welcome to street signs. these are your headlines europeans markets come off lows and u.s. futures recover some ground amid a record surge in worldwide virus cases. with outbreaks in the u.s. and germany fuelling second wave fears. shares plunge and it's missing 1.9 billion euros may not exist at all sources tell cnbc that they will

hold a shareholder meeting later this week. >> the british government considering a contribute the hardest hit part of the economy. this as boris johnson prepares to unveil the next phase of easing it may include the social distancing rule. good morning and welcome to the program. this is the latest as we have shares plunging. they were down more into the start of the session 1.9 billion euros missing from

its accounts may not have existed in the first place the company says that there is a likelihood that the cash that amounts to around a quarter of the group balance sheet was never there after the hunt for the missing amount hit a dead end in the philippines over the weekend. it is the preliminary year 2019 and first quarter 2020 results and forecasts due to the schedule the german finance minister said the supervising institutions have been hard on the card he stepped down on friday. reaching the philippines and the central bank there says that effectively they are denying that there was a rail that

stopped at the philippines guiliana is joining us as well this is one of the star players of the german stock market in 2018 and yet we still don't have any answers, but more questions as we begin this week. >> there's so many things to think about this story, karen. i mean, the german authorities were -- had already come under a lot of scrutiny. this could be an opportunity for germany to prepare it's reputation when it comes to i.t. and technology and be at the forefront of an industry leading the way forward and we have a failure when it comes to the german authorities and the way they regulated and didn't pursue the allegations in a way that should have been enough.

and the ceo was the longest running chief executive and largest shareholder in the company and of course had it at the end of last weekbut pretty extraordinary that he ran for so long at the helm of this company. >> and has done the running on this story, initially highlighting that it thought there were issues and what was accounted for when and they're saying in supplies they speculated this was all made up in terms of the allegations but the company is now saying that 1.9 billion missing may not have been there in the first place. >> no, for sure. and the criticism that i think

now is that we're too willing to buy into the story and weren't as scrupulous as they should have been when it came to investigating these in the financial times. this was a really complex and long running story with several stories emerging over the last few years so it has been a real roller coaster story when it comes to the stock we saw major share price reaction but ultimately shareholders have remained committed despite the lengthy allegations that have come through the financial times. >> players in europe to get involved in and so it's huge excitement that there was one in germany. so maybe that's too much and sources told cnbc that they

discuss the bailout. the ceo said that the company aims to avoid insolvency over a 9 billion euro bailout he hopes to resolve the matter ahead of a shareholder meeting this thursday. sunday marks the largest single day increase in global coronavirus cases according to the world health organization. more than 183 new cases were reported worldwide they saw the largest number of new infections at almost 55,000 followed by the united states and india. the total number of confirmed cases since the start of the outbreak is closing in on 9 million. the death toll nearing half a million. well, a quick look at how we are shaping up on the markets now and the start of all the european session was a so dprgg start. we have managed to minimize some of the red ink at the start of the session and we start to add

a little bit of buying and that's to reflect on the heat map behind me. it's only down modestly. just a quarter of 1% in terms of the individual markets, you can see how it is across the board we were tracking it down and now just coming off the ftse, the 6,200 handle the french market trades at 4,969. so quite a significant turn around for 1 and a quarter percent lower for the start of the session and a little bit of concern with fatigue in the european markets and this wave of infections from the united states that would be tracking even to germany which was a country that had a fairly good health crisis. so markets are cautious of the start but now improving as you

can see. and let's take a quick look at sectors across the board all in the start evenly split health care with one of the better ones in the green it was down fairly significantly at the start it's down 1.1% i want to ask you where we start. it seems as though there's a rate of infection. there's a little bit of enthusiasm out there and minimizing the losses at the start of the session. >> i think that's right. i think that we are going to be entering a period where we're going to get some consolidation

and movement in arkets i think that we're going to get a recovery and still that fear of missing out in a way that has that position. >> david, those bullish investors that are banking on a swift recovery, a lot of that optimism comes down to optimism around consumer spending

do you think that he is seeing something in the early data that perhaps markets are missing that would make him want to push ahead with a stimulus like this? >> what we saw in u.s. retail sales and in the u.k. was that there was some demand and that's being released as restrictions are being eased. and that is why you're thinking about it i think that the other aspect, though, for the consumer is just what is going to be your -- how secure is my job and of course in the u.k. now it's all there some of these are going to start to run off people will be quite nervous

about how secure their jobs are. >> there's nothing else to anticipate they're very quick to talk about supply chain and even if you look at the way people are behaving now i wonder if it's going to be generational the reminder of everything that's come beforehand but millennial, i don't know what is your view on how to break down the consumption habits now. >> i think that it's a really good question and uncertainty that you're posing there this is a recession, the biggest recession in modern history which is not like any other recession that we have experienced. and it's also meaning the recovery will be difficult to

assess and i think it will be how consumers behave and this comes down to around the virus as well. and i think that that's correct and i think that whenever we get this on the unit we could get an increased bonus which i think would then enter recovery and at the end of last week it said it wasn't going to reopen in some u.s. states and the rate continues and just finally ultimately it's older people and older households

they're probably more sensitive to any news. >> just a quick line, what are you doing on investments it feels like you have been to some of these rallies. is that the correct assumption >> well, taking some of the risk that the market has been rallying, you know, so strong here especially during the course of may. i still think that it makes sense to have a modestly prosort of risk bias i still like it. i still think that there's an investment grade credit in particular and i'm still wary of digging down too deep and the risk and it's still off the table and bmi.

>> thank you live shots now coming through from germany in the banking industry here and he lends some support to the corporate. also attending this is the deputy finance minister and so, a very key conversation taking place there. and you can see the live pictures and you should be watching

no doubt touch on the support that's been forthcoming too at some point taking a close look at what happens here in the u.k. i must say that i would give anything for a wine and a steak at this point. anything not home cooked by me >> as you well know, here at the market, absolutely, the british government considering a card to boost the hardest hit parts of the u.k. economy this is prime minister boris johnson. apparently preparing to unveil the next phase of easing that could include reducing the 2 meter social distancing rule which would be of course a big bonus to those restaurants we'll be back after a short break. (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,

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>> on the ftse 100 and dax and german property developer while it operates a performance and

will trade with the pharmaceutical giant the london stock exchange adds four new players including the security firm. the company is seeing increased demand during the pandemic the ceo said cyber threats are on the rise and more people continue to work from home >> unfortunately it's also grabbed the attention of the bad actors so we're seeing an increased number of attacks. especially during covid. targeting workers from home. all sorts especially social engine engineering which are very dangerous. >> the british government will vote today on legislation that will allow them to shield companies crucial from the coronavirus response from takers it comes ahead of the national

security and investment bill some are voicing particular concerns from china. the u.k. is open for investment but not for exploitation he looks to revise the economy amid the outbreak. according to reports, the tourism sector could see them spike as the u.k. continues it's lock down restrictions meanwhile, the decision on relaxing the social distancing rule is this week and that's key for a lot of businesses. some in a very small premises that think they cannot reopen their doors to two meter distancing >> no, they can't. the bigger institutions may have washroom facilities and exits and entry points but actually a large number of pubs and bars and restaurants and around here

they just can't do that as well. so we think this is where it's all come from. it's been intense lobbying and they only recommend a minimum of one meter rather than two. they say that you ten times increase the risk. so you have good arguments on both sides of the coin one economic argument is that a lot of institutions, house, restaurant, bars, hotels, they just will not survive and will not reopen with internal eating, dining, drinking, what have you if indeed we have the 2 meter rule i know two or three of them locally very well. they just won't reopen under the current rules. it's not worth their while for a whole host of reasons. the government is going to look

at it today and sign off on it today and announce big changes tomorrow from boris johnson in parliament we have heard from the health secretary over the weekend talking about this very issue. let's listen in. >> we'll be setting out the future approach to the rule and the changes that we're able to make we have a plan the plan is working. the number of new cases is coming down. and a number of those is coming down as well so the plan is working and that means that we can take further steps safely, carefully to reduce the lock down and we'll be sending out more this week. >> yeah, there was a plethora of activity from various sources, whether they were informed by the government or making a calculated guess by a whole host of issues. there's ones that we mentioned about social distancing and the reopening of theeconomy.

it's u.s. indy pependence day. it could be from the end of this month. and then about the concerns about the u.k. economy, an extension of the business tax relief window that has been on going for businesses and then a suspension against it helps many businesses and this whole thing in the united kingdom. it was youused at the height ofh financial crisis if people think there's going to be a cut to vat in the near

distant future does that stop it i could get my vat. >> i have to say, it's pretty strong in my neighborhood over the weekend. in particular they're reopening and the pubs reopen was clearly going to be more activity like that i wonder whether anyone is going to spend money on food what do you think? >> i think a bit of both i'll be honest with you. and that could be into the new

set as well. but there's talks that there will have to be registration and apple and monitor from a health and safety point of view were there to be a contact tracing issue as well. we may all have to register to go to our local pubs as well which would be very interesting from the health and safety point of view and because there's been such concern over the government policy, certainly the track and race would be the problems they had the last few days or so. so maybe if we want to go to a restaurant we'll all have that institution first. back to you. >> i agree with you. >> easing restrictions after the government has the national state of emergency for the first time in three months let's get out to charlotte what does it look like on the ground there in spain?

is it almost a new normal that has transpired across the country having visitors back it it's the end of the state of emergency and now is the time for recovery and recovery can come as quick as possible. it's 12% hispanic gdp. 84 million people visited the country last year. 1 in 8 jobs in spain, it's crucially important sector for the spanish economy so now the

boarders have just reopened. bear in mind that if you're traveling from the u.k., on your way back you still have to wait for two weeks. and still have to quarantine on your way back to the u.k >> thank you very much ahead on this show, we'll be speaking with the former wto director general as talks between the eu and u.s. on digital taxation break down. more on that after the break my name is christine payne, i'm an associate here at amazon. 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.

welcome to street signs. european markets off opening lows and u.s. futures recover some ground amid a record surge in virus cases fuelling second wave fears it's missing 1.9 million euros but germany's finance minister

defends supervision of the company. they made progress and the german carrier and billionaire investor ahead of a shareholder meeting later this week. president trump and a smaller than expected crowd. >> you're going to find more people you're going to find more cases. so i said to my people, slow the testing down please. >> president trump said he avoid punishing china in order to secure a trade deal. in response to questions over why he delayed calling for sanctions he recalled quote,

well we were in the middle of a major trade deal and tariffs on china that are far worse than any sanctions that you can think of they alleged trump encouraged president xi jingping to continue it. >> they're currently holding talks amid the outbreak and has described as much needed what are we watching what are we expected to hear >> good morning. so we shouldn't expect any major break throughs or decisions of today's eu china summit. so it will be ahead of the

jurors me european commission and they're already having the first video call from the chinese prime minister followed later on with a video call from xi jingping. the european union wants to first of all address the coronavirus pandemic they want to look at the economic recovery and to essentially tell the chinese authorities that they are looking at this based on environment and principles and that they would like china to do the same so china should look at the next phase of supporting the economic recovery and looking at it as if it were business as usual and should use the opportunity to have more environmentally friendly policy. both sides of negotiating an investment partnership since 2014 it was to conclude the talks later this year but that seems

really difficult at this stage due to lack of progress and so one of the aims of this summit is to give a new political impotence to these negotiations and finally the european union wants to mention human rights and the situation in hong kong european commission actually already made some comments a few weeks ago saying it could undermine the one country principle. one european official told me they expect a written statement later today so that tells us that we shouldn't expect massive concrete decisions today but there will be a press conference let's see what the eu leaders will say later this afternoon. >> thank you very much for bringing us the latest there meantime, it's a relationship between the u.s. and the

european union the u.s. walked away from talks last week infuriating the eu countries and forcing them lovely to have you back on board with us and clearly last week as we are looking at the detail around this we saw heightened tension between the u.s. and europe how seriously do think that we need to take this? indeed, although this is not an eu-u.s. problem it's a global problem.

a number are practicing what is called excessive big digital companies have been there for a long time and it needs to be addressed and has embarked on a negotiation in order to level taxation. and and this has been for a long time and it is in the case of the digital company luckily they're heavy already. taxation and some in europe like

u.k., like france, like spain, some in emerging countries, india, mexico, already have this kind so the question is not a bilateral eu you ask if it's a global issue that needs to be addressed globally. >> it's a long list of countries that the united states could go after and what happens in a situation like this? what is the role of the wto? well, as far as the wto is concerned, the rule is that countries are stubborn in the way they exercise their taxat n taxation you can do what you like

provided this does not discriminate unfairly foreign operators. that's the rule and it puts taxes on domestic companies so there's no discrimination >> how concerned are you about the tactics by the trump administration we had a dress rehearsal earlier this year. we have seen in the past two threats between the u.s. and

germany. should you be -- should we be concerned about the targeting of having specific industries >> mr. trump has a bias to address anything he sees as a problem. mr. trump believes tariffs is the way to take a look at international problems this is wrong in my view this is wrong in the view of the chinese and this is wrong in the view of many emerging countries. this is the way he sees things going. now if the u.s. imposed

sanctions on the country that does not reach wto, then this should moderate the tendency of the u.s. to use tariffs as a weapon it should moderate the cities if it works all right which is one of the reasons why this wto system and so far it hasn't worked because countries other than the u.s. decided they should together keep this system >> fir if i can change back a little bit and talk about the impact of all the different sub

sy da subsidizing around the world, everything from corporates to small businesses to households but they're doing it in a very uncoordinated way. i'm curious your thoughts about how this is poised to effect trade as economies get going again. >> i think that it's a big concern. it should be a big concern the budget is roughly to the tune of $10 trillion which is to have probably 100 time what is the market plan was. this public money that supports if necessary, there's no way you can either sustain the economic shock at such a big crisis or we

have an economy without huge money. so there's no way that you can avoid this but you're absolutely correct. this is in a way that is so far inevitably distort trade and international competition. this has to be done and has an unintended impact on international economic and trade and investment competition and there will have to be easing out and cooling down period in which my view has to be organized by the world trade organization with people sitting around the

table and the negative unintended consequences of this and might seriously harm investment. >> there's a view out there that if you get a change in the oval office that you must get a change in global engagement. it might be a slightly more friendly trade environment what do you make of that view? >> i think that it's true although -- although, there are structural reasons, for instance, the view of the u.s., consider china as a threat and this goes much wider so there is this big issue and a biden

president in the u.s. will not change that but the way to go could probably be very different and we in europe expect a democrat administration and to be more in favor of international corporation, to be more in favor of international institution, or putting out a negotiation. we have this hope that although we will find the structure, the u.s. could adopt a stance. >> it's always great to have you on the channel >> coming up on the show,

apple's biggest software event kicks off today and the tech giant faces criticism from developers we'll discuss when we return 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!

>> kelly o'donnell has more. >> today, a return to the solace of golf for president trump who is described as furious at the underwhelming rally turn out according to sources close to the white house after it's campaign reboot fell short here in tulsa the sunday rally aftermath and fence removal. attendance was estimated at 6,200 and the campaign boasted 1 million requested tickets. today's senior campaign officials playing clean up.

>> i'm telling you there were people and families that couldn't bring their children because of concerns of the protestors you are warriors thank you. we had some very bad people outside. >> the campaign disputed the city's tally and claimed 12,000 moved through metal detectors. today trump's campaign manager blamed media coverage warning people away from the rally because of covid and protestors coupled with images of american cities on fire and had a real impact on people bringing their families and children to the rally. social media swirled with another theory, that anti-trump sign ups from teenagers online skewed the crowd size. >> get tickets so other people can't go to trump will be talking to an empty crowd. >> the campaign balked at the phony registrations saying they

weed out bonus sign ups. the president created his own controversy by undercutting the value of coronavirus testing. >> testing is a double edged sword. he made this stunning claim that the white house tried to pass off. >> when you do testing to that extent you're going to find more people and find more cases so i said to my people slow the testing down please. a record $2 trillion has flowed into accounts the surge for april alone for the whole previous year. the main beneficiary is a deposits bonanza has been jp morgan chase a quick look at the activity you're witnessing today. it's for some of these major markets that all started up in

negative territory we're tracking down one in the same in the stock markets as we started out and you can now see a modest of about a quarter of the dax and the french markets and also spain that's on the ftse here in the u.k. it's a significant change up from where we began today. one is driven across in a couple of sectors 1.3 and we still have that today. every stop is in the red retail stocks up 1%. so significant march higher. still weakness in elecomes dow 17 and also second performer. u.k. futures have a significant driver in this change in altitude they did see them start out in the red early on and now moving higher indicating stocks on wall

street all of this started out the day with concerns around the second wave of infections concerns around the very states in the u.s. being effected and that also over the weekend was very much to the european focus around germany as you saw the infection rate spike and this is a concern around the outbreaks here so the second wave very much in the equation european markets with a gain of 3.2%. so some actually outperformed the european markets it will reclose around a dozen of its american stores that's right reclose those stores in southern

and western states the announcement set apple shares lower in friday's trade with investors fearing the tech giant's application could be the catalyst for further retail closure. apple's biggest annual software event, the worldwide developers conference kicked off today. entire week long summit will be held virtually due to coronavirus. they're also facing a backlash so let's get out for more and of course you have the different software on the irgs phone and so you had smooth announcements around some of those software updates but the

biggest trend is around hardware on the massive line-up of computers. it's own design which would be a huge change because it's using intel since 2006 closely watching that move and first reported the news saying that because apple is a little bit concerned about the performance and also will give them much better performance this is a conference designed to woo developers and make apps for the platform but they're going through this with the most intense it has had with the company because many have come out and criticized apple's app store policy marly around the amount of cut of revenue that apple has from these developers and some to make sure that people are signing up by their

app. of course the app store is an incredibly powerful tool and it reduces competition and they call this cut the revenue cut. this is something that apple has denied they have stuck by and said that it's not created unfair competition but we saw last week that the eu opened up an anti-trust investigation into practices on apple pay and it's app store. we're watching this closely. there's two things to watch. how much will this backlash from developers actually move into a movement where you see developers clearing out from apple and secondedly, this anti-trust investigation, this is going to take a long, long time but if it ends up being that the eu forces apple to change it's practices, what kind would this put on them in $64 billion in apple's last fiscal year and the important part of the business two key things to watch going into this developers conference.

back to you. this is 19% for apple. thank you very much for bringing us the latest on the worldwide developers conference. we're watching you closely later on today a quick check of u.s. futures moving quickly in the last half an hour or so. you can see to the outside suggesting that wall street will be off to a decent start this morning versus some of the negative fou tours we're wat negative futures early on. thank very much for watching worldwide chges nt.exan iupex you say that customers make their own rules.

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it is 5:00 a.m. on cnbc. a tale of two markets and dow trying to avoid the fourth straight losing session while big tech continues to shine. the futures are higher speaking of tech, apple giving investors a new reason to love the stock this morning and the virtual worldwide development conference today around the world, new number of positive covid-19 cases rises as they see the second highest number on record other majors are holding steady. this as the white house says it