sfloos stocks lack direction, and gains made in the u.s. and asia fade following strong economic data stateside. >> dutch restaler comes under pressure as amazon announces it will cut prices on hundreds of products at whole foods starting today. >> good morning everybody. a bit more of a lackluster session is shaping up in europe. i'll get to this in a second after quite a strong start for the quarter for global stocks yesterday. remember, we did have that strong china manufacturing trend over the weekend that helped

propel gains in europe and in u.s. equity markets as well. just very quickly on u.s. equities, we had all of the three majors end up north of 1% yesterday. we had better manufacturing data also construction spending increased overcompensating a little bit for some of the weakness in retail sales very strong start to the quarter yesterday. overnight in asian equities, we are seeing somewhat of a muted activity nikkei around flattish the other indexes in the green as well. again, the theme is one of risk on you can see that the stock europe 600 is trading just above the flat line this morning slightly in the green after posting a firm session up more than 1.2% yesterday, but let's get into some of the individual forces and break it down for you. i want to start off, as ever, talking about the ftse 100 this is the picture for the ftse you would think with everything that's going on with the political back drop, that the index would be a little bit weaker in fact, what is happening, the typical correlation, weaker sterling pound is actually playing to the ftse 100's

advantage here the index is very close to the october highs. up about .5 percentage points today. 7350 is the number we're seeing a lift for the mining stocks. again, boosted by the stronger manufacturing data out of china. the dax relative underperformance today, trading around flattish. not really doing much. cac up .1% very quickly i want to draw your attention to the italian index just shy of 21,500 overnight some alarm bells again coming out from the oecd warning we could see more fiscal slippage keep an eye on that story. as the growth numbers in italy deteriorate, it will come up as well switching to sectors at the bottom we've got telecoms down about .3% construction material down about .2%. autos yesterday were right at the top of the pack. up more than 2%. over the last seven days autos have had a great ride, and so we're seeing a little bit of

profit-taking. remember, there's also that rolls royce story that we were just talking about with singapore airlines suspending the flight of two boeing jets because of rolls royce parts that's having somewhat of an impact on that basket. up at the top weave got the defensives up .4%. food and beverage also up .3%. away from equity markets, sterling continues to trade lower against the dollar after parliament failed to endorse several alternative plans to theresa may's brexit deal. the brexit prime minister is about to chair a cabinet meeting to discuss a way forward meanwhile, the eu's chief brexit negotiator michelle barnier says no deal becomes the most lightly scenario by the day. he insisted in brussels that the deal may's government has negotiated with the e.u. is right now the only way for the u.k. to exit in an orderly manner barnier also said the e.u. 27 are resigned to a potential no deal brexit. >> no deal was never our design

or intent. no deal was never my design or intended scenario, but the uk7 is now prepared. it becomes day after day more likely >> now, willem joins us from westminster. willem, at this stage, what could prevent no deal from happening? >> well, we could see very unlikely they would revoke article 50 it's very unlikely they could also say, juliana, that what they would like to have is have an extension to this article 50 period for that to happen the europeans have made very clear they would like to see some kind of clarity about what would require that extension. we've wanot got that yet so far. the other alternative is that theresa may's deal is put to a vote once more, and wins a majority for that to happen, given that

it lost by 58 votes last time, you could only assume she would have to make some kind of assurance about a softer brexit in terms of the future relationship between the u.k. and the e.u. here is how her brexit minister steven barkley put it after the failure last night of all four proposals to win a majority. >> to secure -- the government will have to put forward a credible proposition to the e.u. as to what we will do with that extra time this house has continuously rejected leaving without a deal just as it has rejected not leaving at all therefore, the early option is to find a way through, which allows the u.k. to leave with a deal the government continues to believe that the best course of action is to do so as soon as possible if the house were to agree to a deal this weerks it may still be possible to avoid holding european parliamentary elections. >> now, remember, the prime

minister has three times tried to get her divorce settlement, that part of brexit package passed by the house of commons and three times it's failed. partliament has had five days an two attempts to find a way forward with majority. one reason we didn't see majorities for any of the proposals last night was some of the ab sengss from some of the smaller parties, and the fact that very few conservative mps voted for any compromise proposals. take a listen to what the leader of the labour party, the opposition leader jeremy corbin, said about parliament once again taking control of the agenda on wednesday and perhaps holding more votes >> ifit's good enough for the prime minister to have three chances at her deal, then i suggest that possibly the house should have a chance to consider again the options that we had before us today in a debate on wednesday so that the house can succeed where the prime minister

has failed in presenting a credible economic relationship with europe for the future that prevents us crashing out with no deal >> the prime minister will be meeting with her political colleagues, fellow conservatives, also ministers, over the course of this morning. they've been arriving over the last hour or so inside number 10 downing street, and they'll be looking at what this means from a political angle, what it means for their party in government, and then later on after a lunch break, she'll be chairing a more formal cabinet with members not only of the cabinet, the ministers, but also members of the apolitical civil service talking about the more formal government response and a way forward after last night's unsuccessful votes >> willem, so we have a marathon cabinet session coming up today, but, you know, i've been reading a lot of comments here over the last couple of days, and many analysts out there now have a snap election as their base line scenario can you just talk us through how

we would get there in the absence of labour, say, calling for no confidence votes, which is something the shadow foreign minist minister, emily thornbury, has alluded to over the last couple of days? >> without that no confidence motion being put forward by the opposition parties, it looks very unlikely that the government and the prime minister would seek to try and get hold of a general election because, of course, if you look at the situation right now, let's just say for the sake of argument, that theresa may's deal doesn't pass. let's just say for the sake of argument that none of these at tifds find a majority that parliament can then force upon the government, but they are going to see theresa may travel to brussels next week, next wednesday, to meet with europe own counterparts what possible reason could the british give the europeans for an extension if it's not what's known as a democratic event, something like a general election, something like a referendum, but in order for the government to get a general election called, they need two-thirds of the house of

commons to vote one through, and that's because of the legislation brought forward in 2010 that tried to stop snap elections happening. for that to happen, you would need a lot of conservatives, a lot of labour party members to try and vote for this, and, et both parties looking at general election are not necessarily thinking that's a good thing either for themselves, for the u.k., nor indeed for finding a way through this deadlock. >> no indeed it's certainly not being included in a lot of commentary out there when it comes to brexit next steps. now, speaking of some of the broker reviews out there, at deutsche bank, they've gone bearish on sterling saying the chances of a no deal brexit have now increased. the lender raised its estimates for no deal from 20% to 25% and targeted an exchange rate of 90 pence per euro the base case scenario is that a general election will be needed. another bank that we've been looking at as well, some of their analysis, goldman sachs

has said that brexit has now cost the u.k., listen to this, 600 million pounds a week since the 2016 referendum. gdp declining. now the bank also sees a 15% chance of a no deal brexit, which would cause a 17% decline in the pound a couple of broker views out there and where we could go from here >> let's bring in global head of g10 rate strategy. lawrence, did last night's developments change your base case for what happens now? >> i don't think it changes the base case. i mean, what you just saw in other brokers' ideas of probabilities of a bad outcome are no deal exit again, those probabilities change with us as well i guess i suppose if anything, we think there's a possibility of a no deal brexit maybe a bit higher that percentage, but the truth of it is, if you look at

what's happening in the markets, be it the gilt market, be it sterling, be it stock markets, the markets are clearly, to me, still saying that the most likely outcome is that there is a deal of some kind and that the u.k. does not suffer a disorderly withdrawal from the e.u. i think that remains the market central case it remains our central case. >> in terms of the moves we've seen, as you mentioned, looking at gilt specifically, how do you think the gilt market is going to react if we do get a long extension, but without a freshman date for a different kind of deal >> obviously, the gilt market is extremely rich it looks like the bank of england rather like the fed, should have been gradually raising rates, but the cause of this great uncertainty caused by the whole brexit, they haven't been in a sense, the market is priced for the bank of england staying on hold, but we know it's behind

the curve. i guess the key point is, it's not very behind the curve, right? it's not like the bank of england should have rates 200 or 300 basis points higher. i think on a good outcome, you'll see the market begin to price one or maybe two hikes this year, but as you have really linthinted at, what will happen after an extension is then they'll be concern in the market about the upcoming election or whatever it may be the future fiscal policy of the u.k. will remain uncertain as we go to another election, and that's another reason to expect the bank of england to be more inclined to do less. >> somebody wanted to take a view on brexit i mean, we spent a lot of time talking about the currency it's been around actually remarkably resilient given what's happened in the last couple of months or so fixed income, as you mentioned, is extremely rich. would you say that given the asymmetry that exists in fixed income, if you wanted to express a positive view on the outcome, you're better off paying in

rates or sending gilts than buying the currency? >> i certainly think people have certainly tried that >> right >> and they've tried it in terms of putting on money market steepness to anticipate bank of england rate hikes or selling the long end of the curve altogether selling break even inflation all those make sense, but they have been unrewarding for everybody because what we find is that day by day nothing happens. we get another day of nothing happens. >> the code for nothing happens in rate world because you are speaking my language, and i get excited. it's essentially a nothing happens and global utilities, and you approximate can buy the fixed income and sit in the carry because nothing is happening. do you think, another way to put it, perhaps are people -- there's so much pessimism entrenched into where fixed

income is trading right now that we could see somewhat of a shock and something will happen. >> the carry trade has been, as you say, an expression of the view that not much is going to change we're talking globally now not in the u.k. really and that carry the demand for carry has pushed yields down, you know, in europe, in the u.s., and then on top of that, we had some poor data until the back end of last week really where there was even a fear that we were going to see a very bad economic outcome subsequently, you've got a ticker in the pmas we've seen. pmis in the u.s. pay roles on friday, crucial all these carry trades are vulnerable to be honest, at the moment it's not really an acceleration it's a pulling back from what looks like what looked like it could be a bad outcome last week >> right lawrence, stay with us we're going to get to the bottom

of that very soon, but another thing i want to talk about, the brexit debates took a strange turn when climate protesters stripped semi-naked and some glued their hands to the viewing gallery window to the house of commons. the protesters stood for almost 20 minutes before removed by police as mps tried to focus on the cracks between their brexit positions. i'm glad we're getting to the bottom of this one >> as am i >> i think a bit of a bum note >> well, coming up on the show, turkey's president says he will contest the weekend's local election results after a shock upset. we'll cross live to istanbul after the break.

welcome back to "street signs. i the president's party says it will challenge mayoral election results in turkey's two biggest cities this is the picture for the turbish year right now

we are trading 1.6% weaker on the session after a bit of a round-about session yesterday. initially it was trading 2.5% weaker by the end of the day we had recovered to flat. the recent political events have set off another wave of selling. hadley is an istanbul, and hadley, i was just recounting some of the price action of the turkish lira it's one thing after the next for this currency, but the latest is the political developments >> absolutely. the political developments, i think, are going to be key in the coming weeks to really watch out for considering the fact that just in a few days from now you'll have president erduwan. president trump's government has made it incredibly clear via the pentagon late yesterday that the f-35 -- sales of the f-35 including are the parts and manuals will be suspended until further notice there's been so much pushback, as you know, from the european leaders, nato leaders, the united states as well on this

move by the turks to really get further in bed with the russians of course, this all does affect the growing relationship we've seen between the two countries as a direct result of the situation. not just in syria, but also the energy dynamic as well you have a turk stream pipeline that's being completed that will essentially give the turks access to russia's energy, natural gas supplies in the coming years it's been something that has been crucial for the government here in turkey to accomplish they managed to do that in the last couple of years, and it's something that folks that i've spoken to here on the ground say it was essential in terms of securing turkey's energy futures. you have a lot of different dynamics here with regards to the international situation. when we talk about turkey, we talk about the stability of the lira, we talk about the independence of the central bank, the unemployment rate in this country, a lot of werz on the domestic front, but certainly everything that's happening in the international sphere is weighing on sentiment as well. guys >> hadley, thank you vch for that update from istanbul. switching gears stateside, u.s. manufacturing activity picked up in march with production, new orders, and hiring all rising.

the institute for supply management index rose to 55.3%, rebounding from a two-year low in february and coming in above market expectations. construction spending in the u.s. also beat forecasts, jumping by 1% to a nine-month high let's get back to lawrence and global head of g10 trait strategy from bnp paraba we've seen recently a global bond rally in your view what's been the primary driving force of this? is it recession fears, or is it something else >> well, i think it's a couple of things. i don't think it's recession fears, as such i think part of it is what we were talking about earlier to do with the search for carry and the low volatility environment also, there was that crucial ching when the fed announced it was going to curtail the shrinkage of its balance sheet earlier. coming on the back of the ecb announcing another ltro, what this really says to investors is says you know how we take all this excess liquidity away, we're not going to do that the market is, again, confronted

with we have all this excess liquidity washing around the global financial system. it just needs a home that i think has pulled yields down and flattened the yield curve as well. >> what do you make of all of this the media, i guess, hyped it up as well. the three-month ten-year, the inversion that happened last week things have normalized now and the curve is slightly positive again, but do you think we're reading too much into the tea leaves here? are people really overly interpreting, you know, immoderate inversion of that curve to imply an impending recession? >> there's a lot of tea leaves stuff. it does feel a little superstitious to look at this, right? the truth of it is that historically there's been -- there's been quite a good correlation between a negatively sloped curve and an ensuing recession, but there are lots of thoughts about why that should be nobody thinks the curve causes the recession. that would be kind of weird. what happens is that as

investors see what's going on in the economy, they anticipate movements in the fed, and that can cause the curve to invert. if there was ever a time when the curve would invert and give a wrong significant naugal, it'w final thing to say about it is, even though it feels like it's superstitious, we have had various fed governors say that they would be reluctant to see -- to push rates higher if the curve were flat, and, indeed, it may be that if there are other things marketplace, which shows that it's slowing, nobody wants to go back to zero down. no one wants to go back to deflation. the sooner the better to cut rates. >> you know, ten-year treasuries have come back a long way, and you could argue there are positive signs out there china manufacturing data is beginning to improve yesterday u.s. lumber also a bit of an improvement there as well. yet, how much can global rates

sell off or underperform in an environment where ten-year german bunds are trading negative gdp is entrenched in negative territory as well. isn't there a global pull to zero given where other global fixed income assets are trading? >> i think they certainly can't sell off very much you're right i think it's interesting if you look at how the bund yield got back to zero, it was really, i would say, a market expression of disappointment in what the ecb managed to deliver although they gained more forward guidance, although they announce thd trtro, these were perspective things there's no concrete here's another boost to the european economy. we got a sort of bullish flattening, and that's a bad reason for yields to go down in the u.s. by contrast if it looks like the fed is more likely to cut rates and last week at one point we had 100% chance for a writ cut priced in this year and 100% next year, we've come back a bit from that now. if the fed is going to cut rates to avert the session, then that's not so bullish for long

yields if anything, it should steepen the yield curve. >> all right well, leaveit there then, though it's always up to the fed to see what they have to do all right, lawrence. thank you very much for joining us lawrence, global head of g10 rate strategy. also, we will he get a preview into the world bank spring meeting later today when christine lagarde speaks to her u.s. colleagues. coming up on the show, fee at chrysler responds to sports it's prepared to merge with one of its french rivals we'll discuss whether the nsidioor is ripe f coolatn after the break.

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>> after the u.k. parliament once again rejects a series of alternative brexit professionals. the e.u.'s chief brexit negotiator michelle barnier says no deal is becoming increasingly likely >> no deal was ever our design or intended scenario, but u.k.

is now prepared. it becomes day after day more likely >> european stocks lack direction at the open as gains made in the u.s. and asia fade following strong economic data stateside. engine troubles for rolls royce. shares in the british company decline after a singapore airlines ground two boeing jets citing blade problems. dutch retailer comes under pressure as amazon announces it will cut prices on hundreds of products at whole foods starting tomorrow >> yesterday we had the strong manufacturing phmi they're affected by stockpiling numbers. we had the u.k. construction pmi numbers coming in at 49.7 versus

49.5 in february this is slightly below the reuters poll of 49.8, but it has been officially below 50 now for two consecutive months for the first time since august 2016 construction really not seeing much of a boost there and, remember, yesterday's manufacturing number, though very high indeed, was somewhat -- well, influenced by the fact that there's so much stockpiling activity that is taking place you can see that sterling is trading on the back foot anyway going into this. we were trading weaker we were trading one--third of a percentage point ftse futures, can you see the u.k. index is still trading positive in line with that inverse correlation. the pound trades weaker. the index trades up. the ftse is very close, actually, to its october highs >> much more muted picture than we saw yesterday we see some modest gains being gathered across french, german, and u.k. markets

the ftse mib trading a touch lighter to the tune of four basis points yesterday global markets really boosted by that stronger than expected chinese factory data which showed that manufacturing actually returned to growth in the month of march, and as deutsche bank, jim reed put this morning, china hints at a cycle turn the world parties that wob a good chinese proverb to describe what we saw yesterday. today it looks like investors are pausing for breath after that strong boost yesterday. let's take a look at fx markets. sterling in focus. down right now about 30 basis points not only do we get the uchlts k. construction data, but also, of course, yesterday's defeat in parliament for tall four brexit proposals weighing on the pound there. >> the euro trading a touch high are. about 12 basis points down at about that 112 mark. let's take a look at u.s. futures. yesterday a strong session for all three of those major indexes. again, boosted by the chinese

data also the strong ism out of the u.s. better than expected construction spending numbers. today it looks as though the u.s. is going to follow europe in having a more muted session all three of those major indexes looking at a slightly lower start to trade later this morning. also, want to watch out for durable goods as far as the data is concerned and that curtain razor speech by christine lagarde from the imf corporate news for you, singapore airlines says routine inspections of rolls royce trent 1,000 engines in its boeing 717 fleet found blade -- two broeg e boeing planes have been removed from the service after the discovery. there are concessions being offered to get their joint steel venture across the line. after e.u. expressed anti-trust concerns the e.u. regulator hasn't commented on the details of the concessions, but reuters has reported that tata may sell

parts of its european packaging activities the deadline for the deal has been extended to june 5th. >> carlos ghosn will not get a fair trial if he is tried along side nissan and former colleague greg kelly this is according to ghosn's lawyer speaking in tokyo, his lawyer described nissan as more like a prosecutor than a defendant in the case meanwhile, renault has told prosecutors about payments made to an omani. the french automaker uncovered the payments following an internal investigation the story that really has so many turns >> certainly does. sticking with the auto sector, the chierm of exor says it will remain loyal to fiat chrysler. writing to shareholders, elkin, who is also fiat chairman says

exor would play an active and ambitious role in the carmaker's operations, adding that he believed the next 20 years in the industry will see greater change than the past 100 i'm very pleased bring in an expert on the auto sector, phillipe from jeffries now, philippe, auto sector m&a has been a topic that's been swirling for quite some time, and it's never really delivered on the market's expectations now we're seeing fiat chrysler seem to be coming into the mix in a much more concrete way. why now? >> you are absolutely right. these are common goals, and we usually come away with disappointment not much more has happened i think what is interesting to watch now is there's always been a restructuring angle to m&a, which is still there in addition to that, there is no -- the number of structural changes that strit is facing in terms of power train, in terms

of how we relate to cars, how we own cars and use cars. it adds to the pressure to rationalize. did adds to the pressure for the value of some brands, and so that -- all those reasons. you have structural reasons to argue for m&a. i think we'll be talking about it for some time there's one thing i would comment, though. historically, the resistance to m&a has also come from political pressure, resistance, national differences, et cetera interestingly, some of the larger m&a transactions we've seen in the past few years, whether it's fiat chrysler or psa opal, those are international transactions and political resistance seems to have been less than in the past or less than expected. that is also a bit hopeful or positive for expectations of more m&a

earlier this month fiat chrysler was cited as a target. they have since rebuffed that report, and it looks like they may be looking at more of a limited collaboration with peugeot. if they proceed with a more limited partnership with peugeot, if they decide later on to look at a more full merger, do you think there is the political will for this that happen, a full merger? >> i think the comments from -- if i heard you correctly, i'm not basically denying the possibility of a combination i think those are complex, definitely it can be costly that's why usually you look at the merger scenario as opposed to acquisitions. but it's a transaction that could be staged over time. what is important, though, is in any successful combination, at least somebody has to be in

charge from the beginning. and that's what almost like the most difficult part to get in place. what you cannot -- let's say that exor is indeed committed to the long-term, it doesn't mean that necessarily you want to assume leadership or that they wouldn't be happy to be diluted in part from their ownership, for example. now, one of the most attractive assets of the fiat chrysler business is their north american business. 12% market share there, and that would be hugely helpful for peogeot as they look to re-enter the u.s. market. could the chinese look to acquire fiat kries already or something that 12% north american market share make it too politically difficult?

>> there has been no speculation in the past. there must have been some interest or at least initial contact made with some potential chinese investors. i would think if you go back in time, at the time of the chapter 11 episode for the u.s. car industry, you know, there were three actors in europe certainly that must have or did look at chrysler as well fiat clearly renault, we got confirmation today also looked at this, and certainly when you get that against transit, the market share they have in north america is lacking there are a number of actors who probably see a lot of value in that 12% market share of dpr ca in north america, and it will be a profitable market share as well the interest would be varied

>> sir, i want to broaden this out and just ask you about the macrooutlook from here obviously, everything has been linked to the global economy in the past couple of days you've had better data coming out of china, better data coming out of the u.s. as well. we've also had confirmation of the weekend from china that additional tariffs on imports of u.s. vehicles and auto parts will continue to be suspended. it is also coming at a time where the auto sectors, twk particularly in europe, is just off all-time lows from a valuation perspective. do you think the macrois supported for investors to start thinking about scaling into longs here >> the valuations are low, definitely, but because the confidence and the earnings is just not there i mean, we have to keep in mind that this is year ten of an amazing auto cycle, which is a six of a cycle and the emergence of china as the world's largest market it is difficult to have no positive views on growth, whether it's volume or earnings

for the industry kbre yes, the sector is relatively inexpensive in terms of multiples not beyond what we have seen before in history in terms of when people think we are at the peak of the earnings cycle >> right sir, just before i let you go, for the sake of disclosure, can you let us know if you have any holdings in any of the names that we discussed? >> oh, not at all. >> great we'll leave it there philippe, thank you very much for taking the time to chat with us analyst from jeffries. now, ukrainians are preparing for a presidential run-off between incumbent and actor and comedian after sunday's elections zelensky won one-third of the votes. the run-off between the two counties candidates will take place on april 21st. now, our very own steve sedgwick spoke to the leader of the party and asked who he is backing in the presidential run-off

>> i will be definitely supporting mr. zelensky. i mean it's not the best option, but -- total destruction of our country. >> he has aus ensibly tried to rebuild the army and the economy, but has he rebuilt the country? >> translator: he had large opportunity because some time ago in 2014 he got 54% it was a mandate for change. unfortunately, he quickly lost the trust of the ukrainian people today he has received a little more than 15% and it shows that people do not trust him anymore. he hasn't achieved anything in the economy, socialized, it or the army, so he started using technology how to make the electorate bigger, how to make more contenders take part in the presidential election. the fact that there are 39

candidates is a technological game for poroshenko to enter the second tour. meanwhile, the oecd is warning that italy's finances will worsen over the next two years, blaming a recession and higher public spending the economic organization says rome's budget deficit will rise to 2.5% gdp. that's above the 2% target agreed with the european commission, but italian economy minister jooufany has responded that the government will set a new 2019 target below the oecd's level. they will release a new set of economic forecasts by next month, which could set the initial framework for the to 2020 budget. >> analysts, on average, have italian growth at 0.2% for this year they still have it north of 1% huge discrepancy, and it's probably going to come to bite when it comes to their fiscal finances we just had some comments from the european commission

president who says that he is slightly worried about the state of the italian economy he says he hopes that italy takes additional action to revive economic growth, but he says he does not criticize italy for signing that deal with china. remember, i was in italy just last week talking about the mu that they did sign in total. something close to 2.9 billion dollars worth of deal, which is a drop in the ocean really, but it had symbolic significance there. exactly. then just to finalize everything, he says that there is great love between the e.u. commission and italy there you go we'll see how far that love goes >> yeah. the love it there. >> coming up in the show, a lyft reverse. shares sink below its ipo price. we discuss what has driven the stock lower. that's coming up next. (danny) let me get this straight. after a long day of hard work... ...you have to do more work? every day you're nearly fried to a crisp, professionally! can someone turn on the ac?!

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event. the allegation comes as biden weighs a potential run for the white house. in a statement the delaware democrat said he did not believe he acted inappropriately president trump, meanwhile, has threatened to close crossings across the u.s. border with mexico. he also ordered an additional. >> they hope to stem the flow of mieg rans into the u.s halle jackson has more >> a surge to the south tonight with 750 more border patrol agents headed toward the mexican border as the president pushes to shut it down altogether as early as this week maybe. >> they asked to support the closer of the southern border? >> not as of this -- as of this morning. >> although the overall knob of undocumented immigrants crossing the border is down from its peak two decades ago, a record number of families and unaccompanied minors are now trying to enter

the u.s. the president has threatened -- >> i mean it i'll close it for a long time. s. >> white house officials insist this time he is serious, and in another controversial move, the president is also cutting off some 450 million dollars in aid to three central american countries for not doing enough to discourage illegal immigration. marlene is seeking asylum near el paso. >> neither will strip willing aide from those three nations. money that helps fight the crime, violence, and poverty that drives people to leave in search of a better life. halle jackson, nbc news, the white house.

>> arsenal beat new castle firing the gunners and putting them in third place. goals from aaron ramsey and -- helped the north london side secure a victory and steal a march on their rivals in the race for a champions league spot switching over to corporate news in europe, shares are trading lower after amazon announced it will cut prices on hundreds of items at whole foods starting from tomorrow elizabeth joins us now for more. this is interesting, right it's somewhat of a reflection of the industry as a whole and some of the price pressures that these companies are going through. not just from a retailer standpoint, but also from a logistics standpoint as well >> this comes after earlier this year at whole foods that it would have to raise prices on some goods we see this grocery space heating up here. amazon acquiring whole foods in 2017, and part of the key point of this announcement is that it will offer exclusive discounts

to amazon prime members. the incentive from amazon is to sign up for prime to say you will get special deals they singled out some pretty wide-ranging list of groceries strawberries, citrus kind of a funny press release to say here's exactly where you benefit. the idea is this could hopefully drive people to amazon prime as customers, boost that e-commerce business as well as the whole foods brick and mortar stores as well >> it shows a lot of competition in the space you wanted to say something? >> 60% of their sales are coming from the u.s., so surely part of the reason that ahold is down today is because of the expectation that this will cut into their pricing, ask they may have to lower to compete is that right? is that where the threat is for ahold? >> that's right. any time we see amazon entering these markets, we see some of the other incumbents in the space threatened it's not unusual even if the sales aren't quite there. we've seen struggles in this whole foods segment of amazon's recent earnings, but because it's such a tech giant, it is

posing a threat. >> race to the bottom on pricing and marge irins as well. for more on the price cuts head to cnbc.com. we've got you sorted there elsewhere in the tech space, lyft shares gave up their ipo gains following their $72 debut price to close their second day of trade almost 12% lower. now, elizabeth, we were discussing yesterday the very strong debut on friday completely different ballgame now. we had discussed the vague path to profitability as one of the key questions for investors. why did this hit yesterday >> right nothing has changed in lyft's financial since it went public on friday, but it seems that some of those concerns are catching up with investors at least after that initial positive day of trading where the stock soared as much as 23% at one point investors are saying maybe i need to take a closer look at this one of the key issues here is that there's no value comparison point in public markets for a company like lyft.

it's the first company in the ride-hailing space to go public. the first of this series of tech companies that have been valued privately at massive valuations for years, and they're just now entering the public space. investors are sort of weighing how they put this in comparison to other existing public companies given that there's no other player like it yet >> also, if you go back and i think we've got -- there we are. the second day ipo perform yns i was going to talk about that now. i mean, there tends to be a lot of fluctuation, and the second day of trading doesn't really give you a strong indication for how the stock is going to perform in the future. look, snap was up 11% on its second day of trading. look where snap is trading right now. shouldn't it -- isn't it just a case of, you know, us having to be a little bit more patient and the fact that this was such a huge deal, the ipo was larger than all of the other 17 ipos for the first quarter of 2019 combined it takes some time for the markets to actually digest that deal >> there was so much exuberance going into this ipo and

excitement that this was the first of many to come this year that investors are saying if your retail investor you might want to take a longer term perspective here there's no clear idea that it's going to even out. >> in terms of first day of trading, i think a lot of these public-friendly stocks, ones that the public can really latch on to understand they see a lot of retail money come in on the first day, and that propels the price higher as well from the analyst community, are you seeing that cited as one of the reasons that the stock rallied on friday in such a robust way >> we are seeing some concerns one analyst saying this was the first time -- it's the fist one out of the box, and for that because retail investors want to get their hold on these stocks, that they use all the time, and

that is some of the appeal of these tech companies that are very prominent similar situation when facebook went public. everyone trying to get a slice of something they know and they can relate to. doesn't necessarily mean that the operating margins are going to get better because there's more buy-in, and that's one of the things investors are weighing right now in early trading. >> just very quickly, talking about the backlog. obviously, all eyes are on uber, and we discussed this yesterday. it's got a market cap estimated to be five times as much as lyft others, air bnb, we were coming up as well do you think these companies will see the price action the first couple of days and perhaps look to stay away or is it just, you know, given how over subscribed lyft was to begin with they're thinking, well, the opportunity is ripe, and you might as well get in there before the economy turns >> the uber ipo will be especially important to watch here because it is lyft's other competitor it's the dominant player in the market it is valued so much higher. $120 billion expected as of right now. that is one of the reasons that maybe some investors looking at

lyft here are saying i might want to wait until the dominant player enters the market it seems like a safer bet given that it can compete with some of the other tech giants in the space. >> something we're going to be watching out for closely elizabeth, thank you for joining us also, in a programming note, wilford frost will sit down with bank of america ceo and chairman to discuss the economy and debt, his outlook on the fed that's at 18:00 cet later today. quick look at u.s. futures before we head out a bit of a weaker session compared to yesterday. that's it for today's show zroo worldwide exchange is coming up next -20.

it is 5:00 a.m. here here's your top five at 5:00 lyft investors need a lift the stock falling below its ipo price. deadlocked again british lawmakers failing to agree on another plan to try to leave the e.u. boeing saying it needs more time to fix all those grounded 737 max airplanes. prices are pushing higher. you what you need to know before filling up your car on the way to work today. let's call it a food fight amazon just upping the antti in the grocery wars in a big way. we'll explain what they did at whole foods. all on this tuesday, april 2nd, as worldwide exchang