this morning. ahead of the open, ftse futures lower by three points. straight to friday's trading session. were pointing higher. it looked like we were heading to a fourth day of games. like the majority of markets are pointing higher. you can see ftse 100 up about 2/10 of a percent. the cac 40 is up by 3/10 of a percent. we are still waiting for them to open. i will take you to some of the main stocks.

if we have a look at what we were watching, we have so many earnings this morning. it has been the same all week. this week has been about earnings. the highest quarterly profit since 2012. the talked about overhauling the investment bank. lloyd's is britain's biggest mortgage lender. this heading down. it also said it would consider a buyback.dend airbus is up over 4%. earnings were beat because of higher deliveries. i want to show you the stoxx

600. let's see how that is trading. heading for the biggest monthly gain since february. basically profit growth in europe is outpacing the u.s. for the first time since 2008. this is what we have for those earnings. dealmaking is on course for a record quarter. a gauge tracking fear in equity markets. we saw this month the biggest five-day drop this year for the stoxx 600. lifting the stoxx 600 for a monthly gain. let's move on. the dax is also higher by a 10th

of 1%. >> you are talking about monthly gains. we are talking about monthly losses. the shanghai composite expected to post its biggest monthly loss since 2009, so six years. the shanghai composite is down by 1%. they had that intervention over the course of july. it hasn't been enough to stop it. we had a big plunge on monday. we had a bit of a rebound on wednesday. the shanghai composite is the worst performing market this month. we are seeing more gains in hong kong. down bye was weighed disappointing earnings. some good things coming through.

of earnings as well. particularly in japan. the nikkei up by a third of 1%. up i about half of 1%. i want to show you this one month graph. this is when the intervention started to come through. we saw an 18% gain. the shanghai composite down 14 point in the month of july. the biggest monthly drop since august, 2009. it has been a month investors would rather forget. decent month. we will break it down for the next 60 minutes.

with the exception of bp, which posted its worst profit in a decade, they have beaten expectations. down 65% from a year earlier. we have been speaking with the ceo about the results. >> we attack the costs very early a couple years back, so you can see from our numbers that it is 41% lower in the comparable quarter last year. we have initiated a very significant program that started in 2014. of deliveringead the savings program for 2015.

i think the idea is not only to whether the current storm. it is also fundamentally took him out of a stronger company once we have better development on the pricing side. >> can you update us on talks with shell? yesterday, and he suggested regulatory clearances were going quite well. things were going to be ahead of schedule. do you think this will close ahead of schedule? >> we are progressing well. areas for thekey team. that is to satisfy the regulatory approval. the second part is the planned integration processes. .e have put together a team

the process is going very well. >> dallas anna edwards. joining us for more is philip. let's start with you. earnings,k at the what is the top line? we will get to whether shell has overpaid or underpaid. bythey managed to increase 90%, basically driven by brazil and australia. many of the others also showed they are also cutting on their cost. they are laying off people. they are raising production.

improving costre efficiency. >> you provide us with a big document that breaks down your thoughts. the losers are pretty obvious. is there an opportunity now? >> i think it is way too early. let's just assume they settle into the 40's, which i think is reasonable. assume the trade is plus or -$50 a barrel. in thet see a rebound oil price. that has negative implications for a number of areas. first of all the high cost areas like the north sea and alaska. it has negative implications.

it is negative for the shale industry. financial accidents is going to be default rates. they have issued high-yield bonds. we are going to see further cutbacks and the major losers are going to be those areas losing money with oil prices below 50. >> if it's not time to go bottom fishing yet, is it really time to make the consolidation yet? the lake consolidation we have bp.hell and was it too early to make the move shell made? about increasing so a combined

company would be the biggest producer in the world. company no other gas for sale. nobody is going to buy gas from it. consolidation is going to be more in north america than europe and among the majors. >> yesterday i had the same conversation. it makes sense. if i am an investor i am looking at what they paid a couple months ago. are we still thinking maybe they are paying too much for this company? >> it really depends. has an influence on the gas price as well. we have iran very likely returning to the world stage. have two point 6 million

barrels of oil production. they might be able to increase it by another million over the year. there is definitely pressure. whether youcide think it is good enough. >> as i look back on the week, profit has the kind substantially. they have beaten expectations. they are bailing out. can refining keep on bailing them out? >> i think the answer is probably yes. there is a theme that oil prices stay at current levels or slightly lower. cost cutting and capital management is going to be the order of the day. i think expectations -- you keep saying they have been beating the expectation. i think the expectations were so

relatively good results compared with expectations. >> the reality is there was still a profit decline of 65% from a year earlier. thank you very much for joining us this morning. the senior adviser is going to stay with us throughout the morning. global lowflation, consumer price gains in japan still hovering around zero. we break down the numbers later this morning. was her effect is right? will the imf pullout of the greek bailout. greece back on market radar. we will talk about it in about 15 minutes time. and then $4 billion is not enough for facebook investors. we bring back the week earnings.

>> good morning, and welcome back. date ont you up to where stocks are trading. the ftse 100 trading higher. the dax also higher by about seven points. as we wrap up the month of july, sinceoxx 600 up about 4%

february. sincerst month in china 2009. it has been that bad. check it out. down by 2/10 of 1%. euro sterling did drop below 70 pence. brent crude down by 1%. gold glover by half of 1%. the worst month since june of 2013. markets,oss the equity the commodity markets. a bit of stocks to watch this morning. >> basically the highest quarterly profit since 2012. that is why we are seeing the

stock move higher today. this comes after yesterday talks about overhauling the investment bank. banks in general have been conjured beating the most to the earnings -- contributing the most to the earnings. airbus is up as well. 15% gain in second-quarter profit because of higher delivery of airliners. used ong the workhorse the short-haul flights. that stock is moving higher. these stocks are two of the biggest gainers today. i want to move to one of the biggest losers. intercontinental hotels. this week has the in largely about earnings but also m&a activity. this stock down after it said it is not in talks for a merger.

that was reported by the financial times. it was denied yesterday. we have seen that stock drop this morning. watchy are the stocks to this morning. let's get you up to speed. in athens, representatives will meet with the greek prine it -- greek finance minister. this is the first time a greek finance minister has met with the institution since syriza swept to power. deutsche bank is trying to the transcripts left out of disclosures to regulators during a probe in interest rate rigging. told regulators a software glitch caused one of the systems to fail as far back as 2005. deutsch banking group says it will consider paying special dividends in share i backs after profit fell.

britain's biggest mortgage lender will pay a dividend. on to japan, no respect for the bank of japan's governor kuroda as he struggles to hit the targets. we are joined by the chief economist. great to have you with us. first, i want you to help me. which gauge do i look at to really gauge what is happening with japanese inflation. looking at one thing. now they seem to be looking at another. where are we at in terms of ?apanese inflation

>> it is neither existent or nonexistent. hasink a banal makes abenomicsfailed -- has basically failed. inflation remains very flat. do you think the economy is actually going great? could we see a decline when we get those figures? >> yes, zero growth, even negative growth. but march was better than expected. it evens out. economy is doing ok. the growth is more or less normal. >> you and i can go back and forth on the debate. we could really talk about whether japan was doing that well. discussion hasof

to be the politics. when i look at the politics of japan, it seems to be all about the military. to theget these bills government, but can he get them past the people of japan? what are the consequences of what prime minister abe is trying to do? >> as for the security bill, i am certain the prime minister can get the bill through, even with opposition from the popular side of the population. he may be losing all his capital on the bill, so he may have nothing left. i don't think the prime minister can implement any more structural reforms. >> tell me. how long before i wake up, come into the city of london, and see

a big red flashing headline that smells out the end of -- spells out the end of a bana -- abenomics? >> he could be defeated. very close to the expiration did -- date. jonathan: what does the bank of japan do? >> they can no longer maintain the time limit. the boj governor kuroda started implementing.s now 2015 is going. he will probably not make it. at some point i think governor kuroda will have to give up

putting a time limit on the inflation target. >> thank you for joining us. parker is still with us. you were in japan a couple weeks ago. we are not talking about inflation. we are talking about a mystery bill. is that what everyone is talking about? >> i was surprised. the economics and political debate is very little about economics and a huge focus on politics and serious concern about whether abe will survive. i think he will. would be surprised if we get a change in government in japan. i think the position is strong. the military bill is extremely controversial and is very much the focus of debate in tokyo at the moment. >> it is hitting him in the polls. why is that?

>> i think the markets are focusing on is the end going to stabilize close to 125. i think volatility will be very low. the other focus is to what extent is the economy generating sustainable growth. growth is close to 4%. the second quarter is going to come out close to zero. i think annualized growth comes out close to one and a half or 2%. at the qe continues moment. i think the policy may change. for the rest of 2015 it won't change. it is very confusing. we have structural reforms. some are being implemented. some are out of the hands of the japanese government. i think we will see positive progress.

it is not just japan. interesting is the improvement in japanese corporate government and the undervaluation of the yen feeding through two good corporate earnings numbers. >> let's talk about that. everyone will go long dollar yen. the smart money sits in front of me, and they say the culture is changing. going to put shareholders first. is that happening? are you seeing it feed into stronger valuations? >> it is happening. is that currently discounted? the right strategy over the last year has been long on nikkei but hedge it. i think we are at the end game. the volatility will fall. i think we will make gains, but

the extent of the gains is going to be very small. a lot of the good news is discounted and elevated by earnings ratio. abenomics fails, what does the boj do? >> i think that is going to be a huge problem. possible in 2016 or 2017. then you have to be very careful. >> he is going to stay with us. coming up, we are going to talk greece and the imf. will they pull the plug on the greek they'll out? the imf stands firm. the troika meets the finance minister in athens. we look ahead at what is next for greece. ♪

jonathan: good morning and welcome back to "on the move." 30 minutes into the trading day. let's bring you a picture of the equity markets. the ftse 100 up by 0.1%. the dax also higher this morning, up 0.25%. the shanghai composite closing lower by 1.13%. an ugly month. one of the worst months for the shanghai composite since 2009. check out the fx markets. $1.55.nd, you buy me a weaker pound this morning. euro-sterling around 70 pence.

a stronger euro against the pound. up by 0.25%. gold trading at a 2010 low. the worst month since june 2013. that was the taper tantrum month. it has been an ugly month for gold. brent crude down almost one full percentage point. they are the early market moves. let's get the latest on greece. for the first time since a result of power, the troika will get to meet a cabinet member, the greek finance minister welcomed representatives from the ecb, imf, and eu to his office. in washington, the imf has reiterated its stance in the greek crisis. no debt restructuring, no bailout. let's get to hans nichols. prime minister tsipras, what has he been put up against here? hans: he had a challenge in his

own party. the initial negative vote was 39 votes against it, then it dropped to 36. he basically called his challengers' bluff. they are not going to have a vote on sunday. the deal will become. hopefully the 86 billion the will be cut. they have another challenge. the international monetary fund. unless there is substantial debt reduction, the imf won't participate in a third bailout. in some ways, yanis varoufakis understood the imf's position in that conference call. imflmost predicted that the would not participate. on the one hand, we are being told that they would only provide this loan of more than 80 billion if the imf is aboard. with debt coming out

sustainability analysis which clearly stated for the records that the greek debt is not sustainable. according to its own rules, the imf would not participate in any new bailout. they already violated the rules twice, but i don't think they will do it a third time. at the end of the day, they would not be able to coordinate that huge loan. hans: let me explain to you why these two institutions, the imf and the european union are at loggerheads. the imf is saying there needs to be debt relief. the european creditors are saying, not until after parts of this program are completed. there's one way to sort of split the difference. billion say there's 17 left over in the current imf fund. there is a way you could maybe recessive eight that seven --

resuscitate that 17 billion and the imf could satisfy some of their own requirements. still, this seems like a big problem and one that isn't easily solved by just forcing athens to accept more austerity. jonathan: what they want is a commitment to debt repro filing. we could use any number of words. restructuring, relief, repro filing. what will really matter is the wording of it all. hans: it is really the modifiers. what is substantial reduction? if the suffix on the re is duction, so it is reduction, that is a nonstarter for germany. then you get to the modifier. what is substantial? what does the imf need to make this sustainable? i suspect they aren't just technical differences. they are fundamental

philosophical differences about what greece needs to do to stay in the euro, and what europe needs to do, where they are willing to compromise if they want to keep greece in the euro. this is varoufakis' point. he suspects that mr. schaeuble wanted to ease greece out. mr. schaeuble may have one way to get out of there, with the imf holding firm on their position. jonathan: hans nichols in berlin, thank you. still with us, bob parker. let me go back about 5, 6 months. the dutch finance minister, portuguese finance minister, spanish finance minister, all said we would consider pushing back maturities, lower interest rates. we've done it before. why are we talking about the same thing still? bob: i think a lot of it depends on the conditionality in the bailout. if you cut through all this noise, greece has debt of 320

billion euro. greece in the first half of this year went back into recession. the consensus forecast for next year is the greek economy will grow just over 1%. with that very mediocre growth outlook, one has to ask what is greece's ability to achieve the primary budget surpluses that have been agreed in the bailout? what is its ability to service that 320 billion? if greece was compliant with the original criteria, its debt level would have been about 100 billion. one has to sympathize with the statements from the imf saying that greece needs debt relief. to come back to your question, i'm going to make a clear distinction between one form of debt relief, cut the interest rates, push out the maturities, but still leave the debt at 320 billion. or you can say greece is never

going to repay the 320 billion. let's write off 100 billion or 150 billion and cut their actual debt load. i think in the end game, we will inevitably have to cut. the people that thought we got the cam kicked a couple weeks ago, are we in for another 4, 5 weeks of choppy negotiations? bob: i think inevitably yes. what will happen i think will be an agreement on the third bailout. i do think there will be debt relief in the form of stretched maturities and lower interest rates. i suspect the imf will go a long with that. i think as we go into 2016, the inevitable will happen. the creditors will have to accept a real right off of greek debt. jonathan: if that's what i'm in for, what do i do as an investor? it is kind of like the boy who cried wolf.

we heard it a million times, then the stoxx 600 follows it up with its best month since february. bob: i take the view that contagion of risk from greece remains very low indeed. the market goes along with that if you follow the 10-year spain, 10-year italy. the yields are still below 2%. i think the spread will stay close to 120 basis points. i think the contagion risk is low. you have to stay long european equity markets and stay long the sectors and companies which benefit from the low euro and low commodity prices. jonathan: bob parker, thank you for joining us. itll to come on the program, is the story of the week in social media stocks. earnings beat expectations but the stock is falling. why investors didn't connect with linkedin's results. we will do that after the break.

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jonathan: welcome back to bloomberg tv. this is "on the move." a huge week over the last five days of bank earnings in europe. let's give you the forecast. bnp reported today it was a beat. a beat for ubs. a beat for rbs. a miss for deutsche bank. let's head b.n.p. paribas open. caroline connan has been

speaking to the cfo about the lender's restructuring program. take a listen. a as you've said, we had strong result in q2 and q1. that basically demonstrates that our franchise is fairly strong. it is also a validation of our concept. moreover, it is also showing the efficiency of what we've done in the past. we adapted very swiftly as of 2012. we basically see in those results that this is working well. as you mentioned, we see that there is still some uncertainty on the horizon. that is why we announced earlier in the year that we would have a new organization to accelerate that business plan. that led to the creation of one global market to include the security services activity.

as a consequence of this, the cib are working on a bottom-up plan to crystallize these accelerations. first is to further improve efficiencies through things like industrialization or further optimization of the balance sheet. at the same time, to continue to invest in order to capture market share. that's what we are doing. that takes time. do you think your cost cutting measures may reach as much as 20% as reported? >> this is not a cost-cutting exercise. acceleration of our business plan that we set. we will look at efficiencies. at the same time, we will also continue to invest in specific areas in order to further

capture market share. jonathan: that was bloomberg tv's caroline connan talking to the bnp paribas cfo. a busy week for banks. a busy week for social media earnings as well. twitter, facebook, linkedin, all beating expectations but the stocks falling in expectations. nejra, give us the details on linkedin. nejra: second quarter sales were a beat. the forecast beat estimates. linkedin's shares did rise initially, but they fell after the conference call. this is because the company attributed the bump in its annual revenue forecast to the acquisition of the education website lynda.com. what that did was raised concerns that growth is slowing in the main business. we saw that initial pop and then the shares fall in after-hours. jonathan: talk to me about the

main concern for these companies. facebook, seems like a $4 billion revenue number wasn't enough for investors. nejra: with linkedin, the main concern is that the jobsite is perhaps not enough for users. with facebook, spending climbed 82% in the second quarter. that was more than double the rate of sales growth. it was a strong sales number, whating $4 billion, but investors have been concerned about is first the spending. mark zuckerberg was making it clear that he plans to continue investing. he thinks facebook's biggest days are ahead. the other things analysts were asking about was whatsapp, instagram, messenger. what are the apps going to do? how are they going to make money on their own? zuckerberg didn't give much detail on that. he said until they reach a billion users, we needn't worry

about them as a business. a little job at twitter, which has far users -- far fewer users then facebook. they said, we have a lot of work to do, but don't expect great progress anytime soon. the underlying problem is it is much smaller than the competition. jonathan: thank you very much. let's talk earnings. iag, parent of british airways and iberia's revenue rose 11% to 5.6 billion euros. then pats joins us now. the airline's first half results, talk to me about them. it is a little mixed. : it is a mixed picture, but leaning towards the positive. we saw operating profit rise about 40%, which beat consensus. we are saying next because passenger unit revenue was down,

which suggests stiff competition related in part to oil prices. at the same time, ba and welding have suffered on their own yields. good sign and bad sign. iberia is the biggest thing to talk about. they just announced they were going to expand routes traveling to africa, asia, and the americas. their operating profit grew 220% from previous years. jonathan: a turnaround for them. going into winter, what is the outlook for iag? ben: it is one thing that willie walsh refuses to give an indication. we have that from ryanair and lufthansa. they are expecting fares to be tougher. we also know that virgin and a couple airlines are dropping

capacity. iag has told us they were going to drop from 5.5% to 5.2% across the airlines. jonathan: you say you've heard from willie walsh. how is he performing against the two big rivals? performing walsh is well against his competitors. 11.5%. risen about his competitors, lufthansa and air france, have both dropped over the period since the beginning of the year. willie walsh is reaping the rewards from his tough negotiations and treatment of the unions when he first joined. now, we are seeing air france and lufthansa still struggling to get into those negotiations with their unions. bid.here is the aer lingus

transatlantic is the biggest burner of their business. that is more heathrow slots flying to the americas. jonathan: thank you very much. that's almost it from me. break, we are going to break down a busy week from the markets. what you need to watch for the rest of the day. in london, the ftse 100 still in the green. the stoxx 600 heading for its best month in february. ♪

jonathan: good morning. welcome back to bloomberg tv. it is time to wrap up the week with some of the charts that matter. manic monday on the shanghai composite. the index plunged on the first trading day of the week. the biggest one-day stock dropped since 2007. the move shredded the calm after the government tried to stem a route. the index spent the week struggling to find direction. it has ended july 14% lower than it started the month. it is the biggest monthly drop since 2009. twitter's interim ceo and cofounder suggests honesty may not be the best policy. share price. jack dorsey killed a post earnings stockpot by talking down results and calling recent

product announcements on accessible. it didn't go over well on wall street. twitter shares closed 15% lower on tuesday. gold goes down. the shiny stuff set for the biggest monthly decline since june 2013. it is trading at a january 2010 low. they are the big moves to watch. coming up in the rest of the day, a busy day to go. we are going to break down eurozone cbi and unemployment. hans nichols is going to break it all down for us. hans: in some ways, the expectation is, if you say 0.2%, that's where it has been the last couple days. in some ways, the inflation number is more interesting to us than it was 4, 5 months ago. we were in short when the european central bank would pull the trigger on quantitative easing. we are well into that. there is talk about them

frontloading the purchases. in some ways, inflation is less important. it is not showing any great effect yet. unemployment, similar story. we have retail sales out of germany. the monthly number, which is not seasonally adjusted, did disappoint. none of the data is really determinative right now. we still need to watch it. in some ways, the inflation story here, we get another read on the effects of oil, giving consumers a little more money in their pocket. jonathan: hans nichols, thank you very much. that's what we will be watching in europe. also keeping our eyes on that russian rate decision. later today in the u.s., some big earnings releases from big oil. exxon mobil and chevron. that's almost it for this week.

coming up next is "the pulse" with manus cranny and francine lacqua. manus: the european data that hans was referring to, we've got gilles moec coming in from bank of america. it is a very different speed. a little pop in the unemployment rate in germany. the confidence numbers are coming back. amazon-netflixe story. this broke yesterday evening. jeremy clarkson and his cohorts going to amazon. amazon said to the investing a quarter of a billion dollars over three years. the lovely line i read this morning, "house of cards" on netflix was $100 million for three seasons. it is a huge expenditure going on in terms of creating unique content. on my own tv, i've got netflix and amazon prime. it is a question of do i really

need both? that is the question many people are going to be asking. we are going to put context around that. liberty media upped their stake. it is all beginning to play. what contaminates what? does streaming contaminate the ad revenue or not? and of course we got finn mechanic a. we've got the ceo. anna is on her way to talk to him. jonathan: manus cranny with francine lacqua after the break. that is almost it for me. we are higher on the ftse but only just. gains across europe as well. the stoxx hundred headed for its biggest month of gains since february. comes outn inflation in minutes. that's it for me.

if you want to talk about the markets, i'm on twitter. best of luck for the rest of your day. ♪

>> this is an acceleration of our business plan that we set. it means we will look at efficiency in some areas. cfo tellsbnp's bloomberg the bank's biggest rebound since the financial crisis is not just about slashing costs. france's largest lender turns in entire list -- its highest quarterly profit in years. manus: bg group second-quarter profit falls. francine: the troika gets its first official meeting with greek government ministers since syriza came to power.