d ink he's still pushing us. that's all for this edition of "dateline." i'm craig melvin. thank you for whatching. [music playing] ♪ good morning welcome to "street signs." i'm joumanna bercetche >> and i'm tjulianna tatelbaum these are your headlines >> apple reveals the vision pro. the new product launch for the company in the last decade >> iphone introduced us to mobile computing, this will introduce us to spatial

computing. and the s.e.c. sues binance for breaking securities rules. the ceo of stablecoin tether says it should be more carrot and less stick. >> we should see from regulators a bit more proactive guidance and legislation rather than regulation by enforcement. >> our u.s. colleagues will have more with gary gensler at 15:00 cet. the s&p 500 closes lower having hit the highest intraday level since august. and manufacturing comes in soft in germany and spain and christine lagarde says it is still too early to call a peak in price growth. >> underlining inflationary

pressures remain high. although some are showing signs of moderation, there is no clear evidence that underlying inflation has peaked good morning welcome to "street signs." apple revealed the headset after years of speculation the first hardware launch in almost a decade. it will cost $3,500 when it is released next year the company touted the use in gaming and working shares fell from earlier in the morning. ceo tim cook hailed the potential of the technology. >> this is the day that is years in the making. one that i've been looking forward to

i believe that augmented reality is a profound technology blending digital content with the real world can unlock experiences like nothing we've ever seen. so, today, i'm excited to announce an entirely new a.r. platform with a revolutionary product. >> apple announced a content partnership with disney as part of the event with bob iger making a surprise appearance he believes the technology well change the way we consume con content. >> we are in search of new ways to owevntertain and inform and inspire fans by providing extraordinary creativity and groundbreaking technology to create truly remarks able experiences. we believe apple vision pro is a platform to make our vision a reality. the first time i tried apple vision pro, the thing that

struck me the most is how it allows us to create deeply personal experiences that bring our fans closer to the characters they love and more deeply immersed in our stories this platform will allow us to bring disney to our fans in ways that were previously impossible. >> several a big story it was the first major hardware launch in a decade, i believe, from apple i'll start with the share price reaction shares closed down marginally lower we traced the ground in the lead-up to the announcement suggesting investors may be underwhelmed this is very apple it often takes investors in the market a while to come around to their new launches and ideas we saw the same thing with the launch of the watch. wearables category which is now a huge business. i wonder if it is the same with

the augmented reality headset. >> the context of using apple as that is interesting. we saw that jump in the stock price. as you say, the significant launch since 2010 with the macbook. i think the problem is really the price point. $3,500 is steep. not just for consumers you have to wonder how broad it will be and if they can encourage developers to come in. it is not just about the headset, but the apps that complement the headset that is why it is big to have bob iger on stage to say the library is on the headset. it is not just for developers to buy the dream, too if they think the price point is too prohibitive, they will be reluctant to join.

it is 12 times more expensive than meta's priceproduct >> it is interesting to get the developers on board. what is the headset if you can't use it for content when you think of v.r. headsets, they are used forgaming. it is wild to put on one of the v.r. headsets. it makes you feel like you are about to fall off the cliff or ocean. they are dramatic. the idea with this launch from apple is they are used for mainstream things and working and looking through documents. it is not the gaming market that they are going after here. even eventually, they looking for casual users i'm not sure how many will buy in for $3,500. >> is it a proven use case it comes back to the steep price point. when you buy a smartphone and it costs $1,000, you buy it over 24

months or 36 months and spread out the cost every three years, there is an incentive to upgrade or renew your contract once it expires. there is not an obvious use case to go out and spend $3,500 what do you need it for? i still go to work i don't need a headset to do any job. i can speak to my friends and i can read the news and apps all on my smartphone what does this headset offer that we need for day-to-day life that is a question we will find out in the coming years. apple is visionary >> it is hard to remember looking back to 2007 when the iphone came out. thinking back to that time and how it wasn't clear we needed iphones at the time. nearly everybody who has a smartphone cannot imagine their life without one >> you can find out more about the apple headset and all of the

other announcements from the launch at cnbc.com of course, this is a major piece of news that markets have been digesting the last 24 hours. it isn't everything. we had a bunch of u.s. data come out yesterday surprising to the downside ifm services number is weaker. we saw the pull back in equities and not just because of the turn around in apple. in germneral, sentiment is wors. markets are pairing down expectations of what they see happening at next week's fed meeting. now about 25% chance of a hike is priced frin as markets reassess where we go from here, some of those rate hike expectations are priced out. over here in europe, there is a bit of red on the board. is it a mixed bag for the majors we have the dax up .10%.

here we see reacting to the industrial orders coming in which are weaker and falling for the month of april cac 40 is up 5 points. we are seeing a pull back in luxury the ftse 100 is a stellar performer yesterday on the back of the big upward move in commodities prices specifically in oil today is seeing the flip side. 50 points lower. weaker on the satisfession this is on the back of the names trading in the red today a bit of difference from the price action yesterday in terms of sectors, this is where leadership is coming from health care is up .80%. travel and leisure is up .40% the price of oil is starting to slip despite that surprise

unilateral decision by saudi arabia to cut. in terms of yields, we are seeing a bit of a comeback for the space. the 10-year bund at 2.33 we rallied 3 points in the session. 10-year btb is 4.1%. we have seen a lot of strength in the european fixed income and u.s. fixed income in the last couple sessions. we will talk more with our next guest. >> we are, joumanna. that is a conversation i'm looking forward to traders are weighing the possibility of another rate hike after the june meeting after christine lagarde said it is too early to call peak after comments on monday lagarde drew attention to wage increases and firms exploring imbalances with factories behind the stick ystickiness.

>> the numbers suggest indicators of underlying inflationary pressure remain high there is a sign of moderation, but there is no clear evidence that underlying inflation has peaked wage pressures have strengthened further as employers recovers as a result of high inflation moreover, firms have been able to increase their profits on the back of mismatch between supply and demand and uncertainty created by high and volatile inflation. >> happy to bring in the head of rate strategy europe at bnp. let's pick up on the comments from christine lagarde implying there is more to go on

the rate hiking front. they are not where they want to be there is still inflation pressure coming through. how does that translate to european fixed income? >> sure. first, on the content, risk is tilted to the upside we have seen the rba which tried to turn dovish previously and had to reengage. and next, the fed will have to, you know, if they want to skip -- to stick to the skip in june it looks like they will have to deal with it in july the risk for the central banks is still to the upside lagarde saying it is too early to call peak in core inflation you would expect the head of the central bank to remain extremely cautious she made an interesting statement.

she noted that they were starting to see the full effects of the monetary policy they are starting to see that happening and we are in stage two of the monetary tightening that is what the ecb wants to see to then judge rates which will then call for the pause for the ecb as well. >> i wonder if we are getting to the point where central banks are at risk of overtightening. many are still sounding hawkish. not all. there is a view that there is an inclination to deal with core inflation. some people say that it takes time for central bank monetary policy decisions to make it through to the system between 12 and 18 months. it is not a crazy idea for them to sit and pause and see the impact of the previous rounds of

tightening that will happen before they continue if they are getting into overtightening territory, does it mean that curbs could mean flatter? >> that is a risk. further inversion of the curve yes, i think central banks are looking to the difficulty. several want to pause with the impact on the economy and forced to reengage later. the risk of the curve is for further inversion. actually, if anything, you know, we think that looking at medium-to-long term, we may have seen the peak already. especially with the euro deals we have had bearish rates last year

they moved to this range and now more inclined to get below the market especially ahead of the summer. >> looking further out to 2024 or further, when do you expect the ecb to begin the easing cycle? how would you expect the pace to compare over the hiking cycle? >> looking at the outlook for core inflation and headline inflation, it is looking likely that it will remain sticky for longer we are also expecting at bnp to cut rates in 2024. by no means, before 2024 we are looking at 100 basis points for the ecb which was actually not different from the markets. i would say the risk of the

front is more to the upside because the economy continues to remain resilient core inflation is likely to converge back to 2% for the future. >> what about the fed? how do you anticipate the magnitude of the cuts to compare to the federal reserve we hear people talk about the fed and when they do cut, they have to cut in big increments. >> we are in the call of 175 to 200 basispoints as well for th first year again, not too different our view is looking at the curve and looking at what is priced in the market, the market is already pricing in two curves which is already consistent with the soft landing the market is pricing the faster

stee steepening on the curve over 2008 the timing is wrong. i would say the risk/reward is not looking good for us. >> i know you are a european rate strategist, but i want to ask about the u.s. since the debt ceiling has now been passed, there is talk the treasury may look to replenish the rundown of the treasury general account. they were running it down into the debt ceiling deadline of the -- deadline they are talking about issuing more treasury bills. is that going to put for pressure on the market >> fair point. i would say yes. indeed, the treasury will rebuild the tga. they will issue massive amounts

of bills that will put strain on the rates. what it also means is that they will drain equity out of the markets. now this drain of equity could have a showing on longer term yields in our view, looking not just at the fed, but the ecb with their's expiring at the end of june, this is likely to be reviewed the next couple months. in the magnitude of 7% to 10%. we have a contraction in liquidity ahead of us. if we start having a correction there, i think it will actually benefit both favoring the summer run going

long the 10-year is in play. >> thank you for coming in and sharing your views head of rate strategy europe bnp bnp. the bank of australia has had the 12th hike in 13 months german orders posted a 4% decline compared to the 3% gain expected for the year. on the year, orders have fallen 10%. over in spain, industrial output fell 0.0.9%. and an food prices drive uk retail spend higher in may that is according to the figures from the british retail consortium non-food sales grew in the period, but brc figures are not corrected for inflation indicating shoppers bought less.

coming up on the show, crypto takes a tumble as the u.s. s.e.c. accuses a ceo of mishandling billions of dollars.

welcome back bitcoin and other cryptocurrencies are muted today after a tumble in monday trade the u.s. securities and exchange commission sued bia binance the regulator allege that the founder zhao misled investors about market controls. in response, binance said it was taking the s.e.c. allegations seriously and intends to defend the platform the crypto exchange said this should not be the subject of s.e.c. enforcement action. a programming note, our u.s. colleagues will discuss more with gary gensler at 15:00 cet

let's get to arjun binance actually captured more than 2/3 of the entire spot crypto market. this will have huge ramifications for the industry >> reporter: the question is how does it play out it is an issue for u.s. regulators if they manage to shut off u.s. customers from the binance exchange, that could have an impact on binance and the bigger market and a market with thin trading volumes. retail investors have not come back in after the carnage over the last 18 months you look at stablecoin which trades in and out of crypto. there could be a ripple effect on this. what this speaks to now is a

bigger debate that's been waging over the past few months between the crypto community and, in particular, the s.e.c. the crypto community says the s.e.c. is not clear with the regulation on crypto they are using enforcement as a way to regulate. this is not the right way. we need guidelines the s.e.c. says we have given you clear guidance the security regulations have been in place many years that is the debate playing out i have speaking to many and including the ceo of tether to get his take on what is happening with the binance case. listen to what he had to say. >> i cannot speak about the allegation also. that is for the company to address the allegations. i think both as a person running an exchange is a bit more

guidance rather than regulation by enforcement i think we're in europe and we appreciate the european parliament because they are providing a clear set of rules that might be tricky or we can debate that. at least there are rules and working toward a framework >> you heard the view from the crypto community they are asking for clear rules from the s.e.c the s.e.c. has given guidance on what is and isn't acceptable this debate will continue to play out and continue to apply more pressure on the crypto space. we have exciting interviews coming up after the break. we will talk about london as a listing destination for the technology sector with julia

hoggett. don't miss that. we'll be right back after this break.

welcome back to "street signs. i'm julianna tatelbaum >> and i'm joumanna bercetche. these are your headlines >> apple reveals the vision pro. most anticipated product launch for the company since the first in wearables nearly a decade ago. >> the same way we introduced you to personal computing, apple vision pro will introduce us to spatial computing. s.e.c. ptakes aim at binance for breaking security rules. the ceo of tether says authorities should be more carrot and less stick. >> we should see from regulators a bit more pro-active guidance

rather than regulation by enfor enforcement. >> our colleagues will have more with gary gensler at 15:00 cet. and a muted start after the s&p hits the highest level since august. manufacturing is soft in germany and spain and christine lagarde says it is too early to call a peak in price growth. >> indicators of underlying inflationary pressure remain high although some are showing signs of moderation, there is no clear evidence that underlying inflation has peak ed european equities are off to a fairly sluggish start this morning. as you see, it is a mixed picture.

fairly raised trade. the ftse 100 is under performing down 0.3%. some on the board for the swiss market and smi up 15 points. the dax is hovering at the flat line and similar flat trade for the cac 40 the stocks closed lower yesterday. that was the under performer of the day. in the forex markets, the euro and sterling on the back foot against the greenback. contained moves. 107 and 124.24 the japanese yen weakening against the dollar as for wall street, here is what is indicated for the open according to futures at this stage. muted as well. in line with europe. slow start indicated by th futures. again, as we discussed yesterday, it is a slow week for

data which is usually the case after a non-farm payroll report. the ceo says it is focused on expanding the business particularly in europe he spoke to arjun in amsterdam where he touched on the company's ipo. >> it is the place to improve. >> are you looking to raise more funds ahead of the ipo >> if you think about funding and it is all a distraction, we will raise money, but we will raise money in the right manner. we want to raise money whenever we want. london stock exchange ceo julia hoggett says they need to

get young and scrappy. she urged regulators to look at the stock market and current rules. a arjun joins us again from amsterdam with the lady in question >> we spoke to the ceo at fintech. he said they will list in the u.s. when it comes to it there is an issue with london and its position in the world for listing of tech companies. what is your ambition? >> london is, by any measure, the largest venue in europe. our competition is with the u.s. there is a lot if you look at the listings that happened, you take one in a similar sector, it has had a successful listing in london and trading against the u.s. peers

the idea you get the premium in the u.s. is a misnomer the listing is for life, not just for christmas access to follow-on capital, not just the ipo, is the reason for the listing. that continuing valuation matters. if you take the uk companies that have gone to the u.s., over 100 million in the last 22 years, five delisted and one traded up. mon man united it is not justthe headline sticker. it is what happens afterwards on any venue that matters we care about making sure companies have the right access to ipo and get the continuing access to follow-on capital. >> is this a brand perception? companies say we get the premiums in the u.s. it is more known for tech.

we will not consider london. does it come down to that? >> i don't think we will not consider london is true at all i think there is a habit of fixating on the companies that don't come i think that does happen we have a british habit of standing back and admiring the problem and not recognize the progress made. we had a fabulous year in 2021 and 2022 we had a slow year this year things are picking up. we have the biggest listing in europe and third biggest happening or announced already there is far more going in the uk we are also going through a radical period of reform in the uk which will enable us to have a level playing field. >> you mentioned the fca consultation on the listing reform is this a silver bullet?

>> there is no silver bullet you need to have research and domestic equity. you need a host for the ecosystem. the uk has the global financial market it has a deep capital markets. one thing we haven't done is connect those together that is one of the jobs we are seeking to do now. the listing rules play a critical role. managing that inspired idea and the fca has a set of proposals that capital can be raised with flows of cash, but fintech and ip companies moving forward the future of the exchange that is the thing we didn't have an in the rules before. >> another part you were talking

about is something quite preferred by technology companies. particularly founders wishing to keep more control. we know there is a lot of debate which goes against shareholder rights where do you stand >> the debate is already done. the fca made the debate after the hill review. i take the view what london needs to have is the right set of structures to make what is right for them for the circumstances they have. we need to have a range of scenarios and structures that companies can use and it needs to be clear disclosure over why they use them. the proposals now actually recognize the structure. >> many people point to what you said today about london and its ability for you to get

agreements and have a long jeff -- longevity in the market. you can have the start ups what about the $30 billion giant that said we will go to new york >> if you take a look at when it was listed in london, it had a uk listing and u.s that is likely there was a difference with the demands of the listed company in the uk versus the u.s. that is the rational why they chose to go to the u.s that is a consequence that is resolved in the reform i haven't lost it at all i think we should fight for great uk tech companies to deal they have a home here. i know there was strong appetite fore for a.r.m. in the uk

>> can you talk about the discussions you had around the potential listing in the future? >> i won't go into details of discussions. if you look at the structure before, that was the structure before and it gives them ability to get attraction and following on the market and that is a powerful thing to explore o >> you said the dots need to be connected and anthe listing reforms. do you think other things come organically? >> they are already -- this is the remarkable thing. the listing rules and research and an amount of risk capital and corporate government requirements and nature of the scaling interest in the uk it should be through within the year there is a research review going on right now that will add to

the capability in the uk that will be done by the summer. there is a huge amount of work going on there is a lot of review going on with corporate governments and we are working on the first crossover market with private and public if somebody told me two years ago that summer of next year, it would be done in london, that is where we are today we stand back and admire the problem and lose sight of the progress in the system. >> there is a debate with pensions in the uk and unlocking the funds to invest in some of the more tech knock used businesses how big a deal would this be >> this is a big deal. it is a big deal for two reasons. fundamentally big deal for uk pensions we have not hadinn

-- investment in the uk there is no reason why the uk pension funds couldn't do the same thing that gives the share of the future growth of great companies in the uk for pensioners it is important to have a massive pool of domestic capital in the uk. >> we know in the uk, you mentioned there are growth companies and fintech companies and a.i. is a hot area at the moment of course, at the moment, stock markets are volatile a tough macro environment with interest rights high investors sighihying away from growth businesses. what is the outlook say for the rest of the year >> our job is to be there. we have been there for 300

years. our intention is to be there for another 300 years. to make sure companies have the ability to be ready when they want to press the button we see the pipeline start to build and companies are pressing the button the biggest ipo in europe this year we are seeing that deal come through. companies will still step into the market >> julia, thank you for insight and taking on the questions. fascinating conversation julia hoggett, ceo of the londo stock exchange back to you. >> arjun, thank you. elon musk says the chinese government will implement restrictions on a.i. in the country after erhe raised the issue why the visit last week.

musk said his conversations on a.i. risk conversation in china. don't miss the special edition of closing bell coming up at 8: 8:00 p.m. cet. coming up, antony inblken heads to riyadh to discuss another opec deal next und ation. now we're shipping out orders 5 times faster and we're saving a ton. go to shipstation.com /tv and get 2 months free.

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welcome back to the show ukrainian president volodymyr zelenskyy will hold an emergency meeting after the part of ukraine dam was blown up the dam supplies water to the nuclear power plant which ukraine's state agency is under threat massive evacuations are under way and russian media says water levels are rising and islands flooded. according to russian state media, 22,000 people could be affected and the dam impossible to repair. ukraine said more people could be at risk and both sides blame

the other for the attack u.s. secretary of state blinken arrives in riyadh today to try to normalize ties with israel the visit is fraught with diff issues speaking monday, blinken touched on the issue for the u.s. which is iran. >> we believe diplomacy is the best way to effectively and sus sustainably prevent iran from get getting nuclear weapons. if iran rejects the path to diplomacy, president biden had made clear all options are on the table. >> let's get to dan in vienna. this is topical given the saudis decided to go with the 1 million barrels per day oil production

cut. dan, i wonder how heavily this is expected to feature in blinken's discussion in riyadh he is there for three days there is a lot to discuss. >> reporter: indeed. no shortage of challenges on the horizon for the relationship of course, the u.s. and saudi arabia are deep strategic allies in the middle east and the u.s. is the region's most important foreign policy actor when it comes to issues of security and beyond secretary blinken comes in at a time when china brokered a deal with saudi arabia and iran and, of course, saudi arabia moving to deepen its oil production cuts something which certainly caught the ire of the white house before we are watching to see comments from secretary blinken on how the u.s. is currently viewing the saudi arabia policies

what is also interesting is the normalization deal this is something that the united states has been seeking to champion in the aftermath of the china brokered deal with saudi arabia and iran. however, there will be key issues left on the table here to be discussed of course, when it comes to that relationship, it has been fractured in the past, and saudi arabia, in order to get a deal over the line with israel, will have to have something in return it will probably want a concession on the civilian nuclear program or easing of restrictions on weapons sales from the united states certainly a lot on the agenda there. earlier today, i spoke with the former u.s. ambassador to saudi arabia to talk about the issues. interestingly on this question of how the u.s. is going to respond to saudi arabia's oil production cut he says this visit and the conversation isn't necessarily all about oil.

listen in. >> this is an important visit on a number of fronts of not just the israeli and saudi potential there for the diplomatic relations in the future, but important for rebuilding and restructuring our old relationship with saudi arabia i don't think this is about oil. i don't think this is going to be about trying to convince the saudis to do something different on oil they are pursuing their national interests. we have to pursue ours as well >> reporter: just on the topic of oil, joumanna, important to look at the price action right now. oil prices falling around 2% today. that is despite opec move to rollover the production curbs and saudi's lollipop to increase the contribution and deepen production cuts. one wonders if the fall in the prices is going to pressure opec and allies to do more to is stabilize the market in the second half of the year.

i would flag the price action for you. back to you. >> dan, thank you for your reporting. super interesting. let's focus stateside. kevin mccarthy is touting his deal and what he calls curbing of spending. >> this is a turning of the ship a move in the right direction. think about what we have been able to achieve. for the first time, we will spend less than what we spent last year. the center for fiscal responsibility, this is the biggest cut in american history. $2.1 trillion. >> former u.s. vice president mike pence has thrown his hat into the ring to run for president. facing off against his former boss donald trump. pence joining a growing list of candidate vying for the job. he is expected to launch his campaign in iowa tomorrow.

brie jackson is joining us with more brie, good morning the 2024 race is shaping up. give us the latest on what we know mike pence has thrown his hat in the ring who else might we hear from this week >> reporter: good morning, julianna you mentioned former vice president mike pence filed paper work with the election commission pence is joining the investigation into his former boss we expect his official announcement on wednesday. today, we expect to hear from former new jersey governor chris christie he is expected to announce which will add more to the growing list of republicans running for president in 2024. the current frontrunner, former

president trump faces legal challenges his attorneys met with the special counsel and other justice department officials on monday the investigation into trump's handling of classified documents could hit a pivotal moment this week when the grand jury convenes to hear the florida evidence trump maintains he has done nothing wrong with the handling of classified documents. he has insisted the investigations into him are politically motivated. mean meanwhile, the former new hampshire chris suunuunu says he will do whatever he can to block trump from claiming the republican nomination. that is at least one person we know will not be running as the field of candidates continues to grow julianna >> brie, thank you for your

coverage brie jackson giving the latest on the republican contender race it is very apparent that former president trump is the frontrunner within the republican party he has captured more than 30% of the lead against the next which is ron desantis. you have to wonder mike pence and chris christie as well and what they think they can achieve by entering the race and if they believe they cannot only overtake former president trump, but ron desantis >> absolutely. i think the view right now is the more hopefuls who throw their name into the mix, the more likely it is to splinter the vote and leave donald trump in the front running position. obviously, trump is a polarizing figure at the moment, it looks the more people who try to take him down, the more likely he is the one to

sta stand out with the most support. >> you have to wonder because a big chunk of republican voters are undecided, you wonder where the votes go it is useful to have so many names thrown into the ring when it could have been the bunch of them coalescing behind one >> exactly that is the risk for anybody who was hoping that it would be a different nominee than trump to enter the general election our conversation we will continue having the coming weeks and months let's look at u.s. futures all three of the majors are now indicated for a lower open that is it for "street signs." i'm julianna tatelbaum. >> i'm joumanna bercetche. "worldwide exchange" is coming up next.

it is 5:00 a.m. at cnbc global headquarters. here are the "five@5." apple lifts the curtain on the $3,500 headset and most ambitious hardware since the ipad wall street is not sold yet. crypto crush stakeholders deal with the fallout of the s.e.c. crackdown on binance the big question who's next growing odds the fed will pause next week, but stopping other central banks?