i love you so much and will love you forever. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] welcome to "street signs." i'm karen tso. these are your headlines top u.s. health official anthony fauci warning of a disteshing search >> i and my colleagues know for sure none of us have ever been told to slow down on testing that is a fact in fact, we will be doing more

testing. the dax is the worst performer in europe after germany suffers an outbreak at a slaughter house and forced to put two districts back on lockdown strong demand for tablets and notebooks. >> this drives the demand for notebooks, chrome books, head phones for more professional use from home and even printers. that trend we see to continue. >> wire card shares gain after former ceo is released on bail and germany's financial regulator widen the probe on the firm good morning thanks for joining us.

i want to take you first up to the data just revealing that german business morale has risen in the month of june. the climate index in june is at 86 86.2 versus 85 so outperforming expectations. we were at 74.2 in april 75.9 in may. we were still below the 80 today, we have soared above it to this 82.2 level the efo current conditions index 81.3 in june forecasts were firmer at 84. that handle is underperforming in terms of the expectations, 94.4 versus 87 in june as the business climate index is revised in may

that is revised to 79.7. that business climate revised up for the month of may that is better news on what we are seeing may includes many of the lockdown restrictions on the economies. what we were seeing on the may index, that has been advised higher adjustments across a lot of these today. probably worth pointing out that the increase is the strongest increase ever recorded hot on the heels of the data we had yesterday. going the right direction when it goes to the german economy. annette, what do you make of these readings so far? >> actually, it is better than expected especially the expectation kpoen nant coming in at 91.4 -- shows

that the german -- sorry german businesses really see the light at the end of the tunnel that's what the institute is also saying also that the manufacturing business is significantly better and has risen the component in the month of june, which is quite remarkable given the production facilities and value change of the company. the construction business is a lot better the service sector has a steep acceleration in the month of june all in all, it seems that not only the economy but also the morale is steeply improving from

the lows of april and march with the opening of the economy that was mirrored almost slightly in the pmis of yesterday. it is improving. i think the jury is out whether we are going to see a dynamic recovery here in germany nor the economy. i guess the morale for businesses at least by the ifo index seem to suggest that this could be a dynamic recovery with the expectation being so strong. also the ifo institute saying this had been the strongest recording ever of the business in the business climate does show you the nature of that price.

it was a very steep dip. we might actually now see very steep recovery that's what the ifo index is suggesting again to sum it up across all the sectors of the economy that we are going to see improvement. for example, the services sector does see a good recovery, manufacturing and also the manufacturing sector now they are saying they expect growth around the third quarter around plus 7% >> thank you quickly for the audience not seeing a lot of reaction the dax moving and not doing much for that direction. the euro not bulging we are seeing weak in the session. in contrast to yesterday's pmis.

going to the president at ifo institute. a second day and better news on the recovery of germany, walk us through what you think are the implications of the survey this morning? >> yes we see a rebound primarily coming from improved expectations if we look at the sectors, services are strong. we see an improvement of expectations and an assessment of the current situation in manufacturing. mostly expectations. current situation is still very bad. no big change here but expectations have improved this extreme possess mission we have seen in recent months this

is around a corona outbreak at a slaughter house. the threat of community spread is some what elevated. how do you bake that into some of this sentiment gauge? do you think conditions or sentiment could soft enover the next coming weeks? >> no doubt this will have an impact we'll see local outbreaks as long as these are controlled and do not spread, the general mood and recovery will not change it would be different if it were more widespread and lockdowns would happen as long as these outbreaks,

local and restricted, i think the economy can manage >> you said german business sees the light at the end of the tunnel what does that light actually look like? is that enough to prompt german business to begin vesting again for cap x and the future >> the light at the end of the tunnel is improved expectations. i think most businesses now think we are going to be in the place where we are present most of our trading partners are opening up the lockdown is easing as well it is easier to assess what is coming not that crisis disappears but

the situation can be managed and allows to some extent at least, a return to business as usual. >> you've been compiling these for a long time. getting used to the data and number of correspondents they haven't had the same level of correspondents you would have normally >> i think we've had more or less the same number of respondents. >> thank you for that. president of ifo institute a slaughter house has reported a fresh outbreak of 23 coronavirus cases prompting testing of around 1,000

employees after authorities reimposed lockdown measures due to the lockdown. called the biggest infection event in germany the country has confirmed another 587 new cases and 19 new deaths the head of the scientific bodies stresses the importance of complying with the fresh restrictions >> translator: the current outbreaks in meat processing or religious communities can be translated it is important to strict to the rules. keeping distances, observing rules of hygiene, where masks when necessary the president of german

society of immunology said the meat processing plants were perfect ground for spread of the virus. >> you have this huge plant you mention. you have another one in germany. you have the same thing in different countries in england and usa. something about these meat processing plant that gives optimal condition for viral spread the important thing now is to try and contain this outbreak and prevent it from entering the general population and make it unstoppable. so if all works well with the lockdown, it should come a day or two earlier than it did that's the real important thing now to contain it and keep it from spreading to the general

population i want to take to you russia with a victory day parade. a show of military might this event was rescheduled due to the coronavirus you can see pictures in the sky. a lovely formation of those aircraft as they take to the skies. we have been watching a military parade putin front and center of these celebrations noting a real lack of social distancing as there has been a spike of coronavirus cases in russia probably front and center, the po politics and the messaging you consider there is a nationwide vote of constitutional change for amendment to allow putin to run for further office after 2024.

those are key votes. these pictures a beautiful day playing out. it is commemorating 75th anniversary of nazi germany's capitulation in world war ii we are now moving past the first hour of trading here in europe we have a lot of red on that heat map it has been a strong trade negative as that red accelerates despite the ifo having no baring it did not impact the trade unlike yesterday when the pmi caught that. given back all of yesterday's gains. it is a reversal from two positive sessions we witnessed out of three we are now giving back a lot of

those gains. for the quarter, it has been stunning this market might be running into a little fatigue as we run to the end of the month, end of the quarter and end of the half. >> 1.8 in the uk 1.6 in france. 1.8 for the dax. a lot of display for appetite for growth stocks. the dax yesterday up 1.2%. not all of those gains from yesterday on the italian and spanish markets. 1%, 1.5% down. not giving back all of yesterday's territory. 1.1% give back some of these are being retained on the markets. in terms of the sectors, everyone was trading weaker in the start. with the come back in the mix

where we have turned negative on the board. travel and leisure has now faded. autos also heavily bid up. now down to the tune close to 2% close buildup in industry where much more had been expected in crude industry in the states rising by 1.6 million. the expectation was about 300,000. so that's disappointing. along with plans for shale the european union is reportedly proposing a ban on u.s. travelers due to the virus. discussing criteria for allowing non-eu visitors. the united states could be put

in the same category as two other hot spots, russia and brazil coming up, wide card former ceo posts bail he stands accused of misleading markets.

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corporate stories we are tracking for you volkswagen is looking at a potential deal to acquire europcar the take overwould mark a reversal for vw which sold them in 2006. chipmaker dialogue upgrades. the chip maker expects revenue to be in $290 to $305 million.

dialog said the apple move away could be interesting >> caller: it could be interesting. i just like to point out that we basically have been supplying majority of products which are based around the arm processor and continue to see opportunities there. >> the former ceo of wire card has been released on bail after he was arrested on monday on suspicion of falsifying the company's account. he will be required to report to the police once a week as the investigation continues. local media and financial times are reporting that brown sold 155 million euros worth of

wirecard shares last week. updating the investigation accusing the payment provider of misleading with false accounting practices. speaking on the program earlier said there is a lot of room for improvement. >> caller: is it really a financial watch dog or a puppy doin dog? they have to be very critical of what they did in this matter they have to clean it up and have a strong legislation. public enforcement needs to be strengthened and also private enforcement. we have collected action here. we need to make it better for investors so that they can recover their losses there is still a lot that needs

to be done in germany. >> i was amazed to see wirecard was a top performer opening up now the second worse performer a dramatic change we have witnessed in this conversation >> what we have witnessed now is a huge volume. a huge share nobody knows what the future holds for wire card. we have all these moving parts now the prosecutor is investigating the role of marcus brown and former ceo that grew the company from a little dot com company out of munich to a dax member there were so many years of suspicion about their revenue situation and accounting

so this story goes on now for almost two years now only, we are coming to a close here in realizing that accounting has really been fraudulent, so what happens now is that of course, they are looking into the matter more thoroughly. they have not been doing a good job and admitting as well publicly that this is a disaster also a disaster for germany as such it should not have happened in germany that a company could inflate its revenues so much as getting caught talking about the auditors and the scrutiny and what have they done when they audited and didn't find any wrongdoing when

it comes to the numbers. the revenue situation seems to be inflated especially with the third party negotiations that means for that third party going forward. it is unclear what the banks are going to do. for now, they are keeping their feet still they want to have full transparency, of course, they don't have any interest to ride down their loans which amount to 2 billion euros as well. only responsible for 1.75 billion euros and loans they don't pull the trigger for now. they want to have more information to get at least part of their money back. the big question is what are

clients going to do that we would sometimes do business with wire card going forward. what are others saying that would be primary for the future of the company going forward back to you. >> the questions today not commenting so far. we'll keep tracking developments of wire card on the verge of reaching a settlement of cases. bayer is reporting to vote on the settlement in coming days, which could reach up to $10 billion. bayer is facing claims from thousands of cases of those who say the product causes cancer. softbank set plans in a bid to raise funds for the $41

billion share buy back and debt reduction plan and has agreed to return remaining t-mobile stock following the initial share sale royal dutch plans a major restructuring as they plan to ramp up the transition to carbon the ceo reportedly told employees in a video on an internal website that the first overall will involve job cuts. hoping to receive net zero emissions by 2015. rivals have already unveiled similar plans. ahead, chinese iphone sales drop after seeing an initial rebound. we'll analyze what this means for the tech giant next. jimmy's gotten used to his whole room smelling like sweaty odors.

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i'm karen tso. these are your headlines a second wave fears grow and top official warning >> i and my colleagues to my knowledge, i know for sure, to my knowledge, none of us have ever been told to slow down on testing. that just is a fact. in fact, we will be doing more testing. german morale gets a boost as the german ifo climbs on the index. but still strikes a cautious note >> the current situation is still assessed as very bad no big change here but expectations have improved this extreme pesmissum we've

seen >> work from home increasing demand for notebooks >> the strong demand for notebooks, chrome books, head phones and even printers that trend we see to continue at least within q 3 >> reversing earlier gains after released on bail and widens the probe of the payment's firm. it has been a broadly weaker session on european markets. despite who we witnessed on the data not having the same impact on the markets as the pmis yesterday. dropping to the similar tune in the reversal of 1.9% in terms of these losses

germany picked up 1.2% it has not given back all of its territory. on the prifry, we've got losses for the ftse mib in italy. slightly more when it comes to the ibex in spain. similar to the core. investors back from a strong month and strong quarter investors have been leaning to positives. reopening of the economies and businesses that have been opening. there is bad news out there. there is a spike of crona cases. futures have been choppy and now turned weaker as we take a little check of the early action state side 250 checks of the dow jones at

this stage suggesting a weaker start on wall street. don't forget, we saw a fresh record on the nasdaq what we saw for the appetite in tech stocks. >> speaking of tech, iphone sales fell after seeing a rebound in april according to third party data compiled by cnbc arjun has been looking at this closely. a lot of different factors when it comes to iphone sales in china. we saw pent up demand early and also cutting the ticket price on the iphone stimulating demand. >> what is interesting, when we look back in april, we saw 3.9 million iphones sold

where you see that pent up demand what we saw in may was 3.6 million iphones sold that could be a sign that that demand is starting to weaken some what. another stat to look at is the shipment the idea that apple was shipping out. that was just over 2 million in may and over a 20% drop from what we saw in april and that could give us a gauge of what is happening in terms of the future demand in april, apple did see that return of the se, the cheaper version of the iphone. perhaps that and seeing the future demand weakening. they don't really have another new iphone on the horizon. perhaps potential for delays

here because of the coronavirus and impact on the supply chain it was a mixed bag for apple in may, you actually saw consumer spending on the apple app store. they said consumers spent $1.71 billion in china apple won't see all of that revenue. certainly some of it given the cut it takes that will boost services and perhaps offset some sales in the iphone looking forward to the head winds and potential for the consumer to slow down spending and seeing the consumer still spending even if they are not buying the hardware. back to you. apple was a big move on the stock again. a huge drive for some of the activity we've seen. arjun has penned a piece you can

check out on cnbc.com. our next guest forecasted a u shape recovery that must begin in the quarter with structural bright spots the cio of quintet bank. nice to have you on the show we've talked about the kpo components of this market. when it comes to tech, doesn't that underpin the case for further growth like technology >> absolutely, in 2020, there is a lot of talk about the valuation and from that point before we had heard about covid. we were very keen on the underlying structural of technology and health care as well

as covid-19 un-ralphed, this only increased the sections. that demand and collision between fiscal and continued in the actual way business is behaving today >> when it comes to health care, it has been a wide conversation today where you are seeing more health care spending as covid-19 is highlighting the case where the government needs to spend more and you got more treatment and vaccines is there any other terms of treatment and arguments put forward? >> absolutely. the arguments are very valid the arguments increase the acceleration of momentum behind prior to the story there is a strong structural

growth behind health care regardless this came out to access where it was much better. aging demographics, the need of aging the population and the asian countries providing the stimulus there is a bigger underlying story. talking about the vaccinations was an extra stimulus to this sector >> bill, this crisis has provided a rare opportunity to look at europe versus the u.s. really in parallel here from a communication perspective and overall pandemic response and of course when it comes to stimulus this is an opportunity for europe to outperform in the u.s.

lagging since 2009 we are seeing really substantial coordinated fiscal stimulus. curious your thoughts here >> that's a really interesting question it goes to some of our discussions we've had recently where we have been moving more positively to europe the one thing i say here when we had the conversations about the sectors, the u.s. market is dominated by these big giants. when you compare the u.s. stock markets, you are not comparing apples for apples talking about the exposure or broad indices. in the u.s., the contribution to the financial sector in 2009 is much more. you get a different set of

exposure when you talk about region to that point, to the european recovery bundes. a lot to see whether we've evolved in the fiscal harmony going forward but at a base level for the fiscal report for the region >> if i could bring it more near term here. we are watching the u.s. virus numbers. dr. fauci weighing in that although the death rate is

declining, this is a lagging indicator. secretary mnuchin said he has no plans for the u.s. economy to shut down again despite what happens with the virus do you think if we do see individual states begin to reimpose these lockdowns as numbers rise, markets will react negatively what has been priced in here >> i don't think anyone expected or should have expected the path to recovery on this virus to be completely linear. seeing these surges in the second wave or surges in the first wave are not totally surprising when you open the economy, it is difficult to control the activity, spes lesespecially wh have all of that pent up

activity the huge hurdle is the relockdown that is a really big hurdle in order to do that we think that would be the last call of action to make to say, okay, we are going to really lockdown our owneconomies. pushing through these rates. >> down the track to the ceo coming up, cases across the u.s. data suggests the worst to be over more when we return. tough time right now, a reay all around the world.

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business activity rebounded in june according to the latest

data and sign the down opportunity is losing steam. showing the composite number shooting back up to 46.8 manufacturing hit the highest level in four months the number indicated is still in contraction territory as businesses across the u.s. has begun reopening. the number of coronavirus cases continues to surge in the southern and western states of the u.s. texas reported a high of 5,500 a arizona recorded a record increase the number in the u.s. has now topped 2.1 million and the death toll hitting 121,000 the trump administration tested at a house committee as the number of virus cases continues to surge in those

southern and western states. dr. fauci told the committee the surge was predominantly linked to community spread. >> we need to have in place the stable type of support for preparedness for outbreaks we'll get through this this will end, hopefully sooner rather than later. we need to establish a system so we are prepared. in other areas of the koircht we are seeing a disturbing increase it looks like a combination. one thing is the increase of community spread that is one thing i'm concerned about. >> joining us now, associate professor. mike, thank you for being with us we've been hearing about the record spike in the united states, latin america and even

in germany do you think we have witnessing a second wave of infections? >> every country is different where it is. some countries in south america really are still in a very large first wave brazil seeing a rise in cases, chile and pueru. other countries in europe are starting to see as they come out of lockdown. many countries are coming out of lockdown in europe as measures are easing, we are seeing a small cluster of cases emerging the crucial thing there is as cases emerge that they are controlled rapidly local testing and tracing and local intervention measures. as we do see a second wave what we want to do is react quickly

so that we don't see a large second wave. >> after the first wave, you almost got the view if we got another big outbreak, you get the idea we'll just shut down again despite denials from politicians including president trump. it is isolated where there is a border has gone up is that the way for we won't see the economy shut down like in the first wave >> that can be the way forward provided we keep the cases relatively low at the start, this is what we tried to do to control the disease in each country. do local testing and lock al cases. the problem is when the cases get large enough, it becomes imt possible to do that, which is why we have to move to large-scale lockdowns. as we progress, we are back in that situation

if we can't react rapidly, we may have to see larger scale lockdowns in order to supress the infection once again >> i want to come back to your first comment to the distinction where in some cases it is a continuation of the first wave and in others, it is a second wave emerging. why is this distinction so important? >> the way countries manage is different. having different strategies in the way they control the disease. in some, we are seeing a continual rise in cases. that is hard to tease out. if a country tests more, they find more cases. confirmed cases will go up it is extremely important to test more. in other countries what we are

seeing, case numbers have got to a very low level where we are starting to see cases going up in a sense, it doesn't matter whether there is a first wave or second wave. we are looking at how many cases we have, whether those are growing and reacting rapidly in order to put in local measures to stop those from rising. >> i know you've discussed the importance of the track and trace apps that becomes harder with people moving across countries. how much is the risk of travel given the imcombatibility. >> whether it be reopening of pubs and restaurants or travel, there is an increase of risk

that has to be factored against the reopening. this becomes political rather than scientific condition. i would be cautious traveling to a country that has significant number of cases circulating. many with a similar stage in their epidemic and level of cases. the risk for travel is not zero, absolutely not but countries that are at a similar stage and in the uk such as the averages of these countries that would be possibly no more set or risky than traveling in your own country when you've got the virus circulating. people need to weigh out the risk, look where they go and take that advice

>> is there anything about that particular transmission that we should be up to speed with or is it really down to the working conditions in those facilities >> my understanding we are seeing a lot of cases in these kind of plants and factories you do have workers working relatively close to each other there is some suggestion because the temperature in these factories are quite low, the virus may be able to spike longer on surfaces the key thing is when we do start to see these clusters happening in the processing plants, they react quickly we need to wait for larger clusters shutting down the plant to look

for where this might spread to >> do you want to give us a line announced by boris johnson yesterday with the one meter plus rule and social distancing. >> i would say the key thing, the chief medical officer said this we are not saying one meter is as safe as two meters. if someone is in a situation where they can be two meters away, they should be because it is safer it is a practical trade off and the ability to reopen certain industry i would say people should be careful. we are not out of the woods yet. we may see that rising i would advise cautious. it is time to maintain things like good hygiene practices. we don't want to see when all these measures relax on the 4th

of july to see these increase again. >> thank you a quick check of u.s. futures have been weakening. you can see on the boards, the futures still in the red 250 plus points, close to 200 to the down side suggest a weaker start on wall street reversing the gains we saw yesterday we've been monitoring comemoration in russia "worldwide exchange" is up next.

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it is 5:0 on the east coast and here is your "top five at 5. tech record rebound. >> billionaire investor calling out the day trades a reverse travel ban europe saying americans may not be welcome because of surging covid cases. the call to action the list of companies boycotting facebook and instagram grows and getting back to work may an