>> good afternoon and welcome to street signs these are your headlines sentiment sours in europe. equities pull back from three month highs despite gains in asia as questions are raised about misclassifications in the jobs report and chinese trade activity contracts in may. oil stocks rally on an output deal from opec and it's allies but wti and crude pair gains as the one month extension falls

short of some forecasts while saudi and russia call for compliance. >> effective compliance is vital if we are to secure the hard won stability and restore confidence in the effectiveness of the entire group. >> travel turbulence france reportedly prepares to unveil a 10 billion euro rescue package while three british airlines launch a legal challenge against the governments quarantine measures and astrazeneca will not comment on speculation after reports sugge suggest considering a mass i have tie up in u.s. rifle

gilead >> a very warm welcome to street signs everybody. happy monday we're about an hour into the session and a little bit of retreat mode trading down by .7% and let's put this into context. we're coming off of a very strong week last week. we saw gains across the board here in europe but not to the same extent up about 6.7% it's fair to say the main event last week in terms of data was the remarkable jobs report that came through they're pointing to misclassification of workers in the united states. some signs building that we are

seeing stabilization as the economy reopens and firms rehire employees to brace for a resurgence in activity let's see what the split looks like up about 10 basis points the dax is leading the way lower. that index down about 0.9% we did get german industrial data through it fell 18% in data. we'll go into detail on that in a moment now in terms of the data there the german industrial output fell by 7.9% in april. that's the biggest decline ever and larger decrease than expected production levels will continue to fall over the next three months but jeremy's economy ministry claims the low point will be reached adding it's

begun to recover from the pandemic the worst of the pandemic is behind us. that's the bull call from market investors. experts have fallen back into territory while imports hit the lowest level in four years it raises concerns around how quickly it will recover in the wake of the widespread downturn. let's take a look at markets we have been paying attention in recent weeks on the back of the surge. at about 113 here in the u.k. we have sterling trading firmly let's bring in rate strategy at city

this has been a pretty remarkable rally and european commission recovery package that was proposed what is your take on the rally we have seen and where we go from here. >> good afternoon. we do agree that there will be an emergency package and it's very interesting initial plan but that was one important one here some of them are making their way at a faster pace

>> economic sentiment in europe got absolutely hammered, a lot more than it's u.s. equivalent so in this moment a moment of easing of lockdowns, some parts of the economy coming back, it doesn't surprise us to see some degree of upside we actually believe there's more to go. >> all right so that's not the end of the run. 113 versus the dollar. so looking at a lot of emerging market currencies. what does this upside in the euro mean for emerging market

asse assets and a very important relief to high yielding currencies and the second is the fact that that makes the trade even more interesting where you could argue that central banks still have some space so there's a very interesting link between international flows, and currency fiofficiation in this economy so this is amazing news in my region. >> luis my friend, back in ancient history, let's call it 2019 you and i and others used to argue about current account deficits and debt loads. when are we going to start worrying about current account deficits and debt loads again or is that not worth even thinking about at the moment.

and i do believe that this is probably going to become a little bit more of an important variable and we know that it comes to countries that have been reaction by agencies the world bank and for example, they believe that they are absolutely fine for now. they don't need to come to the mashl

markets to new bounds which is a little bit of an illusion. so we might have this as we go in the beginning of 2021 the former which is the current account situation, the interesting thing now is the gap down in domestic demand and it's a huge hit in import growth. it's a template on behalf of it. so this is getting a little bit of relief to the currencies but it might come back to bite once underlying growth picks up once again. >> and what about the oil price? more supportive oil dynamics has reduced the pressure in important sectors of the em

dollar denominated debt high yield space as well. but not all commodity producers so there's some countries such as india which will be suffering more from the same supportive environment. but as much as we have to agree that we have seen that in the down side very aggressive. but it's not a situation yet for example, you can take the cpi as a good gauge of that. so in terms of contribution so

that will become a problem. >> and once again no matter what happens in the world, inflation expectations maintain and inflation pressures. >> i find it very difficult to believe absolutely fascinating from the strategy point of view. it's all across the board. in consumer demand and even though we might have some it's a rebound. especially when it comes to

europe so central banks around the world will be very comfortable for quite sometime. >> and just lastly, we'd love to get your view on the dollar index more broadly it dropped 1.4% last week. that was the third negative week in a row what is going to be the main driver >> the main driver for the dollar has been two-fold first, some in economies there in terms of sentiment and for that i do believe that europe was a leading indicator in establishing a new move in the broad dollar it's better mobilization of liquidity. the last time we spoke with you guys, some important gaps of he

quiddity in several markets and it had to do with bonds and it had to do with national equity markets. and it was extremely aggressive in terms of many markets and i think that's something that we could be getting a little bit more down side to the dollar the caveat to my story is obviously the dynamics between the u.s. and china that's a very important caveat. >> all right we'll leave it there thank you for joining us great strategy. >> they have agreed to extend deep production cuts until the

end of july as the world's biggest producers look to bolster oil prices during the coronavirus pandemic the group's key players also called for stronger compliance with the deal. saudi energy minister said the deal with help the cartel and it's allies tackle crude price volatility. >> that day has given us a new determination to ensure that we stabilize the global market. since then despite many uncertainty there's encouraging signs that we are over the worst. >> steve last week when we were discussing opec plus and what they may do, compliance was one of the key themes that we discussed. how is it opec's compliance or their plan to monitor compliance likely to change in the coming

months >> originally there were lots of complaints and of course again not only originally also alexander novac as the two top players in there there were concerns and are set the broader opec plus. there's still those concerns out there but that is the body that does the monitoring of the broader agreement and making sure that 9.7 and now 9.6 million barrels are taken off the table as well. that's key we know historically, i can go back 20, 30, 40 years of looking at this situation where compliance has always been a concern. opec cheating as it used to be call z was right for many players as well. but they do measure success.

but there's other factors involved as well and that is including the fact that morgan stanley points out $41 barrel. $43 barrel currently trading and a lot of that capacity looks more profitable. a lot of that capacity that was unprofitable at 38-35-25 and beyond to the down side what happens. we have seen a course over the last 24 hours. and chinese demand as well that is a big question as well demand is still incredibly fragile as well. so there's a lot of x factors out there but as we were hearing from joining our conversation, concerns about the financing project going forward. and maybe that could act as a

positive for the market going forward. so it's not a slam dunk but we have reached the year end levels that many people are looking at and now we're going to go from here as well because and i'm just thinking one more factor as we have been saying over the last 272 hours 72 hours or so tv we'll supply deficit in july and august now that still leaves a huge amount that is significantly about the five year average. that will be the key it's 60, 65. of course the danger is that we see an economic trend that's so severe that we go right back down again it's going to remain volatile isn't it >> it is the question of whether we see a

global investment is important given the energy transition. >> let's push on to japan. 2.2% it's smallercontraction than the initial estimate the data confirms the country is in recession for the first time in over four years and bases it's worst post war slump. they approved $92 million to bolster the quote war against the virus. >> they're launching a legal challenge against the government we'll bring you that live after a break. (music)

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welcome back to street signs. let's dive in. prosecutors have opened proceedings against the management board after they searched the company's headquaters last friday. they said in a statement that it is cooperating with authorities while also reiterating an outlook for 2020 shares have taken a hit on the back of the news they're trading by 3% lower. it does not comment on rumor or speculation after a report suggested the british drug maker approached the u.s. firm about a potential tie up shares are trading down to 2.7% worth noting the overall message from the analyst and investor

community is a lot of skepticism around this. let's shift gears. france could unveil a 10 billion euro plan to help as early as tomorrow we have a look here at the aerospace sector in france now trading in positive territory after initially opening on the back foot airbus is trading lower down just over 1% break it down for us what is included in this potential 10 billion euro package for the sector >> 10 billion euros package as reported yesterday the key part of this is 1

billion euros. and here it was about 250 million euros. and also 250 million euros and the rest of the money could come from private investors and we know that this morning the french finance minister had a conversation to discuss and iron out the latest details and it's expected to be announced tomorrow by the french president. and a tourism package but we know that aerospace is a crucial one. the largest export sector.

200,000 jobs in france and it's as much as the orders on friday. they received zero orders in may. they received no cancellations, there's discussions with airlines to try to delay orders and it's interesting to see, it's too political they're looking at potentially against some companies they don't need the bailout. they have enough cash reserves to weather the crisis and they're concerned about the suppliers in this system so we wait and see in this package tomorrow but it's down

1.2%. >> british airways, ryan air and easy jet have threatened to launch a legal challenge to new quarantine rules that come into effect today you saw just before the break the nice shot of the planes, what stands out to me around the kwaurn t quarantine is the size of the fine you're looking at a thousand pound fine if you fail to self-isolate >> absolutely. you make a very valid point. there's also a 100 pound fine if you don't fill the form at the

airport. there's also really dracon irgs an measures so real questions about why they're doing it now what kind of effect it's going to have on the initial broader covid-19 issue and what it's going to do to the tourism industry as well as you would expect, as you have been hearing, michael o'leary, one of the signatories of the letter, he has been on the air waves this morning let's listen to the ceo. >> i'm very upset as are most of the u.k. airline industry and the u.k. tourism industry. the government this morning introducing a completely ineffective useless quarantine

and what it's going to do is devastate thousands of jobs. it's now been destroyed by an irrational and ineffective quarantine. >> so michael leerily that has a huge number -- why don't i get mike to show you my hometown, there are stacks of nose to tail ryan airplanes stacked up on the far end. and we have the terminal here. it's the temple or palace and as you can see in front as well barely what? 20, 30 cars there. this is an airport absolutely

packed the whole community, up northeast of london. today how many do you think have been leaving this airport? we have been here since 5:00 a.m the first plane left at 6:15 i count four planes. four planes have left this airport in the last what is that four hours or so so as you can see whether they're allowed to remains to be seen it does see that the government is looking for a way to create air corridors. i can hear a plane behind me it's taking off. it's a private jet probably someone very senior at cnbc they are looking at ways of having some of these air

corridors so that the tourism industry can be saved this summer your private jet has left without you. >> i have to get down there. who took it? i never thought i'd look at images and have such fond memories definitely miss it throughout the lock down. >> it's not a regional airport it's essex. >> sorry. >> it's about 35 minutes from liverpool street >> it is convenient. maybe i'm being too harsh. we'll leave it there. >> have you taken ryan air from here. >> i have. >> it's a very interesting experience >> we'll leave it at that word thank you so much. we'll be back out with you again shortly. for now a quick break. coming up on street signs with the markets laser focused on jobs, we'll speak to the ceo of the recruitment giant randstad

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welcome to street signs, sentiment sours in europe and equities pull back despite asia as questions are raised about and contracts in may an output deal and wti and crude and pair gains and saudi and russia call for compliance >> restored confidence in the unity and the unity and effectiveness of the entire group. >> travel turbulence france prepares to unveil a 10 billion euro rescue package for

the aerospace industry while three british airlines launch a legal challenge against the quarantine measures. and tens of thousands take to the streets of washington d.c. where the largest black lives matter protest to date and reports that president trump wanted to deploy 10,000 troops to control civil unrest at the capit capitol. italian markets rallying 0.5%. all of this on the back of a very strong week last week we saw gains of more than 10% for the german, french and italian markets. u.k. markets gained about 7% last week and it was stamped by that u.s. jobs report that came through on friday.

remarkable reports much better than the market had been expecting and today we are digesting the misclassifications of workers and unemployment rate not as strong as the headlines suggest but still a lot of signs around stabilization in the u.s. labor market we did see gains across the board in the overnight session following that jobs report on friday came in at a $62.9 billion that was for the month of may. up 1.4% in japan u.s. futures where we are. starting off the week. dow jones and s&p 500 looking at the open and a very, very strong rally for u.s. stocks on friday. remarkable payrolls report all major indices above their

200 day moving average it took markets around the world by surprise. the may unemployment rate unexpectedly declined to 14.7% in april and they're starting to bring back their workers this stunned economists that saw the figures soaring to nearly 20%. however the labor bureau said the rate would have been 3% higher if it wasn'tfor the furloughed employees mistakenly being classified by employees but absent president trump hailed the jobs report claiming that it was a great day for george floyd whose fatal arrest sparked protests across the country joblessness among black and asian workers continue to climb in may despite the improvement

overall in the unemployment rate this is outstanding what happened today they thought the number would be a loss of 9 million jobs and a gain of almost 3 million jobs. it's incredible in a couple of ways number one the numbers are great and this leads us on to a long period of growth we'll go back to having a greatest economy anywhere in the world. nothing close. now set up an alliance of hr service companies as economies gradually emerge from lock down and workers return to the office and the largest rivals has already spread to nearly 30 countries. the ceo of randstad joins us now. thank you, sir for being with us as the number one recruitment agency in the world it would be great to just start off and get your view on what kind of trends you're seeing in staffing at the

moment. >> yeah. of course. we're in the midst so i hope that you forgive me. what we have seen is you mentioned it yourself. of course we see people returning to work. europe, asia first, then europe, yeah it remains to be seen how structural that is but yeah. seems like we're getting back to work and as you said, we want that sob safe. we have created safe protocols in all sectors close to 30 countries to help people get back to work and stay healthy while at work. >> when we think about the medium term outlook one of the big questions is how many of these jobs will be permanently lost and how many of them will

come back when economies reopen. part of the equation then becomes up skilling and reskilling workers that are part of industries that may not ever come back the way they were. how does this work where does it lie in terms of preparing workers for the jobs of the future? >> that's a great question we created the alliance of safety back to work to very much create coalitions of governments and employees, trade unions and our sector our sector is the biggest employer in the world for 58 million jobs so we know where it's going to be so we really need to join forces so we see some industries. we have talked about travel and airlines the future is unsafe it's uncertain but we do see demand in health care, in

logistics. do we need to reskill ou whether or not is going to be doing the reskilling they should be confident doing the reskilling not burdening their employees with hundreds of thousands of dollars or euros worth of fees that they have to pay off over their entire career. it should be companies doing the reskilling, shouldn't it >> it should be joint effort if you look at how we reskill, we don't reskill ourselves we constantly create platforms

where the company chips in, where sometimes atraining company chips in we chip in and so it's a mixed bag. also depending on the education. so you get education that lasts a few weeks. you get educations that last a few years so i think that's general. also educational institutions need to be way closer to the private sector as much to make this happen. i do think we need to change the system because it's going to be a massive effort going forward. my great concern is that a lot will turn into redundancies in the short-term if we don't see the economic growth pick up again. in your experience do you think

that you share similar fears or actually do you think that we're not going to see mass redundancy no i don't do fear myself. i think that they're great we didn't have them in 209 but they give us time. they get individual stocks to look at the situation and give companies and the likes of us and governments time to look at the labor markets and again back to what i mentioned earlier, so aggressively reach out to people and join forces publicly and privately to reskill people and bring them to the sectors that will have demand and then it's a matter of the economic return. how long will it take? john but we need to make people ready to get back to work and reskill when necessary. >> i don't see how white collar workers especially can go back to their offices and blue collar

of course the same situation given social distancing at the moment we're hearing in the u.k. that the government is looking at one meter social distancing rather than two meters. do you think this puts at risk a second wave and as such companies should hold off and stick to the two meter rule? >> well, white collar work of course is working brilliantly from home. so i think in general we need to rebalance working from home and working from the office. it remains to be seen. what we also do as an industry in this alliance is bring all sorts of experience in the industry for people that need to work closely it's important i also talked about maybe testing people if they are resis tent to the fires so they can work together because they're both resistant but i think there's a lot

possible as long as you implemented and update the safety protocols >> when it comes to government support for the jobs market, one of the big themes that we discussed is the difference between the u.s. approach and the european approach with the latter focussing much more on job retention with all of these short-term working schemes in place and the u.s. focussing on expanding unemployment benefits. when it comes to preparing them for the new normal is europe going to lag behind the u.s. because of the short-term schemes that are put in place and because of the approach they have taken to job retention over expanded unemployment benefits >> well, as always, systems, the good thing about the european system is people stay connected. they have their employer, they have the likes of us to take care of them and proactively approach them to get training to

actively discuss if they will go back to work but at the same time, there's also a full sense of certainty that you're still in a job and that might not be the case when everything opens up again. the american system makes it quite clear that there's high unemployment but in a way there's no inpracticfrastructurr people to get back to work and be reskilled so the u.s. needs to work together public and privately to have a new thing which is a reskilling alliance hence our 30,000 but as of course in no way good enough but it is a start. so both need to adjust away they work to get as many people reskilled and back to work soon. >> thank you for joining us this morning sharing your insights. ceo of randstad. i want to give you an update from the national hurricane

center it's located 40 miles north of baton rouge. so the key here of cristobal has weakened to a tropical depression as it moves farther inland just another risk to look out for in the united states on top of everything else that we are dealing with so we'll keep you posted on the latest and that is it from the national hurricane center we're going to take a quick break but coming up hundreds of thousands of protestors take part in rallies across the united states as calls for greater police accountability grow more when we come back okay, give it a try. between wisdom and curiosity, there's a bridge. between ideas and inspiration, trauma and treatment.

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>> it's the difference between what you own and what you owe or the net value of your personal property captures the capacity to survive emergencies including the loss of a job and income

income cannot help support wealth losses but wealth losses certainly -- i'm sorry but wealth can support income losses it provides families with a greater opportunity to afford to get quality housing and to provide their young people with quality schooling and to participate more effectively in the political process. to lead the quest for future generations to ensure that they may have a more economically secure future and so wealth is far more important than income and a huge wealth disparity that we observe in the united states are an index of the degree of economic vulnerability that is imposed upon the black american population blacks in the united states constitute about 13% of the nation's population but only possess 2.6% of the nation's wealth and that translates into

an $800,000 gap per household on average between blacks and whites in the united states. >> and what do you think about the push for police reform in some cases the abollishment of police as a starting point or as a next step in trying to close this gap >> well, i'm not certain that police reform will close the gap. i'm absolutely convinced that the types of measures that would be required to reduce or eliminate a racial wealth gap that is on the order ultimately of 10 to $12 trillion would be an intervention that is redistributed. that would require a reparations program in the united states on the other hand, eliminating the racial wealth gap would not necessarily get rid of anti-black police violence there's a separate set of policies that would be required including getting rid of quality immunity for the police,

demilitarizing them. there's absolutely no reason for the police forces in the united states to possess military grade weaponry also creating a differentset o penalties for the police in the united states for criminal behavior one thing that could be done is to charge police pension funds for any kinds of penalties that are incurred as a consequence of lawsuits that are successfully brought against police who engage in criminal acts. so i'm not sure that there is a strong connection between wealth and police behavior as there is between lower wealth and health outcomes that are magnified by the current covid-19 crisis. >> i think the income measure that you highlight as well is equally appalling for black americans and black american families as well what can companies do?

what can our viewers do? what should the ultimate owner be doing to help address this huge, huge and historic disparity? >> i think that all organizations concerned about this enormous disparity which actually originates with the failure to provide the formally enslaved in the united states with the 40 acre land grants that they were promised at the end of the civil war, simultaneous or concident with the handout to white americans in the western part of the country under the terms of the homestead act. that's the foundation for this enormous racial wealth gap i this i that any organization, any individuals, any families that feel a sense of obligation about these gaps would feel that

these are inquestitolerable and comprehensive program for descendents of u.s. labor. >> william a.darity jr., distinguished professor of public policy at duke university steve thank you as well. we'll leave you with a look at u.s. futures we are just getting underway we're just about to get underway and futures have turned positive for all three major indices now. the dow jones looking to open 150 points higher. the s&p 500 and nasdaq poised for a stronger start after a negative start to trade earlier on that's it for today's show thank you for watching worldwide exchange is coming your way next hello everybody. it's me, gru.

but you already knew that. and i've got some tips to help you get through these challenging times. first, practice physical distancing. i'm sorry, i did not see you there.

i've been doing it my whole life. or there. plus, there are lots of things you can do at home. like, stay active with some sick dance moves. be daring. and whip up a new dish. i love the combination of gummy bears and meat. you can do video calls for all of your important meetings. what? sorry. or just have some fun. ok, not that much fun. now, this does not come naturally to me. but, try to be kind to each other. this is a tough time for everyone. so that's it. stay home. stay healthy. and remember, we're all in this together. what? but totally separate. you know what i mean. yaaaaay!

it is 5:00 a.m. and here is your top five at five. investors watching to see if stocks can keep the rally going aztecs surging to an all time high futures are spiking. and it meets this week and shockingly smooth meeting. how saudi arabia and it's oil producing allies are trying to keep a floor under the price of crude. back in business in the big apple. northbound new york city, the american epicenter of the coronavirus lifting it's two month old lock down order today as it kicks of