welcome to "worldwide exchange." i'm carolin roth and these are your headlines from around the world. a cover foreign invasion. the french foreign minister warnings a russian envoy headed for ukraine could be an attempt for something else. earnings disappoint. the ceo of the consumer giant tells us geopolitical tensions are likely to impact the business going forward. >> overall, the economy is shrunk down due to political crisis in eastern europe and particularly in ukraine.

>> u.s. secretary of state john kerry urges the new iraqi government to stabilize the country as washington embraces a new prime minister as a positive step forward. friends, family and fans worldwide are in shock today over the death of award winning comedian and actor robin williams after an apparent suicide at the age of 63. >> announcer: you're watching "worldwide exchange," bringing you business new from around the globe. good morning, everyone. let's kick off with the iea report. >> this is the key take away this morning. let's have a quick look at oil

prices as light crude down by 0.87%. brent you're lower by 0.7%. i want to get more commentary from the iaa report. it has been cut to 1 million barrels per day on lower than expected q2 deliveries and weaker imf/gdp outlook. the crude oil supply rose by 300,000 barrels per day to 30.44 million barrels per day in the month of july and that is actually a five-month high. they also say that the oil market today looks better supplied than expected. in the meantime, let's leave the oil market aside for just a moment. i want to get to some flashes from the german economy ministry. they say after a strong first quarter, the economic momentum

will slow in the second quarter. this should be be a big surprise, especially because of germany's huge exposure to the russian economy. the german economics ministry citing the weak ps in the eurozone and, of course, the geopolitical developments as i've just mentioned. they say the underlying positive economic trends, though, still are intact. and, of course, we're going to be getting the second quarter gdp numbers for the eurozone and for germany, of course, on thursday. and that is likely to show that the german economy has stalled in the second quarter. just remember italy has slipped back into recession. on today's show, we speak to the ceo of prudential after they come out with their second quarter earnings report. have investors still got a sweet tooth for candy crush? we take a look at the second

quarter earnings. and building the blocks have expanded as we anltz the online retailer as they beef up its bricks and mortar strategy. all right. let's take a look at these markets roughly one hour into the trading session. and after yesterday's bounceback, well, we're looking a little bit more tepid this morning. the stoxx europe 600 index just modestly in the red. we open up with losses to the tune of 0.3%. not a lot of conviction in these markets. we're going to be getting the zew indicator later on this morning. and, of course, in the next couple of days, we get huge macroeconomic news from japan, from china and from the eurozone. maybe that will give the markets more direction. the xetra dax down by 0.2% after

that huge bounceback yesterday. the xetra dax is now in correction territory, down 11% from those record highs. the cac 40 off by 0.5%. the ftse 100 pretty much flat. we're going to be focussing on those prudential numbers which would be out imminently. retail sales bouncing back by 1.3%. quick look at the currency markets, we're seeing the u.s. dollar down by around 0.2%. 1.3362 ahead of the zew numbers. and the dollar seeing a little bit of strength against the japanese yen, 102.28. the pound, though, 1.6772. not big moves. german consumer giant hinkle has warned the slow downs due to the crisis in russia and the middle east after reporting an increase of 3.3% through june. the ceo said he remained happy

with the earnings despite the geopolitical tensions. >> overall, the economy is slowing down due to the political crisis in eastern europe and particularly ukraine. it's more eastern european scenario. but at the same time, we also went out and confirmed the outlook for the year of 3.5% growth and high single digits eps growth earnings. we're actually quite heavy with the quarter, despite a charging political environment. let's get back to the oil markets. oil prices are almost early calm in the face of mounting geopolitical risks. that's according to the latest iea report which said weak refinery runs were helping to offset concerns in libya, iraq and ukraine. let's talk to gareth lewis davies from pnb paribas. gareth, i want to get your take on the oil prices. we saw a huge jump in oil prices. this time around in august,

again, markets are very sanguin. why is that? >> i suppose after the initial shock of the gains by isis, it soon became apparent that oil supplies weren't affected by the conflict. so this led to a sell-off following a temporary regard price run. the other thing is that the the market's fundamentals according to the iea report released today is that there's ample supplies, particularly in the basin. this led to an increase in stocks held by the developed economies. and also we've seen lower or weaker demand in the second quarter. that may be due to low economic activity, but also perhaps lower use of crude in refineries particularly in europe, where we

have seen some cuts. so the world appears amply supplied with crude at the moment and this is a separate issue from the geopolitical issues that are continuing. >> gareth, i want to come back to kurdistan at the moment. it does account for 10% of iraq's oil output. >> exports from kurdistan north to turkey have been disrupted since march. so in terms of changes in supply, there's been no impact as a consequence of the events that took place in june. where it may be impacted in the longer term in terms of how planned restarting the pipe lines might be put on hold as a consequence of the unrest there. that is an issue for a year or two down the line. perhaps what's more pressing is

the extent to which oil supply in southern iraq could be affected by events. and i suppose in the initial take is that isis is not affecting production from the area, but we've seen in the past week a dispute between the current prime minister and the -- shall i say the prime minister a fellow. and the conflict within the community based in june, clearly concerned around that supply starts to grow. but at the moment, i don't have concerns about production from southern iraq. >> let's switch from the supply side to the demand side. the iea lowering its global oil demand growth once again and it's interesting, in one of its previous reports it talked about a pick up of demand coming from china in the second half of the year. at what point are we seeing upgrades to the global demand growth? >> there are seasonalities towards demand.

in the second half, we should expect oil demand to increase quarter to quarter. we should require that to increase production which is willing and able to do so. we often look at things as a year on year. and what this report says is that the expectations of oil demand grows in 2014 as a whole. year on year. slightly lower than they were saying last month. and so there is a portion in that regard. but next year in 2015, they see an acceleration in oil demand growth. they see oil demand growing faster than supplies for the first time in a number of years, which means that it's protecting prices in 2015. but it's the case of what happens over the next few months. uncertainty and as a consequence we may see a shift in oil prices to force some higher prices

towards the end of the year. demand increases quarter to quarter. >> gareth, we're going to leave it here. thank you so much for your time. appreciate it. let's get back to one of our top stories. u.s. secretary of state john kerry has urged the iraqi government to move forward with steps to profits commitment to stability. >> we are prepared to consider additional political, economic and security options as iraq starts to build a new government and very much calculated to try to help stabilize the security situation, strengthen the democratic institutions. those would be the guidelines. >> usair strikes have slowed the advance of islamic state militants in northern iraq while aid drops have helped ease the

humanitarian crisis. there is now a political crisis adding to the fears the country may be unraveling. nbc's kier simmons filed this report. >> reporter: this is why the u.s. is involved in iraq again. thousands of desperate refugees, swarming helicopters, scrambling for aid after being stranded for days without food and water in the brutally hot mountains of northern iraq. religious minorities, including cities and christians driven from their homes by isis militants, some protesting outside the u.s. continent. >> they would they will slaughter them just because we are christians. >> many of the refugees walk to safety from their mountain refuge, exhausted. somas is sick.

she that's two more boys. both are missing. this place is disty taught. >> this is not a place for children. nothing short of a humanitarian disaster. these people were displaced from their villages from one day to the next and came with only the clothes on their back. >> usair strikes have helped rescue the refugees, taking out isis militants, taking out artillery and vehicles. some of it u.s. made captured by isis from the iraqi government. in bath, meanwhile, a political battle. prime minister nuri al maliki on television today refusing to give up power after a replacement was named ahead of a proposed unity government that could effectively stand up to isis. maliki supporters protested and military forces loyal to him took up positions across the

capital. there were fears of a coup. fears that threaten to tear this country apart with the innocent, young and old, caught in the middle. u.s. government forces say that u.s. arms and ammunition are being supplied to kurdish forces and the pentagon says those air strike res not likely to stop isis in the long run. i want to get back to the russian situation. russian ewe man tearan aid will be accompanied through the northeastern ewe krad to the city by osce representatives. this is according to the ukrainian mediator who is quoted by interfax. so this is the latest we're getting out of russia. remember the french foreign minister has said on tuesday this morning that the russian convoy of 280 trucks en route to ukraine could be an attempt by moscow to install a permanent presence in the country. it could be a cover for an

incursion. still coming up on the show, are the funding yields greener than the bond market? we investigate growing fixed incomes to finance the green economy. stay with us. in india we have 400 million people who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer. a smarter energy system is made with the ibm cloud. the ibm cloud is the cloud for business.

we just got earnings from prude prudential. first net profit 1.15 billion pounds. first half of the income was up 24% to 764 million pounds. and if we're looking at new business profit, 1.015 up 24%. i want to take a look at the operating profit. 1.521 billion pounds, up 17%. seems to be more or less in line with expectations. specifically if you look at the dividend, 11.19. that is an increase, up 15% and this is what analysts had expected. strong economic growth and significant and rising demand for insurance from a rapidly growing increasingly prosperous

middle class in asia. so very upbeat comments coming up from the company about asia. stay tuned. coming up, we'll be talking through the numbers with the ceo of prudential, coming up at 10:30 cet. certainly don't want to miss it. turkey should have a new prime minister within weeks to replace the country's newly elected president. the governing party will make a decision by the end of this month. geopolitics will be a new challenge for the prime minister. turkey sits in the middle of some of today's most volatile hot spots. iraq and syria are just across the border to the south. hadley gamble looks at turkey's relationship with russia. >> as russia turns east to fill the void left by western sanctions, turkey at the historic crossroads between east and west now stands to reap the benefits. what agricultural ex sports to the world's ninth largest

economy already averaging more than 1.9 billion per year, some in turkey say that number could more than double despite the fact that this year's harvest was hit hard by drought and the russian windfall comes at a good time, too, as militants spread east wiping out cross border trade with syria, threatening kurdish allies and taking a toll on the export market iraq. given turkey's enthuse aft it response, turkey is a member of nato. they're trying to gain that long awaited membership status. but it isn't that surprising when you look at the energy equation. hurricaneky has an enormous appetite for russia's energy. turkey made russia the country's number two trading partner second only to the european union. and so as turkey looks to satisfy russia's appetite for new markets, once again, it seems that profits trump politics and that should give wiven leaders food for thought.

let's get out to hadley gamble who has been covering the election issues for us. this is a delicate relationship, isn't it? >> it is, carolin. essentially what you're looking at for turkey, this is one of the fragile five economies. and at the same point, you know, when you look at the relationship that the russians and the turks have traditionally had, they've had problems over the annexation of crimea, for example, so a lot of politics in that relationship. essentially what you have here is profits trumping the politics. this isn't something we haven't seen before, at least from the erdegan government. mr. erdegan taking any opportunity to rant about the israelis, to rant about foreign policy, what's happening in gaza, to complain about the israeli lobby. but essentially the trade between israel and turkey has never been better. billions of dollars in trade, 250,000 israeli tourists came to

turkey a alone. a pipeline from israel to european markets and they would do so via turkey. so lots of things in the pipeline essentially for that relationship. despite the fact that he may be saying one thing, he's also working the other side. >> all right, hadley, thank you so much for that. moving on, a truck carrying aid for eastern ewe krad has left moscow according to a russian news agency. ukrainian president petro poroshenko says barack obama has backed his call for the international red cross to back a humanitarian mission. he warned earlier this morning that this could be cover for a more permanent incursion in

ukraine. so how big is the spillover effect of russian sanctions on moscow's economy? our next guest says russia has already entered a technical recession and business and investors is likely to take a further hit. we're now joined by craig, an emerging market economist at schroeder's. just want to get your instant reaction on the comments from the french foreign minister this morning. do you think this is a cover for a bigger incursion into ukraine? >> i mean, the russians have been positioning themselves for quite a long time. so it certainly does look suspicious. we'll have to wait and see, i suppose. so i wouldn't be surprised if it turned out to be more than meets the eye. >> you say in a recent note that the russian recession that is looming, the country has now effectively entered a technical recession. but we don't even see the effect of the retaliatory sanctions in

terms of the increase in food prices. just how bad is it going to get when you look at the inflation prints of the country? >> inflation in russia is really quite high, about 7.5%. but these two titans, which have been applied, i don't see push up the number of prices, the key dairy, livestock and the rest. and the russian consumer has already been struggling. sales and consumption has been fighting off russian production. so what you're going to see now is a continued diminishing of -- power and social income in russia which is going to further weigh on productivity. >> this is a real conundrum for the central bank. it seems as though right now they're fighting inflation. on the other hand, you've got very, very weak growth. is there anything they can do?

>> on top of the inflation issue and the growth issue, the problem now the banking system is going to be -- domestic, the eu sanctions have proincluded them from seeking finance overseas in many ways. and they've got about $80 billion this year in which the central bank is supporting another drain. and so the currency at this time is going to be sustainable on the longer run. this with any support for growth on the fiscal side and, again, the fiscal side is a bit shaky. >> craig, what are some of the knock on effects from that russian crisis on central and eastern europe? if we look at the polish numbers, are you concerned about

other countries entering a recession once again? the economy has been surprisingly strong over the next couple of quarters. >> they will be hit and contacted from the link but it won't be as significant as you might think in the geographic possibilities. through a reduction in germany disrupting potentially more serious. they'll have to see where the german economy is headed. certainly at the moment, it looks like the impact on sentiment could be a bit of a struggle. >> let's take a look at the emerging market export recovery, which is also written a piece of research on are we nearly there yet? this is the question that you have posed. there's been so many, do you think it will be one this time around? >> so i think what you need to be -- in emerging markets is look at it on a regional basis

raen across all emerging market. so asia and central and eastern europe, for example, have done better than latin america on an export recovery basis. and that to this point has really led the way and that's been the course of this german strength. but now with a potential sense of weakness coming through in europe, you question the senior region, as well, on the export side. but you are having signs of a recovery in the u.s. and that should drive the developed markets in asia. it has been stronger than expected, as well. >> craig, thank you so much for your time this morning. still to come on the show, prudential shares move higher at the bank of h11 earning to help offset european head winds. that's coming up after the short

break. don't want to miss it.

prudential shares jump to the top of the ftse boosted by strength in asia.

we speak to the ceo in just a few minutes. a cover for an invasion, the french foreign minister warns a russian aid convoy headed for eastern ukraine could be an attempt by moscow to install itself in country. falls to the bottom of the german market after earnings disappoint. the ceo of the consumer giant says geopolitical tensions are likely to impact the business going forward. overall, the economy is slowing down in eastern europe and particularly in ukraine. >> friends, family and friends worldwide are in shock today over the death of oscar winning actor and comedian robin williams after an apparent suicide at the age of 63. let's have a look at european markets. once again, we are lower. i guess that risk bounced that we saw in yesterday's trading session, remember, the dax, up by almost 2%. that didn't last long.

the xetra dax this morning is off by 0.4%. the ftse 100 holding on to the flat line. prudentan shares are rising by 2.4%. the ftse mib is higher by around 0.5%. once again we're focusing on geopoliticals. i've already mentioned it, prudential is trading higher after reporting net profit 1.5 billion pounds this year. offset eurozone political challenges. i'm joined by tijan tiem, ceo of prudent yam. good morning to you. good morning. >> shares higher. are you as pleased as invery fasters are? >> we are facing one of the most challenging environments for companies. we have had significant headwinds in some of our key asian markets. we've seen events in indonesia,

in china, better on the region. and we have in the uk, as you know, have some major disruptions, the budget announcements and the fact that the uk you've got 10% in profits. it is remarkable. not only offset the decrease of 43% that more than compensated and produced fantastic -- it's our best performing business in the uk business in the very part of that. >> that's quite interesting given the regulatory changes. i've got to ask you about the impact of the currency, going into the numbers, reading analyst notes, this is what they were primarily concerned about, the impact of the strong pound/sterling. it's not really affecting you based on the numbers, is it? >> because of the misunderstanding, you think

about an insurance company, we collect money and rereinvest it locally. we're very careful not to take any of the resources we raise. so between our assets and our liabilities, the thing is, because we're a big company and because a lot of big manufacturing companies -- everybody expected us to be. but we are insulated from that. the local currency is not important. >> so report back in sterling. >> but if you wish to measure the performance of a business. we measure a uk business in british pounds. people have to afford us the same luxury in malaysia. that's what determines how much more activity we've had. and those numbers are very strong. now, when we convert that in sterling, what we do is hedge and we see that the cash flow in sterling have gone up 15%.

so we are able to generate a very good performance because of that, but that's because we have no economic exposure to fx. there is no mismatch. >> so you've got the natural hedge and you've got the financial hedge. >> exactly. >> i want to come back to one of your biggest markets, indonesia. jakawi has won the elections. have you had any indications of whether that has boosted markets or is it too early to say? >> i think it's too early to say. sentiment is very positive. if you stop everything that has happened in asia, it is good news for the economy and for the world. to have a democratically elected president in one of the most popular countries in the world, over several time zones -- is very good. this year is a condition year. business has been flat, but we expected that.

because when people are busy dealing with an election, making long-term decisions, a 20-year policy is not your most pressing decision. so on the one hand, we fell sharply, but the climate is improving. q4 we think will still be a bit slow because it will be late august. but after that, we expect a big tailwind. in india with the election, it will start improving in malaysia. >> okay. i want to ask you about your assessment of the world economic growth right now. we're seeing mr. fisher talk about disappointing global and u.s. economic growth. you're doing pretty well in your u.s. business, but i just wonder to what extent you think there are cracks in this recovery. >> well, i think on the positive side, there is definitely a recovery. we see the u.s. strong and we see productivity improving in the number of places. but a big cloud is ready for us,

interest rates, qe, when interest rates will normalize and at what speed and at what magnitude. but net-net, we think the world economy is much better than a few hours ago. >> okay. i just want to ask you about your uk business, as well. you said that was actually surprisingly robust in light of all these regulatory changes. now, steep decline in annuity sales is something we've seen across the board. to what extent can you compensate that? >> to a large extent. because we think we create a better environment. every time consumers are given more choice, that creates -- for compani companies. financial innovation in the uk and western europe. we've got more measures, 440 billion pounds to define contribution intentions. that's why lobbying for the treasury. it will allow people to save

more in an efficient way and we're going to see those flows coming through. it will allow people to drill down their own money. so very strongly it has sort of doubles. so there are upsides in different places. the uk is the second largest market in the world. >> yeah. >> that's a big responsibility. >> finally, before i let you go, you hide your dividend once again. you're returning so much cash to shareholders. is there no better use for that cash? >> to be honest, we're not returning that much. the yields remain around 3%. so we are -- to reinvest, we just announced we did a deal with standard chartered less cash going into asia and returns are more than 20%. very, very good. >> you hear the ceo saying their yield isn't actually that high. thank you so much for that.

and shares of uk based -- are rallying after jumping a first half profit. and a growing network of restaurant partners. showing the markets after posting a 4% rise in second quarter profits. the company raised its full year guidance saying it expects revenue over 11 billion danish krona. shares reported a 60% drovt in first half profit and remained cautious on its outlook. interest rates for the japanese

government bonds are at historically low levels. japanese life insurers are moving away from government bonds and securities and infrastructure projects. we have the story live from tokyo. >> hi, carolin. gentlemen, japanese government bonds account for about 44% of the combined portfolio of the 43 life insurers in japan. interest rates remain low. they are struggling to provide clients with the promised return. the top four insurance providers for profits from the april to june quarter shrank 4.8% on the year, making a move into foreign securities critical. diachi life plans to boost purchases by $4.7 billion this year and plans to increase its allocation. the life insurers are turning to investing in infrastructure projects. nipon life has put cash into bonds issued by the export bank of malaysia and in a uk fund

that finances infrastructure projects for schools and hospitals. sumioto life will spend around $490 million in foreign currency loans for overseas m&a as well as investments in bonds, infrastructure projects and emerging markets. carolin, back to you. >> thank you so much for that. let's give you a look at what's on the agenda in asia tomorrow. japan announcing its preliminary estimate for gdp growth and it's not expected to look very good. most economists expect the economy to shrink by 7.1% for the previous quarter as the sales tax hike continues with demand. fiked asset investment data are out tomorrow. reuters just reporting that the spain ebola priest has died in the hospital. this is according to reports. i believe that he was also treated with the test drug that the two doctors in the u.s. have been treated with, but it seems that wasn't effective.

the spain ebola priest has died in the hospital. let's switch gears. the era of green bonds has arrived. that's according to a report from hsbc which shows fixed income is increasingly being used as a mechanism to finance the green economy. it expects issuance of the so-called green bonds to at least double in 2014 to around $25 billion. bill knight is head of the climate change center at hsbc and joins me now. what exactly is a green bond? i guess there is no common definition for it, right? >> well, right. i mean, the momentum in the green bond market certainly has taken itself away year-to-date. we've already surpassed the level of issuance that we saw in 2013 which was sub-11 billion. but you're right, what does define a green bond? well, there are many different issues that you can look at in

relation to green, but most of them central and low carbon energy, energy efficiency, a movement to a low carbon transport infrastructure. but indeed, this is why we need to see the green bond issuance that we are seeing. the labelling provides a signaling mechanism. what it signals is that entities are looking to finance a sustainable economy and investors have got appetite for the deals. >> why do they have appetite for these kind of deals? is the yield pretty attractive or is it really more about the feel good factor of investing into these green bonds? >> i think it's more about telling how they could demonstrate their credentials as identifying a low carbon economy. so there are many investor coalitions that have looked at how to finance two degree worlds. and they've been looking at that for a while, but they've been struggling to figure out how to allocate assets accordingly. what green bonds do is signal and provide that transparency, that extra level of disclosure

that they're looking for and provides integrity where they're allocating their funds or actually delivering results. >> there has been consistent oversubscription of these issues. i just wonder how do they come here to the conventional bonds? what about the yield? what about the spread? >> well, it varies. i mean, there are many conventional ratings that have been issued. the eib and year-to-date has been significant. and investors really aren't going to take up -- they're not conventionally priced or providing a return that is aligned with their investment perspective. so we don't see the green bond market as a subsegment or an alternative asset chas. it's about disclosure to the existing market. >> but i would assume that liquidity in that market is pretty low right now. and that environment will make it more difficult to actually get out of these bonds if

investors aren't happy with the risk return profile of them. >> you're right, by definition, it's a much smaller part of the market mainstream and there may be different types of investors looking at these deals. some of them, for instance, may be looking for maturity type characteristics. but nevertheless, there is growth to come. while liquidity might be an issue today, we still see going forward whereby the investors that haven't been so successful on getting in on the act now are looking into the future. >> i appreciate your time this morning, zoe knight, head of climate change center at hsbc. still to come on the show, amid signs of economic weakness in europe and the u.s., are financial markets out of touch with reality? our next guest thinks so. find out why. and we're live from california as tributes pour in to mark the life of actor and

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a german economy ministry is

expecting weaker growth in the second quarter after robust momentum earlier in the year. the ministry did add that underlying positive economic trends in germany still remain intact, though. friends of current account deficit has widened to 7.4 billion euros in june from 3.3 billion euros in may. a $9 billion settlement for violenting sanctions against sudan, cuba and iran. likely france would miss reduction targets due to weaker than hoped economic growth. investors have by and large been shrugging off gaps. but now that could be bridged. just how worrying is the state of the eurozone economy right now? we're getting bad news from germany, even, the powerhouse of

the eurozone. >> yes. and i think the numbers from second quarter gdp on thursday will be very weak, probably close to zero. this is a picture we've seen for some time, the eurozone economy close to restructuring, deleveraging. that will take a while. as to certainty in the global environment, crisis in russia/ukraine, but also in ee emergencying markets growing less slowly than this time last year. that means the export side of the economy is not growing as strongly and that has affected global growth. >> but to counteract that, we're seeing the pair which has been consistently below 1.34 now. that has to be helping and there would still be plenty of demand from the likes of china and the u.s., right? >> the exchange is stable, so 1.34, 1.35, 1.37 is not going to change. good news looking ahead would be stronger growth in the u.s.

that is likely to happen. the u.s. is in a strong position to grow with very high profits, with the process that has gn through and a strong labor market. that will hopefully more than offset some other negative factors. >> the imf has repeatedly called for the big bazooka for the big three. do you agree with them? there are declining emerging markets as we saw in the case of the u.s. >> it would be related to potential risk of very low inflation for a long time. the european central bank has said they are ready for all measures. whether it works or not, as you said, asset prices are not as low as they were back in 2009 when the federal reserve ended easing. but a strong impact from the chain of communication in the central bank's policy, we're not there yet.

inflation is lower. very low inflation for a long time will trigger a potential need for quantitative easing. >> coming back to mr. fisher's comments yesterday, he found u.s. and global growth quite disappointing, maybe this is the new normal that everyone is talking about. we'll never get back to the p precrisis level. maybe the u.s. consumer has changed forever. do you think that we just haven't adjusted to that new normal yet? >> very important discussions. and i think the answer is we don't know. we hear a lot about new normals and we don't know what it looks like. what we know is that we've been through a significant crisis and that is it will take a long time to repair from that. we're not sure yet where we are in this. that suggests maybe 2.5% is really what the u.s. can do. having said that, there are strong factors in the u.s.

and household banks that should lend to higher growth. >> in light of this, what do you think is the risk of the policy in the states by the fed or maybe even the ecb, by the boj, by central banks around the world, earlier than expected tightening? >> central banks have been very clear. they are watching the data carefully and we'll respond to two of them. i think on the policy side, communication will come with that. markets are in turn listening to communication. so chances are that this process happens smoothly. >> that's the hope. communication, transparency hasn't always been ideal, has it? thank you so much for that. let's change paths. tributes are pouring in from around the world today after friends, family and friends learned of the death of comedian and actor robin williams monday of an apparent suicide at the

age of 63. i want to get out to nbc's jennifer buerkland in california with more. jennifer, describe some of the scenes that you're seeing there. >> we're hearing in tiburon right in front of robin williams' home, neighbors have laid flowers in front of the gate where he lived with his wife. his wife releasing a statement that says in part it is our hope the focus will not be on robin's death, but on the countless moments of joy and laughter he gave to millions. and there are so much laughter throughout his life starting in 1978 with the popular tv show "mork & mindy," the world according to garpp." his wife is the last one who saw him alive sunday night around 10:00 according to the official police report. he was founding in home here

near san francisco unresponsive, pronounced dead around noon the next day. initial reports called it some sort of asphyxiation and a probable suicide. williams' publicist says he's been suffering from depression of late. he was very open about his past struggles with alcohol and drugs. he had just been in for a refresher course in rehab within the last few months during the summer. we are expecting a news conference this morning at 11:00 a.m. pacific time, a few hours from now. the autopsy will be conducted later on today and with that we will get likely some initial toxicology reports. but as far as any more details on exactly what led to the death of robin williams, we might not hear much at this news conference beyond what we have learned, the most important fact that robin williams is dead at the age of 63 found here at his home in tiburon where he shared

this home with his wife. neighbors say he was an ordinary guy and he was be severely missed. consumer reports gave tegua top marks just last year, but now the influential magazine says the electric car has, quote, more than its share of problems. the model s has impressive stuff, but there are many quirks that can dampen consumers experiences. problems found include the center panel screen going blank and the automatic retracting door handles not working properly. let's have a quick look at how tesla shares are doing in german trade. up by 0.5%. and jeff besozs and mickey mouse may be about more than pricing. amazon has disputes regarding

promotion and product replacement. there are questions about who makes up the difference if amazon loses money when it matches a competitor's price. let's have a quick check off the markets, amazon up 0.05% and walt disney up by 0.2%. chiquita says it will carefully consider a takeover bid by cutrale and safra. chiquita shares ending above the new offer price of $13 a share. still to come on the show, e-commerce site, we'll find out much more about that in two.

welcome back to "worldwide exchange." i'm carolin roth. the ceo of prudential tells us u.s. central bank policy is a threat. >> the big cloud for us, interest rates, qe, when interest rates will normalize and at what speed and with what magnitude. a day after investors turned sour on shares of candy crushmaker king digital, we count down to earnings from the

gaming group. u.s. secretary of state john kerry urges the new iraqi government to embrace a new prime minister. friends, family and fans worldwide are in shock today over the death of oscar winning actor and comedian robin williams of an apparent suicide at the age of 63. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and we've got some data flashes for you. the zeo inest havers sentiment in germany has just hit the wires. we're seeing the euro falling after that german zew index came out. the current conditions, 44.3% versus 61.8% in the month of july. that is a huge drop, and no surprise here given that in the space of the last month, the german index, the dax has fallen

by roughly 1,000 basis points on 1,000 points, rather, on the back of the tensions in russia. the zew is august german economic sentiment index as 8.6 points very 27.1 in july. the forecast was for 18 points. so this is a much bigger than expected drop. i want to get to some of the commentary coming from that zek this morning. they say signs are that economic growth in germany will be weaker than expected in 2014. again, no surprise. this is all something that we heard from the german economics ministry this morning. euro dropping to a session low at 11.3345 after that german zew survey. they see signs of german growth in 2014 will be weaker than thought and bunch pushing higher on that pretty weak zew release. all right. pretty bad news coming out of germany, but keep in mind the

zew index really is an investor sentiment survey. with that big job in the dax, these numbers shouldn't be a big surprise. it seems as though the market had been setting up for a slightly weaker than expected number already as we can see in the markets this morning. i want to get out to david scranton, ceo of scranton financials group. i want to get your take on what we see in the markets now. we saw that big impact in the u.s. sentiment is slightly dented this morning. do you think what we saw in the last two trading days, it was a bounce? >> i do believe that's the case. you know, we've had basically a bull market now, a cyclical bull market for 5 1/2 years. and it's interesting, if you look back at what happened over that time period, every time we -- the united states had some sort of quantitative easing, the markets went up. every time the government pulled back, the markets went back down

again. so it's starting to feel a lot like 2007 again in my mind. >> are you saying this is the start of ach bigger correction? a correction, if you look at the technical definition, plus 10% jobs? is this what you're expecting? >> i'm expecting to break below the previous high that we saw from 2007, which is 1565 on the s&p 500. so actually, it's closer to 20% or more. >> but why exactly is that? because the earnings picture has been improving. in fact, we're seeing earnings growth pretty positive but more importantly, revenue growth is finally coming through. companies are actually spending the cash piles that they're sitting on. so where do you get this pessimist bump? >> well, first of all, the markets don't seem to be justified at this level. revenue growth is taking a long time and it's finally starting to come around. even then to a much lesser degree than most corporations,

most analysts would really like to see. and the reality of the matter is that we slipped into a secular bear market in the year 2000 and in 2013 we crashed above the previous highs from both 2000 and 2007. and if this were a permanent break above that level instead of a temporary break, it would be the first time in the history of our stock market that during a secular bear market we broke over that peak that quickly in 13 years. secular bear markets typically last much longer than that. >> this all sounds pretty bearish to me. i'm just wondering how do you position yourself as an investors in this environment that you're describing. is it essentially a rush for cash, a rush for gold, a rush for defensive equities? >> well, i tell people that if they're buy and hold investors or they're within ten years of retirement or they're conservatively minded, that they want to take a good chunk of

money off the table regarding the stock market today. a lot of people talk about a fixed income bubble. there are still some areas in fixed income that i feel quite comfortable with. the other thing is, there is nukt wrong with having cash on the sidelines. at a time like this, i believe buy and hold is overrated. there's a reason the rich get richer because they have cash on the sidelines to take advantage of opportunities. most average folks are fully invested at all times and they simply can't do that. >> stay with us. we want to get a preview on some of the earnings we're going to have out. . king digital reports today. reuters is expected a revenue of $603 million. the stock is trading below its issue price of $22 from its march ipo and host nearly 6% in trade yesterday. king digital has some 325 million monthly user, as 180 game titles and is active in 200

countries. but the gamemaker has faced some criticism for a one-week wonder in candy crush. we want to hear from you. what do you do once you finish candy crush? join the conversation here on "worldwide exchange." get in touch with us. full disclosure, i do not play candy crush or any of their games. david, just a quick line from you. do you play that? >> no, i do not. >> i guess it takes up a lot of your time. a lot of geopolitical risks and then we've got the risk of earlier than expected tightening from the fed. which of the two is the bigger one in your eyes? the most likely the tightening of the fed. if you look back, hindsight is

wonderful but you can see where you're not even tightening, simply doing less easing would cause the markets to slip backwards. >> all right. david, thank you so much for that. david scranton, ceo of scranton financial group. still coming up on the show, turkey urges iraq to form a unity government. after the break, we're live in istanbul to talk about how the crisis in iraq is impacting its relationship with its neighbors. meanwhile, u.s. president barack obama has left tributes to oscar winning actor robin williams who was found dead in an apparent suicide at his california home on monday. williams, who was 63, had recently been suffering from severe depression according to a statement released by his publicist. describing williams as a one of a kind who made us laugh and cry, obama offered his conso well doleances to everyone who found their voice and their verse thanks to the comedian.

he has worked stretches from family favorites to films that embraced comedies and dramas. let's remember some of his many career highlights. >> good morning, vietnam! hey, this is not a test. this is rock and roll. time to rock it from the delta to the dmz. is that me or does that sound like an elvis presley movie? viva denang. i specialize in the education and entertainment of children. >> surprise. >> i don't know a lot. have you seen this? it's not your fault.

>> mork, come in, mork. >> oh, yo, sir. what's up? >> catalog summer collection is here. ♪ maybe it's acting crazy, but i want it ♪

and these are your headlines this morning. u.s. fees helped boost prudential's profit in the first half, but the ceo said it's bracing for a fed rate hike. economic sentiment in germany is at a near two-year

low as geopolitical risks hit the zew. and it could be a bitter quarter for king digital has sales are expected to get crushed. u.s. secretary of state john kerry has urged the new iraqi government to profits commitment to stability. kerry was speaking in sydney after president obama referred to the appointment of prime minister as a positive step for the country. >> we are prepared to consider additional political, economic and security options as iraq starts to build a new government and very much calculated to try to help stabilize the security situation, to expand economic development, and so strengthen the democrat institutions. those will be the guidelines. >> the leaders of turkey and france have called upon the newly nominated iraqi prime

minister to form the government. hadley gamble with the latest. hadley. >> yeah, carolin. you know, it really does come as no surprise that nuri al maliki is saying no to the actions that the iraqi parliament. he's managed to stall for this long, assuming correctly that the united states would come to the aid of the iraqi government in terms of the expansion of the isis threat. but one country that is, of course, watching this closely is turkey because, of course, turkey has a long border with iraq and with syria, as well. and they are being threatened at this isis terror threat, not just into iraq and throughout syria and to the borders of turkey. so they'll be keeping a close eye on that. you have to rub the kurdish regional government. these close ties with them, the new energy deals. so at this point, turkey is

going to be watching this very closely. >> hadley, i wanted to get the latest on what the response is from the west. the foreign secretary called for a meeting on the situation in iraq later on today. what realistically can we expect from that? >> well, europe finally broken up, really, and they're going to have to do something about this threat from islamic militants. we heard weeks ago from the different security organizations in the uk and the eu saying they don't have the capability to track so many of these people that are fight, isis who have european passports. the problem is this could come home. no surprise, they're waking up to the fact that they're going to have to do something about this. we heard earlier from the u.s. military general and he essentially said air strikes are not going to stop isis. although they're helping, although they can help to contain some of this spreading threat of islamic terrorists,

it's nog t going to be the answ. we'll have to see more action from the u.s., as well. still coming up on the show, essi stops the bricks and mortar bandwagon helping get shells on more in the u.s. and a quick view of how the european markets are trading right now. we have now pushed into the green, the stoxx europe 600 is edging higher by a mere 0.1%.

good morning, everyone. let's have a look at the markets. and let's show you what u.s. futures are doing at this point in the morning. the s&p 500 taking fair value into account, modestly higher by 4 points. the dow jones seen up by 22 points and the nasdaq is seen opening higher by 7 points. this is after markets closed well off their highs yesterday, but still in positive territory. the dow and the s&p have their best two-day gains in four months. let's have a look at european markets, as well. a bit of a mixed picture, really. the xetra dax is down by 0.3%. remember that the zew indicator, that hit a 1 1/2 year low in the russia/ukraine problems. the cac 40 is lower, but the ftse 100 actually managing modest gains. one of the top performers there, we talk to the ceo before.

insurer prudential reporting higher 1.5 billion pounds in the fist half of this year. earlier, i asked the ceo about his outlook for the u.s. markets. >> i think on the positive side, there is definite recovery. we see the u.s. as strong and we see productivity improving in a economy, which is always a good use long-term. the big cloud for us is really interest rates, qe, when interest rates will normalize and at what speed and with what magnitude. >> meantime, german consumer giant henkel has warned of a slow down due to the crisis and russia in the middle east, this as the company reported a second quarter sales increase of 337% in june. speaking to cnbc, the ceo said he remained happy with the article despite all the

geopolitical tensions. >> overall, the economy is slowing down due to political crisis in eastern europe and particularly in ukraine. so a small eastern european scenario, but at the same time, we went out and confirmed the outlook for the year of 3% to 5% growth and high single digit eps growth earning. we're quite heavy with the quarter, despite a charging political environment. and there's a new trend in retail. a number of stores built their business exclusively online now realize they do need a physical presen presence. the latest to jump on the bandwagon, julia boorstin explains. >> we all know the trick of brick and mortar retailers moving online, but now things are moving in the other direction. virtual storefronts are getting real. that is why a range of online retailers are making a big push into physical stores. to guide shops, for people to

try on orders from its men's wear website to help women find dresses and kcosmetic sampling companies. etsy is bringing its products into stores with a wholesale program. connecting 1500 espy sellers with boutiques around the country helping vendors generate volumes and connecting stores with its platform. its charges sellers a 3.5% one-time fee. >> most consumers still buy what they buy offline, the vast majority. we really wanted to help our espy sellers participate in that shopping and help consumers find things they can't find anywhere else. >> boutique owner says it helps those who can't afford to travel to trade shows. it helped boost her revenue more

than 40%. >> it's more than a game changer for us as a store owner. it really has been able to increase our availability of cool products. >> i think being on the retail floor, the instant gratification is always nice. you don't have to wait on shipping times, but i think being able to see the product adds a lot of value. >> etsy won't reveal how much its wholesale business has improved in beta. your products have been featured on etsy and at a pop-up store in london in march. what was your experience with that pop-up store? did it drive sales or is it really about marketing? >> i think it's a mixture of both, really. we did a lot on the day and it was a great chance to interact with people, being able to pick product up and touch them and things like that.

but yeah, it did drive business cards and things like that. >> so etsy charges 3.5% of the transaction and then you pay that initial fee. do you spell do you feel because this is such a huge success for many small companies that wouldn't be featured otherwise, these price res pretty high? >> compared to doing a trade show or something like that which runs into the thousands of pounds and is actually very reasonable and much more acceptable for the small fellows. >> do people really just buy on etsy and they buy products that may report to them, maybe they have a value because they think they're quirky, do you think it's really just about the feel good factor of helping out smart artisans? do you think this contributes a great deal to why -- this structure has seen such tremendous success? >> yeah, i think people like to

sort of buy things from smaller companies now, people like to hear the story about how things are made, about the person that made them and the shops have a an about page, so you can write about what inspired you, that kind of thing. rather than just buying something mass produced. >> i'm curious, do you think -- and it's product difficult to answer this right now standing where you are. but do you think you would have made it without etsy? >> for me, etsy really springboard my business. i can't really say whether that would have happened without etsy, but right now, it is sort of one of my main income streams and all the extra promotions. yes, it really, really pushed my

business toward growing and i had been doing it for 2 1/2 years. >> that's not bad, is it? >> yeah. >> a lot of people, myself included, we spend way too much time on pintrest. i just wonder if that changes the dynamics of this business idea. >> i think pintrest pushes a lot of traffic towards etsy. so it kind of circumstance ewe late the images more, get more people sort of seeing the etsy items and clicking back through on to etsy and people can sort of search within pintrest for specific items. so rather than just missing -- people sort of liquid in an area and so then they can see all things within that store section. >> thank you so much for that, zoe baitman, owner of ladybird likes. coming up on the show,

friends and fans around the world are remembering the life of robin williams. we'll leave you at how the futures are opening on wall street. we ever expecting to open higher across the board. we'll be back in two. what if there was a credit card where the reward was that new car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com

welcome back to "worldwide exchange." i'm carolin roth. germany's zew slumped to the lowest level in nearly two years as geopolitical risks hit business sentiment. a russian aid convoy headed for eastern ukraine could be a cover for an invasion according to the french minister. asia growth boosts prudential. >> the big cloud really for us, interest rates, qe, when interest rates will normalize and at what speed and with what magnitude. a day after investors turn sour on shares of candy crushmaker king digital, we

count down the earnsings from the gaming group. friends and fans worldwide are shocked at the death of actor comedian robin williams dead after an apparent suicide at the age of 63. >> announcer: you're watching "worldwide exchange," big brinking you business news from around the globe. good morning, everyone. if you're just joining in, thank you so much for joining us here on the show. here is what futures look like early this morning. once again, we're expect ago small rise in terms of the markets today. this is after yesterday. the markets were higher, though they did close well off their session highs. the dow had their best two-day gains in four months. taking fair value into account, the nasdaq is seen up by around 8 points. the dow seen up by around 30 points. let's have a look at european markets, as well. we're seeing a bit of a pattern here. the ftse 1100 actually eeking

out some modest gains on the back of prudential's numbers. we got the zew numbers out and that was very disappointing. here is what some of the commentators have been telling us this morning. >> it's generally selling out of russia. i can't take this. i don't know how to analyze the risk that we're seeing in ukraine right now. the markets generally see an opportunity midterm. >> sans china, like many of the other gaming stocks have struggled this year after a phenomenal performance last year. they've struggled and some of the growth figures seem to be

diminishing in the sense that the ip growth figures are off in the markets, disappointed last month. but in my view, we still represent really good growth stories. and it's a good opportunity. >> sometime ago, that the yields on the ten-year, spanish markets, it doesn't seem to be working. but it seems to be going in that direction. we think the fundamentals in the eurozone and the fact that the ecb may end up doing outright qe whether it's buying more program than any other asset. that can drive the yields. >> the euro hit a best low after the german investors, zew and its lowest levels in nearly two years due to geopolitical tensions on the crisis in ukraine. joining us now, the managing

director boris. are you surprised by that drop? this is a reflection of investors sentiment. they tend to be quite jittery. they don't read too much into it, right? >> you're right. we're not surprised. we thought it would be bearish coming into the print. but next big event is going to be the ifo report. i think that's going to be a much more important event because that's going to tell us how the business sentiment really is in germany. and if that shows a sharp decline, i think you have a deeper problem in the eurozone. >> so baervegly what the moves in the euro/dollar are telling us right now is that finally analyst betts on the euro going lower, the dollar going higher. they're paying off maybe a little later than what many people had anticipated. having said that, though, there still isn't a lot of volatility and volumes in the market. a lot of people still are at the beach. does that tell you that

conviction isn't high or we can be seeing a reverse in those moves? >> i think everyone wants to see where both sides of the trade are going to be right now. in order for this trade to begin to work, you need not only to have the eurozone slow down materially, but u.s. can continue expanding. you need to see relative growth on the u.s. side. one of the things that has propped the euro up has been ves low u.s. yields. you need to see the ten-year on the u.s. let's say go above 2.6, 2.7 while as some of your guests were saying the german bund remains around 1%. when you see the spread between the two widen, that's when you get the downside acceleration in the dollar. >> what is the u.s. dollar to you? is it a safe haven currency or is it a growth currency? looking at the price action of the last couple of weeks and months, it's not quite clear what it actually is, is it? >> that's because everybody is trying to anticipate the next big theme. and if we do get into a mode where the fed is one of the

first of the major central banks to begin to raise rates, then it suddenly becomes a growth currency for the first time since is 1980s. so you do have that new theme possibly developing, but it's still very premature. you have to see sustained u.s. growth in order for us to feel more confident that u.s. yields are going to expand. that's why you see the market come down, stop, come down, stop, that's been the central theme this whole year. >> just want to get your take on risk assets overall. do you think we're now in an environment where we're going to see an overall pricing of risks, not just because of geopolitics, but because of fears of earlier than expected fed tightening? >> possibly. you know, i mean, this thing about fed tightening and typically the beginning of the central bank tightening cycle is it's not necessarily bad for assets, but it's indicative of relatively strong growth. i think you may have a natural knee jerk reaction.

but if u.s. growth remains steady and the fed begins to tighten, that can be very positive, both for the u.s. dollar and for equities because we suggest that growth remain owes strak. the central bankers are not going to tighten rates until they're absolutely certain the economy is starting to boom. >> that's the hope, isn't it? boris, thank you so much for that, managing director at bk asset management. let's take a look at today's other top stories. the uk foreign secretary will chair a meeting on the situation in iraq later today. this according to the prime minister david cameron's office. meanwhile, u.s. secretary of state john kerry has urged the government to push forward with moves to stability. kerry was speaking after president obama branding the appointment as prime minister a positive step for the country. >> we are prepared to consider additional political, economic and security options as iraq starts to build a new government

and very much calculated to try to help stabilize the security situation, to expand economic development, and to strengthen the democratic institutions. those would be the guidelines. >> meantime, a convoy of 280 trucks carrying aid for eastern ewe krad has left moscow according to reports from the news agency. ukrainian petro poroshenko says barack obama has backed his call for the international red cross to carry identity a humanitarian mission for the city. the french foreign minister warning early on this morning that the russian convoy could be cover for a more permanent incursion in the ukraine. that's according to reuters. he stressed that the move was only justifiable if authorized by the red cross. still coming up on the show, friends and fans all over the globe are remembering the life of comedian and actor robin williams. we're live in california with the latest.

and later, u.s. banks are posting record profit levels not seen in more than two decades. we look at what's behind financial industry good fortune coming up on the show. ouncer ] s was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better, airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪

prudential profits rise. and it could be a bitter quarter for king digital with sales expected to get crushed. a tributes are pouring in from around the world today after friends, family and friends learn of the death of comedian and actor of robin williams monday of an apparent suicide at the age of 63. jennifer is in california with more. jennifer. >> carolin, it is only about 2:45 in the morning here in california. yet neighbors are coming by putting flowers by the gates of robin williams' home. and we know there is a vigil that is active with candles and flowers and his star on the hollywood walk of fame. robin williams' wife found him

here in his home unresponsive. his death was called an apparent suicide by the crews that arrived here and tried to revive him. they said it looked as if he had died of asphyxia. we expect to get a little more information from a new conference this morning at 11:00 a.m. pacific time, a few hours from now. and an autopsy will be conducted today, as well. > what we do know is very little, except that robin williams has suffered from depression. his publicist said it was severe at times. he's been very public with his struels with drugs and alcohol in the past and has gone through rehab and had only been back a few months ago for a refresher course. but robin williams is so well loved by so much people, his movies grossed $5 billion worldwide. everything from the world according to garp to the debt poet's society, very serious, dramatic role, to the bird cage,

mrs. doubt fire, "good morning vietnam." everybody had a movie that they loved that was robin williams. so this morning, it's still shock here. the news of his death. and his family has released a statement saying in part, it is our hope the focus will not be on robin's death, but on the countless moments of joy and laughter he gave to millions. that was a quote from his wife asks for privacy at this time. live in tiburon, california, back to you. >> jennifer, thank you so much for that. how about we focus on his ama amazing work over the years. i asked our viewers on twitter, what is your favorite movie that robin williams starred in? basically mine, undoubtedly, is "mrs. doubtfire." that was always the go-to movie when i was a child. buckeye writes in and he says, mine is "rv." "good will hunting for drama,

"birdcage,". what dreams may come and helena says mine is "dead poet's society." sophie writes in and says "patch adams." a lot of movies, a broad spectrum there. tell us what your favorite movie is if you want to join the conversation. meantime, u.s. banks are now lending to individuals and companies at the fastest pace since the financial crisis helping to propel their profits higher. seem ma mody jones us from cnbc's headquarters. seema. >> carein, that's right. u.s. banks posted more than $40.2 billion in net income during the second quarter. that is the second highest profit in the industry in at least 23 years and is below the record $40.3 billion in the first quarter of last year.

it also comes as many bank executives say the higher cost of regulation is hurting their business. snl says loan growth at its fastest quarterly pace topping $1 trillion since the first time it began tracking the data in 199. commercial lending rose at an annual rate of 12.6% in the second quarter. consumer lending, which includes credit cards, student and auto loans has picked up 6%. regional banks reported the strongest growth in commercial lending. so far, the results are impressing investors who are still cautious about a range of issues including mortgage lending and trading revenue. the index which traffics a basket of stocks is down 1% this year. the s&p 500 up about 5%. snl says banks saw second quarter profits rise due to the lower amount of money they set aside to cough bad loans in the future. many big banks are still --

those reserves which boost profits. the four largest u.s. banks released $2.25 billion of reserves in the second quarter, up the about 20% from the first quarter. carolin. >> seema, thank you so much for that. consumer reports gave tesla top marks last year, but now the magazine says the electric car has more than its share of problems. consumer reports say the model s has its share of problems. the problems with the model including the central panel going blank and the automatic retracting door handles not working properly. let's have a look at tesla shares down 0.7%. it may be about more than pricing. amazon has helped create orders of several disney movies, including "muppets most wanted."

the dispute involves promotion and product placement on amazon sights. there are questions about who makes up the difference, does amazon lose money when it matches a competitor's price? amazon and disney shares in germany doing like this. amazon pretty flat and walt disney up 0.2%.

welcome back to the snow. let's have a look at european markets this morning. this morning, after strong numbers, the xetra dax is down by 0.3%. the zeo investors sentiment

index, that fell to a -- close to a two-year low. king digital reporting earnings before the bell today. $603 million and eps of 69 cents. the stock is trading below its issue price of $22 from its shares took a beating yesterday, falling almost 6% on the session after a downgrade.. king currently has some 325 misdemeanor monthly users, 180 game titles and is active in 2 hurnl countries. but the gamemaker has faced some criticism for being a one-hit wonder due to the popularity of

candy crush. joining us now, add ward rill yams. do you think king digital is a one-trick pony or can they replicate the success? >> i think they can games indicate they have the ability to diversify their revenues. >> i guess you're a little bit more cautious here, aren't you? >> yes. and just going into this quarter on cautious, there are two or three headwinds going into here. you have the maturity of the candy crush, which is a premier game. some market indications indicate what these guys have in the top ten are trailing off. >> what about the share price

performance? i mean, this is one of the reasons why the stock was downgraded yesterday. their talk about the expiration, the big overhand together for the shares, wouldn't you agree? >> yes, yes. that definitely is overhang. joef all, that's the main issue going into this quarter. and more than that is maturity and keeping in this industry as you need to reinvent, coming up with new games, and they do that. they have a good track record of doing that. you have a good pipeline. i wouldn't be concerned near term, but in the long-term, there are some indications that the games are slowing down. >> edward, let me come back to you. are you not concerned about the overhang in terms of the lockup period expiring? you've got an outperform rating on the stock. you say it is attractively valued. would you allow for some near term stocks?

>> i think the key thing is to get that portfolio expanded. i don't think it all comes at once or anything like that. i think there's a risk to it, but i don't think that's the primary focus. the focus has to be the diversification of the revenue. >> and what you point out in your note is this meaningful penetration, although the possibility of that into the chinese market. do you think candy crushes scratch from the surface and the penetration in china? >> if you look at king's financial, candy crush -- there is no contribution of candy crush outside of the western markets, outside of europe and north america i think there's a possibility that candy crush will continue to expand.

there are two areas to look at. one is the traditional titles that they've got coming out, but they've also got the opportunity in a geographic basis to continue to diversify their revenue. first and foremost, you have to see some of these other games coming up. >> i want to ask you about these games. is there anything significant for that? >> you know, it's one of the things that we're still trying to gauge. in the conversations we've had with several of the other companies that are in this space, it doesn't sound as though they are -- that they believe at least it will be that material for them. and part of their -- part of their issue may be that the android revenue, spefkly coming out of the eu, is still not as dramatic as it is if you look at ios and you look at the north american contribution points. or contribution area. you know, from my perspective, i

think it's still an element of risk, it's an element of concern. and we're still trying to gauge with the impact of it really will be. i think most people who are playing a game line candy crush are very cognizant of the end game purchasing that does occur with this. >> gentlemen, we're going to have to leave it there. thank you so much for your time this morning, appreciate it. edward williams. and fans all over the world are paying tribute to robin williams today. i asked earlier what your favorite robin williams movie was. peter tweets, i can quote nearly every line from "good will hunting." it makes me laugh until i cry and just cry. that's it for today's show. i'm carolin roth. my favorite movie, "mrs. doubtfire." i'll see you tomorrow. ♪ ♪

developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business.

d sfa . good morning and welcome to "squawk box." overnight, chaos in iraq as political leaders crash while isis moves through the northern part of the country. right now, u.s. futures are higher while the markets in europe get hit by a drop in german economic confidence. and the entertainment world mourning the death of a comic legend, oscar winner robin williams, at the age of 63. it's tuesday, august 12th, 2014.

"squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. i'm michelle caruso cabrera along with joe kernen. scott wapner, becky and andrew are off today. the world has lost a beloved actor, father and comedian. a look at the career, life and legacy of robin williams. >> the death of robin williams left his family, friends and a generation of fans across the world in shock. >> we lost a great, great person today. >> williams was found dead at his home north of san francisco today. an investigation into the death is currently under way. preliminary reports report to asphyxia. according to his publicist, williams had been battling depression in recent weeks, having been this drug