. well, happy friday welcome to "street signs." >> these your headlines. >> hitting record highs. the german sports brand the first quarter profit estimates were beat despite slowing sales growth beyonce's signing has created -- >> we continue to expect strong economic growth and strong growth in china and over time as soon as we sort out the issues also in the u.s.

in addition, of course, with the signing of beyonce, in addition to kanye west, we believe we have a dream team. >> having the capacity to disto look at this, but then it's not -- they report a wideerning loss in the first quarter on higher fuel kosds and fierce competition. >> and even more withdrawal. his candidacy for a seat on the fed board the second president trump's picks to rule some of that in contention amid political pressure

>> well, good morning. happy friday again, it is friday payroll day in the u.s all eyes on the nfc number coming up later. the expectations probably going to get close to what we had back in march 195,000. all eyes on the unemployment rate and the average hourly earnings that's the big focus ahead u.s. markets yesterday close a little down at the dow closed about half a percentage point weaker the s&p about .2% weaker still crucially above that 2,900 mark overnight, though, asia seems pretty muted china holiday. japan as well. the indexes there really traded in somewhat of a tight range overall in europe you can see the pictures pretty much flip 50-50 between red and green. stock europe 600 already up about .2%. mute reasonable doubt gains at the start of the session in terms of macroand europe, today you want to watch out for the euro zone inflation numbers. they come out in an hour's time.

we're expected to see an uptick on both headline and -- keep if mind there are some seasonality effects there due to the timing of easter. don't read too much into that bounce in inflation. plus, let's move on, though, and talk about some of the individual boards. starting off with the u.k. obviously, we are getting the results of the -- yesterday's local election still very much coming out so far it appears as though the two main parties conservative and labor, have indeed lost both to the smaller parties analysts are looking ahead and reading through the tea leaves as to what that would mean and implications on the european elections if the u.k. goes up for them in temz of the names, though, one of the thaipgz thames near looking at is april p.c. that one is right at the top the dax. cac up a similar amount as well. muted gains, too let's talk about sectors, though we've had a lot of earnings come out today. particularly in banks. banks are right up at the top

there. we'll get into that shortly. household goods also up almost 1% already. all in all a muted start with indexes traegd slightly up to the green. >> one of the big movers this morning has been adidas. shares have hit a record high after the german firm beat first quarter profit forecasts despite a slowdown in sales growth the sports brand said sales declined in europe while its north american market suffered from problems with its yj. he expected sales to pick up further in the second half of the year >> the issue we have right now, the chance we have right now is that we can't really supply the market we are in a situation where the

demand is it higher than the supply we believe what you are seeing right now is a temporary position, and we have consistently said we'll see an acceleration of our growth rate. by the end of the year to make sure we come in at the behind of our guidance between 5% and 8% the banks 2018 profit missed expectations amid slowing growth and its two markets of china britain has warned it might have to delay some investments.

that offset a 26% decline, and its weakness at the bank corporate and investment banking units. they also said overall revenues had dipped more than 1.5%. now, our colleagues is live in paris this morning juliana, i have to ask you, just looking at some of the challenges ahead, clearly their focus has been on selling off non-core parts of the business, and indeed, there has been something to that effect over the last quarter or so what more can you tell us? >> good morning. well, yes, absolutely. stock gen is in the process of restructuring their business to a large degree, and today the real key for investors is this capital position they have increased their share from 11.2% from 11.7%. some of that improvement has come on the back of the restructuring of their global markets business in particular

where they have overall this was slielt better than the market had feared trading revenues also weaker again this quarter you'll remember, at the end of 2018 they were forced to give a profit warning because of the trading revenues they took a real hit on the back of the extreme market volatility we saw at the end of last year they are seeing weakness continue down 16% on revenues equities down about 5% the key today for investors is no doubt this capital -- this capital improvement that they have posted.

i asked if he is taking any position >> our profit has remained pretty -- double digit figures with 10.4% profitability is fine. the volumes of credit. as i said, the positive thing this first quarter is the stabilization of the net margin, and this is the most important. >> president macron is looking to rebot his pregnancy after months of protests here in france he made some concessions, but he, overall, is really vowing to stay on course with his reform agenda do you believe that's possible at this point?

>> i believe so. i think it's important we need reforms in this country, and i think that the fact that the economy is doing pretty well, and the investments remain pretty resolute. >> i think it's important to preserve the confidence of the business community and to be consistent at the same time he has made announcements to correct certain decisions or to take into account certain populations which i think would preserve the social unity of the country, and i think it's important if you want also a country to move forward to avoid too big gap between the different categories of population. >> there was the ceo of stock gen surrounding relatively optimistic when it comes to france they are seeing some kind of stabilization in their french retail banking business.

today they have offered a detailed road map from where they are today to where they want to be in 2020 this is crucial because execution risk is considered to be pretty high when it comes to stock gen for investors. >> air france klm to a heavy offensive quarter loss the european carrier still reiterated its full year guidance, and said capacity in the second half of the year should help reverse a full in unit revenue during the first quarter. weaker growth in room

revenue for the first quarter. the british owner blamed the slowdown on growth in greece or china, but it reported increased amount in latin america and the caribbean. >> coming up on the show, president trump latest pick for the federal research board, steven moore, withdraws his name from consideration amid fierce criticism. we'll have more details on that next what's a target date fund? what's a hedge fund? a mutual fund? an index fund? what should i ask my investment professional? how do i know if they're even legit? edgar? who's edgar? how do i read a 10-k? what about fees? what's an etf? 529 plan? 401(k)? how do we plan for retirement? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

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stephen moore has withdrawn his name from consideration for a seat on the federal reserve board after weeks of controversy. herbert cain dropped out in april. moore faced a wall of bipartisan criticism for his views on women as well as some previously published comments about former president obama.

president trump described moore as a truly fine person citigroup ceo told cnbc yesterday that he backed the fed policy >> we have the s&p at a high we just posted 3.2% growth i don't know how you cut rates in that environment. right? one is putting credibility back in the balance sheet we don't see in the near term, and at some point we will be in a recession. we want a balance sheet that's credible we want rates in a position where the fed has the ability to act and stimulate the economy. >> here's a number of -- here

are the interviews we look at stanford university at 14:30 cet. our colleague will also seek mike pence that's coming up at 13:30. 16:30 cet. march added -- is expected to be remaining 3.3% experts show hourly earnings rose 0.3% from last month, but let's bring in nick ford, an investment manager who can help us make sense of what to look for with today with the numbers. 180,000 is pretty much in line with the average over the last couple of months is it fair to say that the market will be more focused on inflation numbers, the average hourly earnings trend e trend and the unemployment rate as

opposed to the headline number today? the year before comes out the government has a lot of people to prepare lists and so forth. you can actually see up to 2010 to 120,000 government. i think in terms of the key that everyone looks at, particularly on the investment side, is the wage inflation and the average earnings figures the fed probably will be happy with slightly more than that percent, skplt fed may see more inflation, and there are

concerns about deflation we've been expecting a 3.2%. what might surprise you on the down side is the fact that there's still quite a lot of slack in the economy >> that's going to show up in the unemployment numbers this is a metric that's so often associated with markets that today, especially in light of the meeting on wednesday, the unemployment rate is supposed to be even more more important than ever there is a signal as to whether or not there is extra capacity in the economy, and if that rate does tick lower, then better rights and being patient and seeing whether or not this is going to lead to inflation rather than making premature decisions from now on. >> i think the unemployment rate normally goes down about .1% per 100,000 jobs created.

>> we've had 3.2% gdp. adp figures, they were actually much stronger than expected. historically when you have had good adp payroll number, the nfps are coming even stronger than that. a particularly strong number might alarm inflation -- >> if you were to pull up the show and drop down your chart, look at the economic cycle in the past, and look at jobless numbers as to the kind of those we're seeing now, you would, i understand, tend to see a recession not too far around the corner how much do you think that has been weighing on policymakers' minds at the fed

>> i think you have made a very good point there historically when you get to these kind of low levels on unemployment, you're not that far away maybe 15, 18 months from a recession. you look at historical patterns. i think that is weighing on people's minds, and it will keep the fed erring on the side of caution. i think they have a problem that we prefer to see and going a little more gang busters and to risk a downturn and maybe letting in deflation getting to the system >> this is -- >> at the moment i think that's -- we just might see a macrorather than forkers let's see what the numbers are like today particularly focused on this

average hourly earnings figure this will be the big clue as to whether that is the right call >> nick, we'll leave it there. thank you very much for joining us on eye street signs." that was nick ford, investment manager from mightan back on this side of the atlantic, jean claude junker has accused germany, austria, and the netherlands of blocking further euro zone sbeg las vegas. the president told the german newspaper that there had been "no progress" in the creation of a deeper monetary union because of resistance from those two countries. junker separately raised the possibility of an issue in the near future, but said it would take another form. meanwhile, italy's deputy prime minister has made a pitch the hungarian party to join his far right political alliance the two leaders had met in budapest ahead of this month's european parliamentary election. the party was kicked out of the center right people's party block in march

although he does not give any concrete commitment other than to warn the epp that he would find it difficult to support the group if it aligned itself with lesser forces on migration issues leaders of the european parliament's four biggest blocks vying for the submission presidencies, they locked horns in florence last night manford weber from the socialist party, eva hostad and star keller from the green. they all sparred over an array of issues, including a european army and taxation levels how exactly did the selection work >> the idea is that every party in the european parliament, the next one person that should become the next president of the european commission, and so depending on the result of the european election, the party that has the majority of the votes gets to appoint that

person however, there's no consensus about this selection process some countries are against it, and it's not officially in the wrong. it could see the european council deciding for another person instead of the four candidates we heard from yesterday. we know, for instance, that the call is not very happy with its election process, and if indeed when they get together to decide who is the next president of the european commission, it's important to bear in mind that we need to support the 16 out of the 28 european countries. >> something that struck me about the debate yesterday, obviously they're represented through the four largest blocks, but notably absent any representation from the far right parties. >> yes >> i mean, what is the significance of that in your view >> the idea is for the banks to have the candidates that are putting themselves forward through the speech and candidates process, and the far

right party, none of them have actually put someone forward, and that's why we're going to hear from them -- we didn't hear from them yesterday. it's important to note that they are trying to get together to form a common position we saw salveni in hungary trying to get victor orbin's support after the yurp even election. >> they've also got sticking points >> actually, i would say that the biggest highlight was when it comes to taxation we heard from, for instance, frank zimmerman, the socialist candidate, playing clear remarks that they should go after the big tech companies listen >> it is unbearable that big companies are making billions of profits in europe and paying no

tacks. we need to change that immediately. we need to make sure that the incomes in the middle classes go up and to go up quickly. we need to make sure that we have a rebirth of solidarity at the european level >> today european union doesn't exist. it's still a consideration of nation states. that is mainly deciding by union nimty, and it's always acting too little too late. for example, a financial crisis at the other side of the atlantic ocean the next five years, it's not about to change a little bit, a little bit that. there will be a time slot of five years to really change this nature, character of european units and to make it a real one.

>> let's keep monitoring the debate in europe in the coming weeks. it's important to remain aware that the big vote is happening in three weeks time. >> absolutely. an exciting couple of weeks coming up. yeah keeping an eye on that one >> also coming up on the show, more imminently, amazon receives a boost after one of the world's richest men have have a stake in the terk firm. find out who any guesses? after the break. you need to buy a car and you want to get an excellent price you'd think with all these options

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>> we continue to expect strong growth in addition, of course, with the

signing of beyonce, in addition to kanye west, we believe we have a dream team off the pitch also >> shares in hsbc and -- rise as both banks beat first quarter profit expectations amid consolidation pressure in the sector stock gen ceo tells cnbc the time is not right for a deal >> wrept to get ready in the position of strength having completed the refocussing, the capital ratio, so having the capacity if it makes sense to look at this, but it's premature. >> stephen moore withdraws his candidacy. the second of president trump's pick to rule themselves out of contention under political pressure.

>> 50.4. that's against march's number of 48.9 very slightly below the routeders expecting of 50.5. services pmi new orders. they come in at 49 versus the march number of 48.4 that is the longest run of readings under the number 50 since 2009 markets say that april pmis are consistent with the u.k. economy stagnating the all sector pmi for april has come in the u.k. at 50.9 that's against the march number of 50.0. obviously, the services industry are very, very big part of the u.k. economy, but it looks like things not as rosy as they might be a bit of a recovery, though, based on that extended deadline for brexit you can see what's happening there. sterling, it is weakening

slightly against the dollar, and can you take a look at some of the other currencies to watch? >> i can i can. take a look at the other currency figures just actually let's start with the cable bill, and you can see that cable has dropped it's interesting the services number, we did have the bank of england beating quarterly inflation reports, and there the bank upgraded their forecast for q1, downgraded requests2, and we're going to see the first signs. it kind of makes sense that we're getting a bit of a give-back from the stronger numbers. 111.60 we've been around here at a tight range in europe for a while now. all eyes on the macrofront on those inflation numbers coming up at half an hour's time. a little movement in dollar-yen.

yappan is out before holiday dollar ftse more strength. right at the top of the ftse bucket is hsbc, and the bank will get much better than expected earnings for the second quarter. given the sector a bit of a boost. also, some of the mining names are performing well today. dax up 4%. we talked about adidas earlier those shares are up around 7%. >> the payroll trends are coming up in two hour's time. the dow is opening up about 60 points higher where, s&p about nine points higher

crucially s&p is still above that 2,900 mark. all eyes really will be on the headline trends. more so as well on average hourly earnings. whether we get more inflationary signs or whether or not the low inflation trends are transient more clues coming up later today. >> a mixture of bonds and shares ceo elan musk says he intends to buy around $10 million worth of stock in an investor call musk said autonomous driving will give the firm a $500 billion market cap tesla's factory as the machine distills -- the machine for visual tour inside the site located in the state of nevada head on-line to cnbc.com.

>> as shares have traded higher in after hours >> stamp of approval turkish inflation growth has slowed in april. clothing and transportation prices fell. the economy is currently in a recession after a fund in the lyra back in 2018. we're squoind joint this morning by -- a chief financial officer. thanks so much for being with us >> the entire business community is looking for a slowdown and rebalancing. the second and third quarter of last year, and they are going

through this process >> how the banking sector holding up from your perspective? >> turk irk banks are very, very strong they decent capital bufrz. over all the liquidity environment is -- i'm not as much concerned there have been plans to move some of the bad loans into different parts of the economy we will see how that planned progress is especially in the construction and energy sector i know that people are working on details over the next couple of months, we should see some progression on the move of the loans to a different part of the economy. on zploo how has the -- it's been a rough ride for the last year or so particularly in the last couple

of runs. >> i'm interested in how it's affecting you. >> 2018 was a phenomenal year for us we had tough sanctions goet growth in our country. it grew by 30% it grew by 40% on the nonbank side on top of that our big cash flow generation was 91% turkish corporate did quite well we better look at the other korpts in turkey their size increased by 31%, and their net income has increased by 27% >> is that namely because much the weaker currency because it's helping you? what is the catalyst rs then everything you hear about is that the turk irk economy is struggling inflation is out of control. this currency has been very

volatile what has been the driver then why are all the corporates in turkey doing so well? p. >> we don't carry -- we have not been carrying a position for the last five years. we have been very rigorous, and managing our exposure. by the early 2017 our metrics, we have changed our metrics to cash flow generation over net income >> we seen nothing but support there's an expectation of higher growth in the long-term. >> is that the sign that you are

more trying to diversify your business away from turkey. >> we had been investing in the composite space, and this applies into aerospace there's limited aerospace in turkey right now, and the jrt of that business, if you look at the u.s., as in southern california, last year they had acquired three businesses in composite space last year. we have been solidifying our position in europe and the americas, and we have also one coming up in houston to fortify our global leadership position in the space flow in the western world. on top of that we had been investing in the great in turkey and looking forward to expanding our renewal in turkey.

wherever the customers are, we are moving in line with our target where the customers are the composite, overseas, energy, local. >> would you say that they refocused on the trade tariffs, and the e.u. has served to benefit the company as well, because at the end of the day the u.s. will be looking for alternative sources of some of the imports, and turkey is one of them? >> yes we have been supplying in the u.s. different types of products in fact, our u.s. operations has been doing better than anticipated this year. i would say europe is also holding up quite well. maybe because our cost position is decent. asia has been struggling south america is doing okay. i can tell you directly that the tariffs in the u.s. having been caused by trump has really helped >> interesting we're going to leave it there. thank you for coming on our

show now, elsewhere in the u.s., the speaker of the house, nancy pelosi, has accused attorney general william barr of committing a crime by lying to congress barr refused to testify before the house judiciary committee. he halle jackson reports. rirjts house democrats aiming their anger at an empty chair rather than the attorney general. >> mr. barr's moment of accountability will come soon enough >> reporter: one lawmaker even bringing a bucket of kfc >> what is the message you are trying to second >> democrats had made that highly usual deunderstand. republicans deriding the whole thing as theater >> really? i mean, can you honestly say you're serious about this or is this like a circus and a political tool to cause you loss >> barr now runs of risk of

being held in contempt of congress for not cooperating with lawmakers' request. even if that happens, it wouldn't have much teeth just ask eric holder, who was also held in contempt during the obama administration the attorney general of the united states of america was not tell the truth that's a crime >> speaker nancy pelosi is referring to an exchange several weeks ago when barr was asked about reports the special counsel's team was worried about how barr described their findings >> do you know what they're referencing with that? >> no, i don't i think -- i suspect that they probably wanted, you know, more put out. >> it turns out days earlier barr had received this letter from robert mueller expressing his concern. the justice department following pelosi's comment a baseless attack that's reckless, irresponsible and false. the president late tonight on fox news

>> nobody has ever done what i have done. i have given total transparency. it's never happened before like this >> congress should be -- congress should be -- >> this is all it's done. >> that was nbc news's hadley jackson reporting there. now, back here in the u.k., britain's ruling conservatives and the opposition labour party, they look set to lose hundreds of council seats across the country in local elections that's as voters spoke to the ballot box to express their anger over the brexit delays according to the bbc, prime minister theresa may's tories have lost 442 counsellors so far, while labour has lost 79. the pro-european liberal democrats, meanwhile, have gained 304 counsellors also, coming up next on the show, we'll be speaking to another ceo lawrence jorgenson as the data does have a beat on first quarter operating profit >> plus, on the line as boxers

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welcome back first quarter net profit at the insurance giant has fallen by over 6%. the reinsurance had claims from natural and man made disasters, including the floods in northern queensland as well as the ethiopian airlines crash to offset a rise in net premiums. the company added it would launch the first transfer of shares buyback plan at the beginning of next week elsewhere they supported better than expected first quarter operating profit and sales. the danish drugmaker -- it is on track to deliver its target. it's great to have you with us today. on a day when you clearly beat britain's market expectations, i want to ask you, though.

i'm curious in this split internationally between the u.s. and the other markets. can you break that down for us >> yes thank you for having me. we see a very strong growth outside of the u.s. where our business is growing by 13%, and it's really driven by the portfolio of our product by pharma, and also products, and its mark is all contributing so we are very, very positive on our business outside of north america. can you talk us through how things are looking in the u.s. right now? >> there's one simply said once weekly injection, ask it's doing really, really well.

>> the canadian referred tro, and we are on track to launch our next upgrade of that product jo do you think you're getting good bang for your buck there? >> i think for the oil factor, it's that we have seen our price going down since 2015. when you have a situation where patients increasingly have to pay more, i think it's important to look at the total supply chain, and we gave last year

around $17 billion, $18 billion in the u.s. in rebates it's important that those rebates go to the patients, benefit the patients, and that's one of the proposals that's been paid made. is there a kirn soar should there be a concern among shareholders, but at some point people in the developed world in particular are going to be sliegs more conscious about their health, and you're going to have a lot less incident when it comes to the type 2 diabetes, and -- >> already now in obesity, so we are actually seeing an obesity franchise that's growing by more than 50%

sfa we announce thad -- we believe that there's significant opportunity in brooufg health and preventing diabetes by dealing with obesity, and we believe he we have a good position in actually driving that >> what type of concernscan we be looking at on obesity business >> the revenue from that part of your business grew of 0% what can we expect in coming kroerz do you have targets? >> well, if it's 50% and 1% here in the first quarter we do not disclose targets only for obesity, but it's clear that 650 million people in the world with the pmi of 30 off, and that's 50% more than those that are diabetes we believe that we can buy educating physicians understanding the importance of treating obesity, and this is a disease that we can both help patients and we can lower he health care costs in society.

>> does that give you natural edge versus others >> you are right we teamed up with gillead in the area of -- this is a new area for us we have, we believe, a very strong medicine being -- they have a lot for finesse in the form of -- we would like to team up with gillead because they have interesting molecules in the way, and ipts a difficult area it's a difficult thing to diagnose without having to do a liver buy opsy a lot of companies join forces to do clinical development to

research together, but also find easier ways to identify these patients. >> three of the four middleweight world boxing titles will be going on tomorrow night in vegas when alvarez takes on daniel jacobs in what's being billed as 2019's first super fight. of course, adam reed joins us with a bit of a preview on presuming based on the fact that three out of four belts that state that there's a little bit of money involved there. >> just a little bit yes. well, alvarez is basically signed to his own. to zone the streaming service in america. basically here, actually, in the u.k.

fronted by john skipper, the former ceo of espn. >> a lot of money on the line for this fight, and the banking on the fact that this is going to be a big pay-per-view draw. they don't generally release numbers. much like the traditional broadcasters do, but they're hoping that because the pricing structure has been so revolutionary, initially $9.99 per month for premium boxing throughout the year, other

sports as well, they've actually changed that now, and it's $19.99 per month in this state, and it's part of $100. that's still considerably less than hbo, showtime, and pay-per-view was -- prices were being charged. and these are two big fighters canella in particular. both fighters have been talking up their chances of winning this fight. we are not really surprised considering they're both champions. >> this is the opportunity of a lifetime for me, and i'm mostly excited to get in there to show the world that i am the best middleweight of my generation. i've been saying it all the while, but now i finally have an opportunity to prove it. >> i'm a fighter of all the styles what he brings on saturday night is going to elicit a reaction in me as well as whatever you can bring. >> it adds a little bit of

dimension for us >> can elia alvarez always fights cinco de mayo weekend a huge event ends up being taken over by mexican in las vegas as well floyd mayweather was a big fan of fighting on cinco de mayo, and as the opponent mentioned, it's also a mexican first on madison square garden where zbloosh that i think so for giving us the preview. >> cinco de mayo celebration quick look at u.s. before we head out s&p, dow, nasdaq all seeing e seen opening up more -- all eyes coming up later today. that is it for today's happy friday show. worldwide exchange is coming up in just a few moments time

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>> we've got big breaking news on amazon. warren buffett telling biky quick that brookshire hataway has been buying amazon stock you will hear from warren buffett coming up later on in the show a sizzling debut we'll find out what's driving wall street's insatiable appetite for that meatless stock. we count you down to the big jobs number. we'll break down the key numbers inside of it that you need t