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tv   Street Signs  CNBC  May 30, 2022 4:00am-5:00am EDT

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again. >> having been burned once, i don't think future c.e.o.s of sotheby's and christie's are gonna be foolish enough to get together in the back of a limousine to fix prices again. it's not worth the trouble.
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but hedge funds remain and that
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will catch up. that's in the short run. in the medium to long run, we stay in a year, you know, where we have low growth, high prices. we have central banks which needs to bring down demands and that means to stay at -- you know, the contact over time. but there will be some extra bonds and maybe we are into one of them. one of the key things we're looking at is earning growth because this has been a tailwind in the first quarter we need to see if it starts to bend, that means negative revisions. so that's the key also, let's say, micro that they're looking at >> you make an interesting point about hedge funds exposure because, you know, we look at some of the really lower that we've seen over the last quarter
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or so, so much of it seems to have come from hedge funds positioning and hedge funds starting to sell out quickly from some positions that weren't working well is it your take that repositioning is happening and now there's actually money on the sidelines that could be deployed and if so, what's going to cause those hedge funds to redeploy their capital? >> i think there's clarity on the bond market. and especially, you know, the fed is front-load the rate hike cycle. and might indeed, you know, let's say, entitle hedge funds to consider coming back to the market, let's say. that mandate is obviously with capital with the s&p down minus 15% or 20% yesterday, they need the cap flow if there's incrementals coming back, indeed, the sidelines will
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come back into the equity market and risk assets. >> if we do see some tactical bounces as you were describing, what are some of the tactical trades that you would encourage some of our viewers to look at >> well, in terms of, let's say, highing paying, high-risk ideas, probably, one interesting segment of the market to look at is unpredictable tech. remember, the bond markets back in november, think about that, the type of stock that is invested, the variations has come meaningfully and they're the largest, minus 60, minus 70%. either there's relief on the bond side with bonds coming down given the fact of cash on the sideline, this high be a higher paying high-risk segments favored by the markets if you look at the short stocks last week, they kind of
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rebounded. if we need to have tactical bond which is lasts a couple of weeks that might be one segment which might benefit. and in others, it's the mix of balance stocks, and large cap stock. >> just to be clear about these companies what is the trade you would want to be long these companies? or in case there is a bounce, you want to use those bounce opportunities to sell if you're already in them? >> well, be very kacautious in this segment what's interesting when you have a selloff in one segment of the market you can be selective and try to, let's say, make a difference in tech stocks which might continue to face headwinds and do what is interesting in terms of quality of the business market, in terms of perspective.
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and these ones have been probably suffering as much as the others and start to look interesting from the bottom of the perspective? >> any names you can give or do you prefer a single stock? >> we don't give you name, i just want to give you investment which might benefit. >> fair enough, very helpful >> thank you so much for joining us >> thank you so much >> cio of the bank. >> let's continue with keys and corporate focus. we've got one big one, german industrials 8.1 billion euros. the german group dubbed the project a suez canal on rails. adding it's the biggest order in the company's history. the world's sixth largest high-speed rail comprises 2,000 and aims to create over 40,000 local jobs
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both the german and the heads of states were quick to hail a deal we are seeing a strong reaction from news of this deal from positive action, we're up 3% right now, and this is being hailed as a huge deal because siemens was under fire for the failed deal. and many are talking about this one as the comeback of the rail unit after that happened and this is a big change and a major deal i mean, we're talking 8 billion euros. so this is a huge deal for siemens, and shares are reacting accordingly. that means new jobs for thousands. and obviously, a huge project with egypt but in terms of the company industry, the partnership, this is certainly a positive, after joe kaczur's failed attempt to merge and that is a major deal from an antitrust perspective.
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you're all over that, quite a controversial one that captured the attention of investors and anti-regulators a like so, this is a big one from siemens. on the back of that conversation we just had way charles, and now a million down on grubhub which it bought for 5.8 billion pounds less than a america. bank of america has been tasked with finding a partner for grubhub, and expectations are now as low as 1 billion pounds amid slumping valuations j.p. morgan has downgraded saying it sees limited performance. and they also have the price target for the food delivery
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giant to 94. and jpmorgan cut the target price to 34 euros to 51. we're trading right around 35 euros at the moment. coming up on the show, germany's economy minister warning unity over a russian embargo is crumbling we'll take a look at the implications for the crude market, next
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welcome back there's a preliminary agreement to consolidate the signoff is the latest move by italy to create a single broadband network. cdp is italia's biggest owner and has a 60% stake in open fiber. ez jet has announced throwing plans into disarray
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they were offered to rebook or receive a full refund. holiday operator tui cancelled flights. the airline apologized but added the measure was necessary to provide reliable services during this time. let's take a look at the oil majors this morning and how it's trading. it's a bit of a mixed bag overall. you've got shell down two basis points or so so, obviously, no major moves but underperforming slightly and you've got eni trading about 0.5 lower. hungary continues to block its planned agreement to ban oil imports from the country this as european leaders prepare for two days of meeting in brussels,
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starting this afternoon. diplomats were unable to secure a compromise last night. but speaking this morning, the policy chief said he's hopeful that will be made by the afternoon. cnbc asked a number of european leaders in davos how helpful they were for an agreement for russian embargo could be reached and how they intend to ensure that businesses comply with the block of sanction packages. >> i hope we're talking about dates. what we're looking at is landlocked, that cannot have oil by the sea there, we try to find solutions to make this possible to create s solidarity that they get the oil from some place else and support the investments and renewables >> for them, it's time to switch from oil to get enough oil into
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their country so there is a genuine worry. i hope we can solve it so, we are working very hard, all of us, also with hungary to get it done. at this moment it seems it's only hungary holding up an agreement. it would not be good for the eu, and i hope monday, tuesday, during the european council, before or after, and i'm cautiously optimistic. >> we see that tensions are actually being complied with of course, there's a lot of discussion with businesses on more precise guidance and that guidance with questions emerging and businesses need to know those answers to that properly >> france is trading about 0.9% higher this morning at $120 a barrel breaching that $120 morning. wci is trading at 0.9% as well
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dan joins us now with more on the latest on the energy markets. dan, we got the eu front and center and this debate around whether they will be able to move forward with the oil embargo. what is being priced into oil markets right now, which will go to the potential for an eu ban on oil enforced from russia. >> well, julianne, a lot of the head line has been priced in here, of course, traders are looking out for sanctions progress from europe today as this two-day eu meeti ing gets under way. central is the plan to plan russian oil, the european commission wants to ban all european oil to cut off a key source of russian refuse and to squeeze putin to end the invasion but this has been hit by road blocks on multiple fronts. diplomats ultimately failed to
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come to any compromise agreement at the moment. and stakes are rising with hungary opposing the deal to seek alternatives and more time to invest in refining capacity what's interesting other landlocked countries like slovakia and the czech republic have also asked for more time due to their dependency on russian oil. anything could happen. reports coming out of the weekend and into the start of the week suggest we could see a watered down agreement that could give hungary more time by extending its own transition period or allowing a temporary revision still blocking deliveries by a ship that would allow hungary to be to be supplied by the pipeline that runs through ukraine but the position remains unclear of course, that suggestion could also be a nonstarter for other european members that would be pushing for the ban. it would still allow russia to
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export its oil to europe eu activity is on the line because pushing ahead without hungary or dropping the ban altogether would be damaging to optics of european unity so exactly what happens over the next two days remains to be seen with this. it's absolutely a live event and something that traders are watching and of course, stakes higher as well as we come into the opec meeting towards the end of the week. the g7 calling out opec urging the group to increase oil production in order to tame the soaring prices of course, the group has ultimately suggested over the past few months they've been unlike throw help here, basically the market as being balanced overall and the reason for the price elevation through the course of the year has been russia's invasion of ukraine. of course, remember, as you know, russia is critical to the opec alliance. and opec is unlikely to act against russia, given the
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comboshs of unity within that group itself pals an interesting conversation now emerging, particularly out of davos, where we saw jeff actually interviewing ursula von der leyen. there's a suggestion that von der leyen may have set the eu up to fail here she told jeff in davos that this ban was due in just a matter of day when in actual fact it looks much more complicated than that. some of the reporting that we're seeing today, for example, the bbc writing there's a feeling that ursula von der leyen may have mishandled things, in fact, by announcing this plan before doing some of the necessary groundwork so watch this space. eu credibility absolutely on the line what we're also going to see over the next two days is the new package of sanctions that's been leveled towards russia that includes spur bank, for example, one of russia's rgest banks
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cutting it off from the swiss system but also what's happening with food security right now which is critical and of course, the latest defense in military aid to ukraine so, a number of broader issues also on the agenda outside of the oil ban. but the oil ban is really what the markets are focusing in. back to you. >> dan, what a difficult balance for von der leyen to face with the action she's facing to take more action against russia dan, you did an excellent job on the supply side of things when it comes to oil markets. i'm curious on the demand side, how much of a bounce we're seeing on oil, to do with what's happening in china of course, the china demand story has been central to oil. and with the lockdowns there, there's been a ton of downgrades to forecasts but now it looks to be easing a bit. to what extent is that propping up the oil price today >> that definitely has something
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to do with it. we do suggest on "squawk," who said the decision by shanghai to ease some of the restrictions and also, commentary we've heard from policymakers in china about supporting the economy has been helping to improve the oil price outlook. of course, china being a key consumer of crude oil globally not just any crude oil but also russian crude oil for that matter. that has helped to support oil prices you can see brent back above $120 a barrel. wti at 116 the differential between the two contracts. interesting to watch as well we've seen that narrowing in recent weeks but, yes, absolutely, china is kind of the sleeping dog if you will it's something that traders have been focusing on very closely. the demand profile perhaps could be improving over the next few weeks and months as we've seen
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cases continuing to ease the covid restrictions they've had in place ultimately, the view in the market, at least according to the people we've been speaking to is that so long as the zero policy in china stays in place we will see a limit-up, some kind of restriction when it comes to easing overall demands so that's something to watch as well we'll probably get more clarity on this maybe even more insights from opec ministers when they conclude their meeting at the end of this week but this is certainly an issue that's being priced into the markets. and certainly something that the opec group is also focusing on because of china's performance when it comes to global oil demand >> dan, thank you for joining us it's great to get a comprehensive overview of what's happening. i look forward to chatting later in the week. russian president vladimir putin has told his french and german counterparts he's open to talks on resuming grain shipments to the black sea imports. with macron and schulz, he said
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he's also williing to if sanctions are lifted ukrainian president volodymyr zelenskyy. >> translator: the sooner this war can be ended the better it will be for any nation, the sooner the food prices will stop because we'll be able to send our stocks to the world market which this year, by the way, it will still be less as russia mines fields and destroys machinery. to increase the dependency on other countries to make access to pressure, pressure in global politics >> serbia has secured a three-year natural gas deal with russia the serbian president called extremely favorable. the agreement is expected to be
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signed during the russian foreign minister's visit sergey lavrov to dbelgrade early next month. >> laid out in a press conference on sunday >> translator: that is certainly by far the best price in the whole of europe. what we agreed president putin and i is very good news for the citizens of serbia we will sign a three-year contract and another one-month contract that is a contract that suits the serbian side very well >> serbian president speaking there. ukraine says its forces are holding a heavy russian assault in the luhansk region as russia steps up its resources in a bid to take the city of er severodonetsk. the governor of luhansk told reporters the situation has become, quote, extremely escalated and officials have not
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yet been able to process casualty numbers ukraine's president zelenskyy has made his first public appearance outside of kyiv since the start of the invasion 32 months, as he visited troops in kharkiv. zelenskyy said he had fired the top officer for failing to prepare the defenses early in the war. adding that total cooperation between the military, police force and laurps was essential for ukraine to win the war germany has cleared the way for a essential 100 billion euro credit-based defense fund. this after the country's ruling coalition agreed with the opposition christian democrats to exempt the financing from the country's constitutional debt rate the added money would see germany meet its nato spending target of 2% of gdp. still ahead on the show, shanghai looks to exit a two-month lock down as the city's vice-mayor said
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unreasonable curves will be removed. wel veor nt.'lha me,ex
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welcome back to "street signs. i'm julianna tatelbaum, these are your headlines consumer and travel retail stocks leading the gains early read on the inflation comes in well above the forecast shares in siemens jump as the industrial giants entering the 8 million billion euro rail deal with egypt.the country's biggest deal ever. and beijing opens malls and subway stations while shanghai will end all restrictions by midweek after two months of lockdown in china's commercial capital. and brent crude touches $120 per barrel, as germany's economy minister warns resolve in europe is, quote, starting to crumble over a russian oil embargo deal. ♪
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let's get a check on markets. it's been a positive session for asian equities we've got overnight, the nikkei 2225 gaining more than 2%. the hong kong market has seen degains, 2% higher a lot of the optimism seems to be coming not only on the back of the positive hanover from wall street last week, but also on news that chinese authorities will be lifting some of those key covid restrictions on beijing and shanghai that provided a supportive backdrop china markets, specifically, let's get you a check. we saw the shanghai composite up
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0.6% the shengas well a broad-based rally taking place but the gains are concentrated in france. so, in is broad-based b but we're seeing particularly strong demands in luxury stocks cap 40 up 0.9% looking at the luxury stocks and shares up 4.5% we've got pandora, at the end of the board, up nearly 9%, the best performers in the stocks, hermes up 4% and incredibly smaung bid for the european luxury names. authorities out of shanghai will lift a host of covid restrictions starting june 1 as china's most popular city looks to end a two-month lockdown.
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the city's vice-mayor said unreasonable curbs will be lifted and ending those on districts and reopening malls. we have this report. >> we are having a bit of issue with sam's sound there, but is she was just detailing what we heard from chinese authorities, the overall takeaway being that they are taking the foot off the gas when it comes to those covid restrictions, and clearly, that is something some impact not only on trade in china but here in europe, those names most exposed to the china economy now on to monkeypox. the world health organization said the resurgence of the monkeypox pose a, quote, moderate risk to overall health.
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it could spread to groups at higher risk of disease in terms of children and those with long-term health conditions. they've reported cases of monkeypox in the last few days but no deaths from the disease have been reported so far. the professor of virology joins us now professor, thank you for being with us. the question that everybody is asking, how concerned should we be about monkeypox i think clearly everybody is on edge, given the covid pandemic you want to give your two cents, how concerned we should be about this disease >> i think we should investigate. i think we should take it seriously. and i think we should be concerned about the spread but this is not going to be a pandemic this is not covid-like and i think people should be reassured about this, too. >> what is concerning? and why has this captured the attention of experts like yourself >> it was completely unexpected.
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it was not unexpected that monkeypox was a disease which was ready to spread. it's the first time that it spread to over 20 countries at the same time. thisis also the first time tha we see a wideout break which seems to be sexually transmitted for the most part. so, these were a couple of firsts, that definitely captured the attention of virology worldwide. >> there are vaccines for monkeypox, is my understanding given that it is part of the smallpox family. talk to us about, you know, should this situation deteriorate from here, how would those vaccines be used and what kind of vaccination campaigns could we be looking at in a downside scenario >> there are different scenarios. there is a vaccine there are different vaccines there are third generation vaccines which are very safe and they work against monkeypox. although they were designed to be working against smallpox.
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smallpox in unity, also guards about monkeypox. i think the first deployment of the vaccines will be in health care workers that came into unprotected contact with monkeypox. and also close contact with patients of monkeypox they can be given prophylactically the vaccine. and maybe if this is more widespread epidemic, then more widespread vaccinations might be envisionable i think many countries are negotiating. and europe does it in a con concerted manner, with the vaccine manufacturer, or manufacturers, to develop the scenario, if this would become necessary. i don't think it will come so far. but it's better to be ready than just neglected >> in terms of the measures that should be taken right now, we saw belgium become the first country to introduce a mandatory
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quarantine for individuals infected with monkeypox. is this the right approach should countries be mandating quarantines for those affected >> i think isolation that is the term, isolation, for people who are infected is definitely a good idea not only that, they should not come into contact with companion animals that are rodents we do not want to get this into the rodent reservoir locally, then it can become an infection at that stage in the neighborhood and we don't want that isolation is a good idea even voluntary quarantine of high-risk contact seems to be a good idea. >> you know, it seems like it's difficult now, given the events of the last 2 1/2 years. how to treat something like this from a public health perspective. how to communicate about it. how to strike that balance between causing public alarm, but not being complacent, given
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the critique that so many experts have faced early on in the pandemic do you have a word on sort of how the communication is changed, as a result of the pandemic and how public health experts think about something like monkeypox now? >> i think it is very necessary that we state the facts but that also we state the uncertainties. more clearly, maybe, than we did with covid i also think that the population has become much more knowledgeable about virology and vireological components and that helps. and people are worried this might develop into a covid-type situation and the task of virologists and lawmakers is to reassure people this is not very likely to be the case. >> professor, thank you for joining us this morning. and helping us to understand what to make of the headlines, professor of virology, catholic
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university. >> coming up on the show, we turn our radar to gender and diversity in the uk environment. we've been tracking that struggle in that space and we're going to discuss, next
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♪ there are no points for second place tom cruise knows that for sure "top gun: maverick" stopped the u.s. box office with $124 million in takings making the 59-year-old actor best ever u.s. domestic debut. the ceo of imax told cnbc the movie business is going to rebound and confident that moviegoers will return >> the movie business is back, what this film will do is demand the demographic. for younger people who have felt invincible and put up the numbers. what's unique about this is how broad the audience is going to be when people get back and they see this movie, it's going to
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remind them that they want to go to the movies. and this proves that sitting on your couch is a very, very different experience >> i have to say, i saw "maverick" on an imax screen is and it was very definitely a different movie than watching on my couch for more on expectations check out the memorial day holiday weekend has proven to be chaotic this year with travelers dealing with more flight delays and price pressures. nbc's emilie ikeda has the story. >> reporter: amid bad weather and staffing shortages among the frustrated darryl berg who resorted to driving seven hours after delta cancelled the last leg of his flight >> i asked them at the service desk, why the flight was cancelled. they said, we don't have crew.
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>> reporter: are you worried about your trip home now >> oh, absolutely. >> reporter: the travel woes, a potential sign of what's to come, experts say. if demand remains high through the summer nearly 7 million taking to the skies so far this holiday weekend. that's up 25% from last year, shy of prepandemic numbers but airlines have thousands fewer employees than 2019. which means even small disruptions can have a rippling effect delta leads in cancellations this weekend, blaming bad weather and congested airspace, just days after announcing it's trimming summer flights by 2%. joining jetblue, spirit and alaska airlines and apparing ba to reduce reductions travelers stuck. >> i just want to get home, you know >> reporter: compounding frustrations, the average cost of a ticket nearly $400, a 28% increase from 2018
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steep jet fuel prices and surging demand but will that demand hold? >> at what point do people say, enough, i'm going to change my plans and not go anywhere. >> reporter: experts say book early, avoid checking bags and be flexible with your time line as summer travel takes off emilie ikeda, nbc news, new york i've been really looking forward to this segment all morning. hopefully, you will get something out of it, too the 350 company with record numbers going to women according to the latest surge of the heidrick and struggles alice, it's great to have you with us. a fascinating report i've had a chance to read through. outline for us, first off, how big the gap is, and at the board level, between men and women in the uk
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and what kind of progress has been made since the last update? >> lovely. thank you very much for having me here this morning we're delighted to launch this report today and as you say, thrilled, really, to see such traction in uk, on the topic of agenda overall, we're notices great movements, 54% in the report, board positions filled by women. that's showed real movement. >> what are the major barriers to getting more women appointed on board you know, conversations with companies and leadership, why is it such a struggle to get more women into board positions >> that's a great question we have the terrorist of working with many boards, many chief executives, really seeking to diversity their boards and i guess it's worth
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remembering, the purple of a diverse board is to assure the board can hold the executive team to account and in the executive decisions and represent the societies an communities at large the question about what's difficult, i think there are a few reasons. one is often that boards are seeking board members from some positional roots which are often underrepresented you know, often chief chief executive officers, cros and coo, that would be done of the reasons. >> that makes sense, perhaps getting people from nontraditional tracks in those seats to find more in that nature is this a breakdown across different sectors. which sectors are getting it right when it comes to board diversity and which still have a lot to do? >> yeah, that's a good question. we saw lots of differences in the report there's some very interesting data in terms of sexes, i think it varies, i think every sex is
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playing catch-up on this question perhaps we'd do better to report in things like consumers where you're customer-based and very in touch with consumers. and perhaps in the data, we see less diversity being achieved in technology, technical services those sectors have a little bit farther to go in ters of closing the gap. >> what about the finance sector you speak to a lot of leaders in finance, whether on the buy side or sell side, who talk about the difficulty in finding women at senior levels. they don't have as much of an issue finding junior roles but when it comes to executive and board level members, it becomes a lot more difficult how much progress has been made within the finance community and if there are any takeaways for those who are looking to put more women into those positions what would you say >> so, i think in finance, as with every sector, we see some progress in focus. and in places there's clearly
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more to be done. where we see boards doing well in the space, i think we really see them doing a few things well one, we see them, of course, receiving deeper into less experienced directors. and that helps in every type of diversity, whether in gender or ethnicity or any director of sorts. we see boards succeed -- the board members who haven't sat on a board or have less experience. or potentially come to a slightly different track so this year, we see in the report, a greater threat of crossing the street. expertise coming into the boardroom. for example in finance, you might see movement as being appointed. you have true finance and increasing numbers coming to other sexes bringing that multidirectional view to the boardroom and conversations at the board. >> alice, you've done a great job running us through the gender gap, what about in terms of ethnic diversity? what kind of gap are we looking at there, across the uk corporate space and what kind of
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progress has been made >> yes, it's a great question, so the ethnic diversity question is a little bit more difficult to answer for the uk plc, the data is less easy to find. and we don't have so much trend data, but clearly, in working with our clients in the boardrooms, we know ethnic diversity is becoming increasingly important and the data that we have, we see that the number of ethnic diverse board members in uk, the board seats have doubled, it looks like, since the previous years. it shows there's movement and there's more to do more data to be dug into and certainly more appointments to be made in that state in the coming years >> alice, thank you for for joining us and bringing this report report. alice breeden
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leader >> and we've got the cap 40 leading the gains up 7, it%. we've got luxury performing particularly well this morning boosting the french market and that seems to be largely on the back of the china story, with chinese authorities easing up on some of the key covid restrictions in beijing and shanghai potentially paving the way for some of those luxury stocks to see business return to normal ftse 100 up a third of a percent. dax, up. and the only major in the red, spanish market, i bex, down 9 basis points that's it for me we've got closure in the u.s. for the memorial day holiday, but we'll be back tomorrow with all of the our coverage. i'm julianna tatelbaum, stay tuned to cnbc.
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