welcome to "street signs." i'm willem marx. these are your headlines the countdown to a decision is on with opec ministers locked in a room in vienna, oil prices rally amid uncertainty on whether saudi arabia can bring iran on board and come to an output increase. the euro rallies against the dollar after french pmi beat expectations in june but german manufacturing cools on trade fears. angela merkel's hope to secure an eu-wide solution on

migration dimmed as cold water is poured on the chancellor's plans ahead of a summit in brussels. a historic deal is made in luxembourg as a debt relief agreement is reached for greece sending yields lower good morning i'm willem marx in london. just to bring you pmi numbers from across the eurozone, we have the composite pmi output prices at 54.8, that's against an estimate of 53.9. that's up from 54.1 in may in terms of services pmi, that's at 55. that's against may numbers of 53.8 against expectations of 51.7 manufacturing pmi at 55. that is down from last month, 55.5, but very much in line with

expectations you can see the euro is slightly stronger on the morning against the dollar but has come back down from the french pmi numbers over the last couple of numbers that gave it a spike. let's look at some currencies across the rest of the world you can see that the dollar strengthening around a fifth of a percent against the yen. the pound is stronger by a fifth of a percent against the u.s. dollar the dollar weaker against the swiss franc. a bit of a mixed picture for the dollar certainly the euro is strengthening over the course of the morning against the dollar, though not taking a massive spike on the back of those eurozone pmi numbers looking at equities across europe, been a positive start to the morning so far the stoxx 600 is now up after a mixed week across the board. in terms of the individual

markets driving numbers, all four indices in europe are well into the green you have the ftse 100 in london up 0.3%. similar story in germany with the xetra dax. the cac 40 is up a half percent. in italy after a pretty difficult day yesterday on the market, you can see it's up 0.9% let's look at the sectors. oil and gas sector is down, below the flat line ahead of this opec decision today banks are well into the green, up more than 1% across europe as are financial services and industrial services are up i mentioned that opec meeting. oil ministers are meeting in vienna to discuss increased production russia and saudi arabia have been spearheading to raise output levels, iran so far

provided stiff resistance to the move an opec delegate told reuters that not all members are likely to accept proposals to boost production wti crude up nearly 1% as is brent. still a significant spread but it's narrowed since yesterday between those two numbers. you know, we will be hearing shortly from our colleague, steve sedgwick he's readying himself to speak to some of the most powerful oil ministers in vienna. we'll cross live to steve when those doors are open to the press. despite iran registering opposition with cnbc earlier this week, there have been positive noises from other opec members. steve sedgwick has been talking to the cartel'smajor players >> i don't think every decision in opec needs this, i don't believe in this meeting we that.

i would like to believe opec is an independent organization, not american organization. >> oil and politics go hand in hand over the years what this is doing is given the clamor by the u.s. president, the consumer body by india and china and the rest of them, it's to bring them around the table >> are you more optimistic of a deal >> yes, i am optimistic. >> is iran on board? >> we'll find out. >> we'll reach a decision that suits the market and consumers and stability of the market. >> we have been discussing the building blocks of this framework. the decision was we should institutionalize this

partnership. >> i'm confident we will reach some sort of agreement >> iran and iraq an venezuela are on board with production hikes? >> we will discuss that. >> steve sedgwick trying to get comments there joining us is beth evans. thank you for joining us what are the concerns for the iranians >> politics has overtaken everything far beyond the supply, the demand, even the price in this particular meeting. the iranians are up against the u.s. sanctions that will knock out some production, their ability to gain back the market share they lost before that's really the concern. >> they can't sell on the market or they can't get the product to market >> they will -- the people who normally buy their crude will think twice and not necessarily buy it >> is this really then about

market share, this potential disagreement we've seen manifested in the last couple of days >> i think a lot of it is. i think everybody knows that the biggest amount of spare capacity and that is around 2 million barrels per day right now, that chunk that is able to be pulled out and cooled down is mostly coming from the saudis if the saudis do that, it's their crude going out into the market iran will be faced with the inability to get theirs to the customers they want to get it to >> this is about the ranians, the venezuelans, the iraqis worrying that their slice of the pie will be diminished is that a fair assessment? >> absolutely. it's about market share. in this case it's also -- the discussion flipped from one of production to demand it's all about what the customers want there's a big ask on the saudis now from the u.s.

administration trump has been tweeting saying he's unhappy obviously a big ally of the saudis at the same time the saudis have the ipo they're trying to launch so they need to look like they're in control of the management basically of this supply and opec needs to look like a cohesive group to be taken seriously. >> this is the big question. the saudis on a geopolitical level, no big fans of iran not necessarily looking to help the iranians per se, they have to find that balancing act where they can show that opec operates as a unified whole they will not go off on their own with the russians and bilaterally declare they'll increase output. that's a delicate act for them, isn't it >> absolutely. it's a bit of a dance right now. you have the russians and the saudis with different levels that they think can come out of

this the saudis have been saying maybe 300 to 600 the russians have been saying 1.5 million barrel per day increase the latest out of opec was 1 million barrel per day increase is put on the table. it could be maybe iran says okay, we can go with that. and they have a little win because it's not as high as the 1.5 as the russians offered. >> it's no secret saudi arabia has been struggling with a budget deficit they've been spending their currency reserves pretty aggressively because they had to because of where oil prices have been it's at a level where they said they're happy with it. they presumably think there's enough demand in the global market for them to increase outpu output >> yes the saudis yesterday said they're expecting the second half of the year to be 2 million

barrels per day more demand than the first half they're setting it up for rationalizing why an increase needs to take place. it's based on their sort of putting politics aside and basing it on strict demand and the call from consumers to add more crude >> the success rests on the idea that they can say this is about consumers, about what they need, as opposed to whether we can sell another hundred thousand barrels. that's the dance, right? >> absolutely. >> if you look from a global perspective, how bad is the supply/demand imbalance >> at this point, the expectation out of opec is that you would be 2 million barrel per day increase coming out of the second half.

the overhang is pretty much gone at the same time you have the big drop in the venezuelan output you have the sanctions coming up with iran. >> libya >> 450,000 per day cut at this point, or in jeopardy. they say they've taken back some ports, but other ones, the storage tanks may be damaged so there's a lot of moving parts. >> how significant, if today's decision goes ahead, if we see this production increase, how significant an impact could that have on the global economy >> well, it will cool things down a bit obviously the global economy works out better when you have prices that consumers can actually take on board and deal with i think it's fair to say that people think that anything over $80 a barrel is going to start hurting rather than helping

global economies >> when you hear that phrase, as i have a lot over the last few moments about overheating, that's a legitimate concern? >> absolutely. >> one other question about american producers they're not represented in vienna, not getting a seat at the table, but mr. trump has been trying to essentially stamp his mark on this meeting they want to see increased output in the u.s. but yet they still need opec for price stability. >> it's a fascinating story. one of the big shale players was in vienna this week with pioneer. he went up and was speaking at a seminar, and he basically asked opec to increase production. this is highly unusual for the u.s. who is pumping away at the crude saying can you add more to

the market and cool down prices. but there's something there that's interesting to look at which is the fact that this will be a one-two punch from the states you had the balkan explosion, all this crude hit the market. now they're building out the permian, the area mostly in west texas, a bit in new mexico that is a lot of crude that will hit the markets. they just can't get it out right now. >> this is just about pipeline capacity in some ways. >> absolutely. 3 million barrels per day of pipeline capacity is being built right now and will be coming to a market near you in the next couple of years. >> beth, stay with us. we'll take a quick break that was beth evans. coming up on the show, we'll go out to vienna. if you have views on opec, get in touch on twitte twitter, @streetsignscnbc. steve sedgwick is standing by to interrogate opec ministers after the latest ministers

we'll bring you inside that meeting once the doors have been opened

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welcome back to "street signs. the u.s. department of health and h and human services visited three military bases in texas as it considers how to house unaccompanied children that entered the united states. the government agency asked the u.s. department of defense if it could hold up to 20,000 unaccompanied children at u.s. military installations the administration has given no further details on how many children are currently detained at facilities and how many could end up at these military bases melania trump visited to the texas/mexico border to visit a detention center >> reporter: in a surprise visit to waterlogged texas, melania trump weighed into the controversy that has drawn worldwide outrage. >> and i'd also like to ask you how i can help to these children

to reunite with their families. >> reporter: she visited a children's shelter with 55 kids, mostly teenagers six of them separated from their parents. >> these children, most of them come here alone without parents? >> the majority of our children. >> reporter: the department of health and human services says about 10,000 of 12,000 children in its care are unaccompanied minors, most are teens 13% are younger than ten the first lady's visit came a day after president trump signed an executive order to cease the separation of migrant families at the border, saying his wife's advice was key to his decision. >> my wife feels very strongly about it. >> reporter: last weekend she said, we need to be a country that follows all laws, but also, a country that governs with heart. but tonight, more than 2,300 children separated from their parents under limbo. there are mounting questions about how they'll be reunited and growing confusion within the government. today a u.s. attorney's office in texas told

nbc news some pending criminal cases against parents separated from a child would be dismissed but the justice department later saying that's not true. the defense department now sending extra military lawyers to help prosecute cases. how overwhelmed is the immigration system in south texas right now? >> there are not enough resources to do what the government wants to do right now. >> reporter: today mayors from major u.s. cities gathered at the border calling this a humanitarian crisis. >> the reason that those children cannot be reunified is because the system is overwhelmed by this policy. >> reporter: despite repeated requests, our cameras haven't been allowed inside migrant children shelters around the country but new images released by hhs show living conditions inside facilities in florida and virginia. kids doing homework, eating meals at cafeteria-style tables and playing soccer. for the youngest there are cribs, high chairs and small beds with brightly colored linens.

>> here in europe a draft accord on migration has been put on hold after italy and germany disagreed on certain details giuseppe conte objected to proposals that would force migrants elsewhere in europe to return to where they first applied for asylum in the eu this clash between rome and berlin has risen just days before 10 eu leaders meet in brussels on sunday to discuss migration. angela merkel called this emergency summit in the hopes of developing an eu-wide response to migration that would help her stave off a rebellion from her junior coalition partner. italian banks are rebounding after fears over the new italian government sparked a selloff and spike in yields yesterday. the banking index plunged after two anti-euro politics were appointed to head important committees inside the italian parliament.

eurozone finance ministers reached a deal on debt relief for greece this will ease repayment terms on the country's nearly 100 billion euros of bailout loans the terms saw maturities extended and interest deferred while athens saw a cash injection. european leaders hailed the deal one said this marked an end to the debt crisis. >> translator: it's not an ordinary moment. it's an exceptional moment it's a historical moment the greek crisis comes to an end here tonight in luxembourg we reached the end of this journey that was long and difficult. it was quite long tonight but it's been prepared well. it's a historical moment it's a historical moment for greece because it's eight years of reforms and sacrifices that are coming to an end a new chapter may follow it's also a historical moment for the eurozone because of the completion of the program. it's a symbolic moment

a crisis for a single currency in which integrity was threatened, a crisis it has overcome. joumanna bercetche joins me here in the london studio. that was a nice speech from him. and there were other similar statements from european leaders after the deal was reached if you two back to 2012 and look at the numbers the euro group predicted for debt to gdp ratios, they were saying by 2022, we'll get it down to 117%. it's now at 177% that doesn't look attainable how will this help >> you hit the nail on the head. in terms of the absolute number of debt as a proportion of gdp, it's 180% whether they pay it back in one-year's time or 50-year's time that debt is the same debt load as before. but everything has been pushed back by ten years. let's break it down into what

was offered versus what greece still needs to do. in terms of what they got, they got a ten-year debt extension for about 100 billion euros worth of debt. also another ten-year grace period when it comes to the interest payments. that means in the short term they have less imminent payments, less imminent debt repayments and less interest payments that buys them more time they finally agreed to the final disbursement of that 50 billion euros hanging over them, the last bit of the agreement that had to be agreed on. that will be dispersed >> is thatbecause they met all of the requirements or just decided they haven't but they would get the money any way? >> i was leading up to that point. let me continue on the last point, they also agreed to disperse 4 billion euros worth of profit that the ecb holds from buying out greek debt in terms of the conditionality,

you're right they have to stick to reforms. they have not completed those 8 points set out by the creditors, but the intention is there. they will be monitoring every three months crucially greece will be rushing back to the market in august that's the big landmark occasion here let's not forget they have been under program. they have been basically bound by creditors for the last eight years or so. from that perspective they are turning a corner and trying to go at it alone now they've been issuing greek bonds for the last couple of years but also had the help of the institutions and the last -- >> domestically mthey will have that monitoring, and they don't want that. >> they will, but that's a quid pro quo for the program. portugal and ireland also exited

their programs they're still subject to monitoring a quarter or every six months you can just leave the program and not be subjected to continuing monitoring. the other condition that's interesting, this will be difficult for them, one of the conditions and assumptions is that grease will have a surplus of 2.2% from 2023 to 2060. that's assuming that the greek economy continues to grow. you're saying over the next 40 years there can't be a recession, because if there is, then that raises some of the conditions they have for providing some of that help. there are a lot of moving parts. the headline is that greece is coming back to marketsment it's been eight years in the program. a lot of provisions, but it's a landmark event >> joumanna, thanks for that opec ministers are meeting in vienna.

print journalists have been allowed into the room, so it's only a few moments before steve sedgwick can speak to them we'll cross over live when the doors are opened that meeting going on there. you can see that both brent and wti seeing pretty positive gains so far today you can see on the board there that the wti is up to 66.26 a barrel, brent crude, $74 a barrel, up 1.3%. as i said, coming up, steve sedgwick standing by to interrogate opec ministers we'll bring you inside that meeting once the doors are opened

you're watching "street signs. i'm willem marx. the countdown to a decision is on with opec ministers locked in a room in vienna, oil prices rally amid uncertainty on whether saudi arabia can bring iran on board and come to an output increase.

the euro rallies against the dollar after french pmi beat expectations in june but german manufacturing cools on trade fears. angela merkel's hope to secure an eu-wide solution on migration dimmed as cold water is poured on the chancellor's plans ahead of a summit in brussels. a historic deal is made in luxembourg as a debt relief agreement is reached for greece sending yields lower still a couple hours until trading begins on the other side of the atlantic. but let's look at u.s. futures after a mixed week of trading. all three indices are called up this morning with the dow jones implied open more than 108 points s&p 500 and nasdaq both seeing to open up more than 10 points

and 18 points respectively if you look at the major bourses here, you can see all four of them well into positive territory. the ftse 100, 0.40% up cac 40 is up more than a half perce percent. in italy, after a difficult day yesterday, the ftse mib is up almost 1% at this stage. let's mention currencies the euro has had a tiny bit of a bounce since those eurozone pmi numbers came out a half hour ago, but not a significant one currently 0.25 stronger against the u.s. collar. cable trading stronger against the dollar the pound is up a third of a percent. the dollar is stronger against the yen as well. in terms of opec, the story this morning, ministers are meeting to discuss potential increased production russia and saudi arabia are spearheading efforts to raise

output levels. iran has provided stiff resistance an opec delegate told reuters not all members are likely to support boosting production. crude is trading higher amid this uncertainty steve sedgwick is readying himself to speak to some of the world's most powerful oil ministers. look at him there at the front of the line. we'll cross live to steve when those doors are opened the iranian oil minister met with the saudi oil minister this morning ahead of that opec announcement that's an important conversation that we will try to bring you. we'll tell you what was decided between those two men when we can. in china, the president denounced protectionism and populism amid the looming trade war with the united states president xi talked about the perceived benefits of the belt and road initiative and saying

china's door to the outside world will not close, it will only open wider. foxconn has says the biggest challenge it faces as a company is a trade war between washington and beijing the chairman said the spat is a tech war, and the company had to adapt to those tensions. eu tariffs on 2.8 billion euros worth of goods take effect today. they are a retaliation against u.s. tariffs slapped on steel and aluminum imports the broad list of items impacted by those eu tariffs include everything from motor bikes, jeans, orange juice, bourbon, whiskey. that might ruin my weekend if it gets more expensive. the international monetary fund will likely revise down its eurozone growth forecast when it releases its latest report next month. that's according to christine lagarde. she says concerns stemming from the risks of a global trade war,

uncertain brexit talks and negative market reaction to italian public spending policies led to that revision speaking to cnbc, she said trade tensions in particular have become the biggest risk to euro area growth. >> what worries us is not so much the direct macro impact of the tariff increases because that is in the range of 0.1%, 0.1% there it is not a worrying issue but it is a trend that is worrying, and it's the breach of confidence that undermines relationships which is worrying as well. my particular concern also addresses the poor countries that have had the benefit of improved growth over the last couple of years.

prices are picking up again. where it's fundamentally important for them even in countries, whether advanced or otherwise, it is always the poor people that suffer most as a result of those barriers or trade tariffs. >> christine lagarde there talking to cnbc in luxembourg. we're joined by the chief financial officer at luxoft. cnbc speaks to a bunch of cfos ever so often and we asked them about their concerns for business, for their businesses far and away the most widely cited concern that people talked about was u.s.trade policy is that a big problem for you guys and why >> it is not a big problem for us directly. though i was surprised to see the results as well. if you look at previous quarters, cyberattacks were the

main concern now we're looking at the problem of trade policy which is on everybody's minds. when we have two large exporters battling over trade, everyone is concerned. if you look at the results again, none of them, virtually nobody said they would benefit from that. everybody is either being neutral like us or they will yot your clients may not be. are you finding clients expressing concern about this? >> we saw some news that some clients are concerned with what happens with trade, especially the ones with production in the u.s. but overall i think the ones that should be most concerned are the ones closer to the commodities. where we deal is more in the -- if i may say so, high-end technology so there should be less impact there. >> what would be the direct impact on your business if at all in you say you're concerned about them, everyone is

concerned about them would there be an impact in terms of contracts and your ability to move people >> not really. our concerns come from concerns for our client overall economic stability we're thinking more or less like investors. the more clarity, the more stability, the better for everyone there's uncertainty with u.s. trade policy, we are concerned >> you have operations on five different continents, 20 countries, but europe is a big part of that business. i wonder, we had another slight market shock in italy. you had these two italian politicians, both publicly skeptical of the eurozone being appointed to these key positions inside the italian parliament, we saw italian bond yields shoot up in terms of risk concerns we saw the italian stock market fall again one question asked in this survey of cfos was do you believe italy will vote to leave the eurozone how worried are you about it a lot of people said, yes, they thought that was a possibility does that concern your business?

>> it doesn't concern our business directly. what we are concerned about is overall economic stability in the eurozone if the markets start to get disturbed, you will get pressure on the clients across the board. we do have financial services clients, so that may be start concerning them. >> if you look at the impact this could have on europe beyond italy, is that something everyone should be concerned about? >> i would say so. i think that stability of eurozone is on everybody's mind. >> final question, not a single cfo that cnbc surveyed said they had seen a single positive impact for their business so far from brexit. have you seen negatives so far is it all about uncertainty? is that the real problem here? >> i would say so. mostly about uncertainty there's minor positives that we

see because of work in brexit, it basically is change, is ths t clients make that we support mostly uncertainty we think the more uncertainty the worse for everyone as soon as it becomes clearer, it's easy to deal with this is something we would be willing to embrace and deal with going forward. >> thank you very much for joining us >> thank you >> the chief financial officer of luxoft. as you can gather, there's a delay in terms of access to that opec meeting in vienna it's been delayed by 30 minutes. so we are not getting a huge amount of information on opec yet. russia and saudi arabia have been spearheading efforts to increase output. iran has so far been opposed to that an opec delegate this morning told reuters that all members are not likely to support boosting production.

as i'm saying this, steve sedgwick he's readying himself, standing by to speak to some of the world's most powerful oil ministers in vienna. we'll go live to steve when those doors are opened to broadcasters beth evans is still here thank you so much for staying around to talk about some of these issues again, this opposition between saudi arabia and iran. we heard from steve all week this is a lot to do with politics, not so much markets. do you agree with that >> i do. the opec ministers could all get together and divvy up the quotas just fine, but you do have the political sparring that is going on the trump tweets, iran's oil minister coming out with his own zingers this week. so, there's politics of oil that always seems to get in the way

of the creation of these quotas and the management of the markets. >> from what you're saying it's like they're not necessarily acting under economically rational rules is that fair as well am i going a bit too far there >> i think the saudis and opec would like you to think they are, but when you cut down below the facts and figures, there is almost an emotional response coming from some of these ministers. i'm sure the iranians would love it if opec came out and said we're united against the sanctions against our fellow opec member iran to the u.s. that's not going to happen the saudis are an ally of the u.s. so there's a lot of moving parts. you were talking about tariffs one of the other things people are looking at is the u.s. tariffs against china. if you look at that and go down

below some tweets and noise around it, it seems to me that china is going to switch away from buying the u.s. barrels and they'll move over to west african and other sweet barrels. that leads to a change in trade flows, that affects the market you could boost the price of brent. that's a benchmark price for a lot of crude oil that's another thing pushing the price higher >> let's talk about that spread then between wti and brent right now it's at $7 or so a couple days ago it was $10 what is driving that distinction and how important is it? >> the distinction is between the types of crude grades. between wti and brent, one is seen as more of almost a land locked crude, though it's opening up these days. the other one is a backbone of so much of the world's crude

production that is seen as the arm that drives whether or not trade flows go one way across the atlantic or the other way. the market is all about those trade flows. >> as a consumer, china is the real big player here what they decide to do, and you talk about that trade spat, trade war, that then will be driving a massive change in the global oil market by the sounds of things. >> it just depends upon again how overheated the market gets how cohesive the opec members can work together. how much they can work together to manage the market and production out there for the consumers. absolutely china is seen as a big powerhouse that's a big demand center >> we touched on this briefly already. i want to talk more about iran and why they're looking to struggle, why they're already struggling

in terms of output, they're hitting a ceiling now, are they? is that the problem for them in terms of why they don't want to see increased output across opec because they'll lose their share of that total production are they maxed out >> it's not necessarily about them being able to or not being able to go higher, it's the sanctions will change the ability to get the crude to the customers they want to get it to >> so producing oil that they can't sell then. >> that's right. if you have blocks to that trade, that changes the economics for everything you're doing. it changes the fiscal break even of your budgets. it changes everything. >> stay with us. we'll watch this closely beth evans there if you have views on opec, get in touch on twitte twitter, @streetsignscnbc. coming up on the program, a mess

for mr. mess i. why he's on the brink at the world cup after this break

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welcome back to "street signs. if you were hoping to watch the opec meeting live from vienna, i'm sorry to disappoint you. it's slightly delayed. that apparently is because the iranians and saudis kept talking throughout the morning trying to come to an agreement stay tuned we'll bring you that as soon as we are able to get into that meeting room argentina's hopes of progressing to the last 16 of the world cup are hanging by a thread after they crashed to a 3-0 defeat to croatia. it was a lackluster performance beginning with a goal keeping howler, and then capped off by two goals from luka modric and rackic >> argentina staring down the barrel of a first group stage exit from the world cup since

2002 it did not go well for messi and his colleagues a caballero clanger helped croatia gang the lead. that chipped clearance from caballero. luka modric hits one with ten minutes to go. a third was complete then. the teammate of messi at barcelona added a third. argentina really struggling to make the knockout stages iceland and nigeria also playing in that group later on today >> the math is complicated in terms of mro greprogression. >> if argentina -- basically argentina will be cheering on nigeria. iceland could have a cozy draw >> the idea of a series of mostly amateur players from iceland would progress and some of the highest paid superstars in the world would not is a bit

of a shock >> absolutely. iceland the smallest nation to qualify for a world cup. they're punching above their weight as they did in euro 2016. >> my wife is per roouvian and happy this morning why is that? >> well, i don't know, but at the same time it might be because they're out of the world cup. the peruvians, 26 years since they appeared in the world cup they traveled in the tens of thousands to russia in hopes and expectati expectation. but again it was another defeat. kylian mbappe creating history there, becoming the youngest ever goalscorer for france in a world cup. two wins from two. they are into the knockout stages if argentina do make it through, it looks likely they might have another tough game against france in the last 16

but peru are out of the world cup, two defeats they're playing for pride in the third game but amazing fans they've been in the world cup. >> what's on the plan for today? >> we're staying in south america. brazil and central america, they're up against costa rica. brazil drawing their opening game against switzerland we can see the state of play here serbia lead that group brazil need to get their campaign on track. and they can do that with a win against costa rica the good news for brazil is any fan wondering on the fitness of neymar after seeing him limp out of training earlier this week, he is fit again. he's been out for much of the season with a broken metatarsal in his foot, but he is fit to play he should take his place in the starting lineup. brazil, well, the five-time winners, they can get their campaign really on track, they

need to do it today against costa rica >> we'll watch that closely. adam, thank you very much for the update referred to as the sport of kings, horse racing has been a part of british society for more than 400 years cnbc attempts to shine a light on a sport fueled by money and for many shrouded in mystery head to cnbc.com for our special investigation on that story. and the largest u.s. banks cleared the first stage of the federal reserve's annual stress test the test revealed that big lenders hold enough capital to withstand a recession marking the fourth straight year that all banks met those fed requirements the central bank will unveil 9 results from the second phase of the test next week my colleague, wilfred frost, has more >> the fed has said that the largest bank holding companies are strongly capitalized

the vice chair for supervision added that capital levels are higher than the actual capital levels of large banks in the years leading up to the financial crisis on average of the 35 banks tested, the cet 1 ratio falls from 12.3% to 7.9% in the adverse scenario that's despite the test getting harder this year from last year. the scenario assumes gdp falls 7.5%, unemployment rises to 10%, equities fall 65%, housing down 30%, commercial real estate down 40%. here are some of the individual results. all of the big six looking comfortable. goldman sachs the lowest, in part why they suspended their buyback this quarter the supplementary leverage ratio sees all the banks above their respective minimums. morgan stanley and goldman sachs fairly low relative to the other big six, but still above the level needed for next week's tests. next week, we will get an

outright pass or fail and learn of the capital return plans of each of the banks. wilfred frost, cnbc business news. deutsche bank passed the stress test as well. the german lender whose u.s. business has been under regulatory scrutiny met all of those minimum capital requirements separately they have been downgraded to negative from stable the ratings agency fitch cited substantial execution risks around that complex restructuring plan. airbus warned that a no-deal brexit would threaten the company's presence in the united kingdom. they manufacturer wings in the uk, but they warned that a cliff edge exit from the eu would cause "severe disruption and interruption to those operations." airbus also criticized the uk government's plan brexit transition period as being too short. the company said it would stop the firm from growing its supply base inside the uk the uk treasury is not the enemy of brexit but it wants to see

existing business and trade ties preserved after brexit that was the message from philip hammond talking to london's financial services industry in his mansion house speech last night. hammond reiterated his support for a financial services deal between the uk and the eu. that is seriously on the back burner in terms of government priorities the governor of the bank of england described such an agreement as feasible and in the interest of the uk, europe and the world. the uk chancellor stressed the importance of relationships. >> we need to forge a new relationship with our european neighbors that protects those patents of trade, those business relationships that have been painstakingly built over decades and maintains low friction borders and open markets that does not make the treasury on my watch the enemy of brexit.

rather it makes it the champion of prosperity for the british people outside the eu but working and trading closely with it >> the british chancellor phillphilip hammond defending his role in brexit we will take a quick break let's take a look at oil prices ahead of this opec announcement. brent and wti trading up today brent is at 74.06. the u.s. futures looking to open higher ahead of the opening. the dow jones up 120 coming up, steve sedgwick is standing by to interrogate opec ministers in vienna. we'll bring you inside that meeting once the doors are opened

eem seema mody it's 5:00 a.m. here's your five at 5:00 >> oil ministers meeting now behind closed doors in vienna. wall street pointing to a higher open after the dow tries to snap eight straight days of losses big banks clearing a major hurdle as they pass the fed's annual stress test. china calling out the u.s. again today as the threat of a trade war heats up. and a big deal could be brewing in the food space as conagra and pinnacle