Shares of bilfinger in the red after delivering its fifth profit warning while tapping a new ceo. Facebook fails to find a friend and the stronger dollar as it posts the slowest Revenue Growth in two years and warns from a hit from the green back in the Second Quarter. Lets get to the pmi data for april right away. Came in at 53. 5 versus 54 the month of march and versus 54. 4 in the forecast so this is slightly below expectations and this follows the french and the german numbers which were also a little bit disappointing. Growth seems to be losing some steam in the euro zone. If we take a look at the manufacturing pmi for the month of april, the flash number 51. 9 versus 52. 2 in the month of march. Now that is also below forecast. Were looking for a print of 52. 6. Last but not least i do want to bring you the services pmi. The flash for the month of april, 53. 7. Once again, that is below forecast. Lets get some instant reaction to these numbers with the chief european economist. Are these numbers that we should be worried about or might it just be a temporary slow down of the euro zone . Its probably temporary. There may have been an impact for less optimistic news from greece. The markets moving a bit sideways. Maybe that effected expectations but overall the number is a bit weaker from the previous month but not dramatically so. Its a bit higher given what you would expect in france and germany and that probably suggests spain and italy might have been doing better. But still if not now when should the euro zone be growing because now we have the perfect conditions in place. We have the weaker euro weaker oil prices, record low Interest Rates. Absolutely. I continue to look for a slow recovery. We still seeing very cautious firms in europe. Particularly in germany. They have had quite a pick up in private consumption and exports are doing okay and we dont see a pick up in investment. So its really the copper sector thats very cautious but there are reasons to think in the second half of the year obviously if we dont have a major accident along the Way Investment spending will pick up. I know youre an economist and not an Equity Analyst but i still wonder if were seeing a little weakening in the european recovery might be good for sentiment overall given that it might be less likely for the ecb to pull back their stimulus prematurely. As long as they dont point to a major weakening which is not the case at the moment i would agree with that. Clearly the biggest drivers of the rally in equities the ecb policy the euro which boosted the profitability of the companies. Whether its 53 or 54 doesnt make a difference in my opinion. In any case i have been looking for a slow recovery. The numbers are not surprising. Youll stick around and well talk more about greece but first up lets talk china. Chinas factory activity was a one year low in april. Underscoring persistent weakness in the worlds second largest economy. Lets see how the markets in asia responded to that and were seeing a muted reaction to no reaction really sri. Well it was a seven year high actually for the Mainland China stock markets. What they are doing by interpreting these numbers is pricing in yet more stimulus. Yet more monetary easing to really keep growth consolidated around 7 carolyn. Hsbc produced this set of numbers and he says this this is striking i thought, the numbers we have been seeing over the past quarter and these numbers in particular are consistent with deflationary pressures in the chinese economy and they warrant more forceful monetary easing and what they have pencilled in is a basis point cut to the policy rates in the coming weeks. What does it mean for the stock market . Its positive. The liquidity band wagon continues to roll on and thats what the markets are pricing in. Just a couple of days ago we did see the more aggressive than expected cut in the rrr by hundred basis points and the terms of liquidity in the system were talking about 1. 2 trillion. A lot of that is drip feeding its way into the stock market. Interesting to see that rotation and money is favoring mainland equities over the hang seng where the medium term the momentum is going to favor 8 shares given the valuation gap. It outperforms by 1. 4 . Were hearing the china stock buying is spilling over into the market. They were big force in the market this month as they have been in the past two months as well. So thats an interesting footnote there. Also we did see stronger than expected economic numbers coming out from korea although i think the bank of korea is still going to be very much in play in terms of further stimulus measures to really consolidate the economy over there so thats the positive factors that the korean market is responding to carolyn today. Back to you now. Thank you so much for that. Lets show you what european markets are doing. The stoxx europe 600 is close to session lows on the back of the slightly disappointing flash pmi numbers for the month of april. Also we have a whole thing period of numbers out this morning. Ericsson down 8 at the start of the trading sector. Lets show you the markets one by one. Were seeing the dax is trading like this. Off by more than 1 actually. They came out with another profit warning and well get to that story in a second. The ftse 100 off by 12 points. The cac 40 down by shy of 1 . In the bond markets we saw yields really spiking in yesterdays trading session but today we are seeing that bond prices are reversing. Were seeing them rising today given that sentiment has taken a hit a little bit and were seeing the ten year yield off its highs at 1. 8 yesterday down at 1. 96 yesterday. We saw the biggest one day jump in about a month yesterday on the back of the better than expected housing data. U. K. Yields 1. 7 and ten year german yields off recent record lows at 14 basis points and the currency markets, sterling that was the big story yesterday but today it is losing against the greenback. Back below the 150 level. That was on the back of minutes that were slightly more hawkish than expected. The aussie dollar not reacting to the chinese pmi and were seeing a little bit of Dollar Strength against the euro. 10701 here. Its playing a crucial role in First Quarter earnings season on both sides of the atlantic. Speaking to cnbc in houston, he said the company was benefitting from a strong u. S. Dollar. Take a listen. Its marginally upset but we have some last year we lost 5 billion because of price but we had some hundred million compensation because of the exchange rate. The drop in price is so strong its not possible with the same rate. We have to compensate it with a different way. Increased efficiency. The time to market and use more technology. Meantime the ecb increased the amount of money greek banks can borrow under its emergency lending program. The lending limit has risen to 75. 7 billion euros up by 1. 5 billion euros from last week banking sources told cnbc. This comes as greece tries to haerm hammer out a debt deal. Still with us is the chief european economist. Expectations for the meeting are very low. No one thinks the two sides can find a debt deal. Time is running out. Do you think default by greece is now inevitable . No. Its not inevitable but the probability has risen because of the lack of time to come to a technical agreement. My view is the point where greece risks running out of money is june if not the july the latest. So there has to be a deal by the end of may. So then european parliaments will have to ratify the deal for example, in germany. So there is a need for some time before the money can be dispersed. Right now what were seeing is the Central Government in athens is trying to round up the cash from municipalities and its seeing a lot of backlash and if you look at the popularity numbers they have seen quite a big decline from last month. I believe theyre around 45 now. Do you think that with increasing pressure from its own people greece will cave in to the euro zone demands . Its a greater incentive to come to a compromise. When you start scooping up all the remaining funds around the local governments, especially the ones that are politically not aligned with this new government would be optimized and, you know Public Opinion can turn very quickly and i think the government is aware of it. Theres been a lot of debate the last couple of weeks about whether a greek default can happen without a grexit or whether it has to go hand in hand. Some analysts are saying a greek default is dangerous. They would have to be better organized which theyre not. Many talk about ious in which the government would keep running but that requires a system of payment. It requires alternatively the government being able to print checks or payment and the impression is that the government is disorganized and so is the civil service. I dont see them doing that any time soon. At least not in an organized fashion. Certainly not. It will go down to the wire. It will go down to the wire. A compromise is what is desired alt the political level. The difficulty is to make it happen. Thank you for joing us thising us this morning. Facebook reporting the slowest Revenue Growth. The strong dollar will likely cut stronger Second Quarter revenue. Active monthly users rose 14 to 1. 44 billion. Facebook shares did fall some 2 in after hours trading. Facebook also announced its ruling out a new app called hello for android phones. It brings information about users friends into their phone and lets them make free calls over wifi. It comes as they seek to dominate the smartphone operating system. Lets cross to seema who is at the next web conference where thousands of start ups are learning how to be the next facebook. Why amsterdam . Listen this is a lot of excitement behind me. A lot of start ups presenting their Business Models and ideas to range of investors but i want to pick up on facebook. A big thing was the 80 rise in rnd. Thats a type of investment needed in order to stay competitive and continue to innovate and stay on the top. Interestingly enough they have been allocating a lot of capital into tech start ups. About 5 billion in 2014. Thats double of what we saw end of the year prior. The reason they want to find the next facebook. Perhaps the facebook of europe. We have been seeing a steady rise in Foreign Direct Investment into the netherlands and theres a lot of Fast Growing Companies that call the dutch capital their european headquaters like netflix, tesla, uber among others. Some say its due to tax incentives but others folks hearsay its more about that. Why are you here . Music, talent. Space cakes. Embracing the liberal and laid back culture of amsterdam. One of the reasons theyre calling it their destination for their tech company. Throughout the show well be speaking to a variety of start ups including two disrupters. Youll be speaking to the ceo of verify. Thats coming up after this break trying to revolutionize the drone industry. Also the leading player in the car pool industry. Worldwide exchange is back in two minutes. This caused by weakness in its u. S. Oil and gas business and lower demand for power plants. Meanwhile the german Building Services firm is shaking up management naming the chief executive as its new ceo. Lets see if they can manage the turn around there reporting an 18 drive in First Quarter operating profit. They benefitted from hedging activities. Ill be speaking to the companys ceo. They expected a slow down to drag on but sees continued growth in china. Well be speaking to the ceo in a first on interview coming up on the show at 11 15 cet. Theyre outperforming today. Reaping benefits from a weaker euro but the london listed group managed to post an 8. 3 rise boosted by currency moves and growth outside of europe. We spoke to the wpp ceo earlier. February and march were not as good as january but overall it was a Strong Quarter and as you see the margins in the First Quarter were strong. Very strong too. So i think we had a very good start to the year. We remain cautious about the rest of the year. We havent upped our guidance for the year. We have said revenue, we looked at our quarter one revised forecast. We havent finalized them. Well be going through them in the next couple of weeks but top lineup by over 3 in terms of net sales and well over that in term of revenues and were looking forward to margins more than meeting our start of the year. Geographically asia. Latin america not so much. Europe, u. K. U. S. Africa and the middle east all contributing functionally Advertising Media and digital contributing heavily too. Shares off by 2 today. Amazon is among a host of shipping and tech firms experimenting with Drone Technology but some critics worry that regulations are not keeping pace with innovation. A small drone was founded on shinzo abes roof of his office this week. Police are investigating the possibility it had crashed during a flight. Theres no restrictions for flying unmanned equipment at or below 820 feet above ground. Our next guest is setting out to improve regulations of drones aiming to bring order to the chaos. Im joined by the ceo and standing by in amsterdam is seema mody. Great to have you on the show today. What exactly does verifly want to do . We want to solve problems like you outlined just like with the unexpected visit of the japanese prime minister. Theyre like the internet in the early 1990s. We put trust into drones through Identification Technology that identify the pilot and the drone and also very specialized activity Management Technologies that can tell drones where they should and should not go and can and cannot go. Youre saying the operation of drones should be regulated by an institution but it should be regulated by a software but for that to actually work you need a lot of data. This is a big data experiment, isnt it . Theres a lot of data. We have a team in ireland that are looking at that problem. Everything from 0 to 500 feet in the entire world. Were meeting with regulators. We are meeting with regulators in the u. K. In a few hours. We met with metropolitan police last night. Everybody is excited about somebody trying to put this problem together so they can prevent an incident and thats what were all about. Seema, come in here. Yeah, jay, you know drones sound exciting but from investors that i speak to here there seems to be still some questions as to the commercial use of drones going forward. Sure it can speed up the delivery process for a lot of the big retail and ecommerce firms but help us understand the commercial use and opportunity there five or ten years from now. Asking that question is a lot like asking whats the internet going to really do for us in 1992. You would say selling books but i like bookstores. What else can it really do for me and the answer is its a platform. You dont know until you see its full potential. They can transport small items over large distances autonomously. Theyre very easy to fly and they can image like nothing else. They can provide imagery that would cost throughs in a helicopter through a dgi phantom thats several hundred dollars. Thats a difference. Were only beginning to see the dawn of what this stuff can do. I just wonder given the regulatory head winds with the faa in the u. S. Is that pushing you to test out your technology overseas and other countries. Not to test so much because we are not, you know as operational but certainly in terms of investment its easier outside of the United States than inside. We recently announced a round exceeding 2 million for a seed round that had names involved in the creation of the Largest Airline in europe as well as probably the uber investors of europe who see the potential of this technology. The fact is that the regulators in europe have been much more business friendly when it comes to allowing the deployment and experimentation of this technology. That probably explains the difference. All right. Lets talk about the other big trends. You say drones could be as big as the revolution brought about by the internet. What about cars what about smart cities . What are the other big trends in tech youre seeing . So we see Autonomous Vehicles as an extension of drones actually. You know, drones are an autonomous flying object and cars are, connected cars or selfdriving cars are really autonomous we also think about what it can do to prevent you getting into a selfdriving car. Very briefly youre also the cofounder of halo but recently pulling out of the north american market. It doesnt promise a valuation as high as uber. Do you think halo lost out to the likes of uber. No. I dont think many company of the world public or private have valuations, you know . I would be very happy and im sure any investor would be to have fractions of a private valuation like that. Whether that comes to be true in the Public Markets, one only knows but, you know im extremely happy with a business that has, you know almost 200 employees and i used to get here with a cabby fabulously happy to have another trip. Thank you for your time. Best of luck. Founder and ceo of verifly. Seema thank you for that. Seema has a lot more updates for us from amsterdam. Still to come on the show wilfred joins us with the latest on the u. K. Elections. Exactly two weeks to go to polling day. Where are you . Thats right carolyn and after the break we will be asking the question what does this election mean for u. K. Financial markets and how best to trade it with an expert panel here in london. Stay with us on worldwide exchange. R chinas manufacturing pmi falls to a 1 year low in april. Eric is on slides after results fall shy of forecasts and weakness in north america. We speak to the equipment maker ceo first on cnbc in the next hour. Shares also deeply in the red as the german Engineering Firm delivers its 5th profit warning in less than a year while finally tapping a new ceo. Facebook fails to find a friend in the stronger dollar. The social network posts its slowest Revenue Growth in two years and warns of a hit from the green back in the Second Quarter. Were