ce, under these circumstances, after katrina, it was reprehensible, what nagin did. the city needed someone to be a true leader and he let everybody down. ♪♪ -- captions by vitac -- good morning welcome to "street signs." i'm julianna tatelbaum with rosanna lockwood these are your headlines stocks in the may echoing losses as final pmi point to a fragile recovery. u.s. equities look to make a good start after the heavy losses with the crucial week from the fed ahead >> bonds can swindle everybody

inflation, i should say, swindles the bond investor it is the person who keeps cash under the pramattress. shares of credit situation with losses as it sues over the russian oligarch connection. and eu oil embargo timeline as the energy imports are put in question now getting across the eurozone pmi which is breaking over the wires april final manufacturing pmi for the eurozone at 55.5 versus

55.3 a small markup you are also looking rather at the index pmi manufacturing at 55.3 sorry. just get beinting these across wire the euro/dollar at 55.5 versus 54.1 julianna, these are the final figures. we are not expecting a huge amount of change for france, the pmi manufacturing at 55.76 the flash is 55.4. the italy numbers with geoff and steve running over those as well not a huge amount of change, julianna still expansion territory. just small notches upwards. >> it is interesting once again we are seeing slightly better economic picture than feared with the final pmi manufacturing for eurozone overall at 55.5

versus 55.3 expected yes, factory output stalled in the eurozone things don't seem to be as bad as initially feared. one line i would throw out from the chief business economist with manufacturing output at a near standstill in april companies not only reported problems with component shortages brought on by the ukraine war and the economic outlook hitting demand that is the question moving forward. how strong will demand be in the face of higher prices. we have the german data. manufacturing activity fell in april and weaker demand weighed on the economy the pmi in april fell to 54.62 lower than the high of 56.9 in march. let's get to annetta for more on

the german data. >> it is not as bad, but the first time we see the falling demand in manufacturing since the initial covid shutdown in 2020 currently, still going somehow at a robust pace it is only a matter of time before this trend and new orders will manifest itself or feed through to hiring activity what they are also saying is the second quarter, the economic activity will feel the drag from those slowing in the manufacturing space on the germany economy of the it is, of course, in germany, a bigger chunk than other countries

because germany is depending on the manufacturing industry this is an early sign that economic activity may be dampend a bit in the second quarter and how the supply change bottlenecks will be easing or worsening of the war action in ukraine and also depending on what happens with the covid situation in china any escalation in the energy crisis would also serve to increase the risk. essentially it is for now still seals to be like a robust manufacturing activity above 50. there are so many risks there that this could change >> it is still in expansion territory. i'm reading it is falling to a 15-month low in april. there is a mark down in the

german economy minister saying the country is not there yet with the total boycott of russian import he cannot want to trigger an economic catastrophe this as the leaders meet to discuss the next round of sanctions against russia they urged brussels to find a solution for each member state giuliani >> rosanna, we have the dax down 1% we are opening up after a brutal selloff. nasdaq with 4% lower in just one day. consumer discretionary hit hardest. the european markets have opened

may deep in the red. this comes after the wall street close on friday which set a negative tone for trade this morning. here is a picture of the markets. uk markets closed for the may bank holiday dax down cac down 2.4%. and the ftse mib was down at the start of the program five minutes ago. stabilization there. heavy losses ibex is down 1.8%. turning to the u.s. dollar, this has been a key part of the market narrative the u.s. dollar was the best performing in the month of april. euro against the greenback we are trading at 105.27. we have seen a substantial selloff in sterling versus the

dollar the last trading session. let's see how wall street is poised to open after friday. we are looking at the close on friday as i mentioned with the nasdaq dropping more than 4% s&p dropping 3.6%. the dow dropping near a 1,000 points if we can get to u.s. futures. there you go of a bit of a rebound selling will abate today if the levels hold. dow jones industrial average with 145 point jump at the open. a bounceback nothing in comparison to the selloff on friday. let's see if we can hold on to that. now let's think about berkshire hathaway warren buffett saying stock markets are speculating. he made the comments during the shareholder meeting saying wall street is like a casino.

>> capital markets are supposed to do. other times, it is totally a casino it is a gambling parparlor that existed to an extraordinary degree in the last couple years. encouraged by wall street. the money isn't turning over stocks some people say how wonderful you've done buying berkshire and 1965 your broker would starve to death. wall street makes money one way or another catching the crumbs that fall off the table of capitalism and incredible economy. nobody could have ever dreamed of a couple hundred years ago. they don't make money unless people do things and they get a

piece of them. >> everyone's favorite act buffett giving his thoughts on the price pressures on investors. >> inflation, i should say, swindles the bond investor, too. it swindles the person who keeps cash under their mattress. it swindles almost everybody the problem, if you have a business that doesn't take any capital and let's say the dollar is a shaky at 90 things cost ten times as much. you've kept your relative position most businesses take some capital. the federal reserve is expected to aggressively raise rates. this after jay powell says a 50

point hike is on the table the fed's preferred measure of the price index rose 5.2% in march. i want to welcome eric nealson thank you for joining us first, i like to get your take on the massive turn in sentiment we have seen over the last couple trading sessions. on friday, it was a difficult day for wall street. now in europe with heavy selling. from the economic perspective, do you think this turn in sentiment is justified >> i think it is i think what has happened is obviously a lot of issues with the inflation in america and europe a lot of underlining worries of the war and what it means. last week, the u.s. and europe

gdp numbers and we saw the personal outlook on friday from america looked pretty bad. you are seeing a tipping point where people are realizing that this thing is not going very well meaning the global economy he is not in good shape. you always have the risks, but because there is no other place to go, people stayed it looks like it is about to change now >> does it make sense for the federal reserve and possibly the ecb to hike interest rates in the growth downgrades? >> i think there is a reasonably good argument to do it 2/ 2/3 is economic demand driven. it is sort of the one bright

spot, although the latest numbers are not so good. it is still hit solidly. in europe, i fail to see the rationale. we have from supply shops in america, you have excess growth in europe, we have no growth 1 or 2%. maybe it will give more wages and that is almost given no real value that it will be excessive compared to the inflation numbers and productivity numbers i think the ecb is giving this notion that they will tighten policies i think it is more politically driven decision that they decided with this instant inflation is the window of

opportunity to power the ecb or b p pick apart the ecb of the i don't think it is based really well on the economic outlook >> and something le gard is saying it is based on the economy. the global economy not going well the ukraine war not going well for putin. miss mi miscalculation. >> it is important to stress the issue that we can disagree on the outlook. we don't know. what i should have said more clearly on my concern about the ecb is i think the odds are skewed to making policy mistake by tightening. who knows?

it is -- the thing with the war in ukraine and what it means for the european economy, there are two things the commodity prices, but what share of the higher commodity prices are due to the sanctions in the war and others due to the investment of the last ten years? research suggests half or more than half of the excess of commodity prices it is a smaller part to what we are looking at for the war and uncertainty. and the sentiment and you saw the german consumer sentiment numbers last week hit the lowest on record. people are worried and businesses are worried there is a society around it and it doesn't look like it is going away big stuff that we really don't know how to forecast well. >> as you mentioned, that under

investment in the transition toward other forms of renewable energy in a way from the hydro carbons. it makes the next ten yeane yeas complicated? >> that is right it is a difficult spot we have, as you said. we have ten years or about of under investment coming into the war as we saw with the tensions build up europe did not build up big gas and oil reserves which is clearly a mistake. here we are. as i understand it, the europeans are about to agree tomorrow on a ban on import of russian oil to the end of this year they have to carve out something

from hungary the germans are on board you saw germany shifted to being reluctant to accepting and cutting off by the end of the year then there is gas which will take somewhat longer i don't know if this will come about this winter with rationing. if it happens, it will happen in some industries. not for the may be in for a difficult winter there is a war on our door step. it is a really, really complicated and scary. how do we react? i'm not a military person. i don't want to pronounce on this the fact is that the economic outlook, because of sentiment and commodity prices pred predom predominately, are risky and difficult right now. i think the economy needs

support and not the opposite >> very well put erik neilsen, thank you for your time now a group of investors are suing credit suisse accusing the bank of breaking laws and misleading in business dealings connected to russian oligarchs the law firm says the class action covers anyone who bought credit suisse dealings we will continue to monitor that story. hcb's shareholder has asked the bank to split between asia and the west arguing an independent business in hong kong could generate great profitability and autonomy sources who spoke to the economic director says it maintains the strategy which is

efficient and focused on driving high return despite the h headwinds. german authorities raised deutsche bank in frankfort over money laundering the largest lender said the raids were linked to the reports that it had been flagged by the bank the spokesman for the frankfort prosecutor says they could not provide further information while the investigation is ongoing. deutsche bank shares are down 2%. airbus landing a jet order from australian carrier kwqantas a record-breaking 20-hour direct flight it is hitting the skies in 2025. qantas doid not release the exat

numbers of the deal. >> ten hours is a long flight for me 20 hours a holiday? tui has made 1.3 million bookings in the last week. the executive director said the numbers point to the strong recovery tui saying that some holiday bookings were approaching pre-covid levels n now adler board has offered to resign after the firm's 2021 accounts still to come, house speaker nancy pelosi pledging to support ukraine president zelenskyy during his visit to kyiv this as russian troops visit the offensive in the south and east of the cntoury we will have the latest after this break

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u.s. house speaker nancy pelosi is in warsaw meeting with the polish president she is thanking the polish

allies for the cooperation zelenskyy saying he is pessimistic of the cease-fire with russia. now this as efforts to rescue residents in the city of mariupol continue. already more than 100 people have been evacuated, but more than 100,000 are believed to be in the city which is under heavy attack matt bradley now joins us with more matt, day 68 what is the latest >> reporter: we are here in zaporizhzhia this is a shopping center for peoplein mariupol. people have just arrived in the buses. this is within the place where i

am now in zaporizhzhia this is not people coming from the steel plant where we are still waiting for those people to come. they have endured quite an ordeal they are coming out now. as you can see, the press corps is here to greet them with agencies like unicef and red cross and doctors without borders. these people are processed by the police and local officials we don't know where they will go after this this is the main processing center for people coming from all around the mariupol region we spoke with people who were here earlier today these people came out here from buses. we did speak to people coming in their private cars they took advantage of the cease-fire when they heard the guns falling silent they decided to drive themselves

to safety here to zaporizhzhia that is what we will see all day long as people complete journeys from the war-torn areas from the east and south and here to safety the people we spoke with earlier described a difficult journey. one which they had to drbribe people on the roads and bribe soldiers they said they gave them money and hard liquor to pass through russian check points to make it to where i am now. everybody here, whether coming from mariupol or under the steel plant or from surrounding towns and villages, they have all endured a terrible journey guys >> unbelievable displacement of people thanks, matt bradley of nbc for that story u.s. first lady jill biden will travel to romania and slovakia to meet with service workers and humanitarian

workers. biden is expected to meet with officials in both countries. the visit will put her within miles of the ukrainian border. russia attempted to make last-ditch dollar payments on its debt tapping into the reserves to avert default. the finance ministry made payments on bonds in dollars which is a u-turn to only pay in rubles the funds have been transferred to the uk based branch of citibank the eu is reportedly drawing up plans for a fresh round of lending to ukraine this after the vice minister said they were looking to speed up the payment under the existing support package the financial times report was to top up the funding or issue a

fresh emergency loan this after kyiv estimating it will need tens of billions. coming up, stupid and evil warren buffett and charlie munger continue to bash crypto we'll have that story next

welcome back to "street signs. i'm rosanna lockwood alongside julianna tatelbaum these are the headlines. european stocks start may in the red echoing losses in asian equities. u.s. equities look to make a fresh start after april losses warren buffett warning no one can escape the bond pressure >> inflation swindles the bond investor, too, and it swindles the person who keeps cash under the mattress shares of credit suisse fall

in europe after the lawsuit over the connection with russian oligarchs. and eu warnings against triggering against catastrophe as berlin phasing out the time for russian energy imports on this bank holiday for many of you, but not for us on cnbc dax in germany with red and feeding into the index you see it down 1.3% we had pretty weak economic data out of germany suggesting there may be a slowdown manufacturing index and the energy situation there of course, we had latest lines this morning we are not at resolution with the import of the russian energy into germany

the impact into the auto sector. it will be large let's give you a look at the european markets london off the board today bank holiday for many in the uk. however, you look at the cac down almost 2% in france a bit of the trace in ftse mib it is now gained a little bit since then ibex is the same we had the shocker in the equity markets late in the day stateside on friday. huge selloff you see red in asia. that is feeding into red in europe let's look at alternative asset classes. euro is down you can see it is around .10 the greenback is doing well. julianna explained last hour you see the strength against safe haven yen nothing that interesting

the ruble holding well against the dollar the futures here this morning. it could be a bit of recovery. it will take a lot of recovery to make up friday losses 96 points for the dow. s&p could make a modest show julianna let's talk crypto. let's look at bitcoin and how we have been trading in the asset over the last month. you can see right now in the latest trading session, we are 2.5% higher. in the last 30 days, it has been a difficult run for bitcoin. down double digits down 18% on this chart the reality is bitcoin has been range bound for a while now. i think one of the key questions for investors with this asset is what will cause bitcoin to bounce out of its current trading range?

$39,000 currently. berkshire hathaway's chairman warren buffett warned of the volatility of cryptocurrency >> whether it goes up or down over the next five or ten years, i don't know the one thing i'm pretty sure of it doesn't produce anything. it's got a magic to it and people attached magic to lots of things. >> charlie munger agreed with buffett calling crypto stupid. >> i have some advice for you, too. when you have your own retirement account and friendly adviser suggests you put all your money into bitcoin. just say no. >> pleased to take this conversation further with ceo of nex.

antony, i don't know if you heard them talking about bitcoin. the audience scoffing and laughing it represents the other side of the access to the bitcoin world. what do you think when you hear comments like that >> i love the six minutes of free advertising of bitcoin and cryptocurrency the key take away is buffett doesn't need bitcoin bitcoin doesn't need warren buffett. as a matter of fact, bitcoin, as compared to buffett, will not trash talk you bitcoin for the same period of five years delivered 831%vestins wa warren, those $25 for all the bitcoin in the world, bitcoin is out performing berkshire hathaway for the next five

years. >> thanks for that response. you say 831% return in the last so years, but that feeds into the buffett theory it is turning into the casino as he said. is that not volatility playing off? >> there is volatility bitcoin is an asset in the long run. you see it over one or five or ten years. it is out performing everything else obviously, it will not be 100% of retirement funds. just as fidelity funds you can invest up to 20% in 401(k) you can allocate a small percentage point single digits because this asset keeps on delivering >> antoni, i know you spoke to our colleagues in paris and

bitcoin potentially reaching $100,000 in the next 12 months what gives you confidence if bitcoin falls back from here why the $30,000 mark is the floor? >> next, we have a very large desk we deal with institutional investors. i can tell you we have a huge number of institutional orders right now. should we break below that range that you just described, julianna, $30,000, we have solid buyers coming in secondly, while we are range bound, there are companies such asovate and bring out important infrastructure and drive the next cycle of instit institutional. lastly, the fed. they are going to be back into

easing very soon >> well, it's an interesting call you think the fed is easing soon clearly right now, the path is higher from here there are a lot of people nervous about what it means for bitcoin. when the fed does hike interest rates, it could be doing 50 basis points this week what will that do for demand for bitcoin? >> here is my take the fed raised .25%? the s&p is down 40%. the nasdaq is down 20% what will happen does anyone believe we will go to 3% or 5% or 6% as deutsche bank states the fed rate hikes i don't think so as soon as that happens, we will see equities i don't dare look at the bond market and what it will be doing. last time we had inflation like

this paul volker raised rates to 20%. there is lack of political will. as soon as we see massive corrections across assets. the fed will have no option but to begin easing. >> i want to come back to bitcoin within the cryptocurrency universe. a lot of people do believe in blockchain they don't believe bitcoin is a long-term winner what gives you the confidence that bitcoin will remain a frontrunner in the crypto world? >> it has been around, you know, more than a decade now it is going to be around for a wh while. the adoption it is the mandates we seize and institutionals and changing how we handle money to acquire bitcoin. you can see gold pretty much flat the last two years. failing in its function as

inflation hedge and while the run up to the inflation expectation happening, bitcoin rally up close to 500% i just see the influx of new people coming in we havehave been working with fidelity for a while now we are working doing the same for the retail clients this is 80 million new clients just this month, we closed out a huge partnership with mastercard the world's first crypto-back payment card we had the ceo all over social media being happy about it we are bringing in close to another 4 million people to the space. adoption right now is below 5% if we double or triple that which is not that ambitious, there is plenty of good things that happen to bitcoin. >> i suppose that could lay some concerns if it starts to be used more widely as a means of

payment. that is a concern for many antoni, thank you for joining us. still ahead on "street signs. u.s. futures rally ahead of the aggressive rate hike expected from the central bank. we'll have more after the break.

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when they talk with conviction about our stocks and conviction is born out of research, they think that conviction translates into perhaps arrogance or hubrus that we can never been wrong. that could not be true we make mistakes all the time. if you don't take risk, you will not be able to generate the returns. >> arc invest cathie wood speaking there ark innovation losing 30% month on to date the worst month ever since inception back in 2014 of october. julianna, sometimes you need to

say things with such confidence, people believe conviction. >> that is a central pillar of an investor. let's look at u.s. futures if you had conviction, friday offered a real opportunity to buy into a lot of the u.s. stocks at more attractive prices especially in the tech sector. we saw selloff in u.s. stocks. nasdaq dropping 4% on friday the s&p dropped 3.6% dow dropped nearly 1,000 points. we are seeing stabilization. dow jones industrial average looking at 110 point jump at open nasdaq and s&p seeing green there. of course, will this remain the case is the worst behind us earnings season continues this week after big tech weakness came to define the reporting the picture is not as bleak. 80% of the s&p 500 companies that reported so far beat profits. key names out this week with

results include airbnb and e-bay and pfizer we have eric with allianz joining us now eric, what is the key as we are halfway through earnings season? as i can make the generation, demand is robust as customers are absorbing higher prices. is that the case moving forward? >> good morning. i think we are more concerned about the price paid for earnings than the companies. as you said, the balances for the time being is positive and doing relatively well. it doesn't solve what we have with evaluation. >> i wonder if investors are complacent over the pressure

over what is to come we saw friday that things will become more difficult. >> well, i think there is enough evidence and statements by companies that the situation as you say is getting tougher and tougher with the pressure on >> i have to ask, eric, about mega-cap tech. it was a success story during the pandemic even the companies with more estab established legacy companies like amazon. tumbling 23.8% in april. what's going on there? >> well with, i think it's re-pricing it is as good a company today as 12 months ago. what is changing is the price that people are willing to pay for it

i think -- sorry >> eric, in terms of repricing, it is due for repricing. how should investors be positioning at the moment? >> sorry, i didn't get your question >> how should investors be positioning, eric, if it is a case of repricing happening? perhaps things are over valued >> what we believe is that even though as you said prices have come down significantly. we have not restored value yet why is that? it is because as we know, long

term he can expectations are ext >> eric, we are bracing this week for the federal reserve to raise interest rates by 50 basis points many are expecting more hikes to come from here do you see the path that's expected right now going ahead or do you think the fed may be forced to reconsider down the line >> i see we have to consider down the line especially if markets are doing what they are currently doing now. i personal struggle to believe that april of 2023 that the fed fund rate should be 3% that sounds excessive. >> eric at allianz, thank you. the federal reserve is widely expected to hike rates on

thursday this after jay powell confirmed a 50-basis point hike is on the table for the meeting as inflation spikes across the u.s. the price index rose 5.2% in march. looking at u.s. futures, the dow jones industrial average at 93 points s&p at 13 points it could be a bit of a recovery, julianna, much-needed after the selloff on friday. we have a lot of data coming out this week. pmi for the eurozone later in the week, i'm looking forward to the boe on thursday we were doing decision time program after we get fed chat on wednesday. it feels at this point that we know how these central banks will react we know the fed will react we know the boe will do something to get the rates higher

the ecb will do nothing until tapering timeline. the markets should have comfort from that, but we still have volatility >> fromthere is a lot of convicn over the next policy meetings. before that, it is an open question i thought spoking to erik at the start of the program, his level of the conviction and the ecb is not behind the curve with the approach to policy rather right where they should be given the wage pressure doesn't exist in europe like it does in other parts of the world. likely the uk and europe it makes sense to raise interest rates this week and raising more throughout the year. thinking back to last week and the conversations that were going on the ceo of mann group spoke to geoff. he said he doubts the central bank will have the conviction to

move enough this year. that echo what is we were discussing with erik earlier the fed may not be able to execute on all of the hikes priced in once the economy absorbs the higher rates. >> i was fascinated to hear bitcoin and the fed saying the only game in town at the moment. when you think of the crypto people and how they speak, if you excuse that, they talk about antithesis of the world. as a volatility player, i think bitcoin is interesting some say it is a gold alternative. interesting that gold hasn't featured much in discussions perhaps we should look more closely on the show. i say this, i'm not a trader on the markets. you have the banking background. i would not be the one picking stocks right now

very, very tough market to be in >> nor would i, rosanna. when you see huge moves like on friday, it means a lot of funds will be suffering and caught wrong footed the impact of that is that some funds will have to close some pods within funds have to close. they have to exit positions. when this happens, it has a relatr ripple effect. that creates a pain cycle which is difficult to weather. i would not necessarily want to be a stock picker right now, rosanna. there are better value opportunities after the brutal selling. >> talk about funds not performing what about the ark etf in cathie wood said it is all about

conviction she says don't doubt conviction despite the selloff in mega-cap and tech she creates headlines, cathie wood she has a good way of saying if you say things enough, you can get people on board. the performance has a lot less to be desired. let's give you a look at european markets in the cesessi. london not on the board. ftse 100 off for holiday the cac in paris is down almost 2% ftse mib retraced losses down over 1.5% ibex off 1%. markets off for public holiday today, giujulianna new york is open and currency markets will do well let's look at the dollar firmly in forkcus.

we are seeing strength in the dollar versus the euro euro trading at 105.29 sterling is flat the greenback gaining ground versus the yen just under 130 u.s. futures interestingly, as european markets have found stabilization, u.s. futures have pulled back a little bit still in the green not quite as strongly as the start of the program a lot can change between now and the market open. i would advise you to stay with cnbc that's it for the show i'm julianna tatelbaum with rosanna lockwood "worldwide exchange" is coming your way next. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you

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it is 5:00 a.m. at cnbc. here are the top five at 5:00. call it april to forget. stocks coming off the worst month in years with futures pointing to a rebound today. and not holding any punches. what scott minerd thinks ahead of fed before the decision on wednesday. and warren buffett's buy the oracle of omaha loaded up on this year and more headlines from the berkshire hathaway weekend. shanghai reopens from th