welcome to "street signs." >> these are your headlines this friday morning >> european equities lack direction as trade talks continue in washington, but basic resources rise on hopes a deal can be struck when president trump meets chinese vice premier later today >> european chip makers provide a bright spot for investors after asmi avoids trade talk uncertainty to report record fourth quarter orders. shares move higher after full year profits rise as the

education company confirms its 2019 guidance and boosts its final dividend cfo tells cnbc the firm's growth has been positive. >> the reasons that revenues are down are two-fold. the business that we've just sold, plus the ongoing structural pressure that we've seen in the u.s. core wear business we step back from that, actually the rest of the -- has gren e grown very nicely. >> telecom italia plans to cut more costs and grow core profits for next year as it agrees a network deal with vodafone to accelerate its 5g roll-out well, good morning, and welcome it "street signs." i want to bring you some fresh data just out. this is, again, on germany earlier this morning we had

confirmation of germany's key numbers. now we have the ifo business climate index. it has come in for february at 98.5 that compares to a forecast of 99.8 that is below expectations the current conditions index came in at 103.4 in february versus forecasts of 103.9. again, slightly lower than expectations there in terms of the expectations index, which is the forward-looking part of this metric, that came in at 934.8 in february versus forecasts of 94.2 january business climate index was also revised to 99.3 the expectations component revised to 94.3. now, we are jou joined by phone by timo, director of the efo center for macroeconomics and surveys. good morning, sir.

>> good morning. >> now, this is another set of weak data points for the german economy. just this morning we had confirmation that the german economy was flat in q4 early on in the year we heard that a lot of this was down to one-off factors where, it seems as though a lot of the weakness is due to longer standing issues >> yeah, that's right. this was a very disappointing mess thaj we got this morning. it's the sixth consecutive decline of the business climate index since september. expectations have been falling much stronger in recent months than the assessment of the current business situation it's a very persistent dough cline that we have now, and it's also very -- it's not only manufacturing that has fallen. this was more or less the situation in the last couple of months, but since the beginning of this year we also have a fall in the business outlook in the service and in the construction sector

it's a very broad decline, and i think that -- i mean, you know, in the end of last year, many thought that the weakness of the german economy is only temporary. there was stagnation in the fourth quarter, and we hadn't in a decline in the third quarter of 2018, and many thought there would be a strong rebound in the first quarter. i think the results there we got today, they indicate that this weakness will continue >> now, early on we also saw that the domestic economy, the domestic part of germany was holding up much better, and yesterday in the pmi report, that was the only real bright spot there as well the sustained job creation in factories was really the only positive take-away from that report in terms of what you are seeing in today's numbers, issing that domestic strength holding up, and if it is, how can it last in the face of the external factors becoming more negative >> yes i mean, the domestic economy was

quite strong in the last year. that's true, but, i mean, what we see is more or less a textbook slowdown in the german economy. everything started, let's say, in the external environment. if you look at our figures, you see that the confidence in the manufacturing industry is already falling since the beginning of last year it is the cooling down of the world economy that has hit the german economy, and i would say that also this year then -- it always takes a little time until this negative impact from the rest of the world is then, you know, working through to the economy, and what we see with the recent numbers of the business climate is that it seems that we are getting also the slowdown in the domestic economy. the domestic economy, i would say, it cannot shield, you know -- it cannot protect itself

for what is happening around the world. >> you mentioned what is happening around the world you are talking about trade in that context i want to ask you about the trade surplus, the larnlest ever on record. it was around 1 00 billion euros. when you are looking at the goods trade between the u.s. and europe, this is clearly a bone of contention for president trump. when you are looking at the fact that we now have less than three months until he has to act on recommendation from his commerce department following that section 232 investigation into the so-called national security threat from the auto sector in europe in particular, what do you think that will mean for german exporters in particular the cash sector, and what will is that mean for the broader economy? >> i mean, i think this is one of the stories behind the decline or the slowdown of the german economy this is not only hitting germany, but this is hitting all countries which depend on export germany is one of these countries. when you look, for example, at world straid trade in the last

year, it's more or less been stagnating, and this is true also for german exports. exports have not grown over the last year. the level of exports in zeks e december last year was more or less the same level one year before this threat has already had its impact on the german economy and definitely the seconder that is most hit by this trade dispute is, of course, the automobile sector >> just a quick follow-up on that just to talk about uncertainty when it comes to brexit and what that means for economies on both sides of the english channel here in the u.k. we've had a number of firms in recent weeks talking about winding down their facilities, moving jobs overseas how significant is that effect with just five weeks to go until a possible hard brexit for the german business sector >> if you are talking bun certainty, this is what we're measuring.

uncertainty has increased over the last six months to levels that we last saw during the both financial and the euro crisis. this is an uncertainty measure that we get from our firm ask. we ask basically the firms about how uncertain they are about their business outlook, and this definitely has to do with the brexit nobody knows what is going on there. nobody knows how the trade relationships will look like after the end of march, and this has an impact on the economy if people do not know what is going on, they wait and see. they do not invest, and this is basically what we measure. >> we'll leave it there. thank you so much. timmo, the deputy director of the ifo center for economic -- a labour mp has resigned from the labour party here in the united kingdom saying that the party is broken and he has just announced

that on twitter in the last few moments. of course, we've had over the course of the last week a number of quite high profile resignations from both the labour and the -- here in the u.k. as the parliament and westminster continues to grapple with theresa may's proposals on brexit >> i want to take you to european markets and take a quick look at how stocks are trading. we've now been open for about one hour, ten minutes. it was a sluggish start to trade in the morning now we are seeing some momentum building the stock 600 that's currently up about 12 basis points remember, we are coming off of a negative handover from wall street, but the dow dropped by more than 100 points, and that is as investors invested a string of weak economic data out of the u.s existing home sales, the fed and durable goods orders all disapinted we saw weakness there. after hours we saw extreme weakness in kraft heinz. europe is showing some resilience, and that is in the

face of some more negative data out of germany as well quite interesting to see that this side of the pond we are seeing some strength let's get into the different regions. as i mentioned, germany is a key focus this morning not only do we have the ifo numbers just out that we brought ow the disappointing side, and we had q4 gdp numbers come in in line with the flash estimates. the dax is trading up to the tune of 27, 26 basis points. it is a positive picture overall. pretty evenly spread gains for the european markets let's move over to 4x markets and see how currencies are fairing. we had the ecb minutes couple out from their latest meeting. another dovish set of messaging from that central bank they have acknowledged that risks have moved to the downpour side, so we -- in terms of the euro we are seeing some strength today at that 113.47 mark. over in sterling we are seeing a pullback down 18 basis points versus the dollar, but still hovering

around that 130 mark quite a tight range. willem >> someone that looks at those fx numbers quite frequently, global head of 4x strategy thank you for joining us this morning. let's talk about the euro and the context of these german data points we've seen in recent months we just heard from one of the ifo council guys talking to us there about the fact that manufacturing and services are now seeing a lower number when it comes to their business climate index. what do these slightly more negative numbers coming out of germany mean for the short and medium term future of the euro in terms of its strength against the dollar in particular >> there's a few compoen ebts to this if you look at the euro zone, we've had slowing growth in the euro zone for about a year initially the ifo and lots of others of the german commentators attributed it to other i haddo sin accuratic factors. actually, it was just reflective of it is slowdown in china and this broad global slowdown that we're seeing that's filtered through to the

domestic economy in germany, which i can clearly see the data from here really what it means is that the ecb, we saw the minutes that were quite dovish yesterday, and i fully expect the ecb to engage nay long-term tender operation, and we can forget about any chance of a rate hike this year. >> let's bring on the sterling just on the back of the fact that yet another labour mp resigned he has not set brexit. he has told his local newspaper in the u.k. it's to do with jeremy corbin, his move to the hard left, and the anti-semitism in the party what i want to ask you, though, is as we see continued uncertainty for this fragmentation, what does that mean ahead of march 29th for sterling especially for cable >> i think really the two options on cable at the moment and one is no deal i would put that roughly at 10 measures, 15% probability, and then there's an excontinuation of article 50. i think that's by far the most likely the third outlook would be we get e get an agreement between the europeans and u.k. and

parliament manages to pass this. irrespective of what's happening on the individual party members, one or two people leaving here or there, that broad set about options still remains. i would still think an extension of article 50 is the most likelyout come >> what does that meanfor sterling we're trading around 130 i think that's the reasonably fair we'll get a leaf rally, i would think, but dweer are we're not going to get the huge acceleration on the back of an greelt >> can i pin you down on the levels you are talking about if we do see eventually an appreciation what are the outer bounds of where sterling could go from here >> as high as 140. in the context of some more dollar weakness and indeed broad short move in sterling sterling isjust about one of the most undervalued currencies in g10 , and a breck it deal is a catalyst for appreciation in my view. >> i want to take you back to the ecb, and you mentioned that yesterday's minutes were quite dovish if we are looking at further

long-term liquidity operations come in in the future, why isn't the euro trading even lower? >> it's a combination dollar weakness i think also markets have already priced in the fact that the ecb isn't going to go this year in terms of a rate hike they're probably pricing in a rate hike mid-level next year. we have already priced out any meaningful rate hikes at this stage. consequently that's the price. even if we get another tender operation, that merely reduces the risk of a banking crisis in one of the peripheral countries. at this stage it's not really going to lead to an awful lot. it's been priced in, and i expect your dollar to trade a bit higher >> excellent stay with us plenty more to talk about. remember. telecom italia and vidodafo are launching 5 g mobile services a as part of the deal the two companies will also combine their italian telecom towers into a single entity separately, telecom italia vowed to continue cutting costs and

growing its core plofts knits new three-year strategy plan the italian phone group was caught in a battle between vivendi and investor investor, elliott. >> education come pearson has said it will start growing again from 2020 after reporting slower underlying sales in the fourth quarter. pearson, which is working to boost its digital services, also reported an 8% ridse in operatin profit earlier we spoke with piece e pearson cfo. he said digital education it the future >> we've been really investing in driving key opportunities, so there's the virtual university business, which is where we partner with universities to deliver on-line courses. there's virtual schools. children particularly in the united states are actually going to school virtually. it's professional testing. it's all part of a real move towards certification and life-long learning there's the english business

our test of english is up 35% this year. these are opportunities which really tap into digitization of education, a move in the way that education is moving, and we've been investing this them heavily over the last couple of years. >> asm international posted record order intake beating estimates. the dutch clip maker overcame recent trade frictions between the u.s. and china that have weighed on semiconductors. the company also reported revenue of just over 254 million euros for the period above expectations asm also says it skppz to outperform the market for wafer fabrication equipment this year. >> coming up on the program, there's one week to go now until the extended deadline for the u.s.-china trade talks to find a breakthrough we'll have the latest from both washington and beijing for your heart... your joints...

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>> goods missed expectations in the month of december. that pointed to a further slowdown in business spending. the philadelphia federal reserve business index fell in february to its lowest levels since may 2016 and also missed estimates the february pmi dipped to a 17-month low that's a survey respondent cited a soft patch for quiet demand. our colleague stateside spoke with the fed president james bullard. he says he thinks interest rate hikes are now nearing an end >> the message from my point of view is that the normalization process in the united states is coming to an end, and rates we've already raised rates about 225 basis points from where they were initially on the balance sheet. we've got that decision hopefully coming up in the next couple of meetings i they are we're in a good place

today. >> global head of 4 des moines strategy now, yesterday we had a string of very weak data out of the u.s., and earlier this week we had the fed minutes which left investors, i think, a little unsure about where the next move comes from for the fed >> i would think so, yes what they basically told us in the minutes it's quite interesting the difference of the minutes and what we saw. said in the minutes is balance sheet reduction or tightening would pretty much finish that's a big deal for markets. markets weren't really expecting that too much. in a sense, you know, i think that the fact that the federal -- i think that's increasingly meaning to many he that, you know, what we've seen in the fed rate hikes. consequent consequently, the next move really -- what happens the other day develops, but it doesn't look like it's going to be a hike and a marginal level

leading it a weaker dollar in my view >> the u.s. is recordly urging china to keep the yuan steady. that's part of potentially what the trade deal might entail. a stable yuan is good for the u.s. as well >> it's contradictory, right if you are talking about wiping out the chinese trade to the u.s. trade sur plurks that would basic will he mean that china goes into a current account deficit, and that would necessitate what we -- at the same time they want to be range-bound or to be steady. i think what they're asking for is basically, you know, pretty much impossible in my view i would expect a little bit of yuan weakness. very, very modest. nothing significant. not like a 10% or 15% appreciation >> on u.s., europe and trade, and we had this recommendation i mentioned earlier on the

investigation of european autos. that's that the white house has three months to look at it we've heard from the europeans that they find this laughable, the idea that they cause a national security threat is that something investors should be looking at down the road, not just u.s.-china? >> once trump is done from china, he will look at japan and then europe. it's definitely on the radar now, what it means for the specific equities, i'm not sure. certainly, i would expect that's the next leg of his trade issue for sure >> thanks so much. global head of 4 kps x strategy at bank priba. the australian dollar has dipped for a ten-day low after china banned ah raelian coal imports leading authorities to assure investors about the state of the relationship. the australian ambassador to china has been asked to clarify the situation while prime minister scott morrison urged people not to "leap to

conclusions. ties between australia and its largest coal buyer have been strained since the chinese telecom company huawei was banned from australia's 5g network. >> president trump has appeared to soften his stance on huawei in a series of tweets trump said, "i want 5 g and even 6 g technology in the united states as soon as possible. it's worth poirnting out that 6 g technology does not exist. trump also tweeted i want the u.s. to win through competition, not by blocking out more advanced technologies. while trump did not directly mention huawei, the company has been at the forefront of 5 g development. the u.s. government, though, has banned its technology under fears that beijing could use that technology for espionage. high level talks between the u.s. and china will continue today in washington. just one week to go until the u.s.-imposed deadline triggering higher tariff on beijing president trump will meet with the trade -- in a bid to break

the deadlock eunice has more from beijing that's a high profile individual for mr. trump to be meeting with one-on-one face-to-face. does that to your mind based on your knowledge of how these talks have progressed have a major significance with a week to go? >> if there's anybody that could make a breakthrough, it would be him. he is seen in the west as quite a bit of a reformer and is close to president xi. with that and some of the latest developments in terms of the way he is viewed here, he could potentially be the one to make some changes now, when i mention that, what's interesting here these days is that the state media as well as social media have been playing up the fact that vice premier has been granted a special envoy stat yurks which has been taken to mean that he would be able to make the compromises where he

sees fit now, exactly what those compromises are going to be is a big question as far as we understand, the two sides are still very much at odds over what needs to happen in terms of structural issues, and also, the enforcement mechanism whereby the u.s. and china would agree to, you know, some type of mechanism that would see the deal enforced is also up in the air what was also interesting today was that the tone in the state media hads become even more optimistic ahead of these talks during these talks in fact, shinwa on its social media account said that the atmosphere of the talks is good, and also pointed out that trade representative robert lightheizer, who is seen in china as a more hawkish person and the chinese feel much more wary about him in terms of negotiators, that he was relaxed and smiling. the whole tone of it seems to suggest that beijing is feeling a bit more confident about the

way these conversations are going, and it's all part of a greater effort that we're seeing here by beijing to try to reassure its citizens that the trade war could very well soon be over. >> thanks so much for joining us there. trying to define the details of what the language coming out of both sides really, really means. appreciate thetime there well, coming up, we'll bring you an exclusive interview with the spanish trade minister reyes maroto that's ahead of the elections on april 28th

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>> european equities sit higher as trade talks continuein washington while german business falls in february amid fears the down turn in europe's largest economy. european chip makers provide a bright spot for investors after asmi avoids trade talk uncertainty for report record fourth quarter orders. >> pearson shares moved higher after four-year profs rise as the education company reaffirms

the 20 is the guidance and boosts its final dividend. corrine williams tells cnbc the firm's growth has been positive. >> you step back from that and it's grown very nicely >> telecom italia vows to cut more costs and grow more profits from next year as it agrees a network deal with vodafone to accelerate its 5 g roll-out. european markets are trading higher after a sluggish start. as you can see beside me, all the major regions are posting

gains. we had the cac 40 leading the way up 27 bates points it is fairly evenly spread in terms of those gains that's quite interesting given the hand-over from wall street was on the weaker side we saw the dow lose more than 100 points that was after a string of weak economic data state-side existing home sales, the philly fed, and durable goods all disappointed in terms of the economic picture in the u.s. europe also got data this morning. investors are on the weak side yesterday's weak day on the manufacturing pmi front out of germany. so far it looks like investors are shrugging off the negative signals. let's take a look at the sect ors. it's also a big day for corporate earnings not as big as yesterday, but more for investors to digest on a single stock basis at the top of the leaderboard it got basic resources, very trade sensitive. china sec e sensitive sector

at the bottom food and bev perhaps some of the weakness that we saw in kraft heinz in after hours trade yesterday filtering through to the european food and bev sector they missed on top and bottom line, and they were facing an sec subpoena over accounting policies some coming through to a yurp even base as well. let's get a look at u.s. futures and see how things are shaping up after yesterday it's a down day. it looks like we were in for a rebound this morning the s&p, the dow, and the narks all looking to open higher keep an eye on fed speakers for any signals around what the central bank is looking to do next willem >> thank you so much, juliana. >> the demand and the political reaction to that continued demand will be front and center during the election campaign we had a chance yesterday to speak to the president of the parliament, roger torrent, and

asked him what the separatists would say to businesses that might be concerned about future political instability. >> we do not ever want to be a cause ofinstability, political social, or economic. quite the opposite, actually we want to be a constructive part of europe we want to be a factor in its political growth obviously, supporter of rights and freedoms also, a cohe'sive force in europe that's why we are appealing to europe when we ask for dialogue, we demanded it be government to government, bilateral, and also multi-lateral with the e.u. presence because of this i insist that we will in no way be a cause of instability in europe. on the contrary. we believe that we'll be a motion for growth in europe. catalonia is just one more for sure it is not the most relevant one, because it's not the most important, but if you look at it from a size perspective, but it's also true that the way that europe looks at catalonia and the way that

they help to solve this problem will also be a factor. i insist in the growth of europe's democratic values, but also its economic stability. >> what do you say, though, to the people in other parts of spain who are waiting for structural reforms, waiting for new homes, waiting for greater social spending, and they're not able to get it over the last eight months because there could be a new budget, and their concern is that there will be continued political deadlock in spain because of catalonia >> translator: what we say is that obviously the national state budget is very important of course, the budget is very important for the state of spain as well as for catalonia, because in the end it's the biggest factor when it comes to a government stability the biggest factor in terms of a government's power also, the biggest tool to create social policies while in government

precisely we want tools to help make social policies we have created a lot of social policies recently in the catalan parliament, but the constitutional court of spain has erased them. laws such as those focused on house, energy, poverty, and many other social laws that were helping the most vulnerable citizens in catalonia. that's why we are pro-independence we're not nationalists we are conscious that national flags are no help if you need to eat. it's not a symbolic question not a territorial issue. it's a question of social policies that provide tools to help citizens. that's why i insist that we are republicans and we are pro-independence in the sense of what we are saying today for all spanish citizens together is that we are right now defending the fulkts

rights and freedoms. the right to freedom of speech, the right to hold meetings, the right to build a better future for our citizens, or our children and what we are seeing is and what we are watching the cultures that our leaders are being judged is that we are demanding a democratic solution that respects those rights and freedomed. we defend freedom of speech among those who are pro-independents, but tomorrow it may be other spanish citizens for the simple fact of being an ecologist krks a feminist, or a union campaigner what we're doing is defending democracy. that must be done with all the tool tools that we have in the sense obviously the budgets are important, but what's even more important are fundamental rights and freedoms. >> they had provided the socialist party with a gorning majority for the past eight months we spoke to a member of the sanchez cabinet and asked her

about santos's -- with the c catalan. he has begun to sound a little less accommodating since the election campaign kicked off here's her response. >> translator: yes, for us catalonia is part of our national project this is what we are working hard on, and through this we have reinstated dialogue on a official and political level what we want is for normality to return to the catalans so they can feel catalan and spanish with their own identity that this government respects this government respects the identity of all our regions, and, therefore, in the shared project of ours where catalonia can continue to be part of an integrated spain with its rich culture and language which, of course, we respect through their own government which was voted in of course, we don't share the vision of independence the project where some want to separate others. instead, we want to focus on healing. healing this society which is divided and hurt by some of those who want to leave. this is why we propose our shared project

one where we recognize that through dialogue and dialogue at a political level we can come to an agreement to remain part of spain and also heal the divide in society that is obviously very negative for both spain, catalonia. >> your government's critics have -- they say that the way that the socialist-led government has approached the political dialogues with the catalans has not been the correct approach, and i'm wondering now that sanchez is willing to say the separatist party is the reason my spending plans aren't going through, will there be a different approach if the social is, again, take power of this election will there be a different approach to that dialogue with the catalans >> translator: we have done all of our dialogue within the spanish constitution we have done everything by the tools that theconstitution enables us to do our dialogue is respected th law and the constitution, but we don't understand what other ways

are there aside from dialogue for cordalty within catalan society. we've seen that breaking away in the triggering of article 155 and hasn't solved the krietsz. for us the only way to go forward is by dialogue dialogue, which is according to the laws and our constitution. >> let me bring you the latest on brexit here in the u.k. british labour mp ian austin has announced that he has quit the party. austin says he has no plans to join the break-away independent group. he told a local paper in his constituency that the party was "broken" and had been taken over by the hard left he is the ninth mp to love labour while the conservatives have seen three lawmakers quit so far meanwhile, british opposition labour leader jeremy corbin has warned the danger of a no deal brexit is "very serious. speaking in brussels after a meeting with european officials, corbin also urged u.k. prime minister theresa may to maintain close ties with the e.u. after

brexit the comments come as may and yourp even lawmakers work to forge a divorce agreement before britain leaves the bloc on march 29th and at a news conference european commission president jean claude juncker said failure to secure a deal would be economically devastating as he gave a bleak outlook for the negotiations >> in the parliament every time they are voted a majority against, there's another majority in favor of something and if no deal -- if there's no deal that would happen, i can't exclude this, this will have terrible economic consequences on the continent my efforts will end in a way that the worst can be avoided. i'm not very optimistic when it comes to this. >> you feel like sharing the

views on jean paul juncker or even on the spanish elections get in touch with us on twitter at street signs cnbc tweet us directly as well. coming up on this program, we'll be looking ahead to english football's first final of the season with manchester city aiming to win its first of four trophies in just a three-month span and also, we will look at the question, can netflix claim hollywood's biggest prize? we'll ask the oscars chances of "roma" next. ♪ wake up sweetie. ♪ doctor dave. ♪ here's your order. applebee's to go. now that's eatin' good in the neighborhood. with tough food, your dentures may slip and fall. fixodent ultra-max hold

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shares fell after hours after a u.s. magazine consumer report withdrew its recommendation for tesla's model three.

zbhienchts forld says it has hired outside experts to look at its vehicle fuel economy and emissions testing. it has been investigating kblee concerns about the process used to translate test results guy the date aa submitted regulators the launch of apple could have revenue to its service business by 2023. that's according to loot ventures it could triple what it gains froo apple pay users it suggests apple would need to sign up a quarter of its u.s. iphone users for the 15,000 dollars a year spent to reach that $1.4 billion mark.

>> the company's set ipo this year, including riders lyft and uber >> the 91st academy of t awards get underway on sunday in a major departure from tradition, the show will have no host after actor kevin hart dropped out in december following public outcry over homophobic tweets critics will be watching the performance of fan favorites "black panther" and "a star is born" as well as the netflix-produced "ronald reagan oma" which has ten nominations, including best picture

zblanchts gaylord, we talk a lot about referendum on this show. usually they're of the political sort one of your colleagues has written a piece entitled "how the oscar race became a referendum on snet fliks." explain. >> well, netflix is a big political issue in hollywood these days there's some people that would love netflix for shelling out of loofl money and allowing filmmakers to make movies that maybe big studios wouldn't make anymore, like "roma. others criticize saying part of the movie-going experience is having people in dark movie theaters and enjoying the real sound, real images that's the big dough bait. woel see, you know, how the academy comes up on that >> roma needs to play in the theaters in the u.s. to qualify for a nomination in the oscars >> indeed. >> there are those that have said this is a ridiculous system in the era of streaming, and this is being pushed by not movie goers so much as movie theater owners can this change? can the academy change the way

that it decides what can be considered and what can't? >> when the rules were changed a few years ago, there was some dough bait back then i think we'll see in the coming years bafta, the oscar academy, everybody, reviewing those rules every single year and there might be tweaking coming up in the coming years >> one of the other things about it was essentially netflix has not released any sense of how much money this film has made, and that's always something that from a business perspective is really interesting to see. the investment and the return on that investment for some of the bigger films especially when it comes to the awards we had the academy just last year propose and then drop this idea of best blockbuster essentially. like a favorite family fan movie. i just wonder when you look at the fact that roma is not having to report its earnings, does that change the way that the academy looks at these pictures? >> it will be the first time that the movie that was -- as hollywood calls it, not reporting box office, would win a best picture if it gets --

comes away with that award i think whatever happens, there will be a lot of debate about this. >> how much can the oscar themselves actually do to boost theater going. >> well, this year there are a lot of nominated films that were commercially quite successful. black panther a lot of my friends saw and a lot of them were surprised e-mail and saying, hey, can't believe this is no, ma'am made. i loved this film. i think you've seen the academy by expanding the number of nominees boosting a little bit of the broader interest, but i think it depends it varies from year to year we'll see how this year, and we'll see how much audience on tv considers

>>. >> kamg back to netflix, the film roma is up for best picture. if it wins, it will be making history in more ways than one. how will it be the first nor netflix in winning >> the first for netflix it will be the first one movie that has never reported any box office, and it will be the first foreign language film, which is interesting with the academy nowadays it's more for the people who are outside the u.s. than ever before we'll see how that plays into things >> i whrm a few journal ists that's now five years ago or so. now we're looking at a movie that's been start to finish funded and produced by netflix is their model changing when it comes to acquisitions versus production clearly, there are a distribution platform, but is that a massive change? >> they're definitely trying to build relationships, long-term relationships with creatives

the most creative filmmakers and others you can see maybe in the future getting other filmmakers into that fold as well. >> now, what are the categories we should be watching out for? where are the most heated races going to take place this year? >> well, a lot of my friends in hollywood are interested to see who wins the best director award. one of the front runners there, and there's spike lee that's in the competitive category getting a lot of support i think that will be one of the exciting things. >> glen close. >> glen close, she's nominated for the seventh time and hasn't won ever in supporting a best actors category. that's going to be a big one to to watch i predict she's going to walk away with this one >> excellent thank you so much for joining us for that preview international business editor at the hollywood reporter ♪

well, we are joined now by adam reed, our sports reporter where premier league football team chelsea has been banned from registering new players for a year after being sanctioned by the sports governing body fifa this is big news can you explain to us what's going on there >> this is breaking news, willem this has just happened there's been moments of unrest at chelsea and around how they use their loan system and their youth system they've had so many young players out on loan. one of their current squads callum hudson has been the subject of a transfer club as well now they won't be able to sign players. that will be this summer, the summer transfer window and the january transfer window next year, and that's because they are in breach of the regulations act of fifa's rules surrounding the registration of minors they said that they have 29 minor players and several other infringements relating to registration requirements for

players. chelsea have long since been big aed slow cats of using the loan system and selling on young talent to feeder clubs as a leverage, as a business revenue stream now they've fallen afoul of fifa's rules on this, and for the next year at least they're not going to be able to sign any players. they've also been fined as well. $600,000 they've got a 90-day window to normalize the situation of the players' concern minority players under the age of 18. they have a big game on sunday against man city this is not going to be something that's going to -- >> don't forget, as well, the problems that roman has been having around his visa issues as well whether or not they can resolve that there was new stadium issues

that have been shelved as well these sanctions do not limit sales in the club as well. that could be important as well. much coming from himself on occasions. linking himself with real madrid they could get a lot of money in for him, and they don't want to sell their best player 150 million odd dollars rumored to be for him, but if they can't spend any of that -- >> can't spend it on the transfer window. >> exactly they can't even invest that in the new stadium as well. this cup final on sunday's take on another twist as well that depends ow they react in the hierarchy, but they will appeal no doubt about that. they can be -- fifa has said they will -- >> there's always a debate about the league cup why does it matter you get a piece of silverware. is there a financial incentive to win really? >> not really, no. you get a share of the game. probably the best thing that can happen, and you get to put the shiny thing in the cabinet, which manchester city have been good at in recent years.

three times in recent years in five years they've been winners of this. chelsea look winning as well jose mourinho always liked this one. he always liked to get it in the cabinet early because it relieves a lot of pressure, but look at the way that manchester city have come out against chelsea in recent weeks. 6-0 a couple of weeks ago. again, not great for chelsea >> adam, thank you so much for that breaking news now, before we hand it over to our u.s. colleagues, let's take a quick look at u.s. futures and see how things are shaping up. looks like we are in for a rebound on wall street that is it for teased show i'm juliana at that timelebaum >> i'm willem marks. worldwide exchange coming up pretty soon. unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer.

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it is 5:00 a.m. at cnbc global headquarters, and here's your five 5k9. trade front and center as high level talks between the u.s. and china wrap up in washington d.c. we'll take you there live straight ahead rally or retreat stocks in a holding pattern as investors await the outcome of those tense trade negotiations kraft heinz plunges after the company slashes its dividend and says it's been subpoenaed by the s.e.c. pinterest reportedly filing plans to go public we'll tell you what the jaw-dropping valuation is and what i