. welcome to street signs. >> these your headlines. the british supermarket ramps up investment and cuts cost kevin o'brian said they were -- by collapse in talks >> there was a high probability that this deal could be done and, you know, the management team are just getting on with running the business in what is, as you said, a challenging

market >> per simeon stocks sink as the british homebuilder warns costs are set to increase by 4% this year while revenue from upcoming sales will be lower. apple spikes in extended trade as stronger demand for services helps offset declining iphone revenues and the tech giant delivers a new $75 billion buy-back plan. >> knee deployed 85% of it the government is really great the equity performance is amazing.

zbrierjts welcome to "street signs," everybody. the only index that we're looking at really in europe is the ftse 100 that is the picture right behind me it's pretty much across the board. overall the index is up about .3%. big couple of days for u.k. data we have pmi manufacturing numbers in half an hour's time we have the bank of england tomorrow don't forget about that. some people are saying perhaps this time it's more hawkish tone coming out of governor carney. watch out for that knees e these are some of the names in the u.k. index. obviously, we're right in the middle of earnings season. going to talk about some of the names that have the flag out today. in general, though, all eyes on the macro-spectrum are on the fed meeting that is later this evening.

one stock in particular we want to talk about is sansbury. they have a better than expected rise in pretax profits despite a slide in like-for-like sales they vowed to raise investment into the retail technology after its proposed merger with rival was blocked by the u.k.'s competition watchdog now, the cfo kevin o'byron told cnbc he was disappointed by the merger breakdown >> clearly we were disappointed with the outcome from the cma review we had clearly done a lot of work on the proposed transaction. the result, the conclusion from the cma that's a combined would increase prices, reduce service, extend cues, et cetera from what is one of the most competitive grocery markets in the world and customers wouldn't go down the world. it's not a market we recognize,

but we move on, and we're delighted today to issue our results for the year to march 19 whereas we mentioned underlying profits were up 8% free cash flow was up 7% we've decreased the dividend, and we've continued to reduce our net debt by over $200 million and continued to reduce it by a further $600 million it's in robust financial strength >> it's been a big week for tech stocks with a number of major earnings coming through. one in particular in europe i want to highlight, ams yesterday closed more than 20% higher after the austrian chip maker offered optimistic guidance for its second quarter on the back of increased demand from android's smartphones the apple supplier also said it expects revenues between $390 million to $430 million. now, speaking to cnbc earlier this morning, ceo alexander evert detailed the issues facing the company in asia. >> we are focussing ourselves on

what we can control, and many other asian customers are very good customers of us, very innovative companies, and together with them we create solutions which does not exist in the market today. apple shares rose after a slide in the second quarter but met expectations revenuefor the period also bea wall street forecasts despite a 5% drop compared to the previous year now, the iphone maker was boosted by signs that a slowdown in china was easing as well as a strong performance in the apps and music streaming services now, elizabeth schultz here, our tech reporter joins us around the desk with more yesterday, when you were joining us, we were discussing alphabet and the negative share price reaction we saw in response to their earnings report.

there was a beat on the top and bottom line for apple's second fiscal quarter, but it's looking like that $75 billion buyback announcement is contributing for a lot of these gains in extended hours so far analysts are also pointing to the guidance for the fiscal quarter which did come in at $1.5 billion above kpngss at kind of the midpoint of the range there. apple now expecting revenues between $52.5 billion and $54.5 billion next quarter it's saying a lot of that is coming from a better outlook for china. we know that china has been a sore subject for this company, which, of course, lowered its guidance earlier last quarter because of that, but we are continuing to see weakness in iphone sales overall we did see iphone sales drop 17% last quarter, and instead, apple saying let's focus on our services revenue, which is growing at double digits >> let's talk about that decline in iphone sales.

revenue as its percentage of total sales now down 53.5% is this an apple problem or a smartphone problem >> so we've heard about the solid smartphone market from several other companies. not least among them samsung, which is the word's biggest smartphone seller. there is new data out today, once all the companies have reported this kind of research firms put out their latest estimates, and interestingly, we did see one firm surge in sales in the first quarter and that was huawei their ship wants were up 50% while apple, samsung shares declined it's interesting with what's happening there. >> just to pick up on that point, we've talked about this a lot and the transition of these companies away from traditional hardware makers towards software and that's something that amazon is doing, apple is doing as well clearly, services is the biggest growing part of their business, but then looking at the traditional business model, in order for them to come up with this positive guidance, they said that they've had to introduce emerging market price cuts they've had to introduce

incentives, trade and financing offers to get the smart phones off the shelves. even though the market is reacting positively to the guidance, there are a few warnings signs in there where. >> kim cook was not shy about saying that the trade-in programs and incentives accounted for the boost in sales this quarter that is clearly one of the reasons that helped the smartphone market particularly in china analysts are generally bullish on this services outlook, and that seems to just be from the fact that this is a high margin business they think that apple can bring in the customers because it has this $1.4 billion installed base, meaning they're already at more than a billion people in the world that have their products it might be easier to get them into the full ecosystem as a services company as well >> excellent thank you for breaking it down for us we'll keep an eye on how apple trades on the open later today speaking of the u.s., in the last few minutes the u.s. treasury secretary steven mnuchin has tweeted "ambassador lighthizer and i just completed

productive meetings with china's vice premier we'll continue our talks in washington d.c. next week. clearly something another sign post for markets over the next couple ofee e weeks. people are eagerly anticipating some form of resolution when it comes to the trade discussions between china and the u.s. some positive signs there out of the treasury secretary now, switching to corporate news, though in the u.k., fewer reservations in 2019 have led persimemon. the lsc has reported a rise in quarterly earnings off the back of strength and it's clearing an information services union et. it hailed what it said was a good performance against a challenging market back drop and flagged that while -- the listening environment has improved during the current quarter. also coming up on our show, the

managing director of saudi arabia's public investment fund backs the leadership at soft bank in an exclusive interview with cnbc. stay with us unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions and lung inflammation can occur. talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®.

uber has taken its investor road show to new york ahead of its hotly anticipated ipo. the ride-sharing firm is aiming for a valuation of between $80.5 to $95.1 billion according to multiple reports the ceo was quizzed about the firm's stalling growth by potential investors in new york. >> meanwhile, the managing director public investment fund has backed soft bank's ceo hailing the performance of the fund in an exclusive interview with cnbc. the managing director of saudi arabia's public investment fund, that's their sovereign wealth.

they're hoping by 2030 that they're going to increase that number to as much as $2 trillion i asked him, are you happy with soft bank? there are a lot of rumors, a lot of reports in the press that lot of other people aren't so happy. what did he tell me? listen in. >> have i today's $300 billion in 2015 we're at 150 that's a commitment of $45 billion, and they have deployed almost 80%, 85% of it. the performance so far is really great. the equity performance is amazing, and they've entered in some of the investments, and they exited some of the investments, which is demonstrated in the performance of the fund. >> several reports, though, that

individual investors are concerned about the leadership there. any sense they feel like as they put soft bank ahead of the vision fund in terms of concentration? how do you respond to that >> when we started negotiating the terms, it took ig, like, nine months to negotiate the terms. >> so you self-protected >> so it was, leak, we committed $45 billion in 45 minutes, but the terms of negotiation took us nine months. part of the terms of negotiation was the relationship between soft bank and soft bank -- we have like a threshold for investment anything above a certain amount, i think, it's $500 million goes to soft bank vision fund, and i think less can be held at the soft bank. the governance in there after our negotiation, i think, to a

large ebs tent it's really mitigating most of the risks that people are talking about. they're looking to china and russia as well this, of course, as you know, a whole host of geopolitical concerns as well now, here at the milken institute conference over the last couple of days, eve had the chance to check up with a lot of leaders from the region. a lot of people that i see on a regular basis at conferences just like this one, but the conversation really has moved the dial forward in the sense that there's a growing recognition that as the uae and saudi arabia, among others, get closer and closer to countries like china, thatco create some waves in washington. i had the chance to catch up with the aue's ambassador to washington, and i asked him about that listen in.

>> we don't look at china as a threat trying to get our colleagues to understand that we want to do business with the united states and the united states is one of our most if not our most important strategic ally, but we want to do business with china, and we want to make sure those two don't conflict this is going to be increasingly difficult to issue to navigate in the future the way i see the u.s.-china >> increasingly difficult. certainly for leaders not just in the uae have said also in saudi arabia in egypt, and other middle eastern countries as well, they're not just talking to the russians, but they're talking to the chinese i had i achance to sit down in that exclusive interview what the public investment fund i asked him very specifically about where he is looking for returns, how excited he is about china. he said, you know, i still don't know that much about china i've been there four or five times. we've continued to go there in the future, but we are planning to open an office in asia with i a focus on chooirn lisp in.

>> we open up in new york and london, san francisco. >> we see potential over there >> as it trched to move the dial, guys, we talk about the shift eastward of investment not just obviously from the gulf arab countries but the broader region as well, and as much as there is excitement about putting money to work, certainly you remember that, of course, much wanted fund with steve schwarzman was going to invest in the united states to the tune of $1 00 billion still a lot of questions about the regulatory framework that's going to be required to do that. whether congress is going to get involved there, they were telling me yesterday just a few hours ago, the days run together, guys, there was still a lot of excitement about that, and they were still planning on putting that money to work there have been no change, for example, in their plans to put that money to work in the united states, but obviously this shift

eastward continues they are going to continue to be a lot of questions, and that brings up the geopolitics. oil, energy, geopolitics, and then politics of investigate, goiz, they go hand in hand in the middle east wrrks. >> i think you love it all right. excellent. let's talk about some of the price action in markets. talking about putting money to work, actually starting off with the s&p 500 here, you can see that for the month of april, we actually are up almost 4% for the year as a total. s&p is up 17.5%. just to give you a little bit of context, though, this is the fourth positive month in a row this is the first time since the six-month positive streak since september 2018 very strong start to the year, and we're seeing that, obviously, in u.s. equities. moving on it other u.s. equities the dow, obviously, the blue chips. 26,000, just shy of 600 there, and that is the mark yesterday muted gains. again, for the month of april, we are up 2.5% for the year.

the nasdaq is leading the charnl, and almost 23% up year-to-date just in terms of overall sectors, though, i want to point out in the u.s. that, yes, of course, the tech sector has done well tech is up 27% year-to-date, but other sect ors have also done well communications is up 21% consumer discretionary also up 22%. a good start to the year as well up 17.5% as well january, february, huge, huge months shanghai composite for the month of april it happened in the last

couple of trading weeks where this index lost 6% yoer-to-date. we're talking gains of 23% for shanghai composite yes, wasn't such a great april especially towards the end, though we're still looking at gains for the year, and we're only four, five months in. that shanghai composite. switching to shen zen, which is a bit more volatile. that index was down 3.5% for the month of april refracturing some of the weaker performance we had for chinese equities overall, but you can see, again, there was a similar magnitudes, really, towards the end of april, but for the year shen zen is globally the best performing index up 29% i had to look at these earlier shenzhen the greek index is in the middle shanghai up 23%.

investors trade some of the holdings as you mentioned, very good start to the year. very strong start to the year for u.s. equities, global equities, but the past couple of weeks, there has been a little bit of nervousness in these chinese markets. >> thank you very much for that update on that note, let's bring in donna kilmurray, from the investment strategy group from goldman sachs wealth it has been a roaring start to the year for equities. if i look at bonds, though, we're pricing in a rate cut in the u.s. our equities and bonds telling us different things? are they signaling something different? >> it's a good point if you look at the -- bonds are the defensive asset. if equities are roaring, you think, well, we're in a growth environment. if bonds, you think we're in a defense environment. one thing we haven't put in the mix here, and that's inflation that's what's driving.

this is what gives us an equities idea of goldilocks, which is above foeshl growth and below target inflation, and that was a good environment of stocks the flip side for bonds, you have, well, if inflation is below target, the fed won't move therefore, it's good for bonds too. as to the rate cuts, we will be surprised at this point given the strength of the economy that a rate cut would really happen this year. it's not impossible, but if he was more likely at some point in the next year or two, you might see a rate hike. we're quite a way from that yet. if there is a trade rez lurks would that still be a positive surprise >> it would be positive. i wouldn't dahl a surprise.

at least they stopped the tit for tat tariffs. >> just looking at the price action, the last couple of weeks for -- of april for these chinese equity markets were a bit hairy. people are certainly beginning to trim some positions, but we're not seeing that so much in u.s. equities. you think that is a sign of things to come because this was clear market that got quite overheated in the first couple of months of the year. you know, if you are annual liesing more than 100%, you're going to take take some chips off the table. is this a sign of things to come new they were going to worry in december that it was going to

possibly work against the growth market you have stringent policy in the last quarter or two, and finally saw the gdp number of around 6.4, which is a positive surprise, and then you had -- let's now focus on reform again. the chinese market is worried that we're going from stimulus policy to perhaps a little bit more contractionary. in the u.s. we don't see any sign of contraction policy at all. while in china it's a bit of a cooling off as the policy may fade a bit in the u.s. we don't see policy affecting things at all. >> yesterday the euro had a rare day of late, and it was actually a positive day for the euro. we saw euro zone gdp top estimates and inflation come through higher than we've seen in the past for a number of those regions. what are investors thinking in emds it of positioning in europe right now? >> european uses good news, and there was a positive outcome if you look again at the u.s. and china, europe is a big export economy, and the big regions they look at for europe exports would be u.s. and china.

we were wondering when the positive news would filter into european good news it normally takes a quarter or two. snoo they're showing consumer demand europe needs to move away there this export model to some extent and have domestic groit. that's a good thing. sflo thank you very much managing director in the investment strategy group goldman sachs private wealth management >> stay with us, we're going to be talking all things fed as president trump escalates his attack on german powell ahead of the fed meeting later today. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory.

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welcome back to "street signs. these are your headlines this morning. sainsbury shares surge after they vow to ramp up investment and slash costs as it looks to push past its failed take-over bid for azda

cfo kevin o'byrne says the company was disappointed by the collapse in taks zoo this was never a dead -- it was a high probability that this deal could be done and the management team are getting on with running the business in what is, as you said, a challenging market >> president trump says the u.s. economy could go up like a rocket if the fed cuts rates ahead of the central bank's latest policy decision that is later today. apple spikes in extended trade as stronger demand for services helps offset declining iphone revenues, and the tech giant delivers a new $75 billion buy-back plan.

well, the u.k. market is trading today. we're just getting some numbers out of the u.k. that pmi manufacturing numbers just to break it down a little more. as the manufacturing pmi stock purchases came in at 58.8 versus march. obviously very high numbers. putting this all together, i would say even though we've got an optical beat, if you look at the nitty gritty, there are a few signs here, especially the

fact that overseas customers are rerouting their supply chains away from the u.k. the picture for the currency have got sterling trading up at 136.60 a quarter of a percentage point firm he or reacting well to the very minimal optimal beats on this pmi manufacturing number. >> the ftse 100 trading slightly higher this morning. about 24 basis points. this comes after an underperformance yesterday for the british bench mash a number of corporate earnings taking focus today providing a little bit of a mixed picture. we had sainsbury offering a private slump for the quarter. next, on the other hand, reporting a rise in q1 full. price sale an upbeat picture there. we also heard from lse, persimmon. a number of korpts in focus. we have u.s.-china trade still lingering on we heard from mnuchin tweeting about progress being made there. that in the back of investors'

miepds as well then the main event. globally, of course, the fed meeting which will conclude later today, and we'll look for any clues there around what may come next for the central bank looking, as you can see here, a about the of a mixed picture for the ftse 100 let's take a look at fx markets ahead of that big -- the fed release later on right now the euro trading about nine basis points high are 112.24 yesterday worth noting the dollar index retreated about 0.36%. that was its third negative session in a row, but still for the month of april, it was in positive territory the pound trading higher versus the dollar about 25 basis points above that 130 level. let's get into u.s. futures. yesterday it was a fairly mixed day for those three major indexes with the s&p and the dow posting gains, but the nasdaq bucking the trend ending 0.8% lower for its worst day in more than five weeks. now the implied open is positive if the s&p 500, the dow, the nasdaq ahead of that fed

meeting. negotiation the latest policy decision that is later today the central bank is widely expected to keep rates on hold and stick to its stance. meanwhile, trump's fed board pick steven moore is facing growing opposition from republican lawmakers senator lindsey graham said moore's nomination would be very problematic. elsewhere senator joni ernst said she would be very unlikely to back him.

thank you for joining us on this important day for the fomc your expectations for this statement today we've been hearing a lot from analysts over the last few days that anything they say will really be interpreted as hawkish given where market expectations are. >> jumana tweeted yesterday that the dovish bar was very, very high the fed is looking back at bernanke and how the bernanke

fed reacted to an economics slowdown they're trying to be anticipating slash recessions and get out in front. they really want to emphasize this inflation target really is sim et rickal so they can afford to keep rates lower for longer in the hope that inflation will be up again. >> the reaction function, that's their excuse they're going to change the target on inflation. that's kind of like the new

hurdle. they may -- they probably disappointed on the dovish side. these tweets cannot be helpful for the fed when thinking about conducting because they're in a situation now where even if they did want to turn dovish because of the change of mandate, the change of reaction function, the market would perceive them to be under political influence. >> it's the same thing in december, right? trump was tweeting, tweeting, tweeting, and a lot of people think that the december hike now, that famous december hike

that took the s&p down about 5% in the coming weeks was because of the trump tweets, but at the end of the day this is a lot like the claritta powell fed that's looking at 1994-1995, you had a preemptive hike in 1994, and then cuts in 1995. the fed is trying to -- this fed is trying to transition to the fed like that. >> the market is pricing in 25 basis point cuts for this year almost two by the he wanted of next year for the fiscal policy infrastructure, pelosi and trump talking infrastructure is the worst thing in the world for the fed because the fed is trying to pivot to the dovish side, and now they're going to get the probability of infrastructure in

america as has gone from 10% three, four, five weeks ago pre-mueller to maybe 40%, 50%, 60% now. >> the big f-word, though, financing. we'll talk about that in a bit. >> he has promised to cut taxes and implement new social reforms amid criticism of his economic agenda the new merds are expected to further increase the fiscal deficit, though, and could put france on a collision course with the european union. let's bring in sylvia now who joins us around the desk

>> the european commission to answer, but one thing is for sure, the latest set of measures that macron presented are expected to increase the country's dif sit in a way that this is likely to be above the 3% threshold of course, we know in the past we've seen italy using that as an argument in its relationship with brussels. one of the reasons being that this breach of these roles expected to happen only this year, so the deficit could come down in 2020 of course, this commission is on its waen out we know that the italian deficit is expected to be higher than what they agreed at the end of last year. we know as well that there's this potential gap in the italian budget if the government

does not go ahead with the increase in 2020 let's see how he is going to use that when he goes to brussels to talk about the country's finance. italy, there's a big flash point there because they've got this $20 billion plus hold that they have to pill in from the v.a.t s&p talked about it, the global ratings agency they flagged that for the time being they're keeping the rating on hold, but there are risks, and they still got to get their finances in order. there's a big distinction between italy and france italy's debt to gdp ratio is 100% france is still 100% you can't -- they're not apples to apples. you're starting off from a different standpoint to begin with, which is probably one of the reasons why the european commission are being a little more flexible when it comes to france finances than italy >> absolutely. that is one of the points that analysts have told me, but there's also another point that

european commission can -- and that is the fact that macron still talks about reforms. even on his labor reforms when he announced the different measures last week we don't see the same rhetoric, the same speech back in rome that is still very much a pro-spending agenda and how is going with the european commission going to respond to that? >> that is the end of the current commission on the first of november we'll have a new team, and they can have a different approach to the european union and how the countries respect the fiscal rules. >> the numbers doing better.

could macron's policies appease yellow vest protesters to drove a wedge tweep him and brussels ahead at cnbc.com for more analysis from our have own sylvia he urged the army it on back him. >> we've also got some sports updates for you coming up on the show ajax secures a crucial away goal in a first led win against tottenham in the champions league semifinal all the details after the break.

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>> ajax held on for for a 1-0 victory in the first leg of their champions league semifinal tie in london. the dutch side were boosted by a 15-minute goal from midfielder johnny vander beak the two teams will now face off in amsterdam next week shares in ajax touched an

all-time earlier this month after the club beat italy's juventus in the quarterfinal we talked about f for financing. we talk about f for football now f for fiscal we're still joined by larry mcdonald and a cnbc contributor who believes that there are six factors driving global reflags that will have substantial unintended consequences. let's start with one of them the u.s., we ended our last segment talking about the potential for an infrastructure plan coming out of the u.s obviously, that would be a huge fiscal boost can the u.s. afford it of course, we can't. >> we can or cannot? cannot the mmt, this is really crazy. i mean, i grew up in the 1990s and 2000s. the republicans were always this deficit hawk party now you are heading to the 220 election

they are going to try to force the democrats. the democrats are in a tough spot >> meanwhile, in europe one of the six global reflags forces you mentioned in your report is german fiscal spending, and for all of my fellow superman fans out there, you know that that's kryptonite on the menu what does this mean? >> in our conversations with our european counterparts and we have to spend more time in italy and want to do a trip to italy this year, but he and his team are strengthening and rising in the polls over the last year it's been an incredible almost like a rising of the phoenix,

fwut at the end of the day what germany could do here is they get together and throw a fiscal plan at this populist. you see the rise of vox and an afd in germany this is a fire this is an inferno, and the ecb is out of bullets potentially. at the end of the day you'll get a fiscal package or at least bottom line, the expectations of fiscal response of germany will rise to a substantial issue. >> i was looking at a chart for 2018 public finances comparing the euro zone to the u.s. cyclically adjusted. u.s. at 5.5% who is to say that the appetite is there

what makes you think that the germans are going to start splurging? >> let's be creative and think about 5 g. the u.s. -- this 5g is potentially $13 trillion of economic activity. what's happening with the u.s. and china around 5g, europe will be left behind there are things like that that are very embarrassing politically. i think europe is going to come together and realize they have to start opening up the bank account in germany >> all right well, we'll have to see about that see how strong the kryptonite really is.

>> the move comes after a smaller risk buffer for her the company's ring fence operations. lloyds add thad it remains strongly capital generative and expects to build 170 to 200 basis points of captain wally. reuters reports that european regulators are worried the german lender's position has worsened since it failed to test in 2015, 2016, and you may recall they failed it last year as well. another failure could compile failure on the bank and hurt confidence the fed will carry out it in the coming weeks and will have results in july. investors should turn to challenger cities as the next location for long-term investment opportunities according to -- in a new report, the real estate group says that

while the world's foremost resilient cities, that's new york, tokyo, london, and los angeles will retain the top spots through 2028, cities in china, the middle east, and india remain untapped and are rising fast. very interesting report you just put out, and in particular on these challenger cities, you've noted eight of them from regions like the middle east and asia that are poised to actually break in to those top -- those top spots over the next decade is there a common link eight challenger cities? >> yes what we're seeing with all of these eight cities is they have rising personal wealth they're seeing the economy increase fast, and really importantly, they've got favorable demographics these city remain relatively youthful >> you say that, but then you have also tokyo there, and tokyo is known for its aging

demographics how does that one -- >> take which bank is number two and has been second place for the last ten years and is forecast to remain so. >> on a forward-looking basis, how much are you taking into consideration a city's overall environmental impact because obviously, you know, with the huge surge in population growth a lot of urban dwellers nowadays, you have to think about city's environmental footprint, too how much does that factor into your analysis? >> necessity will be looking for other things environmental is one political stability, cultural attractio attractions. there's a number of other factor that is will come in to play

the only yurm even cities that are on that list of the 20 most resilient cities why aren't places like berlin or dublin or lisbon that are in high demand for certain industries making the cut? >> i think that's really interesting, and it's one of the things that i definitely noticed from the report. london and paris are quite unique, and they are the economic powerhouses of those countries. we have a look in germany. there are tent cities within germany that make it into our list.

>> there are cities that -- what these resilient cities are showing is that they are continuing to keep their place not only in terms of economic power and wealth, but also in terms of demographics. zbriefrmt now, if investors want to take the leap andinvest in challenger city in a country or region that is not as developed as places like europe what's the biggest risk in terms of the investments they could make? >> i think what we're saying is these challenger cities are for those investors looking for a risk they're not established on the world stage. they're not resilient cities already, but they present potential opportunity for those long-term investors. they are not without risk. thank you for taking the time to come and chat. that was sophie, head of world research joining us and talking

about some of the challenger cities all ahead today. we've got a challenging day ahead coming up in the u.s we've got the pmi numbers, but also that all-important fed meeting again, all eyes on appl performance today and now that it will be fully trading in the u.s. session all right. that is it for today's show. i'm jumana >> i'm -- worldwide exchange is up next.

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snoo it's 5:00 a.m. at cnbc. here's your five at 5:00 sell in may and go away. what you should be doing with your money as we gear up for a new trading month. apple popping on strong earnings venezuela at a tipple point. president trump calling for another interest rate cut ahead of today's big fed decision. we are downtowning down to uber's big ipo you'll hear from an early investor on the valuation and its path may be th