he's gonna to pay. narrator: the governor of california has issued a moratorium on executions. merritt will remain on death row at san quentin. he is appealing his case. -- captions by vitac -- good morning welcome to "street signs." i'm julianna tatelbaum these are your headlines burberry shares sink on the departure of the ceo after five years at the helm to join the italian firm. the far right is beaten in french elections president macron's ruling party fails to clinch a single

victory. warning the turnout rate is bad for democracy. >> this is a signal sent to the political leaders and society. we are going through a profound crisis of the local democracy which requires a collective process. the uk joins the crackdown on crypto as they cease all activity by wednesday. and javid is health secretary after hancock resigns in disgrace. pledging to end restrictions across the country >> we are still in the pandemic. i want to see that come to an end as soon as possible. that is my most immediate priority to see we can return to normal as soon as quickly as possible welcome to "street signs."

let's kickoff the show with burberry shares have fallen to the bottom of stoxx 600 and feragamo is trading higher in milan. this comes after the ceo will step down from the helm at the end of the year. in a statement, he will take o over as ceo once he is released from the contract. gobbetti has aimed to expand its handbag business this news rocked markets burberry has plunged this morning. we have huge shares in the price. what do you make of this news

which came as a surprise to investors? >> it is a surprise to inn vest investors. marco is choosing his time effectively and taking on another monumental challenge of rejuvenating feragamo which is focusing on marketing and communication. one could argue that the burberry revival is successful the brand is in a better position than when marco took over this is far from being a runway success and still a lot of work to be done >> it is interesting looking at the title you published this morning. partially successful brand turn around clearly investors are shaken by the news what do you think investors are so concerned about >> i think investors need to know who the next ceo will be

and what the new priorities will be this looks like another strategic reset. you mentioned three ceos in a row being at the helm of burberry over the past three years. it probably prompts the market to sit on the sidelines and wait for more clarity. >> who do you think could be in the running as the next ceo? >> that is a $100 million question there's a lot of talented people in the industry. both within the company and outside of the company burberry remains one of the most prominent brands in the european landscape. i think the board and the chairman will have plenty to choose >> luca, we have spoken many times before about burberry as a

takeover target. it has been speculated for quite some time. despite the fact that marco is at the helm of the brand do you think change could make burberry a more attractive takeout target >> in theory, it could we see the share price today declining. in, you know, reality, i wonder talking about burberry as a potential takeover target for the past 25 years and takeover never materialed the truth is this brand is still spiky. it has appealed geographically it is different and not consistent if you look at the price that its leather goods command, it is behind those of other mega

brands in the leather goods category like gucci or prada there's work to do and a takeover would be confronted with all of that it's a big task for private equity investor. i'm not sure that an industry bidder would necessarily be there. >> luca, what does this mean for feragamo what is the impact for that company? >> ferragamo has a need to reconnect with younger consumers and tend to become more vibrant in its approach to the market. a lot has happened within the footwear category. footwear is a core of ferragamo. we have seen sneakers takeover and ferragamo is elegant

footwear we saw a number of attempts to revive the fortunes of this brand. they were all, let's say, not achieving the mark as a consequence, most of the work is still ahead. i would say all of the work in this case. so marco is taking over quite a difficult and significant relaunch challenge >> luca, just to wrap up, what is the take on the broader luxury sector? do you think investors should put money to work in the sector at this point? >> the sector is clearly appreciated during the most recent months and this could be the understatement of the year it is also true we are witnessing a v-shaped recovery and demanded

consumers, with the exception of japan, are eager to go back to life there is a post-euphoria without the damages of the war, but with accumulated savings. consumers want to go back to life and go back to restaurants and see their friends and travel and they want to look good as they do that so, there's going to be a very strong context for products as well we expect that this could be protracted we saw in the past few weeks retailers in the u.s. especially, anticipating that could be a very strong demand trajectory for the next 12 to 18 months if i look at consensus numbers for 2022, they are quite muted we could see indeed multiples

today look tough, but forecasts are bound to go up this is going to get multiples to normalize down the road so the sector continues to be attractive >> luca, thank you for joining us for the big day for burberry. sticking with the corporate stories. daimler will spin off the truck unit by end of 2021. willem said the plan is on schedule and boost the focus of luxury electric vehicles daimler shares trading lower this morning. elsewhere, volkswagen will stop selling combustion cars by the end of 2035.

vw will stop selling combustion cars in china and also in the u.s., but did not provide a date renault announces a partnership with china this move comes as the french president meets with 100 international ceos to shift operations to the country post brexit. france's far-right party failed to reach consensus on sunday 12 regions were won by center-right or right parties. marine le pen criticized the poor turnout as she turned to the next year's presidential election >> when two french people out of three persist of not going to

vote, especially the young people and the working class is a message that we must look closely at because this civic disaffection is a signal sent to the political leaders and society. we are sdgoing through the profound crisis which requires a reflection process >> charlotte is joining us more with the elections in the region the low voter turnout, charlotte. what is going on in france keeping people from the polls and what does this mean for the upcoming presidential election >> reporter: it seems the younger voters did not vote and the older voters did vote. this seems to favor incumbents when we look at the map, nothing has changed. the left and the right held on to the regions if we look at the region, turn

out is closer to 80% some of the key lessons we saw is the trend we saw in the first round last week. it was a bad result for the far right party marine le pen. she hoped it would be a time to get momentum ahead of the presidential election. macron's party failed to do that win any region they lost ground in other regions. there is thinking if her strategy is working for that party. they tried to normalize that party and rebranding and changing name of the party that's a question whether this is something they carry on with for the presidential election. another trend that was interesting, the center right has held on well a lot of the frontrunners of the center right party won their

seats easily they all won their regions easily the question is the race will would be between these three candidates to be the potential frontrunner and candidate for the center right what we heard last night is he is very much ready to take on the challenge. take a listen. >> from here, from this region, where we know the price of effort and work, it is to you. the silent and forgotten ones i speak to more than ever, there is no fatality politics isn't dead. it can make life better. the region honored me with your confidence i told you the truth i was clear. not hiding any intentions. this gives me the strength to meet all the french people >> reporter: some polls that

came out last night show that actually president macron and marine le pen are the frontrunners in the presidential election despite the good results for the traditional parties of the left or the right, the parties that did badly would be the frontrunners in the race for the presidential election would be macron and le pen. despite the issues from the local election, they are still a one-man band and machine for macron to win his presidential election bid and not a party with ground roots failing to get margin there he will look presidential today. he will unveil investments including a 2 billion euro investment for a factory in

northern france. guests will be with him this morning. the candidate from the center right and potential opponent it looks like the race is very much on, julianna. >> thank you, charlotte. we look forward to your coverage in the lead up to the election. hundreds of police officers had been deployed across beijing across flower arrangements and national flag and fireworks as the country prepares to celebrate 100 years of the communi communist party. this comes after a year of planning and the party faces political challenges at home and abroad sam filed this report from singapore. >> reporter: since the first meeting 100 years ago, the communist party is the driving force to propel the economy. under the ccp, china is one of

the great powers of the 21st century. the second largest economy of the world and largest population on the planet. china's gdp growth soared over the decades particularly after reform in opening up which kicked off the massive economic boom china's share of global gdp last year was 18% behind the u.s. at 24% investments into china total $149 billion it has a manufacturing output of 28.7% compared to u.s. at 16.81% president xi jinping is associated with the chinese dream. that led to a number of key policies in china. including alleviating poverty and tracking down on production. made in china 2025, the

infrastructure plan to link china with the rest of the world. that campaign underscores jinping's ambitions on the world stage. he has bigger goals than that. in space these efforts have accelerated under xi jinping underscoring how far it has come since china could not launch a po potato into space. back to you. coming up on the show, we cross to frankfurt for the euro summit we'll be right back.

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so you only pay for what you need. limu, you're an animal! who's got the bird legs now? only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ welcome back to "street signs. let's get a look at the markets and see how we are trading the main stoxx 600 is trading .30% lower

let's put this in context. we saw risk assets rally last week following the fed speakers and the deal in washington those deals provided a boost to sentiment on both sides of the atlantic this morning, we see a pull back with corporate stories in focus today. some drivers coming into focus burberry is a prime example. shares plunging on the news the ceo is stepping down. let's take a look at the regions. we are seeing a bit more resilience in the dax. ftse 100 is trading at .44% lower. and turning to sectors we have health care, food and beverage and telecom and utilities. we are seeing the more cyclical

value oriented under performed travel and leisure down 2.6% we are seeing nerves build across europe as cases of the delta variant rise and countrie casting doubt on the summer travel season. some are selling out of travel a and leisure stocks oil and gas down 1%. retail down .90% turning to u.s. futures. we are in for a fairly muted trade. dow is 12 points lower nasdaq looking at green on the board. the s&p looking at a flat open for the week last week, we saw decent gains for all three

indices. the dow leading by 3.4%. the outlook for germany and the post-covid recovery is at the forefront of the euro finance summit anetta joins us now. what is on the agenda of today's summit >> reporter: actually, so far, we have been hearing from ministers and just now from the deputy finance minister about the road ahead and what has been achieved since the outbreak of the crisis europe is moving too slow when it comes to implementing the rescue packages. it took europe almost a year for pledges the money to the

countries. it is interesting that europe is looking very much into the details of where the funds are going and that's one of the major concerns that the rescue funds are not allocated in the right way. of course, just now, banking panel has started as we are here in frankfurt banks are in the center of the discussion they are also talking about how resilient the banks are going forward once those waivers of regulations lifted and the talk of digitalization and fintech and what it means for traditional banks going forward. later, we are talking about the economy and how germany will evolve from the crisis and what it also means for the supply chain disruption are weighing on parts of the economic recovery

here when i caught up with the member of the council of economic experts earlier this morning, monica was optimistic about the stronger recovery of germany in the second half of the year. that is because we are just going out of general lockdown measures the service sector has a lot of room for improvement in germany. of course, everything depends on how the virus will or the variant will weigh on potential travel restrictions and also on the hospitality and leisure sector as such it is a rosy outlook, but still loads of uncertainties the median to longer term is more interesting that is one big topic here it is not just going out of the coronavirus crisis, but digitalization and the topic of how to finance climate change policy measures and how to

transform genermany as an econo. back to you. >> thank you, anetta you are looking at the ceo of deutsche bank who is speaking as anetta said they are heading into the banking portion of the summit in terms of commentary, it is much like the data things are looking rosier. in terms of recovery so far, the experts like what they see there is the deutsche bank ceo speaking at the euro summit. we will bring you headlines when they come through. still ahead "street signs. the watch dog cracks down on one of the biggest cryptocurrency exchanges. there is a look at burberry shares which is trading 7% lower on the session

welcome back to "street signs. i'm julianna tatelbaum these are your headlines

burberry shares sink on the surprise departure of the ceo after five years as the helm he will join ferragamo it is now turned lower. the far right is beaten in french elections, but macron's party fails to clinch a victory and the bad turnout rate is bad for democracy. >> the historic disaffection is a message to society we are going through a profound crisis of the local democracy which requires a collective reflection process the uk joins the crackdown on crypto as they cease all activity by wednesday evening. and javid is the uk health secretary after mat hancock

resigns in disgrace. >> we are still in the pandemic. i want to see that come to an end as soon as possible and that will be my most immediate priority to see we can return to normal as soon and quickly as possible pllet's get a check of the european markets we have red across the board losses accumulating over the morning. the ftse 100 down .50% alongside similar losses for the cac and the ftse mib travel and leisure tstocks are down for the sector. we are seeing countries tighten restricts on travelers from the uk as concerns are on the rise of the delta variant continuing to spend throughout the

continent. that is weighing on broader european trade this comes after a decent rally last week on both sides of the atlantic let's look at currency we have the pound trading firmly up 20 points to 139.04 and this week, we are he eexpec to hear from central banks u.s. futures a little bit of the red on the dow jones industrial average 18 points lower. s&p is a flat open nasdaq is looking at a 20 point rise at the open we saw gains for all three dow gaining 3.4% on the week s&p posting the best week since february we are coming off a strong

several sessions for u.s. markets. chinese regulators said tesla will recall 300,000 china made and imported model 3 and model y cars the move is due to assisted driving function which can be accidentally activated and cause sudden acceleration. this is a first for tesla cars built in china the uk finance watch dog banned binance from operating in the country. thed a warning promising high returns on kricrypto assets. it is keeping abreast of the changing policies. we have the financial analyst joining us now how significant is this development from the fca to ban activities from binance here in the uk >> good morning. i think it is significant.

it is not a step change in regulation, but part of a trend going on across the globe. cryptocurrency is becoming more and more popular and consumers are at higher risk regulators across the world as we have seen in japan and china and the u.s. and in the uk are looking closer to cryptocurrency as it is becoming a mainstream currency 2.3 million people hold cryptocurrency that is 5% of the population it is pris pretty widespread no >> do you think this is more reflective of the view toward cryptocurrency broadly >> i think it is something specific about binance

at this point, we don't know what that is it is exclusive to binance the fca has been regulating firms in terms of anti-money laundering and counterterrorism regulations. it has been engaging in firms over the last six months you know, there are huge numbers. 90% of the firms have withdrawn their applications to conduct activities in the uk of course, the regulations they found too onerous. that gives you an idea of we're kind of in the market here and regulators are reluctantly and slowly coming to realize they are going to have to jump through regulatory room hoops tl produ

sell to consumers. >> and we know retail investors have been a huge part of the bitcoin boom and easy for retail investors to trade crypto. >> yes, for sure you're right that is clearly a key focus for regulators how consumers are impacted as i say, here in the uk, we got that research from the fca last week 2.3 million people holding crypto actually a lot of them are using it in a fairly appropriate manner they have small amounts invested and view it as a form of gambling which might sound bad actually, it is a bit of a flutter. the average holding is something like 300 pounds. you know, it is a substantial flutter. for a lot of people it is not the be all of their financial being. within that research, there were

worrying signs particularly, i think, one statistic stood out to me. 14% of people who hold crypto borrowed money to accumulate it. they don't have money. that will be keen to make sure it doesn't come back and bite consumer consumers. >> interesting suggesting we may see regulators take a more nuance view. let's put in the context of the crackdown in the uk. china got a ton of focus a couple of weeks ago with the crackdown on crypto. what do you think is behind china's moves and what does that mean for the potential broader widespread adoption of crypto? >> well, you know, i think within china and this applies to

other jurisdictions as well. the consumer angle which we talked about there is also the question of systemic integrity we know since the financial crisis regulators are naturally wanting to keep an eye on things that are going on in the monetary system to avoid build up of systemic risks that is the focus for regulators the idea that we could have this decentralized monetary system that actually replicates a wide change of payment functions within the economy and doesn't have regulatory oversight. it is fairly fantastic the more and more in terms of transactions that go through, crypto assets, the more it becomes part of the functional financial systems. regulators will want to take a look at that the third string is environmental concerns

governments have lots of targets in terms of making the economies net zero by various dates. bitcoin mining, as we know, is a heavy user of electricity. that puts pressure on regulators to take a look at that as well. >> the other leg here is the highly anticipated emergence of yuan how do you see the emergence or introduction of digital currencies influencing the appetite for cryptocurrency going forward? >> we are in the early stages of that we don't have a huge amount of detail from what i have seen at the moment, those kind of currencies sit slightly separately to cryptocurrency you know, the kind of currency

and cryptocurrency central banks are proposing are not the same they are the same issues in a different format whether that is pounds, dollars or yuan. bitcoin has its own value. it is not coming from the central bank the central bank digital currency is a different kind of the same currency in the same way we have digital money. we have increasing notes and coins and this is just a way of representing that same unit of value. i do see it as, you know, a different trend based on similar technology i don't necessarily see that impacting on people's desire to hold crypto assets

>> thank you so much for joining us this morning. financial analyst from aj bell singapore's ecommerce sector is projected to be worth $5.4 billion by 2025. in the first part of a week long special, we look at how ecommerce is playing out in the city state christine tan has more >> reporter: when it comes to ecommerce, sing mapore is a tin state with global ambition a lot to play for as online retail is a multibillion dollar se sector the pandemic have propelled the e-boom, but there are other

factors to move the growth >> we need high mobile penetration and good internet connectivity which is affordable and a lot of the offerings out in terms of goods and certify obvi services this is really to have additional economy and additional government and additional society >> reporter: the government isn't going it alone it is teaming up with google its skills ignition is a jobs trainer for those looking for a career in digital. some say it is a vital need. >> the one challenge we see in realizing the vision of singapore becoming a meaningfu and advanced is the jobs it is 19,000 which is estimated.

that exceeds what the talent is available. it is not the jobs, but skills an urgent need to build the digital skills >> reporter: not everyone can work in digital. that might be a good thing shoppers are certainly changing the ways and spending more time online that's not the whole story >> we actually don't think the bricks and mortar shoppers are going away the retail journey, research or decision making will happen online, but also, shopping and the shopping experience is a fairly social one. finding a really, really good tie-in between offline and online is important. it is very important that retailers think about it and the experience as a result >> reporter: one thing is for sure technology will play a part in pushing omni channels forward.

who is set to push technology forward? >> one question i asked someone is did technology drive consumers or do consumers drive technology that is where you get to a deep level. consumers are driving it faster. i think ten years ago, technology was driving it. now we are after more of it and we want it yesterday we are impatient as consumers. >> reporter: more choice and speed, but less to pay the holy grail for retail doesn't change even if it is online christine tan, cnbc business news, singapore. >> christine will have more on the ecommerce come when she looks at what is up with finances and support still ahead on "street signs" javid takes over as the uk health secretary.

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mat matt hancock has steppe down after a picture of him kissing an aide in his office. his office says we owe it to people who sacrificed so much in the pandemic former u.s. chancellor javid will replace him he will update restrictions and the government is not expected to relax rules before the target date of july 19th. speaking to reporters, javid wanted to see the uk return to normalcy as soon as possible. >> we are still in the pandemic. i want to see that come to an end as soon as possible. that will be my immediate priority to return to normal as soon as quickly as possible. >> sydney has been put under a

two-week lockdown due to the delta variant. 70% of the country's population is under some form of lockdown southeast asia is also seeing an increase in covid infections indonesia reported a record 21,000 cases on sunday malaysia and thailand are dealing with numbers back here at home, germany is a country of concern. the move could see the eu potentially ban british travelers from entering the bloc germany imposes travel restrictions to portugal and russia in time to avoid a two-week quarantine. to discuss all things covid, tim spector joining us now from kings college, london.

professor, thank you for joining us to help with the numbers that are coming out if we can start out with the uk. i'll read out a couple of stats with the virus story daily cases up to 15,000 as of yesterday versus 5,590 in the week before. in hospital, 1,500 versus 187, the week before. that is out of the data from yesterday. how concerned should we be about the virus situation here in the uk >> i have been tracking the virus with the covid app for the last 18 months now we are getting data from 1 million people which is ahead of the government figures we have been seen the rises earlier than anyone else we're seeing about 21,000 cases every day. what we have been seeing is

these are starting to tail off the increases that we saw rapidly in the last two weeks slowed down in the last few days the worst of the areas of the country, scotland and the northwest of the country, have peaked and flattened we hope in a few days, it will peak and start to go down. the other thing is to realize that although there's lots of cases, most of them are in young people aged under 30 the rest are vaccinated people you are getting a mild disease which is like a heavy cold and the symptoms are different to those reported for the previous waves, et cetera it is a very different picture given the number of cases, there

is now a disconnect between the number of deaths you said there were 11 or so earlier in the year, if we had 20,000 cases, you know, we would be seeing hundreds of deaths a day. that's not happening some of this is reassuring we are seeing less impact on the health services. it is also slightly worrying because the delta variant is very transmissible young people are passing it to others we are seeing 1 in 10 people with vaccinations also suc succ succumbing what we see in the uk will start impacting in the u.s. and other countries in europe. >> on that note, very encouraging, relative to what many feared here in the uk and the app which is forward

thinking what about europe? they are looking at lower rates of vaccination, even among the most vulnerable? what is the trajectory for continental europe >> they are probably a month behind what is happening in the uk i think, you know, they are all trying -- many countries, particularly those depending on tourism are trying to open up. i think they will have real problems in a month's time with big surge in cases it is a race for those countries to try and protect the vulnerable people. you know, while the infection is raging in the young. i think that is the big impact also understanding the single dose of rackvaccine doesn't see protect us against the alpha and

the earlier ones it is important to get the second shot in and not wait two or three months. get that down maybe to a month or six weeks ideally to maximize protection and prevent people going to hospital it is a bit of a race against time trying to balance the economies of the countries that are so critically want to open for the summer and tourism and definitely pay a price at some point later on >> how would you describe the risk associated with the virus if it is becoming more mild? i'm asking this because we are looking at israel right now. they heare moving ahead with restrictions because of the break through cases. the cases are mild how risky is it to have the virus circulating if it is not causing severe disease >> for the average person, you will get three days of a bad cold and you will get over it.

this is if you have been vaccinated of course, some people who have other disseases or asthma, may end up going to hospital or have problems or obesity. there will be some people needing hospital care. i guess the big question is how many people are going to get long covid either who have been vaccinated or that group of the young that is more of the worry than the infection now. we have millions of people in europe with this long haulers or long covid that is the big question if it is 1 in 20 people, that is still a lot of people that will have problems working or getting back to normal later on. that's my worry at the moment. not so much the hospitals. i think how can we prevent

people going on to get long-term symptoms it is interesting to see how other countries deal with that we are watching israel any country ahead of the uk to see how they cope. you need to look at other countries to see how best to do this >> professor, thank you for sharing your expertise tim spector. we will leave you with a look at burberry shares and ferragamo shares pairing back steeper losses after the announcement of the departure of the ceo u.s. futures wall street is set to open as a muted start. that's it for the show i'm julianna tatelbaum "worldwide exchange" is up next.

it is 5:00 a.m. at cnbc global headquarters. here is the top five at 5:00 wall street at record watch as one sector looks to do something for the first time in 30 years. back on board. keying their support for the infrastructure deal after weekend backlash back to the office at least part-time one international bank out with the plan to bring people back to the office breaking with the wall street counterparts along the way. cloudy skies for boeing as regulators flag issues for what is