that's all for this edition of "dateline." i'm natalie morales. thanks for watching. good morning welcome to "street signs." i'm geoff cutmore. here are your headlines. happy easter for markets european stocks are in the green. up at the moment with travel leading the risk as the dow crosses 23,000 on the back of 10% gain over the last three days crude prices on the hopes brent will cut between oil heavyweight saudi and russia >> credit suisse and others vow

to pressure to satisfy capital requirements can european finance ministers agree. saying common debt is a necessary to fight the impact of the pandemic lockdowns across europe is set to be extended as they say the peak has not passed. a meeting today will review the restrictions. >> let's not tempt fate here we are higher. up 1.7% at this point. that was pretty much in line

with expectations on the futures about an hour ago or so. the issue is how willing will investors be on holding the position when many of these markets will be on a four-day holiday. there will be a lot of things floating around. do we get a euro group agreement. do we get an oil market agreementout put at this point do we get some progress on the virus plateauing at this stage let's show you the european exchange and what is happening in individual markets. there are some individual reasons why these markets are doing what they are doing. some relief in the housing sector for red wood.

we also saw the bank of england talking about this editionnaddil here what about the week to date? we'll give you a good sense of what the markets have done >> we've effectively written the enthusiasm to grind higher in the european session here. as you can see, as usual over the last few years, europe has followed wall street but we have never managed to put in the same degree of performance. okay the dax in germany up over 10% here the messaging around the german economy has been dire.

what about the markets week to date what is clear is as always, the u.s. markets seem too outperfor to theupside let's bring in klaus baader, economist. you've been trying to differ entera enterate the causes of recessions what we have here is so much more like a natural disaster than a credit crisis that we saw back in 2008 what does that tell us about which sectors will get hurt most >> caller: first, thank you for having me on the program

i will pick you up on that point. this is not a recession at all in the normal style. it is really an attempt to stop economic activity. bring it to a stop the restart should be more v shaped, really that of course means you have to avoid large drops in-house hold income and avoid cash flow problems and difficulties in assessing credit and bring about unnecessarily amount of ba bankruptcies and the economy could start relatively quickly this is a different kind of contraction. normally in a recession, it is an economic factor that's the normal pattern that

tends to be more stable. i believe they are suffered year to date and in term will suffer significant implications their impact will be much larger because services are more sensitive. lower income groups are being hit harder >> we usually look at debt as the potential for growth changing that global economy to

recover in a v-shaped way? >> i don't believe so. i don't think it will be that big of impact. it is really important how interest rates react i don't think bond yields will react. in past years, we've seen bond units reacting the debt in the united states and certainly in japan, the bond yiel yields have not increased that much in europe, the banks are in a big way of stepping up their purchases. then thirdly, what is important to note is that as normally in a recession, savings will begin to arrive this time, savings will soar

because people can't spend their money. i think there is a second dimension which is, how painful is is t going to be? >> klaus >> yes >> you alluded to somethingi wanted to talk to you about. you talk about household savings rates because people can't spend their money. i think in places like cologne where you did your first economic call indication because people are not keen of spending money. if anybody thinks people are going to rush out and buy cars and goods when they can spend

money, i think that is cookoo. people have had a near death experience and won't want to go out and spend money. >> i think it is a personal experience there are things i want to do and buy which i at the moment can't. and i'm sure when things open again. you are right, it depends on how much the labor market deteriorates that's why the european efforts to avoid unemployment to send people on furlough and suffer the income losses and spending the key thing is with the policymakers around the world very high marks for formulating

the policy what i'm not sure about is what are those marks going to be for implementing these i don't think it is a foregone conclusion you are probably right people are probably not going to cram into movie theaters after cooking for weeks at home, i think people will be going out. >> two points there, i think we are kind of on the same page you mention the psychology i'm sorry to characterize a whole nation but german psychology has been affected and i think psychology could last a long time. second point, if unemployment rates could be kept low and that is the key, is that possible >> yes, it is absolutely possible one of those things, the thing

that existed in germany a long time it is short-term working where the company does not dismiss employees but rather puts them on very short or no working time and a very large part of that loss of income is paid by unemployment insurance france has copied that system. it is one of the proposals in play at the euro group meeting tonight from 5:00 european time onward, which is to have such a backstop available to all countries in the area where instead of making people unemployed, you suspend their working arrangement and income it is what i believe, by the very nature, a temporary, we don't know how long but terribly

long, disturbance. i think the consequences will be smaller. you can imagine one of those worried about that is the united states they don't have that system in place. what we've seen over the last two weeks is increase of initial unemployment claims of 10 million. we don't know what today's numbers will be but it will be pretty bad again >> klaus, you've raged a debate on this channel all week where it was said the u.s. may be slower back to work because europe has some of these safety nets in place. we'll wait and watch and see thank you for being with us. global economists at soft gen.

looking at the board here, travel and leisure outperforms look at the air france print here this stock is up over 1% yet air france telling us that their passenger traffic for march was down 56% year on year. they carried just 3.6 million passengers for march and yet are being swept along this broader rally we are seeing in travel and leisure. and let's look at autos. you regular viewers will know that the auto sector in europe has been set with all sorts of challenges, not least the supply coming out of china for just in time delivery of the manufacturing process and many of these companies have been moth balling their facilities in

europe because of the coronavirus clamp down the positive, i guess, when we look at those ministry comments, they do suggest that export flow will pick up again maybe those will get loaded again on vessels to make their way to europe. julianna will have a look at other stories, particularly in the banking sector >> thank you let's kick off with the banking sector credit suisse has announced it is splitting up on dividend payments they'll use some retained earnings and some capital reverses ubs will offer a split payout.

following pressure from the swiss regulator for the lenders to follow european counterparts and preserve capital shifting to the aerospace space. airbus announced the largest ever unit reduction. representing a, quote, new reality for the cash strapped sector air france klm has posted a decline of passenger numbers of more than 56% in march due to travel restrictions and a drop in demand. it plans to scrap more than 90% of its capacity over two months adding that it cannot provide any guidance beyond may. >> sap has slashed its guidance

to a 1.6% drop in full year operating profit the company says the coronavirus pandemic has caused clients to suspend orders but they've seen an increase of demand for their cloud product. round two, european finance ministers will try to strike a deal will they succeed? we'll talk about what is at stake when we come back. there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses.

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go to xfinitymobile.com today. germany's exports rose in february beating expectations of a trade contraction and widening of surplus exports to china were down nearly 9% year on year with imports dropping 12% with another sign europe's biggest economy is going to go into recession this year. the creation of common debt in europe is, quote, a necessary to

counter the economic effects of the coronavirus. europe remains dead locked over a rescue plan. a second round of talks will kick off later today what are you hearing on this >> caller: at the moment, the same things remain on the table. financial ministers are exploring ways to overcome their differences ahead of another meeting this afternoon one european official told me in his opinion, the leathnetherlan will have to change its mind when you listen to the dutch finance minister, he says he is against the idea and it would be unreasonable for his government

to accept. the finance ministers also need to figure out what they have to do about a new credit line through the year this is a most difficult topic at this stage. there is some pressure from the financial market where we saw the italian debt yield rising. after the finance ministers did not reach a compromise there is also concern about the anti-eu sentiment. this has been the story. we saw the surge now in the wake of crisis. this crisis will actually slow that sentiment once again. in this context, the french prime minister said it is very important to reach an agreement today much he wants a successful

deal out of the meeting. the two main issues are new credit line through esm and joint commissions are still at the table. there is no breakthrough at this stage. we'll see what finance ministers will do today. >> thank you for that. let's let's update you on some chinese news car sales fell 40.8% year on year the group giving us a snap shot of how much weakness we've seen in auto sales as a result of the coronavirus. earlier on, we updated you where they are seeing some improvement in imports and exports into and out of china at this point as they try to address the

lockdown here in europe, giuseppe says they have to maintain strict lockdown they have advised continuation of the strict measures urging the government to produce a road map for returning to work confirming the issue will be reviewed at a meeting today. multiple reports indicate the measures will be extended beyond next week. i see, steve, the new leader of the option has wasted no time weighing in how long we should expect to see this >> i saw that. he doesn't want an exact date but he wants an idea of what it

looks like the option is holding the government's feet to the fire without getting in the way of running this crisis. i don't have a job with that you are right, just confirming what we saw think is going t happen that is that this cobra meeting today, i think it stands for cabinet office briefing room a the prime minister still remains unavailable there. despite the horrific death toll yesterday. 938 fatalities 7,000 in the united kingdom. the medical experts believe the curve is beginning to flatten. the increase of patients in

critical care was up a lower percent. there are high hopes, we are not seeing an acceleration it is the infections and admissions race to see that key. finding the peak and the plateau. three weeks ago, nearly, we had the start of this. they said it will be a three-week review. they will pretty much decide today that lockdown continues and it is key. for the first time in four weeks my cameraman have been out on the road where it is warmer here. >> it will be 25 degrees a lot of brits will want to get out. the message across the spectrum will say, look, let's see this through and get the lockdown

done that will be very interesting. i did mention the prime minister behind me and my cameraman behind me in the proximitiy. this is where the prime minister has been late sunday as well the good new is that the prime minister is engaging, sitting up in bed and apparently improving in his health. we know once you are in icu, you can be there a very long time. at the moment, the news on the prime minister is very good as well you can see the south bay here and literally over on the other side of the river, the seat of parliament here. back to you. >> thank you we'll take a break and be back in a moment. differences exist between russia

and saudi arabia amid the oil price war. we'll update you on details in a moment

welcome back this is "street signs. i'm geoff cutmore. the markets grinding higher. european stocks this hour are as strong as they've been all week with the travel sector leading the risk on rally after the dow crossed 23,000 on the back of a gain will they agree on output cut? a rally as credit suisse agree to regulator and settle dividends. disney adding more than 50 million to its streaming and starbucks warns its second

quarter earnings will fall nearly 50% >> now, thank you. the contribution from one of our regular guests pointing out that the uk market is really on revisiting the place it saw 23 years ago and will take only 6% at the upside. we are up on the dax 1.7%. italy up 1.5%. italy's futures will indicate we are up in positive trade we are up indicated 100 points higher at the start of the dow session. look at that nasdaq. technology stocks are a place,

which maybe tells you why we are indicated weaker while some of these very beaten up sectors have led us higher that's a quick look at futures what do we see for the oil prices crude prices have continued to rise despite divisions between saudi arabia and russia. there is still a difference of opinion on an output cut hadley joins us with more. how much of a difference are we talking about at this stage? >> it is tough to say especially what we were talking about at the beginning when we discussed the possibility at the beginning of the opec plus, we were hearing anything between 8 and 15 million barrels a day a pretty wide range. folks telling me it is probably around 10 million barrels a day.

it is not just whether these two can come together. it is whether they can be contact with u.s. president's move over the last 24 hours or so to say listen, we don't need a mandated cut he's saying listen, already u.s. producers are cutting back i asked heallima croft this question >> i think we could get to a situation where they could say, saudi arabia, look, we have to get to this. or to the united states, look, you need to make a mandated cut. prices could go to the teens and then we are looking at a situation where u.s. producers will have to cut ultimately, producers will have

to cut production. it is just a question of is it going to be a coordinated cut or will the higher cost producers have to shut in first. >> you remember they were unable to come to an agreement in march when they failed to build on that basicy russia and saudi don't talk it started with the predecessor of current saudi minister and also alexander novak the big question is whether or not they can come to that agreement and whether tomorrow when the g 20 leaders meet and will the u.s. get on board we keep hearing that the united states has to make some kind of commitment here. it is unclear whether the president has any political will in that direction. >> thank you for that. saudi arabia's public investment fund has built up a billion dollar of positions in some of

europe's largest oil companies saying the kingdom's wedge fund has used the selloff as a buying opportunity. the report doesn't specify how the funds are divided by the four companies and those businesses have not commented on that report. head of merging emea research. welcome to the program let me start by asking you what your expectations are from this meeting today. >> thank you for having me on the show logically, we expect all countries will come together to cut production if we remember, the russia stance was that we

would have to wait and see the demand before we make that season since sen, the russians have recognized demand is falling and they have to cut production anyways. they have come and said we better have a coordinated cut and show that we are trying to balance the oil market and help the sector in hard times rather than have disintegration of the entire sector and which case oil prices will be very volatile and prices can go down to $10, $15 a barrel there are a couple of hindrances of this agreement. we hope today, they will overcome them. >> one of those is burden sharing by u.s. producers at this stage as we've seen, oil authorities in the united states have been keen to point out there have been cuts to production.

>> there are two stances here. from what i understand, saudi arabia is in constant conversation with the u.s. and is an ally with the united states for russia, the jury is still out from russia will have to cut out anyways because of the demand collapse and second is that opec plus cannot decrease output and are already suggesting a cut that has been used to deal as well when the situation mandates

the cut. that same mechanism could be applied to the u.s. when both sides will do that >> there are many opt stickles as well. one is what they will lead in as well the german antitrust act of 1990 it prohibits anti-agreements and contracts that attempt to monopolize the market. it is illegal for the united states and by their own laws to actually join what they call an illegal c illegal cartel in the first place. i find it almost nonsense call for a country like india with a huge import bill facing global recession and massive slow down to say, yes, i'll take oil

prices those are two of my objections >> i agree with you. especially on the oil side the saudis and the rush yosianse the research sides the mechanism and the texas railroad commission, this comes down to the political will on negotiations between the u.s. and saudi arabia if they are observing the cuts by producers which are reaching approximately 40% and by our estimates are going to go to 70% that might be assurance enough that oil production is not going to surge by 1 million barrels per day. the coordinated cut are keen not to lose market share like they've been losing the past

four or five years i do believe they do recognize that everybody is going to retain the market share. remember, the u.s. shale production was not going to slow anyway before this crisis. >> that is the key point and something i observed they were all terrified about the lack of investment of shale and terrified about the fact there was a trade war shutting them out of the market they thought they had growing access to which is china. for the sake of waiting a few months or more, what is it in it for the russians and the saudis? if they wait longer, they could have the effect.

>> remember. the complete demand collapse saying the same thing thatthey would increase production. my point is it is now or maybe one month from now where the inventory that remains is amazingly expensive now. the saudis and the russians and everybody else will have to cut production better do it in a coordinated way. remember, russia and saudi do remain petro states for them the volatility is acceptable shale was terrified at $50 to

$60 per barrel they still will remain terrified and reduce production. i don't really see a down side in this coordinated cut because we've seen in march, this is very difficult >> let me come in with another question about substitution at this stage before we have this coronavirus virus story, the feature of how much shifting we were going to see away from carbon-based fuel to renewable there will be those that believe that process will be frozen because of the economic collapse we'll be seeing. this may also say we've now seen clean skies and we've seen a reduction of the greenhouse gas emissions producing a collapse

of this activity maybe we speed up the shift to the noncarbon sources. >> yes and no. i'll approach from the oil company perspective. some companies have been doing that shift already during that collapse of 2014, 2015 they cannot produce oil at this level of crisis already for five to six years. i believe this oil price collapse is just going to confirm the right path for the strategy and probably is going to accelerate this for them. at this price, the only countries that can produce oil is saudi arabia and russia not the u.s. and not oil majors.

they are migrating to solar power and other resources. there is another aspect to this. perhaps this is the strategy of saudi arabia to prolong the life of the resource of which their budget depend. remember when oil prices collapse, demand skyrocketed in all of the geographies where it was declining a number of years. at lower oil prices when covid-19 is behind us, we can see a big spike in demand. this is what i think saudis and russians are talking about when prolonging the resource. >> thank you for that. the head of energy research at bank of america global research. shares in disney rally after the

giant reveal more than 50 million new subscribers signed up for their streaming service as wide-spread lockdowns and a rollout in the uk increased users. starbucks expected second quarter earnings to be down nearly 50% since the lockdowns limited operations the company withdrew profit guidance corporate earnings are projected to decline in all four quarters of 2020 according to a refinitiv forecast the fourth quarter the last period to see the results. for the year earnings are seen dipping by 7.7%. the impact of the virus outbreak is expected to be a key topic when the u.s. banks report their earnings next week

jpmorgan chase and wells fargo release their results on tuesday followed by bank of america, citi and goldman on wednesday. the fed releases minutes from the emergency meeting where it slashed rates to nearly zero. what did it say and how did it affect the markets we'll take a look. i know that every single

time that i suit up, there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses. learn more at protectedincome.org .

we are back. bernie sanders has quit the u.s. presidential race. saying it was virtually impossible to win the race while the coronavirus outbreak forced him to stop the campaign donald trump attacks the world health organization for a second day saying they need to get their priorities right

accusing the w.h.o. of being china centric and threatening to suspend funding. in response, the head of the w.h.o. pleaded for global unity and called on leaders not to politic size coronavirus >> we will have many body bags in front of us if we don't behave when there are cracks at national level and global level, that's when the virus succeeds for god's sake, we have lost -- we have lost more than 60,000 citizens of the world. even 1% is precious whether it is young or old. more than a million cases.

what are we doing? officials warn the outlook has deteriorated but pledged to keep interest rates close to zero to support growth that report according to minutes in march when the fed lowered rates and boosted asset purchases to shore up economics. >> minutes to the reserve meeting released show the reserve cut interest rates to a range of 0 to a quarter percent and expected them to stay there until the economy had weathered the effects of the coronavirus the federal reserve when meeting said the near term economic outlook had deteriorated sharply. that was three weeks ago the fed at the time was prepared to use all tools to support the credit market and has stepped up

and used trillions of balance sheet. prepared for consumer spending an confidence. this was three weeks ago and a lot has changed. it showed concern at that time had elevated to a point of cutting rates to zero and a willingness to use all of the available tools to support the economy. fed officials saying there is more they will do than what they've already done let me look at some of the key markets that are closed for the easter period. the european markets will be shut on friday and on monday, worth bearing that in mind with the observance of the easter holiday. the dax, cac, ftse 100 and ftse.

in australia and athe u.s. will close on friday and monday enjoy that break whether you are celebrating easter or passover many are calling this a relief rally on some of the flattening we've seen in the country here a suggestion i've heard this week is take the opportunity, if you can, to rotate into the kind of positions that have been safer assets through the recent market route that would be things like health care and telecoms. what you see today is the beefed

up recounting of travel and leisure. what are you hearing >> to round back to what steve was saying the fed has done a terrific job of calming the markets down. a terrific job much better than those -- the bafoons, those idiots that have gone by and by now the fed has done a great job so far, they have released liquidity and increased credits. they get full marks as indeed the bank of england. as to what you do buy and what you don't buy, being llooking ae

now, saying i don't know what the pe is, the price to book, is the book really the right value. we've seen destruction you can't work out to decide whether you are buying or selling stuff. you have to go back to the long-term fundamentals look at a warren buffett world, will this company be here in 5 to 7 years time, if you don't think so, would you really want to touch it, if you are an investor >> a terrific point. there are really tempting things out there. the emfx is down 10 to 15% on currencies there will be those looking and thinking, well, currencies are a bit more liquid.

as always, when you are in the epicenter of something like this never, never for months can you be certain that bottom has been hit. worth wearing that in mind if you are looking to put some of that money to work in these markets. >> everyone is in their silo let's go back to the chat we had earlier. the amount of the market out there is catastrophic. >> loving your work. we'll see you on tuesday as we will see many of our audience on tuesday. the coverage continues on cnbc right after this thanks for tuning in shouldn't you pay less when you use less data? now you can.

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breaking news, making a return to bull market territory. but is it here to stay democratic leaders dig in for a fight of new funding to help americans ahead of a key vote today. the world's largest oil producers coming together this morning to talk production cuts as the industry struggles with cuts and prices. it is thursday, apri