recently, just recently, like yesterday. like, in other words, put your money where it makes money, not where it's back in the drawer, waiting for bill mason. [ laughs ] good morning welcome to "street signs." i'm julianna tatelbaum today, we are live in stockholm, london and paris these are your headlines finland and sweden making historic break joining nato which is a shift in politics the prime minister tells me the move is the right thing to do. >> we think this is best for

sweden and the swedish security. this is what we think is best for us what kind of retaliation there could be that's up to russia and president putin. volatility carries over into a new week as european markets open in the red. the nasdaq is poised to bear the brunt of the selloff covid controls take a bite out of the retail and industrial sectors. and g76stating that russia s waging a wheat war food security is the topic in international talks. >> food security beyond prices and the other is the availability and flow of agriculture trade is something that we have been looking at closely.

we have been talking about it in the context of the ttc and we will have it coming up very warm welcome to "street signs. let's kickoff with finland and sweden who declared they will apply to join nato a move that will shake up the political map of europe. sweden and finland's decision will double the military alliance border with russia. the prime minister believes the government's decision to join nato is strong >> we have reached an important decision and cooperation that we and the government and president and government we hope the parliament will confirm the decision to apply for nato membership during the coming days. it will be based on a strong

mandate. >> meanwhile, steve spoke to the british prime minister as they announced their bid for nato membership >> we think this is best for sweden and the swedish security. it is not something against russia, but best for us. what kind of retaliation there could be that's up to russia and president putin. of course, we see it could be a possibility of cyber attacksmeas it is all up to them >> let's get to steve who joins us from stockholm. steve, this is a major development for sweden and the broader european region. of course, nato. sweden is neutral throughout the cold war as was finland. what pushed sweden over the edge to join the nato alliance?

>> reporter: it is stunningly simple after 200 years of non alignment. the swedes and finnse actions of actions of one regime. vladimir putin, the kremlin and, indeed and the russian people waging fwar. this is not a war of the russian people versus ukraine, but russia invaded and russian state that invaded at the moment as such, finns, neutrality for a long time, but aggressive and hard-fought wars with the russians during the second world war with a strong account and lost in the end 10% of their territory. the swedes, the swedes haven't had a war where they started a war with anyone since the

napoleonic wars. sweden would not move about finland and finland would not have moved without sweden. sweden lost one-third of the t territory. it is still an independent state. the history of the three are li linked the geography is linked. the land doubling with nato and russia direct land barriers and borders. the fact of the mastter is the border between finland and russia the finns have felt safe because of the actions of russia, they do not feel safe anymore. a bigger move for the establishment meeting and

debating in the magnificent building behind me in central stockholm. i spoke to other ws who called other partners we understand they are surprised of the comments from her because they had some form of implicit knowledge. that is another issue for another day. let's listen to the tape i got yesterday at social democrat headquarters where i spoke to the foreign minister here in sweden i asked her what changed pretty much your question. listen in to see what she had to say. >> we have seen how russia is behaving with a full-scale invasion of the friendly, democratic non aligned country

and the way they are conducting the war. it is war crimes on civilians and civilian infrastructure and bombing of schools and hospitals and theaters this has made us take the decision we will not be secure without applying for membership in nato. >> do you believe there will now be a remilitarization of the baltic do you think there will be a more nuclear baltic? are you concerned with that esca escalation >> we hope there will not be an escalation during the period of transition before sweden and finland get full membership, there will be a heightening of tension in our area we also foresee more military troops close to our borders. >> minister, sweden has been working with nato for a very long time anyway we know that

what will be different with the membership of nato apart from the risks associated with article v? >> mainly more deeply defense planning that is one of the key issues. >> reporter: and in my conversations with prime minister linde, it is important to know this country has been neutral since 2009 it hasn't been neutral where the relation of mine was working with nato and flying in the 2000s. it is not completely out of the bal ballpark to go into nato membership is huge for the country we talk about the social democrats. marched against nuclear weapons and u.s. military in the 1980s remember the change we have seen here the man you will hear from in a moment, up until the end of last

year, said no way we will join nato listen to the defense minister i literally want to know from him what will change and make sweden safe and what will be different if you get nato membership >> the start of the war in 1939. it is a great thing that happened it is a brutality and cruelness and evilness that is over our borders. i think we have a big change we must feel we have a big change and we must be ready. ready to act in some way >> final question. the russians have been testing sweden's borders for a long time do you expect it to go to a different level with cyber warfare or flying planes into your territory how will it manifest >> it can't happen >> it's going to happen in a

more meaningful way according to the russians already. >> i don't know what they can do it will happen they can make cyber an ctattack. they can make threats and use military tools they have the arsenal they can use. it hasn't happened yet we have to prepare ourselves and we need assurances to handle that situation >> reporter: that is hultqvist, the defense minister, speaking to me yesterday. julianna, the building behind me, i'm doing a disservice by standing in front of it. it is magnificent. one swede asked me yesterday, will well have a referendum? we don't know. they don't have to do that to apply for membership you have debate today and all parties think it will be better

for the country to join nato i think it is done and dusted in many ways. going forward at the end of june, we have a key nato meeting. that will be absolutely fascinating to see if there are turkish objections by then at the madrid meeting in late june. then you will get a national vote on this because we have a september general election the social democrats will not want this to be an issue of political consensus. they have potentially see a threat from the left for people who don't want to join and others from the right. it is all to play for in stockholm. back to you, julianna. >> steve, before you go, can you detail what turkey's concerns are and the chances that turkey holds up membership from finland and sweden >> reporter: this is turkey to

put it in context. lost the order from the u.s. military because it was taking on missile defense systems you can't have russian air defense systems and f-35s from the americans. you understand that point of view let's remember of all of the nations in nato, turkey has the most contentious position. it is also one of the most important nato members it has one of the largest militaries on the planet it has control of the straits which is key for the black sea and work around to the crimea and to the south ukraine as well you can see pivotal politically it has been where east meets west they believe and one thing about the country, it isfbeliefs.

they have taken on a number of refugees that thas created a lot of refugees they identify as ethnic kurds. i won't get into the why, but he is actually saying and i'll quote with this country has become a guest house for terrorist organizations. i use the exact words. she pretty much brushed me aside. we will be engaging with all par partners erdogan is waging a war against the people's kurdish party which borders syria and a large part of the region and turkey he is saying that some of the activists are finding a welcome home in finland and sweden i won't go into who is right or wrong. a massive situation.

erdogan believes the swedes and finns are facilitating the pkk that is it in a nutshell. >> steve, thank you for breaking it down. for more on finland and sweden's bid for nato membership, go to cnbc.com. coming up, chinese economic activities falls in april as the covid lockdown weighs on the economic and consumer consumption. we will have more after this break.

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welcome back to "street signs. china economic activity fell in april as covid lockdowns weighed on consumption industrial output fell 2.9%. shanghai will allow businesses to open again today on a limited basis as the city preparing for gradual reopening. shopping malls and supermarkets will welcome customers after six weeks of lockdowns

this is after the infections dropped to the lowest level in 50 days. the eu is slashing the growth outlook and raise inflation expectations in the spring forecast today. b . the governor of the central bank of france said the ecb june meeting will be decisive ahead of the active summer for monetary policy. villeroy says weakness in the currency goes against price stability goals. we have seen market reaction from the comments. bond yields are ticking higher there is a look at how 10-year bond yields are trading. the bund trading under 98 basis points former ecb president told cnbc the exact path will become

clear in time, but ratesare going in one direction >> we are, again, in a different universe so, they will do what it has to do it seems for the market, what would be extraordinarily important is a decision to go up whatever the amount of the increase is here again, i don't foresee any kind of particular figure i foresee certainly the acceleration of the interest rates going up because of the situation and because of the necessity to anchor inflation expectation. now on equity markets. european equities are trading lower. we bounced off the lows this morning. let's put this in context. last week, we saw european equities end the week lo

lower .80% we saw positive momentum on friday lifting equity on both sides of the atlantic. european stocks out performed the u.s. counterparts by a wide margin the dow ended 2% lower s&p 2.4% lower nasdaq was 3% lower. the sixth negative week in a row. european markets, again, ending 0.8% lower holding upper than what we are seeing on wall street. we have patches of green on the board. things have improved through the course of the morning. we have the cac and dax trading lower. ftse 100 up 13 basis appoipoints we have an increase in basic resources. on that note, let's see what the breakdown looks like we have at the top of the board is basic resources up 1.6% interesting to see that strong

performance there given we saw negative economic data out of china overnight. the telecom sector utilities and oil and gas. we have more selling pressure in autos down 0.7% and household goods down 1% p. looking at forax markets the dollar strength has been one of the big themes. we are seeing more dollar strong versus sterling. below 1.22276. we are up about ten basis points to 104.20. very low tmorning.

warning about the impact of the weaker euro on the price stability in europe. the greenback trading slower versus the yen let's welcome somebody who knows something about currency we have the head of fx at citi great to have you on the program. great to get you on the views. how are you feeling about risk assets broadly speaking at the moment >> well, i think we're in a relatively proper environment by that, i mean, our view is basically that central bank tightening and concerns with china and eurozone growth. you have inflation and potentially some concerns of the fed falling behind the curve on the whole, you've got to mix

that which suggests we will see risk assets. it will be a temporary decline in yields. >> i want to dive into individual currencies. if we start with the euro. we havehave seen a pop this mor villeroy about the price instability in europe. do you think we will hit parity versus the dollar? what camp are you in with the euro >> that is a nice question first, i don't think it is a special thing about parity just a wrong number. following the break that we had last week below the 104.72 which was very strong support level. the momentum definitely suggests

we have a lot of risk to the down side. is euro cheap? is euro under valued i think it is. i think it is getting cheaper by the day. no question. this is not a market that pays a lot of attention for now this is mostly driven by momentum, of course. there are a lot of market concerns in china and the geopolitical concerns. i think chances are we will see lower levels and then at some point, when that point comes, it is a bit difficult right now when you will start seeing the ecb lifting rates because they have no other way than actually to be aggressive on the face of high inflation and high inflation expectations we will get a bottoming out. is it parity it is102

>> i think we are having a little bit of a technical issue with your feed hopefully we can get you back. i think you're back with us now. to continue the conversation about the euro you were just speaking about the euro breaking through the key support level of 104.72. what is the next support level if you have a wager? what could the catalyst be for people putting more money into the euro is it going to be the ecb raising rates or could we see something else >> well, i think the next support level is around the other low that we've had around 103.41, i think. if we break through that, then parity becomes really a clear possibility. in terms of the catalyst for the down side, i think, look, i think euro is largely growth leverage currency.

anything that has to see a relating lower in chinese and eurozone growth or potentially risk by the fed, that is the two main catalysts that would push it significantly lower i will say that. euro is under valued at this level. there will be a time when we will see quite a big rally in euro we're not there yet by any stretch of the imagination i think levels close to parity could be important in europe. >> i'm curious what your clients are saying at the moment about euro and currencies more broadly. what are their key concerns right now? >> well, the number one concern that everybody is talking about is inflation and how central banks are behaving on the back of this. meaning, yes, we have central bank tightening being priced nonetheless, if you look

historically what inflation is, the last time for example, where this inflation was prevalent in the u.s., the fed rate was close to 9%. we have a peak price pretty much close to around 3% one of the main elements and key concerns for clients right now is definitely inflation. erosion of money and how central banks are going to respond to this i think on the whole, the general view is that central banks are falling behind the curve. this is going to turn out to be a very tricky situation. oil prices is another thing. it is linked to inflation and it also is linked to geopoliticals. the other thing that a lot of clients are asking is basically how is the ecb going to deal with the widening in the peripheral spreads which is becoming a bit of an issue i don't think ecb right now is

much worried the widening of spreads to a certain extent and automatic feedback because of the pricing of higher rate path for the deeper rate. it doesn't represent idiosyncratic rate it is no easy solution >> can we turn to the japanese yen? you have what i would imagine is an out of consensus call tell me if that is true. you like the idea of being long on the japanese yenversus the dollar why? >> first of all, it is a tactical view that we have and it is the view largely predicated that we now have turned into a slightly different phase in this risk off previously, we had a risk off which was actually driven to a certain extent by yields going higher that was supported for the

dollar if we are in a period where there is a concern of growth and pretty much everywhere with varying degrees, then we potentially go into a period where we will see further decline in risk assets and further declines in yields dollar/yen this year has been explained 997% movement by u.s. yields if we are right, the risk assets are selling, we could go through a short-term period of yen strength again, medium turn, dollar goes higher it is on the back of the stretch of the dollar/yen long >> thank you for clarifying. i'm glad i asked

our u.s. colleagues will talk to ben bernancke. you don't want to miss that conversation ahead at 12:00 cet. we have analysis after the break on what the issues have become with the wheat wars

welcome back to "street signs. i'm julianna tatelbaum these are your headlines sweden and finland are making the bid to join nato the swedish prime minister said the move is the right one. >> we think this is best for sweden and swedish security. it is not something against russia, but what is best for us. what kind of retaliation there could be is up to russia and president putin. european markets pare back earlier losses to start the week on a mixed note. sovereign bond yields rise amid

the warning of weakweakness. china's disappointing data with covid taking a bite out of industrials. and accusing russia of the wheat war. and u.s. trade representative tells cnbc food is the topic in international talks. >> international food security beyond prices and the availability and flow of agriculture trade is something we have been looking at closely and we have been talking about it in the context of the ttc and it will come up at the wto as well let's look at european markets. i think it is worth tracking given things are changing quickly. positive momentum building all morning. european markets trading for an

hour and a half. we have green for the swiss and italian and french this comes after the pretty strong bounce back on friday on both sides of the atlantic lifting european and u.s. equities on friday it wasn't enough to turn the week around. all of the majors ended last week lower turning to currency markets. big moves in sterling in particular right now, the british pound is trading more than one-third weaker at 122. the euro is holding firm against the dollar 10418 mark taking a look at wall street this is the picture for the u.s. open things improving as well positive sentiment building. dow jones industrial average at 34 drop at the open.

we had a triple digit drop earlier on nasdaq is paring back losses 70-point loss at the open. and s&p is fairly contained in comparison to the moves last week it is early days wheat futures are trading higher after india banned export of grains to manage its domestic food security. the decision is set to worsen market conditions tightened by the russia and ukraine war the indian government will honor existing agreements by allowing exports to countries that quote need to meet food security needs. eu vice president told cnbc the countries imposing restrictions will raise the risk of global food shortages this as ukraine is unable to shift the grain exports which is

driving food prices higher we are speaking to them on the out skirts of paris where the russian invasion of ukraine is front and center of the talks. the u.s. commerce secretary said close cooperation is essential to address the key trade challenges >> definitely moving into the era of more tech regulation. my concerns were less about the intention and more about implementation i would say this forum, the ttc, is incredibly important because it facilitates the conversation as it relates to how the laws are implemented. we will harmonize if we have these discussions. >> beyond the prices beyond the prices. the other is the availability and agriculture trade is

something we have been looking at closely and talking about in the context of the ttc and coming up at the wto as well >> we have the latest with sylvia who is covering this in paris. it is interesting how india's intention to ban exports of wheat. india is a major producer of wheat, but it is not a major exporter to what extent is this symbolic and an issue we are seeing crop up around the world? countries hoarding supplies and risks this carries for economies i around the world >> reporter: essentially food prices were already increasing one of the main topics we have discussed with a lot of guests recently is around inflation measures such as this one that india announced over the weeken could make this worse, julianna. we are seeing a lot of european

and american officials concerned about this rising food prices and the shortages we're seeing and what is happening on the ground is trying to coordinate action to efficiently address the issues let me give you a quick context of what the council is about or the ttc because this group of american and european officials came together in 2021 to address issues related with trade and tech what is happening over the last year is this group has gotten more political they are trying to address the geopolitical concerns. as the commissioner from the european commission told me earlier, there is a lot of issues at the table here for the ttc. >> we will definitely look at the supply chains.

i said many times we are entering into a new geopolitical tension and it starts with secretary bi secretary blinken. we are concerned with what happened in china. everything that we started first in europe and the u.s. with our priorities on our agenda myself and the team and we finalize the pact in europe. we are working very hard on the u.s. side and we are in close contact here to work together. we have many things on the agenda we have an important topic for

stabilization. stabilization is extremely important. we share the same view we will work together here to be stronger together to fund what is important for us. >> could you give us information on the global food supply chains >> that is something which is extremely important. it is not exactly, of course, the topic of tech. it is a very important issue that is something, of course, broader than the ttc >> given your portfolio , what i the biggest concern? the implications of russian invasion of ukraine or china >> it is everything. this is the world we are in now. we have to be cautious and careful with what happens. we also have the crisis of let's

say energy we have many topics. many things we are discussing today. >> reporter: it is quite telling that the commissioner breton said is the concern about everything one topic discussed here is one area where the u.s. and you incorporated so far is how to apply sanctions on russia. within this context, the european commissioner did tell me as well that she is supportive of further action against russia and will be important to do that to apply more sanctions together with the united states. >> first, continue to maintain the sanctions because when sanctions imposed, the first thing that happens is they try to find ways around it

maintain them to remain effective. of course, increase the pressure coming from sanctions in the weeks and months to come the war that the russians have brought ukraine is not a european matter. it's a global matter you see the fallout of food shortages in huge parts of the world coming from the fact that all that wheat cannot be shipped from ukraine i think we can also learn that when it comes to the supply chain also basic commodities that we need to cooperate so much closer than the past. >> reporter: as you heard there, this is a global matter. within the context, she also raised the question of higher food prices. when i discussed this matter with the european commissioner for trade, he did say as well that for the eu, this is not so much a question of food security, but more about food affordability.

>> it is all an acknggravating situation with ukraine the biggest exporter and sunflower exporter in the world when we he see this with export restrictions with countries like india and indonesia. we see a great situation we are looking out how to alleviate this situation from the eu side and support vulnerable countries because for the eu itself, it is not so much food security issue. eu is largely self sufficient on main agriculture products. it is more food affordability. >> reporter: the ttc work has gone beyond the standard setting from looking at the traditional core issues in trade and tech.

as you heard, they are looking at how to solve the food shortage and the question about russia's invasion of ukraine and the question mark here, julianna, is whether this cooperation with the u.s. and eu will continue as the u.s. perhaps approaches some changes in their power >> sylvia, thank you so much for bringing us that coverage. ecb executive board member panetta says cryptocurrency is too risky to act as reliable source of payment. stablecoins are vulnerable panetta said the discussions around the digital euro could start at the end of next year. brussels is watching the crypto market closely

vestager talked about the i investment of crypto mining. >> one of the things concerning crypto is we're in a very serious energy crisis and yet crypto is still being mined with enormous use we are watching crypto carefully. also, my colleague responsible for this area. it remains to be seen. obviously, it is an issue that we will watch carefully. right now, with the energy prices and with the need to supply industry and homes with energy, of course, thought provoking is the crypto sector to continue. >> for more on the volatility in cryptocurrency and china's below the radar push for a platform, check out cnbc.com.

and tewitter shares have fallen now that the deal is temporarily on hold. elon musk says spam accounts make up a large amount of users, but sunday told him he breached the potential deal. and coming up, aramco's record profit on the street. we will have more on that after the break.

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in theaters june 10th. welcome back to the program. coal conglomerate is set to stake the indian firm for $10.5 billion in cash. the largest ever acquisition adani offers the businesses at $5.30 per share. the transaction is set to close at the second half of the year pending regulatory approval. emirates telecommunications group bought 9.8% in vodafone.

it has no intention of acquiring the whole company. renaul it is selling the stake in avtovaz. it will transfer to the city of moscow the difficult decision will protect the 45,000 employees in russia citi and unicredit is swapping with russian institutions as a means to exit the country with the invasion of ukraine. unicredit rejected an offer for the local subsidiary softgen took a hit selling last month. and ryanair povested a loss

last year. it reported a load of 82% over the period and the summer capacity is 115% of pre-covid levels it forecasts a return to profit in 2023. the ceo michael o'leary talked about it >> there will be a strong recovery we are seeing that post easter into the summer. bookings are strong, but lower prices in q1 we see elevated prices in q2 we learned from the exuberant optimism at christmas and it was damaged by omicron at november and we thought we would have a strong eastern a and it was dame by ukraine

there's no doubt there's a strong recovery under way. i think we want to be cautious particularly in the second half of the year. will there be another variant of covid? we walso need to keep an eye out for the unfolding ukraine situation. let's check on the energy markets. we have brent trading 1.2% lower. wti is trading 0.9% lower. similar there at $109 a barrel saudi aramco with the highest first quarter profit since the ipo three years ago. the sharp rise in oil and gas prices and higher volumes and improved down stream margins drove earnings higher. aramco will use the earnings to distribute bonus shares to

investors. speaking to cnbc, the former aramco executive and founder of hussai energy, you can expect more reports as global unc uncertainty continues. >> it will stay this way, i think, as long as markets per persist. there is no reason not to expect it with the turmoil in the global and political arena we will see this for a while of course, there are unknowns. you know, what will happen with china? you were just discussing that. far eastern market is important. also the embargo on russian oil and gas? will that be more pervasive? will it extend i donbeyond 2022? we will see this income for oil persist for the balance of the

year let's look at european markets. two hours into the session and we have the positive momentum continuing to build in most markets. cac 40 and dax approaching flat for the session. ftse 100 in the uk is 13 basis points higher. over in italy and spain, green on the board switzerland as well. building on friday's strong session. the stoxx 600 ultimately gained 2% on friday trimming weekly losses to 80 basis points resilient overall. of course, that number masks the tremendous intraweek volatility we saw we are seeing action in bond markets. that's worth keeping an eye on bond yields tick higher. we saw bond yields tick higher in the wake of comments from the e ecb's villeroy

price stability at risk in the eurozone paving the way for more decisive and quicker action from the ecb. the german 10-year bund is trading 90 basis points. turning to the dollar. the euro trading stronger versus the dollar up nearly 20 basis points on the day. sterling is trading on the back foot down 30 basis points to 1.2226 u.s. futures dow jones industrial average pointing to a positive trade we will see if it continues. that's it for today's show i'm julianna tatelbaum "worldwide exchange" is coming up nex t.

it is 5:00 a.m. at cnbc. here is the top five at 5:00 stocks looking to hit the reset button after the rocky trading week and recession warning. comments from the former goldman sachs ceo on the signals he is seeing that a tough economic road ahead may be looming. and the crypto crush continues. bitcoin below $30,000 mark as they struggle with the terra stablecoin. the drama over the twitter takeover bid