is gone, but i feel bad that she's lost a son. and i feel bad that michael's lost a mother. and they're not gonna get that back. and no amount of money is gonna get that back for them. good morning welcome to "street signs." i'm julianna tatelbaum with joumanna bercetche these are the headlines. lufthansa aims to after 100 summer desk ty any destinations u.s. futures rise ahead of the first trading day of may and the next batch of earnings and

data and janet yellen looks to downplay prioce pressure. >> these are a stark investment we need to make our economy productive and fair. credit suisse made $17.5 million in fees from archegos last year before the office collapsed causing $5.5 billion and india records the highest daily coronavirus death toll and hospitals are overwhelmed with new cases and 2% of the population fully vaccinated good morning welcome to "street signs." i'm going to bring you the final

pmi numbers from eurozone. we had the flash readings a week ago which came out on the top side of expectation. the final manufacturing april pmi numbers at 62.9. versus the estimate of 63.3. slightly lower than the flashes estimate pointing to a fast recovery. above the 60 pmark that is the ipg thing we have bn talking about the last couple months particularly led by the german power house today, the numbers are focused really on the manufacturing numbers. coming in be he low the flash, but very strong. julianna let's get a check on markets. the first day of trade for the month of may we are seeing a fair amount of green on the board

uk is closed for may bank holiday. fotse 100 not on the board dax is trading 8% higher french market is 6.6%. swiss and italian and spanish markets trading in the green today. this comes after a relatively downbeat week last week. stoxx 600 fell it's third positive month in a row overall. a strong run for european equity overall. a big week in europe bank of england on thursday. it will be interesting to see how they talk about the improving data the uk data has been strong of late as well we will see what they say on that front also, another round of bank earnings and uk politics with a notable week

plenty for investors in the days ahead. one stock in focus for you today. luft lufthansa. shares are up 2.5% lufthansa is trading higher after the german airline announced to fly to 100 destinations this summer they are calling for digital prove of vaccinations to replace quarantine measures. positive news for the summer season warren buffett's berkshire hathaway bouncing back from the loss last year in the first quarter thanks to the market rally. the business also saw cash piles surge to $145 billion at the end of 2020 as the pace of buybacks slowed in a virtual shareholder address, he defended the company decision to back away from

airlines last year >> imagine if berkshire was the 10% holder it would be like -- they might have very well had a different result if they had a very, very rich shareholder that owned 8% or 9%. they didn't have that when they went in. you might not have gotten the same result. in fact, i would think you probably wouldn't. i can see the headlines now. you have seen the headlines on some companies of $100 million and really didn't need it and some gave it back. most of them gave it back. you were looking at probably a different result than if we kept our stock. >> buffett called the u.s. economy red hot. warning that berkshire may have

an impact in inflation >> it is substantial we're raising prices people are raising prices to us. it's being accepted. it is not -- if we get -- well, you know, take home building the cost of nine home builders in addition to the manufactured housing and operation which is the largest in the country we do a lot of housing costs are up, up, up steel costs. you know, every day, they're g going up u.s. treasury secretary janet yellen is downplaying the biden proposals are overheat the economy.

>> the spending that's been proposed in the jobs plan in the families plan comes into effect once the economy is back on track and the spending from the rescue plan that's coming into force and helping us get on track after that stimulus is spent and it's spread out evenly over 8 to 10 years the boost to demand is moderate. we're proposing that the spending be paid for and i don't believe inflation will be an issue. if it becomes an issue, we have tools to address it. these are a stark investment that we need to make our economy productive and fair. >> that was u.s. treasury secretary janet yellen talking

about the stimulus which will not be inflationary. let's get to pete doherty. thank you for joining us on "street signs" today so much talk about reflection and the u.s. economy overheating. if you look at the performance of fixed income yields in april, they rallied why is that do you think >> good morning. thank you for having me on the show good question. i think the rally in april is in the bond market which is a reflection of the poor first quarter. the worst since 1980 the major high grade bond industry they had a torrid q1 you had the moderation of the inflation expectation and the fear of the markets which is a possibility. >> and where do you see the catalyst for the rates coming

from at this point, we had the big announcements by the u.s. government we had package after package, some funded by higher tax rates and some not we heard about the fed being accommodating and the market is rampant with talk of higher cpi rates to come. it seems as all of the factors that could tip yields higher are already widely talked about. >> there is a lot of data to come and a lot of different behaviors that could drive yields higher. clearly low yields punish savers for most of the events or circumstances that are painted one way, there is always a flip side in terms of yields, they have the very large support from the bank of japan and ecb and the

fed and treasury buying large amounts of debt. qe is starting to taper this year that will lead to yield curve tapering with a bond forming away that gives banks and insurance companies and investors more chance to earn yield you have the combination of short-term inflationary pressures as the economies unwind and some of the large personal savings that accumulated start to get used in the travel and leisure and hospitality. that will lead to price pressure and you see the chips and the building blocks of the modern economy is suffering from the supply chain issues. that could drive prices up and warren buffett talking about

house building and steel at record prices and copper there's a lot going on there it wouldn't surprise me to see some inflation be a bit more consistent imagine yields going a bit higher i will finish by saying these are things which the central bank has been asking for for years and driving higher infl inflation. powell talking about 2% average inflation expectation built in we're not there yet. >> peter, you talk about the support from the ecb and potential for yields to rise in europe it sounds like as well as the u.s. and around the world. europe had been looking bad with other advanced economies with the vaccination rollout and reopening. in recent weeks, things improved and vaccinations picked up do you think the market could be under appreciatappreciative

>> it is possible. i think if you look at the comments from the senior figures, they are very determined to keep their yields down for a long time and at low levels which they have done with more vigor and success than anybody else partly because of the back drop in the economies you had the highest number of negative coupon bonds from corporate in the eurozone. there is that real appetite to keep the bond price down i think most people would say that that experiment has run its course it is hard to see how another long extended period of zero or negative yields. the institution level will help the economy or the people who need it most therefore, the u.s. led the way with the direct action bypassing

the financial system and trickle down effect. i think you see the european economies unwinding in terms of pandemic effects i think the chance for euro to go higher is there >> peter, you made an interesting comparison in your notes. you liken banks to utilities in they have a lot of capital, but offer low returns. it sounds like from the shareholder view or equity investor, that is not a proper position. >> a couple of things. i would say that it is true. immense amounts of capital in the system around the world with the increased regulation the amount of quality capital has gone up between 2% and 5% the system as yields go higher, the

multiplier effect will come in we he spend a lot of time investing in the debt and they are rock solid those securities are delivering a higher return over five years than the equity. you had a lower risk position to cover the structure and more return you know, it will continue for a while. >> really interesting point. we're going to leave it there, peter. thank you for joining us on "street signs" today for our cnbc subscribers, head online for a look at berkshire hathaways bigger bets. we started with the comments that he made over the weekend. you can check out cnbc turnings to stocks in focus, shares of kpn trading lower

after a turndown of the takeover coverage from stonepeak. shares are down 3.8% this morning. siemens shares are higher after the full-year outlook was raised after the rapid covid tests. german tech firm forecasts sales growth of 17%. ceo bernd monthaugh talked about the business >> next to pre-pandemic levels secondly, we can benefit from the specialty mind and when it comes to the part of the business which is not prior related with investment positions and imaging equipmentm

all of the growth is without contribution of the u.s. we see the u.s. market coming back in which is a strong order growth which gives us confidence for the future coming up on the show, commodities may be set for another super cycle. we'll have more details after the break.

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welcome back to "street signs. commodities. copper in particular up for another super cycle. beside me on the wall is a percentage change year to date copper is 25% higher and had a significant run recently the industrial metal traded above $10,000 for the first time since 2011 the past week has seen big gains for agriculture commodities like

soybeans and corn. this is year to date for corn up 54%. to talk about commodities in detail is max. max, great to have you with us i want to talk about copper. it crossed the $10,000 mark. it had an enormous run recently. why now has copper gained and surged in this way >> what a couple of weeks for the copper market. it is a combination of two things you have a normal large credit easing in china which is rebounding in chinese activity across the board over the last six-to-nine months that is in line with prior credit and demand of the easing cycles of the past decade. what made this cycle super so

far has been a very metal intensive consumption particularly in the u.s. and europe where you see manufacturing pmi at 35-year highs and in europe, all-time highs. that has been because of stimulus and covid -- covid-driven preference shift in behavior we are consuming dramatically more metals. the metals intensive gdp has gone up. >> you talk about the commodity space. the question is if we see run-up in price, will we see a run-up in supply and more capacity come on the market? what is the outlook with copper? is that going to prompt more capacity to come on?

if so, what is the timeframe >> great question. it is very unusual that copper has refined inventory. it is a market which sets the price. this is because you get a quick response to higher demand from scrap supply this time, it is only the third time and we are in the middle of it right now i think we are likely to get a refined deficit in the copper market only two times prior to this was in 2011 and 2003 and 2004. scrap usually responds the demand has been so rapid and large that it is unlikely scrap will respond quick enough. over the medium-to-longer term,

we are expecting a supply and larger scrap supply response right here and right now, copper is in the biggest gap with come per consumption and mine supply that we have seen in history >> that is really interesting. reflective of the environment that other industries have found themselves in like semiconductors similar story post-pandemic. the supply hasn't been able to keep up. i just want to take you to another point. you mentioned that one of the reasons why copper has done well is that the response from policymakers is heavy. you look at the pmi numbers in europe which is strong strong response in china and u.s. as well home building, et cetera as we move to the next phase of the recovery, more and more economies will reopen. we will see a bigger boost in

services in the second half of the year what does that do to the copper complex and demand for copper as you said at the dbeginning of te pandemic which was driven by the manufacturing stimulus. >> this is the biggest issue that i speak with regarding clients. this is part of the strength in demand is a one-off. there's no doubt there's been one one-offs that will unwind. people with food insecurities last year and that will unwind what we're finding is the concern for the next six months is overblown the u.s. is the first country to open up.

you have seen a big improvement of services in the u.s instead of that coming at the expense of manufacturing and copper intensive goods consumption, you have seen the manufacturing pmi pick up in the u.s. and along with the index, there is a survey being done for the last 20 years on the home remodelers there is a proxy for the goods consumption. instead of unwinding as we go as we get our haircuts and drive our cars more and move to services-led economy, instead of that unwinding, it is another leg higher from the all-time highs to fresh all-time highs. more than 50% or 60% of levels pre-covid. it looks like a lot of pent-up

demand >> right you also can't talk about the price of copper without talking about what china is doing. that is the catalyst as china came in with the strong response in 2020. the language has changed from policymakers in the last couple weeks. there is talk of monetary policy tightening and cracking down on industries to prevent overheating, particularly in the pr property market. what is that >> this is the other big concern for clients that china will tighten. that will result in a slowing for even negative copper consumption growth i would say we have found for the three prior full credit cycles we have in the past over the last 12 years, three credit cycles what we found is china as the credit impulse goes down and goes severely negative and stays

negative, throughout the entire periods, the level of copper consumption goes up. it continues to rise growth might slow, but the level goes up. the pressure for supply and need for supply continues to rise through chinese credit cycles. we don't expect this one to be different. the reason is that the tightening is strength it is into strong industrial profits and strong global manufacturing and increasingly services and pmis and really it is correlated with strength and credit tightening. >> max, plenty of food for thought. great to hear your thoughts on copper and the commodities max layton with citi we are keeping our eye on fixed income this morning. we got the final pmi for the month of april the german 10-year has risen to

minus 1.76%. up two basis points on the day you you have a look at the german yield curve higher across the board. one question is if we see the data to continue to improve, what this means for yields and if it continues to march higher. joumanna all those questions of the ecb program. we'll have that conversation for another day. coming up on "street signs." credit suisse with losses related to the fund amounting to billions we speak to vincent kaufmann after the break.

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♪ ♪ just like that ♪ ♪ welcome back to "street signs. i'm joumanna bercetche along with tottenhamjulianna tatelbaum these are your headlines lufthansa aims to offer over 100

summer destinations as they call for fewer restrictions for vaccinated passengers. u.s. futures point to a higher open as investors eye the next batch of earnings and data. warren buffett warns of inflation. >> i don't know exactly how it shows up in different price index. there's more inflation credit situation made $17.5 million in fees from archegos last year before the office collapsed causing billions of dollars in losses. and india records it's highly daily coronavirus death toll while hospitals continue to be overwhelmed with new cases and only 2% of the population fully vaccinated

all right. european markets are trading higher this morning. first trading day of the month of may ftse 100 not up here uk is closed for may bank holiday. we are seeing gains. the main benchmark and stock market fell. for the month of april, it was a decent one the third positive month in a row. we are looking forward to more data coming through. bank of england on thursday. british politics on friday, we close out with the payroll report let's look at currencies this morning the euro trading firmly. up 0.15% we got the manufacturing pmi coming in confirming the manufacturing sector in europe is doing quite well in terms of the rebound and recovery trading at 120 the dollar trading against the yen. here in the uk, the pound is

trading higher than the dollar up to 1.38 the pound is one asset you want to keep an eye on this week. turning to the u.s we have a decent gain on the board here not as strong as we were looking at earlier this morning. still dow jones industrial average set to up 180 points higher nasdaq up 30 points. s&p 500 with a positive start. last week, we saw the dow fall back the s&p flat and the nasdaq slipping joumanna let's turn to the story we have been watching credit suisse. the bank made $17.5 million in fees from archegos capital last year according to the financial times. the family office classed in march forcing the swiss bank to announce a $17.5 million

exposure the swiss bank sailed from one crisis to another with the spying scandal at the bank leading to the exit last year. and they got caught up in a wirecard scandal and took a hit of york capital management the billions of losses this year with archegos capital. former lloyds bank chairman started last week. a and this is what we have learned. >> it is time to take the company to the next level. we had a very difficult first quarter in terms of the two in incidents. at the same time, the

operational performance in the first quarter proved our strategy was right and on the right track. >> so, is that a no you did not tender your resignation? >> absolutely no >> i'm happy to say that vincent kaufmann joins us on the show. sir, thank you for taking the time to speak with us. as background, the ethos foundation represents 220 pension funds that own 3% to 5% of credit suisse shares. you published a list of shares on friday of the top priorities to get the books in order, so to speak. clearly a priority needs to be a refocus again on risk governance my question to you is whether you think the bank can do that, but also keep its profitability in tact? in other words, can they cut down on the higher margin businesses, but also mark to keep equity return up in future

years? >> that is a trick question. that is the issue for the board of directors for years in terms of the trading activities. we believe that the revenues were too volatile. very heavy in terms of capital and risk asset and also i would say costly in terms of traders' compensation that's why we welcome a new chair to the board it is the priority which is to review the strategy and, of course, risk management. we believe it is time to make some important change in the strategy to restore confidence >> you mentioned compensation there. i have spoken to many people in the industry over the last couple weeks the biggest concern of credit suisse going forward is the ability to retain talent especially as you talk about the

likelihood that compensation is going to get cut there are lots of banks out there which are profitable mainly the u.s. banks as we saw in the first quarter will it be difficult for credit suisse to retain the talent given the share price? >> with the current strategy and share price evolution is something is going wrong i think it is worse looking at the opportunity to maintain those activities again, certainly we might lose some of the talent if we start cutting the bonuses. then, if we are to depend on those people, we are on the wrong strategy that's why we're in a good business which actually is suffering from all of those problems which come from some of the division and some of the

people that's why i think it is really the top priority to review these. it is not that worried on our view i mean, when you have such losses, it is normal bonuses are taken off. at least withdrawn and deferred and subject to additional clawback measures. that is natural and expectation of shareholders. >> vincent, we have seen a number of issues with what credit suisse faced. do you want to see more radical change are their particular individuals you like to see change over the course of the next few you mo months >> it is not directly our call we are here to elect the board

of directors the board was reshuffled over the past years with the new chair, we have somebody who is more objective to look at the choice made by the former chair in particular of where we have been critical with the confidence of the former chairman which was distrust for a long time changing view and strategy and lack of long-term view so that's why i'm confident and happy that the board and new members will have the required objectives to review the key leaders in the management team i don't want to make any pronouncements i know we have a board which is more independent to the decisions and that will help to take the good decisions in the future hopefully. >> when it comes to strategic decisions moving forward, the

board is moving strategically right now. i hhave seen a few issues where the board wants to go. anything from reducing capital to investment bank and wealth management and selling other parts of the business to maybe looking at a merger with another bank where would you and the shareholders you represent like to see credit suisse going >> from our view, we have a very good credit suisse bank which is profitable and a lot of stability and plays an important role for the swiss economy from our perspective, we want this business to remain independent. that's from our view and i know a lot of members and clients from asset management division and credit suisse bank switzerland and happy about the job they're doing.

that's really the thing we want to prespreserve maybe mr. horta should reconsider the swiss bank. that would leave some possibility for the other division the independence of the credit suisse, switzerland, is key. >> you mentioned mr. horta coming in as the new chairman. you are placing hope in what he can achieve to turn around the bank his background is retail and mr. gottstein's background is investment what will that play out? >> i think it is a diverse view. that is positive when you have the constructive dialogue. all of the board members with a

strong background. i think the decision has and this person has to be taken at board level. of course, discussed with management i think they will have a very animated exchange of view. i think now credit suisse has all of the cards in their hand to make a good decision. a lot of work has to be done also on the risk management side we saw a lot of weaknesses and we expect the board to know why it didn't play out before any strategy call decision, we need to know what went wrong at least with archegos and risk management why the red flag was not observed and how we could lose so much money. it is 10% of the shareholder

equity we lost with archegos that's huge. that's why, i think, first and mostly the decision is on the risk management side >> certainly that is a huge impact joumanna asked about the challenge of retaining top talent as credit suisse goes through the changes. what about retaining top clients? how do you think about that risk as clients look to move business to other banks in the wake of the series of scandals >> that's a key risk the reputation of the bank is a ca key asset. that is why they have to be transparent with the work they are doing now. everything ha s to be done to restore confidence employees and clients are suffering. that is the most important priority of course, the risk is here

because it is not the only scandal credit suisse faced over the years. that's why the change is required >> all right vincent, thank you for taking the time vincent kaufmann, ceo of ethos foundation. still ahead, daily coronavirus cases in india hit a new record as the country struggles with another will hav after the break.

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indian prime minister narendra modi lost a key battleground state over the weekend. modi has been criticized for focusing on the election campaign instead of the pa pandemic the indian vaccine shortage could last for months after the government failed to prepare for the second wave of the pandemic. that is according to the chief

exec executive. severe shortages could last through the summer this as the country reported 400,000 new infections on sunday with multiple cities now under lockdown let's get out to our reporter from mumbai with the latest. >> reporter: thanks for that in just the last 24 hours, you know, india added 368,000 new coronavirus cases. we have been reporting more than 300,000 cases on average at least for the last 12 straight days the fatalities have been rising over 3,000 at least for the past six days in total, india has coronavirus related deaths of 219,000. there are several reports that suggest this number may be under estimating the actual number of deaths caused by coronavirus cases have started rising since

february when india was reporting 12400,000 new infectis on a daily basis also because of large village gatherings and the cases have surged and become one of the highest in the world the world health organization said 1 in 3 new coronavirus cases in the world is coming from india hospitals have been filled to capacity icu beds have been taken up. there is a severe oxygen shortage in parts of the country with hospitals sending out daily s.o.s. calls to the government it is not really a good picture here in india. mumbai is where we are reporting from is seeing the bulk of the case load. highest number of infections by far. there are other hot spots in the country emerging on the vaccination front, india

has only been able to vaccinate 2% of the population the vaccination has been opened up to everyone over the age of 18 international aid has been coming in as well as the variant has been spread to more than 17 countries. to tackle the virus and give breathing space to the health infrastructure, several states across the country have tried to impose lockdown restrictions in almost every state of the country. that has impacted the economic activity as well the central bank is forecast 10.5% gdp. that could be downgraded to 50 basis points as a result >> thank you so much for joining us and bringing us the latest on india. joumanna >> really shocking situation on the ground there in india. the executive director from

unicefwarned overcoming the india crisis will be an issue. aid is key. >> it is worrying for several reasons. one, precursor to what might happen in other countries, particularly africa, with much weaker health care systems it is worrying because the health care system has been overwhelmed. the need for oxygen and therapeutics that we have not seen in the pandemic at this scale. and, third, we find whenever we give the virus a chance to mutate, it begins to mutate. we are worried on a number of levels countries are coming in with help and donations and that makes a big difference unicef and the facility have sent help. it is not enough india is part of our supply

chain. it is both where we source the vaccines and need to get help as a world to india now. >> unicef and w.h.o. and vaccine alliance have revealed the 2030 vaccine plan which aims to save over 15 million lives. you conducted that interview, tanya. talk about the cooperation to help countries that are the worst hit. our report was saying 2% of the indian population has been vaccinated far cry from the levels we are seeing in the developed countries. what more can you tell us about what exactly this international cooperation drive is looking to achieve? >> joumanna, that is right good morning to you. of course, you heard from henrietta fore, the executive director from unicef, calling on the world to help india.

just 2% with vaccines and the problem there is a supply train coming from there as well. unicef is doing everything they can to help the devastating situation there. of course, the whole world needs to come together to help they are launching an initiative because they are worried that routine immunizations could be left behind. this is what she had to say. >> about half of the immunizations and vaccines in the world come through the doors of unicef. so, polio, measles, yellow fever. all of these are vaccines that children need. they are also vaccines that adults need. we are asking for families to come into primary health clinics in their communities and bring their children in and get vaccinated for these childhood diseases and also get a covid

vaccine and we can save 50 million lives. >> is it hard to focus global investment and collaboration to support the goals of the immunization agenda 2030 >> under the lead, there is a call for $23 billion which sounds like an enormous amount really, when you look at global gdp and what is available in the world, it is a small number. it is less than 2% so you realize that as a world, we could afford this if we could get vaccines out to children and to adults in the coming years, we will be a world that would have more equity and fairness and more health across the board. >> tanya, thank you for joining us this morning and bringing us that interview really great to listen >> thank you

we have fresh lines from the european commission on the vaccine. european commission proposing to allow entry to the eu for non-essential reasons. not only for people coming from countries with good epidemiological situations, but also those authorized with the vaccine. paving the way for resumption of foreign travel into the eu looking to keep an eye on the travel stocks here in europe u.s. futures wall street is poised to open green across the board dow jones industrial average at 185 point rise nasdaq and s&p looking at a strong start to trade on the first day of trading for the month of may that is it for the show. i'm julianna tatelbaum joumanna bercetche beside me "worldwide exchange" is coming up next.

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it is 5:00 a.m. at cnbc. here is the top five at 5:00 sell in may? not today. futures kick off the month soaring. warren buffett and out swinging what he said and the health crisis in india glrows worse as the white house considers sending vaccines there. the biden administration kicking off the $2 trillio