quick reminder of how you can watch it next week, brought to you by the official video game 6. we want to say thanks for watching here in denver! a night that none of us will ever forget. one more to go in monster ♪ good morning welcome to "street signs." i'm julianna tatelbaum and these are your headlines berkshire hathaway warren buffett hits out at the media on the safety of u.s. banks despite a strong rebound on friday >> the fear is contagious, always historically, the fear was justified and sometimes it

wasn't u.s. treasury secretary janet yellen warns there are no good options if congress fails to raise the debt ceiling ahead of the june 1st deadline. and bill winter tells cnbc the market should not under estimate the price pressure. >> you have to see inflation come down. and binance halts trading. >> the fcc is an outlier gary gensler has taken an anti-crypto view welcome to "street signs"

this morning happy monday let's kick off with berkshire ag hathaway the cash pile has risen to the highest level since the end of 2021 earnings were expected to decline in all of berkshire's businesses this year the oracle of omaha is cautious of the sector over the current turmoil. >> owning banks will determine their future you have politicians involved and you've got a lot of people who don't understand the system and how it works i would say you have something

less perfect communication with various people and the american public the american public is confused about banking as ever. that has consequences. u.s. job growth beat expectations with non-farm payroll rising 253,000 the unemployment rate at 3.4%. average hourly earnings in increased by 0.5%. the chief of julius baer is with us let me take you to friday's non-farm payroll reports stateside. why did a stronger than expected jobs report propel markets higher is that not a hawkish signal from the fed

>> that is something we have to deal with if good news is good news or bad news is bad news the time being is good news is good news. that is a good thing for markets so far the reason for that being is maybe recession fears have dominated versus inflation fears. we see this as a result of the reaction of the market on friday >> would you say the investors now, by and large, are more fearful of bad data because of what it signals with impending recession? even if it means higher rates for longer >> yes, indeed the balance has shifted this year where particularly in the past nine months it was all about fed reaction

now it is how much slowdown. the labor market is a lagging indicator. by nature, it goes slower in terms of cooling off i think it was taken as an encouraging signal that the economy by no means is falling off a cliff despite credit crunch and u.s. banking crisis and all things bothering us right now. >> christian, would that imply the market believes inflation is under control now since the narrative has revolved to rece rece recession? americans believe inflation is going to come down >> it is not the key fear of markets. it has moved away as soon as we approach 5% and below and

heading toward 3% eventually some time this year. i think the pressure is kind of reduced massively. on the other hand, the price we pay or the price the weconomy pays with the reduced high rates being a weight on the economy. this is now taking center stage. therefore, any resilience in the economy is welcome >> christian, i don't know if you heard before you joined us we were listening to sound from warren buffett saying he is more cautious on the u.s. banking sector given the current turmoil. how concerned are you with the regional banks stateside and do you think more collapses are in the pipeline >> it seems this is far from over you know, we apply the savings

and loan crisis from the '70s and '80s with small banks. this is serious. you would not like to see this spreading. for the time being, this looks to be a particular part of the banking system whereas the stress test and an regulation and regulations seem to be insulating all of the large names in the u.s. banking system from that point of view, this will be a tedious work process there will be further cheaters there might be some economic clollateral damage there kno not to the extent in 2008where the banking system was taken down it looks like smaller banks and regional u.s. crisis

>> okay. great to get your view on what is happening in the u.s. banks can i step back and look more broadly at markets and ask what you think is the optimal portfolio construction here? how do you think about different as set classes and the best value stands >> we think, you know, there is plenty of opportunities right now given the rates are at this stage. we don't think we need to take an excessive amount of risk and we are conservative in terms of both the bonds and equity which means basically take good, quality bonds with quite anduri. on the bond side and -- duration on the bond side and equity side, you take boring stocks

that should be rewarding enough. during the time where it is uncertain with the economy and we don't see anything like the recession right now. meaning on the down side or getting back in. if you see what warren buffett has on the sidelines in terms of many global investors have the same we think corrections will be short lived and we will see money flowing back into equities >> fairly upbeat view. do you have a relative preference >> not on a regional basis, per se, but with banks and financials with banks, we feel there is room left for european banks to

out perform. it is the large guys which are less affected. we think the massive under performance of european banks -- since the europe crisis ten years ago and it still has room left and we think this is now materializing. we keep this preference for european banks other than that, i don't think there is a part if you adjust for sectors, i don't think there is a strong case to be regionally positioned of u.s. cer versus europe. some sectors have more weight in europe like industrials which make them more attractive rather than clear cut buys for now. >> that makes sense. christian, thank you for joining

us chief strategist at julius baer. for more on the agm in omaha, check out cnbc.com. bill winters told nbcnbc he expects the u.s. to avoid recession. we sat down and talked about global growth. >> it caused interest rates to go up another 25 basis points. we have to see if the fed can get inflation under control. that will have a slowing effect on the u.s. economy for sure we know that the biggest interest rate increase in recent memory will have effects that are both understandable and unknown. the second or third impact on the regional banks is one of those. this is all what we expected over the past year as we have

this period of high inflation. we will see from here. the other side of the equation is china and asia are still growing strong they don't have the same inflation problem. standard charter operates in middle east and africa we are hopeful the rotation of growth which is slowing in the u.s., not to the point of recession, but we will see it will be close it will rotate through china and the rest of asia in the post-covid upswing. >> do you think the fed pauses from here? >> i think the fed will pause from here. it has to see if inflation numbers come down. wage growth is still strong. that is not just in the u.s. it is in europe and uk as well as many other parts of the world. if we can get through the regular wage growth cycle and i think the fed can stop here. it's not done yet.

>> the postmortem on the banking crisis is not over warren buffett said executives need to be held accountable for the mistakes that were hiding in plain sight. has there been a lack of account ability here >> it is too soon to talk about that the kexecutives of the failed banks lost their jobs and been wiped out. tightening in sight? possibility. the benefit of hindsight is clear. it is clear the uneven regulation with the smalle banks and larger banks have contributed to that. b bank management made mistakes. that's what we are paid to do is think about the things can go wrong all the time for the most part , they don't we are prepared for those

things the reason we have not seen a spillover to much of the world, there is the credit suisse situation, but that was a slow burn crisis for years. the reason we haven't seen a spike in problems elsewhere is the rest of the world is actually pretty well prepared. standard charter is strong capital position and liquidity this is a model fit for purpose. as always happens, when you get a sudden change like in u.s. interest rates, there is some surprise this case, the surprises have been stark >> bill winters speaking to dan there. ubs is back in focus drawn up a short list of management team. the cfo and coo and the head of the swiss business are the front runners to remain part of the executive team ubs is expected to finish the

takeover in june a story we will continue to watch. hsbc shares touched a two month high after it shutdown talk of the asia business spinoff. it spoke out at the annual general meeting friday. coming up on "street signs," germany has deepened divisions with its latest plan we discuss next. ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow.

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get it before it's gone. on the subway app. welcome back to the program. today, uk markets are closed for the public holiday as people sell celebrate the coronation we are off to a positive start green across the board in terms of the magnitude here a quiet start to the week from last week with banks and earnings and nfp on friday we are opening up after a decent session on friday.

the stoxx 600 gained 1%. it still ended the week lower. we had a rally after the strong non-farm payroll reports from the u.s. on friday markets are looking at good news as good news the dax is up .40% the cac 40 is up 14 basis points the italian market is up .30%. italy is the strongest performer from friday. and here is a picture of currencies euro up .25% 110.44 last week, it retreated 0.4% sterling is pulling back this morning. we are hovering around the flat loin -- flat line now we are back above 126. the bank of england coming into focus this week. a lot of attention on the uk

market this week now turning to fixed income. bonds yields with the 10-year bund at 2.23%. we climbed last week before the ecb which we were trading at 2.27 as you see, higher across the board this morning in terms of u.s. markets, after the strong session on friday, right now, it looks u.s. investors are taking a pause for breath we are looking at the s&p and dow jones industrial average opening higher nasdaq is looking to pull back slightly it is early days a lot can happen between now and the open for wall street in terms of overnight trade, foxconn shares are lower emily filed this report. >> posted april sales of $14.07

billion. up 7% against march, but down 11% from a year ago. on annual basis, the product divisions saw a decline in sales, computing down for pcs, and electronics with lower demand cloud increased with the a.i. applications, but buyers slowed on paceinventory the largest contractor remains cautious on the quarter warning that iq2 could fall short. i'm emily tan in hong kong back to you. let's get a look at chip makers this morning. you have a mixed picture ams higher at 3.6% a pull back in sol

amsl is a mixed picture for the european chip miakers. let's turn to germany. the firm says vacancy rates remain at low levels adding it delivered stable performance in a challenging environment. it will deliver 80% of the planned estimates. annette has more on this pr pro pro proposal annette, what are they achieving with the plan and coming up with a counter to the subsidy offered as part of the biden i.r.a. in the u.s. >> it is the trigger to always find a level playing field

he is saying there is an existential threat to the energy industry which germany has a lot of with mechanical the carmakers need a lot of electricity and energy that is more or less the reason why the economy minister came up with the plan. that plan is highly contested because clearly the finance minister is quite an opponent to have further subsidies to the market clearly, germany went the way of shutting down nuclear energy which could produce cheaper electricity. having said that, the problem is the industry and energy heavy industry is facing an energy crisis of 25 cents per kilowatt hour it is reducing to 6 cents per

kilowatt per hour. that will lead to the life of basf something around 7 cents a kilowatt hour will make them competitive with other players in the world having said that, there is stiff opposition coming from inside germany as the finance ministry said of course, other nations are concerned that germany is pulling from their own because they can afford it of at the same time, germany as well as the country with a lot of heavy industry with mechanical and steel and metals and glass and that different states of the economy from others like the french economy

the plan for the industry is something they have been talking about with the risk of china and the u.s. where it is cheaper to produce for those companies coming from the energy world >> annette, i'm sure the company and industries within germany are pleased to see subsidies come through or proposed how does the german industry feel about these subsidy is this where thegovernment should focus or is it effective to see subsidies in another area >> actually they say it is a good idea. several industries came out with applause to that energy

proposal all of these companies are complaining that the costs are higher than other countries. not talking about china or the u.s. these are far lower. inside europe. germany traditionally because of the dependence on nuclear energy elevated prices. now with the war in ukraine and gas shortage has triggered higher energy prices there is not relief in sight lng gwill be more expensiexpens. it will trigger high prices because of how it calculated in the country. the demand for subsidy from the renewable stage and high energy

really wants it. >> annette, thank you for bringing us the story. fascinating. we will take a quick break coming up on the show, italy demands clarity after another prime minister alleges that giorgi giorgia meloni lies to the public we'll look at that after the break.

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welcome back to "street signs. i'm julianna tatelbaum and these are your headlines berkshire hathaway ceo warren buffett lashing out at the media for confusing the public >> the fear is contagious, always historically, sometimes the fear was justified and sometimes it

wasn't u.s. trieasury secretary janet yellen says there are no good options ahead of the debt ceiling. bill winters weighs in on the fed hiking cycle telling cnbc the market should not under estimate the price pressure. >> i think they will pause from here and binance halts bitcoin as shares surge >> the s.e.c. is an outlier. there is a lone with gary gengler with his view. he is not trying to regulate the industry as much as curtail it let's get a check of european markets which have been

trading for an hour and a half uk markets are closed for the bank holiday as those celebrate the coronation in europe, mainland, all systems are go we have a rally. it has been gaining momentum over the course of the program dax up 14 points the cac 40 in france up .20% ftse mib up .50% the spanish market is up 0.6%. decent trade this week after the difficult beginning to the week last week and close. turning to commodities we saw big moves oil prices rebounded on friday 4% apiece for wti and brent alongside the bounce in equities wti closed 7% lower and brent 5% down it was a retreat for the price of oil this morning, the gains from friday begin for gold, we are seeing the bid continue today with the .25%

gain gold gained last week. in terms of currencies the dollar index retreated 0.4%. this morning, a strong move higher in the euro up .30%. sterling is holdingsteady at 126.42 level as bank of england is in focus this week. italian foreign minister says the french government needs to clarify language after paris apologized for its interior minister accusing giorgia meloni of lying to voters about the migrant crisis the diplomatic spat caused him to cancel his trip on thursday to discuss how prime minister meloni is doing and how she has done over the last six months in her position is the ceo of the policy good to have you with us giorgia meloni has been in power

for six months now how is she holding up popularity wise >> popularity wise, meloni is doing well popularity rating is high, but they have plateaued. she is no longer rising. she has no opposition. she has no domestic pushback she has absolutely no issues on the domestic front, but one thing that is crucial about meloni and understanding is her entire government agenda is dominated by issues. whether it is fiscal stability and spending new moneys or geopolitics or migrants. there is nothing on the domestic front like tiny friction and small battles on civil rights. the stories are all made

>> you say that which is interesting, but also in terms of meloni's relationship with brussels, it has been less controversial than many feared when campaigning why taking this conciliatory approach to brussels >> interestingly, meloni has had the double speak she has been fiery on domestic, but when it comes to brussels and foreign policy, she tries to stick as long as this is doable for her. she tries to stick to the predecessor mario draghi and let's not forget there is an elephant in the room i.e., the next year elections in the eu meloni is not just the prime

minister, but chairwoman of the ecr conservative grouping in the european parliament. ecr is courted by the other large conservative group we see a lot of flirts as long as this is the case, i don't think anyone across europe will want to be harsh. the run-up to the next elections provide meloni with let's see a few year grace period. these two things are trying to st stick to draghi's line and flirtatious moment >> the grace period she has is interesting. four years ago, italy signed up for china's massive

infrastructure project initiative now we are hearing that giorgia meloni is intending to opt out of the project where does she stand precisely and do you see her ultimately breaking that agreement and severing ties with beijing on the initiative >> listen, we really don't know. meloni has talked the talk, but needs to walk the walk now we have the agreement with china and unless there is an opt out, it automatically renews. italy has gotten nothing out of the agreement. meloni suggeignalled she wantedo exit some have cautioned her not to be too aggressive and caution to sit down with the chinese. there is a risk that the cure is actually worse than the illness. so we drop out and opt out of

the agreement, but enter into new agreements with china. as we speak, there is a chinese trade envoy in rome. it doesn't look nice at all. let's see how it plays out >> francesco, thank you for your views. ceo and co- founder of policy center. binance resumed bitcoin withdrawals blocking them this morning. in the past hour, the company sees outflows, but is movement between hot and cold wallets brian armstrong questioned the s.e.c. saying it is curtailing the industry more than it is regulating it. dan murphy asked about the plans for expansion overseas. >> the mission at coinbase is to expand everybody in the world can benefit from the technology.

we start in the u.s. and now live in a number of markets around the world there is a focus on international expansion in the western hemisphere we have done it in the u.s. and license in bermuda to serve other regions. in dubai, we feel the uae is an important hub to serve this region of the world. middle east, africa, even india. so, i think the uae deserves credit for the commitment to crypto regulation. they are putting out a clear rule book. they he ave a dedicated regulat here i think they deserve a ton of credit for being business forward and embracing technology and potential, but also putting out clear rules to protect con consumers. that is attractive to us to

invest here. >> would coinbase ever move overseas in congress and regulators in the united states can't provide clear rules of the road you have a big issue with regulation stateside right now >> coinbase will not relocate overseas we will have a u.s. presence i can talk about some of the efforts that we're making there to getting regulatory clarity. the u.s. is behind we are seeing more thoughtful approaches in the eu where they pa passed legislation the uk has been welcoming for us there. that is a hub we decided to serve the uk market. now with the uae, we are interested in looking at this space as well. this is my first trip to the uae. i'm here to meet and listen with the regulators here in abu

dhabi. >> so walk through with what you l -- walk me through what you would like to see in the u.s.? what do you need to see from the regulator in order to continue to have your business function >> in the u.s., what we like to see is a clear raul book th -- clear rule book right now, there is not a clear rule book in the u.s in the absence of that clarity, coinbase showed good faith effort to do the right thing and introduce the right controls and audits that we believe protect consumers. we shared all of this with the s.e.c. when we were thinking about becoming a public company. they allowed us to become a public company nothing has changed since we've

done that. we still believe that we're operating in a fully compliant manner by the way, i should say most of the u.s. and people i meet within congress and regulator and the white house and others are actually quite positive. i think the broad consensus view in the u.s. government is there should be a rule book. this will require legislation from congress. the s.e.c. is an outlier here. a lone crusade with gary gensler and he has taken an anti-crypto view for some reason i don't think he is negligently trying to regulate -- necessarily trying to regulate the industry as much as curtail it it is an opportunity for coinbase to go get that clarity from the courts that we feel would benefit the crypto industry and the u.s. more broadly. coming up on the show, the uk puts on a dazzling display of

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welcome back to ""street signs. you see the dow is looking to bounce back at the open today. s&p is looking at an a muted stt standard charter ceo told cnbc he was optimistic about the bank prospects amid the turmoil >> we are not changing the way we operate we had deposit inflows since the drama. we are seen as a pillar of strength there is one lesson to be

reminded is in banking, you are always better off with a fortress balance sheet be the strongest person in the room and you come out the back end well we were strong coming in and strong coming out. >> you say you were strong you reported the largest first quarterly profits since 2015 you said standard charter is not for sale what happens if the fed comes back after july and said we are open to a deal would you entertain it >> you know, i said many times if somebody wants to look at standar standard charter and sees value, look at it we think we can run this bank independently for the long term and generate excellent returns if you can do better, be my guest. we'll have a chat.

that has not happened. >> not a take you would defend >> we defend against our shareholders have a right to know alternatives. we have been clear about what we can do as a bank we can grow our network business and super growth in the business in retail. we have a partnership with the market and middle east and asia. we have a very important and finance business those are the pillars of the strategy great growth and great returns if somebody wants to trump all that, be my guest. u.s. treasury secretarsecr secretary janet yellen warns of cons consequences if congress fails to raise the debt ceiling.

the warning comes as lawmakers try to make a compromise of raising debt obligations u.s. colleagues will speak to janet yellen later today at 2200 cet. when it comes to the debt ceiling, we have been here before it has been raised or extended or resvised 78 times since 1960. it is important and something that markets are focusing on we have seen a huge amount of volatility at the short end of the treasury curve that is certainly part of the market to keep an eye on the u.s. has never defaulted the expectation is they will come to agreement twith the nex milestone on tuesday a slew of economic data due

on wednesday we get the u.s. inflation print. then cpi and ppi on thursday for china. and thursday is the bank of england rate decision. that is ahead of the uk fla flash estimate on friday last week was a blockbuster report sterling is trading above 126 in the lead-up to the bank of england decision fascinating to see the rate decision or if the bank of england strikes a hawkish or dovish tone. we will see if it is the same story for the bank of england. we are nearly two hours into the trading session. for the markets open in europe, gains across the board

uk market is closed, of course, for the bank holiday today as people around the country gather for street parties and overall celebrate the coronation king charles iii was anointed and crowned on saturday in britain's biggest event in seven decades. a two-hour service and charles' wife, camilla, was crowned queen. many braved the mile as the royals were presented on the balcony of buckingham palace tanya is here withithes -- with now. what was your take on the service? >> julianna, it was as described. a two-hour solemn ceremony where king charles was formally crowned king charles iii and queen consort camilla was

crowned queen camilla. there were thousands of people lining the streets a lot of outward support for king charles iii the big question is how relevant is the monarchy today? what kind of king is he going to be he is well aware of that of course, he has been waiting since he was 4 years old he saw his mother crowned queen in 1953. a lot has happened since he has been waiting to become king. of course, he is very aware of the debate going on and should the monarchy still exist joining me now is baroness who played a big role in the coro coronation baro baroness, thank you for joining us what was the experience like in the coronation >> well, my role was to carry

the rod of offers of the queen she had asked me to do that personally i've known her for some time and we have done quite a bit of work on women's issues, domestic violence and so on every year, she he hosts an event for thewomen of the worl fes festival on international women's day. she is someone who is really concerned with issues i have been working on all my life as a lawyer recently, she helped me when i evacuated judges from afghanistan. i evacuated three planes and got out 103 judges and families. it was one of the hardest things i've ever done i made a plea in interviews saying i needed help financially because it was costing so much money. you know, as a friend might do, she contacted they that is the kind of woman she is

from her account, she sent a contribution to the funding of that she has had my afghan judges in to see her at clarence house before buckingham palace it was a big honor to ask to carry that it is the symbolism they wanted. the engagement of the wide diverse group of people in the coronation so they had asked people from many different parts of our society. i've sort of represented, i suppose, the whole business of women and women's rights and things she cares about >> baroness kennedy, there is debate if the monarchy is still relevant in 1994, you were one who wanted to see the end of it what changed your mind what kind of king will king charles iii be

>> the '90s were not a high moment for the monarchy. three divorces in one year great deal of discussion of the constitution as a lawyer, i was rleading the view of that charter we wrote and held a conference if there should be reform of the monarchy in among the house of lords and creating a freedom of information act and bill of rights at that time, i felt strongly that really it held in place the class system of britain. i could not see it would continue for much longer i thought it needed mod sa-- modernization. i still think it needs to continue what i feel now and i feel very strongly and we have seen it just now in the last year with three prime ministers. getting up close to politics as

i have being in the house of lords and part of the parliamentary system is that you need to have this separation between the head of state and the parliamentary system which is accountable to the people you need that. that changes there are highs and lows in it we had lows recently we have seen social media which is a huge impact on politics >> baroness, i apologize we have to jump in we are coming to the end of the program. thank you for your thoughts and joining us thank you very much, baroness kennedy. julianna, as you heard, a big debate >> i look forward to more conversations. tanya, thank you that is it for "street signs." i'm julianna tatelbaum "worldwide exchange" is coming up next.

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it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5. looming debt ceiling and what janet yellen says could be a disaster. and big tech push back in the eu a group of five companies and what it is