ut theun ht. that's all it mattered. that's all for this edition of "dateline." i'm natalie morales. thank you for watching. [music playing] good morning welcome to "street signs." i'm julianna tatelbaum these are your headlines renault receives 5 billion euro lifeline sending shares to the top of the stoxx 600 tui reaches a deal with boeing sending shares higher as the travel group boosts finances after suffering from 737 max delays >> the u.s. government opens an investigation into nine

countries planning to impose a digital tax saying it will defend all actions for american business and intentions over big tech the pentagon moves 1,600 troops as protesters defy curfews and continue to take to the streets of america a warm welcome to strooinz pmi today. the euro area. we have got the individual companies. the final composite for may has come in at 31.9. the services sector came in at 30.5 ahead of the flash number of 28.7. the down turn ease in may. growth still some way off.

we have bounced off the lows seen in april. the euro continually higher. euro has been very strong of late investors getting excited about the commission recovery plan trading about 40 basis points higher than the dollar now we've also got fresh numbers crossing on italy and italian unemployment the jobless rate coming through. the jobless rate came in at 6 bot 32% better than the consensus of 9.5%. march was revised previously better than the market had been expecting. a couple of comments around the data the steep fall in april was due to the italians giving up the search for work a midst the crisis the jobless rate was accompanied

by a market drop in employment levels this was again due to italians giving up the search for work in large part due to the coronavirus crisis roman holidays could be back on. visitors are welcomed back to boost the crucial tourism sector severely hit by the lockdown be sure to tune in for that. what kind of measures the italian government is putting into place let's take a look at the european markets and how we are trading this morning yesterday was a strong day advanced about 1.6%. outperforming the u.s. market that has been u.s. trade as of late up 1.1%. the trade taking place has been this reopening trade with

investors taking money out of the growth stocks. those parts that benefitted initially in the post march rally and putting it into the stocks and the more cyclical market let's take a look at the regional break down now. we have italy reopening on the travel front the uk has seen a strong bid for sterling in the last several sessions a lot of focus on brexit relations between the uk and the eu a compromise could be on the horizon but not a lot of detail. ftse 100 up higher dax up 1.6%. strong day yesterday in the german marking ets there catching up with the broader europe the cac 40 up 1.6% in italy, that market up 1.6% as

well let's kick off with renault. they've finalized a $5 billion credit facility. looking to shore up its finances the state will guarantee up to 90% of the loan. we are seeing strong bounce of shares up 8% let's get right out to charlotte. we've been talking a couple of weeks about what this could look like breathing a sigh of relief this morning. what more could you tell us. >> finally, the news came this morning. it meant to be a big deal in the guarantee on the day the same day, some reports came about the job cuts and then because of a small political storm and then saying in

parliament in terms of job protection in france we know last week, they presented the restructuring plan to become more effective and try to address some of the problems we have of overcapacitiy several sites review in the country. very vigilant there making talks start this week. a lot the retirement and redundancy and keeping pressure there with a 15% stake announcing the package for 8

billion euros saying jobs need to be protected. the package would support the industry that needed to invest in france. finally, this has been signed by the government interesting there is a 90% at the government around 70% given the level of risk this was for the banks. there had been negotiations and now 90% through that market. >> pretty significant move there. giving you a check higher 8.6%. part of that trade taking place with investors rotating into

more cyclical valued parts one of the most unloved markets for last year. for more on the state of the auto industry, tune in to "worldwide exchange" for an interview with volvo ceo lvmh is reconsidering the 16.2 billion offer for tiffanys. the board met to discuss whether to proceed with the deal in light of the virus impact and conditions in u.s. markets shares in tiffany sharply lower on the news. tiffany is the one with to watch with shares dropping sharply yesterday. tui has a compensation deal with boeing the travel group said the deal

will strengthen liquidity as it reduces head count by 8,000. boeing providing credit for future orders and a two-year delivery shares trading about 7% higher elsewhere in the airline space, lufthansa has posted a net loss of 2.1 billion euros the german airline set a detailed outline for 2020 is still impossible and warned significant decline for the year trading about 3% higher. the main focus has been the major rescue package the biggest since the crisis began in terms of german corporates being bailed out. let's take a look at the broader environment unemployment rate at

6.3 in may gradually exiting the the lockdown receiving 1 million further applications and having already received 10 million since the start of the outbreak. the chief german conomist. thank you for being with us. one of the most well established in europe how do you feel about the labor market looking forward and companies think more seriously about the long term and potentially resizing their

offerings. >> where the companies are thinking about longer term restructuring. down sizing their labor force or bring people currently on the schemes back to work looking at the airline industry or german car industry it looks like above the impact from corona, there is a lot of structural change going on i would assume not all of the jobs will be maintained. when we look at the german response to the pandemic, one of the features have been the prag mattism shown. does this mark change at the top or should we expect to see the

government return to their view around balanced budgets moving forward? >> this government will only be in place another 1.5 years the cleaning up will be the job of another government it wasn't such a dramatic change it was defending the famous black sir owe. he sulz said if things go according to plan, of course if something goes wrong and at the time, nobody was thinking about corona pandemic. the government was always prepared like in 2009, 2010 to fight the package. the response had to be expected.

the deficit, the deficit spending ahead of 50% gdp. from the size and scope. what do you think of the response that is 100 billion and what we had in oir cap cue lagss for the meeting outlook in 2021 in our assumptions

you can clearly see they tried to position themselves in the coming next year they are fight hard for debt relief of local authorities. something always pushing for and got rejected by the cdu. not only is the cdu pushing for the kind of premiums to buy new cars there is a big debate for the electric engines and be possible for the clean diesel or hybrid engines. the overall measure is a huge number we'll see something around $100 billion. another 3% of gdp. compared to what is already

offered and affective is a minor thing. >> stephon, coming into this crisis, things were slowing already about the need to make structural shift in response to deglobalization and trade wars do you think the federal government is taking advantage of this appropriately to think about how the economy could shift more to a domestic demand footing? >> unfortunately if we compare this crisis, the bond we could see in 2008, 2009, this time, the domestic economy is taking the hardest hit because of the lockdowns. german industry was not under

lockdown quite a contrast to other countries. obviously with all the plans, there is basically the idea to use the money to push for further digitalization and a green economy. at the end of the day, i think most of this transition has to come from corporate germany. if you look at how germany has dealt with the shock so far, if you take the pandemic itself and the number of infections and things like that, actually some of these kind of features of the german economy, we are criticized for at the german levels and cozy relationships between the industrial partners.

the slump that were better than the european partners. the features of the economy and society you are criticizing. covid-19 and some of them were quite good to increase resilience of the economy. >> thank you so much for sharing your thoughts. chief german economist >> fresh news crossing the line on germany germany plans to lift the travel banl for eu members from june 15 this has been reported but according to government sources, this is due to come into effect from june 15 notably, the u.s. is not mentioned in this line here. the travel ban to be for member

states britain, iceland, norway from june 15. the next phase of brexit talks kick off on reports the two sides may be able to compromise with a look at what the uk and brussels may bring to the table next step onto the blue line, sir. this device is giving us an accurate temperature check. you're good to go. i have to take care of my coworkers. that's how i am. i have a son, and he said, "one day i'm gonna be like you, i'm gonna help people." you're good to go, ma'am. i hope so. this is my passion. if i can take of everyone who is sick out there, i would do it in a heartbeat.

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welcome back to "street signs. italy will lift travel restrictions welcoming those from the eu. some eu states are still imposing quarantines from residents returning from italy a warning that, quote, italy will not be treated by a leper collin >> walk us through what this measure means and the steps they've taken to ensure the safety of visitors going there this summer. >> i'm standing at the central

train station here in milan where you can't see them but it is packed with reporters and camera crews everyone is trying to understand what the italians are feeling. how are they acting at this opening up and lifting of the travel ban what we got was not too much excitement the capacity of the trains leaving is at about 15%. these trains can be filled at most 50% to ensure all of these safety measures that have to be applied. they are keen on moving around and cautious of that put in place. you still have to wear a mask outside and three or four regions is one of them you still have a lot of restrictions in terms of social distancing

you cannot hug and kiss. if you want to go to a bar and have a coffee, you can't stand up you have to be seated and be distanced. the same goes for restaurants. it will be a slow pick up for tourism. for italians as well as tourists from outside it looks like mostlystaying in italy. less beach than you would expect limitations there are extensive. the distancing there is harder to carry out on a beach. tourists from outside may not get that experience. we may not be getting that many people coming from the united states the gdp that depends on tourism is going to take a hit this summer as well as services in the meantime, italians are getting back to work getting the economy back to normal we expect to see a decline

between 9 to 13% >> thank you so many are looking to get back to those italian beaches this summer the uk could be ready to compromise on fisheries and more with the uk. hopes that they could reach a compromise has pushed the sterling above the 1.25 mark today, the prime minister will face the first questions since the question that cummings may have broken lockdown rules is there any reason to be optimistic around these negotiations >> i see nothing new in the news today. sources are not concrete

for the mark on the channel. i don't see anything quite the opposite. for the uk government. in the last 48 hours, they've talked about having a make or break summit by the end of the month. that is one enormous headache. we've started to talk about the trade wars and begun to talk about brexit again as the reaction has been front and center as it should have been the last three or four months he's going to have an absolutely bruising encounter today the leader of the option has been forthright in the attacks of the government in recent

weeks we know where he's gone on this one he feels the government has burnt its trust. getting a grip on the management over the covid-19 response all risk the second wave of infections the government is winging it as well talking about one of the issues and talking about quarantining for uk passengers coming into the country. facing enormous questions questions such as how on earth will this be enforced. a whole host of questions.

will be an interesting 24 hours. >> exactly so many brits are trying to look at that. thank you for breaking it down for us new german car registrations were down around 50% in may to around 170,000 cars between january and may. new registrations down to 35% to around 990,000 cars that is a pretty grim picture for the german car industry. 50% in may so a pretty steep drop on a day when the auto stocks are rallying coming up, british company beacon claims it could challenge. off to a strong start. ceo fraser robinson joins us after the break.

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welcome back to "street signs. i'm julianna tatelbaum these are your headlines renault receives $5 billion lifeline from the government sending shares to the top of the stoxx 600. tui reaches a compensation deal with boeing boosting finances after suffering from the 737 max delays opening an investigation into nine countries planning to impose a digital tax saying it will take appropriate action to defend american businesses and reigniting tensions over big tech the pentagon move 1,600 to washington we've had the euro area composite and pmi come in.

now we have the uk numbers the final services come in at 29 flat better than the flash estimate in line with what we saw across the eurozone the composite number rose from 30 in may versus a preliminary reading the uk beating flash estimates on services and composite number the message from the euro area pmi and the uk is that we have bounced off the lows in the first wave of the coronavirus pandemic but still looking at the contraction. the pace has eased we are looking at a green start to trade for u.s. markets the dow looking at 195 point

rise we saw u.s. trade lag europe worth mentioning that rotation we have been discussing in the value market continue yesterday. tech stocks up 0.6%. a lower performance what we saw with the dow and the s&p 500 green across the board theity 58 yan market up 2% as italy reopens and releases travel restrictions and tries to get ready for tourism ftse 100 up 1.2% a lot of focus and prime minister's questions today where we will get a little more clarity on the plan when it

comes to the travel policy in particular the quarantine plan for those coming in to the uk. oil rallies on hopes that rallies will agree on cuts meeting as early as tomorrow telling washington that saudi arabia and russia expected to honor the cuts shell up nearly 4% bp up. very strong bid here as well with logistics startup beacon has added the impressive roster to complete the $15 million funding round. the uber founder and garrett

camp among its backers plans to disrupt global shipping by using ai to use the shipping routes and keep the cash flowing in fraser robinson, ceo of beacon with us now. first, what is so different. what are the results so different versus ways the companies ship around the world? >> we spent a long time researching it essentially freight forwarders which is what

we do. creating huge efficiencies mean we can provide a vastly superior service with alternate updates, superior routes, and working capital. working with one of the greatest problems, which is cash flow >> congratulations, you've raised $15 mill kbrion in fundig jeff bezos is an investor. what is your rea ligsshlationsh amazon >> i should be clear that this investment is from bezos himself, not amazon. there is no commercial relationship and no direct tie with amazon itself

got to be clear about that distinction. >> you've got the attention of the world now and that's great you've got the attention saying we are digital, they are analog as well. those won't stay analog as well. they'll watch and say, yeah, i get it they'll do it as well. all these companies saying, we'll go digital now and squeeze you out. >> it is a great question. we expect it to dig ties itself. it's a trend already happening certainly in the experience i've had previously it is much more difficult for large companies to retrofit and make themselves more efficient overnight. they are either buying technology or businesses to help them get there starting with the technology

first and foremost i think you have a better shot some will do so less so we shall see i'm confident there is a huge opportunity for us there is a gap for the meaningful market share and we've already seen that. >> i hear you. expecting all of these all the time lapping up digitalization as well is it striking for them to say, we cannot retrofit it, we'll just buy you would you like that? >> no. we think we have a chance of building something quite big and meaningful you have to remember the industry we are in is not

one of the top players the remaining 60% is spread across thousands of freight forwarders around the world. we think while we can put a lot of pressure, there is a lot of business to be consolidated around the world we think we can join the ranks without having to sell out, as you say to one of the other businesses >> how is your business different from uber freight which seems to be working along similar lines. >> uber freight. a very good question an important one uber freight is a complimentary business to businesses like us what they do is that they are a marketplace for arranging simpler a to b truck loads if you need to get goods by truck only or lori

freight forwarder is with goods that has to be trucked to a port to get to a ship or airplane to arrive at a destination to get back on a truck, go back through customs. the uber freight piece is a component they can and will be a great partner for us it is fundamentally a very different business >> thank you, ceo of beacon. the trump administration has launched an investigation into digital taxes being adopted or considered by a number of america's trading partners uk, eu, brazil and india

the government was prepared to, quote, take proper actions sylvia, you are covering the recovery fund for us and flagged the potential issue as a way to pay down this debt in the future what more can you tell us about this story >> indeed, this is a question of time because of two reasons. there is an ongoing investigation regarding new digital tax. the institution is meant to come up with something no later than the end of 2020. suggesting at the start of the

year this this digital tax should be voluntary for u.s. companies given that these are the largest tech firms worldwide. it was a question of time to see the divisions over digital tax that many countries are desperate for fresh revenue. as we heard from the european commission, they intend to come up with additional revenues one was the need to come up with the content across the eu. one was the economic shock from

the pandemic i asked earlier this morning if he thinks that the proposal would end up in a trade war with the united states >> it is something that has to be finalized at the european level if we could not find refuge in row teksism. i do not think that this is data as well. >> there is still no agreement over this recovery plan. no agreement over the eu countries whether they should indeed pursue the digital tax for money to deal with the economic crisis that is what we need to monitor at this stage

whether there will be a consensus of how to tax digital firms. the first proposal is not expected before october. we'll have to wait for news when it comes to digital tax. >> thank you for flushing that out for us bringing you data points around the euro dollar overnight gauge has risen to a 10-week high of over 12% on a strong rally today, trading on the basis points weakened to around three-month lows a lot of optimism on the back of the commission recovery fund a lot of analysts saying this is a reduced tale risk.

how much upside is there to this trade in the u.s. on the back of the protests taking place across america. on that front, military forces are moved into the washington area as unrest continues to grip the u.s. we'll have more after the break. ♪ the covid-19 pandemic is creating food insecurity on a scale not seen in decades. an estimated 54 million americans will struggle with hunger. ♪ with 200 food banks and 60,000 meal programs, feeding america is the largest hunger-relief organization in the country. join morgan stanley in supporting feeding america and your local community food bank. ♪

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welcome back let's talk about what is going on in the united states. the pentagon has moved 1,600 soldiers to the washington area in response to demonstration and growing unrest across america. one day after president trump said he would use the u.s. military to stop the nation-wide protest sparked by the death of george floyd many protesters defied the 7:00 p.m. curfew from d.c new york's curfew was extended to sunday after 700 people were

arrested the governor called the recent looting. >> joe biden has no active option left. all states holding elections expanded mail-in balloting to ensure safety during the pandemic long lines, failing voting machines and missing ballots marred the election day. biden lashed out at trump. and accused him of forcibly removing peaceful protesters in order to take a photo at a nearby church. >> we have to be vigilant about what is being done by the can

current resident when peaceful protesters are removed for a president using tear gas and flash grenades in order to engage a photo op at one of the most historic churches in the country. we can be forgiven for believing the priz is more interested in power than principal and more interested in serving the passions of his base than the needs of the people in his care. >> the u.s. economy is starting to gradually reopen. we have this report. >> data being checked by cnbc does show a recovery in the economy but that could be challenged looking at apple mobility data searches for driving and walking are on the increase.

not so much for transit. these are all benchmarked and could be some seasonal up swing happening and also some return to normal in this data what we are not seeing is a return to normal in rush hour traffic. we averaged 20 cities and the difference normal has gone up. we are not seeing returns to work or school in this data just yet. we might be picking up some signs of demonstrations out there. searches for walking directions in minneapolis actually spiked over the weekend it was on the way up if you look at the graphic, you could see a pretty marked spike. also likewise, reservations at open table were improving quite a bit. just 81% down from normal. the last couple days, it started

ticking back up or becoming more negative two major concerns with these riot demonstrations when it comes to the economy obviously concern for loss of life and strir but also that it could delay recovery and potentially lead to additional spreading of the virus. our nbc colleague joins us with more from the u.s chris, run us through what is actually happening on the ground the latest with these demonstrations >> another night of demonstrations last night more than a week after george floyd was killed protests you will across the country. if you are looking for good news, it looks like things were more peaceful across the country.

protests that took place in washington, d.c. yesterday was larger than the one the day before many people who came out said that they were inspired to do so because of what happened outside the white house monday night you will remember as president trump was giving a statement to reporters, that's when federal police and the national guard moved into the crowd which had been mostly peaceful all day using smoke and flash bang, rubber bullets and pepper balls to move the crowd back shortly after that, the president walked over to a church that had been damaged by a fire the night before going over there with members of his family, staff members and held a bible in what was makedly a photo op he's getting some criticism from

his own party now for it >> a sense situation to say the least. nasa astronaut range the opening bell yesterday from the international space station alongside his newly arrived come pat rats he shared the importance of sharing work together back on earth. >> there are no boundaries from space. you see it is a single planet with a shared atmosphere it is our shared place in this universe that perspective as we go through things in the paind ndec and recognize we automatll facem together >> pretty exciting to hear from

those guys at the space station. not as exciting but important, the german foreign minister confirmed they will lift the travel ban for european states plus britain, norway. guidelines will say we do not advise to britain wild the 14-day quarantine is in place. this is timely the uk government has received a huge amount of criticism, other leaders about this 14-day quarantine that is planned to come into effect later on this week travel warnings may have to be introduced if infections rise. we will not be doing another

repr repate reation for germans abroad this summer fresh lines coming out of germany with regards to their travel guidance for the summer this comes on the day italy has lifted its travel restriction. tourism sector getting going here in europe on wall street, let's get a check on u.s. futures with a positive start to the day. the dow at the jump. we did see the u.s. stocks advance. performing into value away from growth that's it for today. i'm julianna tatelbaum thank you for watching "worldwide exchange" is up next.

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.

it is 5:00 at cnbc despite curfews, protesters again taking to the streets from new york to l.a. wall street continues to look ahead. trying to cap a third day of gains up 30% from the march low. >> the jobs report out one indicator says the worst may be over. zooming ahead. stay-at-home stock hovering near all-time highs will car