welcome to "street signs." these are your headlines renault shares slides after the proposal is abandoned, blaming french political conditions for thwarting the deal which would have created the world's third largest automaker. european equity markets move cautiously higher amid continued trade tensions with trump.

germany's ten year bund yield is hovering near a record low as investors await further details of the third program president trump is due in normandy this hour to join emmanuel macron and theresa may to commemorate the d-day landings well, let's get right in to one of the top corporate stories of the day and that is around fiat chrysler. as you can see here beside me, the feuate shares are opening 0.5% and that's after the merger was abandoned they suggested to renault. they blamed the french government for thwarting the deal and saying that political conditions in france would not create an environment where the

deal could take place. now, this would have created the third largest automaker in the world. so now investors asking what happens now for fiat chrysler? and i'm very pleased to say that we have a guest joining us in auto -- an auto expert to help us make sense of this news so we have got anna marie baisden. thank you for joining us this morning. so we have now heard that the deal fell apart due to the french government really meddling here. first question to you, is the deal really dead >> hi, joanna. i think it is. it was always going to be difficult because there are so many moving parts involved in this i mean, the ownership structure between renault was an issue and then outside of the companies as you said you have the french state involvement.

so i think it's going to be too difficult to pull off now. but that's not to say we won't see more tie-ups of some description. but i think this deal is probably dead now. >> i want to come on to the issue of potential more tie-ups in just a moment but just going a little bit further on the renault fiat deal when the deal broke we had an analyst on this show who cited valuation as a potential key hurdle for the french government now it seems as though the french government's issues with the deal revolved around job assurances in france but do you think that things would have been different if we had seen a different deal structure and this one put renault's core business at zero value. >> i would say from a political point of view, the number of jobs involved and the number of facilities was probably a bigger consideration for them particularly when you consider

upcoming elections and, you know, this has always been an issue for the french government is trying to protect jobs. al so i would say -- so i would say that was a bigger issue for them than the whole valuation. because if you think of how many facilities that fiat chrysler would bring to europe, that was going to be another difficult part of coordinating the two businesses. >> a huge amount of overlap in the businesses that the complementary nature of the two companies was part of why the rationale for the deal was so strong so if fiat chrysler can't work out a deal with renault, does that mean that renault is destined to remain stand alone >> renault or fca? >> renault. >> i think at the moment it would be difficult because of renault's alliance with nissan it's going to be difficult for any of the companies to join with them in merger terms. i mean, absolutely other types

of cooperation are possible. but i think this is proven how difficult it is when you get into the weeds of trying to join the ownership structure of the two companies. >> putting renault aside and looking at the fca part of this deal, earlier this year there were reports that peugeot was interested in a deal with fca. do you think they could step in at this point or peugeot being french are they poised to see the same kind of resistance from the french government? >> it could be easier for fca because they don't have the other alliance and the already difficult ownership structure that that brings with it and they have an existing partnership with fca unlike commercial vehicles which is successful they talked about increasing investments at the beginning of the year so there's at least some basis there for a bigger cooperation between the two. and to be honest, other potential partners, you know, the field is narrowing now

so that could be a good one. >> in terms of the broader opportunity for consolidation in the auto space, when this deal broke just last week we saw the whole auto sector bounce on the back of this, not just fca and renault but the whole european auto space do you think that positive reaction could give companies who are considering consolidation the confidence they need to proceed with some of the tie-ups they're likely considering at this stage? >> it's possible when you see that kind of positive reaction, yes. because it's such a difficult operating environment for carmakers at the moment and if you see this opportunity to lower costs and to help you move forward with things like r&d and sourcing at a lower cost and improve your margins then absolutely it seems like a good opportunity. but i think it's a matter of picking your partners carefully as we have seen. because when you start getting into moving beyond operational

and talking about ownership then it gets more difficult. >> all right well, thank you very much for joining us and weighing in, head of autos research at fitch solutions. now let's take a look at european markets and see where things stand the stock 600 up 0.5%, adding to yesterday's gains when the benchmark saw 0.38% gains. rising tentions between italy -- tensions between italy and brussels and it was one of the underperformers yesterday. let's look at the regions to see how italy in particular is faring this morning. the ftse is up about 1% now, outperforming the prodder european markets recovering the losses we saw yesterday. of course the dispute remains in focus between brussels and italy with salvini weighing in in response to the european commission's comments yesterday saying that italy doesn't need the eu's help. doesn't need the eu's money but

so far italian investors shrugging off the potential face-off we could see there. let's look at the sectors now as well fiat chrysler and renault, sharply in focus in the auto space and the auto sector is up 0.24% today. peugeot within the early outperformer as we just heard there from our auto's guest. peugeot could use this as an opportunity to step into the fold and potentially look at a tie-up with fca. utilities at the top of the board there. the defensive sector up 1.3% and just behind them chemicals up 1.1% let's look at fiat shares to see how they're trading this morning. they have actually turned positive after initially dropping at the open up about 0.02% so basically, flat on the day. of course, the conversation has now turned to what happens to fiat and perhaps investors are thinking about what other

tie-ups the italian american automaker could pursue the deal fell apart due to political considerations in france so perhaps fiat chrysler looks beyond france for another partner. let's step into the macro now and i want to give you some fresh comments from president trump. he has reit rated his threat to hit china with another $300 billion of tariffs amid heightened trade tensions between beijing and washington president trump made the threat as he departed from ireland for france to attend d-day commemorations you have been covering president trump's visit there, and what do you make of the comments from ireland not only on the trade situation between the u.s. and china, but also on technology and the threat of huawei he takes so seriously >> well, you know, the president stayed last night in his private golf resort, 30 miles northwest

of here. he arrived on one of the presidential helicopters to the airport behind me over an hour ago. before he boarded air force one to travel down to normandy, he spoke with the pool reporters who traveled with him. they asked him about trade and about tariffs and he said -- i'm going to quote this to you that they're getting there when it comes to 25% on the $250 billion and quote, i can go up another at least $300 billion and i'll do that at the right time. but i think china wants to make a deal badly he said it was a similar story with mexico, he said the mexican government and their senior representatives were meeting with some of his officials in washington yesterday he says that there has been some progress but quote, they have to step up to the plate that baseball analogy you'll know trump told reporters perhaps they will and that quote something pretty dramatic could happen a lot of people he pointed out including members of the u.s. senate have been opposed to this idea of tariffs on mexico.

that's something he says is because they don't understand how those tariffs would work and of course the opposition back in washington, d.c. has centered on the idea he's trying to tie together two different issues, immigration and national security and the economy and tariffs. in terms of his comments yesterday after meeting with the irish prime minister on huawei, the two leaders were asked about whether the u.s. should be more concerned about the fact that the irish government is allowing huawei to continue to roll out 5 g network infrastructure here. mr. trump said they were working on that, the irish government said meanwhile they were taking things under advisory. they had an open mind when it comes to advice on huawei and those two mobile carriers said they'll continue to roll out this 5g opportunity across select parts of the country this year. >> thank you so much for that update as you said, president trump is on his way to normandy for the second day of commemorations

marking the 75th d-day anniversary. there he'll be joined by french president emmanuel macron and theresa may who began paying their tributes this morning. hadley is joining us from normandy what are the commemorations going to look like today >> well, in about 20 minutes or so, juliana, we expect to see u.s. president trump arriving here at the cemetery this is of course the cemetery that holds over 9,000 americans who have been laid to rest here. many who passed away during the first wave, that first d-day operation, 160,000 members of the allied forces that came over by land and sea and air and this is about honoring the past, but also about moving the dial forward when it comes to the politics as well because president trump and president macron will be both meeting in a bilateral today as

well as attending the ceremonies and laying wreaths and commemorating the event with speeches but many folks are very, very focused on what that means for the continuing relationship not just between the united states and the allies but the broader allies as well you can't get away from the politics here but i want to move the conversation a bit forward in a few minutes we'll be joined by former u.s. secretary of state john kerry we'll talk not only about the d-day commemorations but i'll ask him about a comment i got from mike pompeo not too long ago. listen in. >> we'll look forward to hearing how john kerry responds as you said to the comments from mike pompeo president trump has said not nearly enough progress has been made in talks between u.s. and mexican officials. discussions are set to continue today after yesterday's meeting over migration and trump's threatened tariffs ended without a break through.

the mexican peso slid as much as 1.3% against the dollars after they were delivered a double blow due to increased risks around the trade tensions moody has down graded the outlook on the country to negative citing less predictable policy making. interesting to see the impact that these trade tensions are already having on mexico elsewhere, kristine lagarde doesn't see a widening trade recession, but the imf managing director warned that an escalation in tariffs between the u.s. and china would hurt already fragile growth in 2020 well, remember you can follow us here at "street signs" on twitter and tweet me directly if you have any thoughts on what we're discussing today, in particular emanating auto sector, one of my favorite topics who is in and out of the

blue chip index following the ftse's latest review we'll have more after the break. ♪ ♪ applebee's new loaded chicken fajitas. now only $10.99.

applebee's new loaded chicken fajitas. mno kidding.rd. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started.

air force one is due to land in normandy as president trump attends commemoration events for the 75th anniversary of d-day. as you can see there on the tarmac, waiting for president trump to arrive he left shannon a little while ago and he's due to arrive very shortly. now, we will -- the potus -- the president of the united states may walk to omaha beach for a view there he will join president macron and theresa may who are already there attending an inauguration ceremony for a memorial to honor the troops who died in the battle of normandy d-day, the start of the liberation of western europe and hundreds of veterans gathered in normandy for the anniversary of the largest combined land, air and naval operation in history so quite a historic day to be commemorating. let's get back to markets.

the ftse 100 has gotten a revamp following the blue chip's index's latest quarterly review. easy jet was the highest profile casualty to drop out while grosser marks and spencers remained part of the group aviva joined the flagship index and meanwhile shares in woodforde patient capital trust are trading lower after st. john's place said it was terminating the relationship with the closed end fund st. james' place said none of the funds were part of the equity income fund which was suspended after increased outflows two have been appointed to look after the funds. meanwhile, the financial watchdog is examining woodforde's decisions to list in guernsey and they're talking to the stock exchange now i'm joined on set by eric moore, fund manager from mytton group. thank you for joining me this morning. >> my pleasure. >> firstly on the back of what we have seen unfold at woodforde

over the last week or so, clearly high profile development for uk fund managers uk investors so give me your sense of what kind of impact this could have on the uk investment community. >> well, we have seen a few similar incidents where you have unquoted or unlisted assets owned within open ended vehicles so after the brexit referendum a lot of properties open ended investment funds were in trouble because they can't sell the buildings so people want to take the money out and the underlying assets aren't liquid similarly at gann, they had problems with the bond fund and the latest with woodforde. the regulators are alert to this as an issue. i think there's an ongoing investigation. you know, rightly so what i hope is there's not too much of a stable door slamming you know, it's very important

that small companies can get access to capital and that you know funds are able to own small companies and we're not all reduced to owning stocks in the ftse 100. >> a really good point about the benefits of investing in companies like the ones that woodforde has been invested in because they're of the nature you have described, they're small -- >> yeah, investors' interests and in the market's interest that people can get exposure to small companies. but getting that balance right and i think part of woodforde's problem, it went deeply into unquoted and it would make a big difference between unquoted and quoted businesses. >> those who had funds with woodforde who are trying to pull out or potentially could pull out when this suspension is lifted, do you think that we will see this accelerate the shift already under way away from active management toward passive? >> yeah. i think it's an ill wind, it does no one any good

i worked for an active fund house and we're very proud of active management. we are looking to beat the bench marks and think we can this incident is definitely going to put people off and i think the risk is that savers are going to keep their money in the bank or under the mattress which is a bad thing because you know they won't get the returns they need in the long run or possibly accelerate the move into the index nation which is a shame. >> now i want to come back to active management. of course, that's where you sit. but lastly on woodforde do you think that a fund like this can recover from the reputational damage that this event has created? >> i think it's going to be very hard and you saw the news that st. james' place took away a large segregated place and so i think it will be a long road back and i think probably the story is going to run and run. >> let's get into the views on the uk market as an active manager.

would you say that uk stocks right now are cheap? are the yields attractive, is this a place you want to be? >> so i run an income fund and from an income point of view, the yield on the stock market is quite high so at the end of may, the yield was 4.3% which is a lot. it's a lot compared to its own history. and it typically trades within a range of 3 to 4% and an awful lot compared to what you get out of bonds or cash the ten year guild is 1% so the risk i suppose would be around -- is it a red flag the yields are high because it suggested that dividend cuts are coming and we have seen some in recent days and weeks. vodafone, spencer's. we have seen some high profile cuts but overall looking across the whole market the dividend health of the uk equity market is okay. so at the starting yield of 4.3 is a good place to start. >> i want to come back to your comment on dividends in a

moment i want to highlight that air force one is landing now in normandy and then president trump will move to marine one and he'll be taken to the american cemetery for the commemoration of d-day so we'll be keeping an eye on that over the coming minutes eric, i want to come back to you and what you're saying on dividends. as you said, we have been talking about the potential for more dividend cuts after vodafone cut their dividends do you think we'll see the coal and mining and gas cut their dividends? >> no, as you say the big sectors are looking in good health so royal dutch shell who has the biggest single contributor to the overall markets income, i think they single-handedly are responsible for 13% of the income for the whole stock market which is unhealthy. it's important, but they have a

strategy update earlier this week and they, you know, they reemphasized their commitment to generating an awful lot of cash and handing it back to shareholders and are looking to grow in the term and $60 oil which is where it is now. if you thought that, you know, for some reason oil is going to be 30 bucks then shell will have a problem. but so -- you know, the income of the stock market is relying on commodity prices and we know that commodity prices can zig and zag around from where we are right now, the big sectors like mining and banks which you mentioned, they're coming back to paying dividends in a big way kind of symbolic that royal bank of scotland a big bank who had been in the eye of the storm through the credit storm, they haven't paid a dividend crunch for ten year longs last year they came back not only with a decent dividend but a final dividend the banks are looking to hand it

over and it's a big sector and that makes up for the cuts you're seeing elsewhere >> how do you trade the banks though that's an appealing set-up, but in the context of the uncertainly that comes with brexit what do you think of banks as an area to invest >> so the banks are in the eye of the storm in brexit and plainly that's not going so well you know, this far so i think it's still right to be a bit on the sidelines with banks. the positives are you have been through the ten year regulatory morass and the capital requirements are not longer accelerating up and they have enough capital so that's a positive and getting through the misdemeanors and fines, particularly in the uk payment protection insurance, the mis-sellings so lloyd's, they had to give up a lot of money that could have gone into the dividends and hasn't the bond yields are very low, yields are very flat

that's a bad environment for banks. >> hard for banks to perform in the environment. >> but from an income point of view, their instincts are generally good all the banks they want to be boring and hand it over to shareholders that gets my attention. >> well, a good point. the instincts are good that was eric moore, fund manager at mytton group. well, still to come on the program hadley will be talking to former secretary of state john kerry live from normandy. stay tuned for that interview next. and we leave you -- you just saw there some live footage ahead of the commemorations. president trump is heading over to join the commemorations shortly. (danny) let me get this straight.

after a long day of hard work... ...you have to do more work? every day you're nearly fried to a crisp, professionally! can someone turn on the ac?! no? oh right... ...'cause there isn't any. here- (vo) automatically sort your expenses and save over 40 hours a month.

without you, we wouldn't have electricity. our hobby would be going to bed early. (vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours! (vo) quickbooks. backing you. you're here to buy a usethat's smart. suv. truecar can help. it's great for finding a new car, but you already knew that. it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. so no matter what you're looking for,

there it is. this is how buying a used car should be. this is truecar. (upbeat music) ♪ there is air force one in front of you on your screens, it has landed in normandy as president trump attends commemoration events for the 75th anniversary of d-day. we are awaiting the president stepping out of air force one at any moment now he left shannon just a little

while ago where he visited the irish prime minister and of course today in normandy we are commemorating the key events in the operation at d-day which started on june 6, 1944. this is the anniversary of the largest combined land, air and naval operation in history so really a monumental day in history. d-day was the start of the liberation of nazi occupied western europe it was the coming together of several nations around the world and that's what we're seeing today to commemorate those events president macron and prime minister theresa may are already there. they joined the d-day veterans in northern france this is the second day of events to mark this 75th anniversary of the normandy invasion. donald trump on his way from shannon to join them the prime minister, theresa may and macron attended an inauguration ceremony for a memorial to honor the british troops who died in the battle of

normandy a lone piper played to mark the moment when the uk soldiers first arrived on shore so that took place earlier today. we saw president macron and theresa may mixing with some dignitaries who are also there to commemorate the event as i said, this is a huge day in the course of history. the largest combined land, air and naval operation in history so quite an event to mark and since president trump arrived on monday, a lot of the focus has been of course on the protectionist view that president trump has taken in the course of his presidency and we have -- which has seen the united states go further and further from a lot of the allies that came together back in 1944, 75 years ago today so it's -- it will be nice and interesting to see them all coming together in normandy. you're just looking there again let me remind you at air force one. president trump, he is set to

step out any minute now, coming from shannon and there he is, exiting air force one. melania trump, the first lady, just behind him. they came from a visit in ireland before this and president trump is now going to head to marine one where he will be taken then to the american cemetery in normandy this is all of course to commemorate the d-day which was the start of the liberation of nazi occupied western europe but this is the 75th anniversary of this major event in history this major operation there he is, greeting some on the ground president trump and the first lady there at the airport. so he'll maybe his way now to marine one and then he will join president macron and theresa may for the commemoration. well, also attending the memorial ceremony is former secretary of state john kerry.

now hadley who is joining us in normandy. >> hey, good morning that's absolutely right. i'm joined by the former u.s. secretary of state john kerry. >> good to be with you. >> welcome set the scene for me today because on the sidelines of this, this is about commemorating a momentous occasion, but at the same point it's an opportunity potentially for the u.s. president to sit with emmanuel macron and other leaders from europe and perhaps find some kind of common ground. how do you see that playing out? >> i don't think that's what today is about i mean, i think that there will be common ground because of what we are celebrating in a common fashion which is the fight and remarkable sacrifice for democracy. the fight against tyranny, fascism, authoritarianism and there are challenges in europe which can serve to remind people what was fought for 75 years ago, what has been brought to europe over the 75 years this has made an extraordinary

difference to the peace of the continent. that is what the eu is created to do, was end the killing among europeans and build something for the future around a set of values that all of these guys were willing to die for. >> is it concerning to you the level of discourse right now between the united states and european allies and nato allies? >> well, again, you know, i really don't want to get into sort of the politics of what's happening as much as i think - >> can you avoid it? >> yeah, i think today is a special moment the chaos that was enveloping every ounce of what you see out here as people were fighting for their lives, fighting for principles, is what today is about. and the willingness of people to get out of the small boats and run across an open beach and see their friends fall beside them and then maybe fall themselves and that is the ultimate -- we say the words ultimate sacrifice. we don't always tap into what it

really means these -- this moment, this place which i think is sacred ground is a place where you can really tap in to the unity of spirit and values that we fought for here and that have carried us for 75 years and the message is automatic out of that. that you need to be focused intensely on the future and what it is we have to do to make sure we live up to what took place here it's a tall order, but it's an important one right now. >> as a veteran yourself, sir, i have to ask you when we hear stories like the one in which the "uss john mccain" was moved out of the way, so the president wouldn't be miffed to see it does that concern you -- >> it concerns me, but it doesn't concern me today because i think this moment is so special. i'm in awe of what these guys did. it's truly an amazing thing to

have come on this beach, fought your way up this bluff, marched through europe and ended the tyranny of the holocaust, of the oppression, of fascism and of all that represented at that time and so much effort has gone in to building a world that is the opposite of that that, you know, the only thing i would comment on is saying, you know, one hates to see people struggling now to pull things apart and institutions that were built out of that, which need reform perhaps, but which still need to exist and be honored and that have brought us much more good than bad. we need to stay focused on that and understand how we're going to apply that to the choices we face about a whole host of issues on a global basis and if there's one lesson that comes out of this, there were canadians, there were pols and

brits and americans and all of us came together to fight for the same thing that's what we need to do now. >> mr. secretary, before i let you go, a couple of weeks ago i sat down with secretary of state mike pompeo and i asked him if he thought it was telling that iranians are more comfortable dealing with you than him. >> well, i have only talked once between the decision that was made to pull out i saw the foreign minister briefly for a few minutes at the munich security conference but i have not said a word subsequently to what they ought to do or not do. it's not my business right now except publicly like this. since the decision was made to pull out of the iran nuclear agreement. from that time forward, this is a public issue and i don't engage in any diplomacy on it

in - >> there's been no back channelling? >> no, i haven't had any back channeling on that issue since it moved out and before that it was not a back channel i met publicly as "the new york times" editorial board, as members of congress did. as senators did. and as other secretaries have done throughout history. always engaged, henry kissinger, colin powell, many others continue to have conversations with people as a matter of being well informed. >> mr. secretary, thank you so much for setting the record straight thank you so much for joining us on this exciting occasion. julianna, back over to you. >> thank you so much for bringing us that interview with former secretary of state kerry. just as president trump arrives in normandy chinese president xi jinping has arrived in russia for his eighth state visit since taking office. the chinese president described putin as his best friend meanwhile, huawei has signed a deal with russian telco company

nts to develop 5g in the country. it comes after several countries blocked the chinese firm claiming it poses national security risks and alibaba has announced it will invest in a sovereign wealth fund and jeff joins us live from st. petersburg really interesting to see china and russia strengthening their ties at the same time that u.s. and china are becoming further and further apart. >> yeah, and the two things are clearly connected. of course, we saw this pivot east in russia after sanctions were imposed on the country. after 2014 now we have a situation where the chinese are involved in this deepening crisis with the united states, this row over trade. and clearly, both of these countries feel it is in their own self-interest to deepen their relationship but i think what's been interesting here this year at

the st. petersburg economic forum is how technology has become an important story and you mentioned a couple of those deals. huawei of course is a target of sanctions from the united states not yet officially, but they are putting pressure on lots of countries and governments not to deal with this chinese mobile company. the russians though no hesitation it seems in signing an agreement that will allow huawei to develop the 5g network here we have had a number of speakers from russia who i put that question to. does it just flag issues around the so-called splinter net, where ultimately we have one world, but many internets. i addressed that question to the chairman of ey as he looks at his clients' business here in russia, increasingly does he y say -- see people being forced

to choose between a chinese internet and a western internet. let's hear what he had to say. >> it's too early to tell, to be honest you know, there are a lot of tactics being played in the geopolitical world today i think where the internet is today and how things are operating, i think it will be very difficult to go backwards you know, there's also rumors that particular countries are setting up their own internets i think it will be difficult for the people to accept a confined internet or confined anything versus a global free internet that they can do a lot of things globally i think the cat's out of the bag, frankly. >> well, of course not only the issue of splinter net and where we go with this story involving huawei dominating the corridors here, but we're talking a lot about how e-commerce and technology businesses here in russia use the internet, given that there's been talk of a

sovereign internet law here. something that perhaps to put it crudely would allow the russian government to unplug the internet from the global system here as we know under sanctions, the russian government has felt it has had to fall back on its own initiatives, the clumsy word for the self-reliance that they exhibited, and president putin and i think the russian government are very aware of the risks to the russian economy should they be excluded from some parts of the global internet this is almost like a preemptive measure if you like. but that has big consequences for russian companies that do their business in that space earlier we spoke with the head of ozone this is an online e-commerce business, very much like an amazon if you like in the best let's hear what he had to say about these concerns around the

sovereign internet law. >> from the technology stand point, from like infrastructure, russia is very much integrated in the global community so i hardly see russian unplugging itself from the internet and creating an environment that it can create independently makes sense as a plan "b" option but i frankly don't see this happening at all at least not initiated by russia. >> well, clearly, the head of ozone wouldn't like to see that happen whilst they are a business that is primarily focused in russia, no doubt as they grow and potentially ipo, they may have ambitions to move outside of this market and not being connected to a global internet would clearly be a problem for them let me send it back to you, julianna on that point as we continue to monitor the stories here in russia. >> all right, jeff, thank you very much. i do remember when you came back from davos splinter net was one of your favorite terms that was

being talked about quite widely at that event. well coming up on this show, the ecb is in focus amid data weakness we'll preview the decision next. the first survivor of alzheimer's disease

is out there. and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight.

welcome back to "street signs. i'm juliana tatelbaum. president trump arrives in normandy to join emmanuel macron and theresa may to commemorate the 75th anniversary of the d-day landings. european equity markets move cautiously higher amid continued trade tensions president trump reiterating the threat to hit china with a further $300 billion in tariffs. renault shares slide after fiat chrysler blamed the french political conditions for thwarting the deal which would have created the third largest automaker. germany's ten year bund

yield is hovering. let's take a look at european markets and see how the stocks are faring this morning gains across the board perhaps most interesting the moves in the ftse up about 1% right now yesterday, it was the key underperformer as rising tensions between italy and brussels weighed on sentiment there. the european commission warned italy around starting disciplinary action around their debt levels, salvini has hit back and investors right now are shrugging off the heated tensions green across the board for europe. let's look at the fx markets, we have the ecb meeting a few hours away the euro is climbing in the lead-up to that, up about 0.17%. above the 112 handle

the euro has been rallying pretty decently over the last week i should mention, that trend is continuing the dollar index in contrast on pace for the second negative weak in the last three the pound holding steady around 1.27 now, more detail on the italy story. salvini has said his country doesn't need the eu's money after the european commission formerly warned rome it can face disciplinary action if it breaks the debt rules speaking at a rally he said italy doesn't want the eu's money. >> translator: europe sent a letter, they scold you, they criticize you. we do not want to go and ask europe for other people's money. we do not need the money of the spanish and the germans and the french we want to go to europe to ask the dignity and the right to work for italian we don't want anyone else to pay our debt but if italians doesn't

work, the debt grows you don't need a scientist to understand that. >> you can see there, pretty flat today from the two year all the way up to the 30 year the ecb meeting will be crucial for the italian markets as we look to hear details on the tltos which are viewed as large aid to the italian banks in particular so keep an eye on those yields as the day progresses. now i want to bring in a woman who has more from cnbc in italy. it appears as though the patience with italy is running thin salvini now saying that italy doesn't need the eu's money. but how realistic is this stance >> well, i guess you could say that stance is pretty much campaign speak let's say you know, this was at a rally. there are more mayoral elections still going on here in italy so if you clear the ground of that campaign talk, let's talk about what's really going on

here let's start with the numbers the eu is saying that debt to gdp that was at -- over 132% is expected to go up and expected to breach that 3% limit in terms of deficit to gdp ratio. that's expected to go up to 3.5, from the 2.5 in 2019 so as far as those numbers go, along with an economic situation that's very anemic if not almost flat, i mean, we're talking about a 0.1% growth expected for italy. the debt servicing also is a big cost you were talking about the spreads. so there's definitely more that needs to be confronted before we understand what will actually happen if in fact on july 9th this procedure will go forward or not so far, the government officials have reacted saying that they're open to a dialogue with europe this is everyone, the economy

minister, both deputy ministers as well as the prime minister saying that he had sort of a conciliatory tone saying he's -- he doesn't want a procedure going on on his clock. so there's certainly more to come here. so far we are seeing though the markets reacting today not too much or not negatively to what's going on, so that tells us there's room for a solution to be found going forward. back to you. >> claudia, thank you so much for that detail. well, we'll continue to watch that space. marine one is arriving at the normandy american cemetery now. i want to bring you some live shots there. president trump about to be inside marine one. he is going to join president macron for the commemorations, theresa may also there to commemorate the events and the operation which started june 6, 1944 this is the anniversary of the largest combined land, air and naval operation in history and in terms of president trump's schedule for the rest of the day, he will join the

commemorations he's then this afternoon due to hold bilateral talks with president macron and he held talks with theresa may earlier this week. he came from shannon this morning where he held talks with irish leadership there so we'll continue to watch president trump's movements throughout the day now, the ecb is expected to keep rates on hold today amid ongoing economic jitters investors will be watching for further details of the third tltl program set to begin in september. and we will continue to keep an eye on president trump's movements but let's focus on the ecb very quickly now today's meeting is being hosted by the lithuania central bank. what can we expect later today >> well, actually, the big question is how dovish will

draghi be and we talked about the potential of the cuts, the question is what will mario draghi be in terms of dovishness the expectations of inflation developments are close to record lows and the ecb is probably very much pressured by the markets, by those inflation expectations, to give a bit more of an idea of how further easing could look like cutting rates which are already zero is not an option. they can clearly cut it into more negative territory but there's probably not what we are going to hear from draghi as of today. today, the focus will be as you were saying on the new cheap money for the banks. and the terms to it. probably it will be negatively priced so actually the ecb is going to pay the banks to take the money to lend to the real economy. that gives you an idea of how difficult and dangerous the situation is as well -- is actually

and we're talking about the potential of this anchoring of inflation expectation. with that, back to you. >> all right thank you very much. we'll look forward to chatting you. make sure you change me for "decision time." and she'll be joining me as well let's look at normandy, president trump is just exiting marine one now to join the commemorations there he is joined by the first lady to join president macron, theresa may and several other dignitary to commemorate the 75th anniversary of d-day. that's it for today's show i'm julianna tatelbaum "worldwide exchange" is coming up next. it was here. i couldn't catch my breath. it was the last song of the night. it felt like my heart was skipping beats. they said i had afib.

what's afib? i knew that meant i was at a greater risk of stroke. i needed answers. my doctor and i chose xarelto®. to help keep me protected from a stroke. once-daily xarelto®, a latest-generation blood thinner... significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. in a clinical study, over 96% of people taking xarelto® remained stroke-free. don't stop taking xarelto® without talking to your doctor, as this may increase your risk of stroke. while taking, you may bruise more easily or take longer for bleeding to stop. xarelto® can cause serious, and in rare cases, fatal bleeding. it may increase your risk of bleeding if you take certain medicines. get help right away for unexpected bleeding or unusual bruising. do not take xarelto® if you have an artificial heart valve or abnormal bleeding. before starting, tell your doctor about all planned medical or dental procedures and any kidney or liver problems. learn all you can... ...to help protect yourself from a stroke. ask your doctor about xarelto®. to learn more about cost and how janssen can help,

visit xarelto.com. how janssen can help, the first survivor of ais out there.sease and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight.

mno kidding.rd. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started.

breaking news topping your 5 at 5:00, fiat chrysler slamming the brakes on a merger with renault. we'll find out if carlos ghosn was right. president trump threatening even more tariffs on china we'll tell you what he said overnight. no deal, mexican officials say an agreement not yet reached to fight off the potential tariffs. the talks continue in d.c. we'll take you there. oil alert. crude oil prices taking the nosedive we'll find out what is behind the sell-off. and president trump in normandy, france, as america and the world remember the