the german made manufacturing pmi came in at 44.3, which is still fairly weak given the hope and expectation that we might see a bit of a rebound in some of the manufacturing data the french number was a little better for may at 50.6 again, if you are not aware, we are showing live pictures of president trump's arrival in the u.k. as he begins a state visit to the u.k. that will see him go, as i say, to the

ambassador's residence first and then there's a whole series of meal opportunities throughout the day involving the queen, prince charles and a big state banquet. >> we can see one plane, air force one. steve was mentioning some of the figures. effectively we have numbers from his last visit that is giving us some scale there was about 1,000 people in the entourage when he last came to the u.k. including 150 u.s. secret service agents. so setting about the process how big a task it is to keep the president secure while he is on the ground here, but it's not just security, it's also military communications, specialists, white house aides, a doctor, a chef, and members of the media as part of that entourage. 750 rooms booked last time if you were coming to central london, hope it's not the week to be seeking out a bargain on the accommodation front.

they will be packed out there with americans on the ground. >> i suspect they're probably staying in a different kind of hotel to the one i would normally book weekends in london, karen, but you never know so the president will leave the aircraft and will head to marine one. marine one will then take him to london as we've been watching this, we have some data on the eurozone just to get you into the final comment here eurozone made final manufacturing pmi 47.47. factory activity for the eurozone down. you don't expect to see much pickup >> what you've seen in europe, this actually fits with a number of other countries, is weak manufacturing data it's just not the manufacturing pmis it's also manufacturing production but we've got still the service tech up and you've got consumer

spending still holding up. i use the phrase holding up. yes, the global economy in april and early may certainly weakened you see that in all countries. where you're seeing manufacturing is not consumption. >> the new orders component was particularly disappointing, it seems. >> yes >> an indication there is no front coming the second half of the year. >> i think the problem is that while we have this uncertainty, which i think will continue for many months. i think, you know, you have to be over optimistic to assume something comes out of g20 on the 23rd of june while we have this uncertainty over trade between america and china with the european union, the latest one with mexico, that is going to have a negative impact on investment intentions. it's going to have a negative impact on export growth and

therefore on economic activity the pressure is going to be on the manufacturing data >> just to point out to you, we have a door open in case you are not watching the screen at the moment, we have a door open on air force one we have steps in place although the gentleman at the top of the steps who has just opened the door doesn't seem to be sure as to how close the steps are to the aircraft and whether that's safe for the president to leave the aircraft at this point we're going to stay on this shot and you can see a marine guard coming into place here so we can anticipate that the president will come down these steps in just a few more moments and then he will be taken to marine one as we understand it to be flown to the ambassador's residence. >> i was expecting carpet. they roll out the red carpet as part of the arrival, pomp and ceremony, but it doesn't seem to be there

we just have people lining up. >> it could be a bit early on. we're showing the top of the steps and the door at the moment. >> and the seal. >> there may be someone at the bottom of those steps rolling out a carpet even as we speak at this point steve, i don't know whether you can see the shots where you are, but we are focused on the top of the stairs at the moment. >> one of my favorite parts of the essex stand stead, my home county what are some of their interests? there are interesting differences about this state visit versus other state visits. fact number 621, since 1952 the kwe queen as monarch has had 182 visit. a couple on average over the last 50, 60 years. one, the president will not be staying at buckingham palace

that's no sleight against the president. that's the fact that buckingham palace is crumbling in part and needs a repair, several hundred pound repair the belgium suite is not open. other differences this time around, and i can tell you to my right is one of the most magnificent avenues in the world. it's decked with alternate stars and stripes and union jacks as well all the way down to the square right about a mile long road as well and normally, of course, you may well see some procession you see the horse guards, the magnificence of the blues and royals marching down there with a carriage potentially as well with said dignitary in it as well that won't be happening this time around. whether it's the metropolitan

police and the enormous security operation. the numbers for the 2018 visit, i've seen 25 million all i'm saying, it's a lot of money to police london and indeed elsewhere as well because there were anti-trump protests going on so normally you may well see supporters because there are a lot of supporters, let's be whowho honest about it. security forces have perhaps seen that that is not on this time around in this procession you haven't got the big horse guard. horse guards is a huge parade ground what we have got, when that marine one helicopter comes from winfield house up to the gardens

here behind the front of buckingham palace, my camera is going to get a shot of it. you know when the union jack is flying at buckingham palace, the queen isn't there. when the sovereign standard is flushing beautifully on a lovely, balmy morning, that's when the queen is in town as well we know the queen is at buckingham palace. we although she prefers others including windsor castle, that's another issue as well. when he comes here it will be a private ceremonial welcome around the back, out of the public eye rather than a great public demonstration which could be open to more process. i should say, there is a movement of protest rs to follow trump. stop trump resistance. those that follow trump, what the protesters are going to do

he's trying to create a wall most of the time that will be flying by marine one. >> central london. >> yes >> enormous 9 time cadillac. jack, you remember because you were standing in a field, he was flying in and out of marine one. this time it will be a little bit different on the ground. a bit of a security nightmare. >> there will be something in the shift in the meetings that the president engages in, steve. theresa may will meet with president trump but that won't happen until they come and visit. that's interesting in the

context of a state visit at what point you get the head of state to head of state meeting theresa may will be bowing out on friday effectively. such is the way that the conservative party has conspired to fix these events. theresa may managing to hold on for president trump's arrival. if you are not looking at the screen, let me just tell the audience president trump and the first lady, melania, are now at the top of the steps they are waiving to the cameras and are now beginning to make their way carefully down the sti stips. as you pointed out, kash, we don't see a red carpet that was an oversight. >> very similar to this trip, they will walk next to the yellow line that's on the ground they are slightly off the ground

melania trump dressed beautifully. dressed in a suit and blouse combination. so much of this -- >> i don't think you have to do that i would help with the wardrobe choice. >> i must be honest, the treasury secretary behind. >> mnuchin. >> the third down the steps i think, which is interesting for those who watch these things closely. the course being an estate breakfast. we will see at various points guards of hon ners, guards of the impressions. he will have lunch with the queen. he will go to westminster absolute by to come, we'll have a little later on prince and his

wife and all of that will lead into the main event, i guess, here in the u.k. who will get the opportunity at the staet banquet. >> can i describe it as a disruptive visits? a lot of the -- they might feel the presence of the u.s. president, more than back in 2018. >> as i came to 4:00 this morning, a number of roads are closed so actually the challenge of getting around if you're going by car is more difficult >> he provides for 18 million pounds for this visit. it costs about 14 million pounds i don't think that's inflation,

i think it's addition to staffing others and the president now making his way across the tarmac. to marine one and he will take that helicopter for the very brief flight into central london to the ambassador's residence where steve was pointing out he will be staying rather than in a very expensive hotel. >> not an airbnb. >> no, not an airbnb i don't want to reflect on this too long let's not take away from the moment but as he arrived there were several messages from his official twitter account calling the london mayor a loser the london mayor, as we know, has made his views on the president fairly clear and has also approved the flying of this

large blimp that caricatures president trump and for those who like to keep a close eye on the royals i don't know why he was involved in this. the president has denied that he ever made those comments dismissing those remarks as fake news >> the question is whether the duchess takes part in any of the official proceedings this week it seems as though she won't any confrontation between the royals and the trump side should have been resoft. >> >> i'm all right. >> i'm aware that the meeting is running overtime here. >> right thank you very much. >> we're off to your meetings and the rest of the day. thank you so much for being a guest host this morning.

>> thank you. >> at quillvestwealthmanagement. the rotors stopped turning here and on the president's eye continue ner rare ri with the queen and he is staking out buckingham palace. >> has a very different feel to it over the three days of this visit. it's a three-day state visit the first day should be about formality. it's about the ceremonial, the gun salute as well which may or may not happen, about the inspection of the guards which happen at windsor castle hopefully no faux pas this time around standing in front of her majesty, the queen as well which is something the president may have done last time around as you mentioned

it will be interesting how the gentleman of sussex. business leaders' meeting. jeff staley, yaem wormsly. glaks yes smith guideline, very important u.s.a. references. referencing the fact that not w nato when i pushed about him, i said the europeans were not spending as much as the president wants the norwegian prime minister was left bamboozled after he was

lambasted for germany's lack of spending so tomorrow business meetings. as you mentioned, a couple of meetings with mrs. may but where can they go? as of friday she is very much a care particularer so where you can go with serious conversations about ire ran, about climate change, about huaw huawei, about 5g, any of these issues, trays, remains to be seen incredibly limited haven't talked about a lot a big photo op for the president having the president hobnobbing with the whoils as well won't do him in any harm in the re-election as well. let me hand it back to you now from buckingham palace. >> steve, terrific

thank you for that as we watch marine one taxiing down the runway and we'll bring this to a close. that doesn't mean the end of our coverage "street signs" kicks off with julianna. >> thank you very much, jack coming up on "street signs", first i want to draw your attention to one of the big corporate stories of the day infineon said it will buy cypress for $9 billion including dubt as they look at cost and revenue synergies. this offers a 46% share premium on cyprus. infineon shares reacting negatively down 5 points, 8% very pleased to bring in dr. venn schneider

thank you for joining us give us a little more detail around your rationale, how this business is going to pit into your portfolio good morning, jewel yeah an announcement we called it a landmark step for infineon going forward accelerating and strengthening of our growth which we haven't sen it there is the real and the digital world. cypress is ideally suited to enhappens our strategy with its leading suit of micro controllers and connectivity components as well as software ecosystem, it will broaden our scope significantly. combined with our world class

power component, sensors are -- and security know who he, and just in a nutshell, the new infineon been a 1,000. the total of the market is 45 billion plus for years the eighth largest securi security. >> now the price you paid for this deal represents a 46% premium. your stock is down right now nearly 6%. how do you justify that price to investors? >> yeah, so the price has a lot of different elements to it. first of all, cypress is not new to us. this is a company we are

following for a long time. if you look at the price mathematically, yes, i can confirm the 46%, but if you take the significant revenue synergies which we consider to be in the magnitude of 1.plus 180 million cost synergies we we expect to be done. we have announced that we increased our so-called target operating model which is a combination of growth and of cap exspend. we have improved the growth number we have increased the profitability number and we have decreased the cap ex spend so the cash flow generations would also be public the last one, julia, there are these transactions in the

market this is a scarcity transaction and if you compare it with other transactions in the semicondu semiconductor world, 40% is not out of line and revenue is a competitor ten days ago and bought a kpishl. >> well, terrific. thank you for joining us, dr. sven snider, ceo of infineon. >> we are seeing the sector trade in the red saml down the very shyest of what goes on. coming up on the show, president trump hints at a potential u.k. trade deal.

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well, a very warm welcome back to "street signs. president trump has just arrived in the u.k. for an official state visit. he's got a lot lined up in the days ahead of him, and i want to get straight out to steve who joins us now can you set the scene for us steve, what can we expect from president trump's visit? >> reporter: everything, julianna for those who like pomp and ceremony, today is your day. as we've seen, air force one landing in stanstead in london it's not busier. it's a better place to land dignitaries. the traditional place where it lands. the white hawks and the sea kings that carry them domestically there northeast which is where we sold

them and the last july what is woody johnson's ambassador residence not staying in buckingham palace it's under construction. state banquet this evening you have meetings with prince charles, prince of wales and a duchess of cornwall. you have a visit with queen andr andrew you have a private lunch with the queen. then tomorrow business meetings with leaders the business leader's lunch is

hosted by theresa may. this is her last official job as the prime minister as well she was still there until late july she is resigning this friday the memorial ceremonies on the 5th of june of portsmouth and the 6th, if you've ever been to the military seminar place and yun would hao looks back, it's got a very different feel over the next three or four as well i'm saif to say in various steps. what i expect him to say about brexit, about trade deals, i

think he's performed very much to type. anything he would have said, i don't know what people think he would have said. >> steve, thank you very much for setting the scene. meanwhile, i am joined now on set by professor michael cox associate fellow, u.s. and the new england affairs. >> perhaps politicians will use the opportunity to go abroad president trump tends to bring domestic politics with him abroad. >> yes. >> what do you hope the president is hoping to get >> actually, his approval ratings in the u. states are running pretty well. 37, 38

this has two, the symbolic and the rear coming to the united kingdom, meeting the queen, the d-day kmen more rags anglo american lemted. there's also the political side. this is a highly political animal he likes brexit and he who want this who are 151% behind brexit. this is may. those will be a week for those politicians who are 100% on the brexit line. he's going to involve himself. >> i want to come onto the brexit point

theresa maif as she has spoken about the inimportance of the intelligence sharing and now with huawei front and center and the tensions between the u.s. and europe, president trump is potentially going to threaten limited intelligence sharing with the u.k. if they decide to further their relationship with wa tear, particularly around would made it clear. it's the british that are quite divided. he's made it clear, and frankly we are depend dint on the share of this. got into the nature of the special relationship it's fine. english language history. >> there's other parts of this special relationship there's the military side of it.

we dpepend on the united states for our weapons and we are closely tied to the united states only 11% approval ratings for trump. the fundamentals are still very important, especially for the group there. >> i want to come on to brexit can you do expect president trump to get involved. he's already weighed in. >> maybe he doesn't even have to meet with them because he's already made his particular views clear. he's made it quite clear how much he likes bojo, boris johnson. he's made it clear no brexit there may be a private dinner.

there may be a private meeting may be a telephone can have digs the thing he criticized obama. accused 2016. >> thank you so much for sharing your costs, i want to give you some breaking data just out for the u.k. we have the u.k. manufacturing pmi just crossing the tape it came in 5949.4 for may versus april at 53.1. this is the lowest according to or ken administration. critically new export orders came in at 46.2. that is even worse than the contraction you saw in april,

which was 48.1 that is the lowest since october 2014 consistent with a renewed downturn in u.k. manufacturing well, coming up on the show, fresh doubts around angela miracle merkel as she's dressed down (osamah) cancer is... the ugliest disease mankind has ever faced. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer. (osamah) successfully treating it still remains one of the most enormous challenges facing us today. we realized that, if we developed the technology that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it.

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welcome back to "street signs. i'm julianna tattle balm and these are your headlines president trump lands in the u.k. for a state visit tweeting insults to london mayor while pledging to be a great friend to the united kingdom. european equities follow asia lower amid escalating trade tensions after the dow logs the worst month since december and global markets shed over $2 trillion in may. beijing points the finger at washington saying the u.s. is solely to blame for the collapse of trade talks in a white paper that says trump's tough stance won't solve the dispute. and infineon shares sink to the bottom of the german 600

after the u.s. agrees to buy cypress semiconductors in a $9 billion deal we here in the u.k. are very focused to president trump's advice the there's a lot going on in fin tech investments are over $700 million. according to research firm g.b. insights they saw three new fin tech firms formed in europe transfer wise recently became most valuable financial technology startup overtaking british startupback. elizabeth joins us elizabeth, what can you share with us from this con sflens.

>> good morning, julianna. we are here at money 2020. the future of money and currencies europe is a big fin tech hub but it isn't home to historically as many fin tech unicorns i'm pleased to say we are joined by one of new york's rare unicor unicorns you are the co-founder of oak forest your valuation is $2.8 million do you expect more from soft bank >> the question is do we need more we're probably way over capitalized for our plan already so whether we need more capital is the question. if we needed more, i think we've got some pretty strong investors around us. the 440 million is good and we

have gic, et cetera, we have deep pockets. >> what do you plan to do with that money specifically? is it more specifically focused on using it and allocating it? you're taking a step back? >> the focus is very much executing the business rather than raising capital and the focus within that is really the u.s. market for us within the u.s. we've been operational for just under a year now we have a team of 20 and we're scaling that team continually. we have set up our own origination and a platform of loans if they so wish. >> one of the challenges with the u.s. market is not just the banks, it's also tech monies that are making big payments into the banking industry.

how do you view the facebook and app apple, amazon moves into banking and payments >> so, look, i think big tech has always been a very strong competitor to come in and own parts of our services chain and i think they're doing that very successfully in certain areas. within the consumer area, within small business as well, whereas, where our focus is is really growth businesses. lower middle markets so the top up 3er end of e. companies looking to borrow $1 million and upwards versus companies looking to borrow 10,000, 15,000 when you start looking at ticket sizes over $1 million, we feel like a different approach is needed that's the area we feel -- >> what's stopping the big tech companies from getting the

advantages they have the capital and can easily suck up smaller companies. can you compete with those big names? >> my general view on that, if you play that same logic through all the way, there would have never been a facebook or google, et cetera, because there would have been an ibm or microsoft that would have won everything the reality is they have developed in the past few decades and developed to substantive scale. they have put the entrepreneurial energy behind executing on a particular fish and doing that highly successfully, whereas, for those to get entrepreneurial energy into any one specific area when they have 100 over have you been approached by partnership or takeover? >> i'm not going to talk about

takeovers. in terms of partnerships, we have. >> can you give us any ideas hon? >> i could but i'm not going to. >> the vision fund backed companies have now gone public, uber being the most notable. maybe not as successful as most. have you rethought any of your plans in light of what's happened with uber >> i can only talk about my own business and i'm not going to talk about the public markets because i'm not an expert. we've built a fundamentally profitable business and which is making at least 10s of millions of profits today and obviously growing at a clip on a profitability basis as well as revenue basis. when i look at the fundamentals that we have in place and i

compare that with market investors, we feel like they're fully aligned. so at least from our own view, we don't change any look at it. >> you're a company that is profitable at an earlier stage thank you so much for joining us we will be bringing you headlines all throughout the next day here on money 2020. stay tuned as we talk to you about money and payments. >> thank you very much meanwhile, in german politics, the leader of germany's social democrats has stepped down after they suffered problems last week andre a's resignation looks at the area in berlin i believe you're joined by a guest that can weigh in on where

things stand in germany. >> reporter: thank you so much, leanne a indeed, it's a little bit chaotic which is what happens over the weekend what her stepping down means to the grand coalition, i'll discuss that with otto ticker. a management of the spd. thank you very much for joining us what do you think? do you think her stepping down means that the grand coalition comes to an end? >> it depends whether you commit suicide or if you recognize that you have to change and this is your possibility they have 2 1/2 years. if they find the right way, if they decide what they really want, there is a chance that the -- well, let's say still quite big coalition has a chance

to continue. >> reporter: but it looks a bit helpless we are hearing they are looking at a trio to govern the social democrats for temporary final but, still, is there a credible way out of that crisis >> i think there is only a credible way out of the crisis if the party really decides in the whole where they really want to go as a party social democrats if you look where they've gone, i do say as somebody who was an opponent to them, a lot of things in the 50s that they desired to do. wealth, security, education for everyone and so on they have lost their way they have not decided yet do you want to help those that want to work or come up or do we want to protect every little minority. because of this split there is no chance that they're earning their stay this is a result that social democrats all over europe have

if they don't find a leadership person that they trust, it's a terrific job considering what she had to do in the parliamentary group as well as in the party if they don't fight that person, i say that is just red outside but just air inside. >> if you're like an international investor, you look at europe. theresa may is out we have chance laos out. we have the crisis here in germany. do you think that political crisis in germany is endangering political stability here >> i don't see that. if we see the outcome which was the decisive moment that they lost andre a, you can see it is not vanishing to the extremes on the right and left the problem in germany is things are running fine

weather is good. let's kick this one government out, let's find a new one, new kpen nents we have not realized as fine as it has been. do they change do they have an idea of when for the future and that could be as always, if determine mans do things right, they do it right they have to know what things. >> thank you very much, otto >> reporter: that's it from here today. we are probably not heading into a full-fledged government crisis this week. we will here a lot of contrarian views coming out of government circles in the next few days. >> thank you very much for bringing us that insight

the u.k. campaign has been launched he says now is the time to unite our country and society. we need to support wealth creators and business. launching his leadership bid is a rally cry. check it out on twitter if you are interested in hearing more. meanwhile, let's take a look at european markets. we ended on a negative note. president trump made a surprise move imposing tariffs on mexico. now this morning our block is continuing fairly evenly spread. the ftse 100, every region trading more than half a

percentage point lower let's shift gears and look at u.s. futures we are looking at a negative start there. difficult day on wall street they're looking at what it means for broader trade. it looks as though that weakness is going to continue into the start of june. let's take a look at italian yields as well italy has been sharply in focus in the wake of european election results. a lot of dispute around brussels and rome reigniting with the commission looking to impose their disciplinary action. we saw the yield curve move higher.

the italian prime minister has called a press conference. he will call for the ruling party to speed up government action ordeal with his resignation. that yield so far reacting okay to that pulling back a little bit. that's on the back of being higher in yield. speaking to reuters, he's confident they will avoid disciplinary sanctions and they will be below a government estimate of 2.4% gdp pierre moscovici will extend an olive branch they will resol of the budget dispute. now president trump arrives in brittain pledging to be a great friend to the country.

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president trump has arrived in london for a three-day state

visit. steve sedgwick joins us at buckingham palace with more on this potentially momentous visit. steve. >> reporter: it is a momentous visit. there's only been three united states visits in the 60 plus years since president trump has been here. there have been two state visits on u.s. presidents, george w. bush and then back in 2011 mr. obama as well. it is momentous. the fact is there is controversy whether there should be a visit. our viewers, go have a look at those comments on cnbc.com he said he didn't want to be at the state banquet. he's turned down his invitation

because as in his words, president trump is not working in the benefit of the united kingdom. others say it is an important relationship there are controversial comments from the president. >> i look forward to your continued coverage of this visit over the coming days let's take a quick look at u.s. futures. we're in for a negative start of trade. that is it for today's show. i'm julianna tattle balm "worldwide exchange" is coming up next. ♪

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it is 5 a.m. here at cnbc, 10 a.m. in london where president trump has just arrived for an official state visit. we will take you there live where he had some interesting words for the mayor of london. china blasting the united states on trade but at the same time signaling they would like to restart talks we are live in beijing with what's really going on. call it salsa inflation in fact chipotle raising the red flag on possible tariffs with mexico. more changes at 1600 where president trump's top economist says he's leaving the white house.