a very good morning to you. welcome to worldwide exchange. >> these are your headlines from around the world. >> global markets in the red as crude continues it's slide. in europe oil and gas stocks continue declines but rio beats expectations. >> shares in zurich slide after disappointing results putting pressure on the firm to make a bid for rival. >> there could be operational international benefits and our

investors. >> novozymes shares suffer the worst falls after it cuts guidance. >> clear as mud. markets await a data dump from the bank of england with everything due at once. this is sterling's super thursday. coming up on the show tonight is the night. the first gop debate and john stewart's last ever daily show but which one are you tuning in for? we're finding out. plus could tesla have a deal with uber. find out what has analysts speculating. facebook serves another blow to twitter as it launches a video streaming service but don't extreme to see worldwide

exchange team on there yet. we'll explain why, later. >> yesterday a pretty strong day largely because earnings were impressive for european stocks. today a slightly soft performance in the market and that comes out because of soft earnings from various companies. let's look at the sectors, gainers and losers for the year. stoxx 600 and it's oil and gas wallowing at the bottom of the performance. that's because oil prices having slid on monday stabilize for 48 hours before sliding late yesterday so oil and gas stocks here in europe reacting to that slide on oil prices during u.s. trades. moving oil and gas down 1.5%. telecoms suffering and basic resources down 0.7%. we'll be talking to an expert on the commodity price fall in a couple of minutes.

we have insurance relatively doing all right. it's in the red but it's doing better than a lot of the other sectors as you can see. let's look at top stocks. they're doing well and propping them up. it's up 2.6%. we'll be driving into that later in the show we have the ceo on. let's have a look at rsa and zurich. no love for those stocks. shares in the red after reporting quarterly results. zurich business surprising to the down side on weaker performance. rsa beating on the bottom line thanks to milder weather conditions. weighing on rsa a report that zurich is considering a lower than expected offer for the british group. rsa down 1.4%. now cnbc spoke to the ceo and asked him about any potential deal. >> very good strategic fits and

could be benefits for zurich and our investors and also made it clear that the guiding principle is not only with regards to rsa a return on our investment of 10% and that is very important and that is the guiding principle in our behavior and would say the hurdle which sets any praise for my acquisition. i don't want to refer in particular to rsa or any other company but i would rather like to be more wholistic and channel in my response and with that i just say that we have a good handle on our business. we have the right expertise around the globe and i think that the short falls on expectations are mainly due to the very specific large losses in our global corporate business in north america and as well to some large loss to some degree

two large losses in the u. k. and in both businesses we have leading market positions and with that we have to expect some volatility. this is unrelated to any potential acquisition situation. >> shares really slumping today. 3.8%. first of all let's talk about the earnings. they were weak. general insurance taking a hit in north america and also in the u.k. and one analyst points out that this business hat surprised on the down side for the past couple of quarters. what they want to see for shares is either capital deployment in acquisitions or share buy backs or acquisitions. they said earlier on that they won't overpay. they will want to hit something that fulfills their 10% return on investment target. if rsa doesn't hit that they won't go for it. in that case they'll do capital redeployment in a different way.

>> this reaction today and the share price down 3.92% is more to the earnings than to anything with rsa. he was distancing himself from an overpriced deal. that's one of the big fears that the deal wouldn't come through. >> we don't know what rsa is demanding. because they said they haven't been notified. >> but investors are fearful of an overpriced deal. but he didn't have many answers for this disappointing set of earnings. they maintain their target of 12 to 14%. they missed that last year and in the first half coming at 11.6% and this is much more to the earnings than to any potential deal. >> although the analyst community wants more details. what do we know what the next step is in terms of a deal coming together between zurich and rsa. >> they made it clear this morning. they also came out with numbers and what do you do as your best defense for a takeover deal? you come up with really good numbers. that's what rsa did today.

their first half profit quadrupled but as i said before they haven't received any notification of a deal and that's why they're telling their shareholders don't do anything for now and steven hester saying this morning on the call the ball really is in zurich's court so we'll wait and see if they continue to look for the bid. >> they raised their profit forecast after posing better than expected second quarter earnings. they benefits from higher income from investments and lower damage claims but warned there's still pressure on price and stay tuned we'll be joined by the company's ceo in a first on cnbc interview at 11:15 cet. adidas is looking into options for its ailing golf business.

this as they post slightly better than expected second quarter earnings thanks to sales in europe and china. >> descent set of numbers. they're buying a fitness app for 240 million dollars. fairly interesting. not a huge deal for them but obviously an interesting change in direction and getting into this quite obsessive market of fitness tech and the other thing i think also being questioned about is the fact that they just announced their deal with manchester united. 750 million over ten years. man united probably will be really good this season. i'm sure that will come back to haunt them. >> just going through the numbers breath of fresh air. adidas with a jump of 19.3%. so many people referencing china as a pain point but they see growth in that region despite

the volatility in the market as well as in the economy. does that suggest that the chinese consumer is still spending? >> no, i agree with you. growth in china. europe also doing well. so their new strategy is paying off but we have to talk about golf too because we saw that 26% slump in the u.s. golf brand sales and that's surprising because we're seeing so many u. s. golfers doing so well. why is golf not more popular in the u.s.? >> you actually have football and basketball that continue to dominate with the younger audience so that's why golf is perhaps not seen as the best bid at this point. but we'll see what happens because traditionally in america golf very popular. >> yeah and north america 50% of the global golf market. so if it doesn't work there. >> it's boring golf. >> is it? >> yeah. >> that's where the deals get

done, wilf. >> but the idea of hacking your way around for like four hours. don't get it. i like the focus of a sport that takes an hour or so and it's really exhausting and then you're done. anyway, we're digressing. let's get back attorneyings today. novozyme shares on the back of weak second quarter earnings. in light of those results the shares are down 9.73%. novo nordisk down 1.1%. deutsche post on a year by year decline. it cut it on the back of structuring costs and labor disputes. the cfo said the strikes are fully to blame for the career company's weakness. >> it's absolutely the major factor that lead to our decision to reduce the guidance. we had about 100 million of

costs and reduced the rake by 100 million on the upper end and lower end. it's just reflecting the activity. >> now trading lower as well on the back of a slow down in german mobile. this outweighing strong core profits up 13% thanks to strength in it's u.s. business. it's off 1.9%. let's look at markets more broadly now. >> as you said before we were higher on the back of better earnings today. it's the reverse. the stocks europe 600 is down by a third of 1%. we had some of those disappointing earnings out and then you continue to worry about oil and gas price. we've got the xetra dax up by 0.2%. the ftse 100 is lower by a quarter of 1%. in the bond markets we saw sea sawing in the bond yields

yesterday. we have that disappointing adp report. yields were down and then the better than expected ism report and yields were up and also helping the dollar. quick look at the dollar today and we also have super thursday for sterling and that's really crucial. 15597. >> still to come on worldwide exchange, awaiting a triple whammy from the bank of england. we go live to thread needle street where julia is on stand by to preview super thursday. stay tuned.

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>> shares suffering heavy losses. outlook on the back of weak second quarter earnings. in light of the potential tie up in a first on cnbc interview earlier the ceo insisted overall he is in favor of consolidation in the space. >> it's always a balance in our business. on the one side it may become tougher to price. gives innovation opportunities we don't have in the less consolidated world. if you can allow yourself that term i prefer consolidation because it gives us more

opportunities. now that's not the specific comment to monsanto and syngenta but in general we see more opportunities arise. >> so that's off 9.9%. novo nordisk says it's portfolio was negatively impacted in the first half. they still managed to post a solid set of numbers and raise it's outlook thanks to strength in it's diabetes drug. we asked about the outlook for chinese markets. >> we see the same projections that you're seeing 1.3 billion people changing life style to a more urban lifestyle leading to many, many more people developing diabetes. short-term we're feeling the slow down in the chinese economy influencing the authorities ability to pay for health care. we're seeing impact from the

anticorruption drive which reduces our access to doctors and we're seeing competition from local manufacturers starting to gear up manufacturing. >> now switching focus, five former employees of a brazilian construction firm have been handed jail sentences for corruption after a judge said they were involved in the petrobras scandal. >> it's just getting bigger by the day and what's significant here is we're looking at five employees all together but the former ceo has been sentenced 16 years and four months. bear in mind in brazil it's not always that executives will see the full term of their sentences. we're likely to see requests for part of it to be served at home but also the lawyers are saying their clients are still innocent and they do intend to appeal. this is the second round of sentencing we have seen for executives at big construction if i recalls and this is at a

time when brazil has been trying to boost spending and the feeling i get from sources working at banks say nothing is getting done and this activity has been crippled and this raises the question of who is next. we've seen on monday a former minister was arrested and is denying any culpability but also the closer it gets to the current president and that could spell real trouble with threatening impeachment charges. >> that's the problem. it's so problematic and that's why it has fallen so heavily. i believe it's the worst performing currency so far this year off some 24%. >> almost down about 30% now i believe and the concern is they're trying to preserve their credit rating at the moment. we saw s&p drop their outlook and the timing could not be worse given that we're approaching the fed rate hike and the commodity sell off hits brazil especially hard given the oil resources there so not a good time and congress is back

in session now after recess and we did see the speaker in congress say he's removing himself from the government coalition so that could spell additional trouble. >> thank you so much. the u.s. mining giant reporting 43% slide in mining profit. shares are trading higher as you can see on the board. meanwhile, randgold managing to deliver a profit despite the falling gold price. this on the back of taxes and joint ventures including it's mind in the congo. in the last few minutes the ceo said it's possible gold may drop below $1,000 this year. >> gold is slightly up on the day but currently hovering around a 5.5 year low. meantime wti crude is currently trading at its lowest point since the end of march. 44.98. back below 49 slightly higher on the day.

let's get to director of metal's research and strategy. thank you for coming in this morning. what are your colleagues saying about how low oil can go? is 30 the new 50? because we're getting into winter where refineries are slowing down a little bit. we're no longer in driving season. where are we headed? >> our oil guys are talking about prices going lower. we haven't seen any impact on the shell producers in the u.s. they have been able to cut out quite a lot of cost. we do think this oversupply situation continues. we've had some news that saudi is beginning to think about adjusting it's production but that seems to be a little bit too little too late at the moment. >> we've seen this decline and been talking about that around the desk for days now. this is a huge drop in the month of july. this is the biggest drop since lehman happened. we're wondering what exactly

triggered that? is it the dollar strength? is it oversupply? other factors? >> i think it's a whole combination and you've seen it. it's not just oil it's happened across the space as well and obviously china concerns and dramatic oversupply to a certain extent with aluminum as well. less so with some of the metals where you haven't had a dramatic oversupply situation but it's more the macro factors. >> let's talk about china. beijing is desperate but ineffective efforts to stimulate the economy. has that also pushed commodity prices lower? >> i think, yeah. i mean we have been talking a lot this year about new stimulus and the most recent news is a big, big bond issue to try to drive infrastructure building

and we see government trying to impact initiatives. >> what about copper and iron ore? is that reacting to what's happening in china rather than in the clearer supply dynamics we're seeing? >> there's a little bit of difference that iron ore is being dramatically oversupplied the last year or so. so that's definitely been a factor on the down side. in the copper space we haven't seen this dramatic oversupply situation. we do think we're actually well into the cost curve in terms of where prices have fallen to between 5 to 10% so far this year. so there's some slight differences on the fundamentals but the key driver is quite clear on the macro side.

>> and gold had been relatively resilient for quite sometime. is that quite a meaningful number to fall below? where do we have from here on gold? >> we have to head further downwards. on our spot target basis we think we'll see a thousand gold ahead of september. there aren't really any fundamental issues that support gold. it doesn't matter what physical consumption is it is acting as a proxy currency and no one wants to hold it right now given the expected u. s. rate hikes. the markets pricing in september. we've seen significant outflows in terms of positioning. reports money managers went short for the first time ever in last week's report.

so, you know the investor space has fallen out of love with gold for the time being. >> thank you. >> now malaysia's prime minister has confirmed debrises from a jet found last week on reunion island is that of malaysia airlines flight mh-370 that vanished more than a year ago. let's get out to eunice falling the story from beijing. >> hi the families of the passengers a board mh-370 have been on route now to beijing for a meeting with ma alaz juan airline officials that are supposed to be holding that meeting on friday morning. these people are specialized in handling the matters surrounding mh-370 and the families are hoping to get more answers. many of the families were devastated when overnight they got confirmation from the malaysian prime minister who confirmed that the wing fragment

was part of the missing plane. but now they were questioning why the malaysians were able to confirm that this wing part was part of the missing plane where as the french prosecutors and boeing were a much more hesitant in making that sort of declarative statement. so the families now today have issued a statement saying that they want to hear from the french investigators as well as from boeing really making a statement that this was a part attached to mh-370 and also the chinese government issued a statement saying they're hoping the malaysian side will carry through and follow through with some of its promises to many of the families as well as to

continue with this investigation into the missing plane. some of the families were frustrated with the chinese government saying that they haven't actually done enough to try to pressure the malaysians. they have also of course been very upset with with what they see as increasing mishandling on the part of the malaysian side and that's where most of the blame is laid for them at this point. guys. >> thank you so much. hopefully we'll get some more answers in the coming days. >> japanese prime minister shinzo abe lead a ceremony in hiroshima to mark the 70th anniversary since an atomic bomb devastated the city and rocked the world. john kerry watched the event and told reporters it showed the importance of a recent deal on nuclear weapons. the bombing is credited with ending world war ii by claiming the lives of at least 140,000 people. let's leave you with a poignant moment. that bombing was commemorated in

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global markets in the red as crude continues it's slide. in europe oil and gas stock lead to declines but rio tinto clings

to some green after a slide in profits beats expectations. >> disappointing q-2 results putting pressure on a swiss if i recall to make an offer for u.k. rival rsa. >> we see a very good strategic fit and we also see there could be operational benefits for zurich and our investors. >> a chemical reaction. novozyme shares suffer the worst fall. >> clear as mud. a data dump from the bank of england with that all due at once. this on sterling's super thursday. >> some u.k. data hitting the tape. we're looking for some manufacturing production data and industrial production. manufacturing output is a plus

0.2% month on month and plus 0.5% on the year. that's just about in line with expectation on the monthly number and we're looking at industrial production down 0.4% on the month plus 1.5% on the year. sterling is flat but it is also super thursday which we have been looking forward to for sometime. the bank of england is preparing to release the latest interest rate decision. the minutes of that meeting and new inflation report all at once on the same day. this as the debate continues over when to pull the trigger amid a economic backdrop and strengthening pound. sterling is up over 7% in the last six months and we have seen super julia to the bank of england, jewels.

>> 45 minutes later if that weren't enough mark carney himself would speak and they were able to calibrate the response and whether or not they got ahead of themselves coming forward. if we look at the minutes there's been all sorts of talk. i think ubs has the best one. if we take a look at that you get a sense who are the hawks, who are the doves? very familiar names there. david miles his final meeting today on the more dovish side and then if you flip to the second chart you get a sense of the rhetoric reheard in the last few weeks and how it has been a hawkish tilt and that's also been priced by the markets. the timing by around three

months in the last few weeks. the first hike comes in april and may of last year. the question is is mark carney happy with that? that brings us to the inflation report. sterling, the strength in sterling. the rally against the euro we've seen and 3% rally in strengthen strength since that meeting is a factor. it's got a deflationary impact and more broader commodity prices and then we're starting to see wage increases filing through. a touch of weakness in the unemployment situation and employment situation in the u.k. economy. that's what it boils down to. whether or not in the short-term we see a drop in their inflation forecast versus a pick up in their inflation forecasts out to the 2 to 3 year point and that's what we're going to be looking at here today and of course when mark carney speaks irrespective of what the economy is telling us we know there's hints from

within the monetary policy committee that zero can't be the case for rates forever and ever. they want to test the response to a rate hike in a similar way and they also want to reign in some of the enthusiasm quest for yield going on in the market. so a really fine balancing act for mark carney not wanting to stimulate further strength doing the tightening work for them. expect a lively couple of hours from midday u.k. time. back to you. >> thank you for that. let's dive into more of the detail with the chief european economist at jeffreys. let's talk about one of the point there is that julia mentioned and how we expect the members of the committee to vote. do you think we'll be getting 3 to 6 or closer and closer to amajority wanting a rate increase? >> it's certainly possible. you have three and maybe even four. it's possible for example that

even though he knows it won't have relevance, it will be nice for him to say rates will go up at some point but who knows? we're assuming two at least. >> we are getting closer. the factors are starting to come into line for a rate hike but does the fact that sterling has been strong julia mentioned it has been strong against the euro but also against the dollar the last couple of months. does that allow a little bit longer than perhaps otherwise. >> if he wants to absolutely. i mean the decision is finally balanced. we always said that november was the first month they could raise interest rates this year but it's also very likely that hates could be pushed back into 2016. so data dependent. manufacturing figures today encouraging given the rise in sterling but the weakness of global growth.

it's being lead by services. outside financial services but that continues. sterling you have to think about that. >> what's the number one factor that would stop the bank of england from raising rates in 2015. is it the stronger currency or the lack of wage growth when taking a look at the labor market in general. last year they did a lot of work and they have their own estimates of what the unemployment rate in the u.k. is and last time in may they highlighted effects in the market pushing down wages but these effects are all supposed to be temporary so the idea is as we go through into 2016 wages do accelerate. in the private sector they have been picking up.

so you know also productive has been increasing. that's the other thing. so at the end of the day there's no inflationary pressure. they're going to raise rates. >> if you look at wages only and you mention very strong wage growth in the second quarter, 3.2%, even higher for the private sector when you compare that to the u.s. shouldn't the u.k. go first in terms of hiking? >> you could argue that. but at the end of the day both go broadly at the same time. it will be interesting if the bank goes in november -- we have long felt the fed would go in december. also the central banks know there's a risk here. you raise rates and you have to bring them down again. they are forced to bring rates down a few months later so that's at the back of their minds. it's a risk. >> this whole exercise is about

transparency. releasing everything on the same day and everything at the same time. this is going to lead to a lot of volatility and guilt in sterling but you could argue it's beneficial because we know a little bit more about the communication. it's less muddy in a way but then on the other hand mr. carney was wrong so many times. will today's exercise make any difference? >> it's going to be very interesting at 12:00 because people like us will analyze the inflation report and look at the minutes. the market will move on the back of that and then mark carney gives a press conference and we'll have lot of what the market has been doing and we'll try to steer expectations further. but it does give them the ability to raise rates and they reduce minutes along side the policy decisions. slightly more flexibility going forward. >> thank you for joining us. i hope you have a wonderful super thursday.

>> moodies changed the outlook on the u.k. banking system from stable to negative. they said we expect most balance sheets to improve in 2015. also changing the outlook to britain's underlying growth. >> london city's airport is up for grabs. global infrastructure fund put the airport on the market with the aim of selling it by the end of the year. that according to the financial times. the sale could raise up to 2 billion pounds. >> another difficult day for london computers as they're shutdown in the second strike in a month. four eun rons are taking action in a dispute over pay and plans for a new underground service on the weekends. time to put on some comfortable shoes and walk to work. you put on really comfortable shoes this morning. i saw that. >> was that the reason? >> i will be walking home today so i came in in trainers and

casual clothes and you guys have been on me all morning because of it. >> that's a great day to do that. >> thank you very much. so there we go. but as this london tube strike takes place today, workers preparing to walk out again. are we facing a summer of discontent across europe? check out some of the industrial action which could impact you on our website, cnbc.com. >> and still to come on the show debating the donald. can anyone steal donald trump's spotlight in the first gop debate? we'll go out to cleveland for a preview. that's coming up after this break. don't go away.

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welcome back. all eyes will be on donald trump when he and the other top ten polling candidates take the stage for the first republican debate. what can we expect? let's get out to tracie potts live in cleveland with the latest. hey, tracy. >> hi there. good morning everyone. we're outside quicken loans a eerie in a in cleveland where both debates are happening tonight. remember there are two. there are the seven candidates

that didn't make the top ten primetime cut and they'll be debating a few hours earlier and the big primetime debate is happening earlier. john kasich barely made it into that debate. he's not necessarily a shoe in because this is his home turf. all eyes are going to be on donald trump. he is number one in the polls right now and he promised he wants to focus on the issues and not personal attacks in this debate tonight. by the way he is new to debating where some of these politicians are not. they're not doing opening statements as they typically do. they're going to go straight to questions and try to keep it moving. a lot of questions about issues like iran and the economy.

a couple of the candidates are already in town. >> thank you very much. all the candidates may be breathing a sigh of relief as john stewart prepares to host the daily show for the final time. the daily show has become known for its relentless satire of political and media figures. under stewart the show won the emmy for outstanding variety, musical or comedy series from 2003 through 2012. >> so which are you more excited about? john stewart's last daily show or the gop debate? join the conversation here on worldwide exchange. get in touch with us worldwide@cnbc.com or twitter @cnbcwex. i would have definitely gone with the daily show given that we are so far away from the actual presidential debates and the actual campaign seems so early but donald trump added a huge level of spikes and interest in the gop debate. >> from speaking to my american friends that's spot on. everyone wants to see what his

debate skills have been like. we've seen him speak and many provocative things he has been saying about the economy and issues but this time around what is it going to be like trump versus bush. >> it would be awesome if you mix up the two, if the daily show host john stewart hosted the debate or mr. trump if he appeared on the daily show. >> or if john stewart was a candidate. >> that would spice things up. >> that would be funny too. >> but also as you're saying seema, when he announced his candidacy, he kind of messed up his speech. it didn't seem like he had practiced it. one of the great things people liked is he comes out with whatever he is thinking and he says it. the daily show with john stewart is the amazing end of an era and nobody knows who will be his guest. that's quite intriguing. >> do send in your thoughts via

twitter at cnbcwex and our handles are at the bottom of the screen. we want to see your correspondence. earnings shares are in the red after the german firm warned it's 2015 profit would drop significantly and fall below last year's level. europe's largest distributor said it will close 17 of its global sights. joining us now on the phone in germany is the ceo. thank you for joining us this morning. just how challenging is the environment for you and hough visibility have you got? any sign of any bounce back in the second half? >> prices came under pressure in the u.s. we also had problems of the appreciation and q-1 and q-2 was

challenging and disappointing. things looked a bit better in the second half of the year so we expect a significant improvement and never thetheless full year results will be weaker than last year. >> you have said you're accelerating your restructuring program. i just wonder whether that is enough to offset the impact of falling steal prices. isn't this an industry which is automatically headed for consolidation? and do you want to be part of that? >> yes. prices are in europe and north america more or less under pressure since 2011 and in france, especially in france the situation is even worse because of the construction industry which has also gone forward very

difficult and therefore we increase our restructuring efforts again by closing 11 times in france. consolidation, in principle, i would say an industry like us should consolidate but on the other hand the scale effects are limited and this is also the reason why for instance we are seeing no more real consolidation on the steal producer side and therefore i expect closures. i expect capacity has been reduced. but not that much consolidation. >> as well as structural changes as you say, reducing capacity in the industry at the moment are we going to see geographical shifts in the industry and where steal is produced? i wonder whether the weaker yen gives a lifeline to older japanese steal producers.

is that something you expect? >> i hope not. because of the overcapacity in china are huge anyhow. we have about 9 million tons capacity and china is only 600 million. so a significant part is distributed to the markets and oil markets are out of balance. so any new capacity or any new increasing imports will deteriorate the situation even more. >> given the scale of intervention from chinese regulators and leaders as well one would think the commodity market and demand would be picking up but it hasn't. we'd like to get your thoughts on your forecast. do things get worse before they get better when looking at chinese demand? >> yeah. i think in china the situation is probably even worse than what we are seeing and therefore i don't think the development in china will improve any time

soon. this is by the way also the reason why we're exiting china in the third quarter. >> thank you so much for your time. appreciate it. the ceo of kloeckner and big news coming from dimeler. they reached a new sales record in china in the month of july. up 41% year on year and this guys is in stark contrast on what we have seen from the likes of bmw and audi that suffered on the lower sales from china. from the month between january and july they have already sold more than 1 million cars. that's for the mercedes benz brand and that's an increase of 50.7% year on year. july global car sales up 16% on the year and once again mercedes benz china july shares at 42% on the year. shares up higher by a third of 1%. but good news none the less. >> that july figure so

surprising. you'd almost expect the share price more than a quarter of a percent. >> absolutely. >> in the green nonetheless. >> fitbit second quarter beating forecasts. cnbc has the full details. >> it was a wild roller coaster ride for fit bit stockholder afs the after the first ever report as a public company. they reported 21 cents on an adjusted basis and 7 cents a share on a basic bases. analysts were looking for 8 cents a share so it appears as if the company beat on an adjusted basis. revenues, however, a solid beat coming in here. $400 million. analysts were looking for $319 million. the company also offered solid guidance for the current quarter and the full year. however the shares got hit and they got hit hard.

some traders attributed to profit taking on shares that rallied nearly 4% during the prior regular session and are up 160% from the $20 june ipo price. there are still analysts out there that are bullish on the report like bob peck over at suntrust. >> looking at the numbers, they beat on units, they beat on revenues, the guidance on the full year are better than anticipated. if you had to nitpick here there's a couple of different things. one is the revenue growth rate does slow as one would expect. the margins are lower than we just saw. a little bit of inventory bid as well and gross margins were down a little bit but this is a stock going back to where it was five days ago and is still up. >> the bottom line is that shares were due for a breather after a strong upside run and that the results while positive may have been a catalyst for some to take some profits here. back over to you guys. >> that's interesting. one investor i spoke to after fit bit said the only thing

working for fitbit at this point is the fact that apple still hasn't gotten the watch right. but once they do it would be game over for this company. you should look at consensus. all buys on the stock and the average price target much higher than where it's trading at right now. >> shares were down 15% yesterday. that's a pretty big drop but up 160% since the ipo. so i'm actually surprised that so many analysts out there still have a buy rating on that stock given that it's had such a fantastic run and we don't know what the outlook is for the smarter fitbit-like wearables out there. that's the big unknown. >> indeed. we'll be talking to an expert analyst in about 35 minutes time on fitbit so do stay tuned for that. >> plus the ceo james park will be on squawk on the street today. that's at 10:00 a.m. eastern. you won't want to miss it. >> a beat on the top and bottom line wasn't enough to stop tesla shares from falling. >> shares of tesla coming under

pressure after hours after the electric car company lowered it's delivery guidance for the third quarter of this year and it's full year delivery guidance. that's because of the challenges the company will be facing as it ramps up production of the model x suv late this quarter starting in the fourth quarter and as it goes to the end of the year. for this third quarter, tesla's delivery guidance is at 12,000 vehicles. most on wall street were expecting guidance of at least 13,000 vehicles and for the full year tesla has lowered it's delivery guidance. previously the company said it expected to deliver at least 55,000 vehicles this year. now it says it's full year delivery guidance will be between 50 and 55,000 vehicles. again, because of the challenges of increasing production in the fourth quarter here's ceo elon musk on the analyst conference call talking about the challenges of increasing production. >> we do think that it's going

to be quite a challenging production ramp and if we are faced with the choice of deliver -- we only want to deliver great cars. so we don't want to drive to a number greater than our ability to deliver vehicles. >> the company may not be free cash flow positive in the fourth quarter as was the previous guidance. that may not happen until the first quarter of next year. as for the q-2 earnings they were better than expected. tesla's loss was 48 cents a share. slightly better than expectation on the street of 60 cents a share being the loss for the quarter. revenue coming in at $1.2 billion. a little better than expected. but shares of tesla under pressure after the company lowered it's full year delivery guidance now at 50 to 55,000 vehicles versus the previous guidance of at least 55,000

vehicles. that's the story from here in the u.s. back to you. >> facebook is taking on periscope and merecat launching it's own streaming feature. but now for its only celebrities. dewayne the rock johnson and serena williams already started live streaming video. they can post a live broadcast with real time comments. the videos don't disappear unless deleted so they can be watched multiple times. facebook won't say when common people can join the action. >> and coming up snacking in the food sector. find out why bill ackman scooped up a 7.5% stake in mondelez. that story coming up. don't go away.

welcome everyone to the second hour of worldwide exchange. >> here are your headlines from around the world. >> let's start with m&a. big ackman takes a bigger bite out of modelez. reports surveillance quest the investor could be considering a take over of the snack maker or a merger. >> tesla shares in reverse after it's slashes it's guidance. wti still on the slide and brent falling below $50. u.s.