that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] good morning welcome to "street signs." assume julianna tatelbaum. these are your headlines basic resources rally on a surprise rise on exports in april. despite conditions from a number of blue chips. turbulence for travel industry air france klm and iag does not expect passenger demand to recover until 2023

hotel giants see room revenue plunge 80% >> the central bank said they only answer to the court not the government the call to justify its bond purchase program significant loss of output has become inevitable. that is the message from the governor andrew bailee forecasting a 14% drop in gdp. sterling rising as the bank of england predicts a sharp recovery in 2021 >> caller: expect a recovery much more than the pull back from the financial crisis. after the british telco cut

its dividend looking to shake up its sector a warm welcome to "street signs. let's get to our top data point, chinese exports jumped by 3.5% in april as reopened factories in the country moved to fulfill back log of orders. with a 2% fall in the month. the biggest decline since 2016 the trade surplus grew to $45.3 billion. far above expectations how meaningful is this jump in exports? is it reflective of rebust gains or concentrated in particular sectors? >> even after that beat?

export numbers in april, the con k consensus i'm getting -- they don't really think this means china is turning the corner in a meaningful way in the pandemic they don't see this kind of resilience to continue in the months to come the request is the foreign demand we are not talking the demand from china but the lockdown globally hurting the demand overseas for sure, chinese april balance beating expectations some are saying this might have been really the back log from the first of three months this year or some short-term boost out of china as well that's perhaps the reason why we didn't see the meaningful

recovery for the chinese if anything, there was a bump upcoming up, bouncing back from a month low. i do want to talk about this trade balance or surplus with the united states. this is certainly what the market seems to care about these days, this renewed tension between the u.s. and china at this point that actually saw a big jump from 15.3 to 22.87 billion u.s. dollars in the month of april. certainly, this is something beijing authorities may not want washington officials to pay attention to at this point something to flag for our viewers, import numbers. that is a demand collapse with china. what does that say about

meaningful recovery? i wouldn't read too much into that export beat at this point that number down 14.2% that shows how the chinese shoppers, still very nervous about going out there physically to shopping malls to spend money but a layer of that could have been a lot of questions over their personal finance remember, china is also suffering from rising unemployment data or rates as well really, can they sustain this kind of bounce back in months to come very much in question at this point. >> thank you for breaking the data down. i want to bring you fresh data out of the fx reserves and how they progressed. reserves have come in at $3.0915 from april that is up from $3.061 trillion

at the end of march. that is ahead of expectations. the market was looking for $3.05 and has come in at $3.09 that's the news from the chinese central bank i want to bring you other central bank action. this is a surprise move out of norway they are cut the policy rate to zero percent in a unanimous decision let me bring you some of the context as to what informed this decision the central bank says activity in the economy has fallen abruptly as a result of the coronavirus. the down turn has amplified on surrounding countries. the environment has weakened in the ex schang rate the economic activity is expected to pick up as containment measures are eased

it would likely take time for output to return to the levels returning before the pandemic. the all-important question, how quickly would the banks be able to recover they do not envision making further policy rate cuts implying eamon tarry policy stance low rates cannot prevent the impact on the economy but it can help dampen the down tuturn they have cut rates to support the norwegian economy. let's move to the bank of england who has voted to keep rate steady and held off on injecting rates. in line with analyst forecast. the central bank has forecast a 14% drop in uk gdp this year and

also predicted a 15% rebound in 2021 it stressed such a scenario would require significant and monetary stimulus. let's get to steve what do you make of what we heard from the bank of england pretty significant commentary. that's my take away. >> these numbers are shots in the dark they are examples, as we've seen, i'm sure viewers will be looking at how difficult it is to assess data the bank of england says we've lost this percent. accumulating the data physically is so blooming difficult the numbers are enormous first quarter down 2.9

second quarter down 14%. 15% recovery next year frankly, they are educated shots in the dark. i totally take your point there is a degree of optimism and perhaps a v-shaped recovery, which appears to be the andrew recovery a lot there about the business investment and the declines there and business spending. what i'm more interested in. that comes in the financial stability report that comes in here and now this isn't the great financial crisis as far as the banks are concerned. the mechanism is working as far as the bank is concerned the infrastructure is

functioning well through periods of extreme volatility. the guilt market, the performance of the banks and getting the liquidity to the companies that need it despite some really big questions regarding the pandemic i think we can say by and large the banking system has performed pretty well. they are talking about the desk top stress tests they've run generating materially smaller bank losses than the tests they ran last year. the cet 1 ratio. something you and karen and geoff and i spoke about. that is a decline but still healthily in double digits way above what we saw in the financial crisis these are scenarios and examples the fact that the financial system is working and the bank of england seems a little more

bullish about the strength of recovery plus the fact that they are willing to put more money in the system in june, if needed later to support the guilt purchase and the markets by and large, i would say this is neutral to slightly larger today. back to you. let's get over to markets and see how equities are holding up. you've got the stoxx 600 trading about 0.4% higher. now we have a little red, patches of red on the board in auto, travel and leisure the german dax leading up about 60 basis points. this follows a slip from yesterday of the main banch mark down 0.3%. travel and leisure has been in

focus. we've heard about some earnings and meaningful comments around what to expect around travel iag doesn't expect passenger demand to return until 2023. we are looking at a long process for travel and leisure telecom also there real estate, travel and media leading higher let's get to our guest jeffery. we've heard now from norgus bank, bank of england. a sharp recovery there after what kind of recovery are you expecting? >> caller: good morning. thank you for having me on the show we are anticipating a sharp d n

downturn but less than what is forecast and then less strong from what the bank is forecasting. we are expecting a 6% gdp decline. 8% in the eu next year, a 2% recovery and next year, a 1.5% recovery next here >> and what you are doing in the markets. quality feels like the most consensual trade here. bond and market rally has been skued towards these stocks they look more crowded and expensive. what do you see here are you offering sickcyclicals?

>> the picture is a very, very challenging one. we've got disperisan and weak outlooks we think the way to look forward is to concentrate more on balance street strengths more than anything else we think those companies are most likely to keep paying dividends and next year be in a position to capitalize and make acquisitions from the cheap assets that's one area we are looking at and areas that are defensive in the covid-19 environment. that would include areas like health care and information technology then when it comes to the outlook looking much longer term, we are focused on longer term themes.

they include fintech, cyber security and alternative energy. those themes still have drivers in tact with reasonable entry points into them >> good morning to you i'm glad to see you are safe and well >> in the trends you mentioned, crowded and overpriced is a statement often made why do you think they are not overpriced >> good morning, steve we think the way to assess them is the long-term earnings potential. the compound earnings growth is likely to be very attractive on the peg multiple. a lot of those companies are looking reasonably priced with the ratio below one the second thing is to accumulate them

slowly into weakness in line with how we are viewing the current market environment and how we are slightly stretched in the near term we would be using those consolidation periods to a couple late and get good average prices and a couple late for the longer term. >> on the last week of april, we spoke to bernard looney, the ceo of bp. you like the energy but the market hates those as well given the disparity between traditional and new companies and the former have aspirations to become like the latter. is there an opportunity in energy regardless of the low price and regardless of what is going on in the pandemic >> yes, we do think that the

major energy companies are looking oversold they have been pressured by the weak oil price and also by dividend cuts, for example, shell cut the dividend for the first time in 77 years being looing at the longer term theme, we find the better way to approach them is to companies looking to diversify that's a lower risk way of getting exposure >> a macro theme, that's been dominating in investors focus the last week or so. that's around the court ruling this week. we are not necessarily looking for your view on the specifics of this. how are you seeing the greater risk around the eurozone where we are seeing the greater rift tensions are brewing here around

the way the central bank has handled itself around critics anyway >> when we've considered the outlook for european assets, we have been concerned about firstly, the inadequate response we have had so far they need to do more on the monetary and fiscal side secondly, we are looking for more solidarity across the eu 27 we are awaiting the 27 budget next week and hopeful we'll get a step in that direction the court decision two days ago was unhelpful. in addition to the solidarity issue gives us a legal hurdle we need to get around we think in the medium turn will be a constraint for the solidarity and also might compromise the ecb decision

making in the medium term. we do expect the ecb will be jo ongoing with the plans and including the pepp, emergency plan in med term, they might feel constrained. >> shifting gears, the u.s./china claim reentered a few hours ago, more comments flying across the wire do you expect this to crop up as a major risk in the coming weeks and months >> caller: it could heighten in the runup to the next election if you take a country like germany, it is already showing very, very weak factory auto books and the export numbers

were very, very weak this would constrain the up turn we might see from the external and the exporting countries from europe and the uk. >> thank you for being with us today. head of investment strategy city private bank a number of earnings crossing the wires shares of ab inbev slightly higher despite warning that the second quarter will be materially worse after profit fell 14% in the first quarter. the maker of budweiser also pointed to a steady recovery in china throughout march shares 2.5% higher now metro shares have been impacted. as the german groecer posted a

drop and posting a beat to expectation. shares there trading about 1% higher we'll take a quick break coming up, liberty global and major merger we'll have more when we come back

across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners. comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail. and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs. call today. comcast business.

welcome back to "street signs. bp has suspended its dividend until 2021/22 as the company tries to shore up cash reserves. britain's biggest telecom group added the full impact will become clearer over the next 12 months bt developed a plan to modernize the business over the next five years. >> telefonica profits plunged.

along the lines of analysts expectations the giant is sticking to 40 cents dividend per share for 2020 reaching a deal to merge operations valuing o 2 at $13.7 and 18.7 on a total value. aimed to take on current market leader, bt telefon kau tried to offload a potential ipo was delayed by brexit let's get to karen, what do you make of all the news flow. >> you've got major operators trying to get their house in

order. starting with bt and the dividend being slashed it was one of the strong dividend payers on the ftse. after the share price plunged on the back the feel of our investors to swallow as strong as it would be to make a decision around the payoff what you've got, it will be basically half of what it was previously that was huge when you look at the previous side. in terms of what is happening, that is stepping up and much criticized in the press and by the users around the connectivity the company can't do everything. at the same time, they've had a hit to business from covid-19. and what is the price tag from

overseas and now that you've got depressed economic decisions the bt has said on the industry consolidation that virgin 02 deal needs to happen telling you about the requirements around 5g everybody wants it, we know it is there we heard that in the up tick today around efforts to connect cities also worth noting the company is up 32,000 a week stepped up from where it was in january. accelerating those trends. it steps up competition for the number for bt on the fixed and mobil lines, it has a stronger competitor with 02 and the media. they are huge at $6.3 billion.

that's not just slashing costs but sharing of infrastructure where they extract some of the benefits to provide services each entity's customers at lower cost also cutting a marketing expenditures it systems and there might have been some overlap. noting too that o 2 has been the side for number of years has tried several times to offload this division. first tried to sell off three. this is the fourth attempt to try to do something with 02. back to you. >> thank you for breaking it all down for us. we are going to take a quick break. when we come back, we'll talk travel coronavirus induced lockdowns have put hotels and airlines under pressure and threatened

jobs around the world. we'll have more when we come back 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 .

welcome back i'm julianna tatelbaum these are your headlines basic resources rally on a surprise rise of exports in april. helping european markets to stay in the green despite earning from a number of blue chips. turbulence for the travel industry forecasting significant operating earnings iag does not expect passenger demand to return until 2023. the hotel giants see room revenues plunge 80%. ecb fights back. vice president says the central bank only answers to european courts and not governments as it resists the court's call to justify its bond purchase program. significant loss of output has become inevitable. that's the message from the new

boe governor as the bank forecasts a 14% drop this year sterling rises as it predicts a sharp recovery in 2021 >> caller: expect a recovery much more rapidly than the pullback in the current financial crisis >> as you can see, it is turning into a positive morning, the dax now charging higher. gains really broad based investors expect to return on the recovery weighing in on their expectations with a sharp drop in the output, inevitable at this stage they are expecting a rapid recovery looking through the dire earnings from a number of

companies across a raft of sectors. looking ahead at the end of the year and out to 2021 that's the story for equities in europe wall street is looking at a bounce the dow looking at a triple digit rise s&p 500 and the nasdaq looking at gains looking at the nasdaq outperforming the dow and s&p. we are looking at the u.s. weekly jobless claims report ahead of the u.s. none farm payroll report >> shares in tui are among the biggest fallers after morgan stanley cut its rating to underweight. air france klm has reported an 815 euro loss. air france shares down about

3.6% iag has also said the second quarter will be significantly worse. predicting that demand will not cover in terms of passenger numbers until 2023 as sure as it does have significant and sufficient liquidity. if we can push on and continue talking about the travel sector, i want to bring you some sound hopefully we can get it for you in just a moment we are looking at intercontinental this company expects an 80% plunge adding that coronavirus crisis is the biggest challenge the industry has faced the ceo told cnbc that most hotels in china have reopened unlike the rest of the hotel >> most have reopened in china when you look at europe, middle

east and africa, about 50% of our hotels are now closed. in the united states, we have less than 10% of hotels closed about 15% of hotels are closed around the world the reason it is not more is that we have a large scale mainstream business operating around the united states in the uk, we have about 150 hotels open and many that are open are housing front-line workers or assisting in recovery efforts. business is still operating but limited visibility about what will happen until we see more opening restrictions >> airlines will suffer a 90% drop in sales. added that the industry must be supported as it accounts for 10% of the gdp >> let's bring in sylvia

the impact the coronavirus is having break it down, how has the travel sector been impacted? >> massively that's the reality there are significant challenges ahead. if we are looking at airlines in particular, the commission estimates that revenues may be down by up to 90% in 2020 so as a big hit compared to their figures in 2019. we've already witnessed some dramatic figures from the air transport association saying that european carriers have lost -- they saw passenger demand dropping more than 54% in march. the expectation is that this figure will be higher for the month of april, given the majority of lockdowns across europe were implaymented in

march. when we talk about airlines and how impacted they are, there is also the side of airports and saying that they expect operators to also see revenue losses of 14 billion euros in 2020 when they actually forecast that figure, they estimate that travel restrictions would be lifted at some point in april and that has not happened. so actually, that revenue loss for airport operators could be much higher for 2020 when we talk about travel across europe and how much the sector has been impacted, we have to keep in mind that right now, the european union has a ban on travel from outside the eu this is to last until may the

15th, so next week i checked to see if this would be extended. they told me, indeed it could be extended in the coming days and could depend on the health assessments that this could receive in the coming days you can see, this is also a message we got from air france klm and whether we got the 2020 performance and that they had to drop their guidance for the year there is a lot of open sectors as a whole >> thank you for laying it out stay with us we want to bring in our next guest. thank you for being with us today. i think the big question on people's minds is can the summer holiday season be saved. what's your take

>> i think they are going to be saved. after all of these weeks of the bad news, we know there is no demand hotels are closed. borders are closed planes are grounded as we talk there is some light at the end of the tunnel. as a previous guest was saying, there has been an announcement for may 13 as they were saying for the commission to announce the communication from tourism taking the third biggest industry very seriously and they want to come with some solutions to resume travel this summer the question is going to be when and how. people advocate for the response we do think and truly believe that we need a coordinated response to the requests and to kill this uncertainty out there

on the demand side also, we have to help all of the business they are going to be announcing all of the recovery plan this will get 20% of all of the demand that it is going to be spent from this side of the european union they even talk about the new marshal plan for europe when they refer to the recovery plans and the after covid-19 aftermath. we think the key here is going to be coordination and harmonization that we agree. we cannot allow that every country has its own receipt for the same thing otherwise, that would create more uncertainty and a lot of confusion among demand and travelers and also, all the supply chain already suffering please take into account that

the entrepreneurship is based and also the family business a lot of them are seasonal workers too. we need to reach and penetrate with this recovery plan, all of these people that are needing now help not only to recover the business but up to this new normal as we call it now. >> hi, it is sylvia here i wanted to get your reaction on a comment the commissioner made about the tourism made about the sector he said this is an opportunity for the sector to reinvent itself and become more green and digital. what do you think this means do you think the sector will become smaller as a result >> yeah. i think it will get smaller and it will have to get better

europe as a leader destination worldwide. as you know, europe receives 50% of all tourism arrivals worldwide. we want to believe leadership is not about being first but being the best we were already talking about covid about how can we get more sustainable and more digitalized. i think we have the tools but didn't have the willingness to do so. the very revenue treatment, we have to think about maybe a shift towards smaller travel people are going to ask themselves before they book, what is going to be their impact not only from environmental but what are they doing for other communities they visit and the whole value to be had. we are very welcome by the industry many of us have been working on

this change for the industry for many years this is going to be an opportunity in the crisis to make this change happen. i think the key here is going to be technology. we are going to do more and digitalize the sector in a much more current way and try to get the involvement of all tourism stake holders and not trying to leave anybody behind >> i want to ask you about some of the comments i heard yesterday from the croatia prime minister he was trying to create a corridor where they could revive summer different from the air travelers welcomed should we be concerned about a second wave coming because of travelers being so desperate to

get travelers in summer? is. >> in predictable weather pa factors and market flow. the market mix has completely changed. practically all governments are now shifting to what they call domestic tourism that will be the first step. they'll suggest their own nationals to stay in the country. then they will move and the borders are reopening. we have to move to a intra-european travel and seeing what the position would be if there is a solution for the covid crisis in the form of a vaccine and are we going to do a mass test in airports and borders? we don't know yet. we are not concern

we see already that international markets in china and u.s. will recover later. china is recovering much faster than anybody else. chinese tour operators business, there is a huge demand already of the chinese it is what they call revenge travel people really want to leave their houses after this period of quarantine and lockdown they will be a rebound of tourism but it is going to be as the commissioner was saying, a very different one i would say it from a personal point of view that it is going to be what we call conscious travel people will start thinking why are they doing some things in a way maybe they should not be doing some things. all of the dialogue concern me in dialogue change and social

cohesion how can we get the revenue better spread and the value change we'll have to leave it there, thank you for your thoughts sylvia, karen, thank you guys as well back here, prime minister boris johnson has said he will begin easing lockdown measures he made the announcement during the first question time with the new labor option leader. the easing measures would come despite the uk reporting the highest death toll in europe 649 people lost their lives on wednesday taking the overall total above 30,000 ecb vice president says the central bank remains committed to the mandate and only operates under the european court of justice, not individual government after the court called on the ecb to justify its asset purchase program

the court also threatened to block the bundesbank from participating if they do not comply in three months let's get to annette tensions are clearly brewing where do we go from here >> caller: i would not say tensions are brewing but between the constitutional court and the ecb. that in general is not very popular, i guess of course the ruler in the end has seen it as well to spur inflation in the eurozone.

the position is awkward now. they are responding and saying they are not going to investigate anything they are not operating the rule as they are operating under the national justice. the upper national nations state such as hungry may act again saying the international law that is completely not in the interest now the situation have to come up in spite of the new approach and investigation and might send that to parliament ecb is such that they are not doing anything they are reiterating that they

are willing to do more if the situation should worsen. beginning today with the speech. >> thank you for the clarification. appreciate getting your view there. coming up, president trump backtracks on shutting down the task force amid option to the decision we'll have more when we come back these days staying connected is more important than ever.

so we're working 24/7 to maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected.

for more information on how you can stay connected, visit xfinity.com/prepare. welcome back president trump has reversed course on his decision to end his coronavirus task force saying on twitter that the mike pence-led group will stay on indefinitely to tracie potts. it feels like there is a lot of back and forth in washington

what can you tell us >> so, this was a very quick reversal by the president. he was adamant that he was shutting it down we were given memorial day as the possibility of being done. a few days later, the president said the opposite. it was staying open indefinitely he didn't realize how popular it was with the american people before shutting it down, this group of health experts that have been advising him he's going to keep it open and add two or three people to focus on the business aspect he has a meeting with the governor of texas to talk about that he's going to instead of completely set up a new group, he's going to merge in with health experts and retain those as they move forward and try to

talk about the economy we are expecting more numbers about how many americans have applied for unemployment the rate according to some expected to hit a whoping 16% because of the impact this has had with so much stuff closed. >> thank you for keeping us up to date. the u.s. unemployment picture is expected to improve slightly 3 million americans filed for unemployment last week, down from 3.8 million the week before u.s. private employers laid off a record 22 million workers in april. bracing for the key report tomorrow the unemployment rate is expected to have risen to the highest level since the great depression jumping to 16% in april compared

to 4.4% in march china's foreign ministry fired back to mike pompeo after he failed to provide evidence that the virus started in a wuhan lab saying he is contradicting himself and telling one lie to cover another. we'll have mike pompeo on later and you'll want to tune in for that the dow looking at about 220 in gains nasdaq and s&p also looking to open higher. teau'm julianna talbm. thank you for watching "worldwide exchange" is up next.

there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

head fake or here to stay. rebound of more than 200-point loss investors turning back to the jobs market. the white house 180, administration backtracking on plans to wind down the coronavirus task force one carrier caught charging passengers to keep the middle seat empty call this the ultimate stay-at-home stock shares of this power house are surging. no free lunch as one giant