i'm ross westgate. on today's "worldwide exchange," european stocks are firmer with super earnings with the names of shell, bff all weighing in. >> i'm bertha coombs here in the u.s. we've got a slew of earnings, as well. exxon along with disney after the close. >> and i'm christine tan. we're looking at shanghai stocks finishing higher 1.7% after china central bank reaffirmed its loose monetary policy.

hello and welcome to today's "worldwide exchange." it's a big earnings day in europe today. the ftse cnbc global 300 right now as we stand, we'll show you exactly where we're at. european stock markets are up a little bit. ftse 100 is up 0.5%. cac 40 up 0.5%. the smi is fairly flat. we just had german jobless figures out, as well. german unemployment down by 6,000 on the month and adjusted terms in july, it would've risen by 30,000 were it not for one off effects. this is according to the source. the mid range forecast was to rise at 45,000 on the month. the headline, unadjusted employment rose by 52,000 to

3.462 million. as far as the currency markets are concerned, the dollar is steady against the yen at 94.97. euro/dollar, 1.4054. sterling/dollar, getting back towards that 1.65 mark. christine, good to see you. >> hey, ross. most stocks here are marginally higher. today the central bank is coming out, pledging to ensure marketability and sustain credit growth. over in japan, industrial production rose at its fastest pace in more than half a century in the april to june quarter. the nikkei gaining 0.5% at 10,165. elsewhere, pretty nice gains

across the board there. in terms of crude, we are watching crude oil closely. we saw that sharp pullback closely 6% after that jump in crude build stocks. nymex light sweet crude up 26 cents, $63.55 a barrel. brent is also putting on gains, $67.13 a barrel. bertha, good to see you. >> good to see you, christine. and we've got lots on tap this morning ahead of the open. of course we've got the weekly jobless claims. exxon will be reporting earnings and this morning, goldman sachs is upgrading our parent company shares to abuy, saying that the threat and need to spin off capital, that's likely to be a factor this morning. dow futures are 40 points above fair value at this point. nasdaq and s&p futures are higher, as well. we are watching bonds. take a look at the ten-you're bund. i imagine it moves here on the back of that data coming out of

germany unemployment there. right now the ten-year yield for the bund is at 3.what%. here in the states, the ten-year note, we have got that yield moving back up as we saw another poor showing as far as the massive debt offering yesterday from the fed with the five-year didn't go very well, either. the bid ratio was rather low. another massive auction today. taking a look at spot gold, it is moving up just a bit as the dollar backs off its highs this morning on the back of that german data. joining us now for market strategy and outlook is phillip gessaeu and the other member of our panel this morning, paul ramscar. welcome to you both, gentlemen. phillipe, i want to start with you. it was interested here in the

u.s., mohammed el-erian said he felt that this run up we've seen in the markets was a bit of a sugar high, that we all should get ready for a low on the back end of this. are you in agreement with him? >> i'm in agreement with that. we've been arguing for a while now that we have a bear market. at least now expectations are running ahead of themselves and we expect the second half of this year in economic terms to be quite difficult and also in terms of earnings to be disappointing so we think markets can come down. on the other hand, i'm a bit surprised that we moved up so strongly the last few weeks and that leaves us with a technical picture that is quite improved. still, i think in the second half of the year, we have having difficulties. >> paul, what do you think? is this a case of now if you're an investor you just can't fight the tape or do you think this

rally is for real? >> well, it was certainly interesting last night that china indexes had a pullback and now it's made headline news. actually, we do believe that the last of this recession is coming to an end now and that's why investors need to be, you know, using strategy and lining up their portfolios defensively for the next two quarters. but with regard to china, i think that was a welcome correction for some managers because it gave them an opportunity today to get into the shanghai market at a small discount. so we're still focusing on the next two quarters and we do think the worst of this is behind us. >> paul, this is christine. it's interesting that you mentioned china because this market is up more than 70%. you don't think there's a bubble forming in the stock market?

>> no. we don't think so at all. in actual fact, we think the authorities are keeping quite a type grip on lending and in particular with home sales they've actually started to impose new restrictions. so they are getting to the heart of the matter here. with new home purchases, they have reduced the initial deposit from 30% down to 20%. so i don't think there is a bubble forming. i think a lot of the bears would like to believe that there is a bubble forming, but no, i don't think there's a bubble forming in china at all. i think things are in the early stages and this talk of bubble is quite frankly premature. >> guys, stick around. we've got earnings coming out we want to cover from volkswagen. first half operating profit looks better than expected although the pretax profit i think is light and they're pretty pessimistic about giving

any forecast for the full year. patricia is in frankfurt with the full reaction. >> ross, we have net numbers slightly below the expected number at 524 million. so on two levels already, underperforming in terms of their reporting, it is 51.2 billion euros worth of revenues they've reported and as we're looking and hoping for a number of 52.6. what i think is very important, of course, is what they have to say about their revenue forecast for 20089 and they will be lower than the previous year because of the decline in volume sales. it is also rising refinancing costs and mixed deteriorations will serve as an additional drag on earnings. so all in all, they also say they will counter this trend in particular through disciplined costs and investment management. at the continued operations. so again, no real top line

business. bottom line is being cut, cut, cut. outlook not very positive. now i'm in the center. not very positive and also disappointing on the revenue side as well as on the net side in terms of the numbers. so we'll have to see how the market is playing it. right now, post bank is still up about 4.2% as we speak. >> ta trisha, stay with us because one of the companies that is impacted by what happens to the auto sector is basf. they saw second quarter earnings slump by more than half to $1.61 billion. just above average forecasts. for more on that, we're joined by the cfo. herr bach. thank you so much for joining us. >> thank you for having me. what are you saying about where we are? have we stabilized at the low point of global growth or how pessimistic still are you about

demand from here? >> it looks from our point of view that in q2 demand has bottomed out. actually, for us, q2 was slightly berd than q1, sch very, very weak, indeed. having said that, the outlook for 2009 is very cautious. we don't see any signs for a real sustainable recovery right now. >> mr. bock, thank you for joining. i would wonder what are the sectors you see demand dropping off for basf? >> let me start on the good side. we had a very good business, probably one of the best in our competitive environment. we also had a pretty good oil and gas business. chemical demand is coming back rite slightly, but that's, from our point of view, mostly restocking after a very severe inventory downturn in q1. what we see in asia is a little bit more promising. from our point of view, actually, right now, our volumes

in china are above the average of what we have seen in 2008. north america, too early to tell. in europe, we don't see any signs of a recovery. >> mr. bock, this is christine. speaking of china, are you confident that the sdrengt you see in china could help you offset some of the weakness you've seen elsewhere? >> china is a very big market for basf. nevertheless, our main markets are north america and europe. it might be difficult to live up to the expectations which we have created in 2008 when we had record earnings. >> mr. bock, what about the situation here in the u.s.? you say it's too early to tell, but are there any signs at all of stabilization or bottoming? >> our problem, frankly, is that our customers also don't know what's going to happen. we get autos on a very short notice. small quantities, more frequent

ordering process and also our automotive customers i think don't have a clear picture of what's going to happen moving forward. so we have no indications that there is an imminent recovery of demand. what we can say most probably the decline has bottomed out. >> now, when it comes to your margins, mr. bock, i wonder about the development. if there's no real nand, your cost cutting will be at an end. what about the margins going forward? >> you have to keep in mind that the profitability in our chemical business, that's quite impressive from our point of view when you consider we are operating at about 60% of xat capacity. we also have experienced in q2 kind an increase, the oil price went up and also the cost of our major feedstock. margins got impressed a little bit. what helps us tremendously in

2009 is our restructuring. we are in a cost cutting mode right now. we have reduced spending to the extent possible and we are very confident that we can continue down that road throughout the course of 2009. >> mr. bock, what is going to happen with the dividend? you've talked about how earning the cost of capital is a precondition of keeping steady and that doesn't seem to happen at the moment. >> you're right. on today's point of view, it's pretty likely that we earn our cost on capital. if that is not the case, we said we will cut the dividend. to what extent, that decision will be made in 2010. then we look at the circumstances, how is basf doing, how about the markets. what i can say is basf has paid a handsome dividend over the past couple of years and any cut would probably still mean that our shareholders get a very fair share of our profit. >> is there still a chance that

maybe it won't be cut, then? >> as i said, if we don't make our cost on capital, the dividend will be cut. that's clear enough. thank you so much for joining us, kurt bock of basf. still with us, we have phillipe gazelle and mr. ramscar. there's a lot of companies that have done okay. but these two are the heart of the global economy. there's no signs of any pick up and no signs of any top line growth at all. >> no, indeed. and that interview was a perfect example of what we have seen so far in this earnings season. so basically, the economy seems to have bottomed where there is now strong recovery in the second half. profits are more or less okay, but revenues are very weak. so as an investor, you should look at this, okay, our market is anticipating recovery, but we know our recovery is not going

to be very strong. and i come back to the same point i made before the interview is that probably estimates are running ahead of themselves and we're up some disappointment in the second half. earnings are not going to be there so i would be very cautious. but on the other hand, markets are clearly showing an uptrend at the moment. i would be cautious for the second half and basf and swroex waggen comments only confirm that. >> i guess, paul, that there are sectors and there will be areas and companies who, you know, won't be impacted the way that basf and vw are. they can create market share and they'll have steady revenue growth, right? and those -- they'll do well. >> yes, absolutely. we just hears there from the gentlemen at basf that he is

very confident on china in his business. we would say yes, the bottom has been reached. there is a danger that we could be looking at a w-shaped recovery and that is a concern to investors because they don't know where to turn in that situation. yes, for the next three quarters, line up our portfolio defense ofly, but look at growth areas like china. it is still at a low pe at the moment and over the last couple of years, it was about 35. so we've still got some way to go with china, so definitely line up the portfolio defensively, but look at areas like comment, household construction, food, beverage in china, what we've seen over the last year or so is a shift in china from importing -- sorry, exporting to now domestic and now what a lot of companies wants to do, they want to import into china. so china, we think, is going to

lead the way. i just mentioned that that was a w-shaped recovery. actually, it's a c-shaped recovery with china leading things forward for the next two quarters. >> paul ramscar, thanks for that and phillipe, always good to see you. >> thank you. shell reported a 70% fall in net profit in its second quarter. industry demand was weak. but the supply earnings of $2.3 billion versus $7.9 billion a year ago were better than expected. shell says it made cost savings of $700 million, as well, in the first half of the year and still expects to make further substantial staff reductions. but it has increased its dividend payout by 5% on a year ago. christine. >> here in asia, ross, sony posted smaller than expected losses boosted by its flat panel

tv business. the company lost some in the second quarter and sales fall a 19% fall to $16.8 billion. but season neeps aes cfo says his company remains optimistic about the full year. >> translator: we have left our forecast unchanged for the time being. but internally, we are hoping to break even or do better than that. >> shares of sony gained 6.8% today ahead of the results at 2,505 japanese yen. bertha. >> thanks, christine. here in the u.s., president oh wam ma's approval rating is slipping as the president's focus has shifted from the economy to health care reform. in the latest poll, the approximated's approval raiding is at 53% and about the same as president bush in his first year of office.

about 49% approve of how president obama is handling the economy. the top issues on americans' minds, job creation and economic growth, the deficit and government spending, then health care. and if you want to know what's going on with this earnings season, take a look again at a interview with basf's chairman and ceo on cnbc.com. still to come on today's program, it's suggested the housing market is bottoming out. yesterday's five-year note auction drew some luke warm demand. has demand for treasury begun to dry up? and we'll be joined by capgemini's cfo in an hour.

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it's a big earnings day here in europe. we'll start off with becky in london. >> interesting to know, ross, markets are gaining again today. we have seen most of the past two weeks registering gains. a bit of a pullback earlier this week.

nevertheless, we are higher by about 25 points. loads and loads of earnings to tell you about. bt is 1 % higher for that company after they told us they had a first quarter loss that fell less than analysts expected. let me commission bskyb, as well. their net customer additions well ahead of analyst expectations. analyst expected about 98,000 customers. in fact, they added 124,000 customers. we spoke to the cfo of the business earlier on and here is what he had to say. >> it's continued steady growth. we don't have a crystal ball, but we've traded well in the last four quarters and we see today no reason why that shouldn't continue towards 10 billion and beyond. >> now also seeing some strength coming through in the basic resources stocks, as well, and they are helping to add to the gains that we're seeing elsewhere, we should mention

some of the decliners. we have one real standout decliner and that is reed elseavin. they came out this morning and told us they're issuing shares to help pay down debt as they see the economic conditions continuing to bite on that company. overall, we're higher by 0.6%. now to patricia for more on the german trade. >> we've been in positive territory for most of the morning, but just now slipping into negative territory. huge reporting day. a mixed bag of results, really negative coming through from basf. we just spoke to the cfo on the show and he's ves very pessimistic, especially for the second half of this year and warning on the full year of 2009. m.a.n. is coming through with not only very weak numbers, but also the outlook is disappointing the market.

deutsche bank is also down by three. the outlook is not that great. the new orders coming in below expectations, down about 28%. ksn and daimler we heard from yesterday. volkswagen coming through with their second quarter numbers, it seems despite the fact that they're saying there's not much business to be done for the year, it's up about 3.6% for that stock. also e.on and some of the insurers doing very well, indeed. >> at the moment, the midcap is the only one down in negative territory, down about 0.3%. tech stocks just holding above the bottom line. now over to lei. >> thanks, patricia. the chinese market had a calmer session. in fact, a lot of sea sawing trade. but a strong showing by financials stabilized sentiment. other gainers included telecom examine commodity stocks helping

the shanghai composite end higher. now, recent ipos rallied. citron expressway gained 5.8%. it tripled on monday and today it's back on the rise. china state construction, which some say is the catalyst for yesterday's sell-off added on to yesterday's gain. banking stocks led the gains after yesterday's comments by a central bank governor saying it would not butt the on loan caps although it may use window guidance and open market operations to call china's lending fever. although if you have a look at the big bank numbers, they've already slowed down lending in the second quarter versus the first quarter. property stocks continue to be sold off. that sector has put on the most gains this year. also investors are worried about china launching policy easy to call property prices. so a calmer session today. back to you, bertha.

>> thanks very much, cheng lei. here in the u.s., the calendar is heavy with top earnings. we have a critical piece of economic data. weekly jobless claims are out at 8:30 a.m. new york time as they are he ever thursday, this time forecast to rise by a total of 34,000. this could well set the tone for today's massive offering of debt. we are going to get those five-year notes this afternoon, the seven and the two have not gone very well. exxon mobil, meantime, is reporting second quarter results. that's due about 8:00 a.m. new york time, certainly ahead of the bell. forecasts are forecast to drop by about 57% as the bottom line is thinned out by lower crude prices and a glut in energy supplies. and we'll be hearing from travelers, the newest member of the dow jones industrial average and we'll get results from the like of barrick gold, colgate ham olive, cigna, dow chemical and after just heard from basf

lowering its guidance and saying here in north america, it's wa too early to tell whether things are turning around. eastman kodak is reporting, international paper and mastercard. walt disney will be the highlight after the closing bell along with genworth and metlife. coming up on "worldwide exchange," will stimulus spending at home and abroad pump up demand for cars and electronics in the second half? >> plus, the sales of wii have started to lose some punch.

i'm christine tan. in asia, sony posted a smaller than expected loss in the first quarter and said it is aiming to beat its full year forecast. and i'm ross westgate. in europe, it's a big day for earnings with shell, bp all weighing in. >> i'm bertha coombs. investors brace for earnings of exxon mobil, disney and another treasury auction. >> the ftse cnbc 300 has been

ticking higher, just up 0.4% at the moments. the ftse 100 is firmer on the back of the news. basf, we just spoke to the cfo a while ago and it's a droog on the xetra dax. bmw was a drag on the market, as well, saying it's very difficult to make a forecast for the full year. on the currency markets, this plays out, dollar/yen in the range. euro/dollar, is beginning, we're over 1.42 at the beginning of the week. at the moment, we're at 1.4047. sterling is firmer against the dollar, trying to get back to the 1.65 mark than we were at the beginning of the week, christine. >> hey, ross. early jitters about the country faded as people jumped in to do some bargain hunt bing after the big slump we saw in the market yesterday. also helping the markets was

china's central bank pledging to maintain a loose monetary pol y policy. that is giving the shanghai composite a lift, erasing some of the earlier losses we've seen. the bombay sensitive 30 trading up 0.6%. taking a look at the nikkei 225 continuing to push higher, 0.5%. highest close in nine months. bargain hunting is the theme of the day here in asia. bertha. >> could be the same theme here in the u.s., christine. we are seeing dow futures above fair value. could be in part because of an upgrade of our parent company shares, general electric over at goldman sachs, they see less of a threat now that ge capital may have to be spun off because of regulation. meantime, we are expecting earnings ahead of the earnings today. exxon mobil ahead of the open and disney after the close. this morning, we'll hear from dow chemical talking about the basf numbers not being very

good. we've got dow futures right now up over 40 points above fair value. nasd nasdaq, s&p futures higher, as well. we've got unemployment data out of germany, the ten-year bund. the yield this morning has been below 3 1/2 right now. it's moved up to 3.69%. unemployment ticking up in germany. of course, we will get the weekly jobless claims here in the u.s. that could set the tone this morning, as well. they are forecast to rise and we are looking to see whether the third massive offering of debt this afternoon goes any better. the two year, the five year disappointing. we are expecting a $28 billion offering at 1:00 new york time. u.s. economic activity overall, when you look at the data, seems to have begun to stabilize according to the fed beige book. joining us now to discuss what's going on is marco enciatta, from uni credit.

marco, we saw the beige book yesterday and it says there are signs of some areas where things are picking up, not just stabilizing, yet the forecast is for things to remain fairly weak for a good, long time. was there any surprise in the beige book data to you? >> no, not really. in q3, we expect to see positive gdp growth. this is extremely significant. the recession is ending. there is a lot of caution in analyzing and predicting the recovery. there is a lot of awareness with the fact that with unemployment arising and we will see weak data tomorrow on the jobless claims and the housing market still just about to find the bottom, the prospect for consumption is great. but improvement is coming, especially beginning now and that is important.

>> it's interesting this week there's been no debt appetite and is that a reflection of the fact that people are worried about the economy or is it the timing? and this comes in the week when the u.s. and china have been talking. >> yes. it's a very interesting point. the situation is complicated because the week was a week of very high supply of debt from the u.s. government. that, of course, did not make things easy. in the background, even with the recovery coming on line, there is a lot of concern about the size of the expansion of the fiscal deficit in the u.s. in the projected increasing public debt. public debt in the u.s. is expected to almost double over the next ten years to about 80% of gdp which is unprecedented. and with more spending plans in the pipeline like the health care reform, there is growing and easing in the markets about

what's going to happen in terms of increased supply of debt over time. and i think this is what we're seeing reflected right now in the fixed income markets. >> yeah. how much do you think it's priced in? there must have been expectations that not every auction is going to go brilliantly. >> no, exactly. and i think there is growing uneasy in the market & with concern that we might see an accident along the way. so there is concern that we might see accidents, some of the auctions not going extremely well, but bear in mind, again, the problem is mostly a longer term problem. there is a lot of concern about what the pace of improvement will be over the coming two yearsing on so. >> yes. and what doesn't seem to be an improving is the flow of credit still for businesses further down the food chain. that seems to by causing tension

still. where does that stand on the recovery? >> the ecb, notwithstanding the green shoots has been more concerned about credit originaling the banks to lend more. the problem is, we are in a recession. we will see corporates increase over the next six to nine months. so now there is a risk that the flow doesn't extend afternow that the has picked up. in europe now this is becoming a more and more significant risk and certainly a focus for the european central bank as we will see again next week. >> marco, my. this is christine here. we have china, of course, soaring ahead. industrial output continues to rise. do you believe in the decoupling

story? >> mild de couplicoupling, yes. we've seen before outright decoupling doesn't work. if the u.s. collapses, china follows and the rest of the world follows. but right now, the u.s. has stabilized and is starting to pick up. the ability of china to generate domestic growth is extremely important. and that will allow the u.s. recovery to pick up pace more easily than it would be -- than would have been the case ten years ago when china was not such an important player. so a moderate decoupling is a factor and will be an important driving factor in the global recovery. >> marco, good talking to you, global head of economics uni credit. we're watching earnings here in asia. one of the top stories, sony booking a smaller than expected quarterly loss and says it aims to break even on the operating level for the full year. is the electronics giant on the

road to recovery? for more on sony, let's get analysis from pellum smithers. sony post ago smaller than expected quarterly loss to break even this year. do you think restructuring at sony is finally paying off? >> it's a combination of restructuring and some luck and some genuine good selling products. we would expect it to come through more as the year progresses so that it is entirely possible that by the end of the year this is a break even target. which if you consider where they were three or six months ago is a fantastic achievement. they've had a bit of luck. the yen stopped appreciating. they have had a bit of a behind fall gain from the michael jackson phenomena. but also they're starting to bring out products that people are really excited with. we will see the new psp go will be released in september.

i think people will view that as a serious competitor to nintendo's ds. going forward, you're looking at products which do rival apple's iphone coming out. so we're seeing a change in heart, a change in performance at sony at last. >> it's funny because you mentioned how sony is doing better on the psp front but anybody tendo reporting a slowing man for its wii consoles. will nintendo now have to resort to cost cutting? >> well, that depends on what your definition of recession proof is. nintendo made a profit, just not as big of a profit as it made last year. and it's all to do with a sort of -- a mistake that nintendo made over a year ago when they really didn't bring out enough

software games from june of last year. the only really big release they had in the second half of last year was wii music and that is, by their standards, been a major disappointment. now as we go into the second half of this year, we've got wii sports resort, there should be a new super mario game for the wii so there's a lot to look forward to on that side. but the way the video game market works, a lot of times, these games take a long time to impact on earnings. the lack of games that nintendo had didn't show up until this quarter and this has taken nine months to come through. >> pelham, what is the situation looking like as we look toward the fourth quarter in terms of the holidays? always a very important time for these gameres and for all of these electronics. does it look good for them? are retailers shying away from stocking up? >> well, apparently not on the

retailer front because game group today announced that they were doing some financing. so it suggests that, you know, they're looking to have more working capital available to stock up. there will be a lot of good gains coming out, particularly gains by third parties. for instance, the rock band beatles game coming out which was so heavily pushed e3 and we've seen big successes in the last few months at games like capcom and these would be looking to be sold again heavily come the third season. nintendo has the super mario brothers game and it has an upgrade for the wii fit and sony has got a grand turismo 5 which could be the biggest game yet for the ps3. so there's a lot to look forward

to and i think we'll see as we head into the christmas season, people get excited about video games. you shouldn't be talking about video games right now. people aren't buying them. it makes sense six months forward things will be different. everybody is upbeat about the potential for mobile. i wonder how mobile will play into the gaming industry. >> oh, it's really taking over. the iphone is a fantastic games playing machine because of the tilting mechanism. and if you look at the new psp go, which will come out in october, that is basically designed to provide you with that sort of mega tronnics. >> are you going to see the likes of apple and nokia competing direct with sony and nintendo on mobile devices? >> yes, absolutely. i mean, until recently, the big problem for mobile phonemakers

has been the size of the lcd. now with the iphone, people got used to carrying around much large every lcds. consequently, they can play much more so fest indicated games. >> and speaking of games, pelham, i'm amazed at your knowledge of video games. >> i never really grew up. >> super. it's a good thing, though. it's a good thing. >> thank you very much. pelham smithers. let's go to india right now. ayesha faridi joins us live from mumbai. >> thanks for that, christine. holding up actually after a very quiet start, it's struggling around that mark. a little bit of volatility definitely is factored in. i.t. is your big winner. and if they have indeed delivered a good set of numbers, they've upped their guidance, as

well, for the next quarter in dollar terms. so the entire i.t. pack is holding out quite well. meantime, more updates coming in on r & r and reliance industries is gas stocks. the government gets involved and we understand that r&r is cleared for an early hearing is what government and reliance industries also are sort of supports after that letter that was written to the prime minister seeking for an early hearing. the supreme court will be hearing the case on september 1st now. meantime, sunfarm has been sul canning in trade. it was down 5 odd percent even though the management is expecting a 5% growth in fy '10. the company says they believe accusations are without medicine the class action lawsuit. similar is the case with sahansan and sulon energy.

the numbers came out which is why you are seeing dampening in counters. meantime, the market just sort of struggling with that 455 mark while i.t. is holding up its capital goods and health care in oil and gas which are under pressure in trade today. with that, it's back to you. >> ayesha, thank you very much for that. well, it's a perfect story for "worldwide exchange." singapore exchange has appointed former nas dax omx tt magnas ps bochner as the ceo. he gave three reasons for his move. >> he has a very strong board, very strong management team, very knowledgeable. it's been very good at executing on its strategy. the third reason is maybe singapore. if you look into many of the countries in asia region, i do believe that their 21st century

is the century for asia. >> sgx's asia's second largest listed board will stay on until baka resumes his post. tsmc reported its largest profit in three quarters. net profit came in at $743 million in the april to june quarter. better than forecast for $709 million profit. it raised its capital expenditure for this year and said that increased demand for chips will improve the company and industries revenue. the results were announced just before the taiwan stock market closed. tsmc ended down 0.9%. 56 taiwan he's chips. >> the group reaffirmed guidance and said it expects margins to improve for alcatel-lucent. the french telecommunications company said cash burns should be lower for the second half and it hopes to be profitable in

2010. >> so, you know, we're seeing good progress to our plan. we always said this is the year of transformation. it will be based on what happens in the second half and, you know with we're on track. and we are going, you know -- our guidance is unchanged. break even is, as i said, it's break even. >> a senate panel has subpoenaed information from goldman sachs and wamu. washington mutual is also a target of the probe. lawmakers are looking at whether internal communications such as e-mails show bankers had private doubts on the soundness of the mortgage related securities, that they were bundling and selling to investors. and they led the boom. now citi is in the sunbelt states of florida, california and arizona are dominating the record spree of foreclosures this year.

realty track which monitors activity said metro areas dominate 35 of the highest foreclosure rates. but more than 20% of the area with above average foreclosures are in states such as oregon, utah, illinois and south carolina. realty track says the source of the mortgage trouble has shifted from lack lending standards to rising unemployment. >> well, whether it's news, videos, blogs, anything moving markets today, you can find them all at one place, cnbc.com. coming up, the market spent july on a sugar high, according to pimco's month ham el el-erian. those of us with a sweet tooth know what's coming up next. >> and also we'll take a look at was going on with the currency markets.

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we'll bring your attention to the currency markets right now. dollar/yen, banging around this 95 mark. euro/dollar, 1.4058. sterling has got back to nearly 1.65 against the greenback and dollar/swiss franc at the

moment, 1.0876. we saw german jobs today that had an impact on the euro. nick hastings, what is interesting is that the data is knocking currency but not equities. i think we're seeing a disconnect in the -- >> definitely there have been disconnects. but the trouble is, as soon as you think you've got the disconnect, it recontacts. you can never trust entirely how this will work. it was interesting yesterday when we had the shanghai news out of china on lending. and it was amazing how that had this instant reaction right around the world and how important china remains and engaging levels of risk and appetite for risk globally.

what was so interesting today was when su ming, the pboc, the peoples bank of china governor came out and said, hold on, guys, essentially we'll keep monetary policy easing. that led, again, to an instant reaction globally. we saw reaction coming up and that has let me tell led to improvement in risk appetite over the last few hours and that is obviously, we can see that in performance of the euro. but it is interesting. sometimes it doesn't appear to have a correlation but it can be incredibly tight. >> we're getting flashes, nick, that china has to be careful about extending loan payments. so essentially, this void is priced in? because it seems as though there's a disconnect and it's a risk trade at this point and that's keeping us so range bound. we go a little one way, a little the other way and we don't need to break through.

>> absolutely. because this is a market that can't make up its mind whether or not we've got a global recovery on its way or not. and the minute starts thinking, oh, things are looking pretty good, something comes along and those it back. for example, the german um employment numbers are coming out this morning. for the most part, people have been looking at the euro zone and thinking, things aren't too bad. and these things look quite good with a fall of 6,000. but actually, when they're reinterpreted properly, it looks pretty good. it's actually a rise of 30,000, not particularly good news. it does actually suggest that there are risks of deflation down the road here in germany and that's not going to be seen as good in terms of the global economic recovery. so as soon as people start talking about this, they get some bad news and that knocks them back. they have not been particularly successful, they have not attracted quite the amount of foreign interest that a lot of people have hoped for. that is going to leave a lot of

people worrying about the u.s. being able to fund its deficit. we've had two of these at two of the five-year auctions yesterday and the day before. again, people will be looking to see if that reflects this falling appetite for u.s. assets, especially by foreign central banks which again opens up all these questions about diversification of foreign exchange reserves in those countries and the impact that could possibly have on the dollar. >> hey, nick, this is christine. do you have any insight as to what the chinese are thinking as far as their dollar diversification is concerned? >> that's a very, very good question. it's a very difficult one. you know, but i think essentially, bottom line, yes, the chinese would probably love to be able to diversify out of the dollar because they're worried about the strength or i should say the possible long-term weakness of the dollar here. but at the same time, they'll realize they can't do it. that is undermining the dollar.

but it's interesting here that we didn't get perhaps more out of those talks than were going on in washington earlier this week in which perhaps the chinese might have been trying to put pressure on the u.s. to try and talk the dollar up a little bit. and i think this is what some people might have been expecting at that meeting that we didn't really get. so i think there will be a lot of trading going on between the u.s. and china on this whole currency issue. especially it's difficult especially at a time when still both sides are gauging the strength of the global economic recovery. you know, how good is the u.s.? how strong is it? does the u.s. need to continue? we're in saens putting up with a weaker dollar because, hey, it's pretty good for the u.s. exporters and that's going to be one of the things that's going to help the u.s. economy. so, you know, it's a very difficult -- a lot of trading going on here. and i think the stuff that comes out from these meetings obviously it may not necessarily

imply or tell us the full story of what's going on behind. >> you see, you have special insight. there you go. thanks for that, nick. nick hastings southbound senior correspondent dow jones news wife. coming up next on "worldwide exchange," we will continue to bring you stock stories and making headlines across the globe. and top line growth cap germani to take a hit. we'll speak to the cfo in ten minutes. we know why we're here.

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i'm christine tan. in asia, shanghai stocks finished higher after plunging yesterday as china central bank reaffirms its loose monetary policy. i'm ross westgate. it's super earnings day here in europe, seeing signs of stabilization. i'm bertha coombs in the u.s. super thursday, as well. investors are bracing for news on unemployment claims, exxon for earnings and the another big treasury auction. if you're just joining us in the united states, hello and welcome to the start of your global day with "worldwide exchange." we broadcast live from the u.s., asia and europe. here in the u.s., a very busy

day ahead. we've got an upgrade of general electric shares, parent company of nbcu and cnbc. that is coming from goldman sachs. right now, about 60 points above fair value. we're going to get information on earnings from exxon ahead of the opening bell as well as dow chemical. we heard from the basf cfo in the last hour. his outlook, not very good. we'll see what dow says. taking a look at the ten-year bund, that's a mixed bag. we're getting confidence and sentiment numbers that have boosted for july. but unemployment adjusted for germany in july. actually fell. that was unemployment rose, joblessness rose and the ten-year bund right now, 3.64%. here in the u.s., investors bracing for the third massive offering of debt this week. so far, two out of three have not gone well. today we've got a $20 billion

year seven-year offering at 1:00 new york time. of course, ross, ahead of the open this morning, we will get the unemployment claims, which are likely to set the tone. how is market reacting in europe to this mixed news on the economic front there? >> we just got business consumer confidence in the euro zone. it's improved for the fourth straight month in july. the economy continues to slow from those record low levels of activity. and essentially, the july consumer confidence minus 23, it was minus 25 in june. slightly better than the consensus of minus 24 at the moment. the economic sentiment indicator, 76 in june at 73.2 and slightly better on the economic sentiment indicator than the forecast of 75.3. the euro just perking up from that back earlier by worse than expected german jobless daid data. on the equity markets, though, we seem to be heading higher. the ftse cnbc global 300 up 21

points. the latest data is up to the session highs, ftse 100 up 0.8%. up 0.5% for the xetra dax. cac 40 up nearly 1% as well as the smi. a little weakness in media, chemicals and travel and leisure, basf is the biggest loser today. we spoke to the cfo earlier. he said it's very hard to talk about any improvement by the end of the year. and that's echoed by vw earlier today. they said we can't actually at this point still give an indication of where we think earnings will be by tend of 2009. on the currency market, that plays out and the dollar/yen absolutely steady. 94.97. euro slshl dollar, still below 1.41. cable is now over 1.65, christine. >> hey, ross, i want to briefly mention some things coming off the wires right now about china saying it will seek a bigger say

about international commodity pricing. china will continue to push forward quarter, gas and oil pricing. speaking of china, we have chinese stocks rising 1.7% after webs's massive 5% drop. we have the and use market tools to sustain credible growth. china's banking regulator said it is monitoring loans. strim production rose at its fastest pace in nearly a century. the kospi up 0.7%. the nikkei 225 up 0.5%. nymex light sweet crude, we are watching that, as well. we saw a sharp drop yesterday from 6%. hovering around the $63 range. nymex trading at $63.62. brent should be trading a bullback, as well, 59 cents

higher, $67.12 a barrel. ross. >> so the market spent july on a sugar high, according to pimco's month ham eld el-erian joining us for her thoughts after a visit at the beatles center, i hope you enjoyed that. >> it was wonderful. >> are we just on a sugar high? >> i agree with mohamed el-erian's discussion about the sugar high. right now, the major market indices are about halfway between the october 2007 highs and the march 6th, 2009 lows. and we believe there's going to be a w-shape recovery, particularly in the equity markets and we're now on the top end of the second part of the top. >> top of the middle part of the w? >> yes. and we're looking for a 11%

retracement on the dow and the s&p -- >> that's pretty exact. >> well, looking for back to 8,000 on the dow which those levels were reached earlier this year nrt second quarter and about the high 800s in the s&p. >> emily, it's bertha here in the states. how troubling is what seems to be a lack of appetite for these huge bond issuances? we're very early on in. we've got another one today and next week we've got three, ten and 30 year. >> it is troubling. it's not extremely troubling, but when you think that the u.s. is on track for a $1.84 trillion deficit by the end of its fiscal year, that's pretty troubling because that's close to the amount of the foreign exchange reserves held by china. so when you think of it that way and, you know, the rates are edging up, it does look like inflation is a little closer

than the fed would lead one to believe. >> and emily, christine here. what does that mean for the dollar? >> well, we believe that the dollar is in a secular down trend. it's had strength this year because it really still is the world's reserve currency. but 65% of the world's foreign exchange, according to the imf, is made up of the u.s. dollar. but we believe that over time, there will be a tripartide global currency that will consistent of the u.s. dollar, the chinese yuan, which of course the chinese are making movements to have that happen over the next decade and the euro or some form of, you know, european currency. >> okay. emily, you're going to stick around with us for the next 45 minutes or so. emily sanders, sanders financial management. also, cap gemini cut its targets this year. after the break, we'll be joined

by the cfo.

the shares of capgemini today are a little firmer, your biggest computer consultancy said that its longer term outlook isn't so bad. that calmed investor's nerves.

the company did cut its 2009 sales outlook because it sees the beginning signs of stabilization in some regions. joining us for moor more is the cfo of capgemini, nicolas du fourcq. thank you for joining us. >> thank you. >> it seemed to be that you were fairly pessimistic compared to the likes of s.a.p. but are you less pessimistic than that sales forecast suggests? >> what is at stake are the earnings of q4 which is why we remain relatively cautious, i would say whereas before it was

between mine yun one basically and minus four. we will see more and more how we can end the year and start the next year. what is for sure is that our operations on the bottom out basis think that on q4, it could be the beginning of a rebound. we the management yield the company prefer to remain cautious. >> okay. seems sensible, i guess, in this environment. the operating margin has declined a little bit. what are you saying is going to happen to the operating margin? >> what is striking for the first half of the year, you know, is that we are dropping 2.2% in revenues. we are dropping only one point in margin whereas last year h108 and h107 we were growing 8%. which shows the extreme resilience model of the new capgemini, i would say, and we'll see that again in h2.

we guide the market on an h2 at basically 7.5% of operating margin. it's a conservative gietance. but it's the resilience of the group, as well. >> we saw some headlines from your ceo saying that the company would like to make some big acquisitions, but you're going to wait until the economy stabilizes. why wait? >> that's a good question. actually, what we consistently said was that until we were able to gooit guide you guys for h2, we would not do significant acquisitions, which was sort of an ethical request and duty. now time must go to come back on the ek sigz. but it's true that it is

possible that h2, h1010 will see the back of a significant operations on the market. so we've got to be prepared for that, also. that doesn't mean that we are preparing anything today. that is what paul wanted to say, i suppose. >> mr. dufourcq, do you see government spending programs anywhere in the world crowding out private investment or do you believe that public and private spending can coexist successfully? >> well, i think if you can consider capgemini has a sort of thermometer of the business in 35 countries in which we are, it's true that we see in most of the concern countries a surge in the public spending and i.t., which is very good for us because we are well positioned.

our number one in public service is in france. we are very well positioned in great britain. 75% of our business in great britain is public service, you know? and we are starting successful public service activity in north america. we see big deals on the market. we sign big deals. we see challenging technological views, which is something that interesting us a lot. we would like it to go to 35%. >> very good. will this change how computing is done and how it's paid for in the future? >> i think part of what we call in our business infrastructure management, it's going to take a bit of time for cios to go that

route so what is hot today on the market is i would call it cloud consulting, which is answering the question of cios on how can i do that, what part of port fallos can i transfer, what can a cloud internal, external open, public/private clouds and so forth. a lot of clouds on the market. we are at the beginning of the learning curve. so we are starting to evangelize our customers. moving on, president oh boom ma's approval rating is slipping. it stands at 53%. that's down from a high of 61% in april. and about the same as president

bush's rating during his first year in office. about 49% approve of how president obama is handling the economy. 41% on health care. similar to president clinton's health care reform plan back in s 1994. the top issue on americans miebz right now? job creation, economic growth, the deficit and then health care. the company saw a $108 million loss in the second quarter for capitalland. but the ceo told cnbc that improving investor sentiment should bode well for its company's bottom line in the months ahead.

>> i think if the economic condition does not further, i think there's a good chance for us to go back to profitability. >> and you can catch the full interview on asia "squawk box" tomorrow, 0220 cet or log into cnbc.com. ending the session lower by 0.25%. >> and still to come, how are the gaming giants coping with the downturn? those companies plus many more in a busy earnings day in our global stock watch.

busy earnings day around the globe today. we're going to bring you up to speed with what's happening on the stock markets. >> thanks, ross. the ftse 4u7b is managing to have a bit of speed. we'll get further into the trading day. overall, markets here in the uk higher by 1%. the real standout gainer this morning is bt, which has come out with its earnings this morning. first quarter profit fell, but fell less than expected there by beating consensus, risk rating the outlook and that is helping the stock of bt which is by far the standout gainer on the uk markets today.

also we've heard from bskyb today the tv broadcaster. they beat soervel levels, including the net dmcustomer editions. now, earlier on here on cnbc, we spoke to andrew griff yith, who is the cfo of the company. here is what he had to say about the consumer growth. >> it's continued steady growth. we don't have a crystal ball, but we've traded well in the last four quarters. and we see today why that should not continue in the fourth quarter and beyond. >> the shares of shell are on the move as they reported earnings fell but not by as much as analysts had expected. shell also beating on the earnings basis. let's get out to patricia now and find out what's going on on the german markets today. >> we are volatile today. to be honest with you. now we are up quite positive. up about 37% for the dax.

volume is picking up from yesterday anticipates level around this time. of course, it is a huge reporting day. siemens coming through with their numbers. really kind of convincing when they stay on profitability. definitely giving us a bit of a base out here in germany. but basf coming through with disappointing numbers, disappointing outlook and really just warning on the full year profit saying there's not much more good to come from the second half of this year. down about 4.5% and also the ceo, cfo interview we had during the show earlier on did not manage to pull this share out of negative territory. m.a.n. after the numbers and the outlook is disappointing and trading down about 3%. now over to italy and milan and claudia. chow.

>> chow, patricia. this market is trading higher by 190 points here. again, a positive session. earnings season is helping this market here, but there are low volumes and a lot of caution on this market that seem to continue to prevail. the stocks that are performing well today are performing on earnings. pirelli is the best stock here. that tire hit was hit by the slowdown in the auto sector so they did register a decline in revenues, even though quite slight, and a loss in 12 million versus the loss of 9 million in the first quarter. but they confirmed their 2009 full year target and the ceo made comments about the turn around of the company. they have been in a strong restructuring. those accounts are positive. si mecamy, the numbers are decent. they put in a number of $242 million in line with

expectations. but the stock is a bit down along with the auto sector. today we'll get news out from media set. once again, today we're looking at earnings. a lot going on here in terms of earnings. we are in positive territory, though, higher by 0.9%. let's hear what's going on in singapore. christine. >> thank you for that. asian markets are seesawing their way through the boards today. shanghai stocks slipping in and out of positive territory to eventually ending higher after the chinese central bank reassured investors it will keep its loose monetary policy. the shanghai composite closing up 1.7%. the hang seng closing up 0.5%. in japan, the market was lifted to a nine-month closing high.

0.5% higher on the nikkei 25. in the tech space, we got a mixed bag of earnings after the bell. we have sony beating forecasts after it posted a smaller than expected quarterly loss. meanwhile, we have nintendo disappoint, a 66% fall in profits. the kospi ended up 0.7%. 1,534. finally, in australia, the markets surging to a fresh eight-month high led by banking shares. the s&p index ending 1.2% higher. now over to you, bertha. >> thanks very much, christine. today's calendar here in the states, top heavy westernings, but the big piece of economic data we get every thursday, we've got weekly jobless claims due out at 8:30 a.m. new york time. they are forecast to rise this week by 34,000 to a total of 588,000, creeping back up to that six handle. meantime, exxon mobil will be the headliner reporting second

quarter results. that's expected at about 8:00 a.m. new york time. profits forecast to have dropped by about 57%. the bottom line being cut by lower crude prices and a glut in energy surprise. also recording ahead of the opening bell, travelers, the newest xoept in the dow jones trial afghanistan. we'll hear from likes of barrick gold, kellogg, eastman kodak, international paper, mastercard and motorola on tap before the open. walt disney will be the headliner after the close along with metlife and genworth financial. of course, we are going to get another massive debt offering. that's your global stock watch. but we have a lot to come here on "worldwide exchange." in recent nbc/wall street journal poll, 58% of respondents said the u.s. economy has not

hit bottom yet. we'll discuss those results and our strategy panel coming up in just a few memberships after the break.

it's a little past half past the hour. in the u.s., ininvestors are bracing as they await news today on unemployment, exxon mobil earnings and another big treasury auction. >> here in europe, it's super thursday for earnings. big names like alcatel-lucent saying they're seeing some signs of stabilization. >> and here in asia, shanghai stocks finishing higher 1.7% after china's central bank reaffirming its loose monetary policy.

>> we've got down futures right now. we've got an update on general shares. they're now saying they don't see as much fear that regulation will force ge too much to spin off ge captain. we'll going to get earnings from exxon mobil and we will hear from disney after the close. taking a look at the ten-year yield, we've had two for three of the offerings this week not going very well. today we've got an $8 billion offering of seven-year notes. that will be watched closely. ahead of that, we'll be getting unemployment claims. they are expected to rise. they should set the tone. we've got the ten-year yield inching back up to 370 at the moment. ross, you're forgetting mixed data there in terms of how

people feel about the economy. yet in germany, it looks like a bit of a setback. >> jobless numbers were worse than expected for germany, but july consumer confidence figures for the euro zone up for for straight months in a row. it is better, only marginally. up 0.75% for the xetra dax. they're very pessimistic about at the moment. dollar/yen is steady as a result. sterling is around the 1.65 level against the dollar, christine. >> hey, ross. here in asia, markets in asia ended mostly higher. the early news about china faded into the back drop as investors jumped in for profit taking.

in the end, the shanghai composite ended up 1.7%. the nikkei 225 is up 0.51%. honda and nissan posted a surprising quarter lifting the nikkei to a nine-month high. in terms of oil, let's take a look at how the oil market is concerned. nymex light sweet crude is up 53 cents. it was drifting towards the 63 mark after that jump in crude stocks. brent also tacking on gains. 88 cents. $67.41 a barrel. bertha. >> thanks, christine. so let's talk strategy now. joining us is doug roberts. he's the founder and chief investment strategist at channel capital research.com and still with us is emily sanders. she is our guest host this hour. mohamed el-erian yesterday on

"squawk box" said he feels like the july rally is a bit of a sugar high. the mood mood seems to be glum. maybe the recovery is going to be pretty darn weak. >> my thought is if you pull a beach ball down far enough below the water, you'll have a fairly violent uptick as it pops through the surface. that's what we're experiencing now. i said this a couple of months ago that i think the s&p could probably hit 1,000 or more and i'm still sticking to that. simply because right now it's a matter of earnings and expectations. it's a way of dealing with earnings growth. they're dismissing the revenue

growth aspect of it for the future. as a result of that, if you don't have any economic land mines, you're going to have this back and forth. but as long as there's nothing major, you'll probably continue to drift up. but the real question is, what happens when you get past the earnings comparison. that's where essentially the rubber hits the pavement. even if you look at it, everybody is saying a bull market begins prior to the end of the recession. there was one important exception to that situation and that was in 2001. the recession ended in november and we had a fairly spectacular bounce. but then reality set in 2002 and until really the employment situation starts to stabilize, it's going to be very, very difficult to maintain anything more than -- let's say in advance from the 1,000 to 1,100 range.

people will wonder what you're doing for an encore. >> emily, are you in that camp? do you see things getting quite that bad? could we actually have a down year? >> we do believe that the year will end up. but in the meantime, we're going to retrace half of the gains that we made, which was pretty much a gift since march 6th. you know, the market average is up 30%, 40% since march 6th. really, the gains are going on air, on fluff. and as mohamed calls it, a sugar high. if you look at the fundamentals, housing still hasn't hit a bottom despite the most recent case shiller numbers. unemployment will probably hit 11% in the u.s. people who are unemployed aren't consuming. and, therefore, we believe that -- and agree with doug roberts that once the numbers actually settle in and the easy

earnings comparisons are behind us, we'll see that there will be a second leg down probably about 11% in the dow and s&p before things start going up again in somewhat of an l-shaped or -- an l-shaped economic recovery. >> and i wonder, doug, source o mortgage trouble, which had been because of lending standards in those subprime mortgages is now being exacerbated by rising unemployment. energy demand is weak and industry costs remain high for shell. the current supply cost earnings for 2.3 billion versus 7.9 a year ago. shell says it made cost savings of $700 million in the first half of the year and has reduced have management positions and expects to make further substantial staff reductions. shell is, though, increasing its

dividend payout by 5% a year ago, the stock just off by 1% a moment ago. christine. japan's nintendo saw a 66% slump in its quarterly profit way down by slowing demand for its wii, strong demand. for the april to june quarter, operating profit came in at $426 million missing analyst estimates. nintendo is sticking to its full year guidance, up a 12% fall in profit. shares of nintendo ending the day 276% higher ahead of the results 26,810 japanese yen. ross. it's a special day on "squawk box." what am i saying? every day is special on "squawk box," becky.christmas, but today, ross, we have a special presentation. we're making a house call to try and tackle america's health care crisis. we're talking about howard dean, doon donna shalelay, they're all

joining us today. also the insiders of cvs, walgreens, plus the pharma industry's leader, willie tossen. we're talking about patients and doctors on the front lines, what they're hoping for, what they worry about. we're going to get to all of it today. of course, there is wall street's daily business not to be forgotten here. early components, travelers and exxon mobil. we get a handful of other issues this morning, we're talking about international paper, dow chemical. there's a lot of things happening today. we will not miss any of it. ross, squawk is coming up at the top of the hour. would you do a favor for me? >> yep. >> would you pass a message on to bertha for me? >> yeah, okay. what's the song? ♪ it's a small world after all it's a small world after all ♪ don't get it stuck in your head in the meantime.

but i just looked at the lyrics, and i'm going to have them all for her ♪ it's a world of laughter a world of cheer ♪ >> she's so nice, so nice, so evil. unbelievable. thank you very much for that, becky. >> i have to plot my revenge. >> analysts are expecting profits at exxon mobil to be backed when it reports the second quarter earnings this morning. could there be a surprise? stay tuned for a full preview of the day ahead, coming up right after the break. cccccccccccccccc

let's get a look at the day ahead. doug roberts is with capital research.com. doug, we've got the futures pointing higher. what is the bigger factor here? is it that goldman sachs upgrade of general electric? >> i think it's the goldman sachs upgrade. it's markets trading on expectations. a lot of the earnings are kind

of priced into it right now. what people are now looking at is the quarters ahead and starting to see is their stabilization, what's the outlook, what's the positive and the ge concerns, the big ones are really the major ones and just like when we saw earlier, with meredith whitney upgraded goldman, upgraded major firms of the street, that has a very, very positive effect on the market and the meltdown effect that we talked about before. >> hey, doug, what about a lack of participation in the bond market, is china to blame? >> i think right now it's a question of indigestion. you have a lot of coming into the market in a short period of time. you also -- there's also, i guess, uncertainty as to what the chinese are doing. i think we saw that with the equity markets overseas right now where there was fear of chinese tightening.

but as soon as that dissipated, the markets started to go up again. so we're having a similar expectation with the treasuries. but right now since you're seeing a series of treasury offerings, it's kind of as somebody breathes a sigh of relief with the -- the first one, tier worried about the next one. >> thanks so much for joining us at this hour. that does it for us. i'm bertha coombs here in the u.s. >> i'm ross westgate here in europe. >> and here in asia, i'm christine tan. thanks for your company here on "worldwide exchange."