deal with the data breach with cambridge analytica. and amazon prime members will get 10% off whole food products that have already been discounted head to cnbc.com for more on amazon's efforts to disrupt the grocery industry let's check in on how equities are doing this morning. we had a slightly weaker day for asian equities also the dollar is at a four-month high. that's having an impact. all eyes will be on the fed meeting later this afternoon they're not expected to hike,

but the market will be looking for guidance on growth outlook from here. we have seen a bit of a slowdown in u.s. growth in the first quarter as well as any guidance on inflation but the picture for european equities this morning is positive we have the euro 600 trading up. ftse 100 is also up by 0.60% data in the uk has been weak as of late. as you can see, xetra dax is leading the charge up 1%. let's not forget we have the eurozone gdp numbers coming in in an hour's time. all eyes on that ftse mib also having a good day, up about 160 points. let's switch sectors the leadership this morning is coming from basic resources. big rebound there. up 2.3%. autos as well. autos and technology staging a

comeback technology sector has been aided by stellar earnings coming out of apple and underperforming a bit, the food and beverage sector and telecoms which continues to underperform over the last couple of sessions or so happy to say that bill street, the head of investments from state street global advisers is still with us. one thing i did not mention is the fact that dow's intraday trading was still volatile at one point the dow was down 300 points for the first day of the month. still managed to end up around that zero line the point is intraday volatility is picking up a lot on equity indices. i wonder how you trade around that as an investor, and how you have had to realign your portfolio to account for the fact that intraday volatility has picked up so much and that will eat into some of your risk/rewards >> it's an interesting point it's a welcome to the new normal

stock investing. it's a new normal. i think we've been in a decade of abnormally low volatility that's partly due to the monetary policy environment. but this volatility function in the stock markets globally is a mean reversion of long-term volatility levels. so to your point, i think investors now need to be much more idiosyncratic focused more forensic about their portfolios we have had significant beater rallies over the last ten years in terms of equity markets this volatility is bringing back a healthy sort of efficient of capital within the equity markets. i don't think it's a bad thing it's a function of tighter monetary policy. a bit more inflation and i think investors need to be much more aware of the volatility function if you'd like of their portfolios >> just reading a note that you sent across, this is quite interesting. you say as we see norms

overturning across tax and trade conventions, wpeople need to rethink winners and losers is there going to be a rise in tariffs, is that how you're thinking about it? >> we're balancing off it segues into the policy point as well. the balancing of policy and fiscal policy. who are winners of a more accommodative fiscal environment with trump's tax reforms there are sectors that will benefit. have better headwind or tailwinds from the drop in tax and sectors that are less beneficial we like the industrial sector, the manufacturing, transport sector we like the u.s. over the european equities at the moment. a lot of that is a differential factor of fiscal and monetary policy >> also again the -- to your

proportion of the tech sector within u.s. equities as well going back to that as well something else that stuck out to me from your notes, with some of these companies driven by intangibles you need to think of a new way of analyzing these stocks, and many are not pulling in a profit. eventually we saw amazon raise its growth margin, still thin margins compared to other businesses, how do you go about analyzing growth stocks with such a huge amount of intangibles? >> i think there's a theme that will play out there 2018 and going forward. as we have this breakdown of returns, and you look into the tech sector we have seen this enormous rise of intangible versus tangible assets how we look at our stock portfolio is going to be of heightened importance and really

understanding the value of things like ip, the life cycle of that ip and the capitalization of the cost of that ip on to balance sheets part of it is subjective and part of it is going to be objective analysis so expect a lot more forensics on what is constituting some tech balance sheets and whether we're being realistic and conservative enough about how we're valuing that intangible asset. the growth of that economy is huge >> absolutely. bill, have to leave it there thank you very much for joining "street signs" this morning. that's bill street from state street global advisers feel free to get involved in the conversation we're on twitter, streetsignseurope@cn @streetsignscnbc. coming up, we'll pespeak to andy halford. and don't miss our conversation with mark mobius, our interview is at 11:30 cet.

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welcome back to "street signs. john mcfarland says he has no plans to step down as chairman of barclays after saying he would leave the job early. the bank faced uncertainty over its leadership following a misconduct inquiry over jes staley mcfarland made the comments yesterday. standard chartered reported a 20% rise in pretax profits beating expectations it cited a surge in loan demand and improved asset quality the banking group reported a cet 1 ratio of 13.9%, up 26 basis points since the end of last year we're joined by andy halford chief financial officer of standard chartered your impairment charges, they're looking better still talking about tens of millions of dollars. looking to reexpand business

into areas that you left, territories that you left. what guarantee do investors have that these days standard chartered will be a more responsible bank with its money in terms of who it lends to? i know you announced a raft of measures what guarantee is there that measures will work >> the focus is on the territories we're operating today. we're not looking to expand outside of those at this point in time. we're sticking what we do well and trying to do that better that should provide reassurance. we have seen a good trend on loan impairments over the last couple of years. we're focused on that. it's been a major driver of improving profitabilities in the business >> in the past you got badly burned by your exposure to things like diamonds you loaned billions to those involved in that business. that didn't end well what safeguards do you have against future exposure problems >> we have done a lot of work

having learned the lessons of what happened a couple years ago, so the visibility across the business now of the level of exposure we're prepared to take to each individual sector is much heightened. the standards there are very, very closely scrutinized the chances of something like that happening again are very, very low >> one more question on the numbers. you went for a period of negative returns on equity you have this target of 8% you're at 7 and change now why won't you give a timeline for when you hope to achieve that what's the point of a target for investors if you won't give a time scale >> are some factors which are totally outside of our control if interest rates were to rise across the globe very, very quickly, that will make it much easier to achieve it if the opposite happens, it will take longer. to put our name to a specific timeline when major factors are not within our control is tricky so we're saying we'll get there

as fast as we possibly can it's been an encouraging started to the year. we are clearly on that track we will get there as fast as we can. that's what the focus is on. >> i want to ask about some of the bright spots one of them is the wealth management division which is doing extremely well so far for the first quarter. that's been driven by the retail component. i wonder what your guidance is for the rest of the year and whether you expect that wealth management division to continue to do well for the rest of 2018. >> yes there were two particular parts of the business that did really well. wealth management where we saw 28% increase in income, and also on the cash management side of our business, which also saw a 20% plus rise. those were the stand outs for it on wealth management we have benefited from a lot of actions we've taken, but also benefiting from buoyant markets

even though early in the quart tler wquarte there was nervousness in the market, there has been some good results in that part of the business >> when we spoke in fab, standastan february, there was some concern back then that perhaps you were not paying out enough. today your capital position is in a much better place than it was. should we start to expect bigger buybacks or bigger dividends in the future >> i think markets will always want more. that was not a total surprise. it's clearly very helpful to see the profits going up significantly. so 20% increase the capital ratio now at a much higher level than we've had before. so next decision on dividend will be taken in july. and the board at that stage will look at all the factors and decide what it should do >> still operating on this position of an independent monitor assigned by u.s.

authorities. this dates back to 2001 and alleged misdeeds at that point i wonder, 17 years later which is pretty shocking in any stretch of the maj anything timn you explain to me why you guys can't get out from under this cloud? >> i'm not familiar with the 2001 date. we have monitors in. we are making good progress, but these are very, very complex issues >> you keep pushing back the timeline late last year it was stretched to july this year is it you guys dragging your feet or is it the authorities being difficult to dole wi deal with? >> no, it's just complex issues. it takes a lot of time to get there. we have been noticed by the monitors as having made good progress we're just not quite across the line yet >> one final question on the macro environment. you are very much geared towards

the loan business now, particularly in asia do you get the sense that perhaps some economic slowdown and tighter credit conditions in china is having a spillover effect into the asian economies that you lend into >> i think everything is relative the rate of growth of the chinese economy is still relative to most of the countries on the planet, extremely strong even if it's slightly moderated, it is not significant. so, no we are not seeing a huge change at this point in time we still see good business confidence and we're fortunate that our businesses is mostly anchored in fast-growing economies around the world >> andy, we have to leave it there. that was andy halford. elsewhere in corporate news, novo nordisk opened sharply higher after posting better-than-expected first quarter earnings net profits rose to 10.75 danish

krona. the company says it expects robust sales growth in the future but warns intensifying competition and price pressure, it will have some effect our colleagues on "squawk box" spoke with the ceo of novo nordisk and asked about the impact of the new healthcare legislation in the u.s >> this quarter we saw a new bill passed that moves on more costs to the drug manufacturers in the medicare part d segment, and still there are fundamental changes in u.s. healthcare system that talks about how can more rebates be passed on to patients so i still think there will be some reform initiatives to go on to get to a more sustainable healthcare system. but i think the latest initiative passed on a significant bill to the industry of drug manufacturers. so i think hopefully next time the reform will go somewhere

else and hugo boss sales rose 5% in the first quarter boosted bay rebound in china and the americas sales came in just below analyst expectations, but the german fashion group confirmed its outlook and expects revenue growth to accelerate in 2018. coming up, a june hike is on the table a result from cnbc's fed survey are coming up as we await the fomc decision later today. "street signs" will be right back 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?

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welcome back to "street signs. i'm willem marx. >> i'm joumanna bercetche. these are your headlines apple silences the critics for now as the world's most valuable company launches a $100 billion buyback and posted an earnings beat. and european chip stocks catch a bid with dialog semiconductor spiking to the top

of the stoxx 600 on the back of bumper apple numbers and the finance minister of saudi arabia it's a the comeback ins will not derail the kingdom's reform efforts >> we will build reserves and continue our reform. and the u.s. extends a deadline for rusal and imposing sanctions on them last month let's check in on how markets are doing. most of the markets yesterday were closed for labor day. we're seeing a comeback in the markets that were closed, with them respectively all having rather good days xetra dax leading the charge there up about 135 points. ftse 100 up also 0.6%.

i said this again, i said this before and i will say it again, watch out for the eurozone gdp print. there's been focus on how european economic data has been doing for the first quarter and in a half hour we will get some firm indication from the numbers on what those numbers do actually look like switching to foreign exchange. all eyes going into the fed will be on the u.s. dollar, which is at its four-month high that's having an impact on various pairs. euro/dollar is close to breaking through 1.20 looks as though the dollar strength is continuing into today's session with the exception of dollar/yen, then cable is one to watch. it has bounced a bit, but we've broken through key levels, through 137 and is now around that 136.40 mark some technical indicators are pointing to further downward moves from here. now that most of those key

levels, resistance levels have been broken through. just one last bit of information before we move on. let's talk about italy, because italy was the soft spot in a general slowing of final pmi data france saw the readings revised upwards, while final german manufacturing pmi came in line at 58.58.1 let's look at u.s. equities now. and looks as though the day will be slightly firmer dow was seen opening up about 18 points higher. s&p opening up about 3 points. a lot of the emphases has been on the tech stocks, which is one

reason why nasdaq did outperform counterparts in yesterday's trading. for the day yesterday nasdaq ended up 0.9%. apple earnings came out after the close. no doubt that's expect to give further impetus to u.s. equities in the later session, and of course all eyes on the fed >> it could be stay in may and jump in june for the federal reserve. results of the cnbc fed survey shows little expectations for the central bank to hike rates at its meeting this week however those chances rise to 86% for june the real debate is still focused on whether the fed will raise rates once or twice more after that steve liesman has more >> reporter: the way the cnbc fed survey finds interest rates and expectations for inflation both rising. the federal reserve is not expected to raise rates tomorrow, but 86% see a rate hike in june the 37 respondents see at least

one more hike after that half say there will be yet another hike making for a total of four rate hikes from the fed this year. part of the reason is most see inflation rising respondents raised the consumer price index or cpi price forecast for 2018 in four of the past five surveys. year over year inflation is forecast to hit 2.45 this year an remain there for 2019 the concern over higher rates has led to the downgrade of the outlook for equities for the second survey in a row this follows a string of eight straight increases earlier this year where the bullishness peaked in january. the current outlook for the s&p 500 is now 150 points or 5% below the outlook in january the probability of recession in

the next 12 months remain low at 16.5%. the biggest threat to the expansion protectionist trade policies and rising interest rates. concern for american free trade has written and 58% say president trump's trade policies are bad for growth what is interesting about this is it coms fres from a group whr 57% approves of the president's stewart ship over the economy over all >> the head of g 10 fx credit research joins us. there's been a lot of focus on the economic data. q1 data slowed down a bit. we got inflation numbers close to 2%. do you expect there to be a change in statements >> only minor tweaks to address the slowing economy at the start of the year, and potentially recognizing that inflation expectations have recovered. one interesting addition to the

statement may be a recognition that financial conditions in the u.s. tightened quite a bit since they last met in march the dollar rallied significantly. the stock markets have gone nowhere. that kind of dpifs you a tighter financial conditions do they want that to continue into the june meeting? my hunch is on the whole the statement may come as underwhelming for those that are expecting that there will be more repricing of the fed rate hisi hisi hike risk. the theme today could be taking profit on the long dollar positions we've seen investors building in resen daycent days. so cautiousness as it may come across underwhelming for the dollar bulls >> the dollar was helped by month end which gave it a bid for the currency >> and thin liquidity likely exaggerated the moves. >> the market is pricing a 40%

probability of four likhikes ths year do you think that's fair >> our call is four rate hikes in total three additional hikes i think depending on how the markets take it, the fed may well stick with its two additional rate hikes plan as implied by the dot plot what we are seeing in terms of stock markets, if you compare dividend yields with treasury yields, still arguing that stocks look pricey for now so further repricing of those risks in the rates markets may trigger a correction in the stock markets here, notwithstanding any improvement in the economic data so this puts the fed on hold or makes any rate hikes from here at a gradual and not as aggressive >> one question on the dollar. u.s. officials preparing to travel to china for high-level talks. one assumes that will include trade. what will you be watching for out of that? >> clearly the expectation is

that the chinese in particular may show themselves as more forthcoming when it coming to the u.s. demands and the u.s. has been quite explicit about what they want from china, one of their main trading partners the risk is that the trade war will escalate further, and that to me is an important dollar negative, which the markets have been ignoring for the time being. and that may actually bode ill for the dollar after that the conclusion of those talks later in the week. >> i want to ask about one of the more exciting currencies over the last couple of days, cable. a big move down. we did also get the pmi construction numbers about ten minutes ago. they came in higher than expectations but march was weighed down by the beast in the east. so we've seen a bit of a balance in the currency there. where do we go from here >> the pound is in for a bit of a correction higher.

the rates markets priced out any chance of a rate hike next week and the first rate hike expected in november. things are not that bad for the pound. holding on to any position has proven difficult given the intraday volatility. so there may be buying opportunities if those negatives i mentioned come to hone the dollar once again. focus on the inflation report next week. that will lead to further rate hikes from here. so we could see a front loading of rate hikes to august from november so i'm cautiously optimistic on the pound at current levels. >> interesting a bit of an anti-consensus view. people are turning bearish here.

very high level talks going on about the customs union. >> is the case on the whole we expect the political uncertainty in the uk to result in a more benign brexit outcome. so the ruling conservative party may be forced to agree to a more benign deal for the uk economy as a whole i have to stress that at present brexit headlines or brexit development has taken a back seat i wouldn't expect them to resurface as an important driver for the pound until october when we have to have a deal opt irish border, the customs border for the time being focused scarily scar squarely on the bank of england, and investors may be overdoing it when it comes to rate expectations the bar is low for hawkish surprise by the boe next week. so i think the bar has been lowered significantly going into the may inflationary report.

>> one quick question. we have not talked about the euro yet we saw the performance over the last week. what's your prognosis for the last few weeks >> we will be rangy, similar to the pound. the grbroader theme may be that the dollar corrected coming from an oversold territory in the first quarter, the dollar has regained some ground, i think that correction may have run its course. i do not think the latest data which most clients seem to think -- disappointing data out of the eurozone is the reason for the euro under-performance, i don't think that will derail policy normalization key there is inflation data going into may we expect inplace to rebound most importantly is the june ecb meeting which may provide clues for the way ahead on how the ecb wants to approach the end of qe tapering and policy normalization. down the road we have euro trading higher including against

the dollar our longer-term view is bullish. it's just picking the bottom here current levels may represent interesting buying opportunity against the dollar >> thank you very much for that. we have a euro bull and a sterling bull that is surprising for this morning thank you very much for joining us our colleague, steve liesman will speak to san francisco fed president john williams on friday that is williams' first interview since being named the president of the new york fed. >> just some news coming across the wires from italy and from rome, from the palace where the italian president, sergio mattarella resides he says he does not want to see early elections in italy two days ago we heard from mr. dimaio saying he would like early elections.

the challenge there was getting them done before june 24th, that's the last possible date before the italian congress goes into recess. he is saying he would like a new government in place at that point to pass that 2019 budget whether he will get a deal seemingly looking distance at the moment remains to be seen. and paddy power shares are under pressure after first quarter earnings fell 6% as new betting taxes, levees and start up losses in the u.s. weighed on results. but the company is more optimistic on the full-year and has forecasted something between a slight decline and a 5% increase the bookmaker announced it would start share buybacks and return 500 million pounds to shareholders within the next 18 months >> you love a good share buyback. vivendi will decide on the future of its universal music

group in a board meeting the idea of listing the unit separately has previously been floated. vivendi covers artists like the beatles, taylor swift and rihanna. ocado shares are rising after signing a partnership agreement with ica to develop its online business. ica is sweden's leading grocer with a share of 36% of the market together the two companies say they will develop ica's first customer fulfillment center and ica will use ocado's smart platform technology. this marks ocado's third deal with an overseas grocer. >> big deal for them they're selling overseas we'll have more on the big stories after this break

reforms will continue and they will not be destabilized by the rise in oil prices that's according to an exclusive interview held this morning. hadley gamble has more >> what we've heard in our exclusive interview with the finance minister is they are on track with reforms and that oil prices whether they go up or back down will not be halted by what they want to do with vision 2030 >> i assure you that there is a lot of excitement about reform when you see results you get more energy to just do more. you can see it's working so it's not really about the income income is one half of the story.

the other half is making sure we will have a sustainable income and sustainable economy. we want to have an economy that creates jobs so there's a lot that is taking place. i think some of us obviously spend a lot of time in the office and travel as we have just spoke before we recorded it's extremely enjoyable, i can tell you there's a lot of excitement. the reaction from the youth is very positive. goment activity is starting to yield real results you can see growth starting to kick in. >> he also said that this is a country on track to bring -- or reduce the deficit to 7% of gdp. this is a country's stock market

is the second best performing stock market in the world, second best to only egypt, this is surrounding the emerging market msci rating that will happen later this summer, it's important to note not just what happens next in saudi arabia but what this means more globally. one things that could put the brakes on this, the iran versus saudi arabia narrative what will happen to oil prices listen to what he had to say about that >> it's important to note that this region has been through a lot of waves of geopolitical tensions and certain cases over the last 40 years have seen wars. and we will -- our economy has weathered this without really significant impact we've seen a couple of wars, some of it with our troops

involved in these wars i think it's an economy that's very strong, very solid. relationship that is very solid. government that is very solid. i'm not worried about the long-term impact of any geopolitical issues. we need to make sure we're ready, we assess risks and we work with our allies and partners and friends in the region to contain threats in the region >> saudi arabia on track to reduce their deficit to 7% of gdp. also whether oil prices will go higher or not, the finance minister saying reforms will continue that won't stop their efforts to reform they want to make sure the

banking sector here and also talking about earlier today we were sitting down with him in our exclusive interview and he was telling me whether oil prices stay higher or not, they will continue to tap international bond markets, local bond markets in the way they want to keep this economy liquid you can see this behind me this crowd here, this is the biggest crowd i've seen gathered in riyadh for a conference like this one all the excitement off of the back of that fii conference last year seems to be continuing despite geopolitical headwinds >> hadley, thank you. the u.s. treasury has given investors an extra month to divest russia's rusal. last month russia imposed sanctions on the controlling shareholder in both companies. he agreed to cut his stake in en plus in a bid to release both firms from sanctions

shares in enplus are sharply higher on the news the u.s. is not looking to change anything dramatic as it wants to make things more open the u.s. treasury has given investors to divest from -- i will try to bring up some of the news here on this trip to china. robert lighthizer will head to china alongside treasury secretary steve mnuchin and commerce secretary wilbur ross we have been hearing from lighthizer about nafta he says this deal is not reached in three weeks, approval for an agreement could be on thin ice in congress. we also heard from the german economy minister, he called on the u.s. not to increase tariffs saying fewer restrictions are needed in global trade speaking to cnbc, the commerce secretary, wilbur ross warned that tariffs could come very

soon >> i done think we have any intention of protracted extensions that defeats the whole purpose eu is around 15% of all the steel we bring in. if we're going to impose it, we have to do it soon, or else people will start gaming the system >> and in some more tech news, snap chairs sank in after hours trade after a redesign of its messaging app turned some users and advertisers off. the company expects revenue growth to slow as it deals with competition from facebook which is adding more snapchat like features the number of daily active users on snapchat did increase to 191 million at the end of march but still fewer than the 194 million expected european chipmakers are trading higher after apple reported their second best

quarter. apple raised its dividend by 16%. this marks the company's largest ever increase in capital returns to its shareholders. despite coming in just high of estimates, iphone sales rose 3% to 52.2 million units, driven by the new iphone x model. apple shares are up 3% in premarket trade. >> that's it for today's show. i'm willem marx. >> i'm joumanna bercetche. "worldwide exchange" is coming up next. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

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good morning it's 5:00 a.m. at cnbc global headquarters, here are your five at 5:00. number one, apple shares in rally mode after the tech giant reported a giant earnings beat snap shares plunge after the company missed two key targets number three, xerox's ceo is making a call for an activist investor in carl icahn. the fed wraps up a two day meeting today. and number five, amazon with new prime perks at whole foods