welcome to "street signs." i'm karen shur these are your headlines a new government appears in sight in italy as the italian president puts meetings on the agenda to strike a final deal between the five star and megaparties this afternoon. portuguese utility edp goes to the top they unveiled a $9 billion euro takeover in what would be one of the biggest chinese corporate deals in europe.

president trump offers an olive branch from embattled chinese tech groups in a move analysts say is negative to european peers. coming up in 45 minutes time twee speak to cleveland fed president loretta mester thanks for joining me on the show today let me take you to some of the action we're seeing for the monday session the markets are reversed we're down 1/10 of a percent across the board we are seeing loss of franks in the u.k., patches of green around some of the peripheral countries in particular portugal, spain, the core market in zurich trying

to track a little bit higher let's delve into the markets and see some of the bigger deals and capping some of the losses around the foots see iwg, edp in portugal, these markets slight a fraction at the start. seven straight weeks of gains here in europe the italian market down the most .2 of a percent. a couple patches of green. mostly in the red. financial services down. technology fading and health care you see weakness in the oil price. a strong run up in recent weeks and there's been a real head wind in this sector. it's 1/3 of a percent. let's move onto the big story this morning, italy's president will hold meetings this afternoon

the populist party said they made significant progress to strike a coalition deal. they have declined to provide a name for the next prime minister let's get to willem. this is the worst case scenario for many investors when they looked at the a lines around five star and league as we move closer to the formation of this type of government, do investors have anything to fear in. >> reporter: well, i mean, again, depends on what you're worried about in particular. if you look at some of the agreements they seemed to have formed over the weekend, one big issue is their spending plans. both these parties had issues that they were very, very keen on during the campaign for league it was a 15% flat tax. for the five-star it was universal income the 15% flat tax will mean a

dramatically smaller tax it could cost between 65 to 100 billion euros. whereas, if you look at the universal income, that could be 40 billion euros it will get more and more expensive for the italians to borrow money to fund that spending you mentioned that we've not yet heard a name one reason for that we understand is that they haven't agreed upon a name they have two sets of talks up in milan they will be meeting with a leader today they'll be meeting talking about

the candidates karen, he'll have the final word on who is appointed as prime minister. >> neither wants the technocrat, mario monti. >> reporter: absolutely. we've heard that for the last week both parties saying they don't want anyone other than a political can dadidatecandidate. they have warned if a technocrat is the one put forward, they will refuse to santify that candidate. that would force them to dissolve the new parliament. >> i want to come back to the economics a little bit more. what's being proposed is what voters are looking for, cutting taxes but increasing welfare the problem and the reason it's not been done before very often is because it increases debt leaves generations to come with

a huge excess to pay off even more tricky, there are eu physical rules if we look at the proposals and how they would get together some economic policies. they promise better economic growth rates would it be possible for italy to outperform the modeling around growth rates? >> yes you look at it compared to the eurozone counterparts. if you think about the roll back of potential pension reforms we saw back in 2011, that's something the europeans were very happy to hear was going on here and that is going to be a bit concerning if you look at modeling, if they're going to spend a lot more money, they're not going to have the taxes to come in and defend that. >> willem, thank you very much for bringing the latest. iwg shares are surging to

the top of the stock 600 after the british service operators say it's in talks about a potential takeover iwg has confirmed that starwood capital and tdr capital have made separate cash bids and has been approached by u.s. buyer lonestar. edp shares are jumping after a chinese takeover bid was announced. they're offering three euros, 26 cents a share for the remaining stocks which is about higher than that on the markets today. u.s. president trump says he's working with chinese president xi jinping to help zte company to stay in business. in a tweet over the weekend trump vowed to help them get back to business fast. trump's pledge comes ahead of

new u.s./china trade talks in d.c. and marks a reversal for the u.s. president who has accused china of stealing u.s. jobs 5g is the future of these two companies. both are down. nokia down to the tune of 3%, the one hit the most. you can get a vote in the program today. don't forget you can e-mail us also on twitter this morning, get involved with the show also you can tweet me directldirectly directly @cnbckaren. st. louis fed president james bullard will be on at 16:30 cet. a bathroom disease.

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it's eight t-- at the bottom of the dutch market reversing all of this after the company's net profit still beat expectations but was weighed down by impairments on the oil sector the dutch bank said it's on track to meet the 2020 targets that's not helping the share price. meantime, innogy's npower is up. it lost 115,000 customers during the period this ahead of a planned merger between npower and the retail power of ssa centrica confirms the outlook amid falls in customers. the british gas owner which is in the midst of restructuring said around 800,000 customers on standard variable tariffs would be lost. quick look at how oil prices are trading today. coming off some of the peaks

we've seen in recent sessions as we continue to test out the november 2014 highers. down 1/2 a percent brent reversing from the highs of last week down by the same amounts, 76.74 the handle. meantime hadley gamble spoke to the ceo of austrian company borealis she asked how the investment in the u.s. has been progressing. >> we're very positive on the u.s. because the shale oil, shale gas through the polyethylene and even through into polypropylene from the propane, we think that will be very strong. we've got a large project together with total. we're building $3.2 billion complex near houston and we think that that's going to be the future really the u.s. for the next 15,

20 years looks very, very promising. >> so donald trump has been good for business >> actually, donald trump's tax cuts have not been bad for business, that's true. >> what about what's happening in asian markets today there's the geopolitical story when it comes to china, north korea, south korea and what happens there and there's the china growth story >> china has been a net importer for our products for the last 20 years. we expect that to continue even with all of the build programs they have in place, they won't catch up to the growing demand. >> so the tariff story, that isn't something that worries you? >> no. we would like also to produce locally in china we have one plant not far from shanghai we see it as a mix of imports and local production. >> having also spoken with eric cantor about u.s. foreign policy, the iran deal and whether president trump had improved relations with saudi arabia take a listen.

>> i think it's 14i69shift he t better we saw relations between our country and those in the middle east take a very different direction, one that i wasn't necessarily comfortable with under president obama. obviously the announcement of the decertify case of the iran deal was a big deal and it was an agreement that i never supported. i don't think the companies here in the gcc supported it either i think there's been a strengthening of the relationship on a geopolitical standpoint over the last year with the trump administration and i'm looking for yet even more positive things to come and flow from that on the economic front. >> what do you see the critics of the president's position, we're talking to a lot of folks on the downstream side, upstream side and government leaders as well there's a lot of criticism from europe as well that this wasn't the right move. >> listen, i happen to think it

was the right move because at the end of the day iran was on a trajectory to have nuclear capabilities anyway. as we know, iran has been very, very strong in terms of its efforts to destabilize this region, to destabilize countries that are allies of the united states i do think with president trump announcing the pullout from the deal, that perhaps there will be a collective effort where all of us can get together to say, look, iran, you've got to stop the destabilization. there's no question at the time it does provide a little bit more uncertainty into the equation >> when you look at this from a bit of a broader perspective, do you think it was worth the geopolitical risk to make that decision because this is a risk that obviously impacts oil markets as well is it worth destabilizing global oil markets to get this done >> i think what you have anyway was a geopolitical risk hanging out there anyway because it did

not deal with the destabilizing efforts that iran has underway in this region the agreement did not deal with the fact that there was never going to be a permanent denuclearization, if you will, of iran under the agreement. so you had that risk anyway. in a way that this move by donald trump hopefully is a move to reset and we can get on to a better trajectory. >> finally, sir, i have to ask you, is president trump getting it right when it comes to foreign policy >> well, listen, if you take away all the noise, all the twitter, all of that -- >> can you take it away though >> if you can sort of separate that, you look at what's being done domestically and from a foreign standpoint, i think, yes. he is getting it done in a very volatile world, in a world going through a political upheaval not just in the united states but throughout the world, i think there are some things he's getting done. >> is it nobel peace prize worthy >> we'll see the excitement for potential

around peace in north korea is certainly there. i'm a little bit skeptical in thinking that north korea is ever going to live up to any kind of commitment it's certainly been our experience in the past that the kim family is not able to go and live up to those commitments we've been here before so i'm a bit skeptical. >> eric cantor, the fed president loretta mester says this is the right approach she said policy makers should allow inflation to move back towards the 2% goal which argues towards steeper prices the fed rate might rise above 3% in 2020. steve blitz joins us here. nice to have you aboard with us today. >> thank you. >> another big fed speaker today, not just mester but we have one on later today who is quite influential. i want to ask you about what the fed should be considering. we had a couple of weak

meetings, wages, non-farm wages did not move higher. what does the fed need to do at this point >> the fed right now is a little bit like that -- the rat in a maze and the cheese is gone and the chose eese is inflation. it does not know what to do with growth without inflation or inflation accelerated. i think the inflation rate will pick up as the year goes on just from the lag, the slowdown the u.s. had in 2015, 2016 so what it needs right now, it moved to this sort of a wide path for inflation what it knows it doesn't have is an increase in wages and that's really what it's looking for now for wages to accelerate. it's really just another excuse. even if wages don't accelerate, does that mean it keeps rates where they are so the real answer is that the equity market's really telling them and powell being a preacher

of the capital markets, and i mean that affectionately he's really going to let rates -- let the markets dictate where rates should go. if the markets start getting out of control, that means their growth story is right and money is too cheap and he should raise rates. if we get a bull market coming back, it will make it easier for them. >> funny you talk about the breakout to the up side. the cpi numbers were a bit of a letdown for some market watchers to you it gave it clarity that there is an aim to the end of the era that inflation is in the rear-view mirror >> yes. >> why is that important >> well, obviously, if we -- we're not expecting a ecession but obviously if a recession occurred and you backed a disinnaryury environment, of course you are that's what the fed wants. it gives them room to cut in

that case, but i would say that the fed -- that the fed's looking for something that in this world isn't necessarily going to come to them the way it has in the past. right? so the u.s. is a fairly open economy in a lot of ways and so labor is sourced everywhere, things are produced everywhere this not econ 101. china is part of the supply chain of u.s. manufacturers. very few products are purchased in china by americans because they're chinese made they purchase american brands or japanese brands or even for that matter european brands that happen to be manufactured in china. so when you bring that low cost into your system it's going to

keep domestic wages down, your inflation rates down and technology is dropping prices. so the link between monetary policy and inflation, which has been so strong over the last 50, 60, even 70 years is a lot weaker now so they're looking for a new policy. >> the president has medaled with that dynamic, hasn't he the low cost benefit of bringing these products in has been altered because of the extra pricing that is lobbed on these goods as soon as they enter the border >> yeah, it doesn't do much good the tariff story, really, if you think about it, once again, it's not like you're protecting -- say you go to europe and you say, all right, you want to have fair trade between autos manufactured in the u.s. even though the germans make a lot of bmws and mercedes in the united states because of that, the tariff thing never really makes sense,

but you can begin to understand the logic. what logic does it have with the tariff in pieces and bits. the pressure you need to do if you want to have that pressure is to go to american firms and say, they'll build it in the united states. he was going down that road. obviously that's not enough to make apple produce semiconductors and whatever they need to produce in the united states to assemble the iphone there. >> sounds like the supply chain is somewhat muddied. i want to come back to rate hikes. we saw the weak inflation numbers crossing this is goldilocks all over again. this is a market that's been stewing about the fact that it has ended and spiked as a result if you can see the savings rate, this is where you pointed our attention, that as soon as you had some pricing pressure, americans are putting less away in the bank. what does that mean for a fed

moving higher on rates >> well, what it means is, number one, they're going to stick with this quarterly pace of raising interest rates and, you know, the equity markets breaking back to the up sides. as long as the equity market is doing well, the capital markets are a growth story, right? you're not going to get particularly more aggressive than that because wages haven't yet shown the thing and catching up we're assuming they are, but they haven't yet and that's one of the reasons why the saving rate goes down and that's problematic. 25 basis points and next year is next year. >> thank you very much for joining us he is's the chief u.s. economist. watching malaysia, they've hit a four month low against the dollar the benchmark index has reversed losses in the first day of

trading. the surprise election victory has contributed to this. he could appoint a council of elders as he sets about setting his cabinet. >> reporter: regaining some composure after an initial 2.5% drop this is the first time they're reacting to the surprise opposition win and the breaking of power that's lasted almost six decades has been held by the ruling national government now defeated interesting to know there was some pressure associated with infrastructure stocks and the new president said they will review some deals, infrastructure underperforming today. however, consumption stocks were a winner today relatively speaking because this new

administration has talked about repealing gst. that would mean more money in the pockets of malaysians. however, the ratings agencies say that this risks fiscal slippage if here's no offsetting revenu generation, then that could be a credit negative for the sovereign. let's bring in mark mobias on how all of this is playing out and how he is approaching the malaysian market >> you have to be careful. you have to look at the companies that were in favor and who were not and sort of pick and choose from a political viewpoint. very, very important the other thing i think is that if the gst is eliminated, which might be a politically good idea as he just said, the consumer stocks will look quite interesting. >> reporter: moving forward, this market is still going to have to contend with a number of

risks on a number of different fronts primarily the fractious nature of it within the ruling government parties and also the legacy issues associated with the najib government now defeated the new government has made it clear that they will not approve of cronyism. the concern for the markets is whether the government is too preoccupied and bogged down and doesn't spend enough time on focusing on healing the economy. back to you. coming up on the show, the u.s. is set to open the new embassy in jerusalem we'll discuss the move and its potential impact after the break.

welcome to "street signs." if you are just joining us, i'm karen cho. these are your new headlines a new government appears in

sight in italy they're striking a final deal between the five-star and league parties this afternoon portuguese utility edp spikes to the top of the stock 600 as china unveils a $9 billion euro takeover in what would be one of the biggest chinese corporate deals in europe eriksson and nokia shares sink at the opening as president trump offers an olive ban much to chinese group zte meantime, coming up in 15 minutes time we speak to loretta mester the u.s. last week closing out on the dow seven straight

weeks positive in a row. let's see how it's setting up for the trading session today. we look like we're in for a slight bump again at the start of the session in terms of what we had, well, telecoms leading all sectors across the day don't forgotten flerge get -- ea bit of a tear. elsewhere on european markets, we have started out the week with a slight decline. a couple of big deals stemming the tide iwg in the u.k edp in portugal leading the deal i would say italy not just trimming some of its losses to be flat. was down .2 of a percent

the country looks to form some form of government later on this afternoon. taking you to foreign exchange markets and how we're trading, we have bounced on euro. up close by 1/4 of a percent little bit more than what you're seeing on dollar yen and pound with the early morning trade a little bit weaker for the dollar let's come back to italy two names have emerged willem, one name from either party. talks us through the various candidates. >> reporter: we've heard this, jewel yes satelli is the apparent candidate there for league and druseppi conte.

sappelli is from milan and conte is a professor of law. they might be mentioned later in the palace this afternoon. >> looking back over sappelli, he says money governs effectively. we've had a feeling by the elite in italy that it really is the power that they wield away from politics that makes a real difference on the economy. this also fuels his feeling of haves and have notes where there's a lack of participation. how do you think a technocrat will be perceived in the country?

>> reporter: one of the challenges facing all of these parties, karen, was trying to get voters to turn out for anything other than disappointment the idea that you would be putting in charge these men who have a background in private history and law, they will be neutral ash tators what that will mean is very, very uncertain there will be a lot of difficulty passing new laws in particular they'll have a very, very significant role to play in the senate he has said very clearly that he will approve things so long as they are, in his words, useful to italians. what that will mean in terms of spending plans in particular, very unclear at this stage. >> willem, the other big ramification is what does this

mean for europe for any negotiation with brussels. there is a feeling that both 5star and league want a very different brussels and reworking of the new treaties. if there is a technocrat prime minister, how does this help them agree and how does it play out with european partners. >> we haven't faced a euro skeptic candidate. all of these technocrats have been willing to have open conversations. what has been a very, very central element in both of these party's election campaigns and going back much farther with both of them has been the system in brussels. the fiscal restraints placed on italy. they need to change. that will make it very difficult for emmanuel macron and angela

merkel the stock market trimming its losses trying to push ahead with some slight gains in contrast to the negative markets that we have going across europe this morning. just a fraction higher, but it does say that the market is looking for some form of a political outcome quickly. in other news, rpgs iran's zarif is saying russia has, quote, confirmed the readiness to confirm the readiness of the deal despite the u.s he says he hopes there will be a clear movement on the agreement. white house national security advisor john bolton is

threatening u.s. sanctions >> the withdrawal wasn't aimed at the europeans i worked hard over the short time i've been the secretary of state to try and fix the deal. we couldn't reach agreement with our e3 partners. i am hopeful in the days and weeks ahead we can come up with a deal that really works, that really protects the world from bad behavior, not just their nuclear program but their maligned behaviors >> the united states will open its new embassy. ivanka will attend the new opening ceremony along with steve mnuchin. they argued that the city's final status must be negotiated with the palestinians. let's go to hadley for more in abu dhabi. where do you want to take this

>> reporter: well, i had a chance earlier this morning to speak up with his royal highness, the former head of saudi intelligence and a former ambassador to the united states and the u.k. of all of the stories going on whether it be the disruption we're seeing in the markets or the fact that they're moving the u.s. embassy to jerusalem, how damaging is a move like this to the reputation of the president and the united states in the broader region and how very difficult will it be going forward not just to reset the relationship but to tamp down on the geopolitical tensions. let's listen in. >> you know, america has stood for rule of law, for justice, for respect of international agreements, et cetera, et cetera and now we see all of that being pushed aside for the sake of internal political

opportunities. >> for what? >> electoral issues in the united states. it will be sad and very counter productive it's raised the volume of anti-american rhetoric, not just in palestine but throughout the world. it's given impetus to the terrorist groups that have always claimed that america was againstless arabs, against the muslims, and it allows iran to capitalize on this issue by accusing america of supporting israel it was a very sad step. >> reporter: that's his royal highness talking about the situation on jerusalem everyone seems to be upset about that you have to remember when it comes to the decision, each of them are quite positive on what the president has tried to do.

>> thank you very much for that. coming up after the break, we are going to head to paris where we'll be speaking to a very special guest you may notice she's not in the studio today >> hi, karen we're in france and right after the break i will a' be speaking to the cleveland fed president lor traes mester so stay with us er, 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. and it's time to get outside. pack in even more adventure with audible. with the largest selection of audiobooks.

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cleveland fed president loretta mester says a gradual rate hike is the right path. they should move back towards a 2% goal shortly. mester suggested that the fed funds rate might rise above 3% we have more from paris. >> reporter: thank you for that. i'm joined by loretta mester, president of the cleveland fed to pick up on comments you made earlier, you said you believe the economy is beyond maximum employment if we look at the most recent jobs report we're at 3.9%.

do you think that there is a risk that the u.s. economy is over heating >> so i think we're slightly beyond full employment but we're not yet back to our inflation target on a sustained basis so, again, we're trying to balance that with monetary policy. i think if we let things go on a little bit longer without any change in interest rates, that would probably not be the right path i sort of ascribe to the outlook as being consistent with the gradual pace of taking back some of the accommodation that we added during the great recession. >> one other phrase that has shouted out to the market, perhaps we'll have to move higher to the long-term rate that's around 3% are you saying the fed could strike beyond 3% in the near future >> not in the near future.

if you look at the path in 2020, the median path gets a little bit above 3% and then we bring it back down that's a typical path we've seen in past tightening cycles. it's not totally unusual, but it's something we need to be cognizant above. now 2020 is a long time away it's hard to predict that far into the future. >> of course the fed has said the economy wants a gradual tightening in the fed funds rate i wonder how far the fed is willing to go, if it means yield curve inversion in the context of maximizing unemployment and keeping prices in check. >> well, of course, you know, the yield curve responds to changes in the economic outlook and also changes in monetary policy so when we're thinking about monetary policy, we take it all in looking at all aspects of the

economy. i don't think of the yield curve -- shape of the yield curve per se is an exoj news factor it's indodge gi news it changes with what market participants view the economic outlook is before you can say why is the yield curve flat or why is it a certain shape? you have to take a step back and say that the economy is -- the outlook is changing or not again, we're always going to be focused in terms of setting the monetary policy of maximum employment. >> even if the yield curve inverts? >> again, i don't think you can say the yield curve would do that independently what's happening with monetary policy. >> also in your speech you've said that the rise in oil prices and the value of dollar are worth watching and the dollar, of course, is quite a big appreciation of the currency and tightening of financial conditions so to speak would you say a stronger dollar

has become a risk to the outlook in the second cycle? >> i think we need to be monitoring those things. i think at this point, no. i don't see those as huge risks to the outlook but, again, we need to be cognizant of what's happening in asset markets including financial conditions in terms of what they're telling us about accommodation in the economy. >> also the financial context what we've seen is emerging markets have begun to get quite disrupted. you've seen it in the argentine peso and the turkish lira. how are they thinking about depreciation and in the global markets. >> i don't speak for the fed, but we have to take into account the policy we're always focused on the u.u.s. economy and the dual mandate goals.

yes, we're in a global financial market different currencies and assets will respond the way they do that will feedback into our outlook for the u.s. economy when we're setting policy, we're going to always be focused on our goal. >> governor powell said policy cycling will be monitored. if information were to materialize that would suggest otherwise, then would you that i can into consideration >> one of the things that chairman powell also said, i agree totally with this, one of the things that we try to do in monetary policy is be transparent about where we see the economy, what our median run is and will we think is the appropriate policy i think that transparency has served both the u.s. economy and global economy well. we haven't talked about the

u.s. trade dealback back and forth. on one hand you could say the tariffs could be inflationary for the u.s. economy but then on the other hand perhaps there's some concern that the hedge it might have on business concepts and investments. how are you thinking of it >> i think of the trade situation as a risk to the outlook. you're right, it can have multiple effects on both sides of our mandate i think there's a lot of rhetoric and ultimately how the u.s. economy performs it's going to matter what actions are actually taken the uncertainty around it, we're getting some anecdotal reports on some firms are taking a little bit of a wait and see attitude, but overall i would say the firms that we spoke to are watching us and haven't changed their behavior as a result of it >> how would you say a big

balance of risks are in this environment? would you say there's more potential for up side risk or are you conscious of downsized risk >> i think we're in the balance of risk. there are upside risks and certainly up side risks for the first time in quite a while because of the fiscal policy changes that we've had and the fact that the money is quite strong and monetary and financial are still accommodatetive. there are some geopolitical risks and the trade rhetoric adds uncertainty which is a down side. >> one other statement that pops out is the introduction of the word symmetry around inflation why did the fed decide to reintroduce that word? >> it's not a new word in that it's in our longer run strategy document that we've agreed to at the beginning of each year or

reaffirmed at the beginning of each year. and i think it's just a reminder to the public that, you know, we do take a balanced approach when we're looking at our inflation target so if we were, you know, above the target or below the target sustained time, that is something that concerns the fmoc, whether we're on the up side of inflation or down side of inflation i think we've shown that since the great recession, that we were concerned with inflation being too low. we also people to know that we care about inflation going above our target for a sustained period of time we just tonight to give it a rise, it's symmetric 26789% is not a ceiling. inflation might go before 2%, below 2% >> it's basically a reminder to people we are looking for 2% on

a sustained basis. >> some people have taken that as a dovish interpretation, that the fed might be preparing the market for inflation to over shoot. therefore, the market should not read too much in it. >> so i do think that the near term readings could go a little bit above 2% just because we know that some of last march's readings are falling out and that puts upward pressure. there's some commodity pricing increases. on the other hand, i don't think they're going to last. we don't really want transitory movements to be influencing our view of where we are relative to our goal we have to look through them and be focused on 2% over the median run. i think adding that makes perfect sense in the sense that we're always trying to be transparent and i think of that as our being transparent about how we're thinking about inflation. i want to ask you a little bit about the language around

the rate hikes, the words gradual. i want to ask you a li bit about the language around the rate hikes, the words gradual. suppose the fed raises to 4 hikes this year and 3 hikes next year would that still be considered gradual? >> of course, we don't project what we're doing two years ahead of time. we give you what we think would be consistent of the view of outlook. each person writes down the outlook. we're looking at how the economy is really evolving i would say three or four hikes is gradual as we go forward, we'll have to be evaluating the stanza policy. it's a little bit of a deeper question because we're always sort of looking at relative to where the equilibrium rate is.

the fmoc said that in its statement, but as we go forward, you always have to do that calculation. are we accommodating and adjust appropriately. >> finally, one last question for you on the state of the u.s. finances they say the u.s. is the only country where the gdp is scheduled to go up in the next five years does that worry you? >> i think we have to be taking into account our -- the health of the u.s. economy in terms of are we on a sustainable fiscal path and i do think that's something that we should be thinking of now as we go forward and not waiting until things get too far out of hand. >> thank you very much. >> thank you. >> with that, karen, i'm going to throw it back to you. >> great interview thank you very much for bringing us that. meantime, i want to take our viewers to

s. f -- u.s. futures. some have taken those comments as bearish james bullard will be speaking today. last week they thought it might be goldie locks again, no sign of too much inflation keeping the fed somewhat captive around ratd rises the dow up for its seventh straight week. the markets looking for another run higher setting up for positive trading in contrast to europe which is just a little bit soggy. we are trading weaker. that is it for today's show. i'm karen "charlie hebdcho. "worldwide exchange" is up next. ♪ we came with big appetites. with expedia, you could book a flight,

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it is now 5:00 a.m. at cnbc global headquarters. your top five @5 the dow on a seven day winning streak the bulls look to continue that march today. trade talks. president trump saying he wants to get a massive chinese tech company, quote, back into business fast. those comments come ahead of high stakes negotiation this week happening right now, an historic day in the middle east. the u.s. opening the embassy in jerusalem. another big win for billionaire carl eicahn. apple ceo tim cook