that's all for this edition of "dateline". i'm craig melvin, thank you for watching. [music playing] . good morning welcome to "street signs." i'm julianna tatelbaum these are your headlines europe joins the big bounce back after the nikkei closes higher construction and material stocks lead the way higher following a report president trump is preparing a $1 trillion plan to boost u.s. infrastructure >> as i said to the three

presidents, you need to put a tiger in the tank. it is very clear what the uk needs. uk prime minister says a brexit deal by the end of the month is possible despite key sticking points. jeff bezos goes to washington founder and ceo is willing to testify after long resisting a long-ranging inquiry of antitrusting >> nbc confirms north korea has blown up an office hours after they threatened to take action. a warm welcome this morning. a lot to get to.

let's kick off with the energy markets. we have a fresh report out of the iea. the iea has raised the 2020 forecast by nearly 500,000 barrels a day due to demand from china and india as well as the lockdown global oil supply outlook fell in may opec plus countries reduced out look by 9.4 million barrels a day. interesting to see that they do now see a stronger oil demand forecast than they now had seen previously they note that oacd industry stocks rose to 3.1 billion above five-year average. in terms of oil demand, that is coming from better than expected

demand from coronavirus lockdown in particular from china and india. in crude prices they note in three months as they demand cover and global supply fell sharply. the key take away here is their forecast for 2020 oil demand has been raised by nearly 500,000 barrels a day to 927 million i'll be speaking to the iea director later this hour with steve at 10:40 cet let's get a check on broader markets. we are just over an hour into the fresh trading session. we have green across the board you can see nearly ever stock is trading higher a few exceptions overall investors are putting back to work in the equity

markets right on the back of the bounce back where we saw a reversal in sentiment in trading after the federal reserve will begin buying individual corporate bonds. this marks a change of what they had seen previously from etfs. overnight, we found more supportive news. the trump administration is readying a $1 trillion package post pandemic economy. the bulk of the funds are set to go towards new roads and bridges. some of the money is earmarked for building up 5 g networks that is more than double proposed by the democrats and could come into force when the current funding law runs out in the end of september here is a look at construction and materials names in europe. we are looking at higher demand.

let's look at the different regions. the ftse mib up over 2%. the dax in german market up 2.2% ftse 1002.3% higher. more trading in the hour hanging on to the bulk of the gains gathered this morning. we are trading on the back of a very strong session in asia. the nikkei trading up 2.5% very strong gains. the shanghai composite up. these gains come despite an up tick in coronavirus cases in beijing. a lot of concern of what is happening on the ground in terms of the health crisis looking at the various stimulus

packages in the world. at the moment, those are working out. >> green across the board where the dow is up 30 points higher stronger start for the u.s. as well the federal reserve has announced it will start buying individual corporate bonds deepening its reach to help prop up the u.s. economy on the credit facility which began buying etfs last month it must meet the criteria and maximum security of five years or less. the dallas fed president said u.s. corporates and the government are right to work the fall out and he has said they will closely monitor those debt levels as the u.s. economy comes

out. >> before the crisis, if you had heard me speak, i had flagged a concern for the record number of corporate debt and i was worried that the federal level of debt to gdp may not be sustainable. it goes without saying as a result of this crisis, if i was concerned then, we've just ratcheted all that up in order to deal with this crisis we had to do it. there is no question government debt to gdp is now higher. >> the fed launched the special main street lending which will offer up to $600 billion in loans to larger companies. the scheme will target firms that will be too big to qualify

for the paycheck protection program and marks its break in its traditional role our colleagues state side will bring you coverage of jerome powell's testimony later today >> bringing in janet to weigh in on what we are seeing. janet, thank you for being with us what is your take of the federal reserve beginning to outright buy corporate bonds and the $1 trillion infrastructure proposal from the u.s.? >> it is really a reminder for investors that there is still a huge amount of stimulus from the central bank to support recovery on the bearish sentiment from

last week is gaining traction. that is really unprecedented on the etf and now buying individual corporate bonds so they have effectively backstopped the bond market. investors have less to worry about from bankruptcy in these companies and these worry about a lot of banks this is helpful and the main street lending program is providing credit to large corporates this is giving credit to all walks of life in the economy this is a really huge backstop there and the potential $1 trillion stimulus program. this is a reminder that there could still be come on the stimulus side that could be the focus. this could be helpful for growth going forward.

recovery is not going to be easy there is huge support out there for the government and the central bank and that has encouraged investors >> clearly as we are seeing very strong gain as cross the globe when we look at equity markets we look at coronavirus numbers and we are seeing a rise of cases in the u.s how do you reconcile the ongoing health concerns and can this stimulus help with the ongoing health concerns? >> it is still there, social distancing is still there, we are still having cases globally. compared to the start of the pandemic, we are seeing more clarity. we have more progress on the development of the vaccine there is a global race to

develop a vaccine by top notch companies. it is optimistic we'll get a vaccine at some point. people are having more awareness of the environment and wearing mask on public transport i think very new cases in beijing and the beijing government have promptly locked down a number of communities it is not a huge lockdown but it is really targeted on the virus spread they definitely have more experience and i think with the progressive potentially more management experience. i think there is more optimism on eventually beating the virus. >> i want to ask you about one of your in investment calls

cutting exposure to investment property clearly less use of office space with remote working. foreign investors will sell some of those rates there is a clear making around covid-19 they've got exposure to the likes of communication infrastructure which goes in to the 5g spending that trump is now talking about. the remaking of rates is a trend some people need to think about in the selling of exposure of property they need to pick up elsewhere, don't they? >> you are absolutely right. in general, commercial property is getting less attractive you are right that we have to distinguish between the company and the likes of the data center and storage for retailers.

on the traditional commercial property on the high street and office space those are areas we are particularly negative. we don't see a short-term hit but a long-term structural hit we are looking for online shopping that will negatively impact these sectors we are cutting out exposure to those and adding a bit more equities by those markets in asia really because for u.s. for us is a growth sector that we think we continue to do well in the low interest rate environment. in the year we think that the commodity producers are going to benefit from global recovery and demand and the commodity

exporters currency are currently lagging. >> i want to ask you about the em story a little more there is a view and leakage that benefits emerging markets. is that what you see this time and when we get more measures that you may continue to see the investors reach for morris being and that trickles into em? >> yes i think that is definitely going to happen. the fed has demonstrated again and again that it is holding a dollar send. last year, they said they are going to hold rates near zero percent. we think rates are unlikely to rise on the back of that, if we think a global recovery is going to weaken, that should benefit

to merging markets janet, thank you for joining us this morning i want to bring you a story that's just broken out of north korea. they've blown up and destroyed an inter-koreanly a son office on the border after pyeongchang had threatened to take action if they threatened to send propagan propaganda leaflets. we watch closely anything coming out of this region let's join chery kang on the phone. tell us how significant this is for markets?

>> caller: at this point, north korea is taking an issue with those leaflets the anti-kim jung sentiment. it's never about those leaflets. it is about the sanction relief north korea wanted to get that south korea promised to get from the united states and has failed to do so so the latest line from kcna which is the north korean state-run news agency. they are confirming the disruption of the inter-korean liaison office and after unification message saying north korea blue up the office this afternoon. we are talking about the inter-korean office and this is the city where the join

industrial complex is located. this just comes after north korea cut off all the communication lines with the south. this comes on the news of the border area. kca did sort of flag this according to the comments or warning saying it is ready for action north korea trying to escalate sanctions with south korea and taking action following up with an action. that's really the part where the market is reacting to. sure, it's an angry response over leaflets but it is really about the failed diplomacy this is something of a consensus

among north korean watchers. giving a push while north korea is waiting for the november presidential election in the united states. >> thank you for your reporting. steve? thank you, coming up on this show, long cues mark the return on high street in england after a three-month lockdown more on this after the break on "street signs. (vo) at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. today, that philosophy extends to how we connect with you. we call it, audi at your door. whether a remote test drive, shopping, trade-in, or even service pickup, audi at your door can do this and more at participating dealers. the premium audi dealership experience, on your terms. audi at your door.

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welcome back many high street retailers in england reopened their doors after three months of lockdown as investors start to recover from sharp decline of foot fall traffic. pretty stunning visuals in terms of the queues. in my neighborhood, people were very eager to get out to the shops. the question is how long will these last and when the furl owe

schemes start to wind down >> it is not for me to judge the population but spending five hours in queue where you could get most of it on line anyway is slightly strange but it is not for me to judge. we saw the mcdonalds dri drive-thrus, it was extraordinary. also ikea. and outside the market where there was an extreme reaction there at prime mart. jd sports and no social distancing outside the nike store where people were excited about getting the latest nike airs it is still in crisis condition.

before yesterday, nonessential stores have been losing $1.8 billion pounds. every week, that is. extraordinary amounts of money being seen foot fall according to the likes of spring board. talking 37% increase in terms of shopping centers and by midday in all destinations. all of that taking place as well showing you what is going on in covenant garden as well. stop the spread, keep the distance, protect yourselves use the social distancing markers on the floors. one way system i didn't know it was one way here you look down and see the measures taking place. does that mean you'll be

profitable you will have diminished numbers. you'll have the cost of the plexiglass, the sanitizer and it remains to be scene how that will survive going forward as well i'm hearing covenant garden. it's amazing one thing it needs that needs the foot fall it needs tourists where a lot of them congress gate and come to see the stores talking about the story from yesterday from gatwick, until you have no 14-day quarantine, how are you going to get the tourists coming in how are they interlinked are we just waiting to the end to see how many people will lose their jobs in britain as well. all of these things we are covering with the retail story,

travel and tourism and throw in there brexit as well >> thank you for showing us the different stories. let's talk brexit. uk and eu leaders have vowed to accelerate talks to secure a post-brexit trade deal he hopes to reach an agreement by the end of july >> as i said to the three presidents put a tiger in the tank. it is very clear what the uk needs and what our friends need to understand but we can't have the involvement of the european court of justice we can't have a system where we it in to obey the law even after we are out of the eu we have to get a great deal of our fish we are taking about control of fisheries around the country getting advantage in scotland

and all over the country get an advantage from our fantastic marine wealth coming back to this country it is very clear what we need to achieve. i don't think we are actually that far apart we will see a bit of umph in the information. >> the professor of political science. thank you for joining us both boris johnson and leaders have agreed to inject, quote, new momentum into the stalled talks. what does that look like and how are we going to see an agreement coming together in the coming weeks. it is better than nothing but we know there is a huge, huge amount of work to be done between 27 and uk because there is a lot of controversial topics in the agenda.

as the british delegation doesn't want any extension of the negotiation period no choice and the test will be the end of summer. if we haven't achieved most of the topics at the end of summer, then it would be extremely difficult to have an agreement at the first of january the end of 2021. one of the key sticking points again came up yesterday. the eu insists on a level playing field. how do you see this part playing out? >> this is a difficult topic for the uk they don't want to accept it for two reasons. first they want to play on the norms and standards to have more competition outside the eu and

second it is symbolic and it comes as an attempt to the british sovereignty but if you come to the world trade floors, 46% of the uk are confident. of course it is absolutely crucial to have a form of social norms in the uk. on this topic, 27 are completely unified. if the british delegation want to compromise on the year, it would have to make some concession on the level playing

field. >> very interesting you use the phrase completely unified on this issue as you point out, there are a whole host of other issues the 27 aren't unified on we could talk immigration, expansion, finance, a whole host going on isn't it just worth eu solving something or moving forward on brexit because they can move forward and offer some sort of olive branch and solve this pretty easily compared to other problems which will take years to solve >> the issue at stake there is the internal market. this is the core everybody in the eu has an interest to keep the integrity of the market. you are absolutely right the eu is not unified on every

subject. we have a lot of differences on migration, the future of the eurozone, et cetera. on the future of the internal market, there is a huge unity. again, everybody has strong interest in keeping the internal market some form symbolic reasons it comes to the french and the origin of the european integration process. some for interest. economic interest. if you take companies like poland, hungry or eve czech republic they are sympathetic to british government on money aspects but in the internal market they will not change the view but change

the integrity of the market because too many economic interests of them are at stake >> professor, thank you for joining us coming up on "street signs," the world health organization warns of a rise of coronavirus clusters among a spike of hospitalization cases and a rice of cases in beijing. we'll discuss this next. a try. a try. between wisdom and curiosity, 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.

welcome back to "street signs. i'm julianna tatelbaum these are your headlines europe joins the big bounce back stocks rally in trade after the nikkei closes 5% higher on the back of late gains on wall street construction and material stocks lead the way following a report president trump is preparing a $1 trillion plan to boost u.s. infrastructure the international energy agency

warns crude won't recover until 2022 as airlines weigh in on the industry we'll speak more coming up nbc confirms north korea has blown up an inter-korean liaison border office after a threat to send leaflets into the country >> let's get a check where we stand in terms of markets. we have the dax leading the way higher up 2.3% the ftse 100 trading and we saw strong gains come together after the federal reserve announced they will begin buying individual corporate bonds

overnight that report to potential of $1 trillion coming from the u.s. government all of that supportive of the markets. we are seeing strong demands for the most cyclical parts of the market we have construction and materials on the way higher. also travel and leisure and along banks and basic resources. nearly 400 points of gains expected for the dow at the hope if these levels hold s&p and nasdaq also posed for stronger start data out of the u.s. with retail and industrial and housing market production. a lot today clearly the message has been support, stimulus support offsetting concerns around the health crisis on that note, worth health organization has called for a systematic and exhaustive

situation around new clusters. saying identifying specific risk factors is the only way to limit their spread around the world, cases continue to rise in south america now accounting for over 20%. in the u.s., texas has reported the highest number of daily hospitalizations since the virus began taking the number above the 2 million tally and numbers have topped 8 million. stepping up testing in the chinese capital. beijing has increased the threat level in over 20 district and banned high-risk people from leaving the city so a lot of focus on the coronavirus numbers themselves over the last 24 hours the markets seem to be shrugging

off those markets. looking at the sanofi production facility we are just outside, president macron is due to visit sanofi's production site where the french pharmaceutical giant is working on their covid-19 vaccine. a story we were covering about a month ago. it came under a lot of scrutiny after a ceo suggested the u.s. may get first access to a successful vaccine let's bring in charlotte who joins us with more it seems to have emerged as a story in a tea cup what more can you tell us about this story and what we can expect from president macron's visit today. >> this story created an up roar

on the french scene and mentioned it saying it is completely out of order. the french national champion would give priority to other country where in the world that the vaccine should be shared around the world to that vaccine plant of sanofi is interesting in that context that said maybe this was a crisis with the warning shot it had been warning europe many times that they need to put in place a system to help finance in times of crisis like they have in u.s. to help support companies for vaccine and manufacturing as well. they had warned europe several times there is no equivalent maybe with sanofi a few weeks ago where we had seen things put in place since then and we have seen the uk put in place the

vaccine for the crisis this was interesting we saw the astrazeneca deal with millions to the process of the potenti potential vaccine that is developed. there is a source there that said france is looking to do other similar deals with other companies in the coming few weeks. it has a partnership to develop this vaccine and have the largest manufacturing facility in the world to be able to reach the critical mass would be really crucial there we've seen in dperm agermany taa stake.

where this whole government across the world scrambling and trying to put in place the potential vaccine in the health situation. >> thank you so much as you saw there, entering the facility in france where he has just begun the tour of that facility the u.s. has eased restrictions on huawei to allow companies to work with the company to set standards huawei was placed on a black list in 2019 with the commerce department citing security concerns now to be part of discussions about 5g secretary-general ross welcomed the move saying the u.s. will not, quote, see leadership in global developing. apple developed half a

trillion in commerce across 2 million apps a new study revealed that sales of goods and services accounted for the lion share retail apps like target, amazon and etsy were the biggest. travel transactions accounted for $57 million and ride hailing amounted to $40 million. amazon ceo jeff bezos is willing to testify as early as this summer to congress about business practices after long resisting calls to testify on capitol hill. lawmakers have accused the tech giant of abusing information they get from sellers on their platform to benefit their own business president trump is expected to sign an executive order on police reform using a database

to track officers and using grants to meet certain standards as the president pushes ahead for a big rally in oklahoma this weekend despite concerns over the spread of coronavirus. still ahead on street signs, the iea warns of the biggest fall in recent history we'll speak more after the break. businesses are starting to bounce back.

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welcome back the trump administration is readying a $1 trillion stimulus package. the bulk of the funds are reportedly set to go to new roads and bridges. some money earmarked towards building up 5g networks. more than double that proposed by the democrats earlier this month and could come into force when the current funding law

runs out in september. speaking to advisor, larry kudlow, who said he expects the economy to continue opening. >> health people will tell you we have much better experience, far better equipment, ppe it is essential to follow the guidelines, face coverings, social distancing. i don't think with what we know there will be a second increase or wave. no shut down, no intention of even shutting down the economy >> speaking to cnbc, playing

down the sharp recovery. >> we have to not worry about the sharp w. that is what worries me on the economy. >> there we have a look at u.s. futures. we are in for a strong start to trade today with the dow looking at nearly a 500-point rally. the s&p 500 and nasdaq pointing towards a stronger start in the late rally yesterday all the sectors ended in positive territory led by financials' decline of jet fuel will prevent demands from returning until 2022 adding that this year will see its biggest fall ever. let's get out to steve who

follows the oil market more closely than most. interesting to see the iea has raised the 2020 demand for travel it seems that things have not been as bad in terms of demand especially from china. >> there are other concerns than that china story and how long that timed constrain can be remembered people were delighted that alexander novak and the russian delegation would agree to the increase of oil coming off the table which is quite historic in it self- excited about that one-month increase in the same breath, russians have been talking about potentially the supplied deficit as soon as july. there are concerns about discipline and constraints going

forward. the other thing they have been looking at themselves is the huge amount of industrial stocks way above $208 million barrels and the five-year average as well they are concerned about the huge amount of inventory built up, supply and the shaky system such as aviation are the big concerns the market so far taking the data pretty well brent has ticked back around $40 a barrel in the last seven days, it has been flirting with the 37 handle coming back into the market but as he points out himself, it is only half time in order to play for. >> you made the points around how so many of these stories are

linked and you pointed to the eco system at gatwick airport and how tourism is at the core of the industry. how closely are oil markets tied in to the broader reopening story here >> the problem is that they have to be careful with the underlying oil market and jet fuel market as well. they tend to health half way out as well. taking advantage of the extraordinary move and what they did withbrent and trading on the august contract now and got down to $25 a barrel back up 60% since then the problem is since they are so far forward, they don't need anymore product at the moment. it was very difficult to take

advantage and get the planes back in the sky. i was at gatwick yesterday really impressed they got themselves engineered up for easy jet to get things going. it was great i was there and it was great what they were doing i saw an 0700 flight that was one i saw an 8:00 flight to bell fast and 10:45 flight leaving to niece. three flights. they have the busiest runway on the planet and i saw three flights. the aviation industry has miles to go before it can get near the kind of demand back which excites the producers. >> another feature that stands out to me is the bp story and the massive announcement riding

down the value around $7.5 billion you have followed this so closely. do you expect to see more announcements like this as the pandemic forces another look at whether these companies should be accelerating the shift of what it should mean for fossil fuel and the assets right now? >> i thought it was fascinating. i cast my eye over the story as well what i was most surprised there is that people were surprised about it bp can't see expectations going forward. i think 55 barrel cut. why are people surprised about this we've listened to looney and what he said about this. we saw bp cut 15% of the work force. another 15,000 jobs.

they made that announcement and warned us the supply and demand balance is huge. they've warned us amid the transmission of other sources as well then we get the shock headlines cutting estimates. then i saw the second set of announcements that the bp dividend has to be on the block. we've been talking about that all year and especially two events one we saw late april. 28 to the 30th of april where we saw bp and shell with the numbers out. shell cut the dividend ever since then, people have been wondering if they were cutting the dividend bernard looney knows he needs the next thing to happen let's get a more expert view the executive director of the

iea joins us now always a pleasure to speak to you, sir i'm getting the idea numbers haven't fallen off quite as severe >> caller: good morning to london from paris. we are seeing a gradual growth of oil market driven by three things one, demand is getting stronger mainly driven by china second, opec plus agreements very good compliance about 90% compliance with the targets set and third the climb of production in united states, canada and other g 20 countries. these things tell us the gradual

recovery in markets continue in the particular market here >> in terms of what happens next i know you are a football man, what happens next in the second half of the year you've said it is half time in sporting terms >> yes the real scores and documented is not 45 minutes. whatever is in the second half will be depending on economy and the second weave of coronavirus. >> we are going to hold it there for now. thank you for joining us the end of "street signs," executive director of iea.

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it is 5:00 and here is the "top five @5." will the rally resume that su the dow end 800 points in the green. all about that stimulus. investors buying into the $1 trillion infrastructure plan from the waus. >> the south sees spike in hospitalizations mask up. a new threat from the likes of united, american and mor