>> the u.s. list it's a on flying in and out of israel. there is no sign of a breakthrough in cease-fire talks. er in tel aviv with the latest good ties to moscow in the wake of downing mh-17, we look at the prospect for european countries exposed to russia. and an 18 month high. that is the latest from chinese manufacturers boosting the government's chances of meeting its 2014 target.

welcome to "countdown." i am anna edwards. i am joined by mark barton and manus cranny. let's start with facebook. >> yes. profits are up. sales up. average ad prices up. shares up. average monthly users up. >> that is all you need to know. >> up, up, up. >> shares, record high, after-hours high. monthly active users. >> fantastic. watching?what are you >> to call themselves the 3-d experience country -- company.

20% of revenues in 3-d. take a car and great and 3d image. >> take a kitchen and create a 3-d image. >> yes. us talk about the numbers. i can tell you revenue rises by 7%. plan another acquisition. the plan is to double the revenue in the past five years. the data by acquisition. engineering software. exciting. that business has been under a bit of rusher in europe. these are the images you are seeing on the screen. they are doing another acquisition at 570 million euros

. it is the second quarter numbers . i will be talking to the chairman a little bit later. wonder what he has to to say about currency perhaps. >> this company is reporting earnings. that is certainly on my mind. 2.0 5 billion euros. euros.5 billions they are confirming their 2014 forecast. what will be really interesting to understand is how well the geopolitical developments we are seeing taking place, the first their national further sanctions from the eu, how is that having an impact on european business? we will explore that later. have recently been increasing their partnership. see that they have

significant closure to market in russia. that the number of facilities in russia. we will be speaking to the ceo who will be on limerick. we will discuss everything they have to say about the russian business as well. they will see sales slightly below levels. just getting some earnings from the swiss drug maker. frank's.lion with number --ticipating a earnings for the first half of these estimates, sales look like they have beaten estimates. 23 billion francs. this is a company that is focusing on it key drug. thee failures have ever first half of new cancer

medicines have propelled sales. will be looking at new data on two of its new breast cancer drugs. one of the sales is up by 200 and 76%. -- these are the drugs that investors are focusing on. he's under breast cancer drugs. the drugs that is performing very well. sales and earnings are beating estimates. the cut their forecast for the year. this is missing estimates and continuing to fall in the united states. the chief executive will be

joining guy johnson on "the pulse." >> u.s. regulators are lying u.s. carriers to resume flights do that israel international airport. there was a "countdown." n due to was a two ba the rocket fire. elliott is standing by. good morning. the faa is convinced it is safe to fly? >> that is what it is saying. the safety of passengers is always paramount. they have come to the conclusion as they are gathering all of the information necessary that it is bet this is effective from 11:45 p.m. eastern time. about an hour and 20 minutes ago. they will try to get to the get the european authorities to --

some have been fined here anyways such as british airways. israel international carrier says even though some managers trespassers might be switching airlines, it is to be affected by this faa ban. >> we are suffering from a lot of cancellations from tourists that may not come back in the future. the israelis are not counseling as much as tourists -- canceling as much as the tourists. as i say, some passengers are switching from other airlines. shares spiked yesterday. it will boost revenue to the tune of one million.

>> thanks a lot. our middle east editor in tel aviv. >> manufacturing is one of the biggest focuses of the day. on thosee the latest details. when you look through those numbers, it makes a pretty good reading, doesn't it? >> and makes a very good reading. it is an indication that china will proceed with its 7.5% gdp target for this year. gauges the factory output in china. here are the numbers. had an reading of 52 for the month of july. the final reading -- anything above 50 indicates expansion. what this shows is that the policy coronation you see in china, the stimulus that has been put in place appears to be

working. the expectation among top banks in hong kong is that the government will not need to put on major additional stimulus, including interest rate cuts. it would doom are calibrated interest cuts ahead if they need to. bill make sure that credit remains loose. we have seen the market reaction. it is trending at a three-month high. stocks rising to the highest level this year. that is the latest. >> thank you for that round. >> sales have been slow for this my the since 2013, but in store for much greater problems if sanctions are imposed. caroline hyde has the details. good morning, caroline. >> good morning. company that a few

months ago, they're saying that they are permitted to this country and are looking for organic growth and investing in manufacturing over there. also, acquisitions as well. there really are looking to continue to grow the market share. is that still that case? of course, it was predominantly dutch people. serioustics is becoming in the netherlands. clearly there he is concerned. many are saying enough is enough. of maneuver -- of difficult is a very line to walk, isn't it? tothey have been saying thate business strategy,

seems to be the focus to a large extent. as we look ahead, there are going to be tough questions about how much exposer. the political pressure seems to be mounting. >> on one side, you've got the politics. , russia'ser side economy is not going to be sanctionsthe current that will be imposed. currency in which -- remember, this is a fast-moving company. this is personal care. up, they willoes -- suddenly it will be that much more expensive.

have russian brands they have invested in particularly over there's. sales be faring? >> and they have lost one of their key executives, haven't they? >> yeah. the most probable unit. -- profitable unit. >> he will be replacing him. replaced byas been a 29 year company veteran. is this the next successor in line? he has been hiding. off --ve been selling >> right. [laughter]

u. the rag [laughter] that is the goal for many companies and they are in a situation in regards to russia. perhaps it is not appropriate to say that at the moment, but it is a dutch company. it is one of the main quotas. >> they have traditionally been very open to the world. >> what is the financial reality? >> we look at the amazing fact good netherlands is russia's third-largest trading partner. caroline, thank you. right up to the break, risk, what risk? the market trend.

we talked after the break. better sex. ♪ -- tghahat is next. ♪

>> welcome back to "countdown." i am anna edwards. we have mark barton and manus granny. >> eu leaders will show the companies and individuals to be blacklisted in the wake of the downed flight of mh-17.

racellion dollars was a from the banks after the u.s. announced its own sanctions -- ased things up to the u.s. announced its own sanctions. i haven't we seen more volatility in fx markets on the back of events in the last week in ukraine and in israel and gaza? a they really had to see calamity in the scale of 9/11. usually geopolitical risk have an impact. bywould have to be company economic slowdown and see risk related assets to come under sustained pressure. i could say nothing unexpected there. presumably, some of this will remain, especially case of russia and the west.

the escalation in tensions may persist as well. i doubt that there will be a sustained impact. if anything, it will linger. it could be an excuse, but nothing more. >> there is a lot of concern of what will happen as a result of the tensions with russia and whether that is due to sanctions are other factors. what role will the euro play here? time, the first crisis has been around for a while. is a longer-term impact on the eurozone, on the eu from the are the escalations on the tensions. there is geopolitical uncertainty.

i think that it will show that it will continue to deteriorate because of uncertainty that will happen with russia. added to that is obviously the impact the longer-term with the end result of the embargo that will have a direct impact on the euro zone. >> and germany? are diversifying. the u.s. could benefit as well. anything, in the process, he might be a negative impact on the eurozone wrote. >> -- eurozone growth. >> we had a couple of other issues. we've also have the chinese data. when you look at the chinese

story, does that balance of? growtherica and chinese balance what is happening in europe and germany? >> i would say to a degree. he does seem to be encouraging more risk buying. think origin to buy currencies despite geopolitical risk. which european slowdown could impact recovery again, i guess the thinking is that presumably if anything, it will bring forward more easy measures. it is still very entrenched. is the view that they are sharing.

it is the case that it opens the door for more action to unfold. that even if the fed start moving closer to the exit, the ecb actions could prop up assets. >> stay with us. we will hear mark carney's views on sterling and trade deficits expanded after exports. ♪

>> back with us is our guest from citigroup. mark carney was speaking yesterday. picking up a number of messages. one message could be that when rates to rise, it will rise gradually. the other message could be look, i am preparing you for rises. maybe not now, but they are coming sooner rather than later. is that what you took away? >> that has been the message for a while now. they suppress the market. the markets are so complacent. since then, markets got the message. in general, i would say the

change in tone for the first talkingrk carney was about the towns and the exports that was part of the speech. -- pounds and the exports that was part of the speech. mark carney really became the governor. could be the reason for them to buy some time. more appreciation on the delay. >> it we see sanctions from the eu on russia one of the involves access to the capital markets or to london in general, is that kind of any negative risk involved? been one of the reasons why the pound has been so resilient, especially against the euro.

it could be explained with the russian money flowing into the market. >> is that enough? that's not what is driving sterling. >> fx markets are driven by expectations. people hope that something will happen. -- itsufficient to put a is a fairly small amount. what i was getting at is that if that money were to stop, more money could come. it is said that they were considering their positions. they're looking to invest that money. speculating and could buy some property. if anything, i was thinking that would be a small driver. >> thanks a lot. see you next time.

stay with us. you're watching "countdown." ♪

>> welcome back to "countdown." i am manus cranny. the central bank and new zealand raised rates. if you're looking for irony, this isn't. new zealand dollar drops to almost 1%. that is the most in six months. the potential for significant the fall to go into a neutral mode or in terms of her reflection, we have had four rate hikes from the rba.

i like that from the world bank. let's switch across a look at the aussie dollar. three weeks highs. we have had good purchasing managers. fetid than estimated purchase managers. -- better than estimated purchase managers. talk fromf a rate australia -- manus.ks, >> these are the top headlines today. the plane went down in heavy rain. bloomberg the crash has them concerned about the deteriorating fundamentals. flights to and from israel were held due to rockets hitting

near the tel aviv airport. at least 31 airlines internationally canceled flights to israel. u.s. kerry say they could still -- u.s. officials say they can still cancel flight. people with knowledge of the matter say it could come this year. they say the financial authority wants to fast track the progress and speed up the settlement. >> today, the eu discussion sanctions, but it remains unclear how potent they will be. they you has continued its policy of inching forward and only threatening tier 3 sanctions. ryan chilcote is here. you were in brussels. where do we stand on this? we have been exploring these. >> yeah, i think inching forward

is a good way to put it. they're looking at proposals for threatening russia with tier 3 or sanctions. you have heard some of the ideas restricting the access of russian companies to european capital markets like the americans did. there were some other ideas. they are discussing those right now. these are early days. the ideas they will consider this and come up with a plan. we are in the draft stage. president putin, this is what we're threatening you with. you must comply or else. we are not at that stage yet. in terms of these blacklist, they'll come up with a blacklist. it will mostly target insurgents and people in the russian military for causing unrest in ukraine. late next week, possibly the week after that, another

blacklist. it will target people in putin's inner circle, friends and family. in the metaphoric sense. surely,- slowly and they are being more aggressive. >> it is easy to forget that fighting continues on the ground. we have pro-russian fighters shooting down two ukrainian fighter jets yesterday. what does that mean? >> the optics of that is not helpful for president putin. he's trying to encourage the rebels to de-escalate and sit down at the table. obviously the have been shooting down fighter jets, that runs contrary to what people are looking for president putin to do. now -- seven days west flight mh-17

shutdown. it will make people wonder what was this weapon that brought those planes down? was it the same technology that used to bring down that boeing? we know that it probably isn't. it was too fighter jets that was shot down at an altitude of 15,000 feet good at half the altitude of -- it was two but are just that was shot down on an altitude of 15,000 feet. that is half the altitude of the malaysia airlines flight. shoulder fired weapons are all over the place. in ukraine. it is easy for the rushes to argue they did not give them that weapon. when they were rating the stockpiles, they got it. the thought the other one might have been fired by another aircraft. their odyssey not been issued on themselves presumably. it -- they are obviously not going to shoot themselves

presumably. ukraine's a lot of things just like the russians, which is not always true. the ukrainians say a lot of things just like the russians, which is not always true. >> it is an example of the inlity of the paradigm shift how investors look at russia and the consequences, potential consequences for sentience. >> one is it is a beautiful example of self sanctioned. non-eu country doesn't have to follow the eu line. >> correct. aspect. is a pragmatic they took a big hit on their assets in russia. it down almost 10% in the first quarter. something like 2% in the first quarter. they have got a billion dollars.

ideologically, the support with the european union is doing. that is why they say there should be a crackdown. they want to be a part of that. this is self-motivated sanctioning. it is interesting. we haven't really seen those eu restrictions yet. from that long ways you could argue. maybe it will take until august or september to get there. norway has a lot of weight. maybe one country will come to a conclusion quicker. perhaps that is the reality. assets topect their take place in the autumn which is an interesting one. the ties which in that business and russia are extensive. profitable.

they saw a 13% jump in their sales in the oil and gas division. that is a division that has the ownership. that is a division that has a stake. that is the good part of the story unlike the example the problems they're having in the performance products and of which there are laying off summoning people. it looked like the deal was going to go sailing through. beforef electricians but it closes saiz -- politicians right before it closes say -- is the biggest gas user in germany? >> they use an awful lot of gas definitely. this unit we are talking about is the oil and gas division that is the biggest gas producer in germany. the germans are very

interconnected with the russians. that is one of the reasons they seem reluctant to really go aggressive like the united states. >> ryan, thank you. >> thankls a million. coming up, a solid second quarter. the ceo joins us exclusively from paris for discussion. ♪

>> acquisitions are in the air. europe is seeing an uptick in software company consolidation. one of those companies had result out this morning. we are joined exclusively by the ceo of dassualt systemes. the whole industry has had a fairly tough year peer you are an acquisitive company. summit what this acquisition is about? -- tell me what this accusation is about? -- tell me what this acquisition is all about? >> well, as you can imagine with

that increase digitization of all companies from the created product to the produced product and the cell audits, the logistic on the connection of all of the players is changing very rapidly. that is why we have made a decision to buy one of the leading technologies in the supply and business operation. i think it will expand our market. we are well known for product the creation, claims, you name it. these products are connecting all of those companies together and becoming very radical and that is why we are doing this move. >> you are probably the record percent to talk about of how to see the world. give me your view? how is the world holding up in a manufacturing sense? also looking at some of your

numbers, it numbers were quite weak according to some of the lines that i'm reading here. notice, there is growth in america. 15% in europe. it was astonishing for many observers. it is a significant number. manufacturing world is producing differently and more sustainable not only in volume, but also in innovation. thisis justifying transformation. i think we are at the beginning. we are not at the end of this process. >> where is the strongest sense that you get from the customers that you speak to in terms of

reality on capital expenditures? bring in your software is not a cheap experience, is it? as you, as long transform your business and are more competitive come investment gets a lot a return on investment. lever. the in this century, the products will not be done the same way. everyone is talking about manufacturing and smart products. we think about those companies and how to create those new experiences for the consumers, this is a profound transformation from the industry. we talked about it as a service. it is not the old manufacturing. transforming how the world is building itself in this

new world of interconnected mobility and interconnected centers. that is the driving force for the growth. what about the 3-d experience you prefer to? this is part of the business, some people say. where is the biggest opportunity in 3-d? is it 3-d printing? what is the next leap in that business for you? i think the next big thing is in marketing on sales using .ealistic expanses before you buy your product, you can use the virtual world to try it. >> wow.. companynounced a pasta

will be using a marketing program of what we call consumer experience. we have companies like proctor and gamble that our big clients. this world has a new type of marketing. audi city is powered by the software. >> one more question on the business. the entire business around the world is moving away from one off software sales to the subscription model. give me a sense of how the migration is going from your store, a loyal customer base to the subscription model? how is that doing? >> well, for us there is no transition to be done. of our revenue is already

subscription base. whether it is what we call subscription based because we have adopted this model for the last 20 years or whether it is in the cloud, it is for us the same financial model. we believe it is going to be seamless for us on additional possibility to reach a new type of customer because of the simplicity on the speed to take advantage on the return of investment. systemes, of dassualt thank you for joining us. >> time for company news. reassessing holdings in russia since the european union considers expanding sanctions against the country. this is the world's biggest sovereign wealth fund. member.t an eu

it could reflect the changing geopolitical climate. at&t missed earnings estimates as our customers start paying for devices with installment plans. the second largest u.s. wireless carrier posted a profit of $.62 per share. sales rose more than 33 billion dollars. the company added more than one million monthly wireless subscribers. billions.mpany spends moody's is the first of the top credit ratings firms to lower vodafone's rating. >> with the latest cease-fire attempts, the conflict in gaza shows no signs of it ending. they are reeling from the flight

bans. other businesses appear to be surprisingly resilient. how thek to see fighting is affecting their business. [sirens] >> just another normal day. [sirens] daily routine. >> when they're not running to cover, workers are about eight kilometers north of gaza help sell 600 million festival carts a year. >> while we were huddled in the him shelter a short while ago, there is this nursery. this is what is left of a missile from israel's iron dome missile defense system. it crashed through the roof right here, knocking out a tray of budding pepper plants. all that is left is this.

>> it is business as usual. that doesn't mean they are not affected. every time we hear the sirens, people start to run to the shelters. a lot of the times come it is running and running back to work. andave to stop the machines run them again. there was a lot of damage to recover. there are some that have to be fixed or replaced after each missile. >> further south, men and women are making solar water heaters. gaza is 4.5 kilometers west. a quarter of the workers are absent and called out to the army or at home caring for kids who summer camps cannot open because of the fighting. the ceo says that factory has not closed in 40 years. it is not about to start now. >> the noise is terrible.

-- the customers are not interested in whether there is a war here are not. >> the war shows no signs of ending soon. [sirens] >> this is the third time the sirens have gone off since we have been here. they seek shelter. it,eli companies cannot nor but they carry on regardless. bloomberg, southern israel. >> 6:52 a.m. in london. mcnabb, a battle for the ages. -- coming up, a battle for the ages. who has more fun? ♪

>> welcome back to "countdown." tepper look at the newspapers. let's start with manus. >> you know what, i think this just reflects it really is a poignant image. 7 fromere killed in mh-1 netherlands. 040 coffins arriving back. it was a day of mourning nationally in the netherlands yesterday. >> i'm looking at a story about

putin's daughter. meet maria putin. this is the only photograph i have seen of her. i have been watching him for many years. he has been careful to make sure they stay out of the media. she was in the dutch media. dutch radio show says she should get kicked out. they say she should not be here. putin provided that missile that brought down mh-17. agrees -- who is having more fun? families or singles? [laughter] when you're on holiday, are you involved in magazines or -- [laughter] are you playing or are you reading on a holiday? playing or reading? >> reading.

>> see you on the other side of the break. ♪

>> back in flight. the u.s. list it's been -- lifts its ban on airline flights to israel. ties to moscow. flight, downing of the we will look at prospects for companies exposed to russia. prom swaphe gas closing in on him -- in the fall. and an18 on the fly -- 18 month high.

work him back to the second hour of "countdown." lots of breaking news. >> the fear was, this company does not have a mobile strategy. where are the revenues from mobile? of ads sales come from mobile. that is up from 59%. as i said, that is from major -- as is from negligible. 38 dollars.e was in extended trading, it flourished at $75. the metrics are amazing.

add price. monthly active users. one point three 2 billion. purdy, those users are on those usersper day, are on 40 minutes. >> remarkable. manus, are you on 40 minutes? we are going to keep an eye on data. managers purchasing surveys, we market are going to look at it through the prism of fx. is keen to see something negative in the numbers so they can jump on -- the people i'm talking to say there's a real focus on the german numbers. i know are colleague hands will take a deeper look at that.

we have spanish unemployment numbers as well. the art procedure drop the services and manufacturing numbers will be remarkable. 1%t is less than the estimated. spain, on the other hand, will grow at twice the rate. they will grow at twice the rate as france. there is irony. the representation of everything that is going wrong in france and everything that is being changed in spain. >> we will get spanish employment later today. i'm going to be spoken me -- focusing on bff. it is an anglo dutch company. she will be speaking about the dutch-russian angle. i will tell you about the numbers. mrs..are a range of

underlying sales growth, three point 8%. analysts were estimating 4.2%. volume growth also missed. estimating -- the company says it is focused on, marginady core operating is improving. they are expanding their personal care business. it is the biggest, most profitable division. they are selling the slower growth food brands like slim , manus's favorite sauce. personal head of the care business has said, see you later. saying, who is next? who's next in line for the throne? a castros to much of

of aanus is too much ao gastromic genius. >> i am there squashing the tomatoes. to paulll be speaking pohlman. and all the geopolitical turmoil that could hit this business. one of those is be afs. -- bafs. swap, which ist an interesting topic to talk to the ceo about. this will be during this hour of countdown. aremore on how is this is being affected, let's bring in ryan. this is a been you are watching closely? at swapare keen to cbs

happen. it gives them access to siberian gas fields. the problem with the deal -- nobody is opposed to a german company getting access to siberian fields. intoturn, they would get the storage and distribution business. to 100%. a lot of concern now in germany that was not there six months ago before the crisis. even more dependent. the keys to distribution. things like stories. getting pushed back. a 13% jump in sales. it is the gem right now in their crown. they are having problems elsewhere. that is why they are keen to

develop it. they have ran into these geopolitical opposition. not just from the green party, for example, but angela merkel's own party. >> what about unilever? this is where -- you said this earlier -- things were so raw at the moment. the dutch are dealing with the ma of mourningau their dead. but they have a huge company with exposure to russia. there are two sides to that coin. what will the dutch think about this company being so active in the russian space? i don't have a lot to add their. -- there. the more interesting part is how well the russians react. increasinglyrlands becoming one of the big backers,

ratcheting up the sanctions. there is a process called substitution where they want russian goods to replace foreign good. they -- you would think something like fast-moving consumer goods would fall under that category. categoryere is a whole of food security. they want to produce more of the things they can produce on their own soil. with their own national backers. free ofcan be sanctions. reduce their threat of inflation because even this morning, we saw the ruble fall. every time it falls, imported goods go up. concernn is the biggest president putin has right now. his electorate is pensioners. when their pensions rise in line they have ton -- rise in line with inflation or he is in trouble. >> 86% approval rating.

that is not just popular. post in the veracity and authenticity of those polls. let's assume it is somewhere north of 25%. he is sitting pretty. ukraine andpened in russia's position is surprisingly, for some, bright -- by popular. surprisingly, for some, quite popular. >> that easyjet forecast includes what the russia and easyjet situation will have. >> let's stay with the subject. the existing measures taking their toll. 70 -- $47 million was the phrase. warning that sanctions could hurt europe.

bloomberg us columnist. g viewbloomber columnist. has vladimir putin tilde russia's brand?? >> for some, he has. russians living in the west. people in the tech industry and banking. they are feeling the effect of what putin is doing in ukraine. their western friends are treating them differently. themare looking at askance. some of these people are worried about what will happen to the image the word russian and russia itself projects to the world. column on bloomberg view, er in ad max, a partn

legendary the -- venture capital firm. he is worried that calling yourself russian is going to hurt your business in the tech industry. concerns.legitimate >> what can putin do to reverse this tide of public opinion? he has to be seen doing something to stop the war. which, for now, most of the world believes he is sponsoring. armenian rebels in ukraine. the rebels in ukraine. russian volunteers. the he actually stops

support and the world sees it, russia is going to lose some of that stigma. getting because of the ukraine crisis. >> you have also written a piece. mh 17id the downing of will not end the ukraine conflict. the most powerful western countries didn't have enough citizens on board. what did you mean by that? -- imagine that plane filled with americans. with people from the u.k. if there were more than four germans on the flight, germany might have been more russia stopmanding

fueling the war. the statements of chancellor angela merkel about the need for harsher sanctions against russia would turn into something more than statements. now it is -- most of the victims were dutch. holland is a major trading partner russia. has one royal dutch shell. enormous lobbying power in holland. the countryiggest, with the second-biggest a of victims is malaysia. malaysia is a country with an anti-western policy. malaysians were willing to cooperate with rebels to get the bodies back and the black boxes.

their tactic was more successful than anything the europeans did. they are forgot the rebels to release the bodies and the black boxes. ot they actually g rebels to release the bodies and the black boxes. maybe these were the wrong countries to have suffered for more per strong russia. british -- >> thank you for joining us. i recommend you read his pieces. inat insight into events russia and ukraine. a sober and depressing thought, it depends who on the plane would have the most influence, geopolitically. they are suggesting it is

geopolitically unfortunate that they were not germans. the germans would have been doing more to influence things. the idea that russians and russiansalley -- the an investorvalley, has wanted to disassociate himself with russia for years. i have another acquaintance who is behind russian standard fun,. -- vodka. >> the cofounder of google has disassociated himself. nigeria with snow? it has happened. >> imagine russian standard, the vodka. a big seller in ukraine and poland. you have to be wondering right

now. quoted and he analyst. you will never hear russian billionaires talking about this publicly. that would be going against the kremlin. and insight to the conflict between hamas and israel. how are companies coping? live in tel aviv to find out. ♪ >> with the latest cease-fire

attempts in tattered, the conflict in gaza shows no sign of ending. the tourism industry is reeling from flight bans. areother businesses surprisingly resilient. our correspondent visited companies to see how the fighting is affecting the business. [sirens] >> just another normal day. this is our daily routine. >> when they are not running for sell 600rkers help

million vegetable plants a year. >> a rocket actually hit this nursery. this is what is left of a missile from the iron dome missile defense system. it crashed through the roof knocking of atria pepper plants -- a tray of pepper plants. >> he says it is business as usual. that does not mean they are not affected. >> every time you have the sirens, people run to the shelters. to stop all the machines around them. there was a lot of damage to the cover of the greenhouse. that had to be fixed. replaced after each missile or shrapnel hit it. >> further south, men and women

are making solar water heaters. just 4.5 kilometers west. a quarter of the workers are absent, called up to the army or caring for kids. the factory has not closed in 40 years and is not about to start now. >> the situation is not a pleasure. the customers -- in australia and the u.s. are not interested in the war. >> the war shows no sign of ending soon. this is the third time the sirens have gone since we have been year. heading to our third shelter. >> companies cannot ignore it but the carry on regardless. 7:21 in london.

chemical's leading company is reporting results. joining us live from germany is the ceo. think you for joining us. if i could ask you about your gazproms on the asset swap. how confident are you that it will take place at all? 100% confident? can you give us any clues? confident. everything is in place. some legal preparations we have do do internally have to be undertaken. this is happening in the fall of the year, not on july 1 as previously announced. >> is there a chance anything of a political nature could sway this? thought this from happening either at a national level or

pan eu level? >> the deal has been approved by the european union and the german government last year. we increased the share of our partner from 50% to 100%. zprom is dealing any german gas market area they have done this for years and a responsible way. i see no way -- reason they should change their behavior in the future. >> would further sanctions be a bad idea? given what you have said about the relationship between gazprom any german economy? we have a voiced our concerns about the effectiveness of sanctions. is up to politicians to decide what they want to do, and then we will implement it. >> what exposure do you have to

the russian market right now? how do you see that changing? exposure, the relationship between your business and russia, will it intensify or lesson as we look ahead? nothe russian economy does row, and our business does not grow. more importantly, our business has dropped a bit. we have a lot of good agricultural businesses in that country. a quickt foresee recovery on the chemical side. on the oil and gas side, we have seen no effect yet on the political races. -- crisis. >> let's talk about how you see the world at the moment. point of view. talk about your concerns for a slower global growth outlook. we have had a

relatively solid second quarter. able to-- we were improve profits by 10%. sales went up as well. what is more concerning is the currency situation, a drag on the topline and bottom-line. it looks as if this will continue through the rest of the year. our goal is to achieve a better result than 2013. from today's or the view is more challenging than six months ago -- from today's point of view is more challenging than six months ago. >> where are the biggest headwinds coming from? for our business, we saw solid growth in north america. lagging behind. i do not see a quick recovery and south america. asia has been good for us. we have seen double-digit growth in china.

a slight see improvement. frankly, this is not really an acceleration. our historyncern in is prices are weak -- in our industry is prices are weak. >> it seems the oil business has been doing better than analysts had expected. is this because of changes to the libya business? >> libya is still not able to export oil. production, and there was what we call a lifting in the second quarter. we had a good guess trading business in the second quarter. error norwegian assets are producing at a high level. >> take you very much for joining us. we appreciate your time. the ceo of basf.

>> that will do it for this part of the program. what a comeback, we will hear from unilever. 726 in london. ♪

>> welcome back to "countdown." let's turn to unilever's results. the chief executive is joining us. with caroline i'd. take away -- with caroline hyde. take it away. increase in underlying sales. it just missing analysts

estimates. joining me now, chief executive -- can we kick off with your russian growth story? it was only a month ago you said you were committed to the country and still investing. my heart goes out to the fact that you will -- are dutch. shooting is impacting the netherlands. are you still committed to russia? >> first of all, my sensibilities go out to my -- to the families and victims of this tragedy. it is a reminder that we need to get the political leaders in the world to step up and have solutions to end the geopolitical conflicts you now see in many parts of the world. the people suffer, and is not easy for business.

we have been around for hundreds of years and we will continue to be around for hundreds of years. we will focus on the people anywhere in the world and making their lives better. many become flicks you see have their roots -- many of the conflicts you see have their roots in poverty and exclusion. that weto be sure continue to help these economies to better. that will be the main contribution we can make to end the conflicts. >> you want european politicians to step up. do you want to see more sanctions? he went the netherlands or u.k. to be leading? we see too many conflicts into many parts of the world. rise our leaders can to the challenge and put a global governance system in place.

>> will you not see your business impacted -- would you feel the political pressure, the measure from the people at home in the netherlands saying they do not want to see you invest in an economy such as russia? because we are there, we provide basic arts to the bottom of the pyramid. people get aing fe that we can make a contribution to read we tend to work hard on finding solutions, be it on climate change or food security, that could lead to the benefit of everybody. we are talking about long-term solutions. >> how worried are you about the currency effects you might see? we have seen a big hit. 400 million euros. what about the russian ruble? are you expecting that to weaken further? >> we see global gdp levels that

have come down. we have a hard time growing the global economy and creating jobs. increased attention because of the geopolitical conflicts. currencies weakening in many parts of the world. we have seen it in india and indonesia. some of that you see reflected in our results. despite all the headwinds, which are not easy for businesses to grown ahead ofve markets. 60% of our this is growing and we are seized. you, are you is committed to russia as you were last month? we are committed to grow our business everywhere where we can

help the people. that is important for us. there's no reason for us to say we are not going to -- we have long-term times in every country including russia. they are not changing right now. say of yourou growth within the developed markets -- europe seems to be stagnant -- are you as focused on the emerging-market growth, whether it be in asia -- you see that sort of concern easing? >> we do the right thing for the long term for this company. puttingbout six years in competitive and profitable growth. most of the rope -- growth is an emerging markets. soon we will have 80% of the world population in emerging markets. well the markets may not give us all be growth we were expecting,

in the need to make structural reforms to get the markets to grow with the levels that are needed to create employment and improvement in the quality of life, it is a significantly faster growing world than europe or the u.s. has ambined a basket growth of 5%. we are growing 7% in those markets. that is why we are building share. >> you talk about leaders meeting to step up to the plate. you feel it is businesses responsibility to push forward political change? ofding the charge in terms driving sanctions against russia? in emerging markets to drive structural change? >> the world has become interdependent. on issues like climate change. we have open borders. lifthas allowed us to

able out of poverty, but it has made global governance more difficult. many be institutions are from the bretton woods times. we have not adapted that quickly. business tends to be more global. i think we all need to help each other. the issues of climate change and poverty alleviation and hunger -- issues of such dimension they can be solved but need to be so the by responsible people working together, including business. >> do you feel the businesses such as your own, shell, heineken should be leading special leaning on the european leaders to act quicker when it comes to russia? >> we work together on many of the issues. one is getting out of the geopolitical complex. itng best conflicts, be

ukraine. best the issues of the middle east or africa, you can trace that back to climate change. there are drugs where people do not have access to food. when people are starving, they become desperate. we saw that in the arab spring. .e see it in central africa the middle east. all the refugees coming to syria. hard toto work very attack some of these issues. we have a unique opportunity. global climate change agreement. this is the year where we can put in the new sustainable development goals. those are the best chances we have globally to create a better world for all. as the root of many of these complex. business has a role to play.

. take that seriously we cannot be of this size and magnitude and walk away from some of these responsibilities. victor frankel said when they the statue ofld liberty, they forgot to build the statue of response ability. i agree. >> many have discussed what your secession might look like. who might take your place. how much has it upset you personally -- what is the plan with alan? my tbd designate -- my tbd designate? he be the designate? >> we are very pleased. at the same time, we have spent a lot of time building a deep talented bench. we have a lot of people in the company. a greatortunate he has

track record and is taking the important job of leading the personal care unit. he will do very well. we are blessed with a lot of good leaders and the company. otherwise, i could not do my job. we have seen 3.8% increase in sales. i the second half would see an improvement. do stand by the talent pool? >> we don't run our business versus analysts expectations. we run it against the real economy. we think it is a good performance in this market thanks to the leadership team we talked about. the bottom in

terms of what we can expect short of disasters. typhoons or hurricanes. what you have just alluded to in the ukraine. we could see the second half of this year slightly improve on the first half. . it will be a slow recovery. if you look at countries like india, the growth had slowed it down to 3.4 -- 3%-4%. not have a magic wand. it will take a few years before the structural reforms are put in place. brazil, they will have to make structural reforms but it will take a few years. we think we are in the bottom of the curve. >> if ukraine continues as it is? >> ukraine, i'm talking about global members. that is a small part of it. i hope for the people of the ukraine and the people in the world that we will soon see a better situation be read --

better situation. >> the chief executive of unilever talking about the events that happened. the effect on the dutch people. what we need to see leadership from the european leaders. handing things back to you in the studio. ownpeaking to our very caroline hyde. telling us politicians need to step up to and complex. we all need to work to and step up to end conflicts. we only do work to end conflicts. these are the top headlines. for a crash in taiwan is 48.

it went down in heavy rain. and analyst tells bloomberg be u.s. -- the crash -- regulators have lifted bans on flights to and from israel. all flights were halted after a rocket hit near the tel aviv airport. that ban was extended. at least 31 airlines canceled flights to israel. they couldrs say still cancel flights, even though the ban has lifted. and britain's regulators are said to be closer to a settlement with a group of banks. people with knowledge of the matter say a deal could come this year. the ecb financial conflict -- they say the financial conflict authority could fast-track the program. and the commonwealth games in glasgow.

about a billion viewers from across the commonwealth tune in to watch the opening ceremony. along with 14,000 spectators. i gather there was a rendition by the former winner of britain's got talent. it -- andthere enormous loch ness monster. it had a great sense of humor, i read. let's take a break. 7:44. easyjet sales are up. talking about the geopolitical events happening around the world and how bad they are impacting european business. ♪

>> 7:47 in london. easyjet revealed sales rose. the budget carrier gave its outlook. terry lundgren is here.

how did they see the year painting out? they are positive compared to last year. the low end of their range is 14% better than last year. one has to wonder if they are being cautious, giving that they have flights to tel aviv. aw an increase in load factors. a strong summer. everyone was wondering how the summer would pan out. wondering, is this going to be too much? is it owing to push down prices? you mentioned the flight to tel aviv and moscow. what is the sense about how concerned they are about their businesses to those locations? >> i was in amsterdam last week. i was speaking to carolyn about that.

she was pragmatic about iot. she said, we will deal with it as it goes on. she was positive about their customer base in moscow. they are probably over there. >> are they picking up a lot of business focus in moscow? theysolutely. everywhere are flying in europe, they are focusing on this business. i have used them a couple of times and have had to change tickets. it is not as gruesome as other airlines. >> that is a posh ticket. >> i had a basic ticket. it i had a normal, basic ticket. >> not very often. i told you about her plans in terms of geographic locations.

they are recruiting a new base. what does that say to you about the strategy? is that following o'leary? leading --d say, >> he says, follows. what is the business say? out of have flown amsterdam for years. now they are choosing it as a base. this is the klm air france stronghold. she says, we are competing but it it is healthy competition. they have different connections and roots. >> they are quite, mentoring. -- quite complementary. >> they have a healthy respect for each other. a very healthy respect. >> thank you. >> thanks for that. you are looking of pictures of a

live shot. i wonder what the weather is like. do we have a picture? and we go. a beautiful picture. it is a bright morning. british. -- brightish. are indicated lower. i will tell you whether the equity markets are in east suite -- are in a sweet spot or not. stay with us. ♪ >> any these companies in

russia, they are global. if the u.s. treasury says, we're going to restrict in u.s. dollars, it is a big problem. >> mark mobius speaking to colleagues in asia. in terms of equity markets, they are antiquated -- indicated lower. is there a sweet spot? and in regards to russia, he said it is compelling to read this conflict will be done. as conflict will be done in

a year or two. the financial markets have to interpret and it best react. you were nowhere near a reaction to something as significant geopolitically. for example, 9/11. how to deal with banks which -- remember the awesome when lehman's went bust? journalists would call me and say, all what is going to happen next? could be done. when they talk about a lack of volatility, this is a very -- the very image of what a lack looks like. rescinded earlier this week. 30% --the fix go up by market but by 30%? >> that was a significant move.

>> i will do spanish unemployment. >> eurozone pmi's. >> eurodollar trading lower. that is it for us. join us again for tomorrow morning. "on the move" is next. ♪

>> we're waiting for data. europeaning to see companies this morning? to the storysed and what is happening. let's run you through what we are getting. let's start with you. >> fighting continues. the cease-fire remains elusive.

administration is here. it has been over to you. >> it is behind closed doors today and they have some sanctions. at what is a look happening. over to you. >> reacting to challenges posed surehe tells us that he is that it is taking place. for politicians to do more. back to you. >> thank you very the data we were talking about. through whatn you is happening. the manufacturing number is here. 47.6.