. >> well, it's been the worst week for u.s. equities all year. the roller coaster session for asian equities, but surprisingly by the end of the session we had the day up north of 3% for both shanghai and shenzen you can see that the picture in europe is pretty positive. almost all of the heat map is trading in the green today by the rumors, sell the fat. we're in one of those situations

stock euro 600 is up .3% in the early hours of trading let's switch on and break it down by individual we had a sea of green. yesterday we had a sea of red. we are recuperating some of the losses crucially not all of them just yet. ftse 100, 50 points higher .6% higher today we get the u.k.gdp print at half an hour's time expected to show an uptick to .4 periods or .5% the bank of england has .5%. it should be a support to the pound. german index up .9%. again, bit of a rebound there. price action we've had in chinese equities overnight earlier today we had german trade numbers showing the highest current account surplus in two years keep an eye on that. the u.s. still has to make a decision on section 232, the

auto tariffs in the next week or so ftse mib, the italian index staging a rebound. it's been a hard couple of days in the indexes all right. moving on and let's take a look at the sectors the breakdown here, and because little such a positive day, we have only got one sector in the red. that's a defensive sector. real estate is on .1%. right off the top, the cyclicals are doing well banks up north of 1% tech also at 1%. yesterday was a heavy day for chipmakers, and some of the tech stocks in europe were seeing a rebound there. some of the iron ore makers there. insurance also up 1% i want to turn your attention to european yields, though, and you can see that the bund, even

though we're seeing a rebound in european equities markets is still hovering at minus 5. below that stat line here, you would think with some of the positive response sentiments, the bunds would come off a little bit, but we've been hanging below that zero mark for a while. minus 5. it's actually rallied a lot when the european commission gdp forecast came out earlier in the week and has been one of the reasons it's stayed there. we're not seeing a lot of movement in other fixed income it's worth keeping an eye on that the u.s. has increased tariffs on $200 billion worth of chinese goods from 10% to 25%. the skmers ministry has warned that banaling will take counter measures against the tariff hike, but has not specified. our colleague younis yoon has filed this report from beijing >> reporter: china has punched

back after the u.s. imposed 25% tariffs on $200 billion worth of chinese goods. the chinese customers ministry today said it deeply regretted the latest tariff hike and would take necessary counter measures. no word on what those counter measures are, but the expectation is that china will retaliate in more ways than just tariffs. the customers ministry said that the talks from washington are ongoing. the white house said nlgtors wrapped up their dinner, and the discussions would resume on friday president trump met with the u.s. side for a debrief, and there was a hope that maybe president trump and president xi would delay the tariffs after president xi sent trump a letter >> i have no idea what what's going to happen. i did get a beautiful letter from president xi at the times, let's work together and see if we can get something done. they renegotiated. they took whether it's intellectual property theft, they took many, many parts of that deal ask and they renegotia renegotiated you can't do that.

i happen to think that tariffs for our country are very powerful >> the move is being seen as a vanity play by the chinese president trump and president xi are expected to hold a phone call soon, and there is still some time to possibly work out a solution the higher tariffs apply to the lead on china and not shipments at sea officials have about three weeks before the tariffs take a hefty toll younis yoon, cnbc business news. >> head of asset allocation and -- thanks so much for being with us. are you seeing that kind of movement getting their movement in and out snl. >> we are seeing that regarding

the -- also, because value on up with hand it's quite close, especially for the u.s. companies. you had this trade or particularly that choice. >> fine courses to varied courses. if the chinese delegation wake up and decide to get back on a plane to beijing or if the trump administration starts talking in more detail. they've not yet faced tariffs. what's the inflexion point, do you think? >> i don't expect the insfwekz taint to the u.s. and china

extended dlz a strong correlation between rising criticisms everywhere including the u.s., but also in europe the wonderful reaction and the response of politicians regarding the -- particular visions. i think it will last as long as we have rising in many countries. this is why even here we have not sure it's the final payment for years to come. that's in terms of the u.s. china, japan, latin and -- >> if you look at global trade volumes, they've fallen off a cliff, even before over the last couple of months many people were long emerging

market equities or went long emerging market equities at the beginning of this year because of the change in the fed stance and because the outlook didn't look as bads people thought it was going to be at the end of 2018 do you think now with the tariffs, it's time to probably reassess positioning in emerging markets? >> on the technical point of view, yes, that's for sure, yes. ourselves, what are we doing in terms of allocation and both emerging under markets we are neutral, and we decided to have a prediction to protect in terms of sudden correction, which sometimes that's for the foreseeable because everything depends on the agreement, and just a political game that's between politicians and it's very difficult to time first we're down to emerging market

space more specifically. we are quite positive on asian countries, especially china. it's a pair docks, but if you catch where on the planet do have -- if needed china has all it turned on regarding policy, in terms of monetary policy first and then fiscal policy and -- through the free channels the chinese authorities guarantee a way -- guarantee to achieve economic growth and 6.3 periods this year. >> which is something they set as a target this year. they set a range

in the way the president has reacted to china certainly increasing the high probability that they apply tariffs on autos >> actually, right unfortunately, europe is the weakest link of this trade war story, trade war trend we are looking at china as a country that's a huge gateway in terms of trade war and economic growth impact. what about europe now? the countries -- in terms of trade war to the u.s. and europe as you move public bunl in excess, and pudge -- is very close to 60%, which is quite --

but when you have one thing, and germany is the good news, but when you have -- you also do use it >> especially exactly. they've got the firepower. they're just not using it. very nice segue. i want to talk about the trade numbers today that came out of germany. german exports had received an unexpected bounce from march adjusted exports rose by 1.5% in march. that is in contrast to a reuters poll which predicted they would shrink by .3%. in aggregate they have posted a current account surplus of 30 billion euros. that is the highest in the last two years. >> well, let's stick with the concept of trade here in europe because the upcoming trade talks between brussels and washington are not far off. the dutch prime minister told cnbc at the e.u. summit in romania yesterday that the bloc, that's the e.u., would be able to retain a united front when it comes it those negotiations.

it doesn't have to be based at union nimty. they'll always see the decision making is not fast did you need to come to compromises in this position that position now will be forcefully negotiated. >> we also ask the european parliamentary president antonio whether europe's trade relationship with the u.s. is likely to change for the new european commission and in light of the current difficulties between the u.s. and china here's how he responded. >> if you want to protect europeans and also to protect the european companies the chinese for me to strengthen the cooperation with americans

and then to react for achieving a solution we are working hard in defense of our interest. without europe it's -- >> do you think you'll be a more aggressive europe when it comes to trade and especially when it comes to china >> yes, but china is aggressive. not europe we need -- there are very good rules against that we need to implement these rules if there is an effect against us >> wile speaking of germany, shares have jumped after reuters reported the german firm will abandon plans to split into two. according to the report this will instead look to partially spin off its elevators business. cnbc has not been able to confirm this support yet the company announced in september it wanted to split the business, but drop the plans citing concerns over a cross-sharing structure. >> and shares are higher after the cement maker agreed to sell its philippines business in a

deal worth $2.15 billion infrastructure firm san miguel corporation will buy the unit and you may notice, you may not notice, that's the same family behind the beer san miguel get in touch on twitter. we're @street signs.cnbc or tweet us directly. >> it's 9:15 a.m., and you are already talking about beer >> it's a friday. the latest innovation from xfinity

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>> lyft was the first ride-hailing company ever to go public that set quite the precedent ahead of uber's expected ipo today, and lyft's valuation has taken a big hit since it went public shares down 29%. it has muted sentiment a little going into the stock, and it could help explain why the ipo priced at the bottom of the range at $45 a share we had thought it could go as high as $50 a share, which would put the valuation closer to $90 billion. the valuation will be coming in at $75.6 billion still a big company that we're talking about here, guys the ipo will offer 180 million shares in an ipo worth $800 million. that is one of the biggest ipos we've seen biggest since alibaba, and before that it was facebook as a u.s. company in 2012 what investors will be looking for ahead of this ipo even knee

it emphasized trade, it continues to not be a company that concerned investors already expressed over lyft, and it continues to give concern over uber still a big day here at this company. it's set to go public. we've been waiting for years for this day, and a lot of anticipation ahead of it later today. >> really have been waiting years for this, haven't we you see big listing of the yoer. let's continue this conversation the thing about the companies is that none of them actually make money. when you buy into this, you are buying into the hope that at one point they'll become comfortable. how long of a timeline do you think you can -- >> it's a good question. what is very important to understand is we can in

innovation technology. tens ten years and probably for the next 20, 35 years. you have to buy for the long-term because you have to consider uber is a district innovative company like so many are. with uber afterwards it's a pattern how long do people have to wait? with am zplon it was a long, long, long time. >> the idea is to justify to investment with companies because if you invest in one company, you can't wait for years. it's too long for any investor to wait such a long period of

time, but if you diversify you have invested in many different descriptive and innovative companies like uber. google, facebook, and so on and so forth you can benefit from the description through all members you invest in, and by doing so, you can go for why when you learn from today how big of a threat is that to uber as it becomes a public company. >> to be frank with you, i don't have any answer. one thing is sure and states, including the says u.s. states, have attempted to regulate, but,

on the other hand, these big descriptive companies have an advantage to u.s. states versus the chinese states and particularly where, which is behind according to me, we are about rising companies as a source that together there's something behind the trade wall which is long-lasting technological wall between the u.s. and china for the next at the global level >> i just want to follow-up on what uber and asked it more broadly. do you think the valuations for these big disruptive tech firms accurately reflect the threat of regulation down the road >> i don't think so because it's afraid, yes, but it is not so

much discussed among investors for the time being we are about the risk around the course of value. nothing like waiting the course for the government as big payer. for the time being in terms of regulation and then break-up of the business model for sure will be of this -- >> appreciate your attempt to form that new acronym. that was -- thanks for joining us is he the head of asset allocation and if you want to know a little bit more about why ipo's are outperforming go to our website cnbc.com you can see that's the case despite the market jitters we've also been talking about rsh speaking of breaking up companies, facebook has rejected a call from one of its co-founders to do just that. co-founder chris hughes wrote in the "new york times" that the firm is now too big and too

powerful he also argued that mark zuckerberg is not accountable he said it's unprecedent and unamerican he will be meeting with the french president in paris later today. >> that will be an interesting one. >> watch out for that later. speaking of tech, amazon chief jeff bezos has unveiled a new moon lander prototype that his rocket company blue origin has developed. he told an audience of investors and nasa officials in washington that the lander would carry up to four rovers that could explore the lunary surface and would be able to launch satellites into the moon's orbit. his firm blue origin attempted to capitalize on the trump administration's plans to once more send astronauts to the moon and to establish a space pattern in lunar orbit

>> vice president pence recently said it's the stated policy of this united states and the america to return american astronauts to the moon within the next five years. i love this. it's the right thing to do for those of you doing the arithmetic at home, that's 2024. we can help meet that timeline, but only because we started three years ago. it's time to go back to the moon this time to stay. >> also coming up in the show, it stay tuned as we break the u.k.'s latest gdp figures after the break.

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>> trade sensitive sectors like tech, auto, and basic resources lead the rally on the side of the atlantic, while u.s. futures point to a lower open. they're set for their best days in ten years after a report the german steel company could abandon fans to split and list elevator business. >> uber prices its ipo at the low end of its range this values the ride-hailing giant at more than $75 billion in some non-brexit related news we got the gdp trends for the first quarter, and it has come in at 0.5% quarter-on-quarter this is in line with the consensus going into it at .5% on an annual basis that is 1.8% year-on-year it is the highest since the

third quarter of 2017. let's just break it down a little for you the business investment number also came in at .5% positive quarter-on-quarter the reuters poll was negative .6%, and i just want to pick up on the investment point because it's clearly a part of the gdp breakdown. the bank of england has been very focused on that investment into the u.k. that has been dwindling. that evidence suggests that there has been an up tick in business nvestment that is somewhat of a positive surprise there just breaking it down further. household spending at .7% quarter-on-quarter yes, again, the biggest rise since the first quarter since 2017 that it points an annualized level of 1.9% year-on-year surprised when it comes to the resilience of household spending as well as business investments here we've also got more information

on construction output that number is actually down 1.9% month-on-month. industrial output came in stronger, so the hearted data is coming on stronger in march. up .7% versus a poll of is.7%. on the back of that we're seeing an uptick in pounds, but the ftse index is also up about .7%. they updated their projections they did have .5%. they upgraded their .5% estimate for q1 it was .2% before. the question is whether or not this is just on the back of -- like stockpiling when the trend can continue the rest of the year >> i don't think it can.

i think there are two things going on first of all, there is undoubtedly stog piling -- cautionary stockpiling from u.k. businesses over tariff and phone-tariff barriers that may have come on the 29th of march they didn't, but there will still be an incentive to stockpile. even if they level off in q2, you expect the stimulus to pull back you mentioned the resilience of u.k. consumers it's fascinating you also need to look at this in the context of the savings ratio, which is down near a 60-year low. this is expecting households are doing away they should be doing, which is when they're hit by an uncertain event, they're dipping into their savings to smooth their consumption. that's great news. it isn't sustainable it can't keep you doing that for pe perpetuity they need to start taking it back on their roof in case a rainy day comes along. >> that's interesting with the household savings rates. people are spending more, but dipping into you their savings

to do it this isn't just happening in the u.k. it's also happening in europe. there's a big disparity between the soft data and the hard data. we've got the strong hard data now. if you look at the pmi numbers for the first three months of the year, they were pointing to every closer to .1%, .2%. u.k. consumer confidence and the european consumer confidence, when you ask them about their own household finances, they say in an environment with low interest rates and employment going up and unemployment going down, we're feeling fairly confident. then you ask what is the environment in which you are operating. far more cautious. also in europe you have to stock

spiel, and also brexit while not to the same degree is also relevant to the e.u. 27 as it is in the u.k. >> great question. i think you're spot on i don't think the market is going to respond to near-term movements in overall gdp numbers. what it is looking for is what's going on a mile from here in westminster and whether there's going to be a resolution that on the one hand could lead to more certainty over a transition period, or indeed a change of government, and i think a lot of the conversations we're having with clients start on brexit,

but actually move towards the political implications made and the political implications of a change of government for conservative government to a labour government and what that does for taxation assets and asset prices. when could that happen >> first thing to say is the gis count we've seen since q2 2015 is around 15% to 20% on a trade-weighted basis you need to be fairly confident you're going to double your shorts there's still a strong short interest on the sterling if you're not going to -- if you don't take a long position, you need to be confident that you're not going to get a scenario whe

wherety think it's all driven by -- it's not based on macrodata. >> it appears not. where is the bank of england in all of this? one of the surprising take-aways from the conference last week is they appeared to -- there appears tore a lotof uncertainty again, using the word uncertainty, on the short-term data, and it's giving mixed signals. they seem to be more confident about the long-term trajectory of the u.k. and they're forecasting excess demand over their horizon period do you think in a normal world the bank would be signaling perhaps a little bit more hawkishness and hikes in the near-term? >> you asked a great question last week that indicated the bank of england are not that clear where the natural rates is, where the supply constraint on the u.k. economy is that's actually really relevant

from the standing whether they're in an environment of surplus demand they're going to need to ramp up rates quicker than the market expects. we've had the governor speak last week, and we've also had the bank's chief economy it's saying a different thing that the market may well be right to only place in one rate hike, and it's arrogant from a perspective to assume that that market is wrong. i don't think people are going to look and see the gdp data and the report has a path that is where the u.k. is currently prietsing. >> i have one final question u.k. first quarter total business services trade balance down to negative 1 and one-third of the sterling. that's the biggest deficit since records began. why does that matter?

a lot of that uncertificate. if you have a supply chain contract with the european founder, and you're not certain on the tariff and non-tariff barriers you face as quickly as a couple of months time, you're going to move that to the right. that's going to be destructive to the balance payments. >> thanks for your time and analysis >> thanks for watching the bank of england presser and to my question all right. let's take a look at some of the foreign exchange markets we've got -- we're talking about sterling hanging in around 130. just shy of that psychological

level really a little weaker on the session it's rebouned a little bit after that gdp came out. euro is trading a little firmer versus the u.s. dollar here. up at 112.20 and dollar-yen giving back some of the gains that we saw on yesterday's session in line with the rebound in recent assets today let's move on and take a look at european markets because as i mentioned, it is a better day for risk across the board. ftse 100, we have up at .7%. dax about 1% higher as well. cac up a similar amount, and ftse up a similar amount as well the theme today really is trade talk optimism. there is still hope because the vice premier is in washington conducting these talks that perhaps some resolution could be in sight it is, after all, friday it's friday, tear of day >> after euro day. now tariff day >> let's take a look at u.s. futures as well, and all of it

is seen opening up weaker. actually the worst week for u.s. equities for all of 2019 >> back to some corporate numbers. british airways owner aig has reiterated its guidance for flat profit growth and has blamed that on higher fuel prices the airline group posted results this morning that were largely in line with expectation. >> the german postal and the -- supported an operating profit that was in line with forecasts at 1.2 billion euros the country has confirmed its 2019 guidance. the cfo told cnbc this morning that the company's portfolio would remain resilient in the newly imposed tariffs against china. >> just the anticipation of those new tariffs coming into

place has quite a lot to equity markets and stocks i think for us as a company, the important message is that we have bought the portfolio. some of our portfolio is more exposed to tariff development and we have other parts which are more resilient, and we have a big -- internally, and i think on that basis we are confident that we will find a way for the situati

situation. >> tear being investigated over an adding $200 billion money laundering scandal >> coming up, we'll look ahead to the final day of the premier league season here in england as manchester city and liverpool battle it out for that title

>> put them on course for the first part of an incredible double with the champions league trophy still to play for as well manchester city, they've won 18 games in a row in the premier league that's unbelievable for liverpool on a winning run of eight themselves these two teams by far the teams in the premier league and quite

rightly, they are taking it to the wire to see who will win in the premier league trophy. it's the eighth time that the race has gone down to the day of the season manchester city have been involved in the last two times that's happened, and they've come out on top in both most recently liverpool where they were once chasing again in 2014. $50 million is on offer for whoever finishes top of the premier league that's what they call the merit money, and there will be two premier league trophies around the country on sunday. one at the ammex stadium at the south coast in brighton. e.k. city win it that's the champions trophy. that's the one that's been at the stadium all year, and then we want to answer just in case liverpool can pull off something spectacular. 20 clean sheets, well, that's the number that both brazilian goal keepers allison for liverpool and edison for manchester city have kept this season it could come down to goals

scored even. that's if manchester city have -- and liverpool just draw manchester city to win it. the goals scored an unbelievable turn of events if that happened. after the week we've had in football in the european competitions, well, who would better get some? >> adam to the transparent ethical journalist here in cnbc. thanks several e.u. countries have iran's ultimatums on the program. that's unless they move to protect its economy from the u.s. sanctions in a joint statement the european union said it would continue to enable trade with iran and, of course, meanwhile, president trump has said he could not rule out the military

confrontation with iran. that's after he deployed a carrier group to the persian gulf region. >> i guess you could say that. i don't want to say no, but hopefully that won't happen. we have one of the most powerful ships in the world, ask approximate we don't want to do anything what i would like to see with iran, i would like to see them call me. >> the pentagon has confirmed that a launch by north korea on thursday was of multiple ballistic missiles nbc's janice has the details >> there are still few details, but we know north korea fired at least two short-range ballistic missiles fr missiles that's worth noting because it was from this area in 2017 that north korea reached a milestone testing its first solid fuel midrange ballistic missile solid fuel missiles are apparently easier to transport, easier to launch, hard to detect this latest test marks an escalation both in testing and

in intention there was several launches over the course of the weekend to the point where south korean president said today that north korea's pattern of behavior risks jeopardizing dialogue and negotiations the issue, of course, is that there had been no negotiations, and the lines of communication with pyongyang have been silent since the hanoi summit collapsed. the u.n. special envoy for north korea is in south korea for talks that will continue this is based solely on the economy and may be willing to look the other way north korea, meanwhile, will continue to look to gain leverage the question, of course, is how far is kim jong un willing to go to get it? janice, nbc news, seoul. well, with all that military activity, you might be happy to know that president trump is set to nominate a boeing -- shanahan

has been acting defense secretary since january when jim mattis resigned. the pentagon inspector general has -- he was later cleared of any wrong doing. the white house spokesperson sarah saunders said the move to nominate shanahan is based on his outstanding service and ability to lead. our colleague will sit down with the u.n. secretary of state mike pompeo tune in on monday for that interview. no doubt north korea and iran -- >> now, our top story. the chinese customers ministry said beijing will take counter measures after the u.s. raised levies on $200 billion worth of chinese goods from 10% to 25%. the move los angeles taken effect ahead of a second day in the latest round of high-level trade talks in washington. now, ahead of the fresh tariffs president trump promised to work with china

they renegotiated the deal they took whether it's intellectual property theft, they took many, many parts of that deal and they renegotiated it you can't do that. i'm different than a lot of people i happen to think that tariffs for our country are very powerful >> let's get out to tracie potts in washington from nbc tracie, how much of a political or electoral consideration might there be to trump's behavior in these trade talks?

dough spite the tariffs going into effect in the middle of the night. chinese-run state newspaper reporting, in fact, tweeting overnight that they have confirmed with the trade reps here that they do plan to show up at the table today. >> tracie, another quick question for you i wanted to ask about the bipartisan support for this type of brexit when it comes to china. historically democrats have been quite on board with it we mentioned there the effect

that these higher tariffs could have on american consumers on american farmers they are difficult numbers in terms of their ability to sell overseas do you think that that could move the needle when it comes to democrat support for this kind of behavior? >> well, certainly if their constituents back home are paying more for goods, it could, but how much more? >> i really appreciate your time this morning that's tracie potts live from nbc news well, we're talking about the price action in europe today.

european indexes are rebounding, but u.s. futures are, again, stet to open lower in a couple of hour's time nasdaq down 12 all eyes on the cpi data later today as well. they're likely to rise in april. really the number one focus for investors is the trade talks and how they will plan on. it's been a pretty weak week for u.s. equities. all of the three majors are going to be on the lower workweek for 2019. that is it for our show today. have a lovely weekend.

skbro it is an uber busy day the ipo posted at the low end of the range, but becoming one of the biggest technology ipos of all time it is a busy friday, may 10th, as worldwide exchange begins right now.