able to step in and give a large portion of what they lost back to them. bernie madoff's violent crime was not the last chapter. -- captions by vitac -- on april 24th, we can make the choice of the new french her era. on april 24th, we can make the choice of france and europe together >> welcome to "street signs. we are live in paris with the first round of the french presidential elections here are your headlines. emmanuel macron and marine le pen advance to the runoff with the incumbent and far right

challenger improving on the vote from five years ago. >> translator: i want to express my sincere gratefulness. i take full measure of this responsibility with humility and the second round is a cliff hanger with macron's lead within the margin of error but the mp tells cnbc they should be easy for them to win the voters from the party they lost in the first round. >> translator: it is difficult with the left-right divide we think the real divide is the patriots and the globalists. it is embodied by emmanuel macron we're the patriots the cac out performs in early european trade

soc gen exits the russian operation. and the world's second largest consumer rising in the fastest in the last three months somewhat muted start to the week here in europe. especially once we inherited the weak lead from asia with major moves in china down 2.5% hang seng down 3%. the supply chain disruption mounting europe's stoxx 600 down .25% you see an even split on the board.

as much green as we have red let's look at the europe markets and see how they are looking the ftse 100 is heavily focused and down .25% this morning the dax and germany is down. cac with a bit of uncertainty. we had some answers about the first round of the french presidential election. that is providing support in france all though we don't know what will happen the ftse mib is down let's get you a sector breakdown. you have the dislocation stories with supply chain and inflation as well. those stories are not going away banks are up 1.25%. construction and materials up .75%. oil and energy barrels of oil coming off

slightly the china story impacting that we will go through that in a moment in the red, you are looking at tech and auto and household goods. tech down 1.5% a tough week for the nasdaq when we closed on friday stateside. the latest on the election race now french president emmanuel macron and marine le pen will face each other in what looks to be a tightly run second round vote at the end of the month macron and le pen qualified after the first round of voting with the president gaining 27% of the vote so far a few points ahead of le pen now voter turnout was around 75%. speaking on sunday as the exit polls came in, president macron urged voters to help block the

extreme right and back him in the crucial runoff later this month. >> translator: thspare no effor. let's be humble, determined. let's convince everyone on april 24th to make the choice of the french and european era. on april 24th, we can make the choice of hope on april 24th, we can make the choice of france and europe together >> meanwhile, far right candidate marine le pen said she was grateful are for the voters trust. promising to restore the country's independence >> translator: i want national independence and make france a country of peace i will bring back the sovereignty in all areas which means the freedom for french people to decide for themselves and defend their interests i will control immigration and

reestablish security for all >> early polls suggest that emmanuel macron could beat marine le pen in the runoff on april 24th only with a tight advantage. according to the poll from ifop, macron would win the second round by 51% to le pen's 49% the margins are narrow the latest ipsop survey with le pen's 49% against macron's 51% and others admitted defeat with nearly all of them exce the leftist candidate called on voters not to back marine le pen in the runoff. >> translator: we for whom we will never vote.

for the rest, as i told you five years ago, you remember there was damage after our declaration? what are they taking the french people for they are capable of deciding what is good for the country you must not give a vote to mrs. le pen we must not give one vote to mrs. le pen. >> fortunate to have karen and charlotte on the ground in paris this morning karen is joining us live from the headquarters at emmanuel macron's party karen, a small sigh of relief, but not decisive as this point >> rosanna, i spoke to him just

as he stepped out to the election night rally i asked how he was feeling he looked shell shocked. this is such a tight contest if you think about the final stages, we saw the polls narrow suggesting that he and marine le pen were neck and neck on the night, we saw more comfortable margin, but the question he from here is who turns out to support him he was a vote for change and he had new supporters now he is the incumbent. that is dangerous territory in france no president has been elected to the palace in the past 20 years. the players may be the same, but the game has changed this time we are facing concerns over the war in ukraine and protection of europe and its security and how europe wants to position for the next 20 years and beyond as it takes on the challenge of the likes of not

just russia, but china you think back five years ago, it was a different story emmanuel macron was facing a nation with low growth and high unemployment and distrust and living in the state of eme terrorism. immigration is still an issue. the cost of living is front an center for people on the streets. the unemployment rate has come down, but low job security here. the type of jobs created are not high-end jobs. given emmanuel macron's changes to the work force, you've seen that some of the conditions and privileges enjoyed by employees here have been weakened which makes it easier to hire and fire you think of the job uncertainty in the context of high inflation. lower than the rest of europe, but high by french stan darts.

going to the polls and we saw the far left securing a large chunk of the vote and the far left candidate jean-luc melenchon wiho said not a single vote should go to marine le pen. there are concerns about who will turn out to vote in two weeks time let's listen to the contest we spoke to this morning. people who vote for the party, but from abroad spoke out and there is a concern how france deals with the future. listen. >> we have two visions of france one on the one hand and inward looking candidate who is a close friend of mr. putin, but admires mr. putin and has a support of

the former candidate who said he wish thees there could be a put. on the other hand, we have a move outward looking leader who is pragmatic and wants to reform france he knows france needs to be reformed we are wait for the reform we need to move on with that also very intense leadership on europe and international scene and especially what is happening in ukraine >> genetet there saying there is no time to waste in campaigning. journalists were on buses and taking a trip north of the city to the regions where emmanuel macron needs to make his rounds.

he will focus where the economy will hit hard. we have to look out for his reform agenda. he wants to lift the pension age. you think how much pushback there has been around this not just in france, but europe that is a challenge. the welfare state. he wants people to work or train if they are earning unemployment benefits and further cuts to taxes for businesses and households it seems that may be a challenge given some of the anger and opposition he is facing. back to you, rosanna. >> plenty of challenges for macron karen, the game has changed. charlotte is joining us from eiffel tower beautiful there this morning, charlotte. voters choosing who they dislike the least. how does that benefit le pen >> reporter: that would be the challenge for the next two w weeks. it was tight a sigh of relief for the macron camp there is still nothing

guaranteed looking at the race and things can be tight marine le pen received support from the far right candidate in fourth position at 7%. a bunch of votes needs to be grabbed from jean-luc melenchon, the far-left candidate in third position the candidates supported the second round, but this time it looks difficult. looking at the polls and you have 1/3 of the voters who will abstain because they don't want macron or le pen others said they would vote for le pen or macron it istricky. a big bulk of votes up for grabs. we heard the sound earlier urging voters to not give one vote to le pen he did call to vote for emmanuel macron we don't know if it is enough for the voters to vote for emmanuel macron in the second

round. we see the republican front and usually all of the parties are calling to vote for one candidate standing against the far right. it happened in 2002. he won the second round with 84%. it happened in 2017 when emmanuel macron had 64% of the votes. it could be tighter. jean-luc melenchon voters are in urban areas. 9 of the 15 cities put him ahead. he has a lot of voters in urban places in paris, a lot of poorer suburbs as well. we expect that with emmanuel macron to go after younger voters and urban voters if he wants to make it to the second round. atricky battle ahead marine le pen sticking to her line that she had about france's independence i caught up with the mp with the house. we talked about how they felt about the result on the first

round and how they are approaching the second round of the campaign >> we are feeling joy after the results. although we anticipate the situation. the last few weeks of the campaign were going very well. we felt marine was moving forward. we could see that reflecting on the ground tonight we will celebrate. starting tomorrow, we will get back to work because we still have a second round. we have overcome the first hurdle we can overcome another. >> translator: how are you approaching the second round how are you going to broach it >> translator: we are going to go after voters who did not vote for emmanuel macron. those are the left and those are on the right those who don't want to drown in

the magma. we are going to reach out to them we are going to tell them. if you are a left-wing voter, can you vote for the retirement reform that's coming if you are a right-wing voter, you are voting for someone to allow thousands of people to enter the country every year and does not to fight for security and causing more and more harm to the country that's what we are going to do for the next 15 days speak to the french and those who love their country >> translator: this 20% for melenchon and 7% for macron. it is difficult for more melenchon votes. which will you go after? >> translator: it is not difficult. it's difficult when you believe in the left-right divide that is not our view

the real divide is patriots and globalists we're the patriots within jean-luc melenchon's camp, there are patriots some are attached to issues of security and identity. others attached to social issues both at the edge of marine le pen's campaign one on social issues and giving french their money back and other the identity giving france the country back >> reporter: that was meizonnet speaking for le pen's party. they are still saying brexit is not on the table there are a lot of issues in the program. she talks about moving away from the eu to build a more alliance of nations how french law will would be above other laws

it could create problems in the future she talks about taking france out of the nato. there are a difference of policies a huge implication what have this means for france and eu and events like ukraine for example. the election from le pen would be implications ahead. she expressed sympathy for vladimir putin calling him a patriot. macron's camp will talk about this which is crucial for the next round >> charlotte, stay tuned for more french election coverage and the director general pascal lamy that is coming up in 12 minutes from now stay with us still to come, inflation in china running hotter than forecast as the supply chain

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let's get across to china. shanghai reported a new report of 26,000 covid cases as the chinese financial center enters its third week in lockdown government officials vowed to implement an exit plan promising to lift restrictions in areas with no new cases citizens in some parts of the 25 million residents in the city struggled with access to food and basic supplies other cities have intro tuesdayed new curbs with citywide testing among the biggest outbreak amid the consumer prices in china have risen at the fastest pace in three months driven by coronavirus policy and supply chain disruption and impact on the russia and ukraine war in march, consumer prices rose

5.5% and the consumer index 8.3% annually let's bring in the chief economist for s&p. great to have you with us. let's start with the inflation data we got out and concerning figures there in terms of margins on businesses. and then the gap with the ppi and cpi. what is the effect >> china is not facing the kind of high consumer price inflation like other economies are covering from. clearly these high producer prices and rate increasing mean that companies between, especially down stream companies that france faces with the consumer, they have difficults passing on these price increases and that means marchgins are squeezed >> the big issue is the supply chain disruption

companies in china as well viewers most want to know about. for example, the neo electric carmaker, plunged 8% after the supply chain issues. what is concerning with the disruption >> you know, anytime there are restrictions and lockdowns taking place in specific cities, we see there are factories involved and suffering from it and the factory is one of it shanghai has a number of factories. overall, this is transportation and logistics suffering. in addition to people not consuming, there are problems on the transportation and logistic side that are hampering all

activity economically. >> and give us your sense on the way different cities are effected guangou on the seaboard side and northern territories as well how far do you think this is going to spread? how much control do you think the government has >> it seems up until now, it looks like the government is determined to keep going with the low tolerance approach and really force down these covid numbers. it is costly at the moment with the economy and as long as they continue with that, we w growthd production it will have spillover into the global economy >> and the impact felt most by the chinese people and concerning videos and reports spread throughout the weekend with twitter

a recent survey of 31% of chinese are worried they won't pay off debt or rent will see more support from the government >> they learned from other economies and problems with their own economy over the last two years. they feel like there's not much point in throwing money into the economy when people are locked up in the house. the feeling is you first need to open up cities before we start to, you know, conduct fiscal spending there is a commitment to policy support, but i think that is not going to kick in next week or next month it will happen later in the year >> the idea that it might come in where people are let out of their homes and people stuck in homes like in shanghai is it deferred more to the local

government authorities to supply things like food >> definitely local governments are meant to be in charge of the restrictions and covid story also more generally in terms of making sure that people, you know, survive and go to hospital there is a huge responsibility on local governments at the moment on the one hand, they are asked to mitigate the economic and social impact. on the other, they have been told and asked to make progress on the covid front it is a tough job. >> and i'm sure you are asked this a lot at the moment does this new situation cause you to think a recalculation of the government zero covid policy what is the way out of china >> and many are wondering. there has to be an exit strategy at some point. it has to involve more

vaccination of are mormore peop. they have to think about investments. the vaccination of all people is not sufficient and not high enough that will have to be one of the ingredients of the exit strategy >> absolutely. so far, louis, chief economist of s&p thank you. stay with us on "street signs. we will pass our coverage over to the french team for the update on the french elections we will be back after this short break. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

hello. happy monday i'm rosanna lockwood these are your headlines emmanuel macron and marine le pen advance to the runoff with the incumbent moving from five

years ago. >> we can make the choice of hope on april 24th, we can make the choice of france and europe together >> the french have spoken and given me the honor of qualifying european markets start on the back foot while the cac is flat in early trade. banks leading gains with shares of soc gen surging as it exits the russian operations. chinese stocks close lower after the world's second largest economy rising at the fastest pace in months ukraine's president warns russian forces are preparing for a new assault on the east of the country. while leaders from the uk and europe pledge more military support after visiting kyiv.

french president emmanuel macron and far right candidate marine le pen will face each other in the tight second round vote other major candidates who did not make it to the runoff, urged voters not give into extremism and back the incumbent charlotte joins us from paris with a special guest good morning, charlotte. >> reporter: good morning, rosanna. you say in the election with huge implications and internationally. the guest to talk about this is p pascal lamy. let me ask your take on the results. what are the key challenges for the next two weeks before the first round? >> i think what we have is a

formidable fractured french landscape with a strong left and stronger extreme right and sort of strong center this is a totally new situation as parties who were dominating french politics for 50 years, center right and center left, have totally evaporated. it is a big reshuffle. second, i think the race on the 24th of april will be tight. i think emmanuel macron should win, but i'm not sure about this it will depend on the presidential debate that will take place next week which might be crucial for the rest, the two candidates totally oppose

macron is a sort of social liberal and pro european and pro business and pro reform. marine le pen is a very traditional nationalist and protectionist and sovereignist it is very, very polarized debate again, i think macron, at the end of the day, should win he is a well known international leader he has been there for five years and people know him internationally. i think markets will like macron and fear madam le pen. >> the programs of the two candidates what do you think a le pen win would mean for the implications for france what would be the impact of the le pen win and for the eu more

broadly? >> it would be a totally different country. le pen has changed if you look at the detail of her program, it is a fractured program. as far as the economy is concerned, you know, she will basically go back to a sovereignist and nationalist france which i personally believes makes no sense in this world. she has support of the population i don't think she might win, but there is a danger. >> reporter: pascal, it is karen jumping in from the macron headquarters can you ask you about macron's plans for a bigger europe and green agenda he has been pushing? how much of this would change if there is a president le pen?

>> i think you're right. probably the main visible dividing line between mr. macron and madam le pen is europe macron wants more europe he sees a connection with france and europe and the world he has an open mind and he is pr pro-openness madam le pen is the opposite it probably would be a big shock in europe if she was to be elected. not that we haven't had right-wing or extreme right-wing governments in europe. we have one in hungary we have one in poland. in both cases, these countries never, never thought of moving back on their europe commitment. madam le pen probably would.

>> reporter: pascal, can i ask that the french want change at the surface level, but the practicalities have changed and makes it uncomfortable for voters if we see president macron reelected, how much progress would he make around pension reform for the changes with the labor force and tax cuts for business >> well, that's a good question. i think that mr. macron has taken his risks. he has clearly spcampaigned wit the retirement age of 65 which true a majority of french people do not like. he has been clear on this. if he is to be elected, which i believe is the normal scenario, then he would push this sort of

reform forward he has been clear on this and i don't think he will move back. >> mr. lamy, rosann here from london with globalization and trade, many countries, including french, have to recalibrate the relationships with china and relationships with russia, especially with what is happening in ukraine what should the candidates keep in mind with holding the values of europe? >> i think this is what macron would do there is a bit of globalization here and there and globalization going on in other areas. i think if it is about macron's stance, i don't think this will change

he is a pro-trade and pro-openness candidate madam le pen is the other way around what she has said is in part of the french population who believes globalization is not good for them. we have seen plays of this kind in recent years with the uk brexit and trump election in 2016 there is -- there is a sort of popular backlash against globalization in some of the west of course, it is very different with the rest of the world >> so much of europe's integration with russia is to do with energy. how would you assess france's current integration with russia on that front and the eu could back way from the energy imports

in russia. how would that affect thisrace >> i think the eu will back away from energy imports from russia if russian armies remain new hampshire remain in ukraine it is not when this would happen in the case of france, france is less dependent than germany not because of the proportion of the nuclear domestic energy in the case of france overall, i think the russian invasion of ukraine will lead to europe progressively recsevering its fossil fuel relationship with russia. no doubt about this in my mind >> mr. lamy, mr. macron has

continued to campaign on the platform looking at the results yesterday, the bulk of votes up for grabs is 22% for the far left candidate of jean-luc melenchon. some are kepskeptic. how can macron try to appeal to those voters >> i think you are right a lot of the extreme-left voters are not pro globalization. they are less sovereignists than marine le pen. it is a question of degree of course, the extreme left does not like integrated europe they like extreme right and marine le pen more the question is on this left side, which probably will be decided on the 24th of april and how much will they abstain and

how much will they vote for macron i don't think a substantial part will vote for madam le pen the political culture is very, very different >> pascal lamy, former head of the wto. thank you for your take on this first round of elections a lot of stakes domestically in the election emmanuel macron hitting the ground with the campaign and traveling to the north of france and tomorrow to the east we know that the question of russia as well is crucial. and the sympathies of marine le pen with vladimir putin are at the heart of the far right candidate. lots at stake before the election on 24th of april. rosanna. >> charlotte, thank you so much for the coverage. now a look at european markets. off the back of this and other indications, the cac ain france

is up .24% active trading in the french banks which rose after the first round runoff we have soc gen diffivesting. now really repairing some of the gains from earlier we continue to monitor the euro. back to flat it was more strength now. i take that back up .75% against the greenback. we are seeing strength with the euro as we see on the back of the french election. the gbp is flat against the u.s. dollar let's give you a look at u.s. futures. a long way from the wall street open it is looking like a negative start. not good news for those hoping

to recover from the losses nasdaq off 150 points. it was the lag on the session on friday dow jones industrial average down s&p off 28 points. it could still make a recovery let's give you a look at what is coming up on the show. prospects of peace and moscow looks to revamp on the efforts in the east of ukraine and western leaders go to kyiv to show support we will bring you more after the break. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

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the eu foreign affairs chief has warned of intense fighting in the donbas region in ukraine as russia steps up the efforts extra sanctions will always be on the table the german foreign minister saying there are massive war crimes inukraine by russia and evidence must be secured

and vonder leyen telling cnbc that the country belongs to the ukrainians adding that this could expedite the application to the eu. and russia appeared to launch a sign of intent with u.s. officials claiming moscow has appointed general alexander to lead ground operations he was in charge of helping the syrian regime defeat the opposition chechnya leader saying moscow intends to launch attacks on kyiv and in the eastern region which saw more shelling over the weekend. nbc's raf sanchez is in lviv and has more this is not what we want to hear, raf.

intensifying attacks >> reporter: that right, rosanna. they both agree that this war is turning in a new phase in the east ukrainian foreign minister saying over the weekend that ukraine has won the battle for kyiv, but battle for donbas is just beginning we are seeing indications of russia bearing down on the east and stepping up attacks on kharkiv and mariupol and city of where the train station was attacked the russian tanks and artillery now eight miles long to the east of kharkiv vladimir putin shaking up the invasion of ukraine and putting

alexander in charge of ground forces this is the man who earned the nickname "the butcher of syria" when he was sent by the president in 2015 to that country. he carried out vladimir putin's orders with brutal efficiency. he turns the tide of battle decisively in the name of bashar al assad he and his troops levelled aleppo they killed thousands of civilians in the process this is an extra extremely worrying sign about what may be to come in your city british intelligence says the russians are turning to theactis to will lead to death. also using chemical weapons and

unguided weapons dumb bombs you drop from a plane and they fall where they fall hospital, train station or school very invesworrying signs volodymyr zelenskyy is calling for violations already committed and violations he expects to come rosanna. >> that is what is most needed raf sanchez joining us from lviv assessing how companies are dealing with all of this, unicredit delaying the earnings until the 5th of may the italian mabanking giant cou suffer 7 billion euro loss in the worst-case scenario of the russian business soc gen will stop in russia and

subsidiaries the transaction which still requires regulatory approval is expected to cause a 20 basis point hit. the french bank has said it is diff dividend buyback share hasn't change we have more now from karen with the latest in paris. there is no time to waste on the election campaign. some cabinet ministers here at macron headquarters. i spoke to the french ministry leader and asked about the challenge from the far right >> we need to show how macron is able to answer the questions of the french people. what we can see is the far right project is clearly unable to be

delivered with promises. and the claims of how it tackles the issues of the french people. i believe with a set of policies we launched regarding energy and raw materials pricing we are able to explain and show with prove that we have a far more sustainable project and effective project that mrs. le pen. >> how are you feeling about the first round results? how do you feel about this leading up to to the second round? >> it is better than expected and better than 2017 which means that president macron is delivering what he says and is the most credible candidate for presidency however, we need to listen to

what he says to tackle the issues of the french people because of the covid crisis and because of the ukrainian crisis. this is not so easy to tackle all of the issues of the people and to have this capacity to reduce their level of, you know, anxiety and fear for the future. >> agnes pannier-runacher talking to me outside the headquarters i think it is focusing that it is an uphill battle over the next two weeks two weeks is a lifetime in politics emmanuel macron with a strong lead a fortnight ago as we see the battle in ukraine and trying

to negotiations an outcome that has faded now with the crisis the team now meeting inside. they are regrouping and coming up with the strategy emmanuel macron in one of the regions today trying to seek support. rosanna, back to you. >> thank you, karen, for your coverage on the ground from paris. now tesla ceo elon musk will not join the board despite exe expec expectations announcing that musk turned down the position on saturday we see the shares down in pre-market trade that is everything for the show. i'm rosanna lockwood "worldwide exchange" is up next.

it is 5:00 a.m. on wall street here is your top five at 5:00. twist in elon musk's twitter drama. get the coffee ready short, but busy trading week with the data all on tap including what could be a bombshell inflation number. getting grim in china. another big city begins to lockdown this is some shanghai residents struggling to get food and they are getting angry. we are live on the ground. lockdowns sendin