welcome to "street signs." these are your headlines yourp even stocks are mostly lower despite record u.s. highs as the auto sector declines after nissan cuts its profit outlook. >> shares in credit suisse amongst the best performer as they beat expectations in the first quarter and the ceo tells cnbc he is cautiously optimistic >> what we have seen brutally is a continuation of the trends of

march overall supporting the environment, continuing the trends we saw at the end of q1, so the phrase i would use is that we are cautiously optimistic >> s.a.p. hits a record high after the german business software group shrugs off a first quarter operating loss with aggress i medium term profit targets forecasting cloud margins of 75% wire cards share surge to the top of the stock 600 as the german firm confirms a $1 billion investment from japan's softbank zbleefrmts good morning, and welcome to "street signs." we have fresh data we have the eafo survey. it's come in at 99.2 for april

versus route israel consensus forecast of 99.9 a little bit below expectations. on the current conditions index, that came in at 103.3 for april versus expectations of 103.6 again, a touch light of expectations finally, the third component of the ifo survey, the expectations index, that came in at 95.2 for april verz consensus expectations of 96.1 all three of those metrics, the expectations, the current conditions, and the business climate index all came in light of expectations. in terms of commentary around this, the ifo institute says the german business morale has fallen in april. it continues to lose steam that is the german economy continues to lose steam. shouldn't really come as a major surprise given the data we've seen recently out of germany in particular those manufacturing pmis

nevertheless, taking a look at the euro on the screen in front of you it is trading lower about 25 basis points let's take a look now at how european markets are trading it's just a couple of moments now after that data has come through, but beyond the data, there is a huge number of corporate earnings in focus today for investors to digest. as i mentioned there in the headlines, we are coming off of a recordbreaking day on wall street that positive momentum has faded a little bit in the overnight session in aidsa initially we saw stocks trading higher there, but eventually that optimism faded, and that seems to be the tone that european markets have picked up. we are seeing these stock 600 trade lower to the tune of about 20 basis points retracing yesterday's gains. let's take a look at the individual regions and see where that weakness is really coming from it is a negative picture looking across the board there the ftse 100, though, the worst performer of the bunch bear in mind, though, that yesterday the ftse 100 was the best performer there driven higher by the natural resources

space on the back of those higher oil prices. today slightly different picture. we are seeing a negative look across this -- across the board. finally, let's take a look at sectors. as i mentioned, today is a big day for corporate earnings that's driving a lot of the moves we're seeing stock-wise. at the top of the board technology firmly at the top of the stock 600 up nearly 2% there we are seeing the sector driven higher by s.a.p. shares which have surged after activist elliott has announced a stake in the business down at the bottom basic resources and oil and gas trading lower. now, let's get back to that german ifo data that i mentioned, and i want to bring in clemens fuest thank you for joining us we are seeing across all three of those metrics a relative to expectations more weakness out of germany is there any bright points out of today's data? >> well, the picture is divided

as it was last month, so the domestic economy is strong services are strong. construction is strong. >> looking at the latest pmi date yark the drop in manufacturing order books in april was led by a further steep decline in new export orders, which fell at the second fastest rate in the past ten years where exactly is that export weakness coming from you mentioned autos, but regionally, is this coming from lower demand from china or is it more european weakness in demand >> i would say it's an across

the board weakness really. we have some good news recently from china and the u.s., but still exports are stagnating, and exporters also stagnating in europe there is no particular hotspot in that regard it's an across the board weakness in exports. >> so you mentioned that this time around we are seeing some weakness in the domestic economy as well. does this mean that the gap we're seeing between services and manufacturing with services strongly outperforming of late is inevitably going to close >> it is likely to close or at least unlikely to persist. what we are seeing is strong dou demand in everything that's consumption goods and weakness in domestic investment the trouble is that in germany tech is a relatively high energy prices are high, and a lot of domestic politics is focussing on redistribution and wages are

rising, employment is rising, so domestic consumption is growing, but firms do not invest in germany. that shows in orders for investment goods as well >> listening to you it sounds like a fairly bleak picture. what are the chances that germany heads into a pronounced recession? >> we don't think germany is heading towards a recession, and that's precisely because there is strong domestic demand from a consumption side in the medium term, the slow investment is a concern. we do not expect a recession, but we expect a soft landing and recovering from that will be difficult. >> what are your expectations in terms of the prospect of escalating tensions between the u.s. and europe and what this would mean for the german

economy? >>. >> this clearly is a risk for the german economy trump has recently made some statements about european tariffs. hard harley davidson. the risk of a trade war is still there. what offers a little hope is the fact that trump has no interest in further negative economic shocks for the u.s. economy because he wants to win next year's election. the hope is that he will avoid an escalation of the trade war in order to stabilize the u.s. economy, but whether he is that rationale, you never know with him. >> fair enough point there looking at trading today, we had another reminder of the weakness in the auto secretary of stator. you mentioned the sector as one of the particular drivers of the weakness woef seen thus far. a lot of the early signals suggested the weakness was going to be temporary. now we're seeing the auto sector continue to struggle what are the chances that we see

any substantial turnaround in 2019 >> i don't think that that's very likely. a lot of consumers are uncertain as to whether they should continue buying diesel cars. some do. there's some stabilization in diesel car sales, but there's uncertainty regarding the future a lot of people are focussing on electoral mobility, but the cars on offer are still quite expensive, so one does get the impression that a lot of consumers are just waiting to see how the market develops, and that's bad news. at least in the short-term for the car industry >> thank you very much for joining us clemens fuest, president of the ifo institute. getting back to corporate erpgz, credit suisse has reported unexpected rises in gains. switzerla switzerland's second largest bank said the macroconcerns have

started to fade, and it's cautiously optimistic about the quarter ahead. jumana joins us live from zurich where she's been covering the results very closely it looks as if the market likes what it sees give us the breakdown. >> good morning. yeah, exactly. the stock is up about 3% already in trading on more positive results. just breaking it down, we got a beat on the revenue. we got a beat on the bottom line as well. the market is reacting to that, and also positive signs when you look at things like the c.e.t. 1 capital ratio. at credit suisse are right at the beginning of a share buyback program that they announced to the tune of 1 billion chris frank. if you want to look at the overall performance, credit suisse has said this is the best

performance they've seen in 39 months despite a lot of the challenging market conditions as we've heard from other banks across the pond in the u.s., of course, banks bemoans the lack of trading activity there, and many people were looking ahead to this european banking season with a little bit of caution given how difficult the quarter has been it looks as though march was a very strong month indeed for credit suisse. now, the interesting thing about them, of course, is that they do have a target, a return on equity target of 10% this is a bank that has moved from a restructuring move. it's taken three years from 2015-2018 to transform the business they are now very much a restructured bank, and the question is all about where the increased profitability is going to come from and how are they going to increase the top line i this had the chance to speak with the ceo a short while ago, and i asked him about his take on the quarter and about some of the challenges ahead let's take a listen. >> it was a good quarter overall after a very slow and difficult start. i think the thing i would point out is capital where i think we

stand at 12.6%, which is a clear beat on consensus, which is much lower. snoo if you remember in q4 -- we are back to 9.6 billion. almost 10 billion. record set of the monitoring in asia in particular we have 219 billion under monday torque but all-time record. wealth management strategy continues, and we're really good news is the performance of the global market which i think is a very, very large beat. we are now in sales and trading up in equities it's the first time in many, many years at 4%

>> let's see what he can do in the dpers quarter. most ibcm where it's a difficult quarter, but we're very focused on the primary market wrrg you saw the primary market be closed in january and february in the u.s. it's affecting our numbers the pipeline is very strong. we have very public announcements we did a chevron deal exclusive live. we have world play we have vip, which is the larnlest in europe this year the pipeline is strong, and we're confident in the prospects. >> yet, looking at the numbers, if i do a little more detail, i see the asia pacific, the quarter for that region in particular was a little bit tricky you have double digit drops and

private banking as well, and there's a weakness in your ibcm investment banking and capital markets as you just rightly pointed out. >> yes but -- >> is this one-off >> we are way ahead of consensus, and it's a clear beat much better than expected. we're down 14%. the business did really well in a tough environment in asia. >> yet, sir, you have a return on equity target of 10% for this year you're still only hitting 8% a lot of analysts out there asking the question, okay, despite the fact that you have beaten today, how are you going to get to 10%? >> how are you going to get to 10% in an environment like this. we had 6% last year. % is a year you just increase on last year, and if you -- we'll show you the numbers today

it's the same news let's go back to target. we say that we're flat revenues. we hit 10% that's what we say yesterday we are flat revenues we would have hit 10.9%. difference between 10.9% and 8% is a drop in market activity the target was always that we are flat news, and we are 10%, and that's been the case >> you still think the 10% is achievable in -- >> it's achievable we have a supporting environment. plus, our usual efficiency and productivity it's a typical 8% for a -- you will see we were first to report you will see what our peers report it shows you the success of our restructuring, because we are profitable this is our highest profit since second quarter 20 a15 four years ago, and everybody knows what happened in q1 in an environment of challenge like we had in q1 , we have reduced our best profit in four years. we think that the proof of this

restructuring which ames to cost lower risk and grow as the leverage >> is it fair to say that credit suisse has gone from a bank under restructuring to a bank that is restructured >> absolutely. absolutely restructured we close down at the end of 2018 we had this restructuring unit, which with he depleated, closed down now we are operating like a normal bank, and we print a decent profit in a very tough quarter. >> i want to pick up on one line in particular. we delivered an excellent performance despite tricky market conditions. when i asked about that return on equity 10% target, he didn't rule it out for this year in terms of achieving it, but he said it all points down to very tricky market conditions actually, if revenues had been stable, a big if there, he says that they would have actually achieved that 10% return on equity target. i just want to go back, though, and point on at some of the reports -- the results by division as you know, juliana, much of this is an expectations game,

and he said specifically that their performance in markets, they're proud of that and did well given the market environment. there in particular the global markets revenues came in down 10% year-on-year to put that into perspective, u.s. banks in ag gat were also down 11% year-on-year. many people expected european banks to fair much worse credit suisse is the first amongst many banks supporting this week. tomorrow we get ubs. after that we get barclay's. rbs and deutsche bank also to look forward to as well. the first of its peers -- it appears as though the numbers are not as bad as some had anticipated. their equity revenues are marginally positive. fixed income still down 13%. as he put it, it is a relative outperformance, and they are gaining market share, in that space. it will be interesting to see what color and what picture this paints for the rest of the sector as we head right into the heart of earnings season this week >> jewel really interesting intw there, and interesting to see shares reacting to the beat versus expectations.

now, shifting gears away from banks, another stock in focus today, s.a.p. has set new medium term profit targets despite reporting a q1 operating loss. the german software firm is aiming to boost its operating margins by 5% through to 2023 by expanding its cloud operations s.a.p.'s loss in the first quarter came mostly from a restructuring charge activist investor elliott management, though, has disclosed a stake in the german firm and backed s.a.p.'s strategy elsewhere sort of bank has announced it is buying a 5.6% stake in wire card the german on-line payments firm says 900 million euro investment will help the company expabd in east asia while also "providing collaboration opportunities in areas like data analytics and artificial intelligence. the move comes as wire card faces scrutiny over allegations of accounting irregularities in asia it denies wrong doing. coming up on the show, there's more merger talk coming out of frankfurt we'll cross over to anetta for

the latest on deutsche bank's future next. ♪ ♪ applebee's bigger, bolder grill combos. now that's eatin good in the neighborhood.

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>> this is the strong performance of the heart failure medicine sales of the latter jumped 87% in q1. elsewhere novozymes first quarter sales came in below forecast 3.52 billion danish crona. the middle east was the main drarks and it also blamed the slump on weakening u.s. demand for bioethanol we'll be crossing over to peter holk nielsen stay tuned for that.

heineken has posted a rise in beer sales in its first quarter and said it grew in all regions. the company saw consolidation -- meeting expectations they also reported an uptick in net income compared to the previous year and confirmed its 2019 outlook shares in desosystems are trading higher after the software firm posted an annual increase in first quarter revenue and operating margin the company has also announced a long-term strategic partnership with bhp to applied digital technologies to the mining sector and axonobel reported a rise in first quarter core profit, beating expectations as higher prices helped offset a fall in volumes partly stemming from a slowdown in china. the dutch paint maker also said it's targeting 200 million euros in savings by next year, but added that it will incur one-off costs in 2019 and 2020 speaking to cnbc earlier, ceo

terry von languager says the company still faces significant challenges >> it was encouraging to do it in one word. as you indicated in the introduction, quite head winds, raw terlds still negative. china still pretty much at the same base it was in 2018 all in all i would say the quarter is very encouraging for our 15 by 20 goals that means to reach 20% ebit for costs by 2020. >> now, despite those comments, they are trading lower on the day. the banking sector is also in focus today it's part of a clean-up of its operations if a deal fails ubs and deutsche bank are,

meanwhile, reportly in talks to merge their asset management businesses according to the financial times, both firms have been in talks for a couple of months deutsche as asset arm, dws, listed over a yoer ago, but it's still 79% owned by the german lender the deal would create a european giant in the investment industry with 1.4 trillion yearos in assets under management. now, let's get out to annetta, who is joining us. she's been covering the story in close detail most of the time when we speak, annetta, it's about a tie-up between deutsche bank as a whole and commerzbank. this time it's around the asset management arm and ubs what's the arm for this potential tie-up >> well, the business rationale is quite clear a tie-up between both at the management arms would create a champion, a big asset manager which would probably better -- be in a better position to

compete with the likes of black rock internationally, and that's why what i'm hearing is that that's why that idea is so much slight also internally the rationale also is that deutsche bank would create an asset management branch, which would be most likely more profitable because the scale really matters in asset management looking from that perspective, it would actually make a lot of sense to combine both businesses, and what i'm hearing from my sources is that these talks are really ongoing and that they are approaching a serious stage. everybody wants to have a solution on that question as well ahead of the agm of deutsche bank, which is towards the end of may on the 23rd of may. we should see quite a bit of information going on, information flow going on during the course of may when it comes to that asset management story it would not necessarily mean that deutsche bank would raise a

lot of money because deutsche bank does not want to sell their asset management, but they want to make it bigger and more profitable >> excellent thank you for weighing in on the latest developments. another angle to the deutsche story. we will be closely watching. >> well, coming up on the show, investors hit the road after japanese carmaker nissan hits the brakes on its profit outlook. we'll cross live to tokyo for the latest what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

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european stocks mostly lower despite record u.s. highs as the auto sector declines after nissan cuts its profit outlook shares in credit suisse among the biggest gainers as the swiss banking giant beats expectations in the first quarter and the ceo tells cnbc he is cautiously optimistic. >> what we have seen is a continuation of the trends of march overall supportive

environment continuing the trends we saw at the end of q1 the phrase i would use is that we are cautiously optimistic >> s.a.p. hits a record high after the german business software group shrugs off a first quarter operating loss with aggressive medium term profit targets forecasting cloud margins of 75% wire card shares surged to the top of the stock 600 as the german firm secures a $1 billion investment from japan's soft bank let's take a look at european markets we are coming off of a strong day where the u.s. and nasdaq both hit fresh highs today it's a slielts more negative picture in europe we are seeing the d.a.x. break out of its negative start. up about six basis points at the moment red for u.k., french, and

italian stocks today is a big day for corporate earnings we've been running through them all this morning a huge amount for investors to die just we also, of course, had our first look at the european banking space in terms of earnings for the quarter credit soouts soouts has come out ahead of expectations, but not enough to boost the broader region, and we are seeing a down day coming together for europe giving back some of yesterday's gains. let's just shift gears to the fx space. yesterday was a strong day for the dollar with the dollar index rising, hitting et cetera highest level since june's 2017. now looking here we are seeing that strength in the dollar continue the pound also trading weaker below that 130 mark. we have, of course, the weak german ifo survey come out this morning weighing on the euro there. the picture of strength for the dollar continues today

finally, let's trook at u.s. futures. as i mentioned yesterday, a record-setting day for the s&p and the nasdaq it looks like we're going to be giving back some of the gains this morning, but no massive moves there. we are looking at a 26-point drop for the dow at the open very minor moves for the s&p 500 and the nasdaq now i want to bring you some headlines coming out of iran we have some comments from the supreme leader iranian president hasan ruwani he said iran is willing to negotiate with america only when the united states lifts pressure and apologizes iran can export as much oil as it needs, he adds. this is a story. of course, you have been watch this very closely yesterday. we saw a massive surge in the oil price on the back of the united states moves, and now we are hearing according to state media iran coming back with further comments on their potential willingness to negotiate with the u.s

now, let's get out we have hadley gamble over in the region that is because saudi arabia's -- has risen almost 20% so far this year ahead of its inclusion in the msci emerging markets index. i mention that because riyadh is looking to woo more international investors as part of its vision 2030 strategy and the kingdom is hosting a two-day financial sector conference as it examines how the financial sector can contribute to the policy hadley joins us now live from riyadh she's the expert in the region weigh in on what's going on there. what's the feeling on the ground and putting it all together for us >> it's pretty fascinating juliana, what we were discussing just a few months ago on the sidelines of the second fii financial investment initiative in saudi arabia was whether or not the billionaires were going to come back to saudi arabia in the wake of not just the riyadh ritz carlton roundup where we

are right now, but also, of course, the death of jamal, and what we've really seen over the last 24 hours or so was a rekpimt from so many in the financial community including the ceos of hsbc, stock gen. we've heard from larry fink. they're here at the first annual financial sector conference. now, this is held by the minister of finance, unlike what we've seen in the past with big investment conferences in saudi arabia this is really very much focused on fdi foreign direct investment inside saudi arabia, and, of course, no one can get away from the big overarching question about not just a leadership in this country inside saudi arabia and, of course, all of that has to do with mohammed, the crowned prince, and investors confidence in him to lead his country, but also the external geopolitical situation. i had a chance to catch up with larry fink at the end of the day is washington getting it right here essentially with the heightening rhetoric between tehran and washington, that really catches the gulf arab countries right in the crosshairs is it dangerous? let's listen in to what he had

to say snoo i think security in the region is getting more secure, and i think this is one of the foundational reasons why investors have become more interested in the region. >> if there's a time to make the region even more secure, it looks like this is probably a very good time to do that. ty think this is also dovetailing probably in association with moving much closer to the trade agreement with china i think this is all being orchestrated i don't have enough information to know whether it's right or wrong, but it looks like an inopportune time to try this out. >> the ceo and chairman of black rock talking about how dangerous this region is, and he

essentially was saying, you know, with heightened media scrutiny following the murder of japan khashoggi and what happened with the ritz carlton roundup, he said frankly the scrutiny has made things better. it's pushed reforms that are so necessary to the future economic stability of this country forward. essentially, it's telling me later in the panel that we've just watched a bit of that fraijly he sees really good opportunities, not just inside saudi arabia, but in the broader region in spite of the security issues a lot of things on the table here at this financial sector conference a lot of questions about the future of investing in the region, but also, interestingly enough, a lot of confidence. back to you. >> hadley, thank you so much for that update. really interesting to hear that the word of the day there is confidence. analysts warn the country's tourism sector, which accounts

for 5% of gdp, could face collapse isis has claimed responsibility for the attack that killed over 320 people, but have so far failed to provide evidence it was involved >> if you want to weigh in on anything that we are focussing on today on the show, you can follow us on twitter at street scenes.cnbc, and tweet me directly at cnbc juliana coming up after the break, we'll be crossing to coppenhagen to speak with ceo peter holk nielsen. don't miss it.

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can south hampton's shane long didn't take long to find the net against watford after scoring in just 7.69 seconds making it the fastest goal in premier league history atford took 90 minutes to equalize send he wanteding the game 1-1, and they left the saints six points above the relegation zone. spurs go through points ahead of chelsea in third place after

securing a late 1-0 win against brighton now away from the sports space to the auto space, nissan, they, of course, announce that they will cut -- they have cut their profit guidance for the year, and we are now having the cfo of nissan weigh in with a little bit more detail on what's driven that profit guidance cut. the cfo says that japan sales have taken a hit from the ghosn financial misconduct scandal, and that the main factor of the profit outlook cut is costs related to extending the warranty on the transmission component in the u.s that affects around three million vehicles the cfo also said that the provision relating to the ghosn misconduct scandal will likely be lower than 9.2 billion yen announced in february. a little bit more color around what has driven that warning as you can see there, the nissan shares are shut now, but renault closely tied to the fate of nissan and what's going on

there. renault shares trading lower at 3.36%. we are seeing the weakness also filter through to the broader auto sector. now, as i said, this comes after nissan has cut earnings on poor u.s. sales its second downgrade in less than three months. nissan motor shounsed a sharply lower than expected profit forecast for the year ended last month it slashed its operating profit forecast by 45% or a little over $1 billion net profit is expected to fall 57% from the previous year now, the downgrade was largely due to weak sales in its core u.s. market.

global unit sales was -- u.s. sales make up around 40% of the automakers' operating profit, and the firm had been trying to switch from a sales strategy of heavily relying on sales incentives, but as they cut the premier, sales had seen a sharp drop reports say the french automaker is pushing for a merger with renault, which highlights the challenges of the company following the removal of carlos ghosn. that's all from the nikkei back to you. >> thank you very much joining us live from tokyo on the ongoing story around nissan renault. shifting goers to the macro. the u.s. will send a high level delegation to beijing next week to continue trade talks between the world's largest economies.

lu will lead a delegation for washington the following week. reports in state-owned media suggests that the two sides had reached a consensus on a new trade deal the latest data show the economy growing 6.4% in the first quarter. according to reuters, a number of policy insiders say a triple r cut was no longer necessary to boost growth at least one more targeted move is expected this year. the stra central bank has offered a medium term loan to some commercial banks in an effort to support smaller businesses north korean leader kim jong is legd to russia for his first ever summit with president vladimir putinin the kremlin has confirmed the meeting will take place tomorrow and that talks about focus on the nuclear program. kim jong un is seeking to build

international support after talks with president trump collapsed earlier in the year. the ceo of etb bank has told cnbc the mueller report finds zero collusion between the trump kpain and russia speaking in an exclusive interview, he added that he hopes u.s. politicians will rethink their relations with moscow jeff cutmore joins us in moscow. you conducted that interview with mr. coston where, what more can you tell us in terms of what he is thinking about u.s.-washington relations -- u.s.-russia relations and other things going on in the region. jeff. >> the hope is that post the release of the russian report and the lack of a smoking gun, as it were, that there can be a

reset in relations he is also interested in how the economy is developing. of course, the bank is very keen to see higher growth rates that ultimately could be good for russia given how dependent the russian economy is on higher energy prices. 60% of russia's exports are effectively oil to other parts of the world i put the question to mr. coston that this is a benefit for the russian economy, although he said this wasn't the way the russians would have liked to have seen support for the economy. let's listen to what he had to say to me. >> we are, of course, against any in general and against the new sanctions imposed on iran. we think the sanctions are a damaging thing they are not for international,

and they are a decision of the american government. to tell you more, in 2006, i was visiting washington, at imf meeting, and i mete met people in the state department, and they said, please, work with iran we are removing all sanctions. please open accounts with iranian banks as a green light now. fortunately, i was not so very much in a hurry to do this, but now many businessmen invested money in business in iran, and then the change in administration and america say no, no, no, it's you will awrong let's stop all relations with iran >> it's damaging for the business in russia and many european companies as well this measure at the moment helps to stabilize or even increase the oil prices, and russian budget benefits from this. that's not the kind of benefit we would like to see, frankly speaking he with like a stable economy, stable economic and political relationship and stable oil

prices. vladimir now the new president of ukraine from the weekend. again, i asked the chairman and president of vtb bank whether he felt that this meant there was a new opportunity now for the start of a new relationship with kiev and ukraine >> many people see him as a new generation of politicians who really wants to change things in

ukraine, who want to establish peace and who is not corruptive who will bring a lot of changes to ukraine some other think he is just a puppet of one of the most vicious in you auto crane, and he will be just playing -- he will be a toy in his hands it's very early to say that. i think wreshd see at least first hundred days of the new president, but there is definitely hope. i think we very much believe in this >> just to reiterate what i said in the interview that we did much earlier this morning those remain his views, and not the views of cnbc, of course >> later on in the week we'll be talking to the central bank governor it's a key decision week on rates. we'll have that. of course, as the next 24 hours unfold, we'll learn an awful lot more about the new relationship

between russia and north korea back to you. >> after first quarter sales came in below forecasts at 3.52 billion danish crona they said the middle east was the main drag on q1 sales. it also blamed the slump on weakening demand for bioethanol. peter holk nielsen is joining us for a first on interview on these earnings mr. nielsen, thank you for joining us this morning. now, you reported organic sales growth down 4% with a down quarter negative sales goet in every dwigs division except technical and pharma not a surprise given the guidance you gave the market earlier this year, but you have narrowed your sales growth outlook for the rye mander erme

of the year. >> good morning to you, firly. >> the u.s. bioethnatural business has been, first of all, impacted by a general slowdown actually, not in demand, but in output of ethnatural, and then the last two weeks of march. >> all these businesses that are related to bioenergy has been affected by these things that has taken us by surprise. that is really the main deviation from what we said in january. that's all about u.s.

bioethanol. sfwhoo can we with expect to see a turnaround >> we're not expecting it. what we are calling out is really the fact that we have quite a bit of sales to iran in the first quarter of last year we also had some in the second quarter only to see that all stop as we got into the second half of 2018.

some might get to impact and some would be in a positive way if the american and chinese were to agree to lower the tariff on ethanol. that's going into china. that would increase the demand for ethanol in the u.s., and then support our business. we do not expect it to ease a lot over the year. >> earlier this month you announced that you would be ending your exclusive partnership with mondsanto. did this have anything to do with the fact that monsanto is embroiled in thousands of cases around its weed killer roundup >> no, it does not i'm happy that by far most of

our businesses in bio is still done with bayer. the majority of our research in that space is also done with bayer. there are a couple areas where we think there's a better option, and we've been able to negotiate that. in many ways the solution that is we are presenting to the markets with bayer and the partners of bayer is to find solutions to a key benefits, but with no impact on the environment. >> very briefly this week, lots of excitement in the oil markets. what is higher oil mean for you?

>> it's good for a company that lives from selling more for less >> excellent thank you for joining us peter holk nielsen, ceo of novazymes yesterday a record-setting day for the s&p and nabs we're looking at a slightly weaker start now with all three major indexes pointing to a drop at the open. the dow 24 points lower. well, that is it for today's show i'm juliana. worldwide exchange coming up next

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zbliefrmt it is 5:00 a.m. here on cnbc, and here's your top five at 5:00 break out the old rally caps the u.s. markets hitting new record highs, but how much longer can this rally really run, and what is the single biggest threat right now schwab's jeff is here and lays it all out snap pops and then drops the company reporting a monster quarter, so why did the big gains disappear?