welcome to "street signs..." >> and these are your headlines from london. >> european stocks chase u.s. markets higher after the dow reclaims the 25,000 level but the ftse is delayed with it set to open now. retaliation time the eu vows to launch tariffs against the u.s. in july as larry kudlow says that president trump is not solely responsible for rising tensions. >> don't blame trump

blame the nations that have broken away from those conditions very important point all right? trump's trying to fix this broken system. and the shares fall as the drink maker's flat dividends disappoints investors although cognac sales help. warren buffett and jamie dimon are teaming up in a tv first, our u.s. colleagues will speak to the sage of omaha and jamie at 12:00 p.m good morning, again. welcome to "street signs." we were just talking about the delayed open of the ftse 100 you can see it's just opening up behind me about 40 points higher, about 0.5% roughly we have got a bunch of

stocks going -- so that's taking off about ten points from the overall composite. but as you can see, the ftse 100 is starting off on a firmer footing. let's switch and talk about the action in europe this morning. of course we did have a stronger session in asia as well saw a bit of a bounce as far as the asian equities were concerned. this is seeping into europe as well u.s. we're talking about the dow breaking through 25,000 and of course this is beginning to impact european equities trading too. we were talking about the ftse 100. a bit of a delayed open but you can see that across the whole boards, everything is trading in the green. ftse also rebounding somewhat today, up 175 points 8% i want to point your attention to the dax, we are trading higher but germany factory orders came in very weak this morning. nine months in a row they come in lower than expectations so some of the numbers in germany

haven't been that strong now let's move on and talk about the sectors. you see some of the leadership is coming from this morning. we have got banks up at the top there. up 1.3%. this is coinciding with some of the move higher we have seen in interest rates yields both in the u.s. and in europe again, there's some speculation ahead of the ecb meeting next week that big decisions could be potentially made rebounding as well, up about 1.3% driven by some of the bounce you have seen in asia to the downside we have telecoms and travel and leisure. we're headed for a showdown. larry kudlow says donald trump won't step back from the tough trade rhetoric g7 leaders will meet in quebec on friday and saturday, tomorrow and saturday, just days after the white house imposed tariffs on steel from canada and the eu.

trudeau expects frank conversations while angela merkel expects difficult discussi discussions. kudlow asked the other nations to give peace but not policy a chance. >> we are freed up the animal spirits you can ski that by the confidence indexes the u.s. economy is rolling so if you give us a chance, we will fill that bill we will increase the export sales in a significant way i can't promise future trade gaps but i'm saying it is bound to have a positive impact. >> meanwhile the european union has broadly backed a plan to slap u.s. imports with tariffs from july as retaliation against trump administration levies on european steel and aluminum imports. the eu plan would impose a 25% tariff on up to $2.8 billion of u.s. exports and joining us to discuss this simon derrick

i mean, the whole tariff discussion, trade wars have been difficult to play from the macro perspective. i get it from the individual company basis. companies have benefited in currencies, has there been a material impact or material trades out of these trade wars >> i think only a very specific level. so we stopped talking about mexico and canada. yes, you are seeing specific reactions on that particular headlines. you saw the mexican peso under pressure and this back of the story about the tariffs. but overall, it's been up for the markets and the play here -- here we are, you know, a couple of days away from the g7 meeting which looks like it could be one of the liveliest summit meetings in decades and yet the foreign exchange market is largely ignoring it. how does it play out well, if you take the view that it could well, you know, about sent inflationary pressures in

the u.s. which i think that the recent arguments in favor of that should be actually a trade war, then that probably is a time when we have already got pressure coming on yields in the u.s. pushing beyond that big 3% level and that could be the dollar coming back. >> larry kudlow said the -- said it was a family quarrel. would you be happy spending christmas with this lot? >> well -- >> i mean, really we heard yesterday, one said that europe is reaching out the japan. reaching out to mexico reaching out to canada to form what she called the united front against the u.s. the u.n. is talking about cross border investment falling across the board. i mean, does this potentially spectacularly backfire on the u.s. economy do you think? >> look, i believe that free trade is the right way forward

and to the net benefit of everybody. by definition i think the trade wars -- the risk of backfiring on everybody, you know, the unintended consequences story. i think that the problem is that is there are two different approaches taking place here within the u.s. it seems to be the approach of well, this is how we would negotiate in a business situation whereas the rest of the world is looking at this and said, this is what we do with the issues on the diplomatic basis and they're two entirely different approaches now, at the moment, we don't know how it's going to work out. you have to say that you probably think that the diplomatic approach which is the tested one for several hundred years is the right way. >> just quickly, do you think there's a long term potential impact on the dollar have you talked about the impact on the u.s. economy, does that extend to the dollar >> if the initial impact is one of higher inflation then it

could potentially be a lower dollar but in the longer term, if it undermines people's faith in the story for the u.s. economy and the faith in the u.s. economy it could be a different picture in the short term i think it says -- it would be a stronger than a weaker currency. >> so far the green back has been pretty resilient as far as the tariff discussions have been cop -- concerned but had that repercussions across the entire world especially on the emerging markets context as well. how do you think about the short term trajectory of the dollar, irrespective of what's happening on the tariff side >> that's one of the really fascinating stories in the last 24 hours it display into the dollar it is obviously that talk about the ecb pulling away from qe1. what does that mean for the dollar it means there are less investors there, which in turn should push yields higher. so it's very noticeable to me today you are pushing 295, 296

on the ten year. where's that going to play it will play out in the end. turkey, brazil, mexico, those are the currencies that are going to suffer in the same way they did a few weeks ago. >> so you think we'll see another route of emerging market - >> i think we'll see more pressure on the currencies once again and the market is not focused on that coming up. >> that is mainly on back of higher interest rates, yields in the u.s. we'll talk about europe in a little bit but the strength in the dollar side is coming from higher yields and more hawkish -- >> absolutely that i think this idea that you're talking about higher energy costs which is the side issue but primarily those nations have got high exposure to dollar denominated debt they're in big issues here. >> thanks so much, simon we'll come back to you in a moment larry kudlow meanwhile, he's backing the tough talk in trade but one said that the trade rhetoric has destroyed check this out, $1.25 trillion in

market value since just march. for more on that head to cnbc.com and warren buffett and jamie dimon have joined forces to call for an end to quarterly earnings guidance the jpmorgan ceo chairs the roundtable and said that group of ceo's is supporting an end to the practice they argued that quarterly forecasts encourage short termism. increase volatility and ultimately harm the economy. later on cnbc don't miss warren buffett and jamie dimon in their first ever tv interview. that's coming up today at noon central time. >> i'd be interested to hearing their justification for while all of a sudden -- at peak cycle they have decided this is the right time to remove the forecasts. anyway, speaking of carp rots, despite better than expected sales, they have kept

$1.65 a share but raised the profits guidance investment banking will bear the bulk of deutsche bank's cost cuts speaking in frankfurt the cfo says that more than half of the 2 billion euros worth of cuts planned will come from corporate and investment banking. in total, they slashed the euros from the cost base over the next 18 months. right, so we have been chitchatting for about ten minutes. if you want to get involved in the conversation, follow us on twitter @street signs cnbc or tweet us directly coming up on the show, italy's new prime minister warns european leaders that the challenges of migration must become more of a shared responsibility stay tuned the first survivor of alzheimer's disease is out there. and the alzheimer's association is going to make it happen. but we won't get there without you.

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welcome back to "street signs. the u.s. government is reportedly pushing for saudi arabia and other opec members to hike oil production. oil prices recently hit a

three-year high prompting public criticism from president trump steve mnuchin said that washington is trying to offset the impact of sanctions on iran. meanwhile, saudi arabia and russia have signalled that they're likely to gradually revive oil output in the second half of the year opec members are meeting in vienna later this month to discuss the possible relaxation of supply curves earlier we spoke about the possible outcome of the opec meeting. >> the question is whether it will be done officially with the -- with the sheiks from saudi arabia and russia on one side and then the possibility of an anonymous decision is pretty slim from today's point of view. with only two weeks to go, there are many things to be watched. i think that saudi arabia will be pushing for an anonymous -- a

unanimous decision and it's very necessary. but at the moment, as i said, the chances of it are really slim and it might be one of the worst opec meetings since 2011. >> one of the worst opec meeting since 2011 on that note let's look at how the oil market is shaping up we're slightly firmer today in trading. brent is trading up and down from the $80 we reached a week ago and wti around $65 as well a little bit firmer. simon derek is still with us how are you thinking about -- well, obviously the opec meeting is going to be a big one but you have got two factors on both sides you have got you know the reduction of supply coming from venezuela. got the production curves from opec, but then on the other hand you have got pressure increasing on the -- a lot of political pressure from the u.s. on saudi to do something about the curve.

>> i think there's been a far better relationship with saudi over the last two years from the u.s. and i think that's a significant factor this is not the relationship of 2011, 2012 between the obama white house and saudi which was far more fraught so there's a very strong chance they'll listen to the u.s. secondly, saudi will want to remind everybody it's a swing producer and it will remind everybody what it did in 2011 and 2012 and 2013 and 2015 this is another reason why i think i said you might be prepared to listen it's this. that if you go back to 2007-08 when ben bernanke was cutting the rates aggressively, the biggest impact that had was a huge slowdown in the u.s. economy. in fact, the global economy. remember what was happening to shipping prices. how much of the driving season

so from their perspective particularly at that point in the economic cycle do they want to kill the goose that laid the golden egg, probably not so oil prices are somewhere in the -- between 70 and $80 a barrel. >> a bit of a push and a pull. you have the saudis looking at the domestic budget thinking we can do with every penny above 80 bucks a barrel that will help us recreate the currency curves and then you have the americans saying trump in particular, we don't want people spending more money at the pump. >> at a time when u.s. are pumping record amounts of oil with the advent of shale. >> you're right. it is a balance and the fact they went to borrow the money and the bond market was astonishing. but it's the case of the longevity of this and also the politics between the u.s. and saudi. i think it's that -- that's what

really matters >> simon, we'll leave it there we'll come back to the discussion when we have a read about spain. >> yes the prime minister has appointed more women than men and that means they have more female cabinet members than other nation it's given them the portfolios for the economy and the finance and defense. and the bank sector is trading up higher after they won the second confidence vote speaking yesterday, conte outlined the priorities and promised to be tough in negotiations with the european union. he said they have not done enough to do with the migration crisis. >> translator: we have to manage the migrant's flow until now this management at the european level i think we can all agree with this evaluation has been a failure we want to promote a more equal redistribution of responsibility at the european level.

and in particular, it's not only an economic issue, but as chancellor merkel has also said it's an issue that concerns a concept of european citizenship because there's no point asking more from europe if then we're left alone with all the other border countries facing these problems or if we're faced with the dilemma, the blackmail of there being financial incentives if we manage it alone. >> a pretty topsy-turvy couple of weeks politically but it does seem like some of the equities there are coming back from some of those dramatic losses we saw last tuesday in particular the banks of course, they fell as much as 7 or 8% individually over the course of the day. they are now up more than 1% so far this morning you see the 12 month period that's still down nearly - >> what's interesting about that, a month ago the index was the best in -- >> in europe, absolutely right to talk to us about this more, we are joined from milan this is an easy win for conte

and the vote yesterday what is this reaction in the banking sector all about is it about that confidence being restored >> well, you know, as you were saying the banking sector in general is up about 1% today, but as you were also noting it's quite far from the levels where it was at, that graphics you were just showing is really emblematic we're far from where we were at the beginning of this year so certainly there's still a lot f of -- you know, there are a lot of question marks as to how this conte government is going to move forward on the issues that it reiterated yesterday where it got 350 positive votes for approval they again touched on the basic income, the tax cuts, the justice system, pushing for growth you know by not relying on austerity, pensions and wages, immigration policy. there's a lot in this plan that was made up of two parties that are on opposite sides or were at least until the elections in

terms of how they had campaigned in the months up to the elections. so there's a big question mark on how they will handle things you know one new comment was made by conte yesterday which is regarding the smaller regional banks wanting to maybe come back on some of the work that was done by the government or some of those reforms that the regional banks had undergone so the overhaul may be pulled back, so there's a big question mark on how this government will move forward what does that do? well, obviously that affects the spread we are seeing the spreads definitely going down to where, you know, compared to where we had seen it, you know n the peak of last two-week crisis, but far below the 200 basis points level where it was before all this began after the election until you see the spreads going into the area there's volatility on the italian banks remember, they hold a lot of sovereign debt so the spreads

impact the numbers of the banks. so it will continue to be a volatile time. until we get more clear messages and in the meantime, it's going to be a rough ride certainly you will see good days and worse days but today it's a positive day the idea is that this epic occurrence that this -- you know, populist government coming in and being able to finally take over in parliament is actually happening today is perceived as a positive but we'll see what tomorrow brings back to you. >> claudia, thank you. thank you for the live update from italy in the milan studio there. meanwhile, the euro is hovering a ten-day high against the dollar after the ecb's chief economist hinted that the central bank could begin to discuss the end of qe at next week's meeting speaking in berlin, pratt said that the governing council has to assess if sufficient progress has been made to unwind the

asset program. striking a hawkish tone was the bun disbank adviser. money markets are now pricing in a 90% chance of a rate hike by july 2019. i'm happy to bring in simon derek who is still with us let's talk about euro because it feels as though sentiment changes very abruptly on that currency on one hand we're talking about the demise of the eurozone as we know it and it's bounced quite a lot on expectations that the ecb will turn more hawkish how do you think positioning is right now? >> well, i certainly think that the positioning going into the start of this week after the italian prices of the potential italian crisis last week, obviously, i would say it's short. the fact that they have been hit by the idea that we're going to start winding up the purchases clearly has had a fairly dramatic effect. you have to look at the way that the five year and the ten year and german and u.s. spreads are

moved to see how that's shifted and why is the euro doing what it is doing. whether that lasts, whether we go back to the more fundamental issues is perhaps the key. >> i think that the expectation was that because of everything that was happening in italy and in financial markets due to italy people thought that the ecb would stick to the dovish line and the data is quite weak as well. i think it was surprising to the market that we had both pratt and wiedman coming without the hawkish comments yesterday. >> the view that the ecb would want to take a hard-line towards italy and make certain that you're starting to -- you're showing that you're not reacting to them going down the fiscal spending route. >> let's talk about that so if i've got this right, the president of ecb said they're ready to start tightening and merkel said they can't be a debt zone and it would create dubious standards. and others say they have to keep playing by the rules if they

want to keep pieing the paper but none of this is particularly supportive of the italian government's policies. do you think it could force them to reconsider how they're going to approach brussels or do you think those battle lines are going to stay set? >> oh,i think these battle lines are being drawn and everybody knows exactly what they're doing. this is -- you know, if you like, we have been through this many, many times in the eurozone and i think that italy knows exactly what position it's in. brussels and frankfurt knows what position it's in. and the question is whether italy is too big to fail it is too big to fail. that's where this is going to come down to at some point later this year when the discussion about the spending program really starts to ramp up. >> quickly we have about 20 seconds. where do you see euro heading from here? where's your targets on the currency say by year end >> i think the short term we bounce, but i think from here we're going to start heading lower again from the dollar on high yields.

and theitaly story -- 110, 111 possibly lower. >> good news for the holidays. >> exactly but the italy story is not going away any time soon simon, thank you for joining us. chief currency strategist. coming up on the show, we'll get tariff reaction from one of the steel players. the cfo will join us after the break. why did i want a crest 3d white smile?

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start your day earlier and smarter on top of the news. >> stocks rebounding. >> ahead of the game. >> time for the big money stories. >> brian sullivan, "worldwide exchange," 5:00 a.m. on cnbc welcome to "street signs." >> i'm willem marx here are your headlines. >> european stocks chase u.s. markets higher after the dow reclaims the 25,000 level. after delays open to the technical issue the ftse 100 has also joined the rally. retaliation time the eu vows to launch tariffs against the u.s. in july as white house economic adviser larry kudlow says that trump is not solely responsible for rising trade tensions. >> don't blame trump blame the nations that have

broken away from those conditions very important point all right? trump's trying to fix this broken system. the drink maker's flat dividend disappoints the investors despite cognac sales delivering bigger profit. and warren buffett and jamie dimon are changing the reporting standards. in a tv first our u.s. colleagues will speak to the sage of omaha and jpmorgan ceo together at 12:00 central european time. all right. checking on the markets we're talking about how u.s. equities bounced in yesterday's trading the dow is through the all important psychological level of 25,000 again we are seeing the picture in europe and interesting the ftse 100 after a stronger open is

trading weaker on the day. we have about ten points effect from the punch of stocks going exdividend there it looks as though the political tension is beginning to creep into that equity index special as we head into the -- especially as we head into the brexit negotiations are concerned. the other indices are trading in the green. ftse, the outperformer up about 170 points about 0.8% a lot of volatility in the italian markets. let's talk about foreign exchange because the theme of the past couple of sessions has been one of dollar weakness. dollar is coming off a little bit after a strong may giving back some gains and we see that in euro/dollar charging higher this morning up about 1.4% stronger on the day. cable is stronger to the tune of about a third of a percent you can see the yen is trading, and that tells you the yen is appreciating it. against the back drop of slightly weaker u.s. dollar.

now let's switch to the u.s. picture. see what the picture is like the dow is opening up 60 points and the s&p about six points higher as well so the mood is quite positive as we head into the u.s. equities open. heading for a showdown, larry kudlow says donald trump won't step back from his tough trade rhetoric that's as g7 leaders prepare to meet in quebec on friday and saturday this is after the white house imposed tariffs from canada, mexico and the eu. ahead of that summit, justin trudeau says he expects very frank conversations. german chancellor merkel is forecasting quote, difficult discussions. meanwhile, the european union has broadly backed a plan to slap on the tariffs as retaliation against the trump administration levies on european steel and aluminum imports. the eu plan would impose a 25% tariff on up to $2.8 billion of

u.s. exports and i'm happy to say that joining us to discuss is marcus ketter, cfo of steel distributor. and you join us on "street signs" to talk about that. what's interesting is that you are -- you are a steel distributor. so i'm expecting as far as your company is concerned these tariffs may actually be a positive development for you >> and that is true, because we are buying in the u.s. we are buying locally. and we are selling locally so the import -- it's between 7 and 10% in the last two years. so what happens in the u.s. is that due to the tariffs the steel prices are rising. we have inventory, so our inventory is getting worth more. so for us, it's a positive but of course it's a question what the whole economy will be doing with the steel prices. >> not a positive for the consumers because the prices get pushed on to them. >> absolutely. that's why i said it's a question of what happens

actually to the whole economy because everyone who is using steel is buying steel has now higher material expenses and this other means that profits are getting pushed on to consumers or that experts are getting -- exports are getting more expensive in comparison to the outside companies. >> now, the pretext for slapping these tariffs on from the u.s. side was obviously national security but beyond that, of course, the bigger issue in this steel industry is that of overcapacity would you say that these measures are actually addressing some elements of that overcapacity >> well, what we are seeing in the past is that the solution of overcapacity in china and in europe was especially in one year that it was sold to exported, so we saw that our steel prices went up by 30% in one year and the u.s. at that time said, well, the solution to the overcapacity in china and europe cannot be this that this overcapacity gets exported to the u.s. so there's a point with the

overcapacity in the world. >> so last year, your ceo, your colleague said he hope the u.s. would impose tariffs on china. they were looking at what the impact of the overcapacity could have on the u.s. market. do you think there's any way that this u.s. action is a good thing in terms of forcing the europeans to create safe guard measures because that's again something that you presumably want to see. >> well, that's what the european steel industry wants to see and also our stability in prices because the price is driven by the supply-side. so when china exports to europe, then there's oversupply and then the prices are going down again. as i said for the -- the same is true for europe. the solution of the chinese steel overcapacity problem cannot be that there's overcapacity that gets exported to europe. >> but isn't there some contradictory effect which is that the chinese would be more

incentivized to export to europe now given that the tariffs are going so much higher in the u.s. >> well, absolutely. that's why -- that's what we are looking at we call this will there be a diversion of steel volume basically into europe? that's one of the angles that we're looking and what happens with the steel that was exported to the past to the u.s that needs to be solved, so it could be more competition in europe just by having more european steel in the market. >> i'm asking almost now as an analyst. you're a cfo so you have a macro view on this do you see some pain in the future of german steel for instance >> well, there could be. we don't see it yet. so we are looking closely at that we are getting asked by investors the same question. and i can say right now the steel prices are not really gone perhaps a little bit of a trembling, but as i said, there are two angles one is diversion of steel volume

from the u.s. which can get imported into the u.s. and the other is the european steel itself. >> can i ask you about the macro environment before all of these trade discussions started taking place. and whether or not you detected a pickup in trading activity and whether you think that is going to be negatively impacted by these tariffs. >> well, the problem with tariffs is always the tariffs and then the countertariffs. for me the question is there be a solution to the tariffs? it's not doing to be helpful for the economy neither in the u.s. or europe if both sides impose tariffs. i think this can be the start of the negotiation now and see that tariffs are going down again and i hope actually that this will lead to more free trade than before i think what they're doing right now they're building up leverage to have some serious negotiations. >> see how that plays out over the next few days.

thank you, marcus ketter, chief financial officer. and relatively related matter, macron met with trudeau in ottawa ahead of the g7 meeting both men have pushed the virtues of multilaterallism, with macron saying there's a convergence of ideas. meanwhile, shinzo abe has arrived in washington for talks with president trump ahead of this weekend's g7 meeting just outside of quebec city abe and trump are expected to meet later on today with the adviser of kim jong-un meanwhile, president trump's top lawyer rudy giuliani courted controversy by saying that kim jong-un quote begged for the summit to be reinstated after the u.s. president briefly canceled it. >> well, somehow north korea -- after he canceled the summit because they insulted the vice

president, they insulted the -- his national security adviser, and they said they were going to go to nuclear war against us they were going to defeat us in the nuclear war. we said, well, we're not going to have a summit under those circumstances. well, kim jong-un got back on his knees and begged for it. >> that was rudy giuliani the former new yorker -- now one of the personal lawyers of president trump talking in israel and i'm happy to say we're joined by nbc news' tracie potts in washington this morning. this is not the first time that mr. giuliani has waded into what amounts foreign policy despite having no formal role in that area, is it? >> no, it's not. but he is keeping -- keep in mind, president trump's personal lawyer, he does not represent the president on policy issues although when he speaks a lot of people listen. his big job right now is to deal with that russian investigation.

>> we have heard over the weekend about a number of developments when it comes to how mueller is trying to chase up individuals who may or may not have been working in terms of that collusion. i wonder if you can give us an update in terms of what's happening with the investigation. >> yeah so the latest with the russia investigation is that we still don't know when it's going to wrap up we do know they're still negotiating or trying to negotiate with the trump legal team, rudy giuliani and others, headed by rudy giuliani, on whether or not the president is going to sit down and do an interview. the president according to giuliani really wants to do it and giuliani is advising against it some of the questions they don't know in advance, the evidence they have not seen in advance could trip up the president and he could end up facing a charge of lying to federal prosecutors because of what he say ins the interview doesn't line up with what he said before publicly, with what his team has said before to the russian investigators or other evidence

they may have. >> can i ask you about the upcoming g7 summit, it's being called the g 6 plus 1 summit because the u.s. is somewhat sidelined. i thought it was interesting when mr. macron was describing the phone calls he has with president trump he referred to them as sausage because you're better not knowing what's inside what can we expect out of the upcoming summit? i believe that mr. macron has scheduled a bilateral meeting on the side with president trump. will that yield any results? >> we don't know the g 6 so to speak in this summit are not really expecting to resolve the biggest issue that they're facing in these two days which is trade and the new tariffs that the president has now imposed on canada and mexico and the europeans. long time allies who had had a break from the tariffs when he first imposed them but as of last week they'll be paying more to ship steel and aluminum into the united states. mexico is not part of the g7 but

they are affect by the tariffs they have already responded with their own. the eu says they'll do the same. it's a tense situation president trump according to the washington, d.c. doesn't want to go because he doesn't want to lecture from these u.s. allies on trade he's done what's he's done but as far as we know, he's going and as far as we know that's the big issue why long time u.s. allies are being subjected to these tariffs >> absolutely. and the big question is of course whether or not they succeed at changing his mind but he seems pretty resolute thank you for that tracie potts from nbc. now get involved in the conversation we discuss steel, we have discussed g 6 plus 1 or g7 @street signs cnbc on twitter. but don't miss our interview with the ceo of bayer as it completes the takeover of

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welcome back to "street signs. daimler's truck unit has unveiled the all-electric big rig truck stepping up with rivals such as tesla it has a 250 mile range compared to the 500 mile range of tesla's semi-truck and is expected to be in full production in 2021 at the launch the truck maker ceo said a potential spinoff of the units from the passenger car business would be up to shareholders meanwhi meanwhile, tesla spiked after elon musk said the cars are expected to hit the production at the end of the month. and the share movement short sellers petting against tesla -- betting against tesla lost more

than $1 billion. tesla is the most heavily shorted stock in the u.s. as well as the most heavily shorted automaker in the world pretty interesting statistics there. well, it's light, it's bendable and it ask conduct -- it can conduct electricity it's grafeen, that can alter energy storage our team at the university of cambridge's center where the researchers are working hard to find the potential uses for the substance. >> at only one atom thick, this is a million times thinner than a thinner than a strand of human hair no surprise that finding everyday uses for the super material has required significant funding and draws on the expertise of the top academics. >> you have a unique set of properties in terms of the electrical conductivity, interaction with light, so on

and so forth for this reason, what the united kingdom, the european union, japan, the states are putting significant investments to try to exploit the properties of this material. >> the scientists say coating copper with a silicone solution and the new material then forms a battery cell that faces a rigorous testing system. >> well, we want to know the capacity of the material that was made and also we want to know the cycle life that's really important. thousands of cycles and that's our goal. >> the flexible properties mean there are few limitations on its potential uses. >> the challenge here is to it's a textile and potentially could be integrated on the surface of the skin. >> with so much global investment, there's big pressure on researchers to bring the substance to market. >> if we don't reach some key initial applications in the next

six years i think this material will be under a lot of scrutiny and may not find further people interested in the long term. at the moment, i'm very positive for the next four or five years. and then we can speak in 2024 and see what happens by then >> and you can learn more a lot more about the substance and plus more energy storage at 11:00 right here on cnbc make sure you set your dvr and check it out. >> interesting technology. brussels is reportedly set to hit goingel with a fine as early as next month for abusing the dominance through the android mobile operating system. the eu competition commission is prepared to announce the decision within weeks. they can impose fines up to $11 billion, 10% of the turnover of google's parent company of

alphabet but a penalty in the lower range is expected. google has denied any wrongdoing this reminds me of microsoft and internet explorer. remember that whole saga that they were abusing the market share. it seems like a pretty similar situation there. wait to see what happens >> clamping down on the sdig tall -- digital companies. and speaking of one, facebook has come under fire from u.s. lawmakers after it was revealed to have shared data with four chinese companies. both democrats and republicans have called for the social media firm to be more forthcoming about the data it had shared facebook responded to the criticism saying quote, the arrangements in question had been highly visible for years. and bayer the german based life sciences firm is expected to close the long awaited takeover of monsanto later on today. it will see the monsanto name retired and it will be removed from the s&p 500 and i'm happy

to say we are joined by the editor from deal reporter. this kind offal complicated -- of this complicated merger, is it a sign of things to come? is this about unwieldily conglomerates? >> it proves if you're a large corporation willing to execute a large merger there are several antitrust regimes that can formulate a single solution that will work for all parties. >> 20 different countries, they have to have a say in this crazy. >> it's a massive deal, but what you saw is that even though the european commission for instance which initially had 700-page long statement of objections came to the conclusion they had enough divestitures to clear the deal the department of justice as well reached i think a record settlement for the deal ordering

about $9 billion in divestitures and then the deal got done. >> let's look at that in more detail you mentioned the doj. do we see this deal as the latest trend whereby behavioral remedies beat out structural remedies if you look at the difference between the way that the department of justice -- if you look at the farming sector in particular, the european commission took the view that behavioral remedies would have been adequate and the department of justice ordered an absolute sale so no monitoring in the future so you see the difference between the paradigms. >> the europeans are like, we trust you to do what we asked. >> you think of cost as well monitoring is something that adds up to be expensive. we'll see how it plays onut the

long term. >> can i ask you about the m&a activity as a whole. it appears as though the number of m&as going on this year is the highest since the financial crisis but then the number of deals is less. so that tells you that the incentive is for deals to be larger, but less deals are taking place is that what's happening >> yeah, year to date, i think one of the big drivers of m&a activity is chinese outbound acquisitions look at the individual basis i think this is very illustrative. shier's bid was a huge premium that most industry players decided not to get involved in because the market thought that a lot of players were overpaying you can look at china recent bid for the company in portugal as large bids by chinese companies that may be historically have been willing to pony up more. >> do you think some of that is the fact that chinese companies are potentially front loading

ahead of the further intellectual property protection and the pairiers are going up in the -- barriers are going up in the rest of the world? >> yeah, that's a buzz word because of the regulations coming out an auto parts manufacturer, it's a perfect example of rushing to get through the door before any additional regulations come into play. >> the u.s. tax reform, are you seeing a pickup in m&a activity on the back of the tax reform that's taken place or has most of that money just gone into share buy backs as most of the evidence suggests so far >> yeah, i think it's really most companies whenever there's an opportunity to return capital to shareholders will pull that as the first lever so if you look at the european share of m&a to date it's at the highest level since 2013 with 30% of deals so definitely european deals are dominating. >> thank you for joining us.

we have been talking about bayer. join us later on as we speak to the chief executive of bayer as the company completes the takeover of monsanto. >> let's look at how the u.s. futures are shaping up in the early session. dow is seen opening up about 50 points higher so s&p about six points higher. of course it has been a very strong couple of days for tech stocks and nasdaq is opening ten points higher. that's it for today's show. >> "worldwide exchange" is coming up next

good morning here are your top five stories at cnbc global headquarters. breaking news out of london. the stock exchange now returning to normal after a technical delay delayed the opening. warren buffett and jamie dimon is calling for an end to a widely used wall street practice. president trump talking trade with the japanese prime minister at the white house today. carl icahn reportedly building a stake in one well known company. and why an rv maker is sending a warning sign about the economy. it's june 7th and "worldwide exchange" begins right now ♪