"street signs. i'm joanna versace. >> i'm willem marks. these are your headlines this monday morning. >> dragging european stocks lower which drag the asian markets into the red sharply lower as u.s./china trade talks end without a deal. u.s. secretary of state mike pompeo heads to brussels with talks amid with them. >> we're not going to

miscalculate our aim is not warped. our aim is a change through the behavior of the iranian leadership and hope they will get what they finally want and what they so richly deserved it. >> he's eyeing a tallups. and a peace full end in sight. shares in exotic ka after the french and italian partners agree to end their leadership dispute. good morning, everyone u.s. equities managed to eke out somewhat of a gain they would be continuing even though there was no resolution in sight the asian markets traded deeply in the red

shanghai down more than 1% nikkei as well there on fear that is this u.s. dangerous. the risk, of course, is that of china retaliating. so far china has not decided to go down that route we could target companies like app willing and a lot of asian business leeches as this well. you can see behind me. pretty much trading in the red today, about 90% if you fear this is 600% only about one hour the breakdown at the relative mer former you can see the ftse 100

down .2 of a percentage point. brexit developments. if you would be willing to put down a fourth vote, all eyes on that as well as falling into the european 9 ths performing the sectors most exposed to the trade war, chip makers, are leaning. also right at the boston, pies son crew if the merger was not going down 5%, check steals ahead at 95 perce%. in terms of sectors, you can see

most with exposure to chien are are suffering. it's down 2% already there's no respite for the sector today more concern at being manufactured and trading the u.s. have no, ma'am come peated him to be on news stations industria industrials, the relative outperformers, very much negative territory oil and gas as well. relies on the reaction president trump said the u.s. is, quote, right where we want to be they ended last week without agreement. chinese officials have rejected

accusations that they have backtracked on earlier commitments. the chinese vice premier says inisn't. they increased the $2 h billion to do so >> has yet to start with any conditions. >> reporter: speculation is that china will announce retaliatory tariffs today. this after friday's trade talks ended in a stalemate, the u.s. wanting to get specific changes to chinese law through china's parliament beijing argues a high level state council decree is just as good larry dud low said that is not enough. >> one of the sticking points

right now is we would like to see these corrections in ab agreement which iscodified by l law, such ability. as the president said, things seem to be taking too long we can't accept any backtracking. >> china is pushing back communist party paper is running an editorial saying that china should not swallow bitter truth that harms the interests that honors the vice premiere. he told chinese media that china wanted to engage in talks that an agreement must address the country's core concerns, which is lifting all details but assuring he doesn't even have pm tv

difference think i am a matter efr country has its principle. >> kudlow says the chinese president has invited them and they will meet at the g20 in japan. joined now by darryl krump thank you for joining us, darryl why do you think the newly imposed tariffs didn't have as much dramatic markets mt south >> i think there's still a few digital negotiations tactics but

i think that's a little bit of false hope i think this is going to take a while. china's in this to play for the long game. $500 billion worth of exports is not their end game what is their end game is by 2030 their consumer led gdp close to 124 they're really playing this as a long-taerm export the exports have dropped from 30% in 2006 down to be 20% ns. s >> the implication this is not a long play, we're talking about this as a political win for president trump. >> i think there's some of that at work. the analogy has been made. this is like two heavy weight prize fighters slugging it out somebody will be on the mat and

somebody will be outstanding i would change that, this is like two heavy weight fighters head butting nobody wins in this scenario it's who can with stand the short term pain you say. >> there's hope there will be some sort term senation allism use it >> no. both in asia and the think say thank you. >> i'm thinking that's right huge move in both those markets in the first four or five months of the year. i think that's what's emboldened both sides to take a tougher,

stronger stance on this negotiation. remember the stance was moving closer when they were really weak and asia was falling under pressure the u.s. has now rebounded on almost a complete v-shaped recovery 3.2% gdp growth. so i think the u.s. is thinking they have a bit of ammunition here. >> we're speaking to an analyst last near. so long as it's the ultimate goal of kpeepg things over more than what we had last year.

>> yes, i think chien is it mu -- put in boll stofr hoft dogs they zblus had their heating here, he think thamp -- it's up 51% of their net exports from the short term they've had a lot of stimulus. they're playing the long game of how they build that out and who they form trading partnerships with. >> you have a sense of your views. i want to ask you brass tacks, where do you see up side which sectors and which markets if there is a resolution to these trade talks? >> if there's a resolution i think you get a nice up side to the u.s. market.

you could push through 3,000 we particularly still very much like the tech sector and the chief industrial sector. industrials will a chooef on the fears and tech continues to drive top line growth. you want to be exposed to sectors that will drive top line growth, top line sales that's the best place to be. you would probably fade if you are going to topple hire next month it will be major from the grew it. it's probably our highest commission idea. we've been over weight on emerging market equities if a deal happens, that has to

be good for merchant market equities. >> thank you so much for your time. >> cio of wealth investment there. china has some reaction. head over to cnbc.com to see what asia could do. also coming up on the show, from china and on, china has a right to stand up to the rivals. we'll bring you the excludsivee. previous administrations have done more with china. we've called them out. we're trying to push back against intellectual property being stolen at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond.

because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

most of us don't know how much data we use... ♪ ...but we all know we're paying too much for it. enter xfinity mobile. america's best lte with the most wifi hotspots. combined for the first time.

when you're near an xfinity hotspot, you're connected to wifi, saving on data. when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. get $250 back when you buy a new samsung galaxy. call, visit or click today. welcome back to the program. the foreign ministry of the united arab emirates says sabotage efforts attacked four areas. they didn't lay blame to any one

country or group they said it was a, quote, dangerous endeavor u.s. secretary of state mike pompeo will skip a visit to moscow according to a state department official. he said the work this week was too much our colleague has a dabble what did mr. pompeo have to tell you? >> jomana, we talked about everything we also talked very much about china and its influence in the middle east.

as you say, the main focus was between what's happening between tehran and washington what we've seen and it's real, something current. things we're worried about today. we've done all of the flings wau wanted to make sure we had it. in the event they decided to come after it, anyplace in the u.s. , they respond. >> there are places i've lived in the last ten years. in terms of the yup tick there are fears in the military itself and the potential for miscalculations. how worried are you? >> we're not going to miss it.

our aim is a change in behavior to help the eye rairanian peoplt what they deserve. the president wanted to make sure that in the event something took place, we could respond in the appropriate way. as the secretary of state i wanted to make sure we had all the political diplomatic tools in the right place i wanted to make sure we provided the president with a background >> the secretary of state said not going to calculate according to the president, last week you'll remember he said, hey, i'm just waiting for that phone call i'm happy to talk to tehran. that reiterated from mr. pompeo saying we don't want a conflict with tehran.

buy don't want contact with russia mr. pompeo meeting with them he's taking time out to head to brussels this was about having time with the e3 also the fact that they have had a military buildup in the persian gulf and the repercussions of that. i did also ask the secretary about one name that came up quite often in our interview that was the name of his pret did he ses hor, if he should continue to have conversations with former colleagues across the way in tehran. listen in.

>> it's inappropriate. it's not consistent with what former secretary of states ought to be doing and i'll leave it at that suffice it to say, previous secretary of states opt to get off the stage. when the day is done, they ought to leave it. >> ouch. that was the secretary of state weig weighing in there. when i spoke with him he told me, you know, when we were negotiating, i saw john kerry more than i talked to my own wife it should be no surprise that those negotiations are alive and well mr. kerry has said things he will just wait out the trump administration you don't have to respond yet. the fear whether you are sitting

in the next bow tell severe and harsh administrations. how far is the president willing to go there. certainly mr. pompeo wasn't heard there. pretty sharp in his comments. >> you talk about geo politics and talking about the crisis of oil and energy conflicts one thing that is really interesting is since the u.s. put out the jtpoa, the price of oil is anything that's plotted it has gone back to places similar. me, too m.too what did they have to say about the markets? >> boy was he punchy sticking to that line. look at your charts. look at the stories you've been doing across the board on cnbc

at the end of the day they haven't moved and when we decided to pull out of the jtpoa when he went out of there threor four times i was looking at other parts of the conversation my question was at the end of the day, obviously the energy and independence is going to change the game in foreign policy it is changing it already. one of the questions that i often ask the leaders in the gulf is that, you know, given the fact that we've seen such fluctuation in u.s. policy towards the region in the last several years, now the trump administration as well, at what point do american voters kind of wake up and are they okay? essentially what we're doing is pro power.

>> in the near future. >> thank you for being with us the insights and the report from the secretary of stiet clinton thank you so much for being with us we heard from mike pompeo in that interview there that iran represents a threat to american interests. i wonder in your mind if that's a reflection of reality. >> iran is some threat it is in a confrontation with united states allies in the region it is also someone that's been assisting parties that have been fighting parties supported by the united states in countries like it probably was not a

french united states interest but the way this united states french rnl authorized and it's a disservice to the american people and to peets. >> i think it's beyond the level agreed upon in the jcpoa and are themselves credible? >> yes, they are, because they have the technical capability of doing that but they are subject to the world's most robust and effective verification system as confirmed time and again by the nuclear watchdog the national atomic energy agencies even if they were to increase levels of enrichment

it's quite possible that the international community would continue to have full visibility of what it was iran was doing. most of the restrictions on iran and the controls on what they can do and the ability of the international community to understand what iran is doing are due to remain intact if iran carries out those threats. now that's my guess. it's not certain by any means but it's another example by attacking the nuclear agreement functionally the united states is in danger of bringing about the very situation which it complained of, namely an uncontrolled iranian involvement. >> sir, last week iran said they were looking to renege on some of the control mechanisms.

what do you think you should once they contain the nook clear ambitions, on the other, don't want to disrupt the strategic alliance of the united states. >> yes, it's very difficult. in my view the europeans have not taken a sufficiently strong line with the united states. united states is a threat to europe's security in this respect because it is reneging on a u.n. security council endorsed international agreement. that contributes directly to european securities, but i don't find that european has done that in response to the united states we should have a united nations security council debate of threats to regional peace followed by the possible end of

this nuclear agreement we see the united nations security council able to discuss other conflict areas but not this one sikdly, it's not too bad for them to voem a suite of mish urs which can have the financial mechanism of your trade which europe has put in place and a suite of measures which would persuade european banks to assist and to do so in a way which does not bring about u.s. sanctions on those banks and finally there needs to be work with russia and china it's not just up to the europeans. >> i want to come back to that question, richard, of the banks and indeed the broader business community in europe. their investment decisions in

iran has that had any significant impact, do you think, on the political dialogue inside the iranian leadership do you think that's pertinent to the decision making going on in iran now >> indeed it is. if you look at the pattern of observance of the obligations on the fixed countries with which iran signed the nuclear agreement, you'll see that the vit vital lifting of multi-lateral relations took place but that none of the promises made by the europeans, united states, russia and china have been fully met. even china now finds it difficult to trade with iran and european banks have not been

able to provide normal financial services which are mentioned in the nuclear agreement. so of course it's a major factor in tehran decision making, their belief that they have been suckered. >> we'll leave it there. thank you for joining us sir richard dalton is an "anything al fellow on chatham hughes. uber hits the skids on the first big day of trading that's after this break. (client's voice) remember that degree you got in taxation?

(danny) of course you don't because you didn't! your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you.

welcome back to "street signs. i'm willem marks. >> i'm joanna versace. >> autos drag european stocks down following asian stocks into the red. the dow will open sharply lower too after u.s./china trade talks end without a deal. mike pompeo heads to

brussels for talks on iran the u.s. secretary of state tells cnbc exclusively that the ramp up in the persian gulf will not raise the risk of conflict. >> we're not going to miscalculate our aim is not war our aim is a change in the behavior of the iranian leadership we hope the iranian people will get what they finally want, what they so richly deserve. >> shares in thyssencrook plummet. a peaceful end in sight. shares in ira group rally after they agree to end their leadership dispute good morning after a weak handover from asian

session, you can see european indices are trading pretty much all in the red the ftse 100 trading just shy of 7200 here. down about 5 points or a tenth of a percentage point. again, yet another big week for brexit coming up in the next few days with reports of the weekend suggesting we may be in for yet another round of the meaningful vote that is a picture for the ftse 100. xetra dax is the under performer. on par with the italian index. there again the trade sectors, here talking about autos, tech, chip makers, all of the names that have exposure are trading deeply in the red today. also industrials are trading on the back too c caccarant trading down they're a continuation of some of the price consideration we had. a bit light on the macro fund.

the narrative is very much hit by the discussions between the u.s. and china and whether or not there will be a resolution in sight foreign exchange euro trading around the flat line 11230 is the mark not a lot of movement there. yen is trading a quarter of a percentage point we broke through it. cable continues to hold up above 130. continues to be very well supported despite you could argue a plethora of rising geopolitical risks and brexit risks that emerged over the weekend. cable, interesting currency. hanging in around 130. switching to the picture for u.s. futures we ended up friday in the green. a bit of a roller coaster for

u.s. equities. over the weekend as we were talking about, sentiment took a bit of a nose dive the picture is pretty murky. the dow is 270 points weaker in a couple of hours time nasdaq down 100 points s&p down 30 as well. so a lot of reds on the board for u.s. equities, too >> thanks, jomana. in the u.k. they will pressure theresa may for a departure date they told bbc radio he was looking for a, quote, clear understanding about the prime minister's timetable may has previously insisted she'll step down once her brexit deal is rattie fight this resignation pressure comes a among concerns that they could face heavy losses in the upcoming european parliamentary elections. that's after a core defeat

perfect conservatives are in fourth place, labor, and the liberal democrats. some of germany's leaders have made a statement warning about the rise in populism and the threat it poeses to the single market. the financial times has been told there needs to be a fight back against the populus markets. the german banking association has thrown support behind pro european parties while commerce bank had martin wilka back it into protectionist and populist tendencies. uber sales fell friday meanwhile, lyft also hit something of a speed bump hitting a record low just ahead of that ipo.

our colleague and tech reporter joins us now in the studio was uber's management expecting this might happen? >> there was a lot of anticipation going into this day. we had expected it for years and it turned out to just not be a great day in the market. uber's management made a point to say there's a little bit of it rated to the after frican poy it's waiting to do that for a number of years. andrew ross sorkin asked the ceo. here's how he responded. >> pricing a deal is an art, not a science, so we probably went at it imperially but we thought this reflected the environment environment is uncertain right now, and any time there's uncertainty in the market, investors are going to be a

little hesitant to put 8 billion of their dollars to work we wanted to put our stock with a group of funds we know aren't going to hold for the next week, the next year and the next five years. when we looked at the environment and we balanced how we really think of this company long term, this was a great result $8 billion is plenty for us to build and grow on top of >> what kind of runway does that give you >> very significant. we're confident in the road ahead. >> there was a little bit of caveating about the overall market and also about lyft which reported its earnings earlier in the week uber was saying, we're not totally sure about it. >> we've had these two major transportation sore advises give their opinion the last month or so. >> lyft is not high.

the post launch. uber had a weak launch on friday what does this tell you about appetite from the -- well, essentially from the investor community to own these names they can't keep pointing back to tricky market conditions ultimately maybe it's a function of these companies being a little too ambitious. >> we've seen these companies, particularly uber and the tech unicorns in the pipe like like slack and we work, they waited in the private markets to go public they got the massive valuations that aren't normal normally you would have gone public years ago there is a little bit of trepidation thinking they maybe waited too long. we talked a lot about how the broader ipo market is still very hot right now. >> let's leave it there. thank you so much, elizabeth

our tech reporter. solving the governance issues after months of tension french lens maker essilol and lucks otic ka resolves their problem. they have accused each other of trying to dominate the combined entity under the terms of this so-called peace deal and none of the currency pros will wear it. >> fascinating story. >> really interesting. talking about trans national dynamics and a big question around having a founder as a ceo. >> absolutely. and i think as you go back and actually if you look at the performance of the stock relative to other stocks in the

sector, this is a luxury stock it has done extwreemly well. it has under performed down 3%. when as they merged the combined group had a market cap of 54 billion euros, it's gone down because of investor and stakeholder concerns about the governance issues going on between the respective ceos. and to your point about having a founder be in a chief executive position, this goes back to many, many years even before the merger happened. the ceo of lucks ottica and then reasserting indefense. the founder had a very activist, active role. >> hard to let go. also interesting, typically you have these public spatz, a war of words between the two

opposing sides it's also been the vocal nature of the criticism from institutional investors that seems to have forced the two sides to come to some kind of agreement because they have been so happy with this reached the peak was the time when the ceo of luxotica, his holding company, delphin which controls 31% of the voting rights, they went and initiated an arbitration request and they found out that the other ceo was over exerting his influence and looking to move out of his mandate. then investors got concerned because it looked as though he was going down the arbitration route and not looking to solve this they seem to have pull the aside those issues and neither will be

the future ceo of the company. the shares are trading up. another company focused on today, the ceo of face in crook will seek investment the german firm launched a new strategy thyssencrupp said eu competition commissioner made clear that she expected more disclosures from the deal in the pass her demands undermine the economic logic of the joint venture. coming up on the show, manchester city overcome an early scare to retain the premier league title more after this break. 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®.

the final day of the premier league soccer season saw manchester city survive a brief

scare, very brief scare to hold its nerve and get the victory it needed to retain the title second place liverpool won the final fixture as well but it wasn't enough to overhaul city it has been a tempestuous 24 hours. i want to break the news to our viewers that the manager chris houton has left the club tell us more. >> jomana, brighton maybe not counting the cost for that defees, but the wider circumstances, their manager chris hughton has been sacked. tony bloom saying it's time for a change brighton had see secured the premier league status for the third season chris hughton has lost his job again. they were on the receiving end of manchester city's final win of the season that took them to 98 points.

unassailable total that liverpool could not reach even if they did beat hampton, which they did do. amazing scenes at the amex stadium. brighton not sticking with the script by going ahead only 80 or 90 seconds in between the two goals and manchester city battling liverpool still winning the title but not when la port puts manchester city in front 2-1. they added another goal and they put the cheri on top of the cake with a 4-1 win that one to be the last job for chris. this was his biggest a chooefment, toughest title

because they were pushed all of the way. just relieved to have that titlt back in the city >> players, especially the rivalry. give more and more credit to what you have done last season was the first one. it was incredible to be the first one. from the beginning liverpool was incredible. >> the season is definitely not over for liverpool and manchester city. city still has the first english club to play watford cup in the final. liverpool, well, they head to madrid in a couple of weeks' time to visit tottenham all-star >> swap everything for that

european they haven't created these. >> will you swap that? we'll see. >> wouldn't call it lack of success. >> our commiserations to our reporter there on sports, adam reed. let's shift from football or soccer to shopping shares in geox down 14 1/2% after they reported a drop in first quarter sales. they have cut the stock rating from buy to hold after those disappointing results. and moving across the pond to walmart, forecasting an annual decline in operating income and earnings per share when it reports the first quarter results later this week. this after the retailer reported much stronger than expected sales during the holiday period. i want to bring in brendan fletcher, senior analyst from bernstein. looking at your notes, i see

that you have -- you've just moved walmart to an outpersonal perform rating you're saying that their investments are fing to pay off. tell us more about your outlook here it's been a long run for us being neutral on walmart and we feel walmart can slowly increase the online capabilities versus amazon the classic business, which are still stores which are growing extraordinarily well, still comping a high as 1 or 2%, that those boxes can generate more earnings that's why we think walmart will do better than their original guidance by going back to the bread and butter, which is harvesting costs, being a low cost operator, while serving a relatively strong middle america. >> i want to take you back to the amazon earnings. one thing that stood out is the

traditional area, ecommerce is not growing, cloud services, wearables, et cetera do you think going forward that the shift of amazon will be more on the classic growing than the pure retail market >> we think that's a good observation and we think it's consistent with one of the challenges that amazon is running into it's easy to think it is good with everything. they have a particular format. no different than another physical box we can identify as consumers. amazon's very dominant format is a very large distribution center out in the middle of nowhere, 200 miles away, and they have millions of items. if you're after something in the long, long tail of assortment,

it's difficult for someone to compete with them except walmart over time. what most of our spend is on is grocery items, high speed consumption items. price and convenience ietd tempt. it's pretty good in price. not that good at convenience that's why we've seen them invest in getting more convenient to try to close that gap. that's why we think amazon does have limitations in terms of the retail capability and we see the growth in other sectors is one of those mechanism, even if it's not coming to retail do you think that's a game changer for the industry does it put unnecessary pressure on retail competitors? >> it matters but one of the

elements is decide how convenient do you have to be before a store is not the correct option we have to remember that a store, even in the united states, is moving more towards the european model which includes pickup. we like the french model of the leclair areas. certainly nothing kmard to the -- compared to the u.k.s. we think that one day shipping has to be compared to one hour pickup >> all right, sir. thank you very much. for breaking that down for us. senior analyst from bernstein, brandon fletcher thank you for watching ♪

most of us don't know how much data we use... ...but we all know we're paying too much for it. enter xfinity mobile. america's best lte with the most wifi hotspots. combined for the first time. when you're near an xfinity hotspot, you're connected to wifi, saving on data. when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. get $250 back when you buy a new samsung galaxy. call, visit or click today.

it is 5 a.m. here at cnbc. here's your top five at 5. wall street pointing to a big drop at the open futures down nearly 300. is it trade war fears or is it something else? what should you be doing with your money on a day like today we get big money advice from guggenheim's scott minerd. he will join us from asia. secretary of state mike pompeo canceling a trip to russia what's his take on the china talks. you will hear from him ahead. hitting the brakes uber shares are down in the pre-market following their dismal review. hey,