craig melvin: that's all for this episode of "dateline." i'm craig melvin. thanks for watching. [music playing] ♪ good morning welcome to "street signs." i'm joumanna bercetche >> and i'm arabile gumede. these are your headlines >> european equities take a breather after the bank of canada surprises the market by resuming its rate hiking cycle with investors weary it could give the fed impetus for his own hawkish outlook. u.s. treasury secretary

janet yellen says a strong jobs market won't stand in the way of the price pressure >> i see bringing down inflation with a strong labor market i think the data we have seen over last year and recently shows we are on the path wizz air posting a net loss, but shares gain after the forecast a return to profit in 2024 the ceo telling cnbc the industry must adapt to weather future crises. >> we are really making our business model resilient and operating more resilient i think that is a change uk prime minister rishi sunak prepares to meet with president biden at the white house to partickickoff a two-dap to washington to shrug off the

trade tensions between the two sides. welcome to "street signs." markets are focusing on central bank action the last 24 hours. we had a surprise hike from the bank of canada hiking to a 22 h-year high they decided to pause with the hiking cycle and get started again will have an implication of what the fed will do next week at this point, the market is sitting at 60% no change and 40% at .25% hike at the next meeting. that is the focus on markets a lot of attention on the central banks. rba with the interest rate hike earlier on

we had a pull back in equities. wall street under selling pressure cautious tone prevailing which continued into the asian markets overnight. we see it with the stoxx 600 down .60%. we will get the gdp number at 10:00 a.m. this morning. it is expected to be revised lower. of course, that is significant because it might show the euro own gdp level for the first quarter shifted to negative territory and downward pressure is coming from germany as for european markets, this is the breakdown. it is a mixed bag. we have the peripheries doing well with spain and italy up .25%. dax is not doing much. trading around the flat line we had an out performance from bsf and volkswagen with a jump in the autos today

the cac 40 sitting at 7,200 in france we are seeing totale with a bounce in the oil names after the drag early on this week. ftse 100 also down about .10% as well in terms of sectors, this is the breakdown. basic resources up 1% to the minors with a rebound. this despite the weaker data from china today, we are seeing a bit of a bounce in the sector oil and gas very much in focus again. we have seen a bit of a bounce in wti and brent that is helping boost that sector banks are in focus up .60% on the flip side, tech is down 1.3. what a run it has been for tech. specifically in the u.s. the nasdaq saw a put back yesterday. that is having an impact on how

european tech stocks are trading. telco under selling pressure at 1% in terms of u.s. futures, we sdro don't have a lot of data the three majors are not seen doing much at this point tilting to a negative session the bank of canada surprised markets by hiking rates to a 22-year high after being on pause in january to assess the previous rate increases. rates are at 4.75% policies indicate further hikes are on the way bank of canada is the latest central bank to hike this we'ek after the rba did on wednesday treasuries rose off that move with the investors suggest the hike will allow the fed to maintain a hawkish outlook at

next week's meeting. janet yellen spoke to cnbc in an exclusive interview and outlined her policy stance. >> i'm going to leave the fed to make its own decisions about what's necessary consumer spending has continued to grow in a pretty robust way we are also seeing areas of the economy that are slowing down. this is a judgment that my former colleagues at the fed are very capable of making as i said, i think what's important is to try to bring inflation down it's a top priority. >> the yellen maintained her claim that a soft landing is possible for the u.s. economy. >> i see a path to bringing down

inflation while maintaining a strong labor market. i think the data we've seen recently and over the last year suggests we're on the path with those characteristics. on the other hand, we are seeing some signs of easing pressures in the labor market which may be important in terms of bringing inflation down the quick rate has risen slightly job openings have declined somewhat suggesting a bit less pressure in terms of firms adding to their work force overall, the labor market remains very strong and inflation has now come down about 4% from its peak i think we'll continue to see progress over the next two years. >> the federal reserve is

expected to keep rates on hold at the june meeting according to the economists one-third respondents expect one more hike this year there is a 66% chance of a pause at the next meeting. that is a 33% chance of a hike that is still down from 78% a day ago according to cme fed watch. markets are pricing in higher probability of that happening next week. let's bring in the vice chair of deutsche bank. great to have you with us on the show. >> joumanna, today's shows have been about sports. before this, he has talked about the chances of inter milan beating city >> that's a different rundown. let's talk about the financials.

wonderful to see you let's drag you back and put your vice chair hat back on, ozan it feels the market is centering on two narratives right now. two camps. one camp believes we are in a sticky inflation environment and rates will have to stay higher for longer another camp who thinks the trends are the real inflationary and banks are at risk of overtightening where do you stand in. >> excellent 30% chance 5% chance of a fed hike. 30% chance on the fed, i think i side with the 60/40 camp i think concept is like you said the big focus is september and october. we come back from vacation and will they follow the rba and bank of canada path?

service inflation is sticky. central bank and ecb hiked in se september and october. m most of the macro hedge funds which were hurt in march believe that will be the case. the real money people feel 202 it 2022 will not be repeated. the final part to fall is wages will make us happier come fall central banks won't have to cut, but won't have to hike that hold will give risk assets and equity a lift. tough call big question at the moment, i still side with the latter and with the hold and real money >> you know what else is supporting that real money case? the fact that the data from china is gdisappointing. how are your clients thinking about that and how much of a risk to the global economy now

china is exporting inflation >> that is key it was supposed to be the rest of the world over usa. usa overexceptionalism we were that way for three months or so and now china is giving us the exact opposite vibes or prints. that, in itself, makes some people worry more about growth than inflation i think china is an important and key country like the u.s if they export on the factory orders, it will help my case in september and october. for the other side, we are behind the curve chase, stagflation hiking interest rates. not a good scenario. for that to be true, we need to both really choke on the growth side and not give any progress

on the inflation side. then, yes, we are in trouble. >> ozan, with the previous question you spoken about equities getting left with all of the permutations you put forward. that says you are giving a lot of opportunity in the market despite the high run. >> it is tough to go up, up, up every week six weeks for nasdaq now the famous dip people are looking for, for a while now, you are smiling, at some point will come. we were up 3,300 for s&p this year, it became 3,800 some famous people have been asking for it for a while now. that is helping equity positions. i would not be surprised if core cpi and it is talked about being higher than 0.2. if madame lagarde is on the

hawkish side on thursday, we may get the dip in equities. say we fall to 4,100 or 4,150. most of the camp will say we are right. the big choke is coming. >> and then the ecb executive board member said the cost of doing too little is bigger than the cost of doing too much is there enough strength in that u.s. economy to not feel the need for another hike? we are base bing the chances ofe pause too significantly and the moves by the bank of canada and rba is factored in >> you want to see the chief u.s. economy which is calling for one more hike.

he still feels the fed will skip on the next wednesday meeting and one more hike in july and then wait and see. the famous lag from brainerd says wait and see. joumanna said you should look into the expectations for cuts maybe as early as september. i'm not in the camp. also, i'm not in the camp they will be behind the curve and do like australia and run and hike in october high for longer. not higher for longer. that should be good enough for equities. >> there is a lot of things going in the macro space if you look at fixed income and how it is trading and some of

the currency fares have been range bound. euro/dollar is a wide range. it is still around 110 you look at bund and treasuries. how do you trade in this environment? how do you make money, ozan? >> good question somebody from experience it is a key word nicely timed yesterday, i had the global macro virtual meeting with clients from three continents. honestly, people who are smiling more were those who could focus on credit and equities for rates and fx specialists, that can be a tricky word. especially on the fx side. it is volatility rates are different. rate volatility is still up there, but it is not ideal

environment for buy and sell side when ranges are this stubborn for them to be broken, i think i have to be wrong on the phone call if we do feel stagflation, really, the recession being soft or hard or whatever, some recession. if it is approaching us, not in q1, but q4 this year, then 2022 will be back and macro funds can get a bit more excited. one more factor, something you know, macro performance in march hasn't been that great many people believe in february this year we could repeat 2022 pay rates, lower equities, wonderfully in 2022. it worked in february. because of silicon valley bank

and credit suisse. >> a lot of trips to zurich. we talked about your upcoming trip to istanbul football reasons i have to ask about your home country. a lot going on we are very much focused on the price action in turkey some people we would see a stabilization with the lira. what are you seeing? >> i understand what the market is doing, actually regardless of who won, president erdogan, i would not be surprised they would let the currency go. it has been stuck at the certain level for a long time in 2022. before really. all of that means they will have to let it go and allow some devaluation. markets are getting very good

signs from president erdogan worked well with for five years and increases the chances of more policies. now central bank, another key building to watch, and if the news is true and it is taken on, that is another positive sign potentially for the markets. more devaluation long dollar turkey at the same time, it is more consensus to play credit and equities especially exporters and non banks. long credit and long equity and short currency >> we have to see how it plays

out. ozan, we have to bring you back on in september to see how this call of your's will play out. >> that is how i like it my friend, it is time. 70% chance >> we will talk about football no matter what ozan, thank you. in corporate news, wizz air posted a net loss of 335 million euro for the year citing rising fuel costs and the war in ukraine. the airline expects to turn to profit in the fiscal year. wizz ceo said the industry is working to improve the profit volatility >> we used to be addressing events in the past there was an economic crisis and we had a plan to manage through the crisis there was something happening in the environment and natural catastrophe and we were dealing

with it. now a day, it is something effecting the tindustry you need to know how to deal with that. the only thing you know is you have to deliver certain things i think we are really making our business model a lot more resilient and operating with more resilience. expecting ongoing issues from the environment. that is the change volvo cars has unveiled the electric compact ev putting the focus on price as it looks to compete with ev rivals like tesla. it will be the biggest business opportunity in the coming years and sees the new car as a central target of making up half of all sales by 2025 for ev and going all electric by 2030 volvo ceo says the manufacturer focused on its pricing strategy.

and in the mean p tim-- meantime, we soda will bring about an ipo on the london stock exchange that is the largest soda ash at 600 billion pounds the ceo spoke to cnbc and talked about the london listing >> our headquarters are in l london 75% in the european time zone. we sell to 80 countries. we can contact more than a single business day of i think for us, this is a market which we understand. we are a mineral processor we have strong cash flow and

good growth. actually, when you look at this market, this is a market that understands the attributes. coming up on "street signs," armstrong won't be strongarmed over the industry. we will discuss next shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half

just like that go to shipstation/tv and get 2 months free

the securities and exchange commission says the offshore trading company says binance received11 b $11 billion in cusr assets the s.e.c. said funds flowed between that company and a company in the british virgin islands. it is is commingling assets with client funds gary gensler claims coinbase

traded crypto assets which are securities and should have been registered coinbase disputes that and is calling for clear rules. co coinbase ceo spoke to the u.s. colleagues and urged the s.e.c. not to overstep. >> trading a small number of assets we rejected 90% because we felt they were not appropriate for our exchange 200 are listed on our product. i don't know to his point about what is "t "there" there, ukraine raised $200 million and presidential candidates are taking it in. it can be used for all kinds of financial services we don't need the government picking and choosing >> armstrong voted against s.e.c. to allege against

binance. >> the companies could not be more different in coinbase, there is no allegation of misappropriation of customer funds. i have not been named personally this really is a technical matter about dclassified currencies. we will have the interview with christophe devusser do not miss that exclusive coming up next

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or

visit coventrydirect.com. welcome back to "street signs. i'm arabile gumede >> and i'm joumanna bercetche. these are your headlines. >> european equities take a breather after the bank of canada surprises the market by resuming the rate hiking cycle with investors weary that could give the fed the impetus to maintain the hawkish outlook. u.s. treasury secretary janet yellen strikes an optimistic tone saying the strong jobs market will stand in

the way of price pressure. >> i see a path to bring down inflation and maintaining a strong labor market. i think the data we have seen recently and over last year suggest we're on the path with those characteristics. wizz air posts a full-year net loss with the forecast to return to profit in 2024 the ceo says they must adapt to weather the future crises. >> expect the ongoing issues. and prime minister rishi sunak meets president biden at the white house after kicking off the two-day trip to the washington, d.c.

it's about an hour and a half since markets have opened in europe. let's check into how things are faring mostly on the up is the trading picture which is getting better than the markets initially opened seeing a drawback from yesterday with the u.s. markets. that filtering through a little bit. ftse 100 is sitting in negative territory. the dax on the up. ftse mib and ibex 35 is flat the dollar is on the back foot today. yesterday, it did draw support from higher u.s. treasury yields which have come through out on that front the japanese yen did strengthen against the u.s. dollar after the release of the gdp numbers with the revised number of 2.7%

as opposed to the initial number of 1.6 a general back foot stance for the u.s. dollar. on to the futures board. we will take a look at some data weekly jobless claims and wholesale inventory are due today. slightly up is the sentiment we are getting as open comes hot and heavy. the private equity conference is under way in berlin with the alternative credit issues on the agenda. annette caught up with the swedish group and she asked how they are moving. >> our landing is the no land scenario if you look at the u.s. and europe and asia, we are not in recession anywhere

maybe pockets of countries are in recessions. the employment levels are high corporate profits are solid. the banks are strong with individual issues there. we hope to muddle through and when the capital market stabilizes, we hope to get ipos again and all get back to business >> let's get to annette at the conference in berlin with a special guest. annette, it is insightful listening to the community given how challenging the conditions are for investing and financing. >> reporter: exactly it is a difficult time for private equity players and that exit road which is closed with ipos not happening not in the first half of this year there are plenty of topics to

talk about also the disruptive forces with gdp and other things i'm joined by christophe who is leading the private equity sector in europe there are so many topics around. let's kickoff with the generative a.i. or chatgpt which is impacting the industry. >> there is a lot of talk here about the impact that generative a.i. will have on the industry some people say it is fake because chatgpt gives the wrong answers of answers. we think that is the wrong answer >> is it as big as a thing like the digitalization of assets which assets or industries might

get most disrupted >> for us, we see it as part of the next wave of digitalization. there is a significant amount of industries impacted. if you are a software investor at the moment, the coding and making of the software through generative a.i. will be done 50% faster if you are sitting a company and you don't apply generative a.i., and you don't do it, you have an issue. you will be able to take advantage over your come pet to have -- comcompetitors if you integrate generaltive a.i., you will have an advantage over your p competitors. >> do you feel the private

equity industry embraces a.i.? >> we see the leaders of the private equity industry really embracing it both for themselves and for portfolio companies. in the current environment and cycle, the bar has risen for private equity companies in terms of which get back in the market and which companies will trade. if you can put your company at the front of the next wave of digitalization, you will attract the buyers you will produce better assets by integrating the next wave through generative a.i >> let's zoom out and look at the state of the industry. we were touching on the topic with exit markets closed what are your expectations >> the market is down. we are in one of the worst cycles in the last 15 years. it is not the first time the

industry goes through a cycle. so it will take a few months, maybe a year, to play out again. the underlining secular trends is what we hear from the conference the underlining trends and secular trends is positive private equity is driving the best returns, for sure, in europe, versus listed. people want to allocate money to the private equity asset class for diversification reasons because the number of companies on the stock market have reduced significantly. if you want to invest in the broader economy, you can only get access to private equity on the longer term, there are still drivers which is the return which continues to be better and diversification of allo allocation. >> are you expecting regulation in europe will respond to that need to increase yields? >> the regulation in europe is

always trying to make sure there will be transparency and that people are compliant for sure, private equity will go toward retail investors. we will see an increase of the regulators looking at everything is compliant and transparent >> again, let's look at the regional dispersion. some guys here, at least i spoke to those who favor the united states over europe, what do you think is more attractive >> if we look over the last decade over theand over the las we see europe as a place to go for private equity the overall returns of private equity in europe have matched those in the u.s. and in asia. if you want to allocate money in

europe, you are better off allocating to private equity because of the spread and it is good to invest in europe because it has matched returns easily. >> looking at the industry, where would you say which industries are most interesting now for p.e. >> there has been a long-term trend toward tailwind industries industries with a long-term tailwind penetration curve and resilient through cycles that is more so today, obviously. technology continues to be attractive back-to-back critical software and the healthcare market of the we industry and those industries with long-term tailwinds >> reporter: thank you so much with that, i'm sending it back to you this is wrapping up our coverage

from the conference in berlin. >> annette, thank you for that it is interesting getting a sense of things all morning long let's move on to corporate news gamestop shares trading lower in pre-market after ceo matt furlong was fired on thursday. brian cohen is the new executive chairman >> you are seeing a big move in the market down 20% almost for those shares it is worth pointing out, they are down 60% since the whole madness of covid lockdowns and meme stocks. now we're in a situation where the meme stock king is the executive chairman investors not taking it well speculation if he is the right person to drive forward profits. >> we had that situation and asking how long will that help the business at all, if any.

>> if he is the right person to do it. one story we're watching closely to continue with the football theme lionel messi announces a move to the u.s. and to david beckham's inter miami. he has won the ballon d'or and more than 800 career goals to his name including the world cup final. he may not get the same success in the mls after phil neville. he is messi. he is the football g.o.a.t it is a surprise he spurned the offer from one of the saudi teams and also decided not to go back to barcelona which is where his original love is. >> two things quickly.

i actually thought or i heard from friends that initially he was going to go to inter miami and get loaned out to barcelona as a swansong. i don't know if that will happen that was initially the concept that was put forward at the time i found that very interesting. i think, secondly, it is not a surprise he is going to inter miami. in 2018 when david beckham formed the club, he sent david beckham a video saying congratulations on forming this great club wish you all the best in your venture. who knows? maybe in a few years you can give me a ring. >> there you go. he planted the seed. you should try that with man united maybe they will give you a ring in a few years arabile tweeted something out that people shouldn't be that surprised. miami is argentina's second largest city they are all their shre shoppin.

>> it is home there. >> it is a family decision for them his family, his wife, his kids, probably want to move there. >> quality of life at this stage of your career, of course, family becomes so much more significant and important they're happy. he has all of the money he needs. >> i tell you one thing to finalize this point. you talk about sports stars and becoming older messi is only 35 we wi we make it sound like he is 75 >> he is only a year older than me. >> oh, revealing number. let's talk about what's coming up. we are looking for a home run or a googly rishi sunak preparing for a bilateral meeting with president

biden after stopping at the ball game along the way it's hard to run a business on your own. make it easier on yourself. with shopify, you can have everything you need to streamline your shipping, returns, and product storage, so you can focus on growing your business. because when we work together, the future is bright. it doesn't have to be lonely at the top. join the millions at finding success on their own terms. start your

journey with a free trial today. when we started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster and we're saving a ton. go to shipstation.com /tv and get 2 months free.

uk prime minister rishi sunak will meet joe biden on his second day of the u.s. visit today o today. he will attend the global event on a.i. later this year. the first of its kind. a trade deal between the two countries is dropping down on the agenda sunak met congressional leaders and took a tour of arlington national cemetery to mark the anniversary of d-day as well as paying a visit to washington nationals game he did not throw the opening pitch saying cricket is more his sport. >> he said i don't like cricket, i love it. >> i hope not. it would have been corny speaking to sky news, sunak set his priorities for the meeting. >> u.s. is our closest trading

partner. i'm pleased to announce 14 billion pounds of investment to support thousands of jobs in the uk that is important. next, i want to make sure our trading relationship evolves to protect against the new threats we face. not just a.i., but others as well expect to see me talking to president biden about economic security tomorrow. i want to make sure our relationship can protect our citizens and also continue to support ukraine. >> quite an important visit. all of the sports jokes aside, it is an important one, the fact that rishi sunak made his way over to washington and will have a bilateral with president biden. that will happen today yesterday, he met with members of congress. i think what is interesting is it feels they have given up on hopes of signing a trade deal with the u.s that was one of the big carrots that former president trump was

dangling in front of the priorer uk primary boris johnson before the brexit talks it feels hopes of that being implemented have fizzled away. >> i must say it is a bit surprising that it has fallen down so much there was a point of brexit in many ways. post brexit, they hoped to get a deal going between the two countries. not happening or not in the agenda thus far or high on the agenda professor tony is with us from the london school of economics and political science school of public policy. professor, thank you for the time this meeting between the two leaders is as significant and important as it may be, but a.i. seemingly top of the agenda as opposed to trade how much does that help the two nations? >> i mean, both united states

and united kingdom are clearly leading countries or scientists are clearly leading in the world on many of the issues. i think the uk prime minister rishi sunak feels this is something the uk, you know, outside and not as big as the united states and outside the block of the european union now, but obviously rishi sunak feels the uk has a role to play here and that can, given the uk's position, can join with the united states and other allies in standard setting for the rapidly changing technological world. >> my worry or my interest in this is around the i.r.a it was called dangerous because

it risks the subsidy race. can the prime minister, perhaps, push that agenda the very least and talk about subsidies or does this purely become a relationship they are trying to maintain pto ensure the west remains allies >> there are geopolitical issues at play here particularly given ukraine where the uk and u.s. don't want to drift apart because of decisions in the united states and sub as i -- sub asidizing industry. the uk cannot replicate. the appreciate side in the negotiations and prime minister and foreign secretary will want to do is try to ensure that the trade relationship between the u.s. and uk doesn't do the kind

of harm to the competitiveness with the green industries and many have said it could do >> speaking about the war in ukraine, how has the alignment of interests militarily between the u.s. and uk improve the state of the relationship between those two nations? >> i think the relationship is very close obviously, the united states and uk relationship going back a long period. certainly through the second world war and beyond it has been very close and other allies including australia and canada and new zealand there is an alignment of interests. the alignment with rishi sunak, the conservative prime minister in the uk and the biden administration will be a close one on these issueissues the paradox of what has happened

in ukraine is that it has brought nato allies and u.s. and uk being leading nations within nato, to come together and think about that alliance and spending on defense in a way that hasn't happened in a long time. >> relationship with china is emerging as a hot-button issue as you look at it through the lens of the eu the eu is taking a more politics approach to china than the u.s where does the uk stand in the middle of those two? >> well, in the middle obviously, smaller power as i said still an important one with the role with the united nations and long trading history i think the more hawkish attitude in the united states toward china and less hawkish and a little in the eu i think the uk and prime

minister sunak and opposition party in britain have to have a discussion about china whinechina is an important trad partner for the west there are hawks in britain think china has an important role as a trading partner. i think as many things, the uk position and rishi sunak's position is going to be an attempt to what the british have tried to do diplomatically that is be a bridge. >> yeah. professor, we will leave it there. thank you very much for your comments and insight on the important visit. professor travers from the school of public policy. before we go, let's look quickly at the european markets. mixed bag today. we have the indices trading in

the green. cac 40 and dax up .10% ftse 100 is lagging down .30%. not a lot to watch with data there is going to be a lot of focus on next week with the u.s. cpi number and the fed meeting and we have the ecb on thursday as well. a lot of focus on central banks. >> the u.s. futures board is looking like this. no earnings, debt ceiling resolved joumanna noted nothing until next week. trying to find direction let's head off for you that is it for today's show. i'm arabile gumede >> i'm joumanna bercetche. "worldwide exchange" is coming up next. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for shipping, were cut in half just like that go to shipstation/tv and get 2 months free

ready to take your business to the next level? scale it with the commerce platform, made for entrepreneurs. shopify is specially designed to help you grow your business. with easy, customizable themes that let you build your brand. marketing tools that get your products out there. yeah, way out there. shipping solutions that actually save you time. and that's just the beginning. from start ups to scale ups. online, in person and on the go. shopify, your all in one commerce platform. we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes)

(chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch.

it is 5:00 a.m. at cnbc global headquarters. here is the "five@5. we begin with too far too fast top strategists at jpmorgan chase casting down on the rally. our expert money managers weigh in with recommendations of their own. taking vision pro to the next level why app developers will have to turn the tide. and waiting for the smoke to clear. millions waking up to slightly clearer skies afte