welcome to "street signs." let's give you some headlines. online retailer increase in profit. u.s. should not harbor a terrorist. turkey demanding the extradition of fethullah gulen. just how dose the coup came to success. >> it was a close call for everyone to be honest with you

because this was rather unusual in the sense thatle they were so crazy that they could actually airborne by ail f 16 war aircrafts. investors cheer more cost cutting measures sending sharing higher. ericson ceo hans vestberg. the republicans take aim on wall street, but first day of con ve convention, melania steels the show. >> if you want someone to fight for you and your country, i can say sure you he's the guy: >> i warm welcome again to

"street signs" in sunny london. we have a similar thing today tilting to the downside as the stock europe 600 lower now by .9%. the ftse 100 by .46%. the basic resourcings off today a gain by just over 2.# 5% as you can see. we have a stronger dollar. similar to what we saw in the u.s. session yesterday. ail off once again in the session too which is leading that sector lower as well. a key focus though this morning on the retail sector too which is outperforming. why? one reason is the plan doe share is trading sharply higher after the online retailer raised its profit forecast. also reiterating a guidance for

revenue at the end of the 25% bracket. losses meanwhile now trading around 2% higher. this as investors digest a companies plans to cut costs by twice as much as previously thought. the mobile equipment maker reported a 24% decline in second quarter net profit and said demand continues to fall. ceo hans vestberg joins us later at 10:30 cet. akzonobel second quarter result were just ahead of expectations. now chrysler has been probed by the u.s. justice over alleged misreports of car sales. fbi agents have visited the

homes of nine regional managers as part of an ongoing investigation. novartis has lowered. company plans to increase markets expenses for it's heart failure drug however court income and revenues in the second quarter came in higher than expected. now elsewhere and moving to the tech sector now, necessary felix shares more than 13% as inve investors get a beating in second quarter innings. >> plummeting and projected subscriber in third quarter. added 1.7 million members, far fewer than 2.5 million it projected. while the number of new subscribers on target the amount

of people dropping the service came as a result of a price increase kicking in. that was higher than expected and will continue to affect numbers. >> people don't like price increases. we know that. it's a necessary si base to get through. with the increased revenue we're continuing to invest in better and better content. that's what makes us feel positive about the long-term. >> saying the disappointing results are not a result of competition or market saturation, but that they're finishing the quarter with over 83 million members and they believe the opportunity ahead is as big as ever, but the opportunity does not look like it's in china now. the regulatory climate in china for its service has become more challenging. continuing to explore options there. in the meantime the company has plenty of work to do in its

newly opened markets. the revenue was right in line with markets while earnings per share were a big beat. this as those higher prices lift netflix's bottom line. back over to you. back in what could have been yahoo's last ever earnings report. announced a beat on profits and a miss on revenue. advertising business reported final bids on monday. it is expected to announce the winner this week. with the deal closing in the second half of this year. voluntarying fell by a third of 1% after ouhours. ibm saw a 30% boost to cloud revenues. turning off fears of a brexit hangover. joining us is conner senior

analyst. talk through all the numbers. great to have you on the show. i want to start with netflix. epic fail. >> absolutely so the numbers are fine. the underlying issue here is of course as your previous commentator pointed out was the net adds on the sub jiscribered side. we must of course remember that netflix is a fang stock. very expensive from evaluation standpoint: can't afford to miss numbers. >> pricing concerns. some subscribers deregistered because they're concerned about price increase. >> we have to remember about a successful company is they have to operation in a number of channels and that's what we're not seeing here at all with

netflix. it needs to think like say an amazon in. it must have a number of lines of businesses that are doing really well and faring on all cylinders to justify the underlying evaluation. that's not the case. >> their budget this year for content is huge. i think they said $6 billion. particularly as you said, you've got to be able to prove that you cannot only just in fact in that content, but actually monetize it. >> that's rights. in one way it was lovely to see them from content distribution to content creation. that's where the ip right side. now it needs to move beyond there and think what else can i move i would say look at somebody else's play book. now it's the world's greatest host r in terms of cloud

application. >> other than the content they're producing. >> any of it from the p subscriber side. think about let's say a previous story on nintendo and pokemon go. there's a company able to regenerate itself. >> interesting. let's move on to yahoo. what did you make of this? the thing that jumped out at me the mobile video, we saw revenues drop there. this is meant to be their core strength. >> every legacy technology company needs to be doing something new. we put the new technologies in a bucket. call them the smack stack of stuff. every company, an article, an sap, a yahoo has the need to have these growth drivers in the business fail from yahoo. at the same time, the story is really only about the sale of the core business. >> yes chl.

what are we expecting there? all the value of this is in alley bar baa in japan. >> exactly. a bit frightening last nights. we thought we would hear more from the company. >> when are they going to do that? what are you expectations? the bids were. >> the bids were last night. >> and now the clock is ticking. >> yes. what about ibm? >> i would love to the clock is ticking at ibm as well. we had 17 quarters of revenue decline. the new stuff just isn't big enough. compare and contrast with soft bank yesterday. spends big to get arm to drive in the new technology story. ibm should have done a similar thing. just not moving the dime.

given you just mentioned soft bank, i want to ask you a quick question about. this is something you said ibm should be doing. >> absolutely. >> they got hit by 10% in asia overnight. >> down 11% afterhours so expect profit taking today as people get a little nervous it can't go through to complete. in terms of the ceo there he talks about the crazy idea. arm is a crazy idea. clearly his challenge is sell it to his shareholders. look at what's been good with ibm. nice dividend yield in the stock which is why we had to lift last night afterhours. >> i was asking the question yesterday. >> who so one of the issues with tech is always expect something

from left field. i think the obvious candidates are stuck in terms of regulation. >> yes. >> that doesn't apply to soft bank because that's basically an industrial buyer so there's no issue there. i think google is a great idea because that's another company that has been able to see the writing on the wall, extend your business model into co-related areas. however with google i don't see the hardware guys. their the ip guys. >> gorge, great to have you on, senior analyst. let's move on. the number of people detained or following friday's failed coup sores to 20,000. the crack down as well calls to reinstate the death penalty from plotters. turkey's international allies who call to uphold the rule of law. joining us now is hadley live

from istanbul. good morning. i know you've been speaking to the prime minster here. how did he address this that the crack down has gone too far. >> he was much more pragmatic and measured in his response when he was talking about the death penalty. when he was talking about the extradition. he was talking about how turkey has to play both sides because they're stuck in the middle. literally stuck between east and west here when it becomes to the fight against the islamic state and the migrant crisis. they need allies, nato aill lie. talking about prosecuout presidn

four days before the attempt. the reality of his situation so speaking to the department minister did hear a more pragmatic approach. just how unprepared in government was as well. take a listen to what the deputy prime minster had to say. >> it was a close call for everyone to be honest with you because this was rather unusual in the sense that they were so crazy that that could actually airborne literally by f 16 war aircrafts, parliament, palace, other sort of like head quarter of police so they were bombarding. it's like an enemy force literally. so these were the really insane s so, yes, a very close call for many and for us and for much of

the country. to be honest with you, if it had not been for the courageous act of people, turkey would be in a very different situation. so people have stood up for democracy and turkey has avoided a big catastrophe. >> just how close they came to being taken from power and how close this government came to falling. the more you really understand why this crackdown is happening to the extent it's happening, but you have to also understand it was very, very quickly that they got to work in terms of booting out people they thought were responsible or complicit in this coup. we've been told by multiple people, they had these people on a list. they knew already who was involved because they were anticipating something like this. they just didn't know the when or the where or the how. i want to take a listen as well

to what the deputy prime minster told me about reinstating the death penalty. >> there's public outcry. people who have been murdered by tanks, by -- think about it. put yourself in our position with massive public pressure. so, yes, ultimately that's going to be considered, but it will be considered with all aspects of it, and therefore we have not made any decision on that front. what i'm trayying to say is thi we remain committed to european perspective. we want to remain firmly anchored to european union. we want to continue to enjoy strong strategic partnership with u.s. and europe. we need europe. they need us. there's no question we need each other in combatting

international terrorism because it's a global problem. no country on their own can deal with this. we need each other. no question about it. therefore we welcome the u.s. and european stands against the coup perpetrators. they quickly came out and they said they are legitimate will elected government. that's very encouraging because that's what should be. and that's how it should be and that's how it has been. in that sense, i don't seem in this event or other events leading to a major fallout between us, europe, and the united states. >> so the deputy prime minster saying again, and, again, we are anchored to europe. we need to stay in close relations with europe. this is a country in turkey itself that's been trying to or at least attempting to become a member of the european union for years now: when i had this interview yesterday evening, it

was late in the day. the deputy prime minster had just come off a very, very long and extensive cabinet meeting. we talked about eu and what happens post-brexit, the question of turkey joining the eu at this point is pretty much economic. it's about getting turkey to the point where it can play on the international field with countries in the european union and getting reforms in place and he said they're well on the way. >> it's economic for european too. i want to ask you is what happens with the security in the country? they're talking about addressing and tackling issues and the likes of the islamic state, but when you've got now more than 6,000 soldiers detained, what is the security arrangement. they have to start to tackle issues like anymore. >> it's something that should be terrifying here. we're talking about the islamic

state b and pkk. when you talk about 20,000 people who are being detained at the moment, there's no sign so far this crackdown is any sign of getting slower. there's no end game at this point in terms of rooting out it will elements that this government says we're behind this coup attempt. you know, they are remaking the security apparatus of this country. there's a doubt of what that means going forward when it comes to the islamic state and military cooperation within nay to and other allies as well. it's anybody's guess how this is going to play out over the short to medium term. you would be understandable if you were feeling aert in secure about what's going to happen next. great interview. let's move on 17-year-old migrant injured four people in

southern germany last night. police shot and killed it will attacker as he fled the scene. officials say it's too early to establish a motive. now, we've had some comments this morning talking about the uk economy. they're saying the creditworthiness is on the downward pressure following the eu exit voice, but important strengths remain. the economy will slow gnificantly in the near term and growth prospects could be weak. we know that. they're saying the uk's public debt ratio is to stagnant close to current levels around 9% of gdp. we do have inflation numbers in around ten minutes. it's going to be an indication and guide. if you have any questions on any of the things we talked about so far on the show, the address as

now we're going to take a quick break, but coming up on the show, soft bank shares slump after it agrees to buy the uk's arm. we get the low down on the biggest overseas takeover after the break. we're back in two, stay wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean, separate, cook, and chill. the roadchip to food safety starts at foodsafety.gov.

welcome back to "street signs." soft bank shares slump by 10% in the first day of trade following yesterday's purchase of arm holdings. the billion dollar deal is the group's largest ever take over, but piles more debt on the already heavily indebted company. chairman explains why he didn't think the post-brexit drop in

sterling helped achieve in the overall acquisition price. >> in the case of our post-brexit arm share price increased by 15% roughly. okay. 15, right. roughly 15%. so we regardless of the currency exchange that started getting cheaper did not actually affect the value of arm. so the currency helped, the share price went up. no net-net. our price in u.s. dollar comp was actually flat. to brexit that did not affect. as to buy cheaper or expensive. it was actually flat. okay. so we did not use this brexit as the opportunistic reason to decide to invest.

opportunity opportunityic joins us now with all the details. >> yes, like he said, soft bank paid over $31 billion for the designer arm holdings and it is the biggest acquisition over overseas business by a japanese country. around 70% of the payment came from soft bank's pocket and the rest was financed by the bank. hefty price tag a 43% premium to the closing share price on friday and soft bank had interest bearing debt of $112 billion at the end of march. so concern that the firm will be weighs down even further led to heavy selling and soft bank shares plunge more than 10% in tokyo today the first day of trading after the announcement. now soft bank's core business is providing mobile phone businesses in the japan and the u.s., but ceo has been

aggressive aggressively investing the start ups. so by acquiring arm it hopes to gain a foothold in the market of things linking it to its mobile phone and artificial intelligence. ceo song has said this deal is the most important big bet for the future. he has pledged to keep arm's headquarters in the uk as well as to double the number of employees in the next five years. to convince investors of his bet, song and soft bank will need to show a clear picture of how it will gain from the deal. let's move on. russian authorities have helped ma nip plate samples to avoid being caught doping. the russian sports ministry controlled and oversaw the removal of positive urine samples from late 2011. with just three weeks to go to

the olympic games in rio. the international company will decide on sanctions or measures as a result of the report. we're going to take another break here, but check out world markets live, our blog which runs throughout european trading day. stay with us, plenty more to come on the show.

welcome back to "street signs." i'm jewel la chattily and these are your head signs.

the u.s. should not harbor a terrorist says the turkish president, demanding the extradition of fethullah gulen. this as the deputy prime minster reveals to cnbc just how close the coup came to success. >> it's very a close call for everyone to be honest with you because this was rather unusual in the sense that they were so crazy that they could actually airborne literally by f-16 war aircrafts. erickson miss operating forecast, but sends shares higher. i'll be speaking to the ericson ceo hans vestberg in just a few moments time. meanwhile the republicans take aim at wall street, but the first day of the convention, melania steels the show with her opening speech.

>> if you want someone to fight for you and your country, i can assure you he's the guy. >> we've got some inflation out of uk this morning. we ha it was forecast to come in at 0.2%, but just.4% on the year. if you're looking at that year on year number, a touch higher than expected. bank of england going forward taing about cutting rates. there was always this concern of course that a lower sterling at some point was going to feed into this inflation numbers and you wouldn't expect that to have already happened yet. this is just the june numbers. the vote was on the back end of that. already seeing some type side pressure higher than expected for these june cpi numbers.

just so again, just higher than the expected number of 1.3%. let's take a look at u.s. futures as well. obviously several hours before the market hopes, but just tilting to the dune side in light of the weakness we're seeing in the european market in morning. yet more record for the dow and s&p 500. another 2016 high for the nasdaq. i should point out, low volumes yesterday if i give you the numbers. just 3 billion shares versus 3.8 billion average. tilting to the downside again. basic resources is the key here. all sectors in the red.

ericson shares cost. the mobile equipment maker reported a 24% decline in second quarter net profit and said demand continues to fall. joining us now from stockholm is hans vestberg. is your latest announcement on the cost cutting drive enough to silence your critics? >> no. i think that we have seen since the end of the last year and the beginning of the first quarter and they get a trend especially when it comes to mobile and broad investment and certain markets outside the macro economic impact for quite a long time and instability in the currency. what we see right now is that we'll prevail for at least the rest of year so we are adding quite substantial cost

reductions both in order to downsize corporate debt, part of the business, but also reducing and improving poftability. so this is an ongoing process. we had planned at the beginning of 2016. we saw in the second quarter that sl impacting or p and l positively. we're adding substantial cost reduction for the next four quarter. >> steve: -- >> when are we going to see the profitability? you signed some partnerships, but when are investors going to see an improvement in the underlying business? >> the underlying cost especially opec is on the way down. second half of 2016. has always been a target. here we bale doubsically double opec. it's going to happen gradually as we're doing right now already

in this quarter almost 4,000 employees left erickson. the last eight quarters more than 30,000 has also left. we are on a transformation both in a core business, but in the business we're creating right now. we have very good traction. >> so for some shareholders they're saying that time horizontal isn't quick enough and there are analyst out there saying you need to strip out some of the underperforming businesses, whether it's the optical transport, the ip rooting division, is that an option? are you willing to do that? >> i think what we announced today with are doing options in the portfolio. last year we announced a partnership with sis co-. we're reducing the spendsing level. we have that partnership. definitely we're taking those positions, but to also want to see we're relevant in the market and that's more of course, but also the services which is billing system and cloud system

that we have a good traction on and that was going with 5% in the quarter. ov overall we were down. i think it's about cutting cost in order for us to continue to invest for our strategy and improving profit lkt. that's where we are with the company. also serving the customers in a much better way as they are designed as well. >> it's not just a problem with the business that we're talking about here. in the swedish media, in particular, regularities with booking receipts before the invoice haves been sent. i know you addressed the irregulari irregularities. can you say why you think these accusations were made. >>ky not speculate in that. the only think that have been very clear is we have a process that is extremely prudent, very robust, we are following all the

laws and rules, of course, and we are reviewing it. we have already been very clear there's no irregularities at all. we are following all the rules and very prudent. >> there's also now concerns about potential fraud in the u.s. and greece as well. i'm sure it's very difficult for you to say anything on those. by do you feel like your position as a ceo is under threat as a result of these various different issues? >> i think that's first of all in general we are zero tolerance for corruption. we worked very hard with that for many, many years. we are of course following. if we find anything whacked on it. of course there are a case from greece from the late 90s. so of course we have also communicated about other discussions that are ongoing. it's a large company, 180

companies. i said we're very clear. if somebody is not acting and following that, we're taking action. >> hans, you've obviously faced a great deal of personal criticism over the performance of the business and the ability to turn this business around. do you still feel like you're the right man to lead ierickson forward here. >> i think when you're doing so many changes was err doi s as w right now. some areas are coming down, some are growing. i think my main focus and the leadership team around me takes point on that and improve the company is our main focus. >> thank you so much for taking our questions. hans vestberg the ceo at erickson. melania trump stole the head light with her first speech. she praised husband donald with

a key message, quote, he won't let you down. appearing to mileaplagiarize re by mitchel o bomb back in 2008. >> barrack and i were raised with so many of the same values, like you work hard for what you want in life. that your word is your bond that you do what you say you're going to do. that you treat people dignity and respect. >> from my young age, my parents impressed on me the values that you work hard for what you want in life. that your word is your bond and you do what you say and you keep your promise. that you treat people with respect. >> because we want our children and all children in this nation to know that the only limit to the height of your achievements is the reach of your dream and

your willingness to work hard for them. >> because we want our children in this nation to know that the only limit to your achievements is the strength of your dreams and your willingness to work for them. >> find melania quite mez minorizing. nbc joins us from the national republican convention in cleveland. what do you make of that? is there fair criticism there or was she being unfairly targeted. >> well, there's no question they are very similar. it's quite striking how similar that section of her speech d-- not the entire speech, but that section of her speech to what michelle obama said back in 2008. we don't know how that happened. melania trump has said she wrote the speech herself. she told nbc yesterday hours beforehand that she wrote the speech with very little help. then afterwards in a statement the trump campaign has now said

that there was a team of writers who talked with her and took her experiences and put them into the speech. so was it melania trump, was it this team of writers, who was aware of these similarities, were they aware of these similarities. was it some very unusual coincidence? all of those questions are going to be asked today, but no question about it. you just showed the video. those sections of her speech where he talks about -- one of the key points in her passengme was about the background of herself and working hard and making a better future for her children. those sections were similar to what we heard in 2008. >> originally she said she wrote the speech herself then the team of writers they they were involved. just how damaging do you think this is for trump's campaign. >> yes, so the question now becomes how damaging it is may be determined by how they handle

it. they put out a statement, but that statement doesn't directly aaddress the similarities of the speeches. we pressed on that today. how they handle it will determine how damaging it is. the public is very forgiving. hillary clinton has been dogged by this e-mail scandal almost the entire campaign. the poll shows people think she did something wrong, but the majority aren't bothered by it in terms of voting for her. is this going to blow over? part of that is going to be be determined how the trump campaign responds to this. coming up on the show, boris is on a mission. find out how the secretary got on after talking brexit in brussels. stay with us. we're back in a couple of minutes.

positive and productive. that's the summary from the uk secretary boris johnson after a series of one-on-one meetings with his counter parts over brexit. prime minster theresa may will continue those talks in berl and paris later this week. johnson's counter- part said the focus should not be on when they will leave, but the details of the departure. >> i just said in an interview that we have several examples in

europe of decision taking to leave and then new decisions that through the referendum or through parliamentary decision have convicted this, but i don't think this will be the case in uk. prime minster may said from it will very first moment that brexit is brexit. and this is what boris johnson preferred. we are not discussing if, we are discussing when. it's very important to have clarity on the decision has to be taken from the uk government, but we need clarity and have this communication and timing of this decision as soon as po possible so to organize this process in the most possible

order way. then, the debate will be on how. and it will be long and not easy story. >> turning attention to his home country, he sounded a positive note on the upcoming italian referendum. >> there is always a certain amount of risk in politics, but in this case, i think that we will win the referendum and victory of the referendum will be a new step in what we are trying to do. we are coming -- we are having in the past a very difficult years, italy. our economy for the functioning of our institutions. we are gladly going out of

difficulties, but we need on the institution lal level toll have reforms. this is the issue of the referendum. and i'm confident that we will win. >> with bond yields at historic lows, that's according to 5% of german debt is trading below the dp deposit rate. and is therefore ineligible. address bond this thursday by tweaking some of the rules. joining us now is james at ab aberdeen investment management. >> will they or won't they. >> it's a good question. it's a finely balanced decision actually and the backup we have seen in bond yields does make it slightly less of a margin that they engage in the technical programs to the market. with respect to easing of this stage, that doesn't feel like

it's necessary if you look at financial commissions and economic data. >> do you think it's that important though inching higher that we've seen in european bond yields and u.s. bond yields as well in the last few days? last week it was interesting for the first time in a long while to see markets rally and bonds not rally. >> i agree. rally has been the main feature of the post referendum environment. is the backup in bond yield important. it's difficult to say. with the changes, the temporary changes they make to the program anyway with the loading before the summer, what we've seen is a bit of drifting away from key earnings anyway. that suggests there's sufficient flexibility in the program that they can cope in the short-term with that bond scarsty. it is specifically a bond issue for now. >> i've been at these meetings for the last several months and he was asked, draghi, last month

and pushed back and said we don't have a problem. so to go from one month to the next and to decide we do have a problem. >> inni think that's an issue f global banks. interestingly with peter the economist a few weeks ago when he was asked specifically about the issue of capital key, suggested to me they're probably not ready to announce something right here right now, but certainly discussions ongoing. >> what about the uk? the bank of england didn't choose to hike in last week's meeting. still this expectation hope they'll go in august. henz lee tweeted me saying what's the benchmark level of the bank of england that gives them england and i know you're smiling because i was making

this point this morning. it's important, but when does it come really important. >> to say there's a benchmark level, history would say that's very difficult. >> you've got the kicker of the currency weakness now doing a lot of the easing work for them. >> that's absolutely true. i never thought it was a policy they would ease policy in the eve of a brexit vote. certainly the mandate is clear and gives them optionality in both ways. they're supposed to target inflation over sort of rolling and policy horizontal period. that's two to three years. if they belief there's a material demand shock which is going to play out reduced over a medium term, a short term spike because of currency moves certainly should be looked through. actually that's what all central banks should be doing. >> you get the cut. >> i think it would be remissive not to given carney's communication. >> of he's backed himself into a

corner. >> absolutely. >> okay. what's the trade, very quickly. is there a trade. >> with respect to the bank of england? >> no, just generally. >> yes. >> the story for bonds is still pretty compelling. despite the fact yields are extremely low, there's plenty of support for bond prices. >> great to talk with you. all right. let's move on the european commission has recently expanded its anti-trust case against google. the investigation into the firm's online tidsing and shopping kparson markets. the eu competition commissioner spoke on that investigation. >> what we have done just last week is strengthening our case because we have now more evidence. we have reinforced our line of thinking in order to make sure that one, of course, google have

full right of defense, but second we produce the strongest possible case when it comes to proving what we find adds wrongdoing at least as we see it now. >> and google here to all of us says our invasions and products have increased choice for products and consumers in europe. >> of course because i think some of us can remember how it was to get on the internet before a lot of the google invasions. it was a completely different world. everyone should congratulate google on being a magnificent company, but i think congratulations should stop if you find there is an abuse or misuse of dominant position to prevent others from inventing new things that might be the next new thing to be strong competitors to google. >> when do you envision

gathering the evidence and this is what we are going to accuse you of and this is going to be the fine. >> now google will have the tubt to answer, defend themselves. they have eight weeks to do that. then we will sort of sum up and we make this a very high priority because while we are speaking, of course, some companies feel the conduct of google and feel that they need a conclusion of the case. it may take some time, but we treat it as absolute high priority. >> will this all by tied together now. very separate charges: different issues. i think they want one form of clarity. there are other accusations which you made regarding the scraping of news content and images as well. can you give the company clarity that once these current charges are looked at and they've responded, that will be it.

>> well, i think it's hard to say if this will end with one case or the second or the third because what we see is quite common pattern between them. quite different google cases they seem to pursue a strategy of remaining dominance. also when we all go mobile in our search patterns leave the desk and go mobile, all the sort of new behavior when we have the smartphone, tablet, et cetera, et cetera, so the cases may be different, but the main sort of pattern or aim seems to be is same. sloo at least as we see it now. it is important for us to start closing case. not just opening cases. what we want is the a change in behavior. we want an open market. we want other companies to be able to compete with google. we want other companies to be able to present their products to us as potential customers.

>> expected to hold a press conference on that case at 12::0 cet today. >> speaking to me earlier, hans vestberg wouldn't be drawn on the prospect of disposals said he is still the man to lead the business. listen to what he had so say about the company's earnings. >> we have seen the loss of the first year and first quarter and especially when it comes to mobile investment outside the macro economic impact frl quite a long time or instability in the currency. what we see right now is that will prevail for at least the rest of the year. so we are adding quite substantial cost reductions. both in order to downsize debt. part of the business, but also reducing and improving poftability.

this is an ongoing process that we have. we have already the course plan that started at the beginning of 2015. we saw in the second quarter -- [owl hoots] announcer: if you don't fix them, sparks from dragging tow chains can cause a wildfire. and that could be scary. bye, smokey! only you can prevent wildfires. >> rich: >> reporter: >> reporter:. bris broris bros erasmo ramirez

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good morning: under pressure, netflix shares getting crushed right now. weaker than suspected subscriber growth. other big movers coming up. the road to the white house, melania trump pitches her husband to the gop convention, this morning she finds herself amid controversy, we'll tell you why straight ahead. plus are the ham tons hurting. some of the priciest homes falling. "world wide exchange" beginning right now. >> good morning and