that's all for this edition of "dateline." i'm craig melvin. thank you for watching. ♪ good morning and welcome to "street signs. i'm joumanna bercetche. >> and i'm julianna tatelbaum. these are your headlines. the beginning points to sessions of reopening and the futures of first republic. rising rates and higher trading income with first quarter profit jumping 24% and topping forecasts.

the ceo tells cnbc the bank's strategy is paying off. >> the recovery the bank has been on for the last several years is really coming through we had a double-digit growth last year and started this year. actually this is the highest income and profit we've had going back to 2014, 2015. covid negative sales fall 7% but still top estimates despite falling demand for covid tests. the swiss giant outline's the strategy. >> we always knew the covid conundrum would come to an end and has come to an end what really carries us forward is the base and that's being felt in both division. and the riksbank hikes with a warning inflation is still far too high

♪ good morning, everybody, and welcome to "street signs." as you can see behind me, there is a lot of red on the board today. the hand joer from both asia and wall street pretty negative. a lot of focus on what's happening with the u.s. regional bairngs. yesterday we were very much looking at first republic, and that bank lost almost half of its value yesterday alone in trading. once again there are concerns about the financial system, the impact that that's going to have on the u.s. economy and they're surfacing. you can see the stoxx 600%

almost 1%. the stock was significantly lower. we've made a lot of the way back again, but, of course, things are turning south. keep an eye on that. in march we were very much concerned about what was happening in the u.s. in addition to credit suisse and the situation in switzerland things are looking south but still far away from where we were a month ago. let 's switch over and talk about some of the reaction so far. you can see a very pronounced risk the dax down 0.9%. the industrial names really lagging. the cac is down. that stock is down about seven percentage points. even though we're seeing a relatively good reaction, they're the homebuilders

jen lolly the theme is one of negativity we're seeing it lower. the smi also refocused on some of the pharma we have reported today with likes of roche. in terms of breakdown, telco is up. the focus once again on european banks. remember yesterday ubs came out with their set of results and slightly disappointing relative to expectations on a standalone basis if you look at the credit suisse tie-up. the reaction is negative because we're starting to get more negative sentiment in the baseover what's happening in the u.s. the biggest fall in over a month. industrials, 2 percentage points the tech sector despite earnings from microsoft and alphabet,

we're seeing the tech sector in europe come down one of the names in focus, the chipmaker. that stock is down in double digits there's a lot of action going on both at the micro level and the m macrolevel leading the markets in the lead, the ecb could go for that 50-basis-point hike at their next meeting in terms of u.s. futures, this is the look ahead it is looking pretty mixed compared to some of the price action we had yesterday. the s&p and nasdaq closeing in the positive, but the dow is opening at slightly negative. >> shares plunging at almost 50%. the move has prompted a renewed wave of speculation over the

future of the lender with cnbc's dave faber reporting the white house, the fed arcnd u.s. treasury are considering plans to stabilize the firm. one potential path would be for larger banks to buy some of first republic's assets, which would allow it to buy some necessities. the next few days would be crucial. the lender is struggling to come up with a viable solution, adding that one option would be for insurance to take over the bank reuters reports the creation of a bad bank is also being examined. elsewhere in the financial place, first prequarter profit by standard charter rose to $1.8 billion topping expectations the uk and hong kong listed lender was boosted by higher rates. cnbc was told the bank's

strategy was paying off. >> it's now really coming through. had a double-digit growth last year actually this is the highest income and profit print we've had going back to 2014, 2015 not with standing, other things that have been going on, the parts we operate in is very, very strong. interest rates increasing have clearly helped, and we've printed the highest return on it that we've printed for a long period of time. >> let's head out to mark with ucb. good to have you on the show let's start with what's happening with the regional banks. they found almost 50% yesterday in trading it felt as though the u.s. regional flare-up we saw a month ago has come to an end i spoke to many people, even the likes of standard charter's ceo the last couple of days, and

everyone seems to agree the mini crisis is over, though, some of the issues still remain. but perhaps we were being a little bit too complacent. what are we seeing with the price over the last couple of days >> look. there are views that the u.s. government, treasury secretary has taken strong measures to contain the fallout. nevertheless, the tremendous rise in interest rates is going to show some people that there could be trouble ahead broadly speaking i would say the issues are contained with strong measures, but where we're focusing our look is how the things that have happen and will happen are credited to the united states because these regional banks, the smaller banks are still a large player

in a lot of the loans that go out to u.s. corporations and firms. >> yeah. one thing i do want to ask you is whether you think -- it's sort of a two-tier system that's more pronounced with the u.s. banging system i understand it may be a hume question, but is it important in terms of how you think about funding because these banks are still struggling to attract deposits, this ineverybody it wli-- inevitably is going to cause problems in the future i wonder what the state of the u.s. banking system is looking ahead and whether authorities will have to increase stipends to put out fires in some of these u.s. regional banks. >> well, i think, you know, before we get to a situation where we need, you know, a massive overhaul or interventions, the first place to look is the effects what you

mentioned what they do to earn it certainly they can be a depressant on earnings and margins as banks -- particularly these smaller banks have to adjust to a very different interest rate environment and also as you point out a changed depository environment for them as well. maybe a business model is evolving, but that doesn't mean it's going to spike, you know, another serious crisis like we had last month. >> mark, do you think that tighter credit conditions are being priced into u.s. markets right now when you look at valuations >> i think it's a very open ques question if they're being priced in overall if you look across the risk t growth trajectory and earnings trajectory, we don't think that's priced in to u.s. markets in particular right now. the u.s. is trading 18 times

that's typically associated with robust growth in earnings, and we see something of a contraction, maybe a 5% contraction in earnings. so for us, the u.s. markets are probably the least attractive market right now. >> you're not too keen on the u.s. equity market where would you suggest investors put their money? >> well, the growth -- the strength for growth is coming out of asia, it's coming out of china, and so we're looking at emerging markets in particular where we see better valuations, better response to growth regions, and also some strength from commodities which we also like and then i think the read across is, you know, to the asian consumer now that pandemic restrictions have been lifted, there's a read across to reading

consumer names and also early sector companies like in germany that can benefit from a recovery in asia. >> mark, one thing that really jumped out to me in your note is you say you started positioning for dollar weakness. i think it's interesting in terms of other people coming out yest yesterday, what is the thesis for that because u.s. interest rates are still pretty high, and many people we talked to think that anticipating rate cuts later on this year is perhaps an alternate. what is the weakness from here onward >> well, thank you it is a great question you're absolutely right we think also that it's premature to anticipate u.s. rate cuts, but the other side of that trade is, you know, what's going on with the other central banks, and we

would note that in europe, inflation is probably further away from being under control so that, you know, the ecb could be in a situation where it continues its hiking path much further than the fed we think the fed is closer to the end of its hiking path, closer to a pause, much closer than the ecb then also, you know, japan has had its negative rate policy for some time, and there have been a lot of careers wrecked on the soles of betting japan would start to take some moves we're getting more interested there, and we actually think the potential for the yen to rise in value versus the dollar has increased enough that we want to be positioned there as well. >> mark, thank you so much for joining us this morning. great to hear your views note, we want to take you to first republic where we now have a premarket print.

are looking at stabilization in the shares price, up 3.6%. they had tumbled over questions of the future of the bank as joumanna mentioned, but we wanted to give you a fresh look at where we are now. riksbank has raised its rates to 3.5% it warns inflation is still too high and expects a hike in june or september. meanwhile the bank of england's ceo says they expect to be worse off, working through inflation and against companies rising energy cost rises on to customers. he said it's fueling inflation pressures. my immediate response to this is the central bank committee is

not going to make good politicians. that's not a thing you say to the british environment when they've been living in a negative environment over a year right now. that's why there's so much anger. a lot of the public who have been feeling the pinch are seeing central bankers making comments like this they're saying, hang on a second, they're partially the reason we're in this situation anyway if they had haacted more quicker this wouldn't have happened. the fact that they say we have to live poorer over the cost-of-living hits, that's really, really poor. >> when you brought these comments to my attention this morning, my first thought was didn't he learn from andrew bailey who was under fire for

his comments last year suggesting that uk employees shouldn't ask for wachlk increases. clearly there was a ton of backlash he had to walk back those comments and do some damage control and yet here we are again. i think it's interesting not only his comments about wage's, but they must accept the inflation. it's a difficult thing to ask companies to be the one to do that. >> companies are looking at their models and clearly what's happening is there are secondary effects. obviously it's not going to affect everything. you look at poor inflation that continues to remain sticky because of that people are asking for wage prices as a central banker you see that you say the best way is for people to stop asking for wage prices it doesn't work that way

you can't control what people do and people are feeling the pinch. they're going to ask for higher wages. that's why we see so much industrial action in the uk. >> you can't ask companies to stop raising prices. that's not how it works in a capitalist society we are going to take a quick break. coming up on the program alphabet and microsoft are take up investments with ai we'll adjust the earnings after this break

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the chipmaker asmi has its first quarter revenue falling at 689 we're seeing quite the average today. it's very close to the bottom of the stoxx 600. meanwhile in france the sources posted a 1.4 billion euros revenue in the first quarter

beating analysts' expectations they expected revenue to reach up to 6 billion euros. again, we're seeing quite a reaction. elsewhere in france, orange posting first quarter results. they've seen growth in africa and the middle east as well as europe where it raised prices in the quarter. their shares are up 1.6% danone has projected an annual growth they've shown some improvements in its operating market in the luxury sales, kering sales rose just 1%. gucci also rose just 1%. the new designer set to show his

first collection in september. charlotte joins us with more we've been talking around this desk for a couple of weeks about the strength in luxury it doesn't feel like kering is getting a piece of the pie. >> no, it's the outlier. yesterday we were telling you how they reached 500, the first european company to do it. kering is the reliable competitor we talked about gucci. overall the sales up 1%. kering, again, comparing it to lvmh and hermes rose respect t respectively in a way it's good news and bad news

gucci is up 1% this time around. i think they're thinking maybe we're starting to see a slight transition in gucci and they are getting benefit of the doubt as you said third quarter have named a new creative director for gucci who will join next month as the company presents its new collection in september. so they know the company is on top. they have presented a plan for the group and for this company they're going to focus on their legacy brand to bring in a premium as well. gucci kind of fell in that trap of it was everywhere it diduck tate a lot of fashion as well. here we know they are through the transition so they're getting the year transition. it's kind of a wait and see. you look at the other key brand that's been building up because

of the overrelioverreliance looking at the regions, they have looked at the reopening of china, up 10% in asia. one issue as you mentioned was in the u.s., down 18%. others talk about the slight slowdown in that region. they haven't seen it as much there are advertising issues in that region. overall let's give them a little bit of the doubt, but, again, lagging. >> charlotte, thank you so much for the breakdown. it's not just luxury in focus, but tech. microsoft shares surged in after hours trade after they displayed earnings that beat wall street's expectations they had almost a 9% increase microsoft is also betting on artificial intelligence n particular the big search

engine the ceo had a good lead on ai, explaining how it plans to monetize the technology. >> we do plan to monetize a set of meters across all of the tech stacks, whether it's subscriptions that's incrementally how we monetize. >> alphabet announced it will buy back $70 million worth of shares the tech giant also recorded first quarter earnings that beat expectations revenue surged to almost $70 billion and ad revenue beat the forecast, reflecting a wider slowdown in marketing funds. the cfo said they remain uncertain due to the challenges in the macro economic

environment. she add the pace is expected to increase. as it relates to capex for 2023, we now expect total capex to be modestly higher than in 2022 as discussed last year there will be a decline in office facilities we expect data and serves to step up and continue to increase throughout the year. >> so a lot of focus on these earnings going into yesterday. good results out of alphabet and microsoft. if i could sort of summarize what i've taken away from it, ad sales better than expected for alphabet and cloud computing continues to be a positive area of growth for microsoft. >> there were very low expectations coming into this set of numbers from all the tech giants we have heard from so far and are going to hear from so they did neat to beat that was very important.

you saw that as you mentioned cloud computing remain soft. they may cut back in areas like technology including in cloud. clearly from microsoft's point of view, that's not happening. google is a smaller player in cloud, but, again, it's showing growth, which is positive. on the advertising front, that wasinteresting because there was resiliency in apps, but you saw revenue in the ad business the cfo mentioning that the outlook remained uncertain if you look at the share reaction overnight, they were up alphabet only 1-plus percent that speaks to the two different companies. the sort of macro headwinds could affect google. i think investors are still unclear whether alphabet would. >> turning to the day ahead, we've got meta due to report

later on tort.ont we've seen fr microsoft and alphabet, what can we expect from meta as well? >> analysts are expecting meta earnings to drop about 25% that's the forecast from analysts at the moment they're expecting the ad revenue down about a percent sort of in line with what we've seen from alphabet we know businesses are cutting back on ad spend we heard from alphabet management, i think you're likely to expect to hear that from meta as well that it's uncertain in terms of the macro environment. there's going to be a lot of focus on what it's doing in terms of short video given some of that tiktok challenge we've actually seen reflected now from alphabet's business as well. in terms of meta, we think about cost kroechlt thousands and thousands of layoffs the market was not very happy with the way the company was putting so much emphasis on metaverse, but not quite clear on what that strategy looked like and now focusing back on

coal. >> i do remember when we were sitting around this desk three months ago, we were talking about the new buzz word, which is efficiency, which is basically lingo for job cuts and cost reductions. many of these companies are now going to the other side of that, and it feels as though it's actually beginning to translate into financial performance. >> what's interesting with microsoft in particular is they've gone through rounds of job cuts, but the important message is capex is increasing and cloud and ai infrastructure. i think that sends a message to them that, yes, we've had to cut jobs there was overhire during the pandemic perhaps they went a bit too far, and so they're trimming some of those investments they've made they're continuing to invest in the ai areas where there's growth still seen even in a difficult macro environment. i think that was key i think all the tech companies will be very key yes, we've done that, but we're

investing for growth i think that's going to be very, very critical if they want to get confidence back. >> absolutely. arjun, thank you for the breakdown. well, earnings ai and ad revenue aren't the only things dominating the tech sector head to the cnb website to find out which tech giants the eu says are asset to face further regulatory scrutiny. and also coming up on the show, roche reports a 7% sales fall as covid declines we'll discuss the pharma sector after the break.

welcome back to "street signs. i'm julianna tatelbaum. >> and i'm joumanna bercetche. and these are your headlines. the stoxx 600 trades lower and some are gaining resilience as some regain some ground in premarket trade. rising rates and higher income boost standard charter.

the ceo tells cnbc the bank's strategy is paying off. >> the recovery is now really coming through we had a double-digit growth last year. we started this year with a double-digit growth, and actually this is the highest income and profit print we've had since going back to 2014, 2015. >> covid-negative. sales at roche fall 7% in the first quarter despite demand for covid tests. the swiss giant ceo outlined the company's strategy post-covid. >> we always knew the covid pandemic would come to an end and it has come to an end. we've seen a sharp demand in covid-19 products. it's both divisions. sales of the luxury giant rise 1% falling behind its lungsry rivals particularly in

the u.s. we're about an hour and a half into the trading session and we bounced off the lows. now we have seen the losses paired back somewhat it is still red across the board. just not quite as negative as we were at the start of the program. xetra dax down 6%. similar pullback for the ftse mib in the italian market. if we break it down by sector, you can see what i'm talking about here you've got basic resources in oil and gas among the best performing sectors telecom catching a bit of it up 0.8.

you've got industrials down 1.6% health care down by 1.3% and technology down 1.3% asmi down after a disappointing outlook. that's the big drag on the tech sector a number of big movers on earnings today all about those earnings, not here in the u.s. as well. on that note, let's take a look at wall street and u.s. futures. we're now looking at positive moves for all three of the majors the dow jones had flipped into negative territory at the start of the program we're back into positive territory, taking a lead from the u.s. let's talk about some of the pharma subtles that have come out. the swiss giant roche has presented a first quarter decline due to a lesser demand in covid therapy and test kits it came in above expectations. the ceo told cnbc he remains

confident about the company sales. >> if you look at the base business, we saw excellent growth in the first quarter with 8% we always knew that the covid pandemic would come to an end and it has come to an end. there's been a sharp decline in demand for covid-19 products what really carries us forward is the base business, and that's done well in boecz divisions including the diagnostics division. >> novozymes has come up with its first quarter. growth came in stronger than expected at 5% gsk beat expectations with its first quarter earnings with revenue jumping to 7 million pounds it's seen an increase in its shingles vaccine the company reaffirmed its full year designs

emily, also a pleasure great to have you in person this time around. let me kick off by asking what stood out to you so far from european earnings season looking across the big names, we've got pretty much every one of those beating expectations. what's your takeaway >> thanks for having me. i would say everyone seems to be so far, so good. we saw a strong beat and high guidance rated and roche, you know, they are seeing the larm co large covid decline. gsk, a beat versus expectations, maintained guidance for the year the sector's done quite well, but it seems like everything is still going well. >> i know one stock -- we'll get to it in a second. joumanna, if you want to jump in and talk any other earnings? >> i just wanted to ask you about margins and sort of your outlook there because there were

signs because of the may crow economic environmental markets would have to start compressing. >> yeah. that's one reason why we really saw the sick tors start to do well when inflation really started to kick in pharma companies often have 80%, sometimes 90% gross margins, so very, very low commodity input costs. so what insulated from the impact of rising costs we've generally seen pretty strong margin guidance going into this year very strong performance from k the company yesterday. so far, so good from the companies who have reported thus far. >> i wanted to ask you a question about one name that you have done a huge amount of work on, nova nordisk we've spoken about these obesity drugs. wegovy and a pipeline of others. speaking to investors, everybody

acknowledges the popularity and the potential, but the street seems pretty divided on whether this is already priced into the stock. what do you say to your clients who are bearish simply because they think the valuations have already run too far? >> yeah. i think a lot of us just get stuck looking at this year's valuation, this year's pe. immuno-oncology was the story of the last decade. it feels like obesity is the story of this decade we've put out sales forecasts for the next ten years that we believe can get to a $100 billion market some clients in response -- we didn't get much pushback and we're thinking maybe it can go even higher with this much push. what we're telling clients is when you look at a stock like novo nordisk, maybe you look at it in a few years and it might look cheap relative to other

pharmacies >> a pretty sizeable opportunity. what is going to be the next catalyst that could take the stock higher >> so the catalyst that everyone is watching for is a study called select. what this study is testing is we go to patients without diabetes, just obesity, to see if there's a benefit on cardiovascular outcome. does the weight loss prevent you from having a heart attack or stroke in those who have a higher risk. we've seen a benefit in the diabetes population, we've seen a benefit with patients who have had bariatric surgery. we all think this should work, but it's a very, very important event. there's certainly a lot of anxiety going into this which is expected to be in the middle of the year. >> you talk about one of the major theems, which is dealing with the ucb market and you expect that market to grow significantly over the next ten years. what other companies are also well-equipped to take advantage of that? >> the other natural competitor

is eli lilly based in the united states there's -- novo and lily have been out in front in the diabetes and it feels like the diabetes market is replicating that wegovy is purely the first obesity drug but another drug has been approved from eli lilly. kind of how we're thinking about the market is this duopoly of novo nordisk and eli lilly is probably maintained for at least the next five years because there are a lot of other companies working on assets. have pfizer, amgen, other companies with earlier assets, but novo and lilly are in phase three. know novo thinks its next drug result in a 25% weight loss. the market dynamics right now have these two guys in a big head start. >> can i ask you about m & a in

the sector they obviously spun off novo nordisk, san detdos, the generic business is there more to come? >> one question we get asked a lot is could we see the other companies we cover with consumer health businesses which are buyeb beyer and sanofi neither has anything to do with consumer business today. on the m & a side it seems like since biotech has reset in the u.s., we're waiting for a flurry of details which hasn't ma mater materialized a lot of companies, roche, novartis, sanofi, they've

expressed bold times, small deals, don't expect anything bigger transformative. we're going to keep asking on the calls. >> thank you, emily, for doing that for us. also when you think about the context of how big the market can grow, they tackle that issue. emily field, thank you. now, u.s. verification that ventilation company carrier global has agreed to buy german heating manufacturer the acquisition is expected to close at the end of this year. and on a programming note, we'll be speaking to the ceo maximilian viessmann ka that on the show tomorrow. coming up then show, the u.s. presidential season kicks off with a rematch between two

familiar faces lki leloongiky. more on that after the break

signs. u.s. president joe biden has announced he'll run for re-election and run against donald trump at 80 years old, he'll be the oldest president ever and be 86 by the end of a possible second term. kamala harris confirmed she'll stay on as vp running alongside joe biden filing her campaign paperwork we're joined now, a professor of political science at ucl president joe biden announced his re-election campaign no surprise there. my question is it appears the american public doesn't believe he should run again for a second term an nbc news poll on sunday founder 70% of americans believe

he shouldn't run a second term isn't the democratic party convinced he's the right run to run for re-election? >> i think the short answer is absolutely not there's a clear lack of enthusiasm for joe biden's candidacy. even a slight majority of democrats don't think joe biden should be the candidate. there's an emergent concern that part of it is his age. the reality is there are plenty of other reasons voters might be reluctant not only with the fact that he's 80 but how he's governed he displeases the progressive left the most. they think he's still governing too much as a centrist and it's time to pass it on to someone younger. doesn't seem to be the case. he's all in. >> some thought maybe one

alternative be he run with a different running mate, but kamala harris has confirmed she'll stay on as vp why not go with somebody else, pete buttigieg or somebody who could help him in the polls? >> you're certainly right that kamala harris hasn't really inspired confidence in a lot of americans. in fact, her approval ratings are lower than joe biden's i think it would have been very difficult for joe bide on the remove kamala harris from the ticket for a couple of reasons some of them relate to identity politics you know, there is a certain faction within the democratic party that is somewhat enthusiastic about kamala harris and would have concerns about what it would represent if he were to remove her from the ticket especially since she's the first female vice president and the first woman of color to hold that office i do think those present some obstacles for joe biden, plus i think he wants to present the

case that, look, we're doing what we said we were going to do, we're kind of staying the course, and removing the vice president in the midst of a re-election bid may not have egg necessarily signaled a confidence. >> thomas, just to pick up on that, doesn't her lack of popularity play straight into the republicans' hands they're going to go out and say looking at the age of president bi biden, a vote for president biden is also a vote for potential president kamala harris as well. >> i think that's right. in fact, when you have a president, of course, who would be 86 by the time he finished his second term in office, it is possible that voters are going to be even more mindful of the vice presidential candidate because they're ultimately a heartbeat away from the presidency it is the case, though, when you look at it ultimately most americans are voting for the top of the ticket, so there's oftentimes a lot of discussion how vice presidents can help

candidates, how they can hurt them at the end of the day when you look at exit polls, they'll say, i voted for the president and the vice presidential candidate and the candidate was a mark. >> thomas, how likely is it we're going to get a runoff of biden/trump again, and if you do think that's the baseline, to what extent do you think the multiple scandals the last couple of years surrounding donald trump, all of these issues, to what extent does that impact his popularity? could it be a close runoff again? >> i think we're probably carrying out a joe biden versus donald trump rematch for 2024. all the polls seem to suggest that joe biden is obviously not facing any serious competition on the republican side, i still think that we can't discount the odds around ron desantis or

maybe some other emergent candidate coming out of the wings, but donald trump has such a tremendous grip on the republican party you've seen his poll numbers increase even as a result of his recent legal troubles. the fact that donald trump is embroiled not just in the new york city indictment but also multiple other probes including by the department of justice and including this the state of georgia, that's obviously going to be a ring around his neck in the republican primary, i think that's going to help donald trump because he can essentially say as he typically i does this is a witch hunt, he's being victimized, he's essentially being the aim of character assassination. that could play out very differently. at the end of the day, it's going to be a referendum on joe biden's presidency and donald trump's presidency and the extent to which americans like

the least. certainly for a lot of americans, they're upset at this point. according to a recent u.gov goal they say they're exhausted having to go through another campaign with the candidates it's often said americans get the government they deserve, and that's probably true, but most meshes don't want to see this choice in 2024. >> thomas, it felt like the momentum was really building behind ron desantis. he obviously has not even officially announced that he's running, but it seems as though that momentum has been fading in the last several weeks is that the correct impression based on the polls we're seeing, and if so, why is desantis' popularity falling >> it's a really good question i think that's absolutely what the poll suggests. if you go back a couple of months ago, ron desantis and donald trump were essentially neck and neck, and now donald trump is up somewhere on the order of 15 percentage points.

so it's been a pretty substantial shift. we should note that ron desantis isn't still formally in the race, but the fact that donald trump seems to be solidifying his position as a front-runner does matter. you know, it's a really good question as to why desantis has fallen off recently. we should note it's still very early but part of the challenge is particularly in the wake of this new york city indictment, it's been very difficult for ron desantis and the other republican candidates to kind of attack donald trump, and they're always trying to straddle this line, which maybe is impossible of not alienating trump voters while at the same time taking mild shots at donald trump at the end of the day, i still think a huge plurality of republican voters like donald trump, you know. there's been all this talk about finding a trump-like candidate,

having trumpism without trump. why do that, right if donald trump is there as an option, why not vote for him i think that's kind of the calculation for a lot of conservatives. >> thomas, it's always great to chat to you. i suspect we're going to be speaking to you a lot throughout the kourts of the next year as it becomes clearer what this is going to look like, professor of political science from ucl. a quick look at u.s. futures because it has been quite a volatile morning i should say. things are now actually tilting toward green at one point we were up all negative based on the trading risk-off environmental we had yesterday, today leaning more positive today the focus will be more on e gial banks. >> that is it for "street signs. i'm julianna tatelbaum. >> and i'm joumanna bercetche. "worldwide exchange" is next

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it is 5k a.m. cnbc global headquarters, and here's your "five@5. we begin with stocks set to rebound. futures pointing to a modestly higher opening. and later this morning, it ee tech after big beats from alphabet and microsoft, warning shareholders in a very big way more on that later on in the show. speaking on f tech, it's a decision day for what's holding up microsoft's deal for activision deal. shares of republic closed down