>> good morning, everybody, welcome. you're now watching worldwide exchange. >> i'm seema mody. here are your headlines from around the world. >> toshiba shaking up it's management after an accounting scandal. re-signing along with 8 other executives will be bringing you his press conference live in the next couple of minutes. >> the giant falls to the bottom of the swiss market as a 32% slump in profit overshadows the prospect of its new hard drug. >> not quite cloud nine the

german software giant delivering a mixed bag. >> two french luxury stocks today. shares fall in part to japanese consumer demand and shares in the drinks maker lower. and to our top story in the last couple of hours toshiba announced the resignation of his ceo over the accounting scandal. he'll be replaced by the japanese firm's chairman with 8 of the 16 board members expected to step down. the changing management is due to this scandal. the president and chief executive will be replaced by the chairman. his predecessor who is vice chairman will also quit.

now we are awaiting for the leadership team to announce and tell us about it being made. it's helping the tokyo index approach an 18 year high. the japanese index already trading at a three week high. investors are cheering the management change. >> it's going to take time. 8 out of 16 board members will be standing down. that's a lot. it's a big management shake up. more board changes to follow they say. incidentally also now you need to look at the rating agencies and all the big investment houses. s&p already putting toshiba on negative watch on this move. reported profits and toshiba trading hire with people welcoming the changes at the top. maybe there's speculation that this was going to take place

given all the difficulties they have been seeing. so management changes at the top with regards to toshiba. >> we should point out that the channel of investigators found out top execs were tangled in accounting mall pack trisractices. we are waiting for leadership to make an announcement about what to expect going forward. >> and you've also got comments from the finance minister talking about how toshiba's accounting problems are regrettable. the japanese finance minister also saying the tokyo market will lose trust without appropriate corporate governance. we'll keep you up to date with any more breaking news happening with regards to this particular story. >> moving on a number of

earnings to bring you up to speed with. shares have been trading at the bottom of the swiss market. >> good morning. >> novartis shares off by 2.25%. this is partly due to the stronger u.s. dollar. they're saying that fx volatility caused it to take a hard look at its cost space around the world but speaking to cnbc earlier the ceo denied it would move headquaters away from switzerland. >> we're a swiss based company and there's a lot of good reasons to be in switzerland so we'll weather the currencies like the others around the world reporting in u.s. dollars. you have to look at our results on a constant currency basis. our sales were up 6%. our operating currency was up 6% and we were able to show margin improvement of about 30 basis points. >> now the swiss rival upgraded it's outlook for 2015 core

earnings despite missing second quarter sales expectations. they cited progress in it's lung blood pressure drugs for the move. we asked if the firm is guarenteed to hit guidance. >> guidance is always a guidance. it's what we expect. you never know what happens but it's doing very well. we have launch in spain. we have launch in japan. the safety of the company is excellent and for all the specialists this is really an extraordinary drug. so we're very confident. >> now a mixed picture from second quarter earnings as net profit dropped by 15% on manufacturing and m&a associated costs. revenues that came in above expectation because of higher demand for the low margin internet based cloud software but speaking to cnbc earlier the

ceo remained bullish on its prospects. >> we were able for the third quarter in a row to sequentially raise the gross margins in the cloud business and that was a key contributing factor for us to raise operating profit for 13%. i'm happy with the trajectory that we're on and the cloud is becoming a more significant and meaningful part of our overall business. >> let's get stuck into a discussion about earnings and what we see at the moment. our expectations as well. good morning. >> good morning. >> how are you? >> i'm very well. how are you doing? >> are you happy that greece has moved along since we had had you on last? that we've seen some development and we can focus on earnings? >> absolutely. you could argue that still the resolution, how much of a resolution will it prove to be ultimately but i think our view toward the greek situation is that it hasn't really -- it wasn't really going to dominate

the direction of corporate earnings and european equities for the medium term. it's been an interesting thing and moving on from the crisis. >> most people i spoke to so far said that earnings expectations have come down far enough. do you agree? >> absolutely. if we go down to the start of this year you could see that toward the back end of last year we saw earnings expectation for europe continually being downgraded as people were much more nervous about the rate of economic recovery. so we started this year with a much more kind of realistic base of earnings and for a number of reasons there was scope and aggregate for those to support on the upside. >> you wrote that the miss of capital misallocation is rising.

explain what you meant by that. >> because you have a situation where the cost of funding, the availability of liquidity is abundant and you have an environment and the balance sheets are strong the temptation there is to really go for corporate activity and that's -- we're very much seeing that as characteristic of the market over the last 18 months and as that corporate activity cycle rolls on there's always that rising risk that capital gets misallocated. i mean even if you think about share buy backs in an elevated market there's the risk that you're just buying back quite expensive equities. that's a form of capital misallocation. >> another story we're following closely and something we discussed was negative interest rates. for the first part of the year the market was condition certaineded about the implications of negative interest rates but now investors

are becoming a little more comfortable with this idea. would you agree? >> absolutely. the work we've done on negative interest rates was highlighting the point that negative interest rates were unlikely to sustain for any extended period of time. the view on inflation was that it was a kind of demand driven phenomenon where actually what we were seeing was that they were being shaped by import prices collapsing. then actually we should see inflation numbers move up quite significantly toward the back end of the year which would accompany moves in the yield curve. >> i know that you mentioned passive investing because are people passively investing now? it's quite active investing now or sitting on the sidelines holding cash. >> if you look at the flows we have seen into equity funds over the last few years you can see that passive strategies have developed and formed an

increasing part of that proportion. i think somewhere between 25 to 35%. it's always difficult to get the exact numbers but you've seen that as a strategy being much more embraced. now the challenge that one has then is to think about when you do have a surge of demand for a certain type of investment strategy, do those people end up getting disappointed and what does that surveillance is jest for the shape of the overall market and the scope for investors to add significant value. >> when looking at the equity trade right now do valuations imply that the equity risk premium is rising or no not at all? >> it's a really interesting question to you. what some have argue sd thatd is the equity risk premium has risen because the rate is so low and some people, some have argued that actually that -- that could

warrant or justify higher prices. if you take a normalized over the last two decades equity risk premium we could justify higher evaluations for stocks and shares. the question i would ask is when we look around the corporate sector and we see some of this going on the business models in the sharing economy and so on and so forth maybe actually the equity risk premium should be rising as competitive advantages are shrinking rather than growing. >> let's look at how they're trading for us. >> we were pretty flat this morning and we're currently down just a tad keeping in mind that we have been sitting pretty very close to the 6 week highs on our european equity markets over the last couple of sessions. we had a nice run here in trade the last week or so. the stoxx europe 600 lower at

the moment. down by a quarter of a percentage point. a mixed bag of earnings out as well. revenues coming in surging due to the amount of cloud software delivering by the internet. a real surge there. europe's largest bio tech lifted it's earnings as well. the survey indicating a slightly weaker than anticipated july. it was closing out flat in yesterday's trade. new record highs on the close. once again we'll be talking about the tech earnings and what we can anticipate here later on on the show. the ftse off. the xetra dax down and off by .4%. just showing you the trades we're seeing there. oil coming off quite significantly over the last couple of sessions. it was a little bit weaker than that when i first came in this morning but we're hanging on to

that $50 per barrel level for the time being and brent currently lower right around 56 and change. so that's what we're seeing when it comes to the commodities. spot gold around 1100 also having come off quite sharply. we're seeing a little buying in gold once again. a lot of it has to do with the strong buying story given yellen's comments that the fed stands ready to hike. we're moving closer to a hiking scenario. just rounding up what they're doing, euro dollar higher by by .2%. but we're higher by 108. just 2.5 weeks ago we were at 110, 112. now we're at 108 so still quite

a bit going on even if it is a quiter news day when looking at the big picture stories i should say like greece for example. >> absolutely. something we'll continue to watch. in the meantime. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

now we are still monitoring the tokyo press conference where toshia ceo re-signed over a 1.2 billion dollar accounting scandal. we'll keep you up to date with any developments that come from the conference. >> meanwhile, japanese business confidence was pursued in july. the survey shows the manufacturer sentiment at 14 unchanged from june while the services firms index dropped by the most in over a year. >> now this happening as japan policy makers also expressed concerns about the economic picture according to the latest bank of japan minutes. several board members said that the effects of the central bank stimulus program could be fading.

sri joins us live out of singapore on the latest from asia. good morning, sri. >> hi goomorning. that picture does tell me a couple of things. the external picture is looking dire especially coming from china. let's not forget the trade linkages are very tight between japan and china and they suggest perhaps the boj might still be in the game in terms of delivering stimulus. i wanted to bring you a recap of what shares have been doing because they were up by more than 6% at one point so investors applauding this change of leadership with toshiba and there will be downward revisions to report of profit. placing toshiba ratings on credit watch and negative. near four week highs at the closure. china stocks continued to really

see a lag impact from the very aggressive intervention. in fact we're over 4,000 now. shanghai bounced almost 15% from its recent lows and, yes, in terms of the commodities market impact we have seen gold come back and we've seen something of an oversold bounce today in the bullion market but the stocks and gold miners are still out of favor in australia. it's the banks holding up the broader index. one of the performers today is the bangkok set. so 7 month lows and broad case selling in the large cap banks that's to blame for the weakness on equities today. that's where we stand. back to you in london.

>> thank you so much. if rates stay low for the foreseeable future and janet yellen does not raise rates in september or even december do asian equities look attractive at this level. >> it's interesting. asian equities in some ways from my perspective look in some respects similar to europe in that evaluations relatively look attractive but similar to europe it will really be more about looking at individual companies within asia and rather than saying it's going to be all about certain markets and a broad based view about recovery and demand. we're going to see correlation within sectors fall. i think we're going to see preferences in correlation but in markets it will move toward being a stock pick of the

market. >> i don't know anyone that's not bullish on the nikkei at the moment or on japan in general. it's been a phenomenal trade over the last few years. we continue to hold japanese stock. >> even if the yen continues to appreciate. >> the news at toshiba is an interesting one. for investors to get a lasting turn out of japan you need deep lasting fundamental improvements on corporate governance. on one hand it's a negative outcome. on the other hand it brings to the fore the fact that unless companies are truly being run in the interest of shareholders are really focussing more on returns than this enthusiasm toward japanese stocks will end up becoming quite short lived. >> it was interesting when fears over the greek crisis were rising, let's say ten days back at the height of it chinese stocks were crashing. gold did not get a bid. what did is the japanese yen.

does that indicate the investors are finding safety. >> it's very hard to look at the short-term moods and when think about gold you mention gold that's really interesting. gold peaked in 2011 and since 2011 we had quantitative easing in pretty much all of the major developed economies and you i was with that debasement of currency that gold would have probably have a bid. on the line despite quantitative easing it was a vote of confidence that the economy would normalize at some point and the currency system would

prevail. >> sepp blatter confirmed the date for the election of his replacement on the 26th of february and ruled out running for the job again himself. he also confirmed the launch of a task force. he was unable to totally move beyond the scandal surrounding fifa after a u.k. comic interrupted proceedings to shower blatter with fake money. >> security please. >> this is starting. >> we're starting a press conference. >> where is my security. come on. come on.

. >> this video was trending on twitter. aside from the shark video. >> it's unbelievable. >> this guy is one lucky man. god is watching over him. a shark within arlm's distance behind you. >> i have snorkeled with killer whales and the finns are like a meter 60. they're like your height. now imagine the rest of the shark. >> huge. >> moving on electronic arts breaks the virtual glass ceiling for the first time in the company's popular fifa franchise a woman will appear on the cover of the video game. u.s. women's national team member and world cup member alex

morgan will share the cover with lionel messi and christine sinclair gets the honor in canada. >> share the cover. >> progress. >> zach johnson battling through the wind and the rain of st. andrews to win the open championship and fellow american jordan spieth's bid for golf's grand slam. he won a three-man playoff after bad weather forced the tournament to carry into monday. they were at st. andrews to break it all down. >> well zach johnson, the 39-year-old from cedar rapid's iowa is not just as at the say over here the champion golfer of the year he is the man that spoiled jordan spieth's bid for the grand slam. >> spoiler alert for sure. he won the masters and among those he beat was the great name of tiger woods and now then among those he beat the great

name of jordan spieth. arnold palmer and jack nicklaus one shot short of continuing on in their chances at the calendar grand slam but when you talk about zach johnson you're talking about a tenacious man. 11 times winner before he got here and now 12 times. and because he doesn't have great length nothing comes easy for them. he's now 3-1 in playoffs and nobody will forget this one. >> it's been such a marvelous run for jordan spieth but if you had to pick a moment or two today where did he come up short? >> people are saying he had five three putts and one four putt pointing to that but zach johnson had four three putts this week. if there was one moment it happened pretty early on either thursday or friday he drove it in four different bunkers and paid the price for that and ultimately what transpired

there. >> jordan spieth applauded the crowd. we'll all applaud him for 2015 but it is zach johnson, just the 6th player to win an open on the old course and a masters. the others, snead, nicklaus, and woods. >> they're covering golf on the radio as well. >> are they? >> this is great news. >> my producer was watching it and his wife was very upset. walking walking walking. >> still to come the schools of stocks will see why chinese students are interested in warren buffet and not in justin bieber. we'll see you after the break on worldwide exchange. you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure.

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in the last half an hour or so the ceo publicly re-signed with 8 other executives heading for the exit. >> the pharma giant falls to the bottom of the swiss market as a 32% slump in profit overshadows the prospect of its new heart drug. >> not quite cloud nine for sap. delivering a mixed bag of earnings as growth in it's cloud

software business dampens margins. >> sales at hermes climb 40% but shares in remy are lower. hi everybody. welcome back. i hope you're having a good morning so far. european market versus been open for 1.5 hours or so. trading slightly mixed at the moment. our fx markets worth keeping an eye on given that we're in the aftermath of janet yellen's speeches last week indicating that we could be heading toward a fed rate hike sooner versus later. a lot of speculation about that. the market hasn't priced that in yet. the u.s. dollar being brought up on the back end of that with the euro dollar down around 108. the other thing to watch is what's happening with greece still and now the greek talks are progressing.

it's going to take a long time before we figure out what's working for greece. >> but at this time the grexit fear receded and that's why you saw european equities out perform in yesterday's trade. today the xetra dax gained about 1% in yesterday's trade down barely flat at the moment. the cac 40 with a loss of around 4 point despite the big outperformers there. the italian markets, ftse mib, down about 64 points and greece has repaid the roughly 2 billion euros it owed the imf and has begun paying the 6.25 billion euros it owes the ecb. athens as owed the greek central bank using the bridge loan secured last week when the country's government agreed to a series of harsh reforms. this as greek tourism receipts

rose in may compared to the same period last year jumping over 1.2 billion euros. that helping into positive territory for the month at 407 million euros compared to nearly 300 million in may of last year. so two greek stories there. let's talk more about how greece is impacting the european equity trade with the senior european economist at capital economics. how are you jennifer? >> i'll well thanks. >> one thing that's so apparent the last few days when reading analyst and investor notes is that greece is no longer in the headline. the question is when will it return? >> i don't think it will be long at all. markets are being cautiously optimistic about the deal implemented in greece and understandably so. there's massive uncertainties around it. there's been encouraging steps. thankfully greece has the bridge finance which has allowed it to make the repayments you just spoke about but that only adds to greece's debt.

it's going to need to repay this at some point and the big issue that's still overhanging the whole thing is that greece has no debt relief. there's no reduction in the burden of debt and it's thriving. >> so the issue becomes then wlnlt whether or not we're going to see changes of maturities on greek debt. whether there's some type of debt relief. is it inevitable in this stage? >> it's absolutely necessary. so far all that germany seems to be giving on is the idea of some kind of restructuring or reprofiling but greece doesn't have to pay much interest already and it's being pushed back way into the distance. it needs a complete write off of some debt and there's no hope it would get that. >> how would you characterize the move in the currency marktd because the euro is causing confusion among traders. especially at the height of the greek crisis. we didn't see that big of a move to the downside. but now it's trading at 108

breaking that 110 handle that it held on to throughout the story progressing over the last two weeks. >> yeah i think the market response has been slightly confusing when we have seen greek exist risks really rising and reaching their peaks we have seen the euro rising at the same time which is some what confusing. there's an argument that suggests if greece were to leave the euro zone the euro zone would be stronger without it and that would be positive for the region. i don't buy into that. if greece were to leave we'd see a much sharper drop in the euro exchange rate and people are hanging on to the idea that some deal will be reached because the cost of not reaching a deal or sticking to a deal could be so high. >> what do you think politically is going to happen next? are we going to see further elections now? >> we might see further elections. the greek interior minister suggested that's quite possible in september or october. it's still easily the most

popular party in greece. if there were elections it's more than likely that they'd win again but the benefit for prime minister tsipras would be strengthening his mandate after the referendum in which the electorate voted against the creditor's terms. a lot of members are saying we're no longer doing what the public want from us or what our voters have asked us today. i think he'd like to hold another election in order to strengthen the mandate and implemented these cuts. >> thank you very much. senior european economist at capital economies. >> moving on warren buffet's office denied reports from greece that the famed investor teamed up with the italian real estate agent to purchase the st. thomas island off the coast of athens. he's not the only one to have

been the subject of such rumors. earlier reports claimed that johnny depp bought a greek island and angelina jolie expressed interest. and seema. >> yeah although prices have come down. >> we'll get an island and start a bed and breakfast and grill tomatoes. >> leave this job? >> no we'll do the job still. >> from greece. >> bed and breakfast and tomatoes. grow our own food. >> farm to table concept. >> exactly. >> okay. >> take visitors. >> these are all great ideas. we would call it seema and lous, lousemma. >> what do you think our b and b

should be called. >> or maybe just bad idea. >> we'll stick with more greece news. he may not be buying greek islands but warren buffet's investments earned him billions making him an idol to chinese students. >> jason lee doesn't seem very different from other high schoolers in beijing. the 17-year-old likes to play football and joke around with his peers. but he is the only one they've nicknamed buffet. >> all my friends know i've liked stocks since i was a kid. some of them have started investing too. li's fast nation with the stock market began at the age of 7 when he first started reading books about the american billionaire investor. >> did anyone inspire you to invest? >> yes. >> yes, it's buffet he says. we all know that he's the world renowned god of stocks.

with chinese government policies favoring equities this fan of buffet and bieber decided to invest last september. he took $1,600 of stashed birthday and holiday money and parked it in the shanghai index picking stocks based on the philosophy of another big american investor. peter lynch says he would buy stocks from watching what his wife buys at the supermarket. he links it to every day life. my uncle bought stocks in a drone company because he loves drones so i found a drone maker and invested. he made the right moves quadrupling his investments though the recent stock plunge knocked off a quarter of their value. his advice for inexperienced investors in china, stomaching the wild volatility is part of the game. many people just blindly follow what others do. i don't find it very sensible he says. my advice is to do your research. after all, there are risks in the stock market.

spoken like a true veteran investor. cnbc beijing. >> inspirational. >> i like how he makes decisions based on what his wife is buying at the supermarkets. >> always a good idea. >> women have that power to make choices at home. >> they're the ones driving the decisions in terms of the household goods they're driving. >> as long as the man has the lazy boy chair and the couch. >> as apple pay is out in the u.k. some are missing from the mobile banking system. we plug in the holes after this break.

>> in the last half an hour shareholders of the italian online fashion retailer yoox approved an all share merger with net-a-porter. combined revenues of 1.3 million euros. they have given a green light for a capital hike of up to 200 million euros.

>> let's check in on french earnings. hermes is trading higher after sales rose 21% thanks to a weaker euro and stronger demand from japan. in the red after soft chinese demand weighed on first quarter sales. let's understand more about the story and the outlook with stefan joining us live from paris. take it away. >> good morning, seema. let's kick off with hermes. a 20% rise in the first half of the year. it also benefitted from the weaker euro but excluding this currency effect the actual revenue growth was 9% for the first half of the year. hermes did not report any profit figures but say that the operating margin for the first half should be slightly lower than the one for the first half of 2014 due to the weaker euro. the wine and spirit maker reported a full growth for sales

for the first quarter of its year but it's only due to the exchange rate excluding the impact of the weaker euro. sales actually shrunk by 9% in the first quarter. but was in line with the company's expectations. improving demand in europe and a strong demand for the high end products in the united states. did not offset the weaker demand in china. the company do confirm it's forecast for a positive growth in operating profit for the fiscal year 2015-2016. >> stefen thank you so much. now french food group is in talks we guarding a joint bid for general mills, green giant frozen and canned vegetable business. what's going on with this stock. >> i was wondering this morning if they would actually change the catch phrase you know to

something more french. but it wouldn't fit with the giant. according to people familiar with the matter the french group is working on a bid. but it's working with the investment banks to get the expertise but also the financial resources to do this offer. bonduelle has been looking at green giant for a long time. five years ago the ceo of the french kpaeb said hecompany said he would be interested in buying green giant but not at any cost of course. we don't know how much bonduelle is planning to offer. it is not a secret general mills, the owner of green giant has hired the investment bank to work on the process. the two companies are already working together. the french group bonduelle is currently one of the suppliers

to green jay yantgiant. it supplies canned vegetables for green giant. >> thank you so much. revenue fell more than 13% and have now dropped for 13 straight quarters. big blue chocks the decline up to the stronger dollar and sale of a server business but even without that revenues would have dropped 1%. ibm says it's newer businesses cloud software and services are growing but reported a year over year decline on all of the major lines. it fell about 5% in after hours trade and here in europe it's down a similar amount 5.2%. >> well analysts they are forecasting that strong iphone sales will carry apple through the worst quarter for the tech titan. smartphone sales of just under 50 million could be seen by up to 40% compared to the same period last year. the stock out performed nasdaq in 2015.

it's up some 117% over a two year period. four reasons on why you might want to pick up apple shares before they report and they include explosion of growth from the latest iphone offering the penetration into china, max sales and new products like apple pay and the apple watch. would you buy apple now? >> well listen the stock has -- you know we should point out that technology has been out performing over the past one month. the nasdaq 100 is up 6% so far in july. apple has been playing a role but not as big of a role as amazon book and google already up double digits in this month. so narrow leadership when you take a look at the tech rally we have been seeing will apple's earnings help the stock join in on the rally and push the nasdaq to new highs? it's been closing for record highs yesterday as well as friday. when looking at earnings this will be an interesting earnings report. it's no longer about iphone

sales or share buy backs but the focus on the call will be on china. >> i was just about to say. >> and weakness in that market and how that impacts sales. >> i think china is fascinating. when looking here that china surpassed the u.s. to become apple's biggest iphone market in the march quarter. also it's top europe as the second biggest revenue generator overall after the americas. we've had weak ipad sales. six consecutive session. but china is so interesting. >> penetration in china, sizing up it's competition from samsung, how does it continue to command leadership when you have all of these new players that are in china that have a pretty similar device in some ways. yes, perhaps android operating system but still a price point that is attractive to perhaps that consumer that is dealing with losses in the stock market. >> i like some of the copy cat

items. it's almost apple. which tech stocks are you holding in your portfolio? what are you long on at the moment? and jefferson writes in and says the only way is apple. the only way is apple. i reallocated some money into paypal. there's more poor people out there than rich. tech portfolio of apple, amazon google intel, a small position in twitter open at $35. >> go pro. so a lot of people writing in. it's really interesting to see how it used to be the ibm's and microsofts and intels but now netflix and tesla, two pro-- gopro have a lot. >> virtual reality is going to be next. >> new devices coming out next year. >> what was your twitter handle

again? >> you can find both of us and let us know what you're holding in your tech portfolios at the moment. >> meanwhile, apple's role out of apple pay has been a difficult sale to the country's major banks. they'll not be joining the mobile payment system until later this year while barclays has yet to set a date. let's talk more about the mobile pay opportunity. pleasure to have you on the show. >> morning. >> why haven't we seen the penetration of apple pay we've seen in the other markets like the u.s. here in the u. k.? >> you have to look at the u.s. market very differently to the u.k. market and the european market. a lot of consumers have their credit card data breached and stolen so it may be resinating more and many more of the banks were enthusiastic about joining the pitch. here in europe, some of those drivers are not in place.

the revenue streams are notes inless as positive but the european and uk. banks as in the u.s. for payment and from a consumer point of view why do you want to use a phone to initiate a payment. >> so you're saying it's convenience here in the u.k. and security driven state side. >> we don't really have that play yet in the u.k. market. >> here in the u.k. there's the -- what do you call it the touch card. >> contact less cards. so isn't it less convenient to use apple pay because you need the fingerprint and face recognition and with the contactless card you just tap it. >> it's in the eye of the beholder. certainly there's situations where it's more convenient and others where it's a pain. for a lot of consumers that's the issue now. they have different solutions. one which is very convenient and

the other is too long winded. >> paypal now an independent company. does that help it compete better with the likes of apple pay? >> that will certainly help that moving thought but there's multiple new players coming to market. paypal are clearly one of them. we'll see android google with their android pay. we'll come into the market later on in the year. samsung with their solution. >> and world pay expected to go public here in europe. >> they have the apple pay very much about focussing on the consumer. or around focussing at the retailer end and the bank end but the intensity of competition and innovation in this space, if we had had this conversation five years ago around the payment space it would have been very broad. >> but unless the banks come on board here in the u.k. it's going to be a no-go isn't it? i'm not going to trust apple pay

if the banks are on board. >> in the u.s. it was a cattle herd. the banks charged toward this. it was a beautiful managing marketing exercise to be able to do that. they looked across the pond and they have seen how that developed and some of the negatives that impacted the banks from that approach and they have taken a much more pragmatic view of this and say ooel get to the market when we're ready because it has to work and we'll get to the market when our consumers adopt it. i'd ignore at the moment. the banks will get there. this is a slow burn. it's not something that's going to fundamentally change the market in a three month period. >> you mentioned the apple watch as well. is that being taken up to the extent that apple would have hoped. >> according to reports. we don't know that yet. >> we'll see later on today. like everything apple pushes into areas where they don't necessarily have huge experience previously. payments being one of them.

it's a different ball game. some of these things are just not as exciting as being able to download music or a new app. these are fundamentals and day-to-day activities we carry out and apple can bring something different but it's not different enough. if you're going to change people's behaviors it has to be better than the alternatives they already have and it's what we do in our day-to-day lives. >> if you look at what customer is using apple pay and cooperating it in the way they issue transactions it's the young audience. the meillennials. >> there's a significant tipping point when you link payment to loyalty. if i can use a payment solution and i automatically get my loyalty points at the same time we saw this in the u.s. for

starbucks. they linked payment and loyalty early on and in doing so they drove the entire population -- not the entire population but a cig any significant portion to use that. that's not going to arrive in the u.k. for a period of time. >> thank you for discussing apple pay with us. now moving on shake shack is launching a secondary offering with selling stockholders offering at least 4 million shares. more than $200 million for the burger chain, more than raised in january. shake shack is trading under $55 a share. 42% off the high in may but still well above the ipo price of $21. >> elon musk says it was brought from a subcontractor that snapped under pressure but he isn't putting all the blame on it. he believes a spacex employee

may have become complacent about quality control. he is saying the accident will cost hundreds of millions of dollars in lost revenue. >> still to come on worldwide exchange investors put their chips on the table. qualcomm is under activist pressure to spin off it's chip business but what other options are on the table? we'll discuss that. don't go away. >> find us on twitter. let us know what's in your tech portfolio. we'll read out more answers later on. they also want to be part of our bed and breakfast project. >> the more the merrier. >> a greek island. which is not this.

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>> wti below in april. >> the strong green back weighing on ibm results with revenues falling for the 13th straight quarter. >> the drugs don't work for novartis. it falls to the bottom of the swiss market as a 32% slump in profit overshadows the process

pektd -- prospects of the new drug. >> in the last hour the ceo re-signing with six other executives also heading for the exit. >> yesterday we had a big rally. goldman sachs saying pile into european equities and scale back on your u.s. stock exposure. it was yesterday with the s&p 500 was close to hitting it's record high. it is now trading in record high territory. the nasdaq hitting a new high. >> new closing highs for the last three consecutive sessions and i have to say i echo that point of view in terms of having seen many houses upgrading europe or their long holdings into europe and slightly pulling back on u.s. equity holdings.

it was interesting to see the chinese volatileity and losing a third of the value in some of the stocks. goldman on that list to upgrade their holdings and say goo long chinese equity markets. >> despite the fears around chinese markets and greece gold did not get a bid. that's been a fascinating story to wrap your head around. whether gold going forward will be seen as a safe haven asset. >> that's the dollar story. >> there's more to it. >> there might be. you mean demand? chinese demand. >> china and india the top consumers. they're not taking advantage of this big drop in price or perhaps seeing it as a great opportunity when fear does rise. the question is whether people are vug it as a-- viewing it as a good asset. >> keep your e-mails and tweets

coming through. find us at seemacnbc. many of you writing in and telling us your tech holdings at the moment. also let us know if you want to be part of our fantasy bed and breakfast project. saying they want to help out in the herb garden. >> why not. >> we'll buy an island. >> all great ideas. now as you were saying tech continues to be in the spotlight. a lot of earnings coming out over the next couple of days. specifically with apple. the biggest tech company in the world. nasdaq up four points in premarket trade. keep an eye on apple ahead of the highly anticipated report due after the bell. the dow down 30 points in premarket trade. s&p 500 up fractionally. keep an eye on premarket trade. in the meantime european stocks saw solid gain in yesterday's trade. perhaps greece fears being put to the side and now back to fundamentals. economic data as well as policy and impact of the ecb policy

going forward. goldman sax upgrading european equities but in today's trade perhaps markets are taking a breather after yesterday's move to the upside. we're looking at the cac 40 down 8 points. ftse mib down about 63. we're looking at the ftse 100 down about four points. >> bond markets at the moment we saw yields being negative this morning. so we saw a little bit of buying taking place. some of the fixed income paper out there. we're looking at equities as well. you wonder if people trimming their longs adding down side protection as well given that we've seen this rally taking place over the last couple of weeks in particular places. now when talking about the yields, we continue to ceeloer yields in italy, germany state side as well. the treasuries around 2.3% at the moment. a little bit of selling in the

guild market in the u.k. i was having an interesting discussion with one of my guests on closing bell last night about when we in the u.k. could see the government scaling back of their involvement where we continue to buy gilt. when it comes to the fx market we continue to the look at the euro dollar around 108. so slightly higher. you have had a very big move in the euro dollar trade here over the last couple of sessions as well. the last week or so. we have gone from 110 or 111 and that seems to be the new holding point for the time being. with regards to the u.k. dollar against the yen a level of 124 and aussie dollar in trade a little bit higher against the green back and the pound very flat against the green back as well but let's cross out to asia

and get the latest out of singapore. hi sri. >> hi i want to give you a bit more detail on the toshiba story because it warrants more scrutiny. the shares were up by as much as 6% in the tokyo market so investors liking the fact that we have a change of management a reshuffle at the top half of this very serious accounting scandal but i think, perhaps, that the move higher in the stock price is probably a little bit premature when you consider that the profit numbers are going to have to be restated and revised for the next five years. well, for the back dated for the past five years i should say and s&p keeping a very close tab on this and they're going to make any ratings action based on the scope of any potential downward revisions to those profitability numbers over the past five years. toshiba being placed on credit

watch negative. that's the story to watch given that there's huge implications here for corporate governance so this is a step in the right direction. you're looking at near four week highs for the nikkei 225. the weaker yen is helping confidence. we are seeing the shanghai composite on the firmer terrain as well. we moved above the 4,000 handle. some do believe that's going to be the catalyst for people to get back into the market and start selling at these levels to lock in some profits. it's very important. the other performer down by 1.3%. you're looking at lows there responsible for driving the index lower. >> thank you very much. ladies. >> handing it back to the ladies. >> yeah. >> ibm's second quarter profits beating forecasts but revenue

fell by more than 13%. they dropped for 13 straight quarters revenues. up to the strong dollar and the sale of a server business. it's newer businesses, cloud software and services are growing but reported a year over year decline in all of the major lines. falling by 5% in after hours trade down some 5% in german trade as well. >> shares trading at the bottom of the swiss market after second quarter profits slumped by 32%. this was partly due to a stronger dollar but the swiss drug maker maintained it's out look look. he didn't feel the need to cut guidance. >> if you think about the launches we received approval for these are two new potential mega blockbusters. the first is for chronic heart failure. this drug has shown over 20%

reduction in cardiovascular death and 20% reduction in hospitalization. so we just received approval to launch this in the u.s. we are shipping product as we speak and that's going to help us in the second half of the year and in 2016. the second major new drug approval that we have received is a drug for psoriasis. we also think it can be a multibillion dollar drug. this has approval in the u.s. and here in europe so we're beginning to sell that now. that should help us in the second half of the year. >> and off this morning in european trade by around 2.5 peculiar. >> another story we have been watching is the move in commodities. the dollar up trend has been pressuring commodity prices. yesterday we saw gold and oil breach some psychological levels. gold falling below $1,100 for the first tile since march of 2010. platinum below 1,000. crude oil below 50 for the first

time since april 6th. big moves in the commodity market. today a bit of a rebound. gold is slightly higher on the day by 1% or $11 while copper we should point out because of slowing demand in china has also been trading at a multiyear low and today's trade slightly higher by around 1%. >> i had someone telling me on friday on closing bell that he thought this was part of the end of the commodity super cycle. >> right. >> are we still on the end of the commodity super cycle? it's been going on a long time now. >> absolutely. >> repositioning taking place. >> let's move on and stick to the broader scope, mixed picture results for the spanish energy firm that posted a drop in first half core profit down by 10% year on year. meanwhile net profit moved in the sit direction rising by 1.5% over the same period. joining us on the phone from madrid is the executive chairman. good to have you with us. talk us through some of the main

points in your report this time around. what would you highlight? >> well thank you very much and good morning. well the most important is net profits for the first half of the year increased by 1.5% compared to the year 2014. our forecast from the beginning of the year was over 5%. then i think is good news especially in the middle of the financial turmoil. the main drivers of these results have been first of all the lower costs of our net, 3% and the growth of the profits coming from our investments. >> you have been very much

highlight highlighting the drive to internationalize spain and it's a hub for related products. where are you in this process and are you still reaching out? you have projects in many places and other south american projects as well. >> our rational strategy is focused on midstream assets in key countries which are full of growth infrastructures and as of today we are in america, in peru, chile, mexico, the european union and at the same time also in the project of the transatlantic pipeline. >> thank you for being with us this morning. >> still to come on the show as commodities continue to slide we get technical analysis on the

prospects for gold and copper. that's coming up. stay tuned. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul?

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>> sap posting a mixed bag of earnings with revenue in demand for its cloud software. >> gold has fallen and it can't get up. down 8 straight sessions hitting a five year low in yesterday's trade. seeing a bit of buy in today's trade up by 1%. let's talk about where gold goes from here. i'm so glad you're joining us because to every trade there's a fundamental and technical reason. on the fundamental side of gold one would say fed policy and the lack of inflation is pressuring gold prices. what are the technicals saying though. >> the break down from november they're significant because prior to that it's been very choppy but underlyingly the trend has been downwards before we got to this.

so it's always on the cards but the down side would be vulnerable. it was required and the sell off perhaps a little bit sharper than i imagined it would be initially but certainly in the direction we were expecting. so had a little bit of a bounce back. i think the investors will be looking to sell any optics. as soon as we get back to that i think anyone that misses the opportunity to sell will be back and that's going to top the market as we see further down side to come. >> so it broke 1131 which is the bearish sign. what's the next support level traders should watch. >> yesterday's lows will be important. that's around 1080. but another 50 points or so. 40 or 50 points so we have highs and lows congestion area. area where there's activity in the past. back before 2010 and that's the activity. the buyers are likely to come back against. looking around 1043. through there we'll be talk about the magic number. >> i want to know whether we're going to see further euro selling now that yelin's system

is out of the way. >> it's weak particularly against the dollar. we just discussed it providing against commodities. range lows are technically very important. that's giving a nice pat on the charts. it's formed under the highs around 11470. the break through has confirmed that. i'd like to see a close through there today. >> through what? >> 10815 and then we're looking ultimately to the year's lows 10460 and lower. so the swing target will be around 102. >> okay. >> copper also at a six year low. most of the sell off occurring in asia overnight. is this just a liquidity issue or are there fundamental reasons to be concerned and technical reasons. >> i'm sure. people look at the growth in china and what we're seeing in the chinese equities and that's playing on the copper as well as

the upside in the u.s. dollar. so we've seen it in gold an copper and yeah downside in copper we have further to come in copper. psychological level down at 5,000. that's an easy one. you don't have to be too technical to see that as a target. but we can see it 20% lower than where we are. >> yeah that would be much lower than where we are right now. fascinating trade happening. stick with us. we also want your calls on equities. but let's get you caught up on tech stories at this hour. qualcomm may be heading for a split. the wall street journal reports the company is conducting a strategic review with options including a break up. qualcomm has been under pressure for activist investor to spin off it's business. the news comes as reports also say the company is set to lay off thousands of employees. last week eu regulators opened an antitrust probe. shares down about .8%.

that's how it closed in yesterday's trade and as you can see over the past year it is down 14%. >> elon musk is saying that the lightly cause of the spacex rocket explosion was a faulty strut bought from a subcontractor that snapped under pressure but he isn't putting all the blame on the part though. he believes that spacex employees may have become complacent about quality control. he is saying the accident will cost hundreds of millions of dollars in lost revenue. >> still to come on worldwide exchange, need a cash machine? private equity firm is reportedly prepping a bid for atm maker ncr. we get the full account coming up next. 's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger.

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>> donald trump is walking back his comments about john mccain. he is insisting if his words were misunderstood he would take them back. this comes as a new washington post abc news poll shows trump has a double digit lead over the republican field. a majority of the polling took place before the comments on saturday. however 62% of people say they would not vote for him if he

gets the gop nomination. >> president obama is nominating catherine dominguez to fill a seat. she is a professor of public policy and economics at university of michigan and also a research associates. expert on foreign exchange rates, emerging markets and international borrowing. >> now speaking of fed policies let's take a look at futures. we should be in for a mixed day of trade. down about 29 points. nasdaq up about four. we should point out given the fall in commodity prices energy and materials were the lagers in yesterday's session but tech is the big stand out. the question is what happens once apple the biggest tech company reports later today. that will be the question. but is this a time to get in on u.s. markets? technical strategist with

barclays still with us. fascinating to see the record high territory. similar story for the nasdaq. what to the technicals tell us? can stocks move higher from here? >> we need to be a little bit cautious here. we had a really good couple of weeks in the u.s. equity's space. two weeks ago they put in a reversal. last week had a strong close but this week looking on the charts a little bit like stretch in terms of momentum-wise. also thing catching my eyes looking at the longer term view here. seasonality for example. the third quarter of u.s. equities is seasonally very poor. june is a good month and july is a good month but august and september are bad on average. that's 30 years average, the dow jones industry so i'll be cautious about expecting to raise up to new highs for these equities at this point in time. >> when looking at the rally over the last one week it's the fewer stocks hitting new highs.

isn't that a worrying sign. >> we've seen a quick reaction of the market in terms of technicals. 52 week average and one week average but still ultimately we're below the highs. we have been stuck in a range for several weeks now and we're not breaking out at the moment. >> a quick word on chinese equities, has the volatility subsided? >> at the moment. that's been helped by the financial authorities. i still think that the equity market is vulnerable on the down side. looking for this market to top out between 50% move down we've seen from the record highs. as we get up to those peaks i think we're going to ceeloer gain. >> very interesting. pleasure to have you on worldwide exchange. technical strat yis at technical strategist in barclays. >> setting up a private equity owner. they took the payment process back in 07 for around $29

billion. profits struggled for years because of the amount of debt used for the buyout but data has now rebounded ever since appointing a former jp morgan executive in 2013. the company processed 28% of all global ecommerce sales next year. >> can gopro deliver on its q-2 earnings? we put the action camera company under the lens. that's coming up next.

welcome everyone. these are your headlines from around the world. >> oil continues to slide for wti. >> the strong green back weighing on ibm's results with revenues falling for the 13th straight quarter. further currency head winds for the second half of the year. >> toshiba shakes up it's management after a accounting scandal. in the last hour the ceo publicly re-signs with 8 other executives also heading for the exit. >> and qualcomm could be heading for a break up.

the firm could spin off it's chip business amid pressure from investors and regulators. >> if you're tuning in for worldwide exchange thank you for joining us. we did see new highs for the nasdaq aztec stocks continue to out per forl but we should point out yesterday's move to the upside narrow leadership at the top despite the sell off in gold. in europe european markets taking a breather despite more market participants saying now is the time to buy european equities. now that that grexit fear has subsided. yesterday was a positive session for european equities. we saw the dax gaining 1%. today a mixed trade and quick look at commodities. hitting a five year low and copper at a six year low and even oil trading below $50.

right now at wti crude right at 50.07 and brent crude trading at $56.66. louisa. >> now as mentioned ibm second quarter profits beating forecasts but revenues fell by more than 13%. they dropped by more than 13 straight quarters. giving it up to the strong dollar but even without that revenue would have still dropped by more than a percent. they're growing but also reported a year over year decline in all of the major lines. ibm falling by 5% or so in after hours trade. there was a time when imb was darling. now it is kind of a -- it's an interesting story with imb. the revenues have been offering. 13 straight quarters in a rowand they need to keep renewing themselves. they're trying. new offerings, new businesses. >> in the meantime new tech names are stealing the

spotlight. facebook amazon google all out performing and the nasdaq already up 6%. a massive move to the upside and narrow leadership at the top. it's the big tech names driving the nasdaq 100 higher. it will be interesting to see if these companies can beat expectations after google beat expectations on friday. big move to the upside. apple on slate today. microsoft among others. we'll see what happens and valuations will be part of the discussion if the stocks continue to move higher. >> jp morgan cutting ibm's price target so not everybody is optimistic. >> depends on where you're look in tech. tells a different story. >> it definitely does. loads of you writing in and telling us where you would be investing at the moment. just to mention a couple he is saying he would buy book because of the mobile app.

tom says mine candy. nathan about gopro. ted says apple and integrated device technology. it's interesting to see what you're buying at the moment. good morning to all of you saying hi. >> i love how active our audience have been on twitter. >> they're active and with us. it's fantastic. loads of people wanting to participate as well like wanting to help out with our fantasy bed and breakfast idea. >> that's your idea. not mine. >> it's a great idea. there's been rumors about buffet and brad pitt or whatever buying these greek islands so we said why don't we buy a greek island as well. >> it's a great story. >> it's almost like a crowd sourcing bed and breakfast idea so anybody that can participate, maybe someone good at drawing can go drawing courses or swimming lessons soefsh everybody can be a part of it. >> i'm fascinated by how creative your mind is is. >> if only you knew.

>> but there's something to be said about whether you'll see some of these big players come in and if it's some of the celebrity folks as you were saying, maybe it would be interesting. >> when is the opportunity there as well? you're supposed to buy low, right? when is greece low? it's pretty low now right? the market hasn't opened and things like that. when do you get in? >> when do you get? and where do you buy? on the islands or in athens? i just came back for mikinos and life was uninterrupted. you have to carry a bit more cash. >> did you have to change? could they give change back. >> have smaller bills as well that's important. >> some were saying everything costs 50 euros all of a sudden because they have no change to give back. >> depends on where you are. >> as long as you have cash on you, you're fine. >> with the avalanche of tech earnings we have been asking what's your top pick in term of

the tech sector stories. joe is saying that facebook could be a good tech pick especially with the mobile apps. join the conversation. worldwide exchange. you can get in touch with us by e-mail at worldwide@cnbc.com. find us on twitter @cnbcwex and our personal handles at the bottom of the screen at seema cnbc. now a mixed picture from s&p's second quarter earnings as net profits dropped by 15% on restructuring costs. revenues came in above high expectations. but speaking to cnbc earlier the cfo remained bullish on its prospects. >> we were actually able now for the third quarter in a row to sequentially raise the growth margins in the cloud business and that was a key contributing factor for us being able to raise operating profit for 30%. i'm happy with the trajectory we're on and the cloud is

becoming a more meaningful part of our business. >> gopro is expected to report second quarter earnings after the bell. adjusted earnings of 26 cents a share. that's up from the same period next yearful investors will be looking for further details on acquisitions. it's set to launch a quad copter drone next year and bought a virtual reality producer. gopro is trying to differentiate itself from original cameras and trying to capitalize on the content and already talks of striking deals to license the footage capturing with the gopro camera and he seems to be thinking out of the box. there's a note about how gopro is starting something with toyota. new trucks will come with a gopro mount. they're thinking outside of the box. >> looking at manage like this is pretty extreme. i get a bit sick to my stomach.

i get it. but the rest of us, we go climbing. i was stuck on a ledge that was steep but a long climb. watching somebody else's dramatic adventure can also be ridiculously boring. would you want to watch something i filmed can a camera. >> there will be moments you want to capture. >> yeah. >> i would be interested to see how much of the gopro customer audience is active on social media because it plays a big role in the content that you share. if you know you have an audience that wants to interact and see your videos you more inclined to use a gopro camera. >> dog pro. >> there's fascinating video. if you go on youtube you'll see the great content captured through gopro. what are they going to do with

the content? already news of media deals. >> i'm a huge youtube fans in term of watching stuff. >> you like it because it's free. >> no, no no. just great content on there created by our world. >> yes, you're right. >> absolutely brilliant. >> you're right. >> but looking at the other top stories today shake shack. >> it's launching a secondary offering with selling stockholders offering at least 4 million shares. that could raise more than $200 million for the burger chain. more than it's raised in it's ipo in january. shake shack has been a volatile ride. it was trading under $55 a share. about 42% off it's high in may but keep in mind still well above it's ipo price of $21. >> the private equity form thoma bravo is prepping for a buyout bid for ncr.

they're now skeptical that they can pay enough for the company. ncr rising by around 3% yesterday. >> s&p is cutting puerto rico's bond saying a default is a virtual certainty when the next payment comes due in august. puerto rico's lawmakers did not alot for debt service payments in the latest budget which svp cites as the reason for the downgrade. last week puerto rico's government asked creditors to help in restructuring it's $72 billion in debt. >> all right. >> michael says greece bed and breakfasting is what they have done financially with the imf and eu. why is that bed and breakfasting? what's the link between bed and breakfast and what the eu and imf have done? let us know. find us on twitter. still to come breaking up is hard to do. reports say that qualcomm could be headed for a split as it faces pressure from all sides. details on that in a jiffy.

you're watching worldwide exchange on this beautiful morning.

welcome back. electronic art breaks a virtual glass ceiling. for the first time in the fifa franchise a woman will appear on the cover of the video game. alex morgan will share the cover with lionel messi in the states

while christine sinclair gets the honor in canada. >> if we have been used to seeing women in football just as much -- >> soccer. >> depending on where you are would we be more interested in women in football versus what we have now? >> perhaps marketing does play a role in how we determine which sports women are more likely to play. maybe unconsciously it has an impact. >> it must. you grow up only watching men play versus the hype when men play. zach johnson battling through the wind and rain of st. andrews to win the open championship and end jordan spieth's bid for golf's grand slam. a three-man playoff. it carried over into monday. he faded the way having lead the field at the start of the final day. have you ever tried playing golf? >> i have. i'm not good.

i'm better at tennis but i enjoy the game. >> do you like it? >> it's a beautiful sport. >> it's so slow. >> it's not action packed like basketball. >> it is but once you understand the game it's beautiful. >> you're not even allowed to run you have to walk. i want to run. >> you're a big fan of hockey and lacrosse. >> i think because i used to be a runner. >> that's right. >> so if you're used to things being fast and you need to sweat and stuff than golf's a bit slow. >> it's not like other sports but still a game. >> i tried the driving range one time and couldn't walk the next day. >> you'd be surprised the type of workout you get. another story, this one is in the semi-conductor space, qualcomm is under pressure from activist investors and regulators a like and now reports say the chip maker may get a break up. landon is joining us. >> good morning to you. a lot of action going on here.

qualcomm is reportedly conducting a strategic review that could look at the possibility of a break up among other options. the wall street journal says the world's largest mobile chip maker may announce it's considering those plans when it reports third quarter results on wednesday although nothing is guarenteed. the moves may check what the activist investor has been urging the company to do since disclosing a more than $2 billion stake in april. they want to explore spinning off the chip business and cutting costs. the journal reports qualcomm might reach out. it accounts for 2-thirds of revenue but 2-thirds of profits come from royalties. in april, the ceo said the company one pleased with it's financial outlook and launched a review of the cost structure. it would discuss the review when it reports earnings this week. the company has taken steps to boost it's stock price which was

down to 14% this year. that includes a $15 billion buy back announced in march. with most to be repurchased in the next year. qualcomm would be the latest tech company to overhaul itself amid a disappointing performance. hp is is said to split into two companies. and will begin trading separately from ebay on monday. it will come during a new round of consolidation in the chip sector. this year nxp bought them for 12 billion. and they struck a $37 billion deal to buy broadcom. 15 years ago the company filed plans for a break up but scrapped the idea when it signed several big licensing deals. back to you. >> thank you for that. we'll see you very soon again. >> thank you. >> now these are the headlines if you're just joining us. gold rising by over 1% to move off five year lows following monday's commodity route.

toshiba overhauling management in an attempt to move on from an accounting scandal and s&p posting a mixed bag of earnings with revenue boosted by demand for its cloud software. nt's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics

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>> we've got mixed european markets right now. trading higher and the ftse may have been off by a couple of points. we're lower this morning but evening out by the looks of things. that fear receded but investors shifting their focus to earnings. dow down about 24 points. nasdaq seeing a gain of around 6 points. microsoft with a lot of tech

names. commodities the focal point after we saw oil and gold shares move to the down side. we're looking at it up $11 at 1107. copper getting aed by up about 1% after hitting a six year low yesterday. let's get you a run down of what to watch this trading day. another busy day for earnings. before the open we get results from dow components travellers united technology and verizon as well as bank of new york mellon and harley davidson. we hear from apple, microsoft, yahoo! yahoo! chipotle and gopro. >> analysts are forecasting that strong iphone sales will carry apple through what's the worst quarter for the tech titan. smartphone sales of just under

50 murder in the second degree will be seen up by 40% compared to the same period as last year. the stock well out performed the nasdaq. up 117% over a two year period. they have four reasons you may want to pick up apple shares before they report and they include an explosion of growth penetration into china, new products like apple pay and the apple watch. andrew berkeley is the managing director and head of institutional strategy and joins us this morning. what is in store for the trading day? what are you focussing on? >> yeah well i think the whole week is going to be more on earnings in the micro. as we moved away from the macro fears over the last couple of weeks it allowed us to get back to the underlying earnings. the bar has been set relatively low as we know. analysts always set the barlow

as the market steps over that but it's really very very low in q-2 as it was in q-1 and analysts expected earnings to be down about 5% for q-2 which is very similar to q-1 and we think earnings will be up when things are said and done. so kind of that 7% swing on the upside is significant and that's just because expectations are so, so depressed. so some of the big cap technology names you mentioned too old they'll have good earnings. apple is one of our favorite names so we would definitely endorse buying that before or after the earnings announcement. >> but the break out in tech isn't it a little suspect given that we're seeing narrow leadership on the top? about 30% of the nasdaq 100's market cap is driven by four names, apple, google, amazon and facebook. is that a concern for you? >> a little bit. i mean we're market weight tech. we have been overweight for a long period of time.

it's really concentrated at the top for tech now. i find other sectors more interesting but, you know for the broader market leadership is still generally pretty healthy. tech is an area that's a little more divergent but if you look at health care and consumer discretionary there's broad leadership in those areas. >> estimates say that apple could see a 30% jump in earnings this quarter. how important is it not only to see strong iphone sales growth but also watch sales? because there been plenty of reports and confusion as to whether the apple watch did well. >> yeah i think the watch will definitely be focused on pretty closely. our analyst thinks the iphone sales will be significantly stronger which could propel the earnings but they're hitting on all fronts as well. you mention in the lead up it's the products essentially taking market share away from their competitors. so i think the watch will be closely monitored but the iphone

is the key driver. >> do you think once the fed starts hiking rates do you think that's going to change the willingness to buy into this tech rally? >> you know historically it's interesting because technology is one of the sectors that does pretty well when interest rates are moving higher. actually short rates so if you look at all the sectors when short rates were moving higher technology has done well and that's because it was an indication of greater growth. if rates are moving higher because the global growth is picking up that would be one thing that technology would do fine in that environment. what i find interest as good that you have both commodity prices falling but you also have those bond proxy sectors like utilities and staples falling. so the question is what are commodities telling us here? that there's a global slow down in terms of economic data or just because of the stronger dollar that they're moving

lower? to me there's a disconnect between the bond proxy sectors and commodities underperforming right now. it's almost the trade that the fed is going to do something but the economy is too slow to handle. >> would you buy on the dip here? gold trading right around five year lows? >> i don't find any appeal in gold. it's either an inflation hedge of a hedge against macro volatility and they're really not much of either of those going on right now so i don't really find any appeal for gold. >> have a great morning. andrew berkeley managing director and head of institutional portfolio strategy. >> he would call it cafe mode boy. >> interesting. >> he'll be helping with the kitchen and herb garden. >> i like louseema. >> let's do it. >> that's it for us on worldwide exchange. >> bye. nt's ever been the king of the

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>> accounting scandal. toshiba ceo is out following the fact that he was aware the company was inflating the profits. the auto maker launching a new luxury version of its f-150 pick up today and it could sell for more than $60,000 american. it's tuesday, july 21st 2015 and squawk box begins right now.

>> live from new york where business never sleeps this is squawk box. >> good morning and welcome to squawk box here on cnbc. we have michelle at the table this morning. becky has the day off. thank you for being here. >> pleasure. >> you've been around everywhere now and now you're finally back with us. he gave me a look. that's not what i meant at all. >> that's what joe would have meant. >> let's tell you what's going on on the screen. it might be the off season for the nfl but the league's teams are turning in a big win. we're just getting word the franchise earned more than $226 million from national revenue sharing. most of that money coming from the league's tv deals. we have the details later in the hour but first down to business u.s. equity futures at this hour. a bit of a mixed picture. nasdaq would open