[theme music] good morning, everybody. welcome to "street signs." these are your headlines reno drives the market lower after job cuts and plans to restructure several domestic plans. we speak to the ceo later this morning. but jd gives a caffeine

boost as shares jump more than 10% in their debut waking up europe's dor mont ipo market president trump threatens to call in the national guard as violence erupts in minneapolis for a third night. with protesters setting fire to the police station over the death of george floyd. asian equities and the week mostly lower as president trump talks tough on china saying he will issue the white house response to the hong kong moves later today. >> we are not happy with china we are not happy with what's happened all over the world, people are suffering. 186 countries, all over the world they are suffering we are not happy a very warm welcome to "street signs. i want to kick off with fresh data just crossing the wires in italy. the final print, it has been

revised lower. we are seeing 5.3%, that's the quarter on quarter contraction in italy in q1 that's against a preliminary 4.7% contraction year on year. the contraction stands at minus 5.4% compared to 5.8% initially redibted we are seeing worse numbers out of italy than previously expected and this obviously as a beginning of the pandemic begins to get factored into the italian economy. those are fresh gdp numbers out of italy this morning. now in corporate news this morning, we have one company in focus in particular in the us toe sector that's renault it's part of a new restructuring effort for the coronavirus the french car maker aimed to save 2 billion euros over the

next three years and shares trading 3.3% lower. we have bounced off the absolute lows of the day. let's get out to charlotte for more on this story charlotte, investors clearly reacting negatively to the news this morning what are investors so skeptical about? >> we heard from the reliance on wednesday on a plan to try to make it work and so we have a restructuring plan and shutting of that factory. we had some numbers already. we knew they were look iing for billion euro cost cuts here from this morning it's about 20% of the fixed cost by 2022. they will cut global capacity from 4 million to 3.3 million by 2024 so job cuts there. it would be 15,000 job cuts

globally 4,600 of those will be almost 10% of the workforce in france so it will be interesting to see here how this pans out in terms of fixed cost, about 20% of 2022. so overall it costs 1.2 billion euros to the company so the factories in france will be put on the review or on the restructuring. i will be interest ing ing to sw this plays out within the 5 billion guaranteed that they were supposed to receive from the french government. it was a done deal now we have to wait and see how this pan out job cuts that it could be some job cuts in france so they said wait and see. we sign on the check for only when there's an agreement within the job cuts with unions and

local authorities where the factories are. the press conference just started in paris we'll hear more from them on their management this morning. >> whether it's in engineering within the new working framework of the alliance that we present to you two days ago, but also in our manufacturing sites. and what we are looking for is structural costs that we can cut, but we are not announcing a plan to close factories. this is an overall coherent plan given what has been written here and there, we will only be close ing three sites of our 14 sites in fraps this is only to ensure we can keep value added performance

around strategic chubs that are strategic for the future such as electric vehicles or the circular economy we'd like to say these change cans will only be implemented within the framework of a permanent dialogue that's very important to all of us and will be done in very close collaboration with our labor partners and the local authorities that we will try to implement as quickly as possible i'm now going to give the floor who is going to detail about the plan and after she's finished, we will answer any questions you might have thank you and welcome, everyone. as we announced in february and as we also declared this morning, we have talked about the detail of our draft plant to save 2 billion euros, which will be i want im plemted over the

next three years it's a simple one to rebuild the buy bay sis of a financial performance that's most robust i'll keep it quite brief first of all, two remarks. to sum up this plan, first of all, this is a draft plan. and the planned changes will be implemented in collaboration with the labor partners and local authorities, as you just heard from the olympian is goiplan is goinb tackling our operational performance and not our strategy there's a responsibility for that lies on the shoulders of the future and we'll start by sharing reasons why we find ourselves in the current situation. first of all, the covid crisis

simply made the problems that we were already having more serious. and also the previous plan has shown the problems with the structural plan that we had earlier because we were following actually the previous plan, which was to find as many volumes as possible and, in fact, to spend a lot on r&d and in spite of that, this plan has affected our way of working and because we had structural costs that were sized for a growth in the market that had not taken place. that did not take police therefore, it was important for renault to adjust the wit it worked we have to lay the foundations for healthy and resilient

performance. today we are giving the priority to our fm performance so we can generate enough cash flow to continue to invest in our future and to ensure the durability and sustainability of our company. we'll be implementing action plans with a lot of rigger and discipline while keeping our customers in mind and using all the assets of the alliance the cutting of costs is the only objective of this plan that will not be enough to reestablish our competitiveness, but it's the first foundation of actions that will be taken we will improve our variable costs, price positioning and ensure we're not as dependent on sales volumes and it will continue to improve our profitability. later on our next ceo will also add his strategic vision lastly as we presented to you on wednesday, the alliance is a very powerful accelerator of

performance for the group, but let's come become to the savings. to achieve our objective of over 2 billion euros, we have decided to look at every single part of the company. all of the processes, all of the departments without any, and we have looked. we have established three things to cut engineering, production and first of all we have to make less diversity in our vehicle and engines. the second point is to have more common parts, shared parts we have to reduce our diversity and be more efficient. by 2026 we will switch from 30 to 4 platforms we can produce 600,000 vehicles per year, but this is not going to be done at the expense of the

richness >> that's the renault press conference taking police major restructuring olympians unveiled this morning around the french plants. they a they have launched talks with the unions shares will have reacted negatively, but we have bounced off the lows of the day. currently shares are trading 3.9% lower we're going to speak directly with their acting ceo at 12:30 so be sure to tune in. we're going to break down what this means for them moving forward. let's get a check of broader markets now and what the sector breakdown looks like an hour or so a into the trading session. we have red across the board we are seeing a little bit of a reversal of the rotation that we have seen take place earlier this week. we have travel and leisure down 2.9% auto is down 2.8% banks also sell issing off this morning down about 2%. earlier in the week, one of the

big themes we were discussing is whether this rotation out of the quality defensive parts into value had legs now this morning a little bit of caution coming become into markets. no doubt in part on the back of an escalation in tensions between the u.s. and china with president trump yesterday announce i announcing he will hold a press conference later on today with regards to the u.s. move against china with the back of the actions against hong kong taken at the oechbd last week. let's take a look at the regional split, what we're seeing in ferments of the regional breakdown we have the german index underperforming. the dax down is 1.6% yesterday we heard from boris johnson on plans to partially ease the lockdown in place here in the uk. we'll take a look at bond markets. the spread between italian and

enginegerman bond yields narrowo 12.8% on the back of the plan 750 billion euro response package. the borrowing cost jumped in march from near record lows on worries the indebted country would struggle to handle the economic impact of the pandemic, but bonds have rattle lid as the eu and european central bank have become increasingly support i-of the worst hit countries helping italy raise 22.3 billion euros last week. rome is selling a 5 and 10-year bp thz morning let's bring in christopher jeffrey, head of rate strategy, legal and general investment thank you for being with us today. first off, i would love your take on how significant the european commissions proposal is for italy and whether it's justified we see a rally in btps here >> i think it's significant. the principle of european

solidarity embodied in the proposal is the key thing for the market to focus on yes, the size is large in terms of the actual numbers hitting the market, the ecb is far more significant you have market expectations about the expansion of the program next week. >> my issue with it, though, is just how quick ly the money maks its way to italy or any other countries. it seems to me that because the process involves national parliaments, we could actually be waiting well into 2021 before the money gips to be distributed. i wonder whether we have even got through the political objections yet, given the allocation key suggests that the bulk of the funding will find its way from northern europe to southern europe, which is something the frugal four is

still unhappy about. >> there's definitely challenges for this they are questioning why countries lower should be subsidizing countries in southern europe with higher per capita expressing some concerns so the money from the recovery fund will come through slowly. the money that will come through quickly is from the ecb. we don't have the breakdown yet of the pandemic emergency program by country but the suspicion is that they bought something in the order of 100 billion euros worth of italian bonds over the last couple months. that money is hitting now. we'll find out about the details next week when it's released what they have line by line for the lst couple months. we'll also find out whether they are going to upside again.

there's a long-term solution that's being pushed through and the sticking part being applied by the ecb >> can i ask you a much broader question about the debate that seems to be raging around inflation. i think in the short to medium term, bnks have yield curves under control. the bigger question is ultimately whether all of this begins to move the needle on inflation data which means you'd have to do a big shift in the kind of fixed income product you were boying something like tips or inflation index. what are you seeing? what's your scenario looking like at moment for a return of even mild inflation? >> that's great question

the shock we're going through in the near term, that's in two respects one is accelerating the pace of the retail market. fst it's been given a huge shot in the arm the succeed factor is going to be pretty acute in key sectors once we get through that, i think that's when you kind of start to get into worry iing abu how exactly will the markets be able to digest what is unprecedented stimulus it was floating around as an out there academic approach that nobody was applying in principle. central banks seemingly have

want adopted it there has to be concerns about a risk premium as we get through the covid shot >> the expectation from the market is a that they will announce another 500 billion euros in the emergency purchase program. what are the chances that the governing council underdeliver now that we have the fiscal response and perhaps that means a little bit less pressure on the ecb to support markets further here >> it's a genuine concern. the market has been getting excited about the size of the envelope they might announce we know they burned through the

overall spending that they allocated to themselves. so at some point, they start thinking about what comes next we have a little bit too early for that to be really going all in with an expansion so we worry about the defense of a short-term disappointment. i think then you what's the structural story here. the structural story here is the personnel has moved on the principle of whatever it takes. it's still alive and well at the ecb. italy has been too big to fail with the financial conditions across the whole of the continue negligent. not just itself. >> we're going to have to leave it there thank you for joining us this morning. christopher jeffrey, head of inflation and rate strategy at lgi. jeff, also thanks for contributing there coming up, the 750 billion

euro recovery fund gets a thumbs up from france and italy, but opposition remains in a quartet of northern countries. we'll speak to mario centeno, next there's a bridge. between ideas and inspiration, trauma and treatment. gained a couple of more pounds. that's good for the babies. between the moments that make us who we are, and keeping them safe, private and secure, there's webex. ♪ ♪ beautiful.

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welcome back to "street signs. the uk prime minister announced mans to further ease lockdown restrictions in england from next week. the rules will allow six people to be outside in private gardens as well as in parks. he stressed this was a cautious step forward as the uk's daily death rate increased 377 yesterday and remains among the highest in europe. announcing the next phase of easing olympian plans, the new rules will allow families to reunite after more than two months of lockdown >> mondaywet will allow up to sings people to meet outside provided those from different households continue strictly to observe social distancing rules by staying two meters apart.

we will now allow people to meet in grdens and other private outdoor spaces these changes mean that friends and family can start to meet their loved ones >> meanwhile, france will reopen restaurants, bars and cafes from next week, but with strict social distancing measures staff will have to wear face masks and allow one meter gap between tables the government will reopen beaches and parks, but major sporting events and large gatherings will be banned until at least the end of june the eu step up its fiscal response to the coronavirus as it unveiled plans for a 750 billion euro recovery fund it would see the funds raised before distributing the money but thrust grants and loans, but the proposals are facing

opposition from a quartet of northern european countries known as the frugal four mario centeno joins us now sir, thank you for joining the program this morning what do you think of the proposal put forward by the european commission this week and what are the chances it actually passes largely in its current form >> thank you for having me this is an excellent proposal. i think we are we have a decision and this is great news for europe next, we have a negotiation yet, but as we know, all steps forward are difficult. at the end of the day, we all get from this. those that are prepared win the most

>> good morning. it's sylvia here i wanted to ask you about the 250 billion euros in loans that the european commission suggested. at the moment, no country has actually topped for additional loans. why should there be anymore loans in the recoverly olympian, given that no country has interest in requesting for addition money >> the instrument is a backstop. it's important for us to have it countries use it in case of need mrkts have been reacting quite positively to all the decisions

we have made and these are very good news for everyone but the important thing is that we do have backstops we have actually the things for support to employment and for businesses through the commission and the instruments levels so i think we are really building up a move that through contain the crisis >> a look for a moment in 2019 portugal achieved the budget surplus. that was one of your main aims as minister of finance but the pandemic is changing the situation. i wanted to ask you how big will the deficit for portugal be in 2020

>> we are preparing that information to send to parliament i can't tell you that we expect something in the commission. these will be a one off change in our very positive trajectory of the last four years we will recover from these with the same commitment to perform a passive system so we can be looking at substantial change in the deficit, but both this change will be. >> sir, if this fund passes, the fund proposed by the european commission, it really would mark a radical transformation in the

way thedownon operates do you see this paving the way for the european union to eventually implement eu taxes and even an eu treasury. is that where we're heading? >> the debate and a very large amount of money, common money to fight this crisis. if you compare the size of these with what is expected to be in our previews, budgetary history. this is almost 75 times bigger this is very important moment for europe we need to complete our institutions and that's one of those very important institutions for europe unfortunately, it's much easier to make this sort of progress in

crisis time than when the sun is shining, but this is what it is. and i think what we need to praise at this moment is the excellent response that at national level and at the union level we are providing to fight the crisis >> this context of economic recovery for the european union and the eurozone and in particular, i wanted to ask you about your future plans. because your term is expiring in july there were media reports a couple days ago suggesting you're keen to resign from your position when you met with the prime minister so ufs just wondering, do you want a second term as president of the euro group? >> we will start the process of electing a new president on june 11th

so it's more than one week from today. and i will take all those decisions until that date and they will be announced to first my colleagues and then everyone else >> minister, madame lagarde, the head of the ecb, made clear her view is that the fiscal side of things really needs to step up its role here in the crisis. do you agree with that do you think that the ecb has taken on more than its shirt of the burden here when it comes to supporting the european economy and paving the way for recovery? >> i think it's absolutely clear as of today that the fiscal and monetary policies came together very strongly to fight these very unique crisis we have to make sure that this

is temporary crisis. this does not have any structural dimension behind it and it cannot develop into financial crisis because that will be very negative for everyone so this dialogue between the fiscal and monetary dimension in europe has come along for quite some time and i have no doubt that this time we acted united >> sir, thank you for very time this morning appreciate you joining us. mar thank you so much. coming up on the show, president trump prepares to up the pressure on beijing over its hong kong national security law. we'll have more, when we come back truly transformative sleep. so, no more tossing and turning... or trouble falling asleep. because only tempur-pedic uses proprietary tempur® material...

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welcome to "street signs." these are your headlines re no-fault drives the car

sector lower.nault drives the cr lower. we speak to the ceo lirt this morning. jde pete's gave a boost. waking up europe's dormant market minneapolis takes center stage in the trump twitter feud as the social media group slaps a public notice on one of the president's tweets about the unrest in the city accusing him of inciting violence. and asian equities and the week mostly lower as president trump talks tough on china say ing he will issue the white house response later today >> we are not happy with china we are not happeny with what happened people are suffering all over the world. 186 countries, all over the world they are suffering we're not happy.

>> president trump has announced he will give a press conference today to outline measures aimed at punishing china for its new national security law. potential actions incloud tariffs, sanctions and companies and the stripping of hong kong's special trade status the hong kong government has come out strongly ahead of the u.s. president's press conference warning washington that any sanctions would be a, quote, double-edged sword. let's bring in sherri keng who joins us more. detail for us what we have heard from hong kong has the territory braces for president trump's press conference later today >> one of them is the fact that it's one country, two systems. they are calling it internal affairs. this is really a familiar line from china and hong kong often

times. even from last year when we were dealing with the extradition bill so the government urging washington to butt out and don't mind our internal business and it wept on to say to the commentary you were just tug about, double-edged sword. if washington makes any move to undermine hong kong's special status that it enjoys with the united states, sure, it's going to be damaging to hong kong, but it's going to also hurt american companies that are looking to do business with china via hong kong as well as in hong kong and there is a big american community here as well we have 85,000 or so americans living here in hong kong working here and it is important hub of international banks as well as a trade.

so not know whag he's going to announce has put a lot of nervousness in the markets that's probably why the index is not being able to catch a break on this friday session still underperforming and there was a big selloff on friday and staying very much close to the level as well. so close iing the session lowery 0.7% this follows the hong kong government welcoming china's legislative body passing the controversial national security legislation yesterday. and there was a letter coming from the chief executive herself and that letter is circumstance bait lathed by the government and some of the local media as well some of the the newspapers are carrying that letter as well and really the letter is part of our campaign to better appeal for hong kong people's support for the piece of legislation

it's not a done deal just yet. the npc did vote on it, but now the smaller decision making body is going to be working on the details of the legislation and working with the hong kong government, the judiciary to have the public consultation and then finally implement that set of rules here in hong kong so we have some ways to go for the national security legislation to become the official real thing, but more immediate threat to hong kong and the very fragile relationship between the u.s. and china is what president trump has to say in the press conference on friday >> thank you so much for flushing it out for us those tensions between the u.s. and china having a bit of an impact on sentiment this morning. we are seeing european markets trade in the red following asia low er we have the ftse down 100.

the german index down about 1.4% this faollows four positive sessions in a row yesterday. it gained a about 1.6% we are coming off a strong rally in particular demand for the more secular value so a little profit taking. now jde peet's, it has investors buzzing. shares have surge d as investors eye up one of the few big companies to go public this year amid-the pandemic. they raised 700 million in issuing new shares to pay down debt the two key shareholders sold off an additional part of their stock. but still hold a significant stake of 62% in 23.4% respectively this has been an interesting ipo story. very successful by most measures

thus far the speed with which is progressed, it wrapped up in just ten days compared to four weeks. they saw very strong demand, which is the other interesting aspect of this deal. they cover books in three hours of opening this is an extreme lip high quality company. it's well known brand. and it will bely yid if the aftermarket. so far, shares performing very well the european commission has announced its pledging 25% of its long-term budget for climate-related projects leaders want to increase the $7.5 billion fund announced earlier this year to help cou countries move away from coal. the new plan will also see more investments in renewable energy and a massive renovation wave across europe. the commission unveiled its proposed 1.85 trillion euro

package for post pandemic recovery to discuss back to work strategies that align with goals is richard madison, true cost global thank you for being with us this morning. i'm curious your view. climate change advocates have called for an overhaul of our systems. to make a change in the outlook, coronavirus, many believe, presented this opportunity how drastically do you think companies are going to change their behavior is this going to lead to a lasting impact on the way we do business >> i do believe so, yes. i think we have a huge opportunity to define a new way of doing business that will be both good for economic growth. that's definitely what we need coming out of this pan dem and i can crisis but also that it's good for the planet a lot of businesses are

investigating strategies to do so >> the problem here it just seems is the way that governments are uncoordinated in their thinking i would be interested in getting your sense of how we can move forward here with still so much division around the world on what the appropriate green agenda is. >> there are three things that companies can do in the absence of any government policy governments will be looking to do a number of different things to boost economic recovery during this crisis and some governments, in particular governments in europe, are actually creating economic stimulus packages linked to the green agenda and climate change and those are, for example,

encourage video calls and cutting business travel, cutting business travel by 40% would put the entire aviation sector on to a 2 degree climate so aligned pathway with the paris accord the second thing companies can do is if companies worked from home they worked three days a week, that would align the transportation system in line with climate goals and finally, we buying locally for 7% of goods with the whole shipping sector on a climate aligned pathway. >> but just coming back to the question, the signals that are being sent out by different blocks, in one case discouraged, in another case encouraged

we look at the eu 750 billion announcement very much part of that has been a whole slew of proposals around different parts of the points that you're making about how we can perhaps reduce commuting, we can improve the use of electric vehicles and so on when you look at the u.s.'s approach to coronavirvid-19 ande stimulus agenda in the united states, washington has talked about bailing out oil and gas companies, not giving money to renewable energy businesses. again, doesn't that provide some complications for companies that are looking for clear guidance on what they should be doing around their own climate change agenda >> the climate agenda has been fragmented to some extent. that's delayed action over time, as we have seen. but actually one thing is

government stimulus packages that's helpful or unhelp nfl the context of the climate agenda. but another thing is actually to look at capital markets and how capital markets are reacting to these types of topics. if you look at companies that perform well on environmental social factors today, those companies are outperforming the market in general. so this is attracting interest of investors when you think about who is going to bail out companies, it's not just governments. it's actually investor appetite and as capital markets change, as equity markets climb, we're going to see increased -- we expect to see increased appetite for those companies whose strategies are aligned with a more sustainable future. >> putting a lot of the responsibility there on the investors in these companies richard, thank you for joining us this morning. ceo of true cost global. two stories collide

president trump limits social media protections while twitter strikes back issuing a public notice on his tweet about minneapolis. we have more after the break stay with "street signs.

welcome back to "street signs. president trump has sign ed an executive order targeting social media companies paving the way to weaken their illegal protections. it challenges the communications decency act and could give regulators the power to pursue actions against platforms like facebook and twitter holding them responsible for content posted by their users. the move is widely seen as retaliation after twitter added fact checking links to a pair of the president's tweets trump accused internet giants of having unchecked power and playing politics as he signed the document facebook ceo has cnbc he doesn't believe internet platforms should be arbitraries of truth

he addressed the littest criticism as he outlined his company's fact checking policy >> we have a program to make sure that the things that are spreading virally on facebook aren't complete made up hoaxes if you look at the top thousand or 10,000 links are that are being shared in a given day, some of the stuff that people share on the internet is real junk and it's completely made up. you don't want that stuff to be the stuff that's going the most viral. so we have a program where we work with independent fact checkers on that to make sure things that are completely hoaxes are eliminated but the point of that program isn't to like try to parse words on is something slightly true or false. it's really to catch the worst of the worst stuff in terms of political speech, you want to give broad deference

to the political process and political speech, but there are lines. >> this is very much a developing story just in the last hour, twitter has placed a public notice on a tweet from president trump saying it violates policies regarding the glorification of violence the president began tweeting overnight in reaction to the minneapolis unrest saying, quote, when the lewding starts, the shooting starts. the move is set to further flame the tngss between the social media giant and the white house. president trump also threatened to call in the national guard after demonstrators took to the streets for a third day after 46-year-old george floyd died while be arrested by police. he was filmed on the ground, handcuffed while a police officer kneeled on his neck. the minneapolis police station was evacuated after being set alight and businesses have boarded up to prevent looting. the mayor of minneapolis addressed criticism from president trump, who branded

him, quote, very weak. >> weakness is refusing to take responsibility for your own actions. weakness is pointing your finger at somebody else during a time of crisis. donald trump knows nothing about the strength of minneapolis. we are strong as hell. is this a difficult time period, yes. but you better be damn sure we're going to get through this. >> our nbc colleague tracie potts joins us live from washington, d.c. there's so much to unpack here we're seeing really two separate issues collide with the demonstrations in minneapolis and president trump's response to those and then president trump's ongoing clash with twitter ignited earlier this week. what's important for our audience to know with with regards regards to these two issues >> so when it comes to twitter,

overnight we got, as you noted, more reaction from twitter saying not only did the president's tweet glorify violence and violate their policy in doing so, but also they were afraid of the risk of people seeing that tweet, reading that tweet and inciting nor violence they are not taking it down, but they are limiting interaction to it this, as you said, follows the fact check earlier this week on the presidents president and mail fraud the president and twitter have been going at it essentially for several days now as for what's happening in minneapolis right now and the federal response, not only is that on the ground where national guard troops are already there. the president threatened to send them but the governor had already activated 500 troops as the police precinct was stormed and set on fire overnight. that was why we saw the mayor reacting in the middle of the night at that news conference. he hadn't heard the president's tweet when he made that comment.

but also the federal investigation, the attorney general is involved. the u.s. attorney, the fbi is involved and they are asking for time to do justice in this case. the four officers have been fired, but a the lot of people based on that video including the mayor are calling for criminal charges >> it's worth noting demonstrations are not just limited to minneapolis we are also seeing protests in los angeles, memphis, so clearly a major issue in the united states these days. thank you very much. tracie potts live in washington. we'll leave you with a lock at u.s. futures that's it for me today have a wonderful weekend "worldwide exchange" is coming up next. anyofowahing

it's 5:00 a.m. in new york here's your top 5 at 5:00. is break even the best you can hope for in 2020 we speak with the head of the world's largest wealth manager to find out. nerves are high as president trump said to give a speech about china just one day after beijing cracked down on free speech in hong kong. speaking of speech, twitter responding to trump's order targeting social immia