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. european equities follow u.s. higher in vaccine hopes. the u.s. is expected to see 3 million people added to payrolls back in june apple and mcdonalds ease their lockdown easing measures shares in wirecard issue decline as part of a widening police

probe into alleged fraud at the firm beijing hits back saying there will be consequences to safe harbor as they continue to work on punitive measures you are watching "street signs." i'm going to take us through the hour of trading. picking up on the vaccine story, early stage trials with encouraging signs. the market is running with it. you can see a bit of pop and shares along with asia but some components trading higher. we have a lot of jobs to weather

today. we have had lumpy old numbers to read through in recent times the payroll report would breakthrough this is how they fair. you can see the green across the board. the dax has been an early performer. choppy in the early session. this morning, a gain of 2% in front for the rest of the 1 plus gain we did notice there was early appetite we look for signaling functions in the market, italy and spain demonstrating strength being demonstrated today we see optimism with gains of more than 2% on the spanish stock market by sectors, here is how they are trading out. they've been up all morning.

now gains up 3.7%. that is a definitive bounce that was hit by some concerns of the dividends being held back by u.s. peers you can see recovery taking place. insurance stocks other parts to the market. weaker and health care only just triding positive. apple is shutting down an additional 30 stores including outlets in alabama and california mcdonalds is pausing the dine-in reopening plan for three weeks >> officials with clarity on the plan for interest rates and purchases according to minutes

from the june meeting. >> minutes show in mid-june they were already concerned about a possibility of a renewed round of infections like we were seeing and concerned they would have to write more stimulus to the economy. in the minutes, they wrote expressing concern about the possibility an early reopening would contribute to an increase of infections. regarding highly regarded monetary and fiscal policy that would likely be needed the fed has 11 programs up and running. but show it is considering three additional actions forward guidance, keeping rates low until certain targets hit. asset purchases. yield curve caps pegging yields of selected

treasury maturities. minutes made clear there was not consensus and that seemed to be unlikely some forward of new forward guidance does seem unlikely as the central bank continues with unprecedented support in the troubled u.s. economy. the italian unemployment data to look at given the depth of the covid-19 crisis especially in the industrial north. the jobless rate in may with some of those lockdown measures at 7.8%. worse than 7.7% in april that has been revised to 6.6% higher also worth noting we've seen some demographics hit harder than others.

with job seekers between 15 to 20 years that rose to 23.5 from 21.5 let's push on to the u.s. picture. the private sector added 2.4 million jobs in june with small buzz reporting the biggest tick in jobs but showing 14.3 fewer than before the pandemic. the u.s. is expected to add 3 million new jobs rising hopes that the largest economy might be showing hopes of the economy average hourly earnings forecast a dip by 0.7%. the head of usual on friday

joining us chief economist in the markets closely watching lumpy on the jobs front what are you hoping for and what do you think the markets are hoping for >> they might do a little better the consensus is about 3 million. it might be as much as four. it may be a downward move from may. things aren't all that great curious because of the holiday, that would be the same as the weekly job numbers those are more up to date than the payroll survey from a couple of weeks ago we may be on the verge of jobless claims that may have gone back up again resuming

control across the south and west the snap shot might be okay. might be better than consensus >> some of the reclosures we've had were not taken in because they were compiled earlier in the month. >> that's right. it comes out at the beginning of the month after the reference month. the reason they do that because the survey is taken quite early. these numbers are three weeks out of date. the weekly jobless numbers are only a few days out of date. we get real time data from a couple of states pennsylvania and wisconsin produce daily numbers. they are now actually going up it does seem this reclosing is taking people out of jobs that maybe they've just been hired

to i'm guessing some people are being let go for the second time you won't see those in the june numbers today. >> and widening the impact of covid-19 and sectors hard hit from restaurants and travel and tourism. now the demand story coming into the mix that many companies thought they were immune to this are saying that demand hit workers. what do you make of that second wave >> as well as that story, you've got the idea the first people that were let go were the customer people. the bar staff and restaurant workers and retail now we are seeing company losses on the way up. in supply chains as well they are not visible everybody can see when a bar or

store closes i think that's part of the explanation why these numbers have been so stubborn. we are still running 1.5 million a week after that last skrash, the first week was 665,000 we are at 100 million a week and this will go up. this count can't be bars and restaurants because they were let go a long time ago >> the weak data they think is good news. the market has come a long way on the stimulus. what do you think investors should think about here about further stimulus do you think there is more coming in 2020 >> absolutely. we just heard from steve there about the fed. i agree. there is more forward guidance coming soon. the house passed the bill.

the senate responded by saying we don't want to do anything that view has changed. senate leaders yesterday were talking clearly about the idea that the return from the july 4 recess, they will get to work and hope to pass a bill before the end of the month at the end of july, that that was granted the end of the last package would expire those would expire and see a huge hit to their incomes overnight. the recovery seen in retail sales would go backwards that would be very helpful to get us through the second wave and into the fall. it is very uncertain to take this away would be very

dangerous. >> the $600, they had barely spent it i take your point if they roll off, what happens if they don't have that income there has been a big debate between those twho have jobs and don't. that said, we have seen so many salary cuts across the board in recent weeks in upper level management what does that do to consumer spending >> this is a huge problem. right now, it is being surprised in the data. the drop has been more than upset as part of the cares act the stimulus payments are over enhanced unemployment benefits will be announced from july. that will be exposed due to the

drop in payroll and places where wages are cut. that drop would be where they are spending bare in mind, these big rebounds driven by consumption so getting the economy back on its feet at the end of the year, if that doesn't happen, we are looking at a much bigger hole. we start to look at the danger that people get detached and never come back. that's real disastrous i'm hopeful we will get a package by the end of july >> getting to the first half that was stunning. the clawing back of those losses what do you think lies ahead from here? there is a debate of how hard

the economy had been hit whether you see a broadening out of stock trades where we reinforce the debt what is important for investors from here? >> we have a really big battle going on between the progress of the virus, the progress of the vaccine. progress from the fed and the government you are always told, don't fight the fed. now if you are fighting the fed, you are also fighting the federal government you are also fighting the news on the vaccine which we saw from pfizer yesterday we should get results from the stage three trial as soon as september. we are in for a rocky patch between now and then by september, i suspect we'll get positive views at that point, given a huge

amount of stimulus and expansion from the fed, it is difficult to see markets going down i'm reluctant to see short of equities where the vaccine is effective and we are all going to be driven by next year. the federal government is spending money freely. the virus could get worse. hospitalizations are rocketing south and west i think we'll see more states with restrictions. i think we'll see more high-profile companies new york city delaying the plan to allow indoor dining it could be rough for a while. come the fall, i'm really bullish. >> i appreciate those calls. perhaps that vaccine will be the shot in the arm the markets are

looking for. let's take a quick look at the asian market close the shanghai composite closing up not quite keeping pace with those chinese markets. the clear leg up is the japanese market u.s. house of representatives has voted to extend chinese businesses. washington reverted hong kong's special state tuesday which recommends harsh penalties for a wide range of activities calling it an affront to all nations. british prime minister ramped up his criticism and says

this goes against the enactment between britain and china. >> constitutes a clear and serious breach of the joint declaration. it violates hong kong's high degree of autonomy and is in direct conflict with hong kong's basic law and threatens the freedoms and rights protected. we make clear that if china continued down this path, we will create a new route for those with british state tuesday a new path with the ability to live and work in the uk and apply for citizenship. that is precisely what we will continue to do >> republican senator rubio is working on a bill that would prevent some chinese companies from accessing american capital

markets. calling china's quote exploitation of markets as a risk tensions have risen amid the coronavirus pandemic coming up on the show, german police raid wirecard's munich headquarters as investigation widens just over a year ago, i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars of credit card debt. they helped me consolidate all of that into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪

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ab foods is encouraged by reopened stores. after a fall for like for like sales in the last couple of weeks. you can see they reopened all 153 english stores on the 15th of june having shut down all locations in march outlets in the middle of big cities suffering from lower foot fall and lack of tourism the british government is reportedly going to end quarantine rules for visitors from 75 countries.

lifting the ban including all eu states, british territories, australia and new zealand. the government has yet to respond for cnbc's request for comment. ryanair has reported a 97% dip in passenger travel in june as they continue to face weak demand the carrier added a little more than 2,800 flights during the period police have raided the wirecard munich headquarters and other offices in germany and austria as they widen investigation into suspected fraud, market manipulation and falsified accounts the head of germany's financial watch dog bafin has continued

investigation. a raid suggests they are gathering evidence what do you think they are looking for this time around they are probably looking into the road this action will be playing. it is an interesting accounting structure. wire card bank where investigators most currently are is not part of the insolvency access with cash just going away the bank has to liquidate as well they should have accounts for the third party business that's crucial here lies the fraud. nobody knows how much of that third-party business were

existing or whether there was some round tripping as they call it to inflate revenues between the other parts of asia. this is what the prosecutors are looking at most likely they are searching for evidence at the highest management level and ceo have all colluded to make that happen clearly, this is a big question mark here. who did know about everything because someone must be in the know inside wire card. that system had been in place for years. looking at what we are hearing from ernst at young. prosecutors had been a bit late to start that. we had that debate loud in germany how to increase or enfence our regulation of

fintech and protect that such fraud can happen in the future most likely would lead to an empowerment of bafin, the financial watch dog. we don't know the plans so far >> hope you you are taking notes and begin writing a book ruling out additional job cuts at the british insurer for now. the outbreak in the insurance sector hasn't been significant and said a vaccine would stabilize the economy. >> we see clearly a deep hit to the gdp in 2020 with a small recovery in 2021 but probably not until 2022 getting back to where we were in absolute gdp terms. i'm not sure what letter that is i think we are slightly more cautious but let's see, there is

a lot of uncertainty the outlook would be pivotal in the shape of that recovery we don't know that today >> on the job side, we did have a reduction in hate count last year that put us pretty close to where we wanted to be. we had reduced head count. business is open for business. >> saying the u.s. is still engaged in global talks contradicting the decision that washington had pulled back from the talks. addressing the delegates, pointing to the presence of the u.s. delegation saying participation was evidence that washington remained committed despite the request for a pause. >> speaking to cnbc, irish commissioner struck an optimistic tone over the future of the digital tax negotiations.

>> they had a similar view to us in relation to digital taxation and what concerns about what that could cause in terms of response from other countries. the effect it might have in innovation and research in europe this goes back to my point that it is the case at the moment that our colleagues in america have decided not to engage for now in the oacd process. i believe as we move through the year and look forward to global and national economies i do believe it will be possible to make progress on this issue >> the merger of two canadian listed rivals. we'll speak to the ceo next.

welcome to "street signs." i'm karen tso. european equities follow u.s. and asia higher on vaccine hopes

and jobs forecast as u.s. expects to see 3 million added to payroll in june apple and mcdonalds review lockdown easing measures while new cases spike by nearly 50,000 people across the country. officers in germany and france raided wirecard as a probe. tesla overtakes toyota as the largest automaker by market cap as shares of the automaker continue to rally. we are seeing a lot of positives on vaccine trial and pfizer have yielded encouraging signs. many stages ahead after that

the markets bouncing along on its homes that perhaps there might be some end in sight there might be on the boards for the uk it eclipse again by the french market and german stocks that continued to rally clearly the outperformance of the call we saw weakness during one point in the session konl trafts up less than a half a percent clearly relative to the trade, we are counting down to a whole set of reports from jobs on initial claims versus the nonfarm payroll report usually brought out on friday but brought forward due to the july

4 holiday. we've had huge volatilities in numbers where we saw a shift of jobs lost and jobs added and what it means in terms of the stimulus with a strong jobs report this time around. we might expect a vil more volatility today gold has been a stronger trade. this morning at 1,770. a little selling in silver, palladium and aluminum in the meantime, endeavor mining has closes the acquisition of semafo around 1 million ounces produced a year the ceo of endeavor mining

corporation. clearly a lot of work has gone into creating this mining giant. tell us about the size of the new entity and what you you are hoping to achieve. >> thank you it is about putting together two strong producers in west africa. endeavor mining is now the largest gold producer in africa and we believe there is more to come in this region, which is probably one of the most interesting in terms of gold discovery. this will bring the combined group to around million ounce production market cap will be around 4 billion canadian it is attractive as we continue to grow. >> coming into the crisis, there was still appetite for gold. a lot of defenses were inclined

to more as et. looking at that gold price around 1,700 what does that trade mean for your organization? >> we are coming back from a period where gold price was around 1,800 and then down to 1,000. the good producers have been operating in the environment and an opportunity to build for the mines. it has been the right time for us getting a strong gold price we are now generating strong rule in the three quarters where we generate 3 million of cash in

terms of good assets in terms of cash flow. >> you know a lot about m&a sector what do you think lies ahead for the sector do you expect more consolidation? >> we see a lot of specialized funds have been rolled out or disappearing if we want to be attractive in our sector those look for oversized companies and in terms of governance and ability to generate strong returns like in any other

industries. >> i think , you will continue o see that strong sector >> with the negative conversation about where you think the gold price might be trading from here and where you see that pushing higher and the argument that gold doesn't offer a yield at this point and has a place in the portfolio do you think it can trade much higher from these current levels >> sure. i think at the end, it is all about what's the value of other currencies we see with all the trillions which are invested to try to cope with the covid-19 crisis, this will have the impact of weakening the value of currencies with negative interest yield everywhere we see more and more appetite for gold. it is in the interest of precious metal companies being able to create dividends so that on top of investing in gold,

we'll attract people interested in on deleverage of gold activity but also in the yield that those people can buy in the interest rate negative environment. the gold will continue to be attractive over the next few years. > >> i want to ask you about covid-19 what does this mean operationally on the mining site as you try to protect those workers? >> true. that has been our key subject over the last three months in particular at the beginning, what has been impressive, i would say, the way the west after can countries has been reacting to this in particular by closing down very, very early on. midmarch, schools, borders, air transport, in order to ensure covid-19 wouldn't spread into their countries.

the results have been extremely good when put compare the current results in west africa compared to europe, north america or latin america that means on our side as minors, we have to adapt ourselves and send across some expatiates who have been on our teams three or four months without going back as all flights and borders were closed. we are grateful for all the teams who have been working hard throughout this period we've been maintaining quarantine to make sure we don't provide cases on our site or to the communities. we had six cases just at the beginning but since mid-april, we don't have any cases in our operations nor in the vicinities of the communities where we are operating. >> i want to ask you about one big story that rocked the gold

industry this week around the chinese fraud specifically that they secured 20 billion and offered up to 83 tons of gold bars which turned out to be gilded copper. how damaging do you think this is for the industry? >> it just shows you need to have a tracer on where the gold is produced to ensure the quality of what is sold this is why we are reaching all the features to ensure the way this is produced in terms of esg that this has been produced in a proper way

for companies like us, this has been well practice by higher standards. thank you for your time. shares of general motors and fiat chrysler fell on news of car prices down 30%. forcing consumers to stay at home and dealers and factories to stay closed bmw down 39% daimler stating they have to make pay cuts. the moves are needed to shore up the german carmakers decision and long-term investments. tesla has overtaken toyota as the largest carmaker valued

at $205 billion. the company has struggled to consistently make a profit and it has only produced around 500,000 cars this year stock is valued at 16 times earnings tesla is expected to announce second quarter numbers at the bell today the ceo congratulated employees in an email saying he is so proud to work with them. tweeting as a side project, tesla will be building rna microfactories for use by vaccine makers making solving diseases a software problem, which sounds encouraging. >> we are taking core respend ans and you can tweet

me @cnbckaren. pfizer hopes to scale up trials what thamet ans for the vaccine is coming up after the break od n literally save lives. but we need to act fast. please donate plasma now. please donate. donate. donate. donate now. you fought for your life. now let's take the fight to covid-19. go to the fight is in us dot org to find out how to donate. this crisis is going to be over know exactly when and we don't know exactly when the stock market will reach its bottom, we've got to be prepared for this to last a long time. if you assume that you're out of work for nine months but you end up only being out of work for three, well that's great. but if you think you're going to be furloughed for three months and it lasts for nine, well that'll be emotionally devastating.

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the united states has crossed another grim milestone with around 50,000 new coronavirus cases. arizona, texas and california all set new records. in california, nearly 10,000 people tested positive the governor has ordered indoor businesses to close across 19 counties u.s. president trump has shifted his stance now saying he's, quote, all for them. the president explained why he usually doesn't wear one in public >> i'm all for masks if i were in a group of people, i would wear one >> you would wear one? >> well i have people have seen me. usually i'm not in that position everyone is tested because i'm the president, they

get tested before they see me. if i were in a situation with people, absolutely >> mike pence visited arizona encouraging people to wear face coverings. >> the rising cases here in arizona is why i'm here. why we brought the white house coronavirus task force here. i'm a real believer as president trump is in sitting down with the people leading the effort. i was in texas over the weekend. i'll be in florida tomorrow. we are absolutely termed to make sure arizona and those health care workers have the resources and supplies they need to render the care any one of us would want a member of the family to have >> our colleagues speaking in an exclusive interview at 15:30 cet. eu officials are in talks with gilead to secure enough

doses of remdesivir out of the states after the u.s. announced it had purchased 500,000 courses of the drug which represents 100% of july production, 90% of that in august and september which incall trials have found it reduces hospital stays by around four days shares of pfizer spike higher after their vaccine yielded positive results causing fevers at higher doses. the vaccine created antibodies against the virus including some that appear to disable it. coming out of the study and not yet peer reviewed. they hope larger studies this summer as they test four different versions of the vaccine. joining us now, head of life sciences research at shaw capital. thank you for being with us. clearly market investors hope

one of the vaccines will finally work >> thank you for having me on the show the data is early. this is neutralizing antibodies that bind the virus and can have an affect. what we need to see now is comparing this to levels of antibodies we are seeing in recovered patients we still need to see if this is a high enough antibody production >> some members at mit offered up that last year, they found one in three vaccines in later stage of testing clearly a numbers game if we have enough going that one of them might work? is. >> i think this pandemic has thrown up an opportunity to see

what happens when we collaborate, which is what we are seeing we have to be very careful that we are not too hasty in rushing the science. the vaccines are given to help we are not giving the drug to someone already sick this is given to large numbers of healthy individuals it is risk mitigating to make sure it is safe for the general good >> that is true. the treatment would still be in the mix. the vaccine would mitigate and prove p. when he we talk about the vaccine improving market, you talk about the vaccine and being 100% protected >> i think that's key. this first generation is unlikely to prevent infection but to reduce the burden of the

disease but not prevention from all of the issues around the virus. not a panacea. and unlikely the first vaccine across the line would be unlikely to dwell the panic. >> what we are hearing from yesterday is that they could engineer up to make 100 million doses by the end of this year and another by the end of 2021 it sounds like there still might be a fight for those vaccines. >> there are important issues there. first, the coronavirus vaccine is based on mrna and the ability to ramp up production. this has never been done mrna is still quite new in terms of application to human disease. we have to see how quickly we

can scale that this speaks to what we are seeing with remdesivir and stockpiling in the u.s the idea that those countries can afford to move forward it raises issues about equitable access multinational nonprofits have put in place infrastructure and frameworks to ease this burden it is something we need to take spot on. >> positive to stock prices in various industries such as groceries. what do you think it means for the fortunes for the parent company and others that might have success and in terms of the stock action in these companies.

>> we have to understand the stockpiling is what makes these commercial endeavors some 60% will be from government stockpiling. it is a necessary part of that eco system this is a health emergency and situation where, let's face it, if we resolve the situation into developed markets and there is still virus running rampant, this is difficult for all of us. we have to be aware of how we distribute at the beginning of this situation >> one of the big issues was a push back politically around price increase we saw that through the course of last year we thought that might be on the agenda many of these companies have proven how crucial they are. has an argument at all

disappeared around price gouging? >> it has been removed from the front lines and in focus remdesivir was priced for $2,340 per course, it does change the way we see the pricing allowing access at an affordable price. the u.s. has to grapple with the fact that economically it is not viable to continue with drugs prices the way they are. >> we've seen so many deals in recent years what has jumped out is collaboration. oxford has been one of the key ones involved. do you think we'll see further collaboration? >> i'm hopeful that one of the

enduring consequences is the effect of seeing the collaboration when you think about that this is a virus we knew nothing about nine months ago and now we are looking at having a vaccine in the not too distance future. in terms of m&a, i think the megamergers have not proven to do well. innovation still comes from smaller companies. when you look at gilead and what they are doing behind covid-19 and cancer and other deals happening and against this back drop it doesn't go away it's a secular theme in health care >> fascinating conversation. i appreciate your in sight thank you for joining us the head of life sciences research at shaw capital

a quick look at pharma sector. a little disappointing one of the lagardes in the european space with a splash of green. the vaccine user, astrazeneca there and roche and others moving up today. almost two hours of trade so far. 2% still on the dax, italian and spanish stocks as we count down to the u.s. market had also been indicated firmer that weekend session will be indicated by the jobs report due out today. thank you for watching "street signs. "worldwide exchange" is coming up next.

it is 5:00 at cnbc here is your top "five@5." rolls on with new all-time highs. we have a stat that will blow your mind. will stocks get fuel from the june jobs number well break down what america can expect states taking new action over the coronavirus with a continued surge in some parts of the country as the president suggests the