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tv   Street Signs  CNBC  May 27, 2019 4:00am-5:00am EDT

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welcome to europe votes. this special edition of "squawk box. we are live from continental europe measuring and assessing the results of these e.u. parliamentary elections. and as we look at the headlines this morning, the early call is that voters have delivered a fragmented result in these parliamentary polls. the liberals and the greens making unexpectedly large gains while the center block loses some ground. >> reporter: and the euro holds
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firm as europe staves off a popular surge despite big wins for the brexit part in the u.k. and right wing league. ain't-e.u. groups are transforming europe. >> reporter: only marin la pen, italy, france, the u.k., it's a sign of europe corporate move moving the market. the two companies announce talks that could lead to a 50-50 merger and create the world's third largest car maker. no big trade deal announcement president trump hales talks with japan. talk continues after he vows to straighten out the imbalance with tokyo. >> the united states and japan are working to improve our
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economic relationship based on the principles of fairness and reciprocit reciprocity. our goal is to reduce our trade deficit with japan, remove trade barriers and barriers of all kinds. >> reporter: so very good morning, everybody just to locate where we are covering the e.u. parliamentary elections from this morning, i'm on the south bank of the river thames the houses of parliament over my shoulder here in the u.k we'll talk a little bit about the u.k. result and then we'll take you out to brussels, sylvia, willem and annetta will be with us in germany. let's just unpick what exactly happened during the course of
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the past four days we have a good, strong early look at the results although the counting will continue no doubt. the projections give us a clear sense of what's going on did will be effectively a fragmented parliament going forward as the european people's party and the socialists and democrats losing more than 40% of their share, stripping them of the majority. liberals and greens gained significant ground in whags already being described as a, quote, green wave. doubling the seats 20% the populus party didn't do as much spain, germany, the netherlands saw that the exceptions were of course here in the u.k., france and italy. >> reporter: the nationalists
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came out on top. now if we break down that result in france, marin lapan's naturalist party and lega was victorious in italy with around 30% of the vote while its coalition partner the five-star movement lost significant ground on the face of the numbers, that sounds like a significant shift away from the centrist parties raises the prospect of a more difficult parliament over the next five years and a certain amount in the political extremes but i think there will be many in the center and those who are very much at the heart of the e.u. project who will be saturday with the results given
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the fact that 2/3 of the parliament will still be represented by meps who who can tell us more about the reaction about the heart of this this morning. sylvia >> yes these european election results are a victory for the establishment in the sense that more people voted and, indeed, that the european parliament is still a pro euro peechb chamber. however, as you mentioned, they are more fragmented so this means it's going to be even more complicated. so in the coming hours, in the coming days we need to look at the negotiations wean the pro european union and the greens, the liberals, the social cleve
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we can't european party. we know they're going to be one of the main areas for the next policy makers here in brussels when i look at the performance of the parties, they still got about 25% of the seats in the european parliament. so they fell short of some opinion polls. nonethele nonetheless, when it comes to the parties, we need to keep an eye on whether or not they will form one big group in the european parliament and whether or not they will actually join forces and push their ideas forward at a european loefl. this is also a mirror of what's going on in the different
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european countries in the aftermath they had to call for a snap elections. it's likely they will have an earlier vote in the end of june. that will happen potentially in italy with the atlega. >> let's get to bill emerson who will tell us the results >> willem. >> there's a couple of dozen districts out of 60,000 where we haven't gotten a final kout. you canlook at the numbers for lega they've come in at 34% significant ler here again the five star, they're losing half of their voters in the
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course of the last 12 months you can see the constant contact with the voting bring sa they seemingly now have a much stronger hand on a notion nal level. it's really interesting here if you look at the national picture for the votes, you can see gleeg hleague a has taken m. they've won here according to you than nicole said he thinks the coil
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ligs will ferret itself out. >> translator: the other result that must be highlighted is the sovereignist attack against the european institutions has failed quite the opposite of what i heard during the evening but in the european parliament there is an ample, solid, strong majority that has the will's majority as the great american dream >> reporter: he says sovereignist forces is what's there. in terms of lega as a force inside of the european parliament, jeff, he will be sending two dozen meps to brussels
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with his allies not having performed as well as they had hoped, it will be less than 10% of the total european parliament and therefore it may not be so much an influence in brussels trying to change the e.u the endorsement he's gotten, the willingness to confront the european commission, its spending and taxation policies will once again be on the scrutiny. >> i think that's a terrific point, willem. i'd like to pick up on that when i talk about the u.k. because effectively we're talking about mandates for change and did this parliamentary election result give those opposition voices a mandate to effect on that and
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whilst i think that may be the case in italy, neither nigel or his brexit party have come out on top in terms of the he you parliamenta parliamenta parliamenta parliamentary division labor in third, the greens in fourth and theconservatives wa down in fifth at this point. but, of course, we have a conservative government here in power at the national level. so the question is can nigel 49er rar turn this into a mandate or pressure of losing it through the national parliament
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over my shoulder let's listen to how nigel seven rat ra -- separated his win. we have a deadline in five months time. what we're saying is we've got a mandate. we demand to be part of that negotiating team >> the problem is we don't have a leader that will renane situ
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there's been a little bit of a heated language. boris johnson politically you might argue not a million miles away from nigel ferrage on the brexit issue and yet they have traded negative words over the last 48 hours here in the u.k. finding it difficult to agree on a pathway forward. that doesn't even bring into the situation those who want a second referendum, those who don't want a brexit at all and those who may want a brexit with wto trade terms. very complicated we won't really have a clear sense of where we go next here in the u.k. until that conservative leadership election is put to bed. but for the time being, nigel
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ferrage will take the opportunity to celebrate what he believes as his party's sec ses. let me speak to those who are not vying for the top position and tell us how much theresa may has been through in the past few days any word you are getting on who is the most likely to succeed theresa may? >> reporter: the bookie's favorite is born johnson, the foreign secretary. that hasn't really changed he's had that position way ahead of the rest of the crowd for some time. and i think the news in the last 24 hours i think of another three candidates emerging, of course michael gohsn stepping out of the shadows to compete with boris johnson is muddying
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the waters here a little bit more, karen. before this whole thing is said and gone as more show their hand here for those poor traders trying to make head or tail of this in terms of direction of stops or direction for the pound, it's almost status quo really it doesn't really give us anymore light as to which direction ultimately this brexit story is going to go but if boris johnson does manage to become the new prime minister, i think at least we'll get a sense that there may be a tougher line with brussels although they clearly refuse to renegotiate the agreement as it stands so i'm not quite sure what good that would achieve at this point. but to come back and answer your first question, karen, boris johnson, and we'll see what happens next.
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>> on that note, we see it's caged around the 127 level as a result let's come back to the european parliament and what it may look like here. we have the senior european affairs. i want to ask you around some of the things you have a talked about. weigh may see them particular tactic dli bound and some of the bigger issues around brexit. what do you make of what we've seen overnight >> reporter: i think on the one hand we've had 2/3 of europeans vote for pro-european parties. on the other hand, we have ended up with around 1/3 of the seats
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go to antieuropean parties we have a very volatile post election environment we've seen voters vote very much on the basis of issues i think we've had big mobilizer questions. climate change has been important for voters the question of fairness has been difficult but also that fairness question i think has been important to the far right and we've seen across the board voters to see across the board the status quo so i think there's a real challenge on both the pro-european and anti-european side and how they deliver that what that means is, indeed, ways to work two issues
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if you look at them, you like migration. more euro pine solly division. you have a very big difference about us taking care of that on the budgets, big difference between the austerity budgets and those from germany, the netherlands. i don't think there's any guarantee even though the parties campaigned together, that they will turn back into a way of working together at the pool sis and i thought it was ab
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interesting distinction and suggesting the latered is the biggest challenge for the e.i. at the hoemt, how would you describe that? >> i think this is -- this is a major paradox at the moment. on the one hand, the european union is riding high around 68% of europeans think membership of the e.u. is a good thing. the fact that 2/3 of voters voted pro european parties sort of underlines that on the other hand rkt the euro pessimism, despite the e.u. is a good thing, people aren't sure they see nationalism a threat. when we ask whether the e.u.
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would, they know that now is the challenge that is a given with the election paef' seen it's slately around 22%, 46 and then two they're not sure the way it can go we have used this term euro pessimism to describe the mood. >> i want to talk about the presidency of the european commission there have been significant developments pedro sanchez is traveling to paris to meet with the french president macron speaking to them there will be the top center
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grand parliament try studios michelle barner is in the back drop why would the leadership be significant at this point? >> i think it's very unlikely that the leaders summit in sydney is going to sort of be able to make any decisions on candidates i think they need to agree on a framework. as europe said, the ecp and democrats have seen enough in their number of seats and they know they no longer have the overall majority i think there's been some lead candidates for those parties they have a tough job in arguing that these elections have given
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them a majority along the lines of his presence of the endorsement. that argument is a difficult one to make. what will be crucial now will be the parties that have done well in these elections, that's the greens, they have a lot of talk about the green way, but also the liberal, the audi alliance who they choose to work with, i think they have a strong opportunity to push with the key roles in the lineup coming from them and their party or the national representatives t. always depends upon who ar trade
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resolutions. thank you very much for that senior fellow european counsel on foreign relations. coming up on the show, merger talks between two auto heavy weights move into the fast lane as renault and fiat look to overtake the competition unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like
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let's get right into some corporate news driving markets this morning fiat and renault shares are growing. they have prepared a 50-50 merger fda says the new board would be four if i at chrysler member you have fiat and renault shares trading higher
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let's take a broader look. shares in peugeot are trading 2.9% lower so the fact that renault is stepping in perhaps could push peugeot's future in a little bit more of an uncertain like. apparently it seems ip fearable. they ask who i am closely they could have an agreement. the french government will hold a 15% stake in renault now willem is in tourin. he has been covering the european elections and now we have this news for italy's all
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important fiat chrysler. willem, what more can you tell us about the italian government's likely position when it comes to a deal between renault and if i at chrysler >> julia, it is the center of a big in the city. in terms of the reaction so nar not a lot of items are off the table. this morning the economic brain trust of the lega party and he's in the lower half of parliament, he's speaking to the italian tv station and he says the italian government wants to see a symmetry if they have a stake in ren nault, they want to see they have discussion over the future.
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the force of leg gas he was talking about that and what that meant for fiat. >> although the additional disness mig-- businesses might e been saved that will no doubt be front and center as they go into these merger talks we'll no doubt get more comments from some of these people over the coming days. it seems to have served lega well getting the support on a national level almost double compared to the national elections last year. >> willem, thank you very much for bringing us the latest want to squeeze in a quick
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welcome back, everybody. you're watching europe votes this is a special edition of "squawk box. we are live around continental europe drawing together the results of the of the e.u. parliamentary elections. let's get into your headlines this hour. so the results would suggest we have a fragmented parliament over the next five years the center block losing some ground with the liberals and the greens making unexpectedly large gains. the euro stays firm. despite big wins for the u.k.'s brexit party and la lega in italy. >> translator: not only is the lega the first party in italy and marin lapan is the first in italy.
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it's a sign of europe that's changing. >> fiat chrysler and they had talks that could cost the thirteenth third largest. >> no big trade deal talks continue after he vows to straighten out the imbalance with tokyo. >> the united states and japan are working to improve our economic relationship based on the principles of fairness and reciprocity. our goal is to reduce our trade deficit with japan, to remove trade barriers and barriers of all kinds. well, equity market reaction has been positive on the back of european parliamentary election results. big turnout overall. one of the key features of these results. strong support for the greens
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and the liberals also modest gains from those nationalist right wing parties but overall we did not see the surge in populist party support and that is providing a bit of af boost to sentiment this morning. big win for lega 0.9% there we have a phi as chrysler, renault shares and there is a bit of a leg up for the italian sector france, the cac 40 is trading up renault shares, interesting to see how he beat it out in the european investors overall, we are seeing the back of those results europe was holding steady after
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the election results were coming through. the euro is holding steady at the moment as well we will head over to karen now. >> thank you very much for that. let's push on and take a look at some of the fallout from the european parliamentary elections. the e.u. vote puts them 9 points behind the center opposition a source told reuters the vote could come as early as the end of june. they worried the democracy could risk plunging greece back into austerity. >> immediately i'll announce for the announcing national.
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the greek people owe us our support. we address them with sin cert and we ask for a clear mandate >> costs ingreece today. you have significant moves on the ten year where we're just close to that 3% threshold you think of the height of the greek crisis, all the way back to a 3% level. it's extraordinary the movement we've seen, moved about 37 basis points roughly just in this session as investors have looked at the potential for a snap election. i don't think there's any great fear a change back to the mainstream party has received lower risk where there's declining movement meantime, they are moving to the up side in italy we have 2.5 on the charts.
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we've seen worst but still if you're looking for some traction, up 1/3 of a percent on italy. so the section that some of the election risk is fading is right across the board on some of the commentators they see more tension between five star and lega >> in the bonds, yes in the equities, interesting to see that shares in italy are trading higher the phi fiat chrysler boosting that. >> before that we saw even a patch of red on the italian market but now with the fiat chrysler moves,
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less than two weeks after the government collapsed, chancellor sebastian cruise secured 35% of the vote. however, the opposition social democrats are saying he face a no confidence vote after the deputy was filmed soliciting russian public funding in exchange for government contracts. >> jeff, let's get back out to you in westminster. >> reporter: let's pick up on the german angle it's interesting how the german block in germany have fared. there is a surge for angela merkel's center right block but only a percentage in the largest
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lossers. they saw 16% of the vote that put them in third place effectively behind the green party. the epp's candidate for the commission presidency said the vote was a call for a stronger europe and a stronger eu parliament >> translator: most beautiful news of today is that the european democracy is alive. today we received a clear encouragement in the voter turnout and i as someone burning for parliamentarianism at the european level fighting for a united europe, that is the most important news people are fighting for a european union together. >> reporter: let's go out to
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annetta in breman. annetta, it's been fascinating where you are just to see the christian democrats losing their position effectively to the social democrats what do you think that tells us about the political direction of germany? >> reporter: well, actually, it's an interesting one here because it's the smallest federal state. it's literally just a city it was a strong hold of the social democrats ever since the second world war never before the city saw the biggest party being the christian democrats, the angela merkel party and that tells you a whole story about the losing, the lesser significance that the democratic party is having in germany. it's actually diminishing even further. that puts a lot of pressure on
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ang wi angela merkel's partnership and personnel changes. there will be a lot of discussion starting today in berlin they had a lot of fresh wins during the last couple of jeers, with you that doesn't work with the electorate there is also a problem of how to attract young voters. they're overwhelmingly voting for the greens that's why the green party is growing stronger and stronger. we can call it the green revolution, the green wave it is something we have seen in past regional elections in germany, but i think this is not
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something like a little wave it is a trend that is persisting what we're going to see going forward in terms of political change in germany, everybody wants to go a bit greener. environmental policy will be a lot more important also for the like of the cdu and the spd. that could also mean that they're making business in germany so back to you with that. >> thank you very much with that we're debating the irony given emmanuel macron tried to push through the green initiatives. >> then to see that green waive coming through he could tell in practicality, he was great this changes. perhaps if it was kickedup, it will make all of the difference. the european parliament was set
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for fragmentation after they were set to secure a majority. they have seen significant gains in an election with a higher voter turnout in years let's get out to brussels with sylvia you have a guest with you now. >> reporter: that's right. good morning as you mentioned there, the european parliament is said to be more fragmented still pro european but there's wider division when it comes to the coalition at that we have seen over the last 40 years passing legislation in the european elects. let me address am of those ral colleges with my next he gear. >> thank you for joining us. what do you expect emerging after the elects
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>> a variable coalition. the parties can no longer go it alone. sometimes they might need the greens, they might need the liberals on the environment with the green, on trade agreements with the liberals >> reporter: how is that going to work. the process has already failed, we do it like a national parliament we decide among us and thirteen parliament will be accessible. that's unlikely to happen for the moment. >> do you think the heads of state are going? they will take into effect >> if i have to take into
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account the election, the result is we don't know therefore, they would say, okay, nobody has won we'll take our own parliament. >> what's the european commission need for the next five years >> i think we need somebody who can put these parties together you'll have different coalitions, different issues and we never know what the next crisis will bring and, therefore, we need somebody that can pull people together maybe also some of those who right now are still skeptic towards the european party. >> they say given the fact that the european parties failed in the election would you agree with that? >> let's put it this way
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the centrists have not lost, right? they would also have to show that all the things which they propose at the european parliament, they also support at home because we have the party saying we would like this and then their own parties at home, their own leaders say, no, no, we don't like that that is the most important aspect. >> what is the biggest challenge for the next set of policy leaders here in brussels >> they have to start realizing that mthey have a major contact. and certainly there's a large majority that looks at the environment. i think brussels has to take that into account. >> let's look at france. it shows that macron emerged second and will he pan won
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what are the will he pan got future votes if he doesn't have the additional, but i think that can kron relanes remain in this is et cetera. >> thank you for joining cnbc. daniel gross for the think tank here in brussels. when it comes to these european elections what we need to watch out next is the negotiations at the european parliament to see what kind of compromises will be made the second thing to watch out is the summit here tomorrow what they will say about that?
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>> thank you very much, sylvia the italian deputy prime minister salvini is speaking out. we are waiting for flashes to hit the wire he is set to be key. nationalists have increased their showing. and away from the european parliamentary elections, coming up on the show, president trump hibts at a trade deal with joe pan. more after the break ♪
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italian deputy prime minister is speaking in milan after the victory in the e.u. elections. salvini said he is convinced a new european commission will be more friendly towards italy. here's our first commentary reaction to what we've seen overnight. also, trying to point out that it has a strong friendship in pine star but only what he
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has. the t.d. party will extend the hand of friendship to the coalition partners and he's gone on to say he thinks the european commission has sent letters to the italian government and the economy. so while there may be firm negotiations or flashbacks down the tranl that. switching gears from our tropp gentleman -- it's been a busy visit from trump. they watched sumo wrestling, ate ham burgers and played golf. is this visit all about symbolism or are they actually making progress towards a deal
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>> reporter: we didn't exactly see any difference in terms of the trade rhetoric coming from the u.s. president this time around, did we as you mentioned, the red carpet treatment that japanese prime minister shinzo abe rolled out for the u row mean union it's only temporary for now. here is what the u.s. president had to say after his bilateral meeting with his japanese counterparts >> we are very much discussing different hatsds are trats. >> they are brilliant business people brilliant negotiators and put us in a very tough spot but i think we will have a deal with japan. >> the question is, of course, what happens after july. upper house election in japan
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and really the trade narrative when it comes to auto, agriculture staying the same at this point guys >> one of our top stories. fiat chrysler and renault shares are soaring. sca has prepared a 50-50 moerge ger which will be discussed by renault's board this morning they say the new will have a surge. they're currently up 10% close to 14% that's it for today's special europe vote show thank you very much for joining us i think some of the big take aways from this has been that we haven't had a stronger showing for the populist therefore we
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don't know >> the european is holding steady we saw some rise but not to the extent that the market had been expecting. interesting to me that we saw a surge in support for the greens so climate change likely to become a central area. >> putting the x in a box. they're out in force thank you to our reporters across the region. >> we'll see you tomorrow on cnbc we're the slowskys.
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