happy monday welcome to "street signs." i'm joanna versace. >> and i'm julianna tattlebaum. disappointing export data, just the latest in the series of weak readings from europe's biggest economy. bmw drives lower after setting aside $1 billion after covering a possible e.u. anti-trust case. european bank regulators

reportedly set strict standards between a deal with deutsch bank and commerce banks and president trump revives his attack on the fed calling on the central bank to start quantitative easing while the white house says the perspective board nominations for herm maan cain and steven moore are on track. well, good morning and welcome to "street signs." i want to draw your attention to german stocks this morning as you can see behind me, it's turning into a negative start for the week for the dax this comes after an incredibly strong run last week for the german index it ended more than 4% higher, which was the best weekly performance for the index since 2016 interesting to note given the fact that we saw a raft of

negative data coming out of germany last week, particularly on the manufacturing front and on the industrial production front. we did, however, get some positive data out of china early last week which drove a strong rally through the chinese markets and perhaps is part of the reason we saw this rally in german stocks. it's a high beta play on china and we did see some strength in the dax early last week. also a bit of a catchup trade last week, but this morning it looks like investors are taking some profit on those strong moves. i want to also take your attention to the auto sector here you can see behind me a little bit of a mixed picture. we have a few idiosyncratic stories coming through daimlerchrysler will set aside 1 million euros to cover a fine. they're being charged with colluding to hinder the rollout of clean emissions technologies

for almost a decade. as you can see there, a little bit of a mixed picture overall bmw shares trading lower to the tune of 56 basis points. a few other idiosyncratic stories as well. jomana, what can you tell us >> the export data is weighing on them this morning fiat will pull up its sleeves with tesla to avoid breaching e.u. rules the agreement will cost phi at hundreds of millions of euros. tesla has made over $1 billion from selling it's missions credit to the u.s. over the last three years. they declined to comment on the report they did say that it is, quote, optimizing the options for compliance that the regulations offer. meanwhile, nissan has formally ousted carlos ghosn cutting all ties with the

embattled executive. this comes after japanese prosecutor re-arrested ghosn over the weekend separately, japan's can keogh ts news said they will uphold ghosn's most recent detention. switching topics onto the european banking sector where regulators will lay out perspective rules on the joining of dooump baeutsche bank and commerzbank. strong language coming out of the regulators it's pretty negative deutsche bank down 1.3 and

commerzbank down a percentage as well both trading in the red. let's get out to aannetta. it looks like they're making it quite difficult for this merger to go ahead. >> reporter: well, actually, those comments are not really new to be fair the regulator from the very beginning was saying that it has to make commercially sense and also the implementation risk of such a merger needs to be tackled before actually there are serious talks. implementation risk is something the regulator is worrying about increasingly clearly, just to combine both banks which have a profitability problem, each of them, is not the way of how to actually create and help the bank so what currently is happening

is that the banks are playing around the scenarios and are sounding them with the regulator and clearly what i'm also hearing from the european regulator is that they want to have a clear vision of how the merged bank can be very profitable in all of the areas of business. and here comes investment banking to mind, deutsche bank, there were also reports over the weekend, at least on friday evening, that once deutsche bank retracts from that area of business, the u.s. investment banking over the weekend we heard from deutsch that the u.s. investment banking is not part of the negotiations yet so all of that flying news flow is actually showing us that the negotiations are ongoing, that every scenario kind of is going to be tested and in the end

there will be -- of course there will be a reasoning of whether it makes sense or not. most likely we're going to hear a final reasoning towards the end of april because it's a very complex deal and it's not a lot of time actually for both banks to assess the scenarios. back to you. >> excellent i'm sure investors will be welcoming some clarity we've been talking about it for a very long time now let's talk awe little bit about the markets. i want to recap very quickly, the u.s. equities session. we did have the goldilocks numbers. they came out ahead. it led to a very good end to the week for u.s. equities s&p closed up more than 2% and nasdaq 2.7%. overnight in asia the mood was a little bit more mixed coming off

shy of seven-month high for most of the asian indices there there was a report from china indicating they would be looking to step up the policy of targeted bank cuts, but the optimism didn't last long. you can see in europe the picture is quite muted stoc stoxx down by .6%. the ftse 100 coming off a little bit today down .3 of a percentage 7425 this is another big week for the time being we are seeing the equity index come off a little bit in line with other european entities. i should tell you since the referendum the ftse is up. xetra dax is down almost .3 of a percentage point quickly on that one, we did have

the export data come in earlier and a narrowing of the current account surface. 16 billion euros back to august of 2018. the key exporters are down today. some of them are also and you can see that on here not shown but autos are one of the sectors that are under performing in europe tech is under performing as julianna was eluding to earlier, there's a good sense with the chinese data. oil and gas also up .2 of a percentage point no surprise as wti and brent continue to make new highs this is a picture across the board for europe after a very strong close to the week last week starting monday off with a slightly more negative tone. >> thank you very much let me give you ability more detail on the german trade numbers that jomana just

flagged. german imports and exports fell more than expect the in february amid signs that the largest economy is feeling the impact from global headwinds. germany saw seasonally adjusted head winds falling imports declined by 1.6% we're joined around the desk by nomora i want to talk about market sentiment by germany the dax saw a very strong performance last week, up more than 4%, but the data was largely very negative. what do you think is behind this renewed optimism around germany? >> i think what we're seeing in germany is very symptomatic of the euro as a whole. over the past few months we've seen manufacturing exceptionally weak germany is the biggest economy in europe. it's probably the most open economy in europe.

whatever happens to the global economy clearly shows up in germany. on the positive side, we've seen some encouraging numbers from the domestic side. the service sector has held up better not in germany but across europe unemployment is very low unemployment is rising wages are up i think there are some encouraging signs from the domestic sector if not the global markets germany will stand to benefit if china stabilizes if there is a deal, for example, found between the u.s. and china and trade sentiment improves >> is the worst behind us, do you think? >> well, this is our forecast. you can never be sure. there are a lot of huge uncertainties from brexit to china to the global economy generally. we think there are a lot of reasons to be quite positive on the euro area, not the least because of the domestic side because of monetary support, fiscal support when you look at how far economic output has increased over the past six years since the recovery really started back

in 2013, it's not been the huge epic proportions that generated the financial crash in the first place. we haven't had that increase in output which generates the inbalances. >> talking about monetary policy, we have the ecb news coming up on a wednesday, not a thursday mr. draghi is off to iraq later in the week. should we be expecting anything significant to come out of this meeting or the big announcement was made before and this is similar to what was said at the ecb. >> i think they did enough last time to make this meeting fairly standard that said, there were still quite a few things to watch out for. there's no doubt the economy is continuing to weaken should mr. draghi start to think about other policy options i very much doubt that will be contained within the opening remarks from the president at the start of the press conference, but you could easily see a few questions from some of

the members of the press who then key some interest in answering questions about the details of the teltrose, possible tiering and whether they might change their guidance there are a lot of things that they can look out for and any signs will be watched closely. >> coming back to germany in terms of the economic data one of the questions is how much structural or long term? do we have any insight to say that the slowdown we saw was, in fact, temporary? >> well, i think the longer it goes, the slowdown is much more difficult to argue it's temporary. fact is, if it was just one quarter i could see that would be reasonable, but it's not just one quarter. it's at least a couple of quarters, probably three from what the surveys are telling us. it's not just germany, it's a whole host of other countries. it's not just europe, it's

global mentioned earlier, the numbers showing the slowdown in momentum that we've seen. i think one important point to remember is that it's very easy to over estimate the slowdown, if you will, because the levels of the surveys and the growth numbers have come down from exceptionally high levels. we were trying all the time to think of different ways to describe how strong data was back in 2017 that shows how high it was now we've come back down to levels that were slightly below. the scale of the decline issize sizeable >> while we're still talking about europe, on wednesday they're set to release their update of deficits and growth forecast and expected to under shoot their initial growth expectations the deficit will come out wider than they had initially forecasted not more than the market forecasted. do you think italy as an issue is going to become problematic for bond investors at some point this year?

>> whether it's this year or beyond it, it's difficult to say. there are two parts to the deficit. you have the cyclical part and the structural part. the cyclical part is where they say this is what we do to increase it. the rule of thumb for every 1% you lose off of gdp you can add on deficit if you get a combination of the government wanting to do more at the same time growth weakens, you can easily see how the deficit might increase well beyond what the european commission is comfortable with. >> george buckley, stay with us. chief u.k. and european economist from nomura. you can get involved in a conversation on what we've seen the last week, follow us on twitter @streetsignscnbc coming up on the show, the

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welcome back to the program. chinese shares have reversed gains after signs of more stimulus in china helped lift the country's blue chip stocks to a one year high beijing said it will further loosen bank's reserve requirements to encourage lending to small and medium sized businesses the move announced on the central government's website will be the sixth time the pboc has cut reserve requirements in the last year. meanwhile, the global economy has entered a synchronized slowdown which may be difficult to reverse. the latest update of the tracking index shows all parts of the world's economy losing momentum but that the slowdown was not yet heading for a global recession. elsewhere, talks between the u.k. government and the labor opposition party have so far failed to yield a break through on the brexit with the u.k.

ready to leave the e.u. on friday they are seeking a second delay to brexit. a quick look at how sterling is reacting this morning. we're trading around 130.50. that is the level off of some of the highs we got to last week. still crucially above that 130 mark not really moving commensurate really with the amount of political updates that are going on and developments in the background, but let's get out to sylvia who is joining us live from westminster as ever, sylvia, never a dull moment with the brexit discussions. what can we expect this week and, again, what type of extension are we looking at? >> reporter: well, there are two big things to watch out this week first, the cross party talks between labor and the government and, second, the summit in brussels on wednesday. let's focus on the talks that are happening here in london these talks between the labor party and theresa may are

focused on the political declaration. this is the second document theresa may put together with the rest of the european union and it's basically the basis for the talks on trade the labor party wants this political declaration to have clear reassurances that london will seek a customs union with the rest of the european union but as you know, this is a problem for the brexiteers they don't want to be part of a customs union with the rest of the european union because they believe this will restrict the country's ability to negotiate other trade deals. in the meantime, the prime minister, theresa may, has been criticized for seeking a deal with the opposition party. she said she had no choice let's listen in tosome of her remarks yesterday. >> we absolutely must leave the european union we must deliver brexit

that means we need to get a deal over the line and that's why we've been looking for new ways, a new approach to find an agreement in parliament and that means cross party talks. when you think about it, people didn't vote on party lines when it came to brexit referendum and you know, i think often that members of the public want to see that politicians working together more often. now there's lots of things on which i disagree with the labor party on policy issues, but on brexit i think there are some things we agree on, ending free movement, ensuring we leave with a good deal, protecting jobs, protecting security. >> reporter: the same time the parliament -- u.k. parliament is currently preparing to land against a no deal against brexit, but we cannot just reject this possibility because the european union has said that without an agreement between both of them, they cannot just simply say that the no deal

possibility is on the table. so at this stage every single possibility is still on the scenario be it a second referendum, a general election, approving theresa may's deal or indeed leaving the e.u. without an agreement we've heard across the capitals, in france, for instance, they are taking a hard line when it comes to this process and they've said that they cannot keep extending brexit just for the sake of it let's see how the 27 capitols will negotiate keep an eye on cross party talks that are happening in london. >> excellent thanks for the breakdown, sylvia we'll have to see if the idea of a flex tension gains any ground. let's bring it back to george buckley. the chief u.k. economist at nomura let's talk about brexit. no more clarity. no one has a clue of what's going to happen. in theory, the brexit date

should be this week. we are looking at another iks tension. all of this cannot be good for the u.k. >> no. there are different parts of the economy which are affected probably the one that's affected the most is business investment. if you're a company thinking about investing and you're faced with this uncertainty, why would you invest in the u.k. right now rather than wait it out and make sure that you have more clarity on what sort of situation we're facing, never mind in a week's time, of course, when we won't know whether we're out with no deal, whether there's any deal, whether there's a transition whether it's a customs union free trade agreement. >> i want to ask you about the no deal brexit because actually in recent months you've seen many analysts revise upwards their forecast of what a new deal brexit could look at. even the bank of england initially had estimates of 7 to 3 gdp. now it's 2 to 3. it's still a negative impact

yes, a new deal brexit could have a negative impact but not quite as bad in you're steam, have you donnie work on the likely impact of a new deal brexit and what that could mean for the u.k. economy? >> most estimates of a no deal brexit are quite significant we say only 2 or 3%, but that would be pretty large. >> right >> typically an economy grows at 2% a year. if you were tow get that hit, that's 5% stoppage in growth the rate of growth might not be as strong as it would be after it would mean higher unemployment, lower wage growth if you got the no deal that's not to say things might not be better in the longer term but in the short term economic growth would be hit quite size bring. >> recent data the numbers have

been stronger than expected. when i think about the longer term or medium term, rather, stockpiling, isn't that going to come back and detract from growth >> there's a question whether stockpiling leads to growth. where are you stockpiling from you bring imports in which acts as a negative on gdp they counter act over the longer term, if you do have a deal which involves a transition, then the stocks will gradually be wound down. if you have a deal or no deal at all, then of course those stocks would have to be wound down because you physically can't get the stock back in. the stockpiling was right to do. so whichever way you look at it, whether it's transition or no deal at all, those stocks are going to be wound down which will completely come out of the gdp numbers in future quarters. >> we'll keep an eye on that thank you for joining us on the show george buckically, chief u.k.

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welcome back to "street signs. i'm julianna tattlebalm. >> i'm joanna versace. the disappointing export data a series from europe's biggest economy. bmw drives lower after setting aside $1 billion covering possible eu antitrust as they charge the car maker along with daimler along with emission standards. a strict deal between deutsche bank and come merz bank determining if a tieup makes commercial sense president trump calls on the central banks to start

quantitative easing. one of our top stories, carlisle group will buy 30% of cepsa from mubadala. that will make carlisle's stake at 4.8%. thank you for taking the time to speak with us. congratulations on the acquisition. i want to start off by saying, why? why does it make sense does it happen to coincide with the 40% rebound you've seen in the oil price in the last few months >> yeah, thank you very much happy to be here this has nothing to do with this it's a core strategy of carlyle energy partner where we invest in oil and gas companies, strong

oil and gas companies which we like to grow with our capital and we like to grow with our partners like mubadala. >> can you talk me through how this will be financed and how the competition with your existing energy funds versus new funds that you'll be looking to raise for the final stake? >> so the financing situation of the company, which is investment grade cepsa will not change. what we will do is we will invest from two buckets, one from cip carlyle's initial energy partners and we will invest from a new fund which is a new fund and then two other carlyle funds will coincide. one is carlyle europe.

>> this was a dual track process that mubdala was using to shed this asset they canceled the ipo due to market volatility. what gives you the confidence that this is the deal for you at this price clearly they judge that the market was unwilling to pay a higher price than what you were willing to pay for it. >> i think in general ipo markets in europe especially for industrial companies like cepsa but also other companies were not good last year what we do, we invest private capital over many years in companies so we have a very outspoken idea about value and how we can create more value out of the companies we're not susceptible to day to day or market fronts i think that's important when we study a case, we don't have sentiment, we don't have market sentiment, we leave the

value of the company we found cepsa a very attractive company to invest. >> let's talk about unlocking that value cepsa is an integrated energy company that operates across the full petroleum value chain in more than 20 different countries. where might you be looking to shed some of these assets in terms of their place on the value chain and also in terms of geography? >> so we're not focused on shedding seassets, we're focuse on growing we see world class refineries which are ready to supply the clean fuels to ships and the world on the first of january 2020 is ready to supply and has to buy clean fuels for ships so cepsa is very well producing for that have a world class chemical base needs. have a very strong downstream position in spain but they also have a very strong upstream position so projection of oil and gas and

it's varying especially in abu dhabi and nigeria. very attractive world class with very low break even prices we are thinking much more about growing the business and that's how to create our value and we can get to it. >> i just want to go back to the original announcement. you said you've agreed to buy a stake between 30 and 40% of the company. i mean, why the range? and is there any condition alit that we should be aware of >> no, there is no conditionality we will buy steak. we will see at closing what exactly the percentage is but it will be between those two ranges so there is no conditionality. >> as my colleague was alluding to, there was a paragraph that caused some concern among the investor community, specifically the energy based project

partially financed by one mtb which is the fund under investigation right now. do you feel that the price that you are paying today adequately compensates for the risk you're undertaking specifically as it pertains to some of the reputational risks here? >> so since as you know they disclosed everything when they set out in this ipo, so everything was made perfect, but also carlisle did, as we always do, a very extensive due diligence. so we weed out signing a deal taking everything into account. >> thank you and i just want to broaden out and ask you in general of course you have been making significant amounts of investments in energy space. do you continue to see up side in this sector do you see opportunities beyond that which was announced today

>> yeah. i think energy right now is -- especially in oil and gas is not a large sector by the market but the backtalk, there is a lot happening. so you still see well into the 2040s growing oil demands for around 1.5%. you see it even steeper the amount for natural gas and that has to do to switching from coal fired power plants to gas fired power plants gas is a very important transition fuel to the future. a clean fuel so we see growth there what we also see on the downstream side when you have world class essence the way you produce sustainable and clean fuels and renewable chemicals, we think that is an enormous broad market as the population grows from 7 to 9 billion people in the coming decades, we will need more so we will need more

chemicals, especially for fertilizers, for food. that's a very important growth area so we focus on these areas and we see very good opportunities to invest. i think also what is important, renewable energy is a sector we are following and i think it's very important developments there. by the way, cepsa also has exposure to renewable energy and is growing it. you don't forget that technology is also improving oil and gas, more efficient, cleaner fuels, lower emission and we think that it is a trend which is completely renewable and we want it there. >> thank you for taking the time to speak with us well, let's take a look at european markets this morning. we're now just over 1 1/2 hours into trade as you can see beside me, it looks like there's some profit

taking taking place. the stoxx 600 remained higher. the dax up more than 4%. today it was a key laggard now pairing back some of the steeper losses trading down 28 basis points ftse 100 as brexit takes investor attention trading down 26 basis points. it's a big week here in europe not only on the political front with brexit taking center stage but also on the monetary policy front with the ecb set to meet on wednesday now let's take a look at fx markets and see where the euro is trading currently 18 basis points higher versus the dollar above that 1.12 mark. the pound trading 18 basis points higher. 1.30 level is the place where we're at right now wednesday, as i said, the big day. we have the ecb meeting and the fed minutes and then the

emergency e.u. summit where we will look to answer the question hopefully around the length of an extension we may get for brexit but it remains a big, open question uncertainty is still the name of the game when it comes to brexit let's take a look at u.s. futures there. we're looking at a slightly weaker trade to start. the s&p down, the dow, the nasdaq all coming lower. this comes back on a solid jobs report on friday also a solid week yaefr all for u.s. equities led by materials jomana. >> thanks again. switching to the middle east now. israeli prime minister benjamin netanyahu has pledged to annex jewish settlements if he is re-elected speaking in a tv interview he added that his government will extend israeli sovereignty to the entire area and defend a palestinian state. those settlements are considered illegal in terms of law. israel will hold general elections tomorrow with polls

suggesting a tight race. arab countries should help israel overcome the security concerns we're joined from aman it's an interesting 24 hours with elections coming up hadley, what more can we expect? >> reporter: frankly, jomana, every election in israel has been won or lost on the basis of national security. this is a country as you know whose economy is doing very, very well, security is still top of the agenda. this of course against the back drop of u.s. foreign policy that has frankly given an unprecedented level of support to the current governor benjamin netanyahu. we'll be bringing the elections to you live. something really interesting, conversations that were had here at the world economic forum in

the dead sea let's listen in to what the owe omani foreign minister had to say. >> translator: israel despite the full power and despite everything we said is not assured as to its future and doesn't feel secure because it's a non-arab country living in an arab neighborhood surrounded by 400 million persons and it is not secure it doesn't feel secure about the kopt knew the at this of its presence in the region and i think that we as arabs, we have to be capable of looking into this and we need as well to

actually put an end to these fears. >> as you can probably imagine there, raising some serious eyebrows on that panel the defense minister from lebanon pushing back on their colleague there saying it's not our business to make the israelis feel secure i asked them is the answer going to be that you have to recognize israel as a sovereign state to make them feel more secure he didn't want to go that far. this is very much on the minds of the folks gathered here at the dead sea another country came up was russia let's listen in to the president of the world economic forum. >> i think there is clear reality on the ground that we see more of a russian footprint first in syria russia is a place that plays an important role we also see that there is a lot of interaction certainly in president putin and prime

minister netanyahu we also see that the gulf countries are discussing very much with russia when it comes to oil price because russia is the largest oil producer in the world even more than the saudis. saudi is 10 million a day, russia is 11, 12 million barrels. when it comes to the u.s., the u.s. are still involved in the region you have seen secretary pompeo recently we also saw jared kushner, a special advisor of president trump here, but of course there is a movement to see other nations trying to increase their influence in the region. >> he was saying the increased presence of russia, he's not talking about boots on the ground in syria, also talking about all of the economic diplomacy we've seen coming out

of moscow in the past couple of years, particularly when it comes to riyadh. they're talking to the egyptians. they have an economic zone along the suez canal they're having discussions with the lebanese as well as jordan who was here over the weekend. l laprov speaking with his colleagues about economic cooperation. certainly as we head into the weekends, with the support that we've seen to the president when this comes to netanyahu's chances, we've also seen the prime ministerin moscow in recent days as well. israel is playing both sides of the aisle. >> looking forward to your coverage tomorrow. thank you for the update. coming up on the show, oil prices are at their highest level since late last year we'll go to the middle east petroleum and gas conference in dubai shortly.

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signs. in a surprise to no one, we've been hearing some comments from the british foreign minister saying i can't tell you that i'm very confident or not confident about brexit talks with the labor party. he says, he cannot go into brexit discussions with big red lines. he says may is leaving no stone unturned to reach a brexit deal but that brexit talks with labor are not easy we are heading into a crucial week yet again as far as brexit discussions are concerned. we'll keep an eye on anything else coming out and anyone else who wants to weigh in. elsewhere, saudi arabia's energy minister said saudi aramco's $10 million bond issue has gotten 30 billion in demand. the debt, which will be issued in sureties, is expected to be

sold quickly. oil prices are sitting at their highest level since november boosted by opec's supply cuts and u.s. sanctions against venezuela and iran both wti and brent have rallied more than 20% since the beginning of the year. you can see there wti trading up 0.5% so far this morning let's get back to dan murphy who is at the middle east and gas conference in dubai. dan, you're with someone now who knows a little bit about energy prices what more can you share with us? >> absolutely. the outlook on energy prices are trending at 2019 highs pleased to say that joining us is dave durnsberger. welcome to the conversation. thanks for being here. wanted to get your reaction to the saudi commentary at an event in riyadh talking about the

aramco offer saying demand here is north of $30 billion. is that necessarily a surprise, the appetite, we're seeing to the offering >> i think the appetite is not a surprise but what will be surprising is that we will be going ahead and going ahead as quickly as we're talking about the ipo talks about the state of talks of the brexit depending where the ipo happens all the way to the price of oil. we're talking about here in dubai today. it's a momentous event it says a lot about where confidence is arranged saudi arabia it's providing it in the oil markets. >> how do you determine and measure the success of this operation? >> how much of the company is listed, what the uptake is on the bonds. everybody expects it to be high. we're at prices watched in the marketplace. also, there are a few other things we should be looking at, too. how detailed, for example, is the prospectus how much information is aramco

expected to share about the questions aramco has had about the operations, the base of operations and those things will not only drive how the company evaluates the placement but the placement of the shares itself. >> i wanted to ask you about your outlook for oil as well saying today that the jmmc meeting is going to be crucial to watch because this is when producers will decide whether or not to extend the current production agreement what's your thoughts the likes of ed morse at citi saying, hang on, this is not going to be extended other analysts that we've spoken to and also the energy minister himself have suggested that the deal will be extended. how do you see it? >> here we are in april in dubai. you can hear right now in the room the mood among those who watch opec is a little bit celebratory at the moment. opec is feeling good about the steps it took so far this year in what it would see as to

correct it nobody knows what opec will decide to do including the most senior representatives really that decision will come down to saudi arabia, kuwait and the suppliers out of that group. i think what they're thinking about more than anybody, nobody knows the answer to this, how the non-opec parties are viewing this relationship. i think they are willing to extend saudi arabia, kuwait will extend will russia support that that's the key question. >> do you think russia's overall commitment is starting to wane >> i think the commitment of all non-opec partners is starting to wane it's always at these kinds of levels that we see general compliance start to fall off and compliance with non-opec members in particular. i think there's a bit of reckoning to be had between saudi arabia and russia. that's a giant geopolitical

conversation to have i think that's the question that's unanswered right now going into the jmmc. >> very interesting. can i also ask you about iran this seems to be a wild card for the market what do you think the u.s. president is going to do when it comes to the sanctions and weighing the extensions? >> here we are with donald trump already contemplating what the path looks like to the next presidential election. the question he faces in everybody's minds, do you really want higher gasoline prices? there's a lot of spark to do that is he willing to have high gasoline prices? is he willing to look a little bit softer on iran and have lower gasoline prices? what is the tolerance of the u.s. consumer for gasoline prices heading into the next u.s. election cycle. that's a key question. mine would be look at the actions of the administration so

far. they believe the wavers and oerps that they can commit to. ground wavers in the background to have your cake and eat it too. if they can get there, that will be the preference of the administration. >> we'll leave it there. thanks for joining us today. >> enjoy the rest of the conference >> back over to you. thank you very much for bringing us that very interesting conversation from dubai. well, president trump increased pressure on the federal reserve once again urging the central bank to lower interest rates and start qe speaking to reporters at the white house, trump praised the strength of the u.s. economy after the strong jobs data saying the country is, quote, doing unbelievably well. >> and yet they need to reintroduce something, right >> white house economic advisor larry kudlow defended trump's plan for the picks for the federal board.

steven moore and herman cain trump has, quote, every right in the world to pick a person who shares his beliefs neither cain nor moore has been elected. cain expected increased scrutiny and moore has to produce documents in relation to his tax filings. very interesting on the fed side minutes this week, quick look at the futures. negative as we head into the first trading day and earnings will be kicking off this week as well that is it for the show. midwe chgeisan" cong up next (client's voice) remember that degree you got in taxation?

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it is 5:00 a.m. here at cnbc global headquarters. here's your top five at 5. is the rally at risk the s&p 500 is on the longest win streak in more than a year will the up coming earnings season put the bulls to bed? hitting the road, pinterest kicking off the road show today. we'll find out how much the crafting company is looking to raise for its ipo. the world's biggest hedge fund manager saying american capitalism is not sustainable. we are digging in more an ray dahlia's shocking new comments. warren buffet waying in on who he would like to see or not see as wells fargo's nex