s not daa y goes by i don't think about her. that's for sure. i know i'll see her again someday. that's what keeps me going. [music playing] good morning, everybody. welcome to "street signs." i'm julianna tatelbaum these are your headlines stocks in hong kong plunge as protest erupts and the local government says it will fully support beijing as it prepares to support a new security measure. >> rising tensions in stocks around the globe u.s. futures point to a

250-point loss for the dow the chinese government makes the rare decision to drop its growth target for the year as primier says they are facing great uncertainty. into remote will remain for facebook around 50% of the employees will work from home in the coming years but warn those working outside of silicon valley may have to take pay cuts. a warm welcome to "street signs. let's get into our top story of the day. hong kong's government will fully comply with the government's decision. the administration has rejected decisions the new laws will impact the rights and freedoms

currently enjoyed by the hong kong people. opposition lawmakers were removed forcibly a lot of escalations and tensions not only between mainland china and hong kong but questions about what this means for relations between the west and beijing. let's look at the hong kong market hang seng index down on the back of this news eyeing the national people's congress the move has taken some by surprise the fact that they are planning to impose the new security legislation a lot of what they had to say in terms of growth and stimulus grabbing headlines in asia

let's look at hsbc and standard charter and prudential these are three china sensitive, hong kong sensitive names. standard down 4% and hsbcd 5.2, prudential down 7.7% looking at key financial we are seeing red for a image or of luxury here lvmh down 1.9% we did hear from burberry this morning and they talked up the recovery they are seeing in mainland china and korea some strong numbers there, now coming into question whether that trend will hold given the escalation and tensions that will come together the last 24

hours. let's look at basic resources names. china decided not to go ahead an give a growth target but they did say they are prioritizing jobs this is a key part of the chinese social stability efforts. we are seeing a pull back and losses around 2% to 3% angelo american down 2.7, glen core down 2.7 as well. let's broaden it out to european forces dax down 1.4%. ftse 100 down 1.9% standard charter, you saw moments ago. basic resources names heavy in the united kingdom french index down 1.45%. the ftse mib down over 1%. let's look at wall street.

you've got red across the board there. the dow looking to open about 250 points lower this follows a retreat yesterday posting a second negative session. risk assets driven by the uncertainty that has come forward over the last day. chinese premiero outlined a plan in an address to the people's congress. >> translator: we will fully and faithfully implement one policy, two systems where the people of hong kong govern the people of hong kong and the people of macao govern the people of ma could you and the government of the two see the two responsibilities we'll support hong kong and

macau in growing their economies. let's cross out to emily first what has been the reaction from hong kong? we were just bringing the audience some pretty heated images of what was happening in the legislative council. run us through the detail. >> this news of a new national security law hit the market yesterday afternoon around this time there was already market chatter and concerns within the business community. there were futures yesterday pointing to a negative start down the way it played out today, we closed down 5.6%, off 1,300 points we could not even hold a 23,000 handle in the index.

basically the division between the camps. it is the pan democrats against the pro establishments making the statement that the national people's congress will push it right through without going through the legislaty law in this city if i can show you the heang seng heavy weights. hsbc shares off 6.25 t tencent down the resolution is on the agenda of the national people's congress which will be voted on the final day of the session next thursday may 28 doing so will introduce through

promulgation and no need for legislation. the response we got from carry la carrie lam saying she will cooperate to complete the decision it will not affect the rights and freedoms enjoyed by the hong kong people and will not affect the decision of the people's legal entities that did little to calm the people down. at lunch time, we had a small gathering on hong kong island. there have been calls by flash mobs tonight by one of the activists josh wong. we are keeping an eye on activities they have planned over the weekend there have been protests on the national anthem bill that will be pushed through on wednesday. that's happening sunday at 1:00

p.m. and 6:00 p.m. that procession is not authorized yet we are expecting protests this weekend in response to this latest national security legislation that will be put through the national people's congress >> wow a lot to look out for this weekend. u.s. president trump has warned china against introducing a security law in honk dog kong ad said washington would react strongly but did not elaborate china has dropped annual gdp target for the first time in history. the economy contracted 6.8% as the government shut down large parts of the country in a bid to curb the outbreak. chinese premier decided why they had to abandon guidance.

>> translator: we did not set a target for economic growth, because our country will face difficult factors regarding the pandemic not setting a specific target for economic growth will enable all of us to security in fix fronts and stability in six areas. >> let's get sam in with us now. beijing decided not to go ahead and give a growth target they did outline the prioritization to the job to boost employment this is usually important to social stability break it down for us what did we learn so far >> good morning. we were expecting this economic recovery and fiscal stimulus to take center stage but there was a lot of attention on the hong kong national security beijing will be looking at the

protests with a concern because they don't want to district. as you heard from the premier li there, this is the first time china has done this but no huge surprise we were expecting a large amount of emphasis on the contraction we were expecting a huge amount of focus on jobs and social stability. china says it will create some 9 million urban jobs this is the lowest number we've seen since 2015. this is significant given the pandemic has put an enormous amount of people out of work we have a migrant people that have been put out of work. there are a lot of students that have been pumped out of university that want jobs. premier li did talk about the

support china would give to smes and local governments this year to try to safe guard employment because we know that is key to political stability and they are introducing further tax cuts to the tune of some 500 billion yuan on the trade front, china said it will work with the u.s. on the trade front. this is after white house advisor larry kudlow said it was still in tact and there would be no renegotiation we have to remember this phase one deal kicked in when china was very much at the height of its epidemic many saying china really needs to be given a chance here. the takeaway was that the defense budget increasing by 6%. lower than we've seen.

it does give us clues about china's intentions moving forward. we know china's actions have unnerved washington. this is quite possibly a sign or message to taiwan and u.s. that china still has military muscle despite this economic slow down. >> thank you for breaking it down for us. for more on the fresh turmoil in hong kong, check out cnbc.com. let's bring in our next guest, professor of economics at the london school of economics steve also joins the conversation professor, thank you for being with us. we were speaking about the situation in china and the focus beijing has on the jobs market hugely important for social stability in china the jobs market has been a huge

topic with recovery across the world. i'm curious your thoughts particularly in europe versus the united states with the ladder focusing more on employment and benefits in europe and the uk, focusing on job retention. which of those policies will better serve the economy longer term >> i have to say the european approach will help the economy better keeping workers and their employers attached to each other. that will call for more speed and recovery when it comes and the time is ready. you don't have workers wandering off and doing other things where they have to learn the skills and come back and relearn the skills we do know from extensive labor market studies that the skills

are required without formal training that become useful for the employer it is a moral issue. if you feel that despite all the things going on around us, this pandemic, you still haveyour job and your employer is still there in touch maybe occasionally talk to each other through the web even if you cannot go to the office. these are very important things about putting in effort when the recovery comes i have to say the european approach is the one that we definitely have chosen >> christopher, good morning i remember a panel discussion in davos in 2018. we were talking about robotics and ai but talking about now, do you think we are at a stage where

jobs will be lost to robotics? >> that's a good question because there was a gradual replacement of jobs but then those are the sector of jobs opening up also affected by the covid pandemic it is not very good news for workers in relation to their technology, i would say. what the pandemic has shown many companies is that if you rely less on labor coming into a big office or a factory or something, then your patients would be less affected by the futures. the assumption of automation will accelerate. provided companies have no

financial difficulty, which i don't see a major obstacle in 2019, my immediate reaction was, don't worry people are going to have more time off hospitality will provide many more jobs. health and care because of aging would open up many more jobs and in person-to-person services service in your home, your company, going out and all that. now these kinds of jobs are being affected it will be rather difficult, i think. especially in the beginning when it comes to jobs >> you mention, sir, providing the companies have the financial ability to make this technological leap do you think companies that have spent a vast amount on shares,

by backs and dividends will actually enter a new golden age on spending in order to future proof their businesses >> they need to. the question is will they convince their investors that this is the right time to do it. that they've got the capacity and the market to sell looking at it from my point of view in the sense of stepping outside. i think that's where the future is going to be companies that do it first are going to be successful it also

depends on what governments will do in the amount of new debt they will discover having at the end of this crisis they'll start posing austerity points in terms of taxes and getting money out of the public now to repay the debt is not going to be good news for companies so i hope they don't do it. >> i want to talk about creative disruption that has really interfered with the process. the more firms that have kept afloat to this zombie affect which leads to lower security. what are the implications? >> you put your finger on a

critical issue my work is so closely related to creative destruction what i've said is if only we could find a way of supporting the jobs that were not going to come under destruction and allow the other jobs to be destroyed, we would succeed in bringing in technology faster. rather than go so far as say the central banks are destroying creative zrup creative destruction, we are now being faced with a new problem you need to support employment we are facing a different problem. not technological problem. you need to focus on the jobs that were going to be destroyed because they were going to be

destroyed anyway that becomes a serious problem when the time in which support from central banks and governments and systems and so on, it becomes longer. it cannot come out sooner rather than later, say, october, november i don't see this as serious problem because this is a longer term process if the support continues, say, for a whole year, i do get worried because i see a lot of destruction taking place >> thank you for joining us. sir christopher, professor of economics and political and science at the london school of economics noble prize in 2010. coming up, apple enjoys a

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welcome back alibaba will release full year results later today with investors keeping a close eye on sales of the cloud business. announcing a $30 billion investment following the surge in demand amidst the coronavirus outbreak they may have benefitted from the reopening of the chinese economy. apple saw a recovery after sales plunged by 60% in february as the chinese economy remained in lockdown. let's get out to arjun this is a pretty strong increase how long of a signal is this >> this seems to be activity

picking up from apple. i've been digging and pulling together in data forces. telling me 3.9 million iphones were sold in april up 160% from march idc telling me shipments, th th apple has sold up in march consumer spending in the app store continues up it all tends to paint a rosie picture now for apple coming off those lows it released the cheaper version.

concerns about consumer spending here in china as there are uncertainties over the future of the economy. that could mean the future looking to other brands. the likes of prices that still have very high specs apple hasn't released a 5g iphone yet around 40% of smartphone sales this year expected to be 5g devices. apple doesn't have one on the market that could force people to look elsewhere and perhaps hold off on purchases until apple does release one that could be a head wind going forward. right now, rosie picture being painted. recovery for apple and tricky few months ahead back to you.

>> tricky decision now coming up, brazil could become the second worse affect the country as the number of coronavirus cases jumps past 300,000. more after the break we'll leave you with one of the markets in europe that has been weighed down by the rising tensions in hong kong.

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signs. stocks in hong kong drop the local government says it will fully support beijing as it prepares for a new legislation on the territory rising tensions weigh on stocks around the globe with the big banks pulling europe lower while u.s. banks see a 250 point drop on the dow the chinese government makes a rare decision to drop its growth

target for this year as chinese premier li says they are facing difficult times. >> remote will remain for facebook but warns those working outside of silicon valley may have to take pay cuts. hong kong's government will produce fresh legislation for the territory. rejected decisions that the new laws will protect the rights and freedoms the new law will demand and beijing will seek to bypass the council and enact regulations

directly into law. the chinese foreign ministry has warned that they will fight back if china tries to suppress it. ongoing tensions between beijing and hong kong and china and the rest of the world. big questions about what this move will mean for geopolitical relations around the world let's look at some of the major hang seng heavy weights. the index dropping to the lowest close since march 24 the biggest percentage drop. these are some of the major movers cathay pacific down 5% tencent down 4.8%.

let's look at broader markets and reaction to this news. shanghai composite down. holding on more firmly hand the hang seng index. news that beijing has not put out a growth target this year. they have withdrawn it and will focus on the jobs situation trying to create more jobs that news seems to have been overshadowed by the tensions that have risen. looking at the markets now red across the board we have bounced off the lows of the session. a little more optimism or perhaps pesimission. taking a hit as well as those financial names. the dax down about 80 basis points earlier the dax lead losses down

about 1.4% coming up today, a strong week for that index let's talk about emerging markets. brazil on track to a record daily death toll of around 1,200. taking the total deaths in the country to around 20,000 the president remains adamant the country should open up again. argentina has agreed to extend negotiations with creditors as it looks to avoid what looks to be its ninth default. looking to restructure some new foreign debt argentina still expects to default on some 500 million worth of sovereign bond payments as part of the final agreement managing director of tenao is

with us. if i could first get your thoughts on the situation in brazil things have become very dire there. the president there continues to deny severity of the situation he's at odds with officials leading on the health front. are we bracing or should we brace for a constitutional crisis in brazil >> the health situation is certainly severe apart from the number of daily deaths we are seeing, the new cases are now in excess of 17,000 per day, which suggests in two or three weeks, we'll see very high death rates indeed as you say, balsenaro has this

guidelines put out by his own ministry of health he's gone through two health ministers and well-qualified, capable healthministers. despite his miss steps and the approach the majority of public opinion is in favor of tougher restrictions seeing them last longer that's partly down to just his hard core militant support base that voted him in on the anti-corruption platform could reflect the fact that there are huge government ha

handouts going out up to 50 million are eligible for that we could see a slight resolve and explains why he's fairly resilient in support levels. there is another aspect to this. congress is pretty reluctant to consider anything as radical as impeachment proceedings when there is not really any sign on the street of discontent to the fact that social distancing means protests are not viable at the moment if we were to see big protests and parties moving towards taking action, then clearly we could see a constitutional crisis in the meantime, despite the health crisis which is extremely serious, no, for the moment, no

constitutional crisis. >> what about the economic side of things? fair number his base remains unflinging with this approach. when you look at the currency, it has dropped about 30% versus the dollar since january gdp has dropped something like 7% this year how long can this dynamic persist? >> brazil is headed towards some pretty serious economic stress this year. but what we have seen is congress often, this predates the health crisis but congress acting on its own independently. so bolsonaro has been isolated we've seen congress move ahead with its own agenda. there is some scope there for

congress to take action. we see state governmenters and local authorities having their own leeway what is a federal system to press ahead with their own different plans. different to central government. so, yes, it is a big concern it will depend on when cases start plateauing out but at the moment, things look very bleak >> nicholas, regardless of the social miss management, pandemic mismanagement, and economic mismanagement. all of the products years ago are now a debtment because they are selling all these products to u.s. and china and neither economy need them at the moment,

do they? >> no. this is a problem facing the whole of latin america region or the primary commodity exports is the demand shock and the economic shock stemming from the covid-19 crisis is actually much more significant in my view than the actual health pandemic most countries accepting brazil and mexico, which are the two biggest economies. most actually took very restrictive measures at a very early stage. school closures, bans even continue most of them continue to contain the worst of the outbreak but they've been hit very hard by

the oil price shock and worsening price for all their other commodity exports. that will show yet again how reliant the region is on these kind of primary materials. so speaking to governments in the region, they are desperate to see the growth pick up again. >> a lot of viewers want to know what is investable at the moment i look at crises down to the border down to argentina, brazil, we don't even mention venezuela. is there any point our viewers should look out for a well managed sustainable economy? >> i think the best managed economies in the region would be chile, peru and possibly columbia you can see that in crisis

management, their political management of the health crisis and in the fact that they have a bigger war chest available to them to cope with the economic fallout which gives them greater bounce back capacity you will see everywhere else in the region is going to contract this year. there is no doubt about that when you look at the capacity who has to bounce back next year relatively swiftly for me, peru and chile are stand outs it will be going through constitutional change and may see uncertainty with respect to the whole economic level comes under debate i still think those two

countries plus columbia and other smaller countries, costa rica and youruguay are success stories. just because some countries have done relatively well so far, it is difficult to tell we might see restrictions loosened too early and then reimposition of quarantines. we might see a more unseen or slower part than some are expecting. there are still some ways to go. >> thank you for joining us with and sharing your thoughts. we are going to take a break now. coming up on "street signs," from back to the office to working from home. we look at the balance employers are trying to find in the new normal working environments. d te room smelling like sweaty odors. yup, he's gone noseblind.

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welcome back to "street signs. england's top flight football league is looking to continue after a decision was put on hold

due to coronavirus some premier clubs have returned to training but safety concerns remain after six staff and players tested positive earlier this week. let's get to steve i know so many sports fans will be so excited for this break it down, how will this restart work >> if the restart happens and we think it will happen it is soccer, football, the round stuff. the premier league season amounts to 92 games. it was almost dusted and done. they have been brilliant this year 82 points from 29 games, which meant they were only six points for winning the league klopp leading.

they want to know if they are going to get their champion's league position. a lot at stake still if they don't get the final plays, they will lose extra million pound of revenue they've paid a lot of money still owed to them as well. everybody wants soccer to go ahead but safely for whatever health concerns or just getting back to contact sports we understand that as well baby steps phase one started. stage two is potentially contact training by the end of next week if that goes ahead, it is a race to get teams fit and ready for

those pencilled in as a june 12 restart to football. of course, we are not going to see crowds in stadiums it is important these will be televised as well and talking about some free to air tv on saturday afternoon that used to be all the games and spread out so they can maximize the tv revenue. that is the hope the clubs which had their third quarter figures losing vast amounts of man losing pounds that go to the tottenham game. 20 million because of their revenue. a whole host of issues remain. one is key, safety of the players. two, do you have central venues. a lot of lower placed clubs it is question mark seeing relegation in their battle

three, will there be relegation as well. so very contentious issues across the board they are all being tested stren uously constantly. 748 tests were carried out at the start of the week. six positive tests among the club one player and assistant manager as well. >> steve, i assume by viewers earlier, you were talking about yours truly. thank you for the translation and the update on the latest soccer developments in the uk. even though silicon valley is expecting a permanent shift most workers are trying to balance working from home. our next guest says employers must require finding a new balance over the next three years. joining me now, thank you for being with us today. this is a really interesting

topic here the office has changed so much over the last decade moving from traditional offices to emphasis on wellness in the office. what are people going to want out of their working space after the pandemic >> a really great question the sharp answer is there is no off the shelf answer to it finding that some tasks seem to increase efficiency. for others, those really fall over the key thing really is taking this once in business life cycle opportunity to assess where they are and find some kind of hybrid solution for what works for their staff in terms of working from home and working in the office and how to reconfigure that to work for them. >> when we talk about working from home, one of the key

questions that comes to my mind is culture how do businesses maintain culture when they are not working together >> offices are really engagement platforms for staff. their greatest asset are people. there has been a great focus on creating really aspiring aspirationsnal environments. that has created a great sense of culture and great efficiency and profit really businesses have to find the way to transition that culture across what we've been doing is working with businesses and managers to really engage with the staff and ask about what works from home and what tasks will be better from home and what businesses are finding from those responses that they don't need to be there 90% of the time.

maybe 60 to 70% and leaving them at home making them better for the job and productivity in the business >> a short-term business here at cnbc, we've started implementing new safety measures stickers on the floor in the elevators telling us which direction to walk in clearly safety will be a key issue determining how much people want to in return >> that's the key thing. focusing on making them feel safe there are some immediate changes you can make people can feel safe and comfortable returning. in our own space making preparations for the staff to

return to the long-term solution every company should engage with a company like us to figure out what is the future what is the right configuration for the office for people to come in and feel safe and secure and for part of the team to engage and collaborate and move the business forward >> thank you for joining us this morning. let's give you a check on the hang seng, the hong kong main index has closed sin the lowest level since march 24, the biggest drop since july 2015 down 5.6%. this comes after the news out of beijing and the plans to impose a new national security measures sparking tensions and also

questions around the relations around the world with this news. let's look at u.s. futures yesterday, u.s. stocks retreated. we are looking at more losses but not as steep as we were looking at early this morning. the dow looking to open about 180 points lower we were looking at about 300 points lower we have paired back those losses and looking to negative sentiment to hit those u.s. markets. that is it for me today. i'm julianna tatelbaum thank you for watching "worldwide exchange" is staying up next. do stay with the channel i got an oriole here.

eh. common bird. ooh look! over here! something much better. there it is. peacock, included with xfinity x1. remarkable. fascinating. -very. it streams tons of your favorite shows and movies,

plus the latest in sports news and... huh - run! the newest streaming app has landed on xfinity x1. now that's... simple. easy. awesome. xfinity x1 just got even better with peacock premium included at no additional cost. no strings attached. just say "peacock" into your voice remote to start watching today.

it is 5:00 at cnbc global headquarters 5:00 p.m. in hong kong beijing cracking down on hong kong that may crack down on that city's freedoms. we'll talk about the future of travel in the post pandemic world. the ceo of airstream will join us oil has made a remarkable bounce ceo of