hello. welcome to "street signs" live from london and singapore. as china gives with one hand, the u.s. takes with another. automakers trade lower on news that the trump administration is launching an investigation into car import duties to protect the american auto industry deutsche bank gets drastic vowing to cut 25% of its equity business as new ceo christian

sevy looks to stamp his mark on the financial giant. >> a fine for thyssenkrupp as elliott advisers confirms it has taken a stake. and goo siuseppe conte getse job, but he is warned to keep debt undercontrol. hello. welcome to "street signs" on this thursday. european equity markets are looking better than when we left you yesterday. significant moves to the down side yesterday for the main markets, today a different story. green here, though the moves are still relatively muted here. the ftse 100 is higher by 0.1% the ftse mib in italy is higher by 0.2%. some relief in the markets after

president mattarella has given prime minister conte a mandate the french cac 40 is higher by 0.4% the xetra dax is higher by 0.1%. keep an eye on the automakers there. details in a minute. overall, sentiment did get a boost after the fed minutes seemed to suggest that the fed was not too worried about inflation overshooting that did support the u.s. markets with a bit of a rebound overnight. >> it did. it seems to imply the fed and the policymakers within the fomc are okay about inflation, overshooting a bit before they intervene. that's consistent with this narrative of three rate hikes over the course of this year, as opposed with four which may be upsetting for the markets. u.s. futures are implying some weakness on the dow and the s&p 500, but some stability for the nasdaq i think the theme throughout the

morning has really been this flip-flopping on the trade narrative. let's not forget that the trump administration has opened up a new front on trade with this investigation into vehicle imports. so, nancy, as you would imagine the auto sector was a drag on some broader indices today in asia >> certainly was, because after you take out canada and mexico, japan of course the next largest exporter in the country. even though toyota and nissan have presence and production facilities in the u.s., still concern there's about the export factor let's look at the sectors in europe similar story, leading the way lower, if we can bring up sector gainers and losers looking at the picture here, underperforming certain stocks as well. when it comes to the eu auto story, you already mentioned the

trump administration did launch what is a national security probe into the automotive imports in the u.s that did come to the surprise of some that it was going on national security grounds. there you have t the picture of bmw off 2.6% daimler also in the red. peugeot and renault also lower, too. we'll see if the car and truck imports threaten the health of the u.s. auto industry and it could lead to new tariffs. critics say the levees would limit consumer choice and raise prices that is one factor sri, the national security argument will raise many eyebrows here. the official line is that due to the heavy imports in the united states, this makes the u.s. brands less competitive. ultimately that means less profitability. that means less money to direct into research and development. similar kind of the arguments in

the tech sector. the issue here is look what's happening with nafta u.s. auto americas don't want to see major changes that would disadvantage them in the nafta trade. they have imports when it comes to the carports they use, south of the border, also significant production in canada, so this could be more detrimental when it comes to profit margins they want to secure and their ability to further invest in r & d >> it makes the business model that much more challenging especially when import costs could kick higher as a result of these tariffs coming into force. these potential tariffs are just that their potential tariffs, there's an investigation into those vehicle imports, under section 232 of the trade act and they have not been imposed yet. so it's important to bear that in mind. there is a sense this is one

step forward in the trade narrative and two steps back so there's uncertainty over uncertainty over uncertainty that's undermining confidence. >> certainly is. a big story today in europe around deutsche bank we are looking at live pictures of the agm getting under way a huge moment here for the bank which has been struggling with share price performance. many wondering if the steps taken so far will be enough to convince investors that the restructuring plan is on track the line we got today about reducing the headcount in the equity and trade business by 20% is significant because that would take the work force from 97,000 to 90,000 this comes as the new ceo has been trying to turn around the troubled lender. still many questions around the chairman, will he will survive down the road, and what he may

encounter at this agm. we'll follow that closely. annette has been covering the story for us as you know, this is a bank that has been struggling to turn around for quite some time so today the agm, we're really putting the spotlight on the new ce ceo. >> are job cuts really necessary? and arguably the workers are victims of short-sighted management i think the broader question for the market is we really need some clarity on the way forward at deutsche bank maybe we will get it at this meeting. but the bigger question, really, is what is the end game here what kind of bank does deutsche bank want to be after this

turnaround is complete i had an interesting conversation earlier today with annette on european "squawk box" and i raised the question of the derivatives that runs into the trillions of dollars i was wondering if it was still a story now. annette said a lot of these legacy issues have not been fully laid to rest that's an issue when you dom forensically examining this company and asking the question whether it is worth the sum of its parts and the share price. we may possibly see a further re-rating because something of an existential crisis going on here >> the new management, the direction they take will be crucial to the investment case going forward. we're getting some lines from the chairman saying u.s. banker, john thain has agreed to head a new strategy committee on the

bank's supervisory board and the bank's chairman saying the bank will file a charge for unknown persons over leaks it seems like he's trying to offset criticism about the abrupt ceo change. they had to come out and say nothing is being made at this time and then we eventually did get the announcement so achleitner was hoping to make the change today at the agm, but they had to act in april after the news got out so explaining that decision, but also the key line so far is that banker john thain agreed to head a new strategy committee on the bank's supervisory board annette ta is kis covering the the leadership change what is your take on some of the lines we're getting. >> i agree with what you have said in the studio clearly the bank is in

restructuring mode clearly christian sewing does not have a lot of time to show he's the right man to run the fortunes of the bank the last three years have been loss making, that's the main reason why john cryan was ousted earlier this year. he was good in showing us a strategy, people were saying, but he was really bad at implementing all these painful changes inside the bank. so the first step we are seeing now from christian sewing is showing us that he's fast on the implementation side to cut 25% out of the work force in equity and trading. that was a move that was anticipating because the bank is not competitive in the equity trading business and was never, to be fair if you look at the numbers of the investment banking unit, the

bulk of the revenue comes from trading, and they need to turn around the business in the fick trading unit this is crucial for the investment bank. this is also crucial for the share price of the bank. the moment we see weakness in that business, whereas other big players are showing that it's actually a good market to be in, the moment we see weakness at deutsche bank's fick trading busine business, that's when the share price is dipping lower we heard from the bank today and in the morning that they're accelerating their cost saving target, accelerating the cost saving exercise. they're planning on having costs at 22 billion euros in 2019. that's alittle sharper than

previous management was meant to be so all in all we can argue that christian sewing understood that he does not have a lot of time to turn around the fortunes of the bank another question is clearly how damaged the chairman, paul achleitner will evolve from today's agm. there is a growing voice, chorus of voices from investors who seem to be more and more unhappy with him and his role in the recent management changes, also strategic upheavals of the bank. clearly paul achleitner is head of the supervisory board and is not head of the management board so he cannot enact strategies but he oversees the whole thing and picks the right ceos the criticism runs along the

lines that he was not very good to pick the person to head up the business of the bank we'll see what happens today the vote on achleitner will be tonight around 8:00. it's highly unlikely he will be voted out of his job so it's not that he will be gone by tomorrow, but what is highly likely is that he might evolve more or less damaged from today's agm. even if, for example, 15% of the shareholder votes will be against him, that shows that he has not, like, the full backing of everybody that might prompt him to leave the bank before his contract expires. so some people are suggesting that he might leave during the course of this year, because he doesn't really like to take all this anger he's a man from -- he has a very good career, various positions

in germany so some people are saying that he might actually leave during the course of this year. but that's not clear so, one can argue that the heat is on him, but we won't see him again leaving today. most likely he will also survive the vote of confidence today at deutsche bank's agm. with that, back to you >> annette, thank you very much for that one has to wonder, given this revolving door in deutsche bank's management and leadership, whether somebody could come from the outside. i wonder if that's an open question thank you very much indeed for that let's get back to the broader markets. the fed and policy, and the federal reserve is willing to let inflation run past the 2% target temporarily that's according to latest set of fomc minutes in which policymakers pointed towards

another rate hike in june saying it would likely soon be appropriate to take another step in removing policy accommodation. on a programming note, tune in to cnbc today for steve liesman's interviews with the dallas, atlanta and philadelphia fed presidents time on your screen on the show we're joined by sheila patel, ceo of the international group at goldman sachs asset management thank you for joining us on the program. let's first kick off with the fed factor overnight investors breathing a sigh of relief should they be or are you concerned about the fact that the fed seems willing to tolerate an inflation overshoot? >> thanks for having me. in terms of the fed, investors feel more confident than they did that there's clarity from the fed. that we know they're thinking in terms of inflation, we feel it's still a relatively benign

scenario mainly because we don't see the labor markets pushing wage inflation too, too quickly. from our perspective, no, i don't think the overnight news is cause for concern we prefer some other asset classes over rates, but overall people feel more comfortable with the fed than at the beginning of the year. >> at the same time you have once again a bit of terror tantrum going on, especially looking at the auto sector globally today the latest comments from president trump about this investigation into the auto sector, does this raise concerns more broadly speaking than just in the autos because once again we're using what some have said is a questionable justification for that national security cause. >> i think when investors look and we look at sources of unstirt nou uncertainty now, tariffs and relations with key trading

partners are one of the biggest concerns that investors have the lack of clarity on what tariffs may be coming, size, sectors involved is something we're watching carefully in terms of our general positive attitude towards equities, that's one of the risks we would identify >> good morning, it's sri here in singapore on that note, on the risks, there's a sense you can't be maximum bullish on the outlook given the list of uncertainties from trade to geopolitics to the higher rates environment in the u.s. so my question to you is what portion of your portfolio should you assess and set aside for defensive? how big a cash position do you have to have in the current environment? >> we don't think it's time to turn the dial fully up on defensive at this point in the cycle. certainly we prefer equities over credit. we prefer credit over rates. in terms of raising cash, should

investors have a portion in their portfolio? yes. we're interested in saying what's the selective areas within equities where you can still find opportunities, particularly with corrections, and be a bit defensive so we would look at it and say the opportunity set with growth still continuing on a relatively positive trajectory, and the pullbacks, that mean there's are some good opportunities in selected stocks in the em space, in u.s. small caps that will be less sensitive to moves by the fed and to a generally increasing rate environment. but unless we see rates move in a more rapid way or above around what we would say 3.5%, we don't feel it's time to cycle so defensive quite yet. >> you really segwayed beautifully into my next question that's about the latest bout of volatility in ems. it does seem to be fairly country specific right now

it's not broad based if this is a buying opportunity, then what of the more constructive areas of em, especially em asia that you would pick out >> absolutely. certainly we are constructive. and i think as you say it's been idiosyncratic, in general for equities we have been through a period of extremely surprising low volatility so we're at the point where we would expect episodic volatility when we look at em we focus mainly on the stocks versus the countries per se but we think india is an exciting opportunity we see some great stocks we see continuing growth prospects and great developments in areas like technology and so on india and china is one to watch. we see some opportunities there. em pullback created opportunities. it's about being selective

around the stocks and those tariff worries do give more pause on u.s./china relationships than almost anywhere else. >> sheila, we are just out of time thank you very much for joining us sheila patel there from goldman sachs asset management global corporate and sovereign debt represents a risk that's according to christine lagarde. she said protectionist rhetoric is a threat to confident in international trade. geoff and hadley are live from st. petersburg economic forum. you were saying earlier today that we'll hear a lot about the trade war narrative and how it seems to have been laid to rest, but the recent headlines coming out of washington seem to suggest that it's almost a case of one step forward, two steps back here.

>> i think we just lost audio. >> okay. we hope to get back to hadley and geoff in st. peert petersbug i seem to have stunned them into silence which happens to people, but not with nancy thank goodness let's pick up where we left off. my hobby horse has been there. we've been seeing the pmi data really starting to moderate. i don't think it's just late cycle moderation i don't really think it's seasonal there may be an element of that, by a lot of it is uncertainty starting to hit the corporates, starting to hit economic activity, because nobody really knows where this tariff story will end >> precisely we were speaking to mark zandy a

few days ago, and he said with these trade tensions it's just noise. he was saying almost not to pay attention to it, but if you're a business leader trying to make decisions years ahead, there's so much uncertainty stemming from washington. and i think it makes the macro environment difficult. and then there's another factor about the slower growth in europe with the pmi number from yesterday, this idea that volatility is making a comeback, part of that is because we don't have this growth story >> i have to say -- >> it's not a synchronized growth story anymore >> right i do believe we can reconnect with geoff and hadley live from the st. peert petersburg forum

before the gremlins were clui cg on the cables, we were talking about the uncertainty over the markets despite this cease-fire that we've seen between the u.s. and china. >> trade is not the only thing overhanging the story at the forum. sanctions is still very much an issue at the heart of russian business peoples mind. we spoke with kyrie il dimitriev about sanctions and how they're affecting his business let's listen to what he had to say. >> this does not preclude from investing with us, meeting with us, and as a sovereign wealth fund sanctioning us strongly would create an effect of pulling money out of the u.s. economy.

if there's a precedent for sanctioning sovereign wealth fund, what stops them six months from now if the u.s. doesn't like chinese on an island to sanction their sovereign wealth fund we think it's ridiculous to begin with, but regardless of that we'll work with stock investors all over the world none of this is restricted activity we believe we are doing good for our countries because we're building economic and investment bridges that make our countrie have good discussions and understand each other much better >> in a sense do you think these western countries have become less worried of closing out of the u.s. economy, that actually the long arm of the american treasury is getting shorter or a little less powerful >> i think first of all the doomsday scenario of the russian economy is that people predict

it, turns out to be false so many people sought sanctions and that the russian economy would collapse it did not happen because russia developed new solid partnerships, including partn partnership with saudi arabia. oil markets are stable and that gives opportunity for us and saudi arabia to develop our economies. different countries understand that by working together, you can address issues much better we believe having good dialogue, including the dialogue with the u.s. we are having lots of meeting with u.s. business people. i believe passionate about restoring u.s./russia relations. lots of those things media tries to portray as sinister, but we are believers that frankly lots of people need to try to make u.s./russia issue better it's good for preventing third

world war and good for development of the world economy in a more risk-free and positive manne manner >> your the second senior russian executive i've spoken to in the last few days who has brought world war iii into the conversation is that something seriously troubling the russian people >> i think what's troubling people wise people all over the world is that by having strong confrontation between russia and the u.s., there's an increased risk of confrontation. that is not something anybody would want so people need to understand the trajectory of our relationship right now. it's pretty bad right now.

>> that was the head of russia's sovereign wealth fund talking about using economic diplomacy, particularly in the middle east, but also talking about the worries over increased confrontation. that will be interesting tomorrow when we hear from the president of france's as well as mr. putin when they talk about that transatlantic relationship and how that seems to be deteriorating. >> absoluteabsolutely. plenty more to come after the break. (siren wailing) (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient.

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. welcome back to "street signs. here are your headlines. as china gives with one hand, the u.s. takes with another. automakers trade lower on news that the trump administration is launching an investigation into car import duties to protect the american auto industry deutsche bank gets drastic vowing to cut 25% of its equity work force as chairman paul

achleiner looks to support the c ceo. elliott advisers confirms they have taken a significant stake in thyssenkrupp. and giuseppe conte gets the job, but he faces his first challenge as brussels warns him to keep debt under control what did you say to mark zuckerberg >> europe is the right place to build this new framework u.s. is not regulated. regulation is made by private players. it's not sustainable for citizens china is overregulated, if i would say. it's regulated, everything is supported by the government. a place where we can build democratic regulation for people and with people, that's what we

did at european level with gdpr. it's what we want to do. innovation, smart regulation, that's the best way to be the most strategic place >> thank you, mr. president. >> karen tso talking live there to the french president, emanuel macron at the viva tech industry summit where his message clearly was look, regulation on the data that with this gdpr is compatible of building a thriving, domestic tech sector. so the two are not mutually incompatible, more regulation, which is aimed at ostensibly protecting the consumer, protecting data privacy with building up the tech industry. whether it's silicon glenn or silicon valley the european commissionitalo

continue cutting debt. eu officials said that the country is currently respecting budget rules, but that further actions will be needed the five star and lega parties agreed on a program that couples lower taxes with new spending plans. italian president sergio mattarella offered giuseppe conte the mandate to form a government willem marx has more for us. he's a relative unknown, but he is a lawyer and he is trying to use his legal credentials to really establish himself as the right guy for the job. are the italian public buying that >> you're right. last night we heard him after a two-hour meeting with mattarella come out and use that kre tecrel as a lawyer to not only defend

his record but talk about what he promised to do. >> translator: i am a lawyer, and throughout my life i've taken care of many people. i'm preparing myself now to defend the interests of all italians in all places in europe and internationally. speaking with european institutions and with representatives of other countries. i will be the defense lawyer for the italian people >> so the two men who are keen for him to take this role on and this is still subject to his cabinet getting approval and both the prime minister and the cabinet getting voted through both houses of parliament. what we've heard from both luigi dimaio calling this a historic moment, also mateo salvini, the head of lega, saying conte would have full autonomy when it comes to making his own decisions, the

challenge for this man now is trying to implement these dozens and dozens of different policies, many of them complex and not welcome patible trying to make them into legislation that will pass through parliament and be put into place by his own government. there will be a massive challenge for giuseppe conte and all of this while he faces criticism in brussels talking about this huge debt pile that italy faces, 132% as of 2017 they need to get that down significantly. given the plans they have to slash taxes a two tier flat tax, given the plans they have to provide universal basic income, this this will become challenging for them to do that given that challenge borrowing from creditors at a time when the ecb is potentially going to end its era of easy money, sri >> i'll pick up here, willem looking at the italian market

moves. there's a degree of relief here. what has changed because initially people said with conte there, they were not sure he would be a strong enough voice when it comes to urging about things such as fiscal responsibility you're talking about concerns around the debt issue. it doesn't seem the new government is keen to put forward proposals that convinced many of their fiscal plans do you think >> i think the challenge for investors, there is now some degree of certainty compared to what we had over the past 10, 1 weeks. even if you have this individual in charge t will take weeks or months to see whether these proposals can be implemented at that point the investors were able to take a second look and figure out if this will have the impacted on spending and debt that we're concerned about >> willem, i think there are implications for the italian banks as well. the populare banks have been

going through these consolidation phases, and there will be implications for debt and nonconforming loans. thank you very much for that let's move on and stay in europe coming up on the program, minutes after we just caught up with him, french president emanuel macron will be taking to the stage at the viva tech in paris. we'll be there live coming up. - 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. happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra?

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let's review the state of play in the major european indices. it is a better picture compared to the drubbing we saw yesterday in the wake of those pmis from france and germany we did see some disappointment in those numbers they were somewhat sluggish. the thematic today is on trade and president trump opening up another investigation in trade on the vehicle imports the markets are seeing some

negative follow-through there. the ceo of russia's lukoil says it is time to raise output these comments, bearish comments that are consistent with what we have been hearing reportedly out of opec in the next meeting they may very well be poised to raise output to make up for some of the supply short falls coming from venezuela and iran. lukoil's ceo saying oil at 80 is already a high price we are seai inseeing weakness it crude and nymex crude. >> that dip in the ftse 100 p 0y have something to do with sterling trade this after uk retail data was well above expectations. let's break down the details in april the retail sales grew by 1.6% on a monthly basis

versus a decline in march, that was the biggest monthly rise since october 2016 you can see that reaction. perhaps wages outpacing inflation is spelling good news for consumer spending. so overall that 1.6% increase is a big increase let's get back to another story in europe, in paris french president emanuel macron has hosted some of the digest tech ceos from the u.s. including mark zuckerberg in a bid to further his tech for good campaign and drive more investment into france karen tso did get a chance to speak to the president, emanuel macr macron, just moments ago >> my perspective is to be leader in europe, and push all the european players to bridge the gap. i think technology, artificial

intelligence is more and more effective, and i work hard on it to make france much more effective. second now, we are experiencing this huge change, we need a new framework for technology, for all social media, for artificial intelligence it's not just about innovation, you need regulation. look at facebook and cambridge analytica. >> what did you say to mark zuckerberg yesterday >> europe is the right place to build this framework u.s. is not regulated. regulation is made by private players. it's not sustainable for our citizens you will have huge scandals. china is overregulated it's regulated everything is concentrated by the government the place where we can build new democratic regulation for people and with people and that's what we did at the european level with the gdpr, it's exactly what we want to do.

innovation, smart regulation, that's the best way to be the most constructive place. >> karen joins us now. brilliant job getting in there and speaking to the man of the hour interesting that macron is talking to smart regulation. because i think there's a concern that too much regulation, too much scrutiny in europe is bad for tech on the continent. >> it could kill off the entrepreneurial spirit that's one of the big concerns you can see the huge crowd here for emanuel macron very popular in the tech community. what he's trying to do is create a start-up culture in france but the start-up culture is also important for traditional industries joining me is patrice kane this is not a traditional con fence y conference you would normally come to what are you doing here?

>> technology is at the heart of what we do, so it was of use for us to be there, to be present and showcase our latest innovation, to showcase everybody we work with and many other interesting things >> a lot of your customers across the different industries, aerospace, space, ground transportation, defense security, they're engaged in new technology what does that mean for you as you keep up with these companies and provide solutions? >> our customers are most of the time involved in very demanding environments very demanding environments, first. secondly they're involved in their own political -- digital world, and we are there to support and help them. >> i believe you're working with

the tube in london was does digital transformation mean for the tube? >> it means for commuters, passengers, safer and safer signaling systems. >> so we're not left standing on the platform waiting for the train to arrive or stuck on a carriage under ground. >> exactly and of course it's exactly to bring more and more cybersecurity features cybersecurity is a clear concern for many individuals injecting some cybersecurity features is now immersed typically for the customer >> you have about 33 startups or foreign incubators this leans into what france is doing and what emanuel macron is trying to achieve here, a start-up culture are you on a digital revolution?

>> yes certainly changed france as far as we are concerned, we have been deeply involved in innovation for more than a decade for us it's natural to work with our ecosystem, with startups we know we will not invent everything on our own and we need informative startups. >> you said change the image does that mean the underlying infrastructure or framework in france still needs to play catch up to other countries? are you saying you're at the early stages of this technology revolution >> of course there are many, many things that are ongoing it takes time, but it's important to first change your image, how you're perceived by your environment. it's over country, over company, and i would say being on this digital field, digital technology and it has changed the talent >> emanuel macron was meeting

with tech executives yesterday, a lot of them big american, silicon companies. something he managed to get out of these companies yesterday and earlier this year is investment on training programs we knows there a global focus on s.t.e.m. jobs, but it sounds like it was more about training programs, specific industry programs he's trying to after chooe achieve here how necessary is that to have experienced graduates or professionals to create ai hubs? >> i think it's an important event. definitely one of the key challenges that we have to solve. but at the level of our planet, not only for france and europe, it's how do we prepare the next generation to these new technologies how do we make sure that we're able to offer jobs to other young -- to the kids, children who will come in the market in five years, ten years ahead of

us >> as a european company, what did you make of the messaging yesterday to the american countries here emanuel macron was talking about commitments. did you think it was interesting that he's element trying to secure more tax, more commitments on the grounds here in france? >> it's part of his job to attract new investors and companies to come to france. >> you hear that everywhere. you hear that in other countries. why was his message different to the message of other leaders across europe who also want technology in their country. >> it's not my job to compare different heads of states, but he's excellent at doing this job. >> do you think mark zuckerberg got a hard time? there's been a huge focus over mark zuckerberg and data privacy breaches, how facebook deals with content on its website what it's doing with user profiles. do you think he got singled out for a hard time in that meeting

yesterday or was that done behind closed doors? >> i think digital trust is really what you have at stake. when you look at what has been done in the u.s. or in europe, asking some questions to these huge companies, for me the question is how do we bring trust so that we can liberate digital technologies if not, the system will collapse >> i'm curious what you're doing with gemelto, 4.8 billion is what it was worth, this chipmaker. big mega deals, fight for the right type of assets what is gemelto mean for you and why you were forced into an acquisition at this point? >> gemelto is complimentary to what we do what we do, we care about

mission data data coming from sensors, from radars, sonars gemelto deals with the identity of an object, the identity of a person, and you need that to combine the two types of data, identity data and mission data to bring an end to end secure offering in the iot world. >> how do you square that away with new data protection rules coming into force tomorrow do you run the risk that you're bumping up against the regulation in europe as you try to push forward with the technology with gemelto? >> as a company, we have anticipated this regulation. we are ready we are ready to comply with regulations. >> what does that mean what did ready mean in your

context? >> to comply to all the new criteria, the new trends that are being set by this european regulation it's part of our business to help companies, to protect data, make sure this data will not leak, will not go somewhere else and it's also a business for us to help other big companies to comply with these new regulations. >> is there a risk that technology is now entering an era like bank regulation where it's all about the fines, bad behavior, regulators will go after that money let's face it. there's a truckload of cash in the industry, particularly with disruptive players >> well, there might be a risk, but honestly i think we are far, far from the banking sector in terms of regulation, looking at this data topic. >> thank you very much for joining us today >> thank you >> enjoy the rest of viva tech

it has gotten into high gear in the last hour or so. emanuel macron about to hit the stage. we have a big line of guests today. the boss of louis vuitton will be next to us talking about luxury, and how digital is important. guinea ro mbegi ginni rometty will be joining us later on i'll speak to the boss of uber for this jurisdiction later on about privacy, workers rights, how do you protect those rights for drivers. and chuck robbins, ceo of cisco will talk to me later today, they're at the forefront of change around technology plenty coming up from. let me toss it back to you in the studio >> thanks for that we have been watching the stage there at viva tech

i believe french president emanuel macron is getting ready to speak the crowds are lining up, i'm sure thanks to you we got a sneak preview of what the president's message will be. i thought it was interesting about this line of regulation, gdpr coming into action, concerns about technology companies, but when you think about the big heavyweight titans in europe, for them they have huge legal teams, huge resources to absorb these changes. i wonder what it will do for innovation at the small and medium sized enterprise level. >> i think those companies as called here gafa, google, apple, facebook and amazon. they need those tech teams take facebook, with their content, if its borderline, there's the thinking that they

will just remove that content. some technologies on artificial intelligence and internet of things need to be careful. mark zuckerberg spoke about that, you might stifle if i go too far with regulation. you might stop that company that started out in a dorm room and took their company to wall street you touch on a good point. >> thank you for that. before we say good-bye, some updates out of the deutsche bank agm, a big story this hour we heard from the ceo, christian sewing he said the revenue environment in the second quarter remains challenging. they can make all the cost cuts they want, but it's that revenue environment where you have less control that really needs to kick in here to convince some investors after the disappointing share performance. the ceo saying equity cuts have not resulted in meaning. revenue attrition.

saying they let go about 600 investment bank employees over the past seven weeks here's the key, christian sewing saying to cut the business, revenues will be important >> "worldwide exchange" is coming up next

. i'm contessa brewer, it's 5:00 a.m here are your five at 5:00 the trump administration launching an investigation into auto imports on the grounds of national security. deutsche bank announcing massive job cuts uber out with new numbers putting its valuation at $62 billions apple teaming up with volkswagen on driverless cars and the biggest names in tech are about to take the stage in paris. it's tuesday, may 24, 2018, "worldwide exchange" begins right now. ♪