and karma is what it is. ♪♪ -- captions by vitac -- good morning welcome to "street signs." i'm julianna tatelbaum along with rosanna lockwood in the studio here are yourequities are highe german economy is pushing to grow at the fastest in six months. the kremlin says there are no plans with a meeting with joe biden and vladimir putin and scholz says he is calling

for immediate sanctions. >> makes no sense to make them public what we expect to get the russian government is not really sure exactly what to do. credit suisse rejects allegations after a data leak reveals the lender held accounts for criminals and human rights abusers and sanctioned dictators. and uk prime minister boris johnson will lift all restrictions in england as we live with covid and bill gates says another pandemic is all but certain. >> the cost for the next pandemic is not super large. it is not like climate change. if we're rational, yes the next time we'll catch it early and won't go global like it did this time warm welcome to "street

signs. excited to have rosanna in the studio we have fresh data from the eurozone these are the flash pmi the services sector has come in at 55.8. that is up from 51.1 in january. in terms of the breakdown with services and manufacturing, the manufacturing flash at 58.4. compared to 58.7 in january. that services number, which, of course, highly in focus with th restrictions, the flash services at 55.8 versus 51.1 in january those are the numbers from the eurozone in terms of the color, the economic recovery rebounded in february despite soaring prices.

that is a focal point today. factories seeing another solid month. activity could have been faster, but we had lingering supply chain bottlenecks and booming demand the factories were not able to keep up and the backlogs rose from 58.76 to 58.9 that is important to think about. clearly, the inflationary pressures are front and center for companies. in terms of the overall level of activity, it was strong. you have the euro versus the dollar r rosanna. >> let's bring in chris for more detail it is a bit of a bounce back how much bounce back is left given the restrictions lifted? how much momentum could be sustained over the coming months >> i think we should see more

momentum into march or april because there is still restrictions these covid measures to be easing which should drive services. clearly a lot of pent-up demand in the service sector with travel and tourism i think you have good momentum there. that is indicated by the backlogs of work index which you mentioned with the increasing backlogs of work which is the pipeline of work that companies have to sustain activity in thes coming months. that is rising same in manufacturing as well. one of the interesting things of the manufacturing sector is easing of supply strength. those supplies index which measures how long it is taking supplies to get to factories, that shows delays are lowest since january of last year in sectors like autos, lowest

since october 2020 there has been a big change in the supply chain situation which is driving optimism in manufacturing. we have room to go in manufacturing as well as services with the rebound having more length over the next couple months. >> in terms of the supply demand dynamics, the supply chain issues may ease, but as julianna mentioned, inflation is affecting all business and rising cost of living. how is that affecting demand >> we are seeing some signs of customers starting to push back on price hikes they are managing to get the price hikes through at increasing rate. we have two price gauges in the surveys. one is input cost inflation. that is accelerated. not as high as last year, but picking up again you have easing of manufacturing

raw material price inflation which is linked to the easing supply constraints prices and manufacturing growing strongly, but at a lower rate. at the same time, you have increasing wage pressure and energy prices feeding through and driving up cost and service sector costs at a record rate. this is 25 years this is a significant period to have all-time highs and those increased put pressures and feeding through to the highest rate of selling price inflation for goods and services we have ever seen. these inflation pressure are mounting further no sign of this leaving yet. >> fascinating no sign of this peaking yet. do you have an expectation or do the firms have expectation when the rate of increase will peter out? >> there's no expectation on

prices in survey we are seeing some push back from customers by and large, customers are still able to drive the cost pressure through to final demand that is showing no sign of abating. you have additional pressure from the wage front and energy the hints of secondary inflation pressure building further. as we look through this, normally that commodity price and inflation barometer is a indication of where the overall inflation pressures are going. the fact that is going down bodes well six or eight months down the line, you should see it abate. later this year with cooling down it does suggest you see elevated cpi reads for the coming months.

>> i want to focus on france pmi is strong across the board in services and manufacturing. how is the french economy looking? it seems stronger than many expected >> yes, it has a nice bounce with manufacturing and services growing strongly the service sector, the growth there, the fastest of four years. there is a lot of pent-up demand in france. that will help drive the economy as we go through to the summer prospect is looking good for france the big thing for france and everywhere is we have seen waves before the good thing is the omicron wave seems to have a very short-lived and small impact on the eurozone economies they rebounded from it already barring any of further, we should see sustained growth. the big question is how much of this bounce can be sustained and

how much is simply a knee-jerk reaction from those additional restrictions put in place and how fast will it peter out we will only know this by the next couple months data to see how much underlining momentum i there. the backlogs of work seems to suggest there is good demand to drive the economies going forward. >> interesting to note, chris, france is out performed germany with the recovery on the pmi the last few months. what is happening in germany the change in government and rising cost of energy and the regions of germany treated the rehe deshe restrictions. willgermany bounce back stronger >> absolutely. we will see a big easing of supply constraints in germany. more than in france. with the auto sector supply, we

have difficulty with semi conductors, but the broader supply chain is improving in germany rapidly now. that is helping to clearly drive production and boost investment in future production in germany. the constraint in germany is output growth slowed in february that was largely a function of covid-related services surely that will help drive production with the easing of supply chain pressures you will see the numbers come from germany easing in the coming months to drive the broader economy. >> chris, we will leave the conversation there i appreciate you joining us. chris williamson that was a busy weekend as far as headlines around the

ukraine situation. germany chancellor scholz told cnbc that western powers are prepared to sanction russia, but not act now. speaking to us in munich, he said he wants a situation where peace stands a chance. >> we are supporting ukraine with the financial means in the p past germany is doing this as the biggest donator in the past. the european union is doing it the united states is doing many others for reducing economic resilience and we are absolutely prepared for a situation of military aggression against ukraine saying putin, if russia invades ukraine, russia will have consequences and we are ready to take decisions on sanctions. different to the situation we had before, we are well prepared and could take the decision in a

short time after invasion would have taken place this is helpful to my point of view it is better to say we do it then instead of doing it now because we want to avoid the situation. we want to go into the direction of peace having a chance >> when it comes to the potential sanctions, everything is on the table. mario draghi says energy sanctions should not be on the table. where does germany stand >> we are working with the united states and alliance partners in nato and the concrete measures for sanctions. we are nearly ready. my view is it makes no sense to make them public it is good for what we expect to get the russian government is not really and cannot be really sure exactly what we will do we will not speak about it

>> the element of surprise >> yeah, it is i think there is enough intelligence in this world and they will know approximately what we are discussing about >> is gas part of the conversation >> they will not know it exactly. this is what is very good. we will decide on the sanctions and publish them when the situation is there, but now we are doing all we can to avoid it and convince all that are now acting to go into talks about all of the questions transparency of military maneuvers and arms control and question of european security. >> carrying on the security theme and the ukraine crisis president biden overnight agreeing to meet with russia's vladimir putin in principal to

find the solution to the crisis. the white house said such a meeting remains on the table provided russia does not invade ukraine. this follows as emmanuel macron held talks with vladimir putin on sunday. putin reportedly remained adamant that escalating violence was come from ukraine forces the kremlin says vladimir putin will address his security council at a special session imminently and tensions are growing over the situation in eastern ukraine. moscow adding no specifics in place for a meeting with putin and president biden. stressed the two leaders can set up a meeting or call whenever necessary. speaking to nbc on sunday, secretary of state blinken said they are doing all they can. >> the die may be cast until it actually settles and

the tanks are rolling and planes in the air, we will try everything we possibly can to get president putin to reverse the decision he made and dissuade him we continue to try to build to deter him from the course he is set on until the last minute, there is still an option for him to pull back we are trying to prevent a war as soon as you trigger sanctions, they get absorbed from president putin and he moves on >> the decision to hold the summit in principal came after both leaders spoke with french president macron on sunday charlotte reid joins us with more do they have the answer in what the u.s. and russia have found so far >> reporter: we know emmanuel macron is doing diplomatic lifting from the last few weeks. he went to kyiv and moscow at the end of the table with vladimir putin we know that emmanuel macron had

the slightly different approach to russia from the beginning woo being putin. some saying this is a naive approach with russia he still had to maintain or demanding dialogue with russia and as long as there is di dialogue, we have to find agreement. he sunday, he spoke twice with vladimir putin and volodymyr zelensky and scholz and johnson and biden. looking for discussions actively he has a different approach and tone andlying on the steps for a sanctions. there is no difference on the way the alliance are standing with russia with the different wave of approaching there. we know mr. lavrov will talk in

the next few days to define the steps this meeting with president biden and president putin could be held in the future and lavrov is meeting with blinken on thursday. all of this going in the background and talks that they are pushing for to keep dialogue going with russia. some say this is a potential personal risk for macron we are seven weeks before the first round of presidential elections where we know he has been active on the international scene or trying to get a solution we know he is expecting a hoping to get some sort of solution before he is announcing he is running in the next couple weeks. >> thank you, charlotte, for breaking it down coming up, credit suisse allegations after information leaked that it has been doing

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people who can help, we do that. talk to a clover business consultant today

welcome back to "street signs. let's get a check of european markets and opening the week in terms of trade last week, the narrative was all about geopolitics. the stoxx 600 pulled back 1.9% of the the dax lost 1.2% this morning, it is a muted picture. ftse 100 up a bit. the dax trading higher we have a bit of red on the board. the current situation is a focal point for traders. we will see if the weekend efforts lead to the deescalation there are a number of questions open and the kremlin out with fresh comments that suggest the situation is fluid let's look at the best performing market.

insurance out in front higher .3 and then travel and banks. fairly contained and moving higher the u.s. mattrkets are closed fr u.s. holiday we will not get spillover from sentiment stateside. the pmi is coming through to paint a strong picture of the eurozone economy in february losers on the european market this morning technology down 1.2% just behind technology in terms of the worst is real estate and industrials and financial services and chemicals you can see a contained start to the trading session. a bit of a banking focus credit suisse rejected the allegations of improper conduct and wrongdoing after client data leaked information suggests that the bank was doing business with human rights abusers and corrupt politicians and business men

under sanctions since the 1940s. this was leaked to the german newspaper before picked up around the world julianna >> in a state, rosanna, they said the data was historical and based on information taken out of context the bank said most of the reviewed accounts were now closed and it remained confident to protect security had been taken. rosanna, for credit suisse, this is negative and the fact it comes after a string of scandals for the bank can only be frustrating for management which tried to take measures to address the issues at credit su suisse i think it is interesting the stock is taking a hit this morning, but not much. that suggests to me the overall narrative is not different from what inn vestors were thinking >> you expect to see the stock down way down in the red

it is only .8% down. it is all of the scandals over the last few years spy scandals and covid scandals and now this this is not the first leak of tax evasion. think panama papers and others on the investigate journalists as well. what is interesting is the length of time it covers credit suisse is keen to point out. this began in the 1940s. some of these accounts have been closed i think cited 90%. they are not recent news however, it is still really damning and the whistleblower said this is basically shielding corrupt people and denying developing countries of much-needed tax revenue. >> the point to make is 90% of the accounts or clients have been closed and business they have done with them. this is important.

this is not a current issue for credit suisse. this is from the 1940s through 2015 that is the latest we are talking about here it makes sense from the current perspective that investors are not extrapolating. one issue with credit suisse, the common thread throughout the issues facing pertain to controls and the question if credit suisse has the controls in place they clearly made an effort to change leadership and address the issues of control and enhance governance has there been enough done to improve controls and about the whistleblower and what motivated the whistleblower, this seems to be about the swiss banking system as much as credit suisse >> that is with s is what i wou. the concerted effort to

discredit. >> absolutely. a stock to keep an eye on and story that he vevolves weeko week coming up, the u.s. and russia offer a summit for a hopeful peaceful situation to bring russia and ukraine bk omheacfr t brink of war

welcome back to "street signs. i'm rosanna lockwood and julianna tatelbaum both in the studio this morning. here are your headlines. equities lose steam despite economic activity across the eurozone rebounded in february the kremlin says there are no concrete plans for a meeting with president bidenand vladimir putin as german chancellor scholz says he is resisting calls for sanctions. >> makes mostno sense to make t public for what we expect to get the russian government cannot

really be certain what we will do credit suisse rejects allegations of the business practices after a data leak reported that it held accounts for human rights abusers and dictat dictators. and boris johnson will lift restrictions for covid and bill gates warns another pandemic is all but certain. >> the cost of a pandemic is all but certain. if we're rational, the next time we'll catch it early and it won't go global like it did this time we have fresh data now coming from the uk and this data is pretty strong we have the flash pmi for february composite has come in at 60.2.

up from 54.2 in january. pretty big leap in the rate of the expansion. now for the breakdown. here is the bright point in the surveys. the flash services pmi at 60.8 up from 54.1 in january. the manufacturing pmi at 57.3. that was exactly where it was in january. overall, the uk private sector growing at the fastest pace in eight months the private sector companies with another steep increase incoming work and demand was improved about the economic outlook and roll back of the pandemic restrictions. timely comment with boris johnson set to come out and lift the remaining covid restrictions today. incredibly strong survey coming for the uk rosanna, this is an important

question for the uk and if the central bank has to act and what it means for inflation >> nothing happens by accident, julianna the timing of the announcement today was timed carefully with the data now let's look at europe markets. let's start with the uk yield curve. the two-year gilt at .023 higher and let's take a look at the europe markets interesting back and forth the headline risk from the ukraine crisis we heard the kremlin with the announcement at 8:30 a.m. uk time no concrete plans for biden/putin summit a slight selling off ftse off .50%. we had strong for the germany and france and cac is down

we are keeping eye on credit suisse shares. now it is up around half let's look at sectors. a very poor day for tech look at this 1% down. the rate risk that we are facing here jpmorgan chase is expecting the fed to hike 25 points at the next meetings. technology and banks despite the findings of credit suisse up around .50% in the green keeping an eye on the sectors as we look at the latest from ukraine. chancellor scholz is saying moscow should not be sure how the west will respond to a p

ten potential invasion nothing is off limits. >> everything is on the table. for us, the most important at the moment, we are receiving a lot of the gas 40% of the gas we import i have been reaching out to other suppliers first and foremost, our friends in the united states and we have been successful we have now in january the highest amount of energy deliveries we know if there is a decoupling of russian gas as retaliation, we are able to make it through the winter without russian gas, but supply from others and this is good. >> do you believe europeans would think they were safer if ukraine was a member of nato >> ukraine needs to be protected

in the sovereignty that means the ukrainian people need to make the choice and design this future. >> mario draghi says energy should not on the table for sanctions. if all options are on the table? >> we are clear that all options are on the table and i think more important is that two factors have to be kept in mind. the big financial packet of sanctions that would cut off russia from the financial markets. a heavy blow for the economy and expert controls and goods that russia needs for modernization and diversification with the one-handed economy and are not easily to replace. on the other hand, it is important to know that russia's export of energy to europe is 2/3 of the export goes to europe and this is half of the russian budget

so far, it is not the in sense for russia, a smart move to decouple from gas. if so, we are prepared. >> 90% of the italy needs come from import of gas is mario draghi wrong? >> we now have energy gas from other sources to provide for italy and we have a pipeline and connections through the europe that would make it possible to make the necessary gas to italy so italy is on the safe side. >> russia and belarus will continue war game ns into this week it will continue indefinitely citing the tensions on the ukraine border 30,000 troops are taking part in the military exercises ukrainian president volodymyr

zelensky says the country is ready for everything speaking at the security conference, he accused western leaders of policy of apip appeasement. >> translator: you are telling me 100% the war will start in a couple of days and what you are waiting for? we don't need your sanctions after bombardment after our country will be fired at or after we have no borders we have no economy and part of the country occupied why do we need desanctions thing? >> sir tony brenton joins us now. sir, very pleased to have you on the program. thank you for taking the time. based on the headlines from the munich security conference, do you have confidence that the diplomatic efforts will, in fact, lead to a deescalation >> i can't be totally confident. i am confident that putin

doesn't want war if he can avoid it he will be going into the site with the hope that the west will find face-saving compromise for him. the west is keen to avoid war on the sanctions and deeply poisoned relations with russia that follow from that. there is obvious landing ground if both sides are willing to settle for it. everybody knows ukraine, okay, don't rule out joining nato completely, but ukraine is not in the position to join nato for at couple of decades if they agree on language that said that, everybody could agree to back away there is a place for them to settle if they look for it >> fascinating for you to hear you don't think putin wants to enter a conkconflict in terms of what might lead to

and avoiding of a full-out conflict, what sanctions or threats from nato he would actually trigger putin to change course >> this is not about the threats. it is not going to decide putin to change course or not. russia has weathered a load of west sanctions what is more demanding and threatening. i'm sure that within the kremlin as they ask of what they see is national security or economic prosperity of the country. the threat of sanctions is an irritation for the russians, but not decisive for them. >> absolutely. in terms of if we're not yet at the military conflict and heaven forbid, we are in an information war. i want to get your read on the tone of the diplomatic statements we had with the stake

holders. interesting to note when france comes out with the message, it is quickly up ended by the kremlin. >> except macron has engineered the summit i think the french have done rather well. the west has been clever in a way by emphasizing the danger of war by emphasizing the prospect of the sanction package by putting pressure on putin and preempting what russia was planning to do such as false flag operations. in russia, the west has been presented in exercise of provocation. the russians are told that the people that want war on the government and it is actually the west that is helpful to get a deal. >> absolutely. watch russian state tv and you see that messaging in terms of the uk as the former uk ambassador to russia, are we doing enough

johnson saying we must deal with the money in the city. have we done enough? >> we have done everything we can to strengthen the solidarity to the est that is impressive we have failed to be part of the group of people looking for compromise we have been saying to the russians, solidly, this is disastrous we have been saying to them, you don't do what we tell you and we'll clobber you. not as far as i know said to the russians, come on. there has to be a way through this in that sense, it is the adults in the game. germans and french and to the extent some americans looking for compromise who led the real diplomacy going on >> now, in terms of that line, there's not much in it for russia to invade ukraine do you think putin has been pushed or not been pushed, but gone further than he planned

with regard to building tension to create the format for negotiations and meet certain policy goals >> i don't think that putin planned for things to go as far as they have he is a cautious man i know him slightly. the last thing he wants is a major war with deeply unpredictable consequences at least for his presidency what he wants to do is get the west's attention his view of things is he has been demanding talks with the west and progress on the issues central to russian security for years. only this great military build up has gotten the west attention and got some an ggreement from west over things that is as good as it goes from his point of view, but he needs more if he can go back to the kremlin and his people and say all of this for us is 190,000

troops was worth it because we have assurance that for the near-term future, ukraine is not joining nato. >> sir, i believe you said before from the u.s. perspective that russia is not the key security challenge for the united states. clearly biden has been leading the charge from the west's point of view. china. what do you think xi has been thinking watching this >> i believe he has been watching this with a certain amount of pleasure he is watching all this with the united states. if there is a war, united states will stay distracted for a while to come. it strengthened xi's relationship with russia and the china relationship doing very well and natural economic and push russia further into chinese arms if the west does back down seriously on ukraine, which i don't think the west will do and i'm not suggesting it should,

they will draw conclusions of how the west would behave if it came to the crunch point on ta taiwan. >> tony brenton, thank you it has been fascinating having you on this morning. boris johnson will today unveil the plan for living with covid. that's the long-term plan for england. he is expected to hold a cabinet meeting this morning before addressing parliament and nation he is suggesting to lift all restrictions saying it marks pride after the difficult period mea meantime, queen elizabeth tested positive for covid she is experiencing mild symptoms she will continue with light duties over the coming week. julianna. australia reopened the borders to international visitors for the first time in almost two years they had the strictest travel

measures and it will take a further two years to return to pre-pandemic levels. speaking at the munich security conference, bill gates says there are policy lessons to be learned for countries that dealt with sars in 2002. >> countries that had exposure to sars co-v 1, australia is an outliar. they orchestrated diagnostics and quarantine policies and they have a death rate in a different league than other countries. everybody had the capability to do that. >> gates also told cnbc that covid risks have dramatically reduced, but another pandemic is all but certain. >> the countries that had some exposure to sars co-v 1 were among the out liars. australia is a true out liar

orchestrated diagnostics and have a death rate in a different league from the other countries. utterly different. everybody had the capability to do that. they have less pcr machines than other rich countries it wasn't something they had more travelers coming from china. the cost of being ready for the next pandemic is not super large. it is not like climate change where 10 trillion, 20 trillion, these are big numbers, global surveillance would cost $1 billion a year the r&d to get magic vaccines and diagnostics and therapeutics is less than $1 billion over the next decade. if we're rational, yes the next time we'll catch it early and it won't go global like it did this time. hong kong is considering

tightening the social distance rules with the pandemic. cases have surged topping 5,760 today. the city is preparing for testing of every person. the lawmaker regina ip is saying it is testing among the surging cases. i moved here from singapore and living in that wave for some long and nothing like people in hong kong and the city now moving to the zero covid policy. in the uk, i landed and saw very few restrictions we will hear the lightening of the restrictions today >> clearly, the outlier from the

strict perspective has been asia and china. one of the big question marks this year has been what will happen to china's zero covid policy once the winter olympics are behind beijing it will be fascinating to see if beijing eases up a bit and what it means for hong kong which followed a zero covid policy n. the uk, this is big news the restrictions have lifted to some degree. we are talking about lifting all restrictions and pulling back on testing which is the most controversial measures that is due to be announced later today. the government scaling back. testing capacity and testing rules and this is important to put in context, rosanna, boris johnson had backlash in december for imposing omicron pre-desp restrictions >> i think the political context is important at the moment,

julianna, that boris johnson declined to say whether he would resign if the police investigation into covid parties happening at downing street had him pay a fine for broken the law himself. bear that in mind when we see boris johnson later today about the easing of covid restrictions a concerted communications effort in the last 24 hours about how successful british government has been in the vaccine drive. this is the words of the british government something they are keen to focus on a stand outline is sage, the advisory body, saying it is considerable policy in the uk. bear that in mind when you think about what they say later in terms of lifting and testing >> important to think about the motivation when you think about the policies changing. we will highlight the confidence

that borrisis johnson and liftig is because people have had the first dose the vaccine vaccine uptick has paved the way for the restrictions lifting we will take a break coming up on "street signs." cryptocurrency volatility as well as a cyber attack on the platform we'lha t lesafr is break.att teth

cryptocurrency had a volatile weekend against the back drop of the rising global interest rates the attack on opensea drdrags assets down. the company is making a push into the u.s. market arjun joins us with more

good morning >> reporter: good morning, julianna and it is a very interesting company because it was founded in china and has been a victim of the crackdown on cryptocurrency it shutdown exacting users losing 30% of the revenue. that was offset by the international push from the past few months and said up a headquarters for asia and europe and eyes set on the u.s. now that is according to the co-founder who had a chance to catch up to us huobi has been in the u.s. for a brief time and exited in 2019. it seems ready to jump back in i asked about the company's plans for u.s. expansion listen to what he had to say >> translator: in 2018, we tried to enter the u.s. market, but we he withdrew because we did not have a good management team in the u.s. when we did it last

time cryptocurrency is a large industry and exchange is only one part of the industry which is exposed the most. from mining machines to mining coins and from exchange to wallet, including financial derivatives, there are many possibilities. i expect asset management to be a bigger business than exchange which echos the traditional finance market as well choosing our model to enter the u.s., i don't think exchange is the necessary element to enter the u.s. as for how much resources we will deploy for the international market, we have no other choice but using our full strength to go forward in the global strategy. in the past, we would explore a new market and we can withdraw if it doesn't work out huobi has no choice but to go

global >> reporter: last time they he went with exchange business and now looking for asset management because it did not take off the last time. the u.s. is promising. you have coinbase as well and the changing regulatory environment on top of that as the china market closes to huobi, it has no choice but to try the international market rosanna, back to you >> thank you for walking us through it let's give you a look at the heat map from today. i'm rosanna lockwood with tarts ta julianna tatelbaum we will see you tomorrow plenty of action when the u.s. reopens tomorrow after the u.s. holiday.

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