Us over time significantly closer to what i have called the pre covid inflation path while allowing us to monitor how some Key Developments unfold. Taking off british carriers hitting the top of the stoxx 600 as signs point to a recovery in the industry. Oil prices rising on the news opec and allies will meet tomorrow in a signal there may be consensus onextending outpu cuts a warm welcome. We are waking up a day after the ecb meeting. Lets look at some of the Market Reaction to the meeting. The euro has climbed to a threemonth high while italian bond yield on the back of the decision to ramp up the stimulus plan the euro trading about 11 basis points higher to 11347. The ecb will double its Bond Purchasing Program to 1. 25 trillion euros the ecb president Christine Lagarde ses they still face a contraction of 7 this year. They dont expect inflation to rise leaving it far below the 2 target she said she hoped the boosted bond buying will steer inflation back to pre covid levels collectively determine that the 600 billion should bring us over time significantly close tore what i have called the pre covid inflation path while allowing us to monitor how some key impact our policy. So we will understand a little better how the economy rebounds in the Third Quarter and then later on in the course of the coming months. To have a bit more clarity it is all systems go in equity markets in europe seeing very strong gains across the board hire the ftse mib up 3. 3 spanish stocks rally leaving the overall stock market higher. The dax up about 4. 4 and trading about 1. 4 higher as well this is all interesting because yesterday, in the immediate reaction, we saw the stoxx 600 end the day lower. It was a very choppy session we were trading lower in the lead we rally after the announcement and we saw stocks bounce around throughout and banks in particular going between the day ending flat. Banks rally. We are looking at gains of nearly 7 . Deutsche bank off 3. 5 soft again up 6. 7, a very, very strong positive reaction to the ecb move yesterday alongside the rally we are seeing in the euro investors clearly sending the signal that it is risk on. Discussion suggesting the next market will be the health situation. Continuing to see stabilization. Investors on the Global Economy monitoring things closely. We are looking at the auto sector yesterday, autos were the key underperformer this morning, weve got daimler shares recovering. Part of the weight was the german stimulus package which failed to buy for the conventional car buying. They tried to use the stimulus package to steer the economy into transition. We are seeing green across the board in their basket to ferrari down 6 basis points. Lets look at airlines, the recovery story baring the brunt of the selloff we saw in the wake of the pandemic air france, klm up 12 iag shares up 12 . Well go into the driver behind those as well as the broader demand easy jet up 8. 8 those on the back of very strong moves in the u. S American Airlines surging 40 after the company said they are seeing a big boost in u. S. Flights next month still that stock around 45 since midfebruary important to put these moves into context the Airlines Sector has plunged. Lets look at iag in a little more detail. Al alex cruise saying the company, quote, does not have an absolute right to exist he warned that the Parent Company iag is burning 178 Million Pounds of cash researches a week. They plan to cut its work force despite the uk government furl owe scheme reacting well this morning up 12 . Shares in lufthansa up this morning despite the airline having been relevant gated from germanys blue chip dax index for the First Time Ever compounding the particularly turbulent first half of the year the exit comes after the coronavirus outbreak prompted a near total stop to global air travel, prompting shares to drop and forcing berlin to hand a 9 billion bailout. Looking at the spot in the dax will be taken over making it the second group to enter the index. Some housing could pile the pressure on rental and property prices in germany. Lets get out to annette youve been all over this lufthansa story. No surprise the stock has fallen out of the dax what do you think of the significant of the change . We have another Real Estate Company entering the blue chip sector just as the Airline Falls out. Exactly it was widely expected that lufthansa would fall out of the dax because of the sheer hiez and market value lufthansas market value has more or less deteriorated completely because of the coronavirus and stands roughly shy of 5 billion euro. That is far too less to stay in the dax. We normally get a reshot in september. Because of the construction, it reacted so swiftly and replaced lufthansa by june 22 Deutsche Wohnen is 22 years old but since its creation has grown into one of the biggest real estate companies, residential companies in germany last year in discussion about the rental capital was a discussion for some time because of the rental increases especially in berlin has taken a toll on the company last year. They were one of the candidates to move into the dax now second time lucky they made it into the dax with a market value of roughly 14 billion euro in berlin, you have that cap now in place since february, which means they cant increase their rents for another five years the scrutiny now is on Deutsche Wohnen more. Thats what Housing Associations are now saying most likely International Investors want to have higher dividends to push harder for rent increases. If you are a dax member, you are more investable for loads of investors. At the same time, talking about lufthansa. Thats not possible if you look at the fallen angels it is not too bad. Rallying by others as well lufthansa has fallen so much, there is room for recovery now as the airline is saying for example, they are going to increase their capacity to september by 90 in the short to medium haul and 70 in the long haul they seem to be confident there is going to be a pick up in travel again after the summer break. Back to you. A really interesting point about the progress theyve had after falling out of the dax easy jet being one of the names that fell out. Just as these come through, we are seeing a very strong bid for the airlines annette, thank you so much. German Industrial Orders slumped more than expected in april. Thats the biggest contraction on record as the pandemic and lockdown weighed heavily on goods from europes largest economy. Expecting the German Economy to contract saying it wont see a full recovery until 2022 at the earliest speaking speaking to cnbc, saying he agreed with the forecast adding that europe is facing a recession the likes of which he has never seen caller these are numbers we have never seen before in germany and in europe. We have seen really extreme numbers but there will be recovery and we hope to be back in spring 2022 still ahead on street signs, crude prices rise as they set a debt for a meeting on more output cuts more when we come back to keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Welcome back to street signs. Oil prices are trading higher on the news that opec and allies are set to meet tomorrow to discuss extending output cuts. Saudi arabia and russia have agreed to the deal by one month. Compliance remains a sticking point. Taking a look at the oil majors, we are seeing a strong rebound taking hold across markets oil and gas a big part of that bp shares a big part of that shell up, the entire Energy Complex there is trading very firmly lets get out to steve who is going to join us now. Great to see you again what do you make of this news . We finally have a date now on this opec plus meeting the agreement looks like one month of extension getting agreements of two months up to the year compliance is the key concern that will prevent the deal from being extended much further. It is not all or nothing. There is already a deal to have 7. 7 Million Barrels off the table the rest of the year. That is apparently in the bag. This is the difference between 9. 7 and 7. 7. It is not 9. 7 or not it is 9. 7 or 7. 7 the other point is, looking at what Alexander Novak has been saying everyone who comes on cnbc has a position people say we are going to the moon, it means they are long in the market Alexander Novak whose prime resource is oil says he thinks there could be more demand than supply as early as next month. Again, he speaks from his own con tight one si if hes right, baring in mind more people than on this planet. That would be an extraordinary turn around. From the start of the year, we were producing 100 billion barrels a day being consumed way in ex tess of the 75 to 80 Million Barrels. If hes saying as quickly as in the space of a couple of months, weve reached some form of balance, to me, that is way more interesting and exciting for those looking at the market, the swift turn around for opec, opec plus, shell predeucers a lot of ceos from the likes itself from the likes of bp and others respectively talking about how they are taking production off the table. That makes it more delicious especially for those hedge funds that have gone way too far in this delicate stage not only from compliance from this last time around and perhaps more justification, we are worried about iraq they are the second biggest player the compliance issue is getting headlines. If the mark is rebalancing as early as this month, that doesnt take away the large inventories. The vast, vast inventories in terms of the crushing. Thats what the grouping really looks at the huge inventories they dont like it i think it makes the whole lower price ee kwaks more delicious. Back to you. Thats the first time ive heard the whole thing called delicious. Thank you for your report. Nissan ceo has told cnbc he is aiming for Sustainable Growth despite uncertainty around the pandemic i sat down with him for a wideranging conversation and asked him to give an outlook about the company and the alliance with renault. We want to become a sustainable profit we must address an area of underperformance and pull back from the previous over extension that has been done in nissan this means, weneed to optimize production also, the operation efficiency it also means that we are going to priorities ourself which market we can be able to grow. This is the building around the product and technology where nissan can be really successful. Taking our market focus, we are prioritizing further Sustainable Growth meaning on japan, china and u. S. Part of your strategy is around the new strategy of the alliance, focusing now on this leader, follower model which means nissan will defect from europe and renault from asia how do you assure the alliance will develop and grow under this new model. The alliance could be a competitive tool for each company, which means that the contribution should make each company in terms of the revenue and profit we look back in what is still the working on the leading force. We came to the conclusion together the chairman of the alliance and my partner in renault and mitsubishi and myself especially on the engineering confidence each company has and the model each company can lead for nissan, if i take one example like in europe, we want to maintain or sustain ourselves. How we maintain is what we have to decide. We would make our capacity first and will be satisfied with our customer then in the area where i can get benefit from the support from the alliance especially from renault in europe. So this is how we are working. What if it doesnt go exactly how you hope it does some call this the last roll of the dice with your partners. What if this doesnt go smoothly, where does that leave nissan the alliance should be a competitiveness asset for each company. We can use those to make each company grow is a key point. We have a very close communication. We put everything on the table very transparently let me remind that alliance mindset is that we should have transparency on everything together and how we can make sure respect and trust each other. If we cannot trust those, how can we bring each business for the benefit of each company. I am confident on the way we further tore grow. Particularly with a lot of the discussion we may for see, in the end, we could overcome and that could be the benefit for each company i really like to be buying the alliance is not like the stag nant play for more, head to our website. Dont miss the rest of my conversation can you see the full interview next wednesday at 23 00 cet. Bringing in angus once again. I spoke yesterday to the nissan ceo about covid is impacting the auto market. He raised the point that in some ways, it is going to accelerate some of the disruptive trends already under way in the auto space. So the shift to electric vehicles for example and more automation for cars. What do you think in terms of the broad recovery what are we looking at in perhaps the better than expected scenario given the changes to Consumer Behavior and preferences as a result of covid19 good morning. Very, very interest questions there. Very valid this has been evolving very rapidly. First, we are seeing a lot of stimulus coming through the governments secondly, we are seeing a shift in Consumer Preferences clearly, this is reaction to take public transport and could lead to higher usage in cars and the data coming through. What is interesting is the speed of recovery in the markets as expected youve seen a very, very rapid rebound in loans and car purchasing you mention the government stimulus we have the german stimulus package coming through 48 hours ago. Announcing 48 billion euros. Is this an opportunity for europe to become a leader in the green transition in autos. How significant are these green packages it is interesting it is far more nuanced than headlines would suggest. If you look at the german package, it is cheaper if you go to buy the ev i think you can see the forces played there that will affect the german come bust yan engines you have the fiscally conservative on the other. 20 of gdp that is pushing for stimulus to come through there there is a long way to go. We do need investment coming through. That is always a tough competitor angus, lets be honest about it 2017, 2018, when you and i would look and see 68 Million Units sold in the gory years what hope is it for any of our viewers to make any money in the current stocks Going Forward incentives will be left. The cost is through the roof if they cant make money in 2017, 2018, what hope is there now . Steve, i was thinking of you the other day and your point on the listing here the Government Support is keeping this dynamic alive we have an incredibly deep recession, youve got all of these collapsing and pressures pointing out in terms of loans and stimulus, doesnt mean the bad business would fight to stay alive. If the stronger players could be allowed to survive we would see rationalization in the market it doesnt look like it will happen in the short term but we will continue to see prices and that will continue to squeeze the weak players we do see strong players generating cash flow the valuations on these stocks are very, very cheap as you are seeing on this rally at the moment bringing up the point about weak players possibly going through this this is a big theme across the markets. Well have to leave the conversation thank you for joining us in this conversation about citi. Coming up on the show, the race for the vaccine intensifies. Well speak to the Chatham House chair next the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines the rally is on. France and spain lead european stocks higher on the back of more ecb stimulus helping investors slug off the forecast of the severe german contraction in the spike of unemployment the central bank expands and ex tens Emergency Purchase Program by more than expected. The 600 billion should bring us over time significantly closer to what i have called the pre covid inflation path while allowing us to monitor how some Key Developments unfold in the coming months. Oil rises on the news that opec and allies will meet and may be extending on the cuts book bashing musk calls out on bezos after the retail giant rejects a book requesting the risks of the coronavirus. Lets get a check on the european markets in the final day of trade we saw a weak trading day ending. 07 lower upside in the french and spanish market discussing yesterdays ecb delivery more to discuss when it comes to that pep seeing a strong more for the euro 10 basis points higher versus the dollar at 1. 1347 on the back of that ecb meeting. On wall street, we saw strostro stocks break a fourday win streak the nasdaq up about 60 points if these levels hold. S p 500 looking at a bounce back today after retreating about 0. 3 yesterday in the health care space, astrazeneca has doubled the Production Capacity to 2 billion doses. 1 billion units will be sent to lower and middle income countries. The drug maker and partner with oxford has struggle a deal with two Health Organizations backed by the gates foundation. If successful, the vaccine could be ready for delivery worldwide as early as september. Face coverings will be mandatory on Public Transit from june 15. The new rule comes as the uk continues to ease lockdown measures and reopen the economy. Getting out to steve with more on whats going on in the uk perhaps one of the more significant things is that the Job Retention scheme has 4. 8 Million People the architects finest moment keeping plenty of people in work but what happens next . Uk economy is on life support. The question is can they get itself up and running again. Saying we are not necessarily open from International Business making it difficult to get in and out of the country without some form of quarantine. This weeks devastating number as of june, there where 339 deaths and in june, 330 deaths real concern about where we are compared with the rest of the economy. European union easing from lockdown questions about the infrastructure and the balancing. Already conservative they won a hell of a lot of seats elsewhere on the promise that they would reinvigorate the north and the economy there. Are you going to be part of that plan can i point out to you, steve, that by account is even loftier than the law by relevance of that, i am and always have been independent of any political party. I talk to you as a completely politically neutral person i get that. You were an ex treasury minister the fact of the matter is, jim, are you going to be part of the government plan to reinvigorate in that part of the world . It is a major part of what i do in my modern life and it remains really important posture for me whether this government is going to follow through on this commitment leveling up and focusing on the power house as the phrase is, time will tell. I mention the furlough scheme keeping a lot of companies on life support weve seen important jobs across the United Kingdom weve been hearing about mcclarn and a whole host of industries what are we going to replace those jobs with, jim. Listening to what you said earlier, i think the treasury response to the pandemic it is one of the Better Things our jobs challenge in the uk is unique the furlough scheme captures about half what has concerned me more is that we should rush quickly to the scheme and more deafly thought about using equity as we go forward the whole coalition where the government can provide Patient Capital to back growth businesses coming out of this mess is a perfect opportunity for the government including to achieve some longterm objectives which is net zero emissions and so on getting out of it when you are tortured by this on the union. The distractions from that from big businesses who want to invest in the north. Well put the money there and take it out and put it in one of the most efficient plants on the planet, saying this is atrisk if we dont get a brexit deal as well it is an unnecessary distraction, isnt it . I think at the core of it from what you are saying in my view, needs to be strategically pick priorities a bit better by definition is a lot of socalled Fire Fighting going on with this pandemic as you touched on earlier the uk seems to be strugglingstill. I think frankly, they seem to be struggling to do that. In our role and in terms of how it responds in the investment issue the environment is not at all easy to think about. Im curious your views around the vachl vaccine. When it comes to distribution and doses, where does your ownness lie so that those merging economies in particular dont get left behind. This is one of the areas in the remarkable confidence. Having modest relationship because of the work i did on antibiotics. The speed and scale of cooperation going on in the pharmaceutical world on this is extraordinary and is an example to everybody the rest of the private sector and the governments around the world. Hearing this morning on bbc news, it adds to my belief that it is not possible that a usable vaccine could be available to si significant part of the world by september. Obviously theyve got to get through important testing. It soupds like it is quite possible ive had some Modest Development in some of these events to the International Coordination there is very significant discussion going on about how you do distribute around the world that is one of the Better Things going on in this crisis. Due to the work youve done, you know how costly and complex that drug and Vaccine Development is when you look to the future to prepare for another event like this. How do you incentivize the costly endeavor. Where does that ownness lie . What is your take . Let me say three things in the spirit of never letting a crisis go to waste what this has done is completely destroyed that health and finance were separate issues trying to persuade policymakers. My goodness, we now have that. We would get more investment precededness than we would have received six months ago. Secondly, there are already further focal points accelerating first time before the month is over, im hopeful on the bill passing congress that actually if it passed, introduced the market through the market recommended to produce if that happened, it would be one of the more positive things that had taken place in the five years before i had gotten involved in that review. Thirdly, there was a greater awareness itself that they have society obligations to play more than they had done in the past by the way, i might suspect would be the case more globally and everywhere thank you for sharing your thoughts with us well speak to you after this break. Coming up on the show, remembering george floyd honoring the life of the man whose death has inspired calls for a widespread change in america. A look at one of the most powerful moments in the service after the break. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back to street signs. Weve got some pretty interesting news out of British Airlines owner iag we said how the ceo is calling on unions to engage with the carrier over job cuts. Now we have the owner saying no decision has taken over redundancies yet he says they want to secure all exiting slots at london heathrow and some pretty big lines around the 14day quarantine plan saying the government has torpedoed plans to start flying in july. They are considering legal action against the quarantine plans. This goes with the similar criticism from other airline ceos including ryanair Ceo Michael Oleary and now British Airways ceo saying they are considering legal action against these plans. This is a story to watch in terms of the job cuts. Messages no decision taken over redundancies yet lets push on and talk about u. S. Unemployment picture rates expected to climb to 20 in may. The highest level going back to the 1940s. According to economists, the nonpharm payrolls have declined after the pandemic wiped out 25 million jobs in april. The number of people filing declined for the ninth week in a row. The data remains well above the precoronavirus levels. Jobs report will be out at 14 30 cet today. Lets get back to chair of Chatham House, former chair of Economy Ministry do you think it makes sense for investors to be shrugging off this dire unemployment picture and looking to the future. What is your take to how u. S. Unemployment recovery will shape up i do. I was joking that perhaps i should have been a stock market trader the last few weeks. As early as even before march, the markets had started to change, the rates changed and the vaccine recovery curve thats what weve done throughout perhaps the spread in march is what they would get spread throughout the states. Since then, we have traded generally better as infection rates have come down and we start to unlock the world. Back in january, it is mass consensus belief that well have the v shaped stock market and economic recovery. Virtual no one would believe that is possible even though it has been so severe it is possible if you look at the High Frequency indicators which todays unemployment numbers wont reflect. It is pretty clear things are way off the worst in the United States and in the number of places around the continent. Im not sure that Unemployment Rate today is going to tell us anything more than we knew weeks ago from the trend in u. S. Weekly job claims. What is more important is whether this Vaccine Development. If that turns out to be not but will be the massive source of employment and the pick up of infections you have been a champion back in your old job. Does the president or does protectionism more generally ri risk squaunderring of globalization if we do look like we are on the cusp of another trade war . I still dont really get where the u. S. Is coming from other than tactical politics at the end of the day, unless the u. S. Consistently raises Savings Rates which it is doing now, never done consistently unless it does that, it will have the trade deficit with someone. The idea that it can do all of these things with china and bringing it back to the states is at much for the birds, the same stuff as you see 25 years ago. It is not clear to me that it is a particular wise thing for the u. S. To do other than permanently damage the u. S. Consumer if its own consumer comes back, are you telling me, the u. S. Is going to stop its nationals from benefitting from the biggest story in the world it doesnt make economic sense although seemingly makes sense to donald trump. Briefly, do you think china should be doing more when it comes to their stimulus measures how timid they have been so pharrell tiff to everybody else i cant figure out what is clear is that they have to get their consumer stronger it doesnt care much about Political Leadership thank you so much jim oneill chair of Chatham House. Our u. S. Colleagues will be speaking to dr. Fauci at 18 20 cet. We are looking at the continued protests in the United States protests against racial inequality and Police Violence continued for the 10th night in the u. S. After the memorial for george floyd was held on thursday in minneapolis. We saw trump threatening to release the army thats it for todays show thank you for joining me have a wonderful weekend Worldwide Exchange is coming up next. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. We have to look more seriously on composesition it is 5 00 and 8 million more jobs lost. Well find out this morning the may jobs number. The markets look forward futures are soaring. A great week for stocks as big tech keeps making new records. Oil prices on the line and we have breaking news on the latest opec meeting plus work at home trade not working well for one why shares o