♪ these are your headlines this thursday morning here in london. european markets trade lower, driven down by the automarket sector president trump plans to postpone auto tariffs for up to six months >> the u.s. president trump takes aim at china, targeting huawei the french president tells cnbc

there's no room for protectionism in tech. >> we are very much attached physically to our security, so we have some restrictions. but there is no overprotectionism, vis-a-vie any other big global tech >> thomas cook warns of a challenging summer, and brexit uncertainty dampens its holiday bookings and falling out of fashion with investors the luxury brand misses expectations as it hopes new collection also build growth later this year. good morning thanks for watching. as you take a look at how european markets are performing this morning, it's been a regtively negative start for the day across europe. in particular, you can see that

theme once again of trade playing out very centrally to all of this in term os of the decisions made by the trump administration, once again having an impact on the markets. there was some positive news when cnbc and other news outlets reported that trump was going to postpone those section 232 tariffs on autos but it seems like the decision separately to target huawei in terms of its relation with u.s. firms having a negative impact in terms of the individual markets, you can see that pain is being felt across the board you can see the ftse is down 0.2% similar story in germany, down half a percent and paris down a third of a percent. the italians, some comments from the prime minister about spending rules imposed by the european union that seems to have had a big

impact on the bond deals and you can see the market down around a third of 1%. in terms of the individual sectors impacted of course, autos down 1 2/3 of 1% that's also something we should be watching closely. the trump administration planning to postpone tariffs on new autos for six months the planned announcement will precede fresh u.s. trade negotiations with the eu and japan. you look at how those european auto stocks are performing you would have expected slightly more of a bump, but they are trading well into the red. psa, volkswagen down, as is

porsche. my colleague is in brussels. sylvia, in terms of the politics around this day to section 232 tariffs on autos, that is going to be good news for the commission and its trade negotiating team >> yes, they are not responding to these reports so far the european commission said they would not comment on this story, and they have not confirmed the fact that we will see potentially a delay to this decision however, the commissioner earlier this week on twitter, she said, and i quote, trade wars are bad for the whole world. conflicts and disagreements need to be solved within the multilateral system. so the clear message there, showing where the european union stands when it comes to international trade. but as you mentioned very well, all in all, the delay of this decision on car tariffs is a positive for the european union,

and a positive for the euro zone economy. let's not forget that we saw a slowdown in the euro area at the end of 2018. 2019 started also on a weak footing. so of course, this delay is -- removes this economic uncertainty, at least for now. i have to say, there's some frustration in european circles when it comes to trade relations with the u.s. in the sense that the 28 european down trips are ready to start negotiations on a trade deal with the united states, but the white house has not confirmed that it's also ready to start discussions i'll keep an eye on this story for you and trying to get a comment from the european commission on this story later today. so far i have to say the european commission is not commenting so far. >> also, they have been tight lipped on this discussion. we'll come back to that story later. the trump administration has

added huawei to a list of companies that cannot purchase equipment from u.s. firms without u.s. government approval and my colleague has more on this story that he's filed from china. >> reporter: what whai hhuawei f it continues to be blocked from the u.s., the u.s. could lag behind in 5g development and says trump's move brings up serious legal issues let's look how this might affect huawei huawei gets around 6.6% of its revenue from the americas, most of that is latin america but it's been absent from the u.s. market for sometime but huawei has been put on a list called the entity list, which means any companies wishing to supply huawei will need to get permission from the u.s. government. huawei has over 30 suppliers in the u.s., supplying components for everything from smartphones

to networking equipment. and necessary disruption could hit its business the third concern is whether other countries will follow suit the u.s. has been on a big campaign to persuade companies to block huawei from 5g. other countries like the uk and germany are allowing huawei to participate in 5g. i spoke to sources earlier today at huawei, that said it's business as usual. but senior management will be racking their brains to figure out what this needs for the company long-term. the french president has spoken out against protectionist measures in an interview with cnbc at the viva tech conference in paris >> we are very much attached to national security, so we have some restrictions. we're very focused on what is

related to national security, nothing more there is no overprotectionism vis-a-vie any other global tech, because we need them -- we want to be strong and create maximum jobs that's for sure. on some issues, we have restrictions, not focused on huawei, but to preserve our national security for critical reasons. but no more than that. >> at that same event in paris, my colleague set down with ibm's ceo and asked her to react to recent trade tensions between the u.s. and china >> we operate 170 countries and have for over a hundred years. there's been ups and down and agreements and disagreements so in that space, we have also been strong advocates for a dialogue to resolve these issues there are issues to resolve. so i'm hopeful they get resolved, but there's so much talk about tariffs, that some of

the rules that need to be resolved are the rules around digital trade, that there not be localization of data so those are all serious issues to be worked on. i'm hopeful that these trade talks across those things. >> are you worried about the length of the trade talks now? they've gone on for most of last year and stretching out across the course of this year. maybe june, there might be more progress made. it's taking up half of 2019 now. are you worried about that damaging business investment cycle? >> for someone like this and many big companies, we have multiple ways to operate that's what we have done for a long time. i think the thing that is important and what i people to move through is it does take up plan of people planning. all these ulterior ways are ways for people to operate. >> and coming up, my colleague karen will be speaking to the

ceo of erickson in paris in the meantime, let's stay with france and its corporate sector. bester than expected first quarter earnings a strong performance in the telecom business and thomas cook has warned that political uncertainty will weigh on profits in the summer season, after it posted an operating loss, adding it's received multiple bids for its airline unit put up for sale earlier this year. if you have a view on any of the corporate stories, get in touch with the show on twitter or tweet me directly. another one of those corporate stories coming up, luxury

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welcome back to "street signs. my colleague, karen cho, is live in paris at the viva tech conference and has a special guest who can hopefully talk about one of the top stories today, the impact of the u.s. ban on huawei and the wider network infrastructure sector as a whole. karen? >> bill, thank you very much yes, i do have the ceo of erickson with me we want to talk about your journey to 5g. we saw business had been impacted by huawei being shut out doing business we had this executive order overnight, may slam the door closed on huawei doing business

in the united states, with telecommunication and chip companies. what do you think the immediate fami ramifications are for your company? >> first of all, we haven't seen any effect with the geopolitical situation in our numbers we haven't had the chance yet to fully understand the consequences, and we're trying to analyze what this will mean i guess in a few days we'll know better our own view. but right now, we continue to do business, solving our customer's problems >> we just picked through the announcement if the hurdle is too high for huawei to try and clear, how many players are there in the united states, clear players around 5g? it's you, nokia, who else? >> samsung is there, as well so it is a competitive market in the u.s., and it has been the

whole time so it's really been a very competitive market we are launching 5g, so that is launched today in the u.s. with verizon. it's going to be followed by all the other operators in north america. and they are really taking a very early lead on the 5g development. that's what is done in the u.s., done by -- i mean, we are providing equipment to the operators there. >> investors looking at new cycles are thinking volume and price, and a story like the huawei story thusuggests that y are going to be a clear dinnki on volume. but customers do not appreciate if you put up prices what are the dynamics that you're frying to navigate here with this 5g cycle >> all technology shifts lead to shifts in the market so we need to remain focused on

getting our technology to the market, to make it solve the customer's problems. and if it does that, then we will perform well. so our focus is really continue to ramp up our rnd efforts so we lead the technology cycle. if we don't, then we will struggle so i cannot really take any other view so let's work with our customers. >> how much pricing power do you have in the u.s. market that would take out a major competitor it feels as those telecommunication companies, they don't have a lot of cash to spend on 5g, so do enough pricing power at this point? >> it's back to this question. we are going to focus on providing the technology if we can do that in a way that helps our customers grow the revenues, for example, going after enterprise, it is going to be a big market for 5g, which will create additional revenues for the whole industry

factory and warehouse automation, logistic autoization. that's going to require 5g connectivity and we believe our customers have a big revenue pool to go after. that's where we will bid to get more revenues. that's going to be very important for the industry >> what about on the chick side? the executive order from the trump administration suggested the impact on the chip suppliers. do you see an environment where chip prices could be falling in the states >> it's too early yet. i don't know what the consequences could be >> would that be welcome to you, though, the prices falling >> the reality is, at the end of the day, i think all industries, all companies need to focus on helping your customers to succeed. if we can do that, we will be

fine >> can we talk about the pace of rollout around 5g. we're seeing so many announcements around trials and telecommunication operators going live with 5g this year how much is the customer going to see 5g? >> we are seeing it launched commercially in the u.s. and in korea. and we see the swiss have commercially launched, and all of them have launched with commercial handsets for 5g so 5g is happening as we speak, and we are happy to be an equipment provider to all of these launchers. i think we're the only ones that have supplied all of the large networks >> i was curious, but consumers in the u.s. are willing to pay

more for 5g over their 4g service. how much appetite is there for an increase? >> what we see is actually the launch networks, they have a price premium on 5g. it's about 20% it's about the same if you buy a car with a stronger engine, you pay more than a car with a cheaper engine so you pay more with better service. i do believe 5g will provide a lot more benefit to the end user that will you will be able to pay for. i'm willing to get you may spend more on the coffee shot than you do on your mobile broad band for the month. so which one can you live without today? probably the coffee shop >> i don't know about that [ laughter ] >> i would be challenged as well, i'll confess

>> thank you very much for joining us the ceo of erickson, talking about the big issues of 5g rollout and all the devices here that you're seeing most of them fit into the internet category, which is a huge, huge growth space. tanld man who will connect up these devices, we were just talking to him so let me toss it back to you. >> thank you very much revenues remain relatively flat at burberry the firm initiated a fresh growth strategy on the new designer saudi retail group has launched the kingdom's largest ipo since 2014 it wants to raise up to $850 million in return for a 20%

stake in its arabian business. my colleague joins me now where he's joined by the ceo >> great to have you in the conversation, as well. omar, thank you for being here joining me here in abu dhabi omar, i wanted to start on the offer. first of all congratulations, but in terms of the pricing, this was 26 saudi reels per share or about $7 u.s. the range here, 26 to 33, so wh price at the bottom of the range? >> i think i would first like to say that we are happy with the pricing. the transaction had many firsts, as your colleague just mentioned. this is the largest saudi deal since 2014 we wanted to make sure we go out

with a price range that is reasonable for us as issuers and for investors. the ipo garnered significant demand from a mix of investors locally, regionally and internationally. and we're very happy with the outcome. >> if you look at the recent bond offering, it shows how there's a big appetite around the world fors a pets insaudi arabia were you happy with the support you received on the retail side, and could you break that down for me >> the mix of investors is 57 on the institutional side the mix of investors is 57% public/private funds publicly licensed funds, not government funds public funds, private funds and licensed financial institutions in the kingdom we had 26% from government

institutions, insurance businesses and financial institutions directly. and 17% from investors outside the region you know, for us, that's a well balanced mix of investors and shows the broad level of interests in our story that our story received both regionally and globally >> tell me about that story. what we know is that the government in saudi arabia has been investing heavily, looking for new drivers of growth. vision 2030 is an important part of that. what opportunity does vision 2030 present to you? >> i think it presents a tremendous opportunity for us. let me step back a bit our market is unique for a few reasons. number one is, we have an indigenous computer base, whether it's citizens or saudi residents, that is young,

growing, and globally connected and has great aspirations. we have a market that is undersupplied from a -- from an organized retail perspective we are at 0.4 in the kingdom in terms of organized retail formats. compared close to 2 in some of the other markets like the u.s but the point you mentioned, which is the vision. one of the vision policy objectives is to improve the quality of life for saudi citizens and residents so this includes many entertainment initiatives. i'll give you one example, which is cinemas we are launching 15 cinemas, and we'll have more in our growth assets so for us, many of these policy objectives allow us to add

concepts that in the past we could not add. whether it's across entertainment or fine dining so we're excited that the quality of the product, there's significant room for us to give the hungry saudi consumer the product that they demand >> and retail, i wanted to ask you about a couple of other issues what we see in the region is growing concerns about the u.s. influence. we see the tensions between the u.s. and iran. does that perhaps nit gate some of the impact that vision 2030 could have on the economy when you see these rising tensions in the region is it a worry for you? >> our business is a long-term business we plan for it for the long-term. and we have big faith in the saudi economy over the medium and long-term. and big faith in the saudi

government economic planning and the saudi consumer our region has always had its fair share of geopolitical tension and headlines. but the saudi economy and saudi consumer did well throughout all of these thengss you have the iraq war and many other examples, where the economy and consumer continued to grow. so we continue to investor the medium and long-term, and we try to focus on what we can control. >> and the stock goes live on monday >> it does >> omar, thank you for being here today that's the kro of fawaz group. >> comming up, italy's prime minister hits out at the eu. he says brussels has made europe poorer

we'll have the details a of this break. ♪

♪ ♪ ♪ ♪ ♪ ♪ applebee's new loaded fajitas. now that's eatin' good in the neighborhood. ♪ welcome back to "street signs. these are some headlines for

you. european equities trade lower, dragged down by the auto sector, even after president trump plans to suspend auto tariffs for up to six months. but the u.s. president takes aim at china again and targets huawei with and the french president tells us there's no room for protectionism in tech. >> we are very much attached to our national security. so there is some restrictions. but there is no overprotectionism. >> shares in thomas cook sink after the british travel operator warns of a challenging summer and brexit dampens expectations and burberry misses profit expectations as it hopes new

collections will build growth later this year. let's take a look at how the major markets here in europe on the equities front are performing as you can see, the answer to that question is not particularly well. the ftse 100 is below the flat line those numbers from thomas cook not helping, nor those from burberry in germany, trading a third of a percent down, in part thanks to the auto sector there. and in italy, where we once again add that focus on the spread, that market trading down let's take a look at the currencies the dollar has been strengthening and strengthening, involved in these trade discussions. but today, it looks like it's weaker against the japanese

wren the pound weaker against the u.s. dollar. it seems like the efforts to find a brexit agreement is out the window we'll be watching to see whether the prime minister can get that deal passed in june, when her government tends to bring it the euro trading stronger, so consistency in terms of dollar weakness u.s. futures ahead of the market open there, after a relatively positive close on wall street. the dow jones looking to open higher all eyes on the white house once again, following on from those decisions from the trump administration, both to postpone auto tariffs, national security pretext in terms of those tariffs on the auto sector again, that dual decision to slap restrictions on huawei, something people will be watching closely in the days

ahm ahead. in europe, italy's deputy prime minister has lashed out at the european union's budget rules. as he campaigned for parliamentary elections, and you're looking at his prime minister there,salvini said the regulations are impoverishing the continent. he insists he's not afraid to break the spending limits and his government will spend everything there is to spend until unemployment is halved when he talks about his government, it's not entirely his government and the prime minister responded that his party would oppose any new budget that raises public debt of the european commission have slashed in brussels.

pledging to bring responsibility and economic stability to the bloc and his socialist opponent argued a europe wide minimum wage would create economic growth timmerman said if he's elected, he will work to bring the uk back into the european project >> look at what the divisiveness of brexit has done to the united kingdom. today, the united kingdom looks like "game of thrones" on steroids and that's because of this divisive politics. >> tomorrow's headlines. >> that's because of the divisive politics. so we have a responsibility to offer propositions >> my colleague joins us live from brussels. besides brexit, what were the other topics discussed in detail last night >> there was a lot of focus on climate change, as well as taxation so i would say these two subjects are likely to be very

important for the upcoming european commission. of course, there was also a lot of talk about populism and, of course, the surge of nationalist rhetoric across the eu earlier this morning, i interviewed a candidate for the right wing party here at the parliament, and he said that it is time to bring down the main stream coalition that has led europe over the last 40 years. let's takea listen >> i'm not happy about brexit, because losing great britain definitely not helpful they have been good allies they've been transatlantic, economically liberal but any way, they will leave one day, and my group has to live without them and i think that our analysis show that we can fulfill this whole, this loss of

18 british mps very easily, because our parties are doing better than in 2014, so we can get more from our current member parties. >> what sort of coalitions are you prepared to do after the elections in order to get a majority of coalition here at the department >> we are negotiate iing negotio build some business friendly, market friendly, trade friendly that will once again start prosperity and growth. >> would you go open to a coalition with the prime minister >> it's a big question mark. i think mr. salvini has chosen a

different alliance we are pro trade, we are pro mafktd we want to open markets throughout the world for european goods and this is contrary to what he is pursuing. >> you said that the youth should be joining forces with trump when it comes to iran. what are the policies should the eu join forces with the united states >> i think the eu should start once again negotiations with the u.s. about some form of trade agreement. those talks have been frozen a few years ago. now there's a new main -- mandate to restart those talks and i think we should do that.

>> the national parties could take up to 30% of the seats here at the european parliament we'll have the clear picture in about a week's time on sunday, the 26th of may, when the results are published. >> sylvia, thanks so much. sylvia was talking to a conservative candidate for the european conservative presidency we're now joined by the lead eer and senator for rome thank you for joining us >> thank you for the invitation. >> how can you and other pro european politicians in italy go about persuading the italian people that the eu is a force for good >> well, essentially we are under fire from the soviet east

that have occupied any information channel from public tv, et cetera. salvini is everywhere, so just to fight back is not -- the people have a short memory nobody seems to remind what good both economic dimension europe has done for many countriecount. so young people take all of these advantages for granted freedom of movement, et cetera, et cetera. they take it for granted that it's always been like this and they just don't remember and their parents don't remind them that just six years ago, italy was really in ruins like

many other countries so it seems to me that it's unpopular for the moment but that is the reason why we have to continue fighting, depending europe in order to be able to make it more efficient, and because that is the only destiny we can think of >> you're talking about historical benefits of eu membership but let's talk about the future. we hear a lot from the european commission about what italy can or cannot do when it comes to spending how do you go about telling people what the european union can do in the future for the italian economy, for italian jo jobs >> i think there are two levels. one is a national level. this country is not growing in the last 10, 25 years.

no government has had the ability to make the -- we have too much bureaucracy too much -- too high level taxes. that is the reason why even italians continue invest in italy. and they make business outside so that is the national level. on the european level, i think that one of the reasons, the priority is to overcome little by little. the -- we don't have the foreign policy, we don't have a defense coming

now is the time and movement to hook forward and to try to move forward. as difficult as it is. >> we're now almost three years since britain voted to leave the european union how dangerous do you think euro skepticism in italy is for the future of the eu >> well, they are campaigning exactly on -- against europe it's very simple, it's not our responsibility of course, this is a lie and the campaign, just blaming europe for everything. unfortunately, it's not true

so you can use that tool to win this elections, but then it's almost impossible to down the country on this system so now we should leave europe, we should come back to the leader and so on now nobody is doing it nobody is claiming this lie any more so i don't think -- of course, they are -- they lack any kind of vision for the future >> let's talk about the european wide level just in terms of the potential for frag membmentation after th elections, what impact will that have on the ability to pass new

legislation? >> 25 years and the european parliament have been run through a great coalition between socialists and the pbe in so doing, they've lost quite a bit of inspiration and the sense to go forward. i think after the election, we will hear the result but the alliance of democrats can be a very important tool to change and be -- a grand coalition, who has blocked frankly speaking the european integration. processed and tried to push forward. and i do believe that by the

way, if you look at markets, we are so interconnected in the european union, that we just -- it doesn't make any sense to claim 28 small countries going one by one in their own way. so they are losing every level with the u.s., or with china or putin. so the question is, i hope that the liberal democrats, as we are, we will be able to participate and giving a little bit more push to the european construction >> thank you so much that was the former italian foreign minister and a leading cd for the democratic coalition the french video games maker

missed expectations. the assassins creed maker posted lower than expected sales and provided guidance for 2020, that came in below market estimates ali baba has mosted a 51% jump to beat expectations, as -- sales rose more than 75% during that period. ali baba forecasts slower revenue growth but expecting the impact u.s.-china trade tensions to be minimal. and warren buffett has build up more than 470,000 shares in amazon, according to a filing. amazon's closing price on wednesday valued the shares at $904 million

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in fact, what's happened may be surprisingly is that the prices of both steel and aluminum have come down, but the u.s. producers of steel in particular have been able to restart capacity they're investing in the u.s. protected by the tariffs >> in terms of that protection, how far does it go if global prices that much lower, how are they able to reinvest so much in restarting >> it's harder for others to import into the u.s. you're seeing investments in steel, in aluminum, that's a big investment coming up in kentucky

potentially in aluminum parts. so you're seeing that protection, which is the u.s.' administration objective kicking in there >> even if the margins aren't as high as producers want in that domestic market? >> you're seeing too much capacity coming back, causing prices to go down. >> let's talk about trying to prevent chinese producers from dumping. if you look at the production numbers for chinese steel, they're hitting record highs so what have the tariffs done in terms of the change in behavior, if it hasn't kucurved the level of production. >> the steel stays in china, it comes to europe. you were talking about the cost structure is different in europe so you're seeing those trade flows, not only in steel but a

number of different commodities, getting impacted by the tariffs. >> you talk about steel staying in china but if you look at the demand side of the equation, it's relatively plateaued so where does new global demand come from, if not china? >> well, global demand, you see demand in india, other countries in asia. it's growing in china, as well and indeed, as you say in china, things are beginning to plateau on the demand side of course, the absolute demand levels are still very high >> let's leave aside steel how exposed are other metals to the trade disputes we're seeing? >> i think it varies you know, aluminum we talked about. this time last year, aluminum was a big topic. we published the u.s. price of

aluminum, and there was a lot of discussion around that, because it had jumped one the tariffs, but now a year later, it's down 12% lower than last year so all of these metals are being impacted by the trade flows. >> thank you so much for joining us this morning. let's take a look at u.s. futures ahead of the market open looks like all three of the major indices will open higher b that is it for today's show in london "worldwide exchange" is coming up right now 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?

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black listing chinese technology that is what is topping your five at 5:00 this morning. president trump signing an executive order, effectively banning huawei from operating in america. we're live in beijing with the fallout. some of the biggest names on wall street are finding new love for big tech should you regulating e-cigarettes. a huge loss last quarter, but what invest ares aors are told t the losses and what your credit