i'm willem marks, this is your monday morning. president trump gives mexico a pass and suspends tariffs on imports indefinitely u.s. treasury secretary steve mnuchin tells us president trump will make his next move on the trade war with tariffs but won't back down. >> if china wants to move

forward, we're prepared to move forward. if china doesn't want to move forward, president trump is perfectly happy to move forward with tariffs to rebalance the relationship. fiat chrysler wants to revive and thomas cooks is in talks with the sale over the tour operated business. u.s. president donald trump has announced he will not introduce tariffs on mexican goods. they were supposed to take effect today trump now says he'll suspend them indefinitely. the auto sector struggled quite badly since so much of the global supply chain is built around that u.s./mexico trade relationship germany is closed today. let's take a look at how the auto stocks are doing today.

sit tron is up 1.2%. renault up 2%. fiat chrysler 1/3 of a percent the closely watched u.s. surplus is $26.89 billion in may that's a number closely watched by mr. trump that's almost $6 billion higher than april you look at how the easing of u.s./mexico trade tensions seems to have helped some of these sectors, in particular mining, basic resources. some of these big minors that are performing incredibly strongly you can see 2 1/3 of a percent glen core trading 1.4% higher. steve mnuchin says president trump is ready to slap more tariffs on china if his

suggestions with xi jinping do not resolve the outstanding differences between the two countries. my colleague nancy hungerford joins us from japan. nancy, this seems to have been the most significant line to have come out of these various conversations involving the g-20 finance ministers. >> reporter: yes, indeed i can tell you all of the finance ministers here meeting are very concerned about a escalation in the china/u.s. trade tensions that's why so much is riding on this next meeting between u.s. president trump and chinese president xi jinping that will take place in osaka in just over two weeks from now it was interesting to hear secretary mnuchin say clearly that the administration is very happy to go ahead with the tariffs if need be when the u.s. growth is slowing, we're starting to see a few cracks, mnuchin was saying they're not too worried.

it's one month and one number. they want to send a very clear message to china that they feel the u.s. is coming into the talks in a more advantageous position i did have the opportunity to speak with mr. mnuchin about this i asked him about the meeting and what china needs to do to come back to the negotiating tab table. take a listen. >> we had a deal that was almost 90% done china wanted to go backwards on certain things we've stopped negotiating and i just had a very candid discussion with governor yi. governor yi has been part of the negotiating team again, we made some preparations in advance of a meeting for president trump and president xi

if china wants to move forward with a deal, we're prepared to move forward on the terms we've done if china doesn't want to move forward, then president trump is perfectly happy to move forward with tariffs to rebalance the relationship >> reporter: so there you have it secretary mnuchin explaining that he did help lay some of the groundwork for the meeting between president trump and president xi when i did ask him if he had any indication as to whether china was ready to move forward in the talks, he wouldn't say he said he couldn't disclose the details because it was a private conversation you heard him saying it was cand candid he didn't say fantastic, he didn't say they were bad leaving the door open there. this is very important because when we talk about other issues that you did discuss, the currency, the treasury secretary also telling me that he wasn't worried about china trying to weaken its currency as a tool in the trade fight. he said it is weakening but now down to natural market forces. that's another element the currency is seen as another

area in which china could strike back as the fight expands. any technology has been such a critical part of the back and forth between the two super powers a lot of the technology concerns so far have been centered around huawei first we had the concerns about the huawei 5g rollout with the u.s. saying we don't want them involved, banning them from the 5g rollout and other countries to do the same there's another issue, too since the talks broke down on trade between the u.s. and china, the u.s. went to blacklist huawei and that really has caused a lot of backlash in china as you know. i did discuss this issue with secretary mnuchin and i asked him whether he believed that china would want to see some concessions made around the huawei issue before they would move forward on the trade discussions. take a listen to what he had to say. >> the huawei discussions are national security discussions.

they're separate from trade. both we and china have acknowledged that in our discussions. now, of course, president trump when he has the meeting, to the extent he gets certain comfort on huawei or other issues, obviously we can talk about national security issues, but these are separate issues. they're not being linked. >> the president has said they could be linked. >> i think what the president is saying if we move forward on trade, that perhaps he'll be willing to do certain things on huawei if he gets comfort from china on that and certain guarantees >> reporter: so they may be separate issues, willem, but secretary mnuchin pretty much pointing out there himself that they are linked because the u.s. has decided if they get some progress on the trade front, we can imagine they're looking for progress on the enforce. , issues around technology transfer, perhaps they would be willing to give some ground on huawei that's the message we got.

>> thanks for pointing out that slight contradiction in the policy very difficult to get a clear answer out of this administration on the linkage of national security and economics. thank you for bringing us that interview. appreciate your time there in japan. china has pledged to protect its tech industry against u.s. pressure with the, quote, more legal weapons. they refer to the way u.s. national security laws have restricted supply. the editorials indicated beijing would create a system to match the state run system there is a national technological security management list. separately, "the new york times" has reported that beijing summoned executives from major companies including intel, qualcomm and others to warn them of severe consequences nokia and eriksson have made

plans to create separate divisions, one focused on the u.s. and europe and one focused on china this would be to counter the threat of trade tensions the paper will relocate key operations outside of china, diversify their supply chains as well both nokia and eriksson are involved in the rollout of 5g. their main competitor, huawei, has been at the center of the trade war. the mexican peso traded nearly 2% higher after president donald trump announced the indefinite suspension of the tariff threat. the details will be announced at the appropriate time the canadian finance minister tells us that he welcomed the deal >> it's unequivocally good news

from our perspective we didn't think that that was something that would be helpful to the u.s. embassy and ratification i came from a meeting with steven mnuchin when we were talking about it from both of our perspective this allows us a more clear path in moving forward. we're pleased. we think it's obviously better for broader trading relationships and good for the ratification. >> i'm joined by james mccormick. thank you so much for being with us, james. >> thank you. >> do you think this entire story about tariffs in mexico does further harm to a quick solution to the u.s./china trade negotiations >> i look at them as mostly independent. i think the risk of lengthening the china/u.s. discussion is mainly about financial markets at the moment s&p is some 2.5, 3% below the record highs. i don't think that the u.s. administration is getting a lot of pressure to do a deal just yet. >> and looking at the way that

the administration approached the matter with mexico, and we talked about that briefly there, the idea of linking national security to economics, does that make it more complicated to resolve the u.s./china trade deal in terms of what that means for the time line as well? >> yeah. i just think that the mexico tariff issue, even if it's gone away, just inserted a whole new style of tariff policy that was focused mainly on domestic politics i think it makes it harder for businesses to plan around and i think it makes it harder for countries to want to negotiate it's a set of policies that are very, very hard to predict >> do you think there are sectors, specific businesses currency even, that are currently mispriced in face of these trade tensions >> i think generally speaking just about the entire market is mispriced to these trade tensions i see the economic implications

as fairly significant. i don't see a deal between the u.s. and china happening any time soon, which tells me that equity markets are probably mispriced. volatility is too low and i think the u.s. dollar is probably going to start coming under pressure in the second half of the year >> and, i mean, we talk about the mexican peso recovering slightly since friday. do you think the threat of these politicized tariffs, as you mentioned there, could limit, circumscribe other emerging market assets, or do you think that some of the talk about a fresh set of rate cuts at the fed could offset that? >> yeah. i think one of the most interesting trends in may when all these trade tensions escalated is that emerging markets have shown a reasonable amount of resilience the mexican peso not because of a very idiosyncratic issue

if i'm an investor looking at my asset prices four to six weeks into these trade tensions, i would be feeling good. the fact that the fed is respond, responding quickly, that the dollar is not trading very well are certainly helping emerging market assets. >> financial market's mispriced. this will go on longer than people are talking about have you seen and what have you seen around the trade tensions that have meant there is this long-term impact on the underlying economics of countries like the u.s. and china? >> well, you know, listen, i think if you look at the global manufacturing pmi, it's below 50 for the first time since 2016. if you look at what led the manufacturing pmi is export orders, exporter anxiety which i think is directly driven by trade tariffs. it's interesting now that the u.s. economy is starting to catch down to the weakness of other economies and if you look

at some of the studies that have been done on the implications of prolonged trade tensions, it's a pretty significant impact. >> we'll leave it there for now on trade don't go anywhere. let's look at how some of the major u.k. stocks are fairing this morning the ftse is up half a percent. hsbc is trading half a percent higher as is royal dutch shell on the back of some of the reports that the russians and some members of opec might be willing to suspend the production cuts. you can see barclays performing quite well astrazeneca up almost .9 of 1% in france the cac carant up. we've had a lot of comments and commentary about the italian economy in the last few days

that will no doubt continue to be a central focus for investors as the fight, we can call it that, conflict continues between rome and brussels. coming up on the show, renault works to block nissan. looking to revol tksveal with fiat chrysler. more on that when we come back ng and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

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welcome back to "street signs. thomas cook shares are oncor for the best day it's selling the tour operating unit the british firm says there's no guarantee that fosun will acquire thomas cook. shares in renault and fiat chrysler are rising. after reuters said the two car makers are looking to revive merger talks the tie up between the two firms

collapsed last week. renault could agree to significantly lower its involvement in nissan. relations between alliance and r renault has soured that would effectively block nissan's planned overhaul. they've called the group regrettable. renault is nissan's biggest investor owning 43% of the japanese partner the french finance minister outlined the strategy in an interview with cnbc. >> we have a strategy for renault which is key component for france which is a very successful automotive industry in france and what is at the heart of this strategy is the reinforcement of the alliance

between renault and nissan it has been the position of the french state which has shares within renault the french state has shares within renault our strategy has always been from the very beginning to reinforce the links between renault and nissan and it will remain the same for the coming month. first, let's reinforce the alliance between renault and nissan and then we will see whether consolidation is possible we are all aware in terms of the necessity of auto mization in the automotive industry and the proposal of a merger between fiat and renault was a very interesting one but as a second step the first step must be the reinforcement between renault and nissan. >> reporter: as you're going to tokyo straight after this, not so far from nissan headquarters, do you expect to meet with nissan executives and get some

of those assurances? >> no. it's not the goal of the french finance and minister to meet the management of nissan it is the responsibility of the management of renault to pave the way for the reinforcement of the links between renault and nissan and it's up to the governance from renault and nissan to find best solutions to reinforce the alliance that has been very fruitful for the two companies. >> when you said the french government would consider reducing its stake in renault, by how much would you consider removing yourself from the steak, sign it down entirely altogether >> this is a very long-term perspective. the first step, once again, must be the reinforcement of the alliance between renault and nissan the second might be a consolidation with another car automotive industry, maybe fee at then we will see the decision of the french state

>> the italian prime minister repeated his threat to resign. they are not prepared to compromise with the european commission in an interview with the italian newspaper conte said he wants to lead fiscal policy talks with brussels alongside giovanni tria he said that the two sides needed to discuss certain economic indicators. >> the action of the italian government is to be compliant with the fiscal rules, then we'll try to demonstrate that our program will bring the italian public finance to be compliant over the european fiscal goals of course we have to discuss about how to measure some indicators in this situation. >> meanwhile, the empts u.

commissioner of economic and financial affairs said the block wants italy, like other countries, to respect the fiscal rules. >> we're going to have a meeting, it will be on thursday of the e.u. group and we are certainly going to discuss the matter and i hope find a common statement and this statement must be about the fact that based on the debt that we have today they don't respect the rules and that they risk to be a procedure for excessive debt then, no, we're not talking about fines. we are going to have a dialogue. i have a dialogue with italy i think that's more dissuasive than persuasive. if they don't add up, if the data are not fulfilled, then we have to move on. it takes quite a while, but still we are resolute to act so

that the rules are respected. >> that was pierre moscovici he doesn't want to punish italy, he says. he's obviously not going to be in that role in a few months' time what does this mean for investors, this confrontation? >> well, i think at the moment people are getting a little bit too excited about timing there was always going to be some fireworks between italy and brussels after the european election and but really the time that matters is the 2020 budget later on this year so i think for investors our advice has certainly been, you know, start focusing on the fact that italy has the best carry to volatility ratio of all bonds in europe we haven't tended to be very bullish this year but we started buying back some over the past couple of weeks. we think you're going to have a fairly quiet summer. it's really the autumn that you have to start worrying about the fireworks kicking off. >> let's talk about european

bonds. do we need to relabel a country like spain in terms of how we frame it in the context of european sovereign debt in the sense that the spread might not be like it was the impact of the spread doesn't seem to have the same effect of the economy of the spread as you see in a country like italy? >> yeah. i think one of the most interesting possible themes out there is there really isn't a eurozone periphery anymore there's italy which has a whole bunch of problems and everybody else and what's been quite interesting about the latest pressures in italy is that not only has spain not widened a little, which it has been doing in recent years, it's been tightening as spain has been widening same thing in portugal and same thing in greece. i think we have to start rethinking eurozone bonds and look at the characteristics of these bonds away from italy. >> not the least with the strategy because of the negative numbers you're seeing with

germany? >> that's right. >> going to come back with you in a moment. that's james mccormick the head of desk strategy. coming up on this show, stay tuned as we'll be breaking u.k. gdp data for the month of april. that will be right after this very short break unpredictable crohn's symptoms following you?

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welcome back to "street signs," i'm willem marks and these are your headlines this monday morning here in london. stocks across europe trade in the green. u.s. futures point higher after president trump gives mexico a pass and suspends tariffs on imports indefinitely u.s. treasury secretary steve mnuchin tells cnbc exclusively that president trump will make his next move in the trade war with china but he has no plans to back down on his threat of more tariffs. >> if china wants to move forward with the deal, we're prepared to move forward on the terms we've done if china doesn't want to move forward, then president trump is perfectly happy to move forward with tariffs to rebalance the

relationship phi yacht chrysler and renault shares jump following a report the two car makers are looking to revive their collapsed merger of equals and shares in thomas cook are on course for their best day in six months as the british holiday group confirms it's in talks with fouson over shares of its tour business. we're going to bring you some of the latest gdp data for the u.k. the april gdp is up .3%. that's over the three-month period over march. that's against the reuters expectation of .4. gdp is down 4.4% for the month that's against a negative expectation of minus .1% that is the biggest monthly fall since march 2016 year on year it is up 1.3% for

the month of april that's against an expectation of 1.7. you can see the pound there trading around 1/4 of a percent weaker against the u.s. dollar but not taking a massive dive on those numbers just yet if we also look at one of the other key pieces of data out today, april industrial output it is down 2.7% month on month that is far lower than the expectation of a negative .7% read that is the biggest monthly fall since september of 2012. year on year it is down 1% again, that's against an expectation of a 1% increase so some significant down side there for the u.k. industrial output of course, what's interesting to look at that is in the context of manufacturing here with manufacturing making up around 4/5 of that number. i'm happy to say we're joined by james mccormick. he's the head of desk strategy at gnat west markets these are not good numbers.

>> they're not good numbers. i do think that we saw them coming in some of the survey data in recent weeks and if you look at the u.k. economy, it looks to me as though you had a major inventory stocking ahead of the march 31st original brexit date and we're now seeing the flip side of that. >> so you can see that really affected the numbers of the u.k., april goods was down 14.4%. >> that's right. >> that's against the margin of 2.9% is that all about the stockpiling we heard so much about in the leadup to a no deal brexit or potential no deal brexit >> i think some of it is interestingly, if you look at the survey data it also looks like there's not a lot of new orders the capital investments are pretty weak. the u.k. is struggling with both political uncertainty and economic uncertainty my guess is that's going to be

the case for the next couple of quarters. >> it's funny, the office of national statistics says that fall is mainly due to a dramatic fall, its own language, in car production due to plant shutdowns. you remember this leading up to the end of march deadline for brexit, a lot of the big firms said well in april we're going to shut down for a few days to make sure we're not unnecessarily straining our work force or our supply chains brexit didn't happen, at least a no deal brexit didn't happen as expected by some, and now you've seen this really impacting gdp by such a significant margin is there a way forward in the next four to five months up to an october 31st deadline where this can be avoided in the future from an investor perspective do you think >> i think there's two dynamics here one is presumably heading into october 31st you'll have a similar stocking process just to make sure you manage your risks. the longer we continue with the

brexit discussion, the more the long-term implications start to take hold. capital investment has struggled for a while and it's going to continue to struggle because who's going to want to really invest in an economy with this much uncertainty. >> it's also an economy that doesn't -- in the general view does not rely too much on manufacturing and yet obviously car production is one of the things where the u.k. actually still does make physical stuff and you've got this fall in u.k. gdp in april, mainly due to the dramatic fall. i'm looking at this saying it fell 24% that's the biggest monthly drop since they began in january 1995 you're seeing that impacting the broader economy. is that something you think investors were not as aware of as they could have been? >> you know what, i do think that there was probably a little bit too much optimism in general about q1 growth across europe and the u.k. in particular because it was surprisingly

strong i think now we're able to look back and realize that was a head fake clearly the economy is not that strong what we should be doing is taking the average over q1 and q2 which looks like it's an economy on reasonable weak footing. >> james mccormick, head of debt strategy talking us through trade as well as the u.k. gdp. let's look at how some of the u.k. stocks are fairing this morning. there's a bit of a picture on the major top 12 we're watching. you can see hsbc along with barclays also prudential performing quite well. diaggio down 1/4 of a percent. unilever trading in the red. those are companies, of course, that their supply chain is very, very heavily exposed to a brexit threat let's look at the broader european picture with the german

markets closed 9 ftse 100 trading down slightly lower than half hour ago the cac cacant is trading 1/4 percent higher a we're talking about the spanish bond market earlier with james but looking at the ibex 35 trading around a quarter of a percent higher no longer, he says, part of the european periphery let's also look in the u.s. futures picture ahead of the market open on the other side of the atlantic the s&p 500 is looking to open around 10 points higher. dow jones looking to open 95 points higher and the nasdaq looking to open around 21 points higher at this stage of proceedings. the u.k. has struck a free trade deal in principle with south korea. that's ahead of brittain's expected departure in october. the new agreement will be based

on seoul's current pact with the e.u. according to the south korean trade ministry, the deal will help to minimize trade uncertainty between the two countries. meanwhile, one u. kfrmt conservative leadership candidate, boris johnson, says he will not pay a $39 billion brexit divorce bill until the e.u. offers better terms he told the summit arms newspaper that as a front-runner to theresa may's prime minister, quote, money is a great solvent and lubricant in getting a good deal he criticized the government and said ministers should not have agreed to the payment before the brexit deal was finalized. from what i remember, he was in government at the time that agreement was made meanwhile, the environment minister is facing quitting after he admitted he used cocaine. he told the bbc and apologized for taking the drug. said, he was, quote, fortunate

to avoid prison. he did that 24 years ago mr. hammond, the british chancellor, said he sees a small chance of a no deal brexit despite uncertainty. >> very small. that's a key message and the key thing to remember is that brittain is a parliamentary democracy and there is a clear majority in parliament against a no deal exit and parliament will ensure mightily that that does not happen. >> reporter: there still seems to be some confusion around this point, a lot of debate, not just politicians but various lawyers and think tanks are weighing whether parliament can block a no deal. boris johnson seems to be the front-runner for the conservative leadership. he's promising leaders come october 31st, with a deal or not, they will leave the european union is he lying to british voters?

>> in my view he's very unwise to make a pledge that is that specific because i think there will be great difficulty in persuading parliament. no deal exit i think people will be very difficult to renegotiate and to get a deal in place by the 31st of october so, look, you're right there's some debate about the mechanisms by which parliament might step in, but one thing is indisputable if a prime minister defies the will of parliament, he or she can expect some trouble for parliament the political reality is that in a parliamentary democracy on the big decisions, government has to be mindful of the position of parliament. >> my colleague nancy hungerford there. hong kong's government plans to go forward with an extradition bill for our fugitives to be sent to mainland china

hundreds of thousands taking to the streets over the weekend to oppose that measure. we have this report from hong kong. >> reporter: the hong kong government says it's not budging after hundreds of thousands of protesters took to the streets to hong kong on sunday to say no to the government's move to amend the extradition law. what's driving this fear around the amendment is really the fear of jeopardizing hong kong's judicial independence, the freewheeling economy and the special status, autonomy that enjoys with mainland china by arranging the extradition rules with the main land china chief executive of hong kong, kerry lamb, felt enough heat that she'll hold a press conference and explain more, but basically she rejected the calls to stop this legislative motion and for herself to step down.

>> the bill will resume the second receipting debate on the 12th of june and we appeal to members of legislative council and various organizations and groups in society so continue to participate in the discussion in a calm, rational and peaceful manner since early february when we first announced our intention to do this legislative amendment after months of research and international study, it has had the intensity of this four months is quite unprecedented for a bill proposed by the government to have this intensity of discussion so i would say that while we will continue to do the communication and explanation, there is very little merit to be gained to delay the bill it will just cost more anxiety and divisiveness in society. >> reporter: this legislative motion by the hong kong government is getting reaction from business community as well.

amcham in hong kong had a statement out basically calling against this amendment calling the passage of the bill comes at the expense of the business community and adding that it fears business confidence will suffer in the meantime, this is a developing story here in hong kong this week with the second reading of this amendment bill scheduled for this wednesday i'm sherry kang for cnbc, hong kong. if you have any views on those protests in hong kong, on the british gdp numbers, get in touch on twitter coming up on the show, we'll sit down with the ceo of build a bear workshop as the stuffed bear maker feels the impact of trade tensions

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welcome back to the show raytheon and united technologies have agreed to all stock equals. they will have combined annual

shares of $74 billion and will be the second largest defense and aerospace company in defense after boeing the deal will close in the first half of 2020 we look at how that's impacted bae share prices you can see it's up almost 1% today. meanwhile, airbus falling around .1 of a percent dassault trading up .1%. we will be speaking to the chair men later on at 3:00 p.m. central time and 2:00 in london. meanwhile, u.s. jobs growth slowed in may. the economy added 75,000 last month far below the dow jones forecast of 180,000. the unemployment rate was in line with estimates at 3.6% and that marked a 50 year low. average earnings were up 3% year

over year. job counts for march and april were revised lower u.s. markets rallied with investors believing the fed will come under further pressure to cut rates. u.s. treasury secretary steve mnuchin told cnbc he's not worried about the latest job number u.s. job growth remains robust, at least in regards to europe and china. >> that's the bright spot in the world and that's the story i'm hearing today as it relates to the employment numbers, i wouldn't focus on any one number there's plenty of volatility in these numbers. we still see the growth in the u.s. is really quite strong and we are somewhat concerned about what we see as a slowdown in europe, china, in other areas of the world. toy retailer build a bear backed its full year revenue and

guidance in the first report it is based on no material changes to current global change conditions the american firm has a significant chinese supply chain and has raised its prices in anticipation of u.s. tariffs in china. we're joined by the ceo of build a bear workshop. thank you for being with us. >> thank you. >> how exposed, when it comes to your margins, is a business like yours to the kind of tariffs we've seen imposed over the last 12 or 18 months? >> well, we do have some levers that we can pull the difficulty isn't the tariffs themselves, the difficulty is the timing of the tariffs. we haven't raised our prices yet. we're looking at different ways to protect the margin in the back end but we believe that there are opportunities to do so recall that build a bear is an experiential retailer. our objective is to create a great value for the consumer in

the process of going through building the bear. we look at ourselves differently. with the bears themselves, we're importing the skins, if you will, the component parts of the bear and we have over 300 stores in the united states where we're mini manufacturers creating thousands of jobs in the united states for build a bear itself and around the world with our process that is a little bit different from a normal importer. >> what separates you is it is experiential. >> that's right. >> some of your value proposition for the consumer is you get to use these and part of the take away at the end of it is the experience? >> yes in fact, we actually use some products from the united states itself which will help mitigate itself some of the stuffing is sourced from the united states the condos, which are iconic to our brand, are sourced from the united states. not everything is sourced in china. >> you've had a couple decades in the retail space, in the

marketing space. >> yes. >> how resilient is today's american consumer when it comes to being willing to spend money on products like yours >> i think it depends on how you categorize, quote, unquote, products like ours we don't see ourselves as a traditional toy. we see ourselves as an opportunity for a child to have the best birthday in the world a memory they're making, experience they're having. the u.s. consumer and more overly worldwide to some degree, they are looking more towards experiences versus products. we certainly fit that need. >> do you think that the u.s. corporate sector, to include your selves, will be forced to retool your supply chain significantly? we had a story where nokia and eriksson are trying to split their company potentially into two divisions according to a british newspaper report do you think firms like yours are going to have to drastically

look at the process? >> i think it depends on the length of the tariff if they will be in place for some time, we'll need to look at alternative approaches china has been a resource for toy manufacturers across the globe for many, many years an entire operation has been built around that. these are somewhat skilled laborers and it may take a little bit of time. >> it's sticky in a sense? >> it is a little bit sticky it's been created there for many, many years many decades, but at the same time those skills are teachable. they are transferable and if, indeed, we need to do that to manufacturing things and manage things to create the right price value for our guests, that is of course what we would do over time it does take time though. >> one final question. your recent guidance is predicated on the idea that

tariffs won't change day to day it's unclear from the white house what their strategy is it's difficult for us to get inside the head of the president of the united states to understand that strategy. >> right. >> that must make it very difficult for businesses like yours to plan. >> it is difficult because in most cases a lot of toy companies have products on the water. those prices have already been agreed to with many of your factories. what's interesting for us is we are a vertical retailer. pricing is a little bit more fluid in a vertical. >> we'll leave it there. thank you for coming this morning. >> thank you. >> ceo of build a bear workshop. before we let you go, i want to bring in some details around that big story involving renault. we've been hearing here from the french finance minister, i want to bring you some of his comments he was asked about today's report that renault will abstain from the vote on nissan's governance also saying we

demanded more time out of respect for nissan in japan. this is an international discussion nothing has changed in the conditions that we, the french government set on renault. those are some of the latest details out of bruno lamarr. any idea of a merger remains a good opportunity despite, of course, some of the french government opposition due to the potential tie up rafa nadal he reaffirmed his status as the king of clay he won his 12th french open tennis title by beating another man who's not too shabby on the clay court, dominic thiem in four sets. this was a repeat of last year's final. nadal was again seemingly too strong for his opponent despite having several injuries last

year nadal is the first person to win 12 titles and has 80 major titles is he bast yal vettel man was left furious he was given a penalty that handed the win to hamilton tennis if you don't mind and then on the formula one. pete sampras, rafa nadal, not the most titles in the modern era yet he is so dominant on this surface. >> yes. >> i've been catching up on it absolutely he's incredibly impressive the first man or woman to win 12 of the same grand slams so there's an achievement in itself what astonished me, i was looking at it this morning, his record at roland garros.

he's played 93 matches he's only lost twice 98% win percentage is he closing in on all sorts of records, all sorts of greatness. is he obsessed with catching roger federer, he says not he did say that but he did point to the fact that he said, wait, he's missed 15 grand slams through injuries how many could he have had if he hadn't been injured. bear in mind, roger federer only has one french open title. incredible. >> what about the set back for vettel what happened over the course of the weekend? >> a lot happened in this grand prix vettel was leading from the beginning but the controversy happened much after this because sebastian vettel has had frustrations, he's had driver error, mechanical errors and it stopped him from having a better chance at winning the 2018

championship more driver error that's causing his problems this year he came back onto the grass, didn't give hamilton more room to pass. hamilton had to back off it cost him 1.3 seconds behind but vettel had been given a 5 second penalty >> tricky though you see him come back on the track. you don't know if he's purposefully squeezing hamilton off or if that's the way he had to adjust to get back onto the tarmac. >> that was his point. hamilton said he did something that wasn't his fault. clearly there's something in vettel's mind here that he thinks he was still in the right. details to floolw. >> thank you so much appreciate it. that is it for today's show.

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a monster defense deal topping your five at 5 on this monday morning raytheon and united technologies, they are teaming up in an all stock merger. the details on that big money tieup straight ahead. treasury secretary steven mnuchin went on the record why he says, america, quote, is perfectly happy hitting china with more tariffs. in the meantime, hundreds of thousands of protesters spilling into the streets of hong kong. they're angry about a proposed power move by beijing. we'll tell you what that is