despite signs of green shoots in china where industrial profits rebound in may rising 6% on the year. they pledge to keep doing business despite solvency.

they're buying up parts of it. the advertising boycott enters with corporate giant starbucks joining a slew of names to with draw all ads from facebook >> the coronavirus outbreak killed 500,000 people around the world. the number of confirmed infections topped 10 million that's according today at a compiled by johns hopkins university you can see how the death rate looks with the usa up top followed by brazil and then the united kingdom in terms of what we are witnessing on the european markets this morning, we started out the day weaker or roughly .2 down and then you can see that

we reversed again. we're down just over a tenth of a percent so far and this is struggling to find directions in the start of the session we're picking up losses from wall street on friday. it hit the european mashltrketst week and also the second wave of infections and this one is particularly hard to quantify given we are seeing localized restrictions that we witnessed at the initial phase or start of phase one. let's dive in. you can see we're now down .2% so it continues by sectors this morning. we started out and every sector was trading weaker and then a lot of green in fact, it's percentage gains in some of those sectors but this morning now, we pull back and we are up almost 1% in autos about 20 minutes to half an hour ago you can see them now up

about .1%. chemicals now moving to the top of the boards and media stocks very slim now and oil and gas taking the bottom performing position it is down 1.2%. so concerns around the demand picture with the second wave of infections really changing the spot price and energy prices overall this morning for stocks. and you can see that some elements of this market are being hit. thank you so much for joining us today. i want to get into this european trade. what is happening? i've never seen european markets so volatile. we saw it last week, we were balancing intraday and selling off and what do you make of this

choppy action? >> it's been an interesting time for sure from our perspective it's not entirely unexpected. we have seen markets rally aggressively in the last three or four months so when we think about the short-term risk, at the front of all investors minds is the coronavirus cases and we haven't seen that emerge in europe so far and that's why i think markets have been a little bit more forward looking and a little bit more long-term in their mind set saying we are going into recovery phase and while that will be more gradual it should still be positive over the last couple of years but there's clearly the read across to the u.s. and the fact that we're seeing the localized slow downs and roll back for reopening measures and some people are nervous because of where markets have got to in the last few weeks. >> i want to get to technology because a lot of fund managers think this is a quality area it has growth elements but also the subscription revenue, you're also pointing to the technology

side of the market but how concerned do we needto be around this facebook story because clearly a huge component and we have seen that a well-known management team has continued to make some very rough decisions around policy and that impacted facebook stock friday do you think the ramifications for the technology gain that we have witnessed >> i think if we just take a step back and think about technology more broadly and think about how the sector is done so far this year, it's been resilient, there's reasons for that one is lock tight balance sheets what you are seeing is an acceleration of a lot of tech that you have seen over the past year and we don't think unnecessary changes even if we go back to a little bit more.

and that's somethingfor a number of years. we still say that is net positive for a lot of the technology platforms the real dominant platforms continued to gain market share and with a backdrop of acceleration a lot of those macro trends are frankly just the push for greater use of data we think that that's for the space in general. >> getting even stronger for some of these technology companies but we have seen it there. very traditional industries that saw their revenue fall off of a cliff because of social distancing and lock down being forced to pivot more aggressively than they have been doing. does that have any impact for the profitability when we finally return to normal >> i think that we have to separate what we're referencing there. if you look at the measures we have seen over the last few months and what that means

long-term. there's a potential impact for costs for businesses in the service economy and offering people an experience in real life where they have to aggregate with other people. that is a concern if you think about margin but we have to weigh that against the secular growth trend that we're seeing where you have a millennial consumer that wants to spend money on experience and do things in real life. so for us there's a short-term impact and we have to be cautious around that experience and it will be a more protracted reopening and that can be quite significantly negative for certain companies in that space. and that could be very net positive on the retailing side of things this is a further reinforcement of the view that unless you have a complimentary online off line retail model or you have a unique proposition that will bring people into your stores this is going to be a further

head wind to traditional bricks and mortar retailer. and clearly that's been quite challenging. >> we started out talking about risk appetite and in the last week or so some managers take risk off of the table. some of the recommendations have been to lighten up on emerging markets. do you think it can with stand any challenge from risk off sentiment? >> well, again, i think that you have to separate the short-term from the long-term markets will move in aggregate if you see the risk off trade and there's a real concern about reescalation of coronavirus. if that were to reoccur in china that will weigh on markets because we have rallied and china is one of the best performing markets this year but medium to long-term we see

huge opportunities there push forward with this reopening effort and what they also recognized is it has to go hand in hand with longer term objectives around state and enterprise reform and deleveraging that's why the response in china has been nowhere near as significant as you would have seen so as we push forward over the next five or ten years the opportunities that you're finding in china, especially in the consumer technology and discretionary spending areas of the market as the economy reopens and we get back to normality that's appealing and couple that with the fact that especially the domestic market, the chinese asia market is being opened up for the first time ever for the vast majority of people so what we'll see is a continued inflow as that becomes much more relevant in your institution and private portfolio.

because the story has been incredibly negative. >> we have been a little bit more cautious on the hardware side of things and those that are ultimately linked into global trade and export. that is an area of challenge and not the least of which because you should expect the tensions between the u.s. and china as you run into the u.s. election. >> they are very much built to serve and that's so significant that it actually isn't a major challenge if they're not at

further appeal at one point on the china internet side of things as much as we talk about china needing to move away from being reliant on western markets in terms of light manufacturing export one thing that's interesting is chinese governments also recognize their dependency on the u.s. if you think about the evolution as we think about cyber security and automation and a lot of the other aspects of the data driven story that we're seeing china is still quite reliant to deliver the critical components so what we would expect to see it should be significant investments to make sure that they have domestic independence around that >> thank you so much for joining us today >> coming up on the show,

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>> they have repeated a promise to step down speaking of the company, if a plan to cut costs and boost sales in china and the united states does not succeed. meanwhile, they also denied a conspiracy saying quote, there are no facts to support the claim. airbus ceo says he expects production and deliveries to drop by 40% over the next two years as they continue to see demand speaking to a german newspaper, he added that it will adapt to the decrease but declined to give any specific comment on the structuring plans. the eu is expected to sign off

on the takeover of osram according to reuters officials reportedly do not see any issues with the deal as the two companies do not have many overlapping businesses and banking sector commerce bank is set to approve more branch closures and job cuts when the supervisory board convenes a special meeting on wednesday according to a german newspaper. they said earlier this month that cost cutting measures will likely be more severe than originally announced the german bank announced last year it would cut the number of its branches to around 800 from the current 1,000. it's also estimated that it would have to eliminate 4,300 position while adding 2,000 new jobs into strategic areas. >> it's best for creditors if it continues to operate after solvency last week it expects to have a provisional administrator appointed shortly. meanwhile the german government

will terminate it's contract with watchdog in the wake of the scandal according to several media outlets. regulators are accused of adequately failing to oversea the accounts after nearly 2 billion euros went missing speaking to cnbc, the central bank said authorities there are working with their german counter parts to investigate the banks. they initially claimed the missing money was held in a couple of those accounts >> the day they stopped and it's been reported to us. what the nature of the

conversation >> they're interested in taking it apart and the company 184% higher let's get to it. we have been watching the stock action all morning i was pointing out no doubt on very low liquidity and clearly enormous moves reminds me of the action we saw where investors are just betting on something because there's a fear of missing out. >> yeah. exactly. there is a remote chance that they could make a fortune based on the volume the share is currently creating and it really looks like that the remaining of wirecard which is apparently making money, as you know, we don't know how cooked the books are. and there is reportedly interest from competitors but also private equity companies which could buy the remaining cards which are working.

the wirecard bank is not effected by the insolvency currently. so this part of the business is still on going and they're trying to make that work also going forward. it all depends on the clients reaction i have said that over and over again. and did biggest clients will continue to issue credit cards whether wirecard bank is allowed to do so going forward, of course, it will be much smaller company and the interest from private equity and also competitors tells you also that there should be a part of the company that may -- which is worth while actually looking into at the same time, here in germany, we have a very strong and on going debate of how to change regulation and that this kind of a balance sheet

manipulation fraud can never happen again or at least not as easy as it was apparently for wirecard and for that, to that extent, berlin is terminating it's contract with the auditing regul regulatory body. the authority will also be expanded including that because currently there seems to be no regulation of exactly that type of company wirecard was also classified for. so i guess, one side we have the regulation moving now quite swiftly in order also to avoid that reputational advantage which already has been germany and the financial system and at the same time of course, wirecard as a company, that story moves forward as well because the insolvency is not doing anything less than looking

at what slices of the company can be sold in order to get out the money to the creditors of the companies. >> they have shifted the blame to the company the new ceo said it was all there in plain sight so that points the fingers at a lot of people and should notice that there's a problem what do you make of where we stand on who is to blame here? >> exactly it is a blame game especially trying to actually change the narrative and painting themselves as a victim of that fraud which was

extensively made out and according to the financial times they have issued an internal memo and also talking points about how to react from allegations outside about their role they played when they audited these financial statements and it would have been easy back to you. >> specializing in fraud you can probably hear the conversation there how do you think this wire card fraud happened >> so it's a big accounting

fraud in germany so i suppose that it would be huge for the german market. especially for the financial market >> what does it mean in terms of future paces we saw news over the weekend to try to change the reporting structure. and what do you think happens next in germany? could we see something like this ever happen again? >> we'll have something like this again what could we do

and look at one company. we had to rearrange the system of auditor so i think that we need to reform germany and we should have a look at how it looked at other countries in the world or in europe and that's the one thing or the other thing we have where we have now a lot of discussions since the weekend so the federal government finished the contract with the credit association for the end of 2021. and the association was founded to prevent such accounting fraud like we have now so i think that we need another accounting for how the frip is and in general, in the newspaper, we have auditors. >> let me jump in here

what do you think will be the effect on him? i don't want to compare that to the end of it but there seems to be quite some but do you think that it will be a big stretch for them going forward >> i think there will be a huge image because in the newspaper of the financial times in the last few years, it's significant because it was 1.9 billion from the accounts so it wasn't a huge demand so at the end of 2018, nearly about 6 billion euros.

so it was about 1-half of the balance sheet. >> that's clearly not a good job. it seems that they will get more authority and more regulation. do you think that they're well equipped and also that the president will stay on >> i think it's what went wrong in the past and then to decide what you can do in the future

it's the authority to prevent things like this so there should be discussions on how to improve it and enough time and enough stuff to prevent such accounting fraud like this. we'll dive into those results after the break.

>> they're joining a slew of names to with draw or suspend from facebook. chesapeake files for chapter 11 bankruptcy as it collapses under the weight of its debts and crash. >> it's been a morning session for european markets and continue on at the start of this session. we were approached lower at the start. then we moved higher across on the markets and then moving south. it's trying to get out a small game and it's been 22% in the

last quarter the french market trades lower and you have gains on italian stocks to the tune of a third of a percent so signals for the european boards as they look to wrap up the month of june. let's take you to the u.s. markets. we also have a lot of activity the boards have even some of this and has given back some territory as we countdown to the session and this is a second wave of infections so markets a little bit tainted you can see this morning trying to move higher but it's a very cautious start anticipated the asian markets have been weak across the trading day and japanese stocks down 2.3%. and also the chinese markets and

more modest terms of that selling but still a weaker session playing out across the board. let's get into china's industrial profits rising for the first time since may it marks the largest gain since march last year. and it's the world's second largest economy continues to show signs of recovery since the easing of the lock down. >> it rebounded for the first time in tand reversing the 4.3%l we saw in the month of april suggesting that china's economic recovery is picking up since the coronavirus outbreak and lock down grinded everything to a screeching halt and that data is certainly positive news for manufacturing investment but also the job market in china and profit fell 19.3% year on

year but that was compared to a 24.7% slump from january to april. and improving as more firms did resume work. it's largely due to easing cost at pressure and policy support over at the mainland and in a number of industries including chemicals and steel. at the same time, chinese officials said that demand at home and abroad still remains sluggish amid concerns about the coronavirus and second wave of infections globally but also as other economies around the world try to recover themselves and at china's central bank said that china's economic growth will still face challenges and head winds amid this global pandemic. and it does. it has said that it will continue to guide lending rates lower but also continue to help

and support it as well as private firms in china of course economists as well as investors both said that they widely expect to see more rate cuts in the coming months coming from beijing in order to inject more liquidity in the markets and help china's economic recovery back to you. >> an exclusive interview that any economic or market forecast will be difficult to make in the absence of major break throughs. >> the recovery is starting on the basis of reopening while the pandemic is still with us. and while it's still with us, there has to be an expectation of spikes and actually we see that happening in many places and then it has to be an adjustment in economic response

to these spikes. so we cannot project anything but uneven and partial recovery until such time when they can be a practical ending of the pandemic and that time is not yet. the european union is set to exclude the u.s. such as brazil, russia and south africa are also not on the so-called safe list and ambassadors from 27 eu countries convened last friday to finalize the criteria and they are saying that government consultations were required first. elections across france delivered a blow to president emanuel macron let's get out to charlotte

we know that the coronavirus pandemic has been bad for many incumbent governments. how much of this is coronavirus and how much is macron and protests and pension reform? >> you're right. the crisis might make things worse for him and we see that in france compared to other european countries france is one of the countries that were most unhappy with the governments action in this crisis and the results yesterday were showing he was doing really bad again and that was expected for several reasons. one is it didn't exist and failed to really create this grass root base for the party and make it go beyond that and really failed to results

yesterday and the first round of this election was on march 15th. just two days before the lock down in france and now the second round coming three months later in the completely different context and they're of course been showing that some of the worries and 60% for the second round so in any case, we have seen a green wave in particular in the larger cities. and it's been traditional and so real shape there and we have seen the far right party and they have failed to make very significant gains there and it's a number of city

councils that have already come down and discontent and now the question is the message in this failure in this election is rumors of a reshuffle coming next but there's a problem there because his prime minister is more of a center right man and he was reelected with 59% of the votes yesterday and he's very popular in general, more than the president himself. so the question is does he want to go more with the left vote and green vote that we have seen surge in this big city and this could determine how it will go ahead of the next presidential election. and it's the first time after this election when he's hosting

and initiative they started and bringing more consultation and making progress and this proposal delivered this morning on the back of this. and whether he keeps his prime minister and it will be crucial and re-election in two years >> they can now decide whether to remain part of the european central bank access program. that's according to one of the judges on constitutional court they ruled in may that it exceeded it's mandate with it's 2 trillion euro bond buying scheme and to with draw from program unless the ecb could justify the scope of its practices. but last week they agreed to

provide documents justifying policy decisions today six amazon sites in jeremy had dozens of employees test positive for coronavirus the strike will last at least 48 hours. coming up on the show, coronavirus deaths reach half a million worldwide. more after the break

this is around another divestment of one of its chemicals business the company agreeing to sell that business which is chemical space and bp says the deal further strengthens bp's finances and earlier this is a $5 billion

deal for that global areromatic businesses the business in particular strengthens the finances as the company said it is up to $400 million and pay a further $3.6 billion on completion. and there's another component on this that 1 billion will be the third and three separate installments of 100 million in march, april and may in 2021 and it does employ over 1,700 starts worldwide they're expected to be transferred on completion and so progression in trying to wind down some of the exposures to the tune of $15 billion. >> let's take a look at spot

price of oil this morning and it's a $40 handle but reversing 1.5% and wti is $38 at this stage and in the sector showing just how hard it has been. chesapeake energy has filed for chapter 11 bankruptcy as the pioneer collapsed under a heavy debt load and they'll target a restructuring push $7 billion in debt it also agreed with lenders to secure $925 million in financing to continue operations along with a $600 million commitment in new equity. starbucks has been the latest on all social media platforms after civil rights groups said they'l

hold internal discussions and work to help stop the spread of hate speech. and the list of companies joining the advertising boycott on facebook is growing calls to shun the social media platform girn thbegins this mon. the movement is responding to the failure to act on posts from president trump that was seen to insight violence they're some of the early adopters of the boycott. it's now spread to some of the world's biggest brands like unilever and honda and diageo. they have suspended ad campaigns across all social media. >> in response to a slew of announcements, facebook ceo mark zuckerberg outlined new policies to better police content. >> we're adopting new policies to prohibit a wider category of hateful content in ads

specifically, we're going to be expanding our ad policy to prohibit claims that people from a specific race or specific ethnicity or national origin or religious affiliation or sexual orientation or gender identity or immigration status, any claim that they are a threat to the physical safety or health or survival of anyone else and we're also changing our policies to better protect immigrants, migrants, refugees and asylum seekers from ads that suggest that these groups are somehow inferior or ads that are expressing contempt or dismissal or disgust directed at them. >> more than a dozen states have partially reversed plans to reopen texas is seeing within of the largest surges with cases hitting nearly 150,000

in arizona icu beds are at 87% capacity while in florida there's more than 6 new cases per minute with officials saying some beaches will be closed for the 4th of july holiday. the california governor has ordered bars to close immediately in seven counties including los angeles. this comes just two days after officials in florida and texas took similar action. speaking to nbc's meet the press, the house secretary issued this grim warning. >> the window is closing we have to act and we need to social distance and we need to wear face coverings if we're in settings where we can't social distance in these hot zones. >> joining us now is the managing director, jordan, you have developed a heat map that gives businesses whether covid-19 impacts and you're looking at the economic hit as

well just what we're seeing in the united states and what that means economically. >> sure, it's nice to be with you on street signs this morning. so we're seeing the same grim data that everyone else is although we have been seeing that data for three months we had 50 analysts covering over 60 countries across 30 data factors since we started doing this and we have seen continued severe serious economic impacts not just in transportation and leisure and consumer goods but virtually across the board, across the united states i do think that there's potential good news in the extremely grim numbers that we're seeing emerge and that is that governors and state legislatures who had initially taken that approach to the virus and to treating the virus are starting to react more quickly in response to the data so you're seeing that in things like bar closures in texas and florida and we think that that's a good thing because it seems that going big and going fast

and listening to the data and being able to move is an effective way of managing the economic fall out here >> it's in contrast to where we started initially. some political leaders were talking about not shutting down the economy given the connotation that the shutdown the first time was not helpful but that's in contrast to the data we're seeing because sweden was also one of the hold out countries that didn't really go into lock down but you have seen just as bad of an economic hit there than anyone else what happens under the second waves? do we see more lock downs? >> yeah, that's a terrific question so we have actually just put together a white paper on this comparing the swedish response which as you noted was really light restriction. i don't want to say it was full herd immunity but it was similar to the greek response which was extremely tight lockdowns that were enforced to the extent that churches were being monitored and what we're seeing is greece emerge from this with a stronger retail economy but also a far

fewer debt count for 10,000. i think greece is at 2 for 10,000 as compared to swedens 45 and even on cnbc ten days ago they said that if there's another wave, another serious wave from sweden they're likely to take much more restricted measures than they did the first time so we think that there's a big, big lesson in that and both the economy response and the public health response really couldn't be different there's clear, clear lessons to be learned for elements of the united states that are trying to figure out what the best public policy approach to dealing with the virus is. >> it does feel as though some parts of population were very encouraged by the reopening of economies and also by the messages about locking down economies again. you can see that in very populated areas, people hit the beach and it's been very little social distancing. how would lock down in another major city whether it's new york

or london be taken >> i can tell you in the united states it wouldn't be received well but again i want to try to be moderately optimistic not overly optimistic because being overly optimistic leads to market inefficiencies and also opens people up to fraud and things like that and we're still seeing tremendous frailties across the supply chain right? and tremendous issues valuing assets but new york is slowly and cautiously entering a reopening phase as is new jersey and connecticut who have sort of formed these states that have going to do things like quarantine people coming in from hot zones even inside of the united states which is a little bit unusual. and they are moving forward with phased economic reopening. where as you're seeing the potential for the opposite in texas and florida where we hope this goes if we follow the greek model is that as we learn more about this very dynamic and very dangerous virus and i have to

say this, hopefully as young people around the world start acting more responsibly and listening to and those can continue both domestically and around the world and i think here at home and in the united states there's very little patience among the people for a full economic lock down and there's also concern that that lock down has been squandered by policy makers. >> jordan, a moment ago you mentioned fraud and cyberattacks and clearly it's something business has been focused on in the past but we're seeing more and more activities online more purchases.

and it is important that as a nation and world in a business community we don't lose our skepticism the economic impact of the virus will make more populations more vulnerable and when populations are vulnerable they are vulnerable to fraud and they want to believe good news and you're seeing this in other industries so for our cyber practice, we have seen a massive increase in not just ransomware attacks but spearphishing attacks. we have seen a lot of clients that wanted to believe their global supply chain and domestic supply chain was stronger than the data on the ground suggested. some of them are having problems getting precursor goods delivered like at the beginning of the virus.

and that couldn't be more true they could not be busier right now. >> thank you very much for joining us today. >> worldwide exchange is coming your way next.

it is 5:00 a.m. at cnbc and here's your top five at 5:00 stocks set to snap win streaks and still on pace for one of the best quarters ever americans worried about the spread of coronavirus in the south and west as the white house delivers a new warning about the window to act. >> a developing story this morning as another major energy titan files from bankruptcy amid the commodity crush. new names say they are pulling ads from the social network and a big name from boeing as th