Transcripts For CNBC Street Signs 20240714

The various things that they make, and i said that thats okay that we will keep selling that product. China logs the highest close since the end of april hopes rise for an end to the u. S. china trade war Deutsche Bank shares also jump as sources tell cnbc the german lender will consider up to 20,000 job cuts as part of a Major Overhaul and crude extends its gains after iran signs off on a saudi russian plan to continue production cuts, but some Oil Ministers are unhappy the decision was made without them if opec wants to be alive, should decide inside opec, not to receive their instruction from outside to bring you the latest numbers from the eurozone in terms of manufacturing pmi the month of june, final numbers, they have come in at 47. 6 that is against the preliminary number of 47. 8 and thats against the 47. 7 number we saw for the final back in may remember, those numbers are the fifth straight month of contraction factory output, new orders seeming to deteriorate steeply and the bank log of work declining sharply. Back in may that number 47. 7 the sentiment has deteriorated with weaker demand in export markets and trade war disruption look at how European Equity markets are fairing this number. The benchmark for the continent is up almost 1 this morning, obviously some of the sectors with exposure to trade performing in particularly very well amongst those the auto sector lets take a look at how european auto stocks are performing this morning, all of them well into the green bmw up 1. 6 . Daimler 1. 5 porsche trading 2. 4 , up renault 1. 6 these stocks very, very exposed to the narrative around trade and seeing another sector there the semiconductors performing relatively well. You can seeof course that reaction seems to be based on those conversations between the two u. S. And chinese president s and its because of those two getting together in osaka that seemingly were seeing some of those sectors performing well. The u. S. And china said they will restart trade talks after a meeting between president s trump and xi washington promised they would not impose any new tariffs so long as beijing resumes to the negotiating table. And they can sell some products to huawei and a u. S. Official says the decision does not represent a, quote, general amnesty for the chinese tech giant. After he arrived in the south korean capital, seoul, mr. Trump hailed the progress made in china. It was a great summit, a lot of good spirit a lot of goodwill and that brings really very importantly the World Leaders together, each to discuss some of the most important Economic Opportunities and challenges facing our nations and one on ones are very important when you have individual complaints im sure most of you havent heard but i met with president xi of china. I snow you didnt hear about that but we had a really good meeting, i think so were continuing with our discussions on a trade deal. Well see what happens good chance. My colleague joins me live from osaka nancy, what stuck out to you after those conversations between the two leaders as being particularly significant in terms of the Market Reaction we have now seen over the last few hours . Well, willem, one of the thing that is most striking is the leaders here and some of the participants we have speaking to on the sidelines of g20 summit in osaka didnt seem as relieved and suppressed as the investors. Yes people did welcome that the talks were constructive, that they were back on track, as President Trump said himself but i can tell you we spoke to the dutch finance minister, chilean vice minister of trade both of whom said basically lets see how long this truce lasts because people here have memories of what happened at the prior g20 meeting in buenos aires. They met and decided to put a pause on any new tariffs because they agreed to work more on the progress on the trade front. But then again, remember what happened in early may, President Trump did move forward with additional tariffs, the same round in which he decided to put on hold back in december at that g20 meeting theres a degree of nervousness at the meetings here in osaka that we can see those play out again and cant take the tariff threat off the table entirely. Be that as it may, we spoke to others that were encouraged by signs that the two parties were ready to change the rhetoric there was so much concern about the breakdown in talks in early may and whats that doing to the Global Growth picture. So the fact that were not getting a new round of tariffs is good news we cant play that down. Im sure thats a big part of why were seeing this move interrisk assets the other big surprise, because remember most Market Participants were expecting some kind of truce, what they didnt necessarily expect was President Trump showing a willingness to give ground on huawei. But this is now surrounded by some confusion, you might say, because President Trump did say that he will allow u. S. Companies to do business with huawei, but he didnt say whether or not he was prepared to take huawei off the blacklist, off the commerce departments entity list we understand that issue is going to be part of a discussion taking place in washington, d. C. On tuesday so effectively President Trump said well see on the blacklist. Take a listen to what else he had to say in the press conference after his talks with xi jinping. We mentioned huawei i said well have to save that until the very end well have to see. One of the things i will allow, however, a lot of people are surprised we send and we sell to huawei a tremendous amount of product that goes into the various things that they make. And i said that thats okay, that we will keep selling that product. So there you have President Trump saying thats okay, referring to u. S. Companies currently selling products to huawei will let them keep selling those products but when asked specifically about the entity list, as i mentioned, he said they didnt make a decision on that yet. He also said, as you heard that the whole huawei issue will be saved until the end of these trade talks. That could be problematic because we understand that beijing wants to see commitment here on the huawei issue what the president was talking about specifically in that press conference are Companies Selling components and parts to other huawei products that dont have a National Security interest this doesnt have anything to do with the 5g roll outand the fact they dont want huawei equipment being used in the 5g so, yes, many are encouraged that progress is being made, that the two even met at all and were able to call it a constructive, a good meeting as you heard President Trump say himself. That is significant. Many want to see more in the way of how these two parties are going to iron out other difficult issues around tech, around intellectual property but for the time being i think when youre looking at the reaction in the Semiconductor Space and among chip makers there could be some relief simply because theyre hearing the president say there wont be a blanket ban. Theyre willing to look at car by those that arent impacted by National Security. For a time a lot of these semiconductors were getting sold off even if they didnt have direct relationships with huawei because theres so much concern about tech being caught up in this trade fight and what it could mean for supply chains globally willem, back to you for now. For more reaction to the weekends issues, head to our website cnbc. Com sticking with asia, hong kong protesters have smashed windows at the citys legislative building as a rally to mark the anniversary of the territories return to chinese rule gathers strength, huge crowds are expected for that handover march in recent weeks, participants in similar protests have insisted the islands democratic freedoms should be maintained my colleague joins the program live from hong kong. Whats happened so far today, and can we expect further violence or even clashes between protesters and Security Forces as that larger crowd gathers around the Legislative Council building there reporter its very difficult to say, so the scenes that were seeing out of the Legislative Council live feed right now, thats some of the protesters showing some violence after weeks of violence and weeks of protests, really calling against the hong kong governments initial move to push forward with the extradition bill which created a lot of controversy by the way. But in the meantime, what were seeing on the other side of this protests, this is the demonstration that marks the july 1st handover anniversary. In fact, 22nd anniversary of the handover of hong kong from the british rule to the mainland chinese rule now, what were seeing over here at our live location is very much peaceful. People are singing, people are just joining hands with their families and babies and out on a date with, you know, Holding Hands out there, boyfriend and girlfriend so, this is the peaceful part of this demonstration they are two different incidents happening right now in hong kong and, in fact, the july 1st handover demonstration organizer decided not to make their way to the Legislative Council so that they keep their distance away from the violent behavior of some of the protesters they want to make sure that things end up peaceful and they want to make sure that they gather more people to come out and join throughout the day. This goes to show, of course, this political mood here in hong kong thats very much uneasy, which has been which it has been for weeks now because of the hong kong governments push toward this extradition bill which it decided to suspend a couple of weeks ago. In the meantime, of course, the Handover Ceremony here in hong kong earlier this morning was a scale back quite a bit as well because of this political uneasiness as well hong kongs chief executive called for promise, by the way, the governments more openness and tolerance and to listen better to the public, but calls like that, messages like that, will likely to fall on deaf ears on a day like this now this demonstration marking the july 1st handover tends to really speak in volumes about the political status that hong kong is in, reflect mood and of course here in hong kong over the last years and decades so well see the exact turnout at the end of today and whether this ends up peaceful and making sure that they carry their message in the right way guys just speaking of the mood there in hong kong, we can obviously hear the singing, the music behind you there you can see the crowds, thousands of people strechg off behind you, how does today in your experience compare to some of the previous protests we have seen around this controversial extradition bill reporter so first of all, their message is very much focussed and specific this time around i see signs and fliers among the protesters that theyre holding up basically calling for the five demands coming from the antiextradition bill protesters one resignation of chief executive, complete retraction of this controversial bill and, three, release of the protesters that were arrested recently because of recent violence, the clash with the police here in hong kong. So, yes, this is really about the marking of the handover of hong kong, but this year in 2019 the message is very much targeted at the chief executive kerry lam who tried to push forward with this controversial bill without garnering much of public support on her side guys thank you so much for your time thanks for joining us live there from hong kong well, separately iran has endorsed a plan by saudi arabia and russia to extend existing oil supply cuts by 6 to 9 months, that will pave the way for a deal at the opec meeting in vienna, at least thats what they hope. My colleague dan murphy joins us live from vienna reporter thats exactly right, willem. This is particularly interesting, isnt it . Certainly a lot of commentary around this move to essentially create a deal outside of opec and then bring the deal to opec to be rubber stamped before we get into that let me tell you whats been happening over the past hour or so over my Left Shoulder we have seen a parade of black s class mercedes with motorcycle escorts passing through the streets of vienna carrying all these ministers into the opec building and over my right shoulder here is the main entrance to the building itself which is essentially a whole series of rooms connected by an infamous stairwell. As i pointed out before, make no mistake, these ministers are not coming here to discuss a deal, theyre coming here to rubber stamp one and thats because the decision essentially to extend the current opec agreement into the second half of the year and perhaps into early 2020 was thousands of kilometers away agreed to and saudi and russia that has caused some controversy upon these ministers because they feel left out of the decisionmaking process. One minister we spoke to earlier today the iranian minister who plays a pivotal role said that he would like to reject this unilateralism happening between saudi arabia and russia. He said he will not be supporting the cooperation deal but he did say he is not opposed to an extension of the current agreement or a deepening of the cuts here is part of what he had to say earlier in listen in. I have no difficulty, as i said i have no difficulty with this to rollover the cut or any new decision for cutting more. But the main difficulty and danger which opec facing now is the opec is another organization to receive the proposal has cooked outside the opec and to approve it it is not the mission of opec. Opec is an organization with 14 members and in our issues all the members should discuss, should consult with each other and making a decision. Its the main difficulty that i believe opec faced in this situation. Reporter irans Energy Minister speaking to the media as he arrived here in vienna his comments are likely to fall among deaf ears here because irans position has been discredited not only because its a smaller producer in comparison to saudi arabia and russia but also these major producers particularly saudi arabia have long been feuding with iran and they see iran as a regional aggressor in the middle east obviously that country has been under significant sanctions pressure from the United States as well and i also asked whether or not iran accepts any responsibility for the downing of the u. S. Drone and the six tanker attacks that have occurred in the strait of hormuz and off the coast of oman in recent weeks he said its important to look at who is benefitting from this instability in the middle east and essentially pointed me in another direction. So, were going to be looking out for a lot of commentary on that front on regional tensions in the room. The other thing were going to be looking out for is exactly what these ministers have to say when it comes to the demand outlook as well. This is very, very important for the oil market we have seen that conversation between President Trump and president xi at the g20 helping to ease some trade tensions. This is important because obviously it flows into Global Oil Demand and sentiment in the oil market we have seen prices recovering, indeed pushing up more than 2 off the back of that commentary and news on the extension of a deal it will be interesting to see what the ministers have to see about the forward growth back over to you dan, thanks so much, dan murphy live there in vienna. If you have anything you want to share about the u. S. china trade talks, the march in hong kong or the opec Decision Making process get in touch on twitter or tweet me directly. Coming up on the program, cnbc sources say that Deutsche Bank is preparing for drastic measures to help with its turn around well get you more details about that after this break. I was on the fence about changing from a manual to an electric toothbrush. But my hygienist said going electric could lead to way cleaner teeth. She said, get the one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs gentle rounded brush head removes more plaque along the gum line. For cleaner teeth and healthier gums. And unlike sonicare, oralb is the First Electric toothbrush brand accepted by the ada for its effectiveness and safety. What an amazing clean ill only use an oralb oralb. Brush like a pro. Well, the political battle between switzerland and the eu has potential to impact stock markets. Thats because european investors will today be blocked from trading swiss shares on eu exchanges and swiss traders will also, in fact, have lost their access to eu based bosses. Regulators impose the band and allow switzerland status to expire after talks between brussels and burn over the relationship, the Partnership Agreement broke down the permit had allowed swiss and eu shareholders to deal freely across each others borders. European investors face punishments including imprisonment if they violate that ban well, sticking with the financial sector, Deutsche Bank looks set to get another Major Overhaul cnbc sources confirmed reports that german lenders Supervisory Board will meet this weekend to decide on cutbacks that could include slashes as many as 20,000 jobs. My colleague is in frank furt flashing out these details anneta. Yes, indeed Deutsche Bank is actually moving bolder and bolder when it comes to their restructuring so the plan, as of now, it still can change, i have to say, is that the job cuts could amount to as much as 20,000 people, primarily focussed in the Investment Bank. And here the equity trading business is one big focus, but some rate business could also be affected we know that the equity trading business is a huge loss making affair for Deutsche Bank so jp morgan analysts are estimating theyre losing some 600 million euro every year in that specific area of business, so the plans are involving that there will be major cutbacks mainly also in the u. S. And Investment Bank also an area where there was a lot of criticism all the way along from investors and analysts because Deutsche Bank is just too small to really compete with a big wall street banks there and that makes not a lot of money there so, thats one big plan. Another part of that plan is to create a bad bank which could see the lenders shift up to 50 billion euros in assets into that bank in order to run them down or sell them. And another big area of that Restructuring Plan is also to change personnel and the Management Board the current head of the Investment Bank is bound to leave as is the head of the Regulatory Affairs who is also a member of the Management Board so it will be a smaller, leaner Management Structure Going Forward most likely. As of now, it seems that the current ceo of Deutsche Bank will also take over the Investment Bank in order to control the shift and restructuring sort of hands on so thats for now. What we know is that on july 7th, this is coming sunday the Supervisory Board will meet and will decide on those plans for that, back to you. And clearly shareholders seem relatively happy with this development. Were seeing the share price up more than 2 today im wondering in terms of the pressure on the bank to make these kinds of changes, whats been the obstacle, if shareholders like the idea, if analysts have pushed the idea, management is now prepared to do this, has there been a reason its taken quite so long well, its an interesting question i mean, we talk about Deutsche Bank for so many years now and i think there was a big reluctance to really shrink the Investment Bank because for so long Investment Banking was the key revenue driver of Deutsche Bank they were also kind of proud to be the only german bank who has a large footprint everywhere also in Investment Banking and i think that was one of the biggest reasons behind that sort of reluctance to really address the problem. But by now i think everybody is very much awake and knows that theres no alternative back to you. Thank you so much coming up on the show, the deadlock at the eu continues as leaders struggle to agree on who should take the blocks top jobs well be live in brussels next did you know you can save money by using dish soap to clean grease on more than dishes . Try dawn ultra. Dawn is for more than just dishes. With 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. Try dawn ultra. Welcome back to street signs im willem marx in london and these are your headlines this monday morning. European tech stocks soar to the highest level in a year after president s trump and xi called a timeout on fresh tear i haves. One of the things i will allow, however, a lot of people are surprised, we send and we sell to huawei a tremendous amount of product that goes into the various things that they make, and i said that thats okay, that we will keep selling that product chinas shanghai composite logs its highest close since the end of april and u. S. Futures rocket higher as hopes rise to the end for a u. S. china trade war. Deutsche bank shares also jump as sources tell cnbc the german lender will consider up to 20,000 job cuts as part of a Major Overhaul and crude extends its gains after iran signs off on a saudi russian plan to continue production cuts but some Oil Ministers are unhappy the decision was made without them if opec wants to be alive, should decide inside opec, not to receive their instruction from outside i want to bring you some uk manufacturing pmi it is out for the month of june and its 48. 0. Thats down from mays number of 49. 4 and is lower than the reuters 49. 2, in fact the lowest since february, 2013 the output component was 47. 2 for the month of june. Thats against much significantly Different Number in may really interesting to see there what the market numbers are showing about this, the organization showing that more uk businesses are cutting back on day to day and Capital Spending the last reading show that british manufacturers were quite optimistic in part because some of the brexit uncertainty had reduced. You can see there sterling is nearly 2 5 weaker against the u. S. Dollar on the back of that data lets look at currencies more generally following on from that you can see the euro is weaker against the dollar the dollar seemingly the stronger player in the market is around a third percent higher than the japanese yen and has taken a significant jump against the swiss franc there. Lets check in on the major markets in europe. You can see what the play is looking like at this stage of the morning, ftse 100 trading. 9 higher back up to 7,500 level. Germany, 1. 27 higher of course helped in no small part by those auto stocks that have done well this morning on the back of the u. S. china trade tension being eased somewhat in paris, 2 3 higher and italy the ftse mib is up. 5 interesting story out of the italian Banking Sector over the course of the evening last night and this morning the ceo talking about the fact that he does not see merger activity in the banks future. Theyll be unveiling a Business Plan later this year, but for now looking on focussing on organic growth after of course those market rumors around a tieup with the bank and being linked to the french giant soc jen. Lets look at the u. S. Futures before the open of the market, all looking to open significantly higher again, seeming to be a bit of a rally on the back of the easing of trade tensions after president xi and trump met in osaka. Back here in europe, the eu is struggling to reach a deal on the top jobs because of a split between the center left and center right group my colleague joins me from the heart of the european quarter in brussels whats the latest . What is going on there, sylvia reporter well, at the moment theres no agreement yet i have just spoken to two european different officials and they say there is no white smoke yet. There is suggestion that the 28 heads of state are closer to an agreement. And this is actually after more than 16 hours of discussions here in brussels and these media reports suggest that if indeed the current deal thats on the table goes ahead, we will see currently the first Vice President of the European Commission as its next chief from the netherlands, who was a Foreign Affairs minister for the country as well and who belongs to the socialist party in the eu the center right family, the epp gets two positions being the European Parliament presidency as well as the European Council so the next person that will share the summits here in brussels but its very early at this stage to see whether thats actually the case, but let me also just mention the ecb presidency because thats also very interesting for our audience, different heads of state told me here yesterday they do not expect an agreement over who is going to replace mario dragi at this summit but if indeed we get a summit over who gets to lead the executive arm of the European Commission after october, then we will be one step closer from finding out who is going to be the next ecb presidency and looking at the names there, we have currently on the table for the other presidencies that being the commission, the council, the parliament and it looks to me that theres no theres actually no member from south europe and that could actually increase the chances of france getting the position in frankfurt. But lets see whats going to happen in the next hours there are a lot of moving parts, but let me just stress that at this stage theres no breakthrough yet sylvia, thanks for tracking all of the complexities around this rather complex process. My colleague there live in brussels well, italys jobless rate has fallen to 9. 9 in may, the lowest level since february, 2012 some 67,000 jobs were created in a boost for the Italian Government youth unemployment was also down slightly from 31. 1 to 30. 5 , of course, still a long way to go until they get back to those 2007 levels, but preserve some room for maneuver for more serious downturns, that its advice for the bank of International Settlements for the worlds major central banks. The general manager said Monetary Policy should act as a backstop rather than a means to achieve higher growth. He also questioned the effectiveness of Monetary Policy as a tool when rates are already so low and global m a found its cruising speed transactions totalled 1. 8 trillion dollars so far this year down 11 compared to the same period last year but up 17 compared to the second half of 2018 the global editorial analytics manager joins us here in london. Is there any overarching theme that you can use to explain why the numbers for the first half for this year are better than worse than they were a year ago but better than they were for the previous six months or is it never that simple . Its not simple but question find some explanations there was a downturn obviously in the first in the second half of last year. There was obviously the big market selloff played a part, so at the end of towards the q4 and 18 ceos and deal makers were a bit cautious to see what was going to happen to the equity market and general situation of the economy, so there was a big slowdown there, but a good pickup the First Quarter of this year was actually quite slow but then theres been a good pickup of activity in the Second Quarter especially on strong showing from u. S. Domestic. One of the big themes for Market Participants the last few months of course has been the trade tension between the u. S. And china and the tariffs imposed on chinese goods in particular has obviously been quite a challenge for firms there. Have you seen that reflected to some extent in the latest data you have about m a in terms of chinese firms being a little more cautious about trying to snap up foreign assets absolutely. One of the big things were seeing is the lack of big cross portfolios obviously you can see the impact from trade war or china being also on the back foot so theres been a really drop in cross border m a activity. Chinese investment into the u. S. And europe is at the lowest level since 2009 so, yeah, the kind of Global Forces happening in the Global Economy are definitely having an impact on m a. Is that protectionism, is that greater regulation about some of the potential tieups or again is that too simplistic an interpretation no. Theres been a lot of emphasis on protectionism theres also been the Strong Performance of the u. S. Economy so that has played a part whereby we have seen a lot of u. S. Companies taking over the competitors on their home market, but you have companies thinking that its now time to kind of get a stronger grip perhaps on their home market or focus on their core business because of the current geopolitical and economic situation. We have seen a number of high profile blocked mergers here in europe, trance National Efforts at least by companies to try to come together and the European Commission has played a big role in that. Whether thats been the cause or not, is there a massive distinction in the m a activity levels we have seen in europe versus the u. S. . Definitely. The u. S. Was up like 10 in the first half of the year whereby the europe was down about 40 . So theres been a big kind of shift there. And as you mentioned, a lot of deals didnt happen. A lot of deals that were expected to happen didnt happen whether for competition reasons. There was also the uk blocked by cma. The semens merger of the business was blocked by the European Union theres also a call from deal makers, from politicians for the European Commission to look at those deals perhaps more on the global scale and not just look at European Competition if we want to compete with those big u. S. Players that are currently in the u. S. One area where we hear a lot about regulation, of course, has been the tech sector, especially when it comes to the u. S. Versus asia versus europe and im wondering has that been an area where we have seen an up tick in m a activity if so where are buyers looking for value, where are they looking to bolt on assets that will be useful for their business. Yeah. Tech has been a big theme as well we have seen for the first time 16 in volume of m a activity has happened in the tech sector. And youve got sectors like media, automotive, Financial Services looking to buy into tech, to kind of protect themselves from the disruption of newcomers, et cetera. So, yeah tech is definitely on the rise and private equity as well has played a big role. A lot of the tech has come from private equity interest as well. Lets pick up on that for one financial question money being relatively cheap private equity benefitting, of course, from that. Are you seeing private equity as the largest or Fastest Growing driver in the m a space globally yes, definitely you have got private equity the only problem with private equity is theres a lot of competition for assets and are so many assets they have to go for bigger deals and they have to also specialize on the specialization of European Private Equity firms in europe in sector. And but, yeah, private equity is going to the share of private equity is going to rise in the coming years for sure with big funds being raised on both side of the atlantic. Well leave it there. Thank you so much for joining us this morning, the global editorial analytics director of merger market. If you have any views on the m a activity you have seenso far this year or indeed on the race to find the top jobs at the European Commission, get in touch on twitter or tweet us directly willem marx coming up on the show, top Business Leaders and politicians react to the u. S. china trade timeout at the World Economic forum. Well be live after this break clients voice remember that degree you got in taxation . danny of course you dont because you didnt your job isnt doing hard work. Its making them do hard work. And getting paid for it. vo snap and sort your expenses to save over 4,600 at tax time. Quickbooks. Backing you. Theres brushing and theres oralb power brushing. Oralb just cleans better. Its the one inspired by dentists. With the round brush head. Oralbs gentle rounded brush head removes more plaque along the gumline. For cleaner teeth and healthier gums. Oralb. Brush like a pro. Welcome back to the program. The decision to restart trade talks between the u. S. And china has understandably been a focus for many participants at the World Economic forum in dalian, but the capital managing partner has told cnbc that nothing has really changed after that meeting between president xi and trump at the g20. My colleague has been conducting some of these conversations with Business Leaders there in dalian and joins me now jeff, has there been a consensus view about trade amongst those you talked to . Reporter i would say there has been and largely its a wait and see, its a negative view on whats come out of that g20 meeting, willem. I just conducted a large panel on trade involving a Deputy Director general of the World Trade Organization and i actually asked the room to put their hand up if they thought that there would be an agreement between the two countries before the start of next year. So, within the next six months or so. And i have to say, three hands went up, most people were very pessimistic. And that, i think, bleeds through to another story that we are beginning to hear from people here about how Chinese Companies increasingly are now thinking about how they have to make themselves more resilient and how they have to focus on domest domestic substitution if theyre going to get limited access to the u. S. Technology market lets just have a listen to part of that interview i conducted with msa capital with my colleague where he talks about where he thinks this whole issue of Self Reliance is going to go. Huge amounts of capital and talent are going to be thrown at building Self Reliance and establishing a parallel ecosystem without dependence on u. S. Chips operating systems i dont think anything that happened over the weekend assuaged any of the ears, uncertainty and the damage thats been done. When you look longterm, is it the u. S. Chip companies that will get hurt because of this . I think it is at the end of the day f they develop local companies, those are going to go not only the chips that are going into what is the Worlds Largest market today but also in the emerging markets. American companies have priced themselves if american chips arent going in there, its chinese chips going into the phones being sold locally. Thats interesting. Your interpretation of what happened at the g20 is very little has really changed. Absolutely. Almost no change at all. I think that the vulnerables were exposed it happened even before with zte and was reenforced with huawei. So, while now we have seen people seeing people saying huawei is given a reprieve to have a few years to build up their chip capabilities and own operating system while u. S. Components to bridge and work their way towards self dependence. Thats clearly a more nuanced view than we have actually seen from financial arkets, which have largely been encouraged by the fact that there is, at least, truce and that view, i think, is in part reflected by eugene chan runs the Ubs Securities business here in china. Lets listen to what he had to say about the Market Reaction. Given the fact that the two president s met and already agreed to restart the negotiation perhaps where they left in last may i think that itself is positive. We all said no deal negotiation continuously is better than stop or halt to such discussions. I think youre right the china u. S. Trade tension may have some time to go in other words, will not be resolved over night, certainly not in the next 30 days but the market at this particular junction to say it is better than not to have this kind of agreement. And just to give you a flavor of whats been going on at this dalian event, if trade and what came out of the g20 is topic number one, topic number two is chinas economy slowing as a result of i think some of that data we saw on factory output just as we came into the market day this morning suggesting that, again, weve got a contraction at the manufacturing level here for china topic number three, surprisingly, seems to be Facebooks Libra there is lot of interest here at this very much technologyfocussed event about how that changes the world, but we can talk about that one another day. Ill send it back to you for now. Jeff, i look forward to that conversation over a pint pint at some point now, north korean state run media has held a meeting between kim jongun and donald trump and reported that both leaders agreed to, quote, push forward productive dialogue on the denuclearization of the korean peninsula. U. S. Secretary of state mike pompeo announced that a fresh round of talks would likely take place in july. Trump described the mechanics of his meeting with kim went and met at the line and in meeting at the line, i said would you like me to come across he said i would be so honored. And thats the way it worked out. And i guess from what i understand this is the first that first time Something Like that, mr. Admiral, first time that Something Like that has happened nbc news tracie potts joins us live there washington tracie, whats been the reaction to this meeting from democratic president ial hopefuls and indeed members of congress there in d. C. Reporter well, people are skeptical. There is no question willem that this was an historic meeting a sitting american president has never stepped across the line into north korea, but the question here is whether it was just symbolic. We have seen President Trump once, twice before try to meet with chairman kim and work out something to get rid of their nuclear program. Thats the bottom line here. The u. S. Does not want to see north korea with nuclear weapons. Will a handshake and a step into north korea do it . Or is there some harder work that needs to be done . You asked about reaction from president ial candidates. And democrats and other critics. Some of them are wondering, number one, if the administration did its homework here, as if the president said, this was sort of a twitter invitation and didnt know if chairman kim would be there, are they really doing their homework on this and also what will happen with this third round of talks . President trump and as you said the Vice President the secretary of state have said that they are going to try to go at it again with north korea to get them to scale back their nuclear program. North korea, of course, wants the sanctions removed that are crippling their economy. Is it going to work this time . What we know is that its not going to work, at least initially with President Trump or secretary pompeo. There had been some concern about him now special envoy steve will be leading those talks. Tracie, well leave it there. Thank you so much for joining us there. Tracie potts live in washington. Iran endorsed a plan to extend existing oil supply cuts by 6 to 9 months, this should in theory pave a way for the deal at the formal opec meeting in austrias capital this afternoon. Irans oil minister told reporters he had no problem with the decision but he did question why it was made in osaka and not vienna. I have no difficulty, as i said, i have no difficulty with this to roll over the cart or any new decision for cutting more but the main difficulty and danger which opec facing now is the yun latization opec is another organization to receive the proposal has cooked outside the opec and to approve it it is not mission of opec. Opec is an organization with 14 members and in all issues all the members should discuss, should consult with each other and making a decision. Its the main difficulty that i believe opec faced in this situation. That was the Iranian Oil Minister talking to my colleague dan murphy the uaes Energy Minister echoed those concerns he said every members voice should be heard. Each country opec is an organization that each country can veto a decision. Thats why every count or every vote counts. And i think its important that the largest two producers among opec and opec talk and the current condition of the market, in my view, would require an extension. And i said that earlier when we were gmmc we looked at the numbers i dont think they have changed much since that time, therefore my view, my technical view, is an extension that was the uae Energy Minister talking to my colleague, dan murphy. Lets look at how european markets are trading this morning. Ftse 100 is up 1 . The pound is weaker part of that story and also of course we have seen uk pmi data for manufacturing, more cutting back on day to day and Capital Spending but notseemingly impacting the equity market in london helped by the fact that the car stocks are doing well this morning on the back of the easing of u. S. china trade tensions german is doing well. Paris up more than 3 4 of 1 and italy the ftse mib is trading one third higher one sector that is performing very well this morning, you can see sort of the conductor stocks here in europe very, very much higher sd micro up 5. 7 asm up 5. 6 . U. S. Futures looking to a positive start on that side of the atlantic thats it for todays show im willem marx, Worldwide Exchange coming up in just a few minutes time we call it the mother standard of care. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. My bladder leak underwear. Orried someone might seeerica. So, i switched. To always discreet boutique. Its shapehugging threads smooth out the back. So it fits better than depend. And no one notices. Always discreet. Good morning and welcome to Worldwide Exchange. Here is your five at 5 stocks surge, Global Equities are rallying after President Trump and chinese president xi jinping strike a trade truce. Historic weekend, President Trump steps into north Korea Holding an impromptu summit with kim jongun with the two sides agreeing do restart nuclear talks. Opec ministers are meeting here in vienna and it looks like theyre ready to extend production curves. Well take you there investigation into boeing could be expanding federal prosecutors ar