sending shares in the tell con equipment maker higher in stockholm. >> taking off as the irish airline hits record profits despite brexit uncertainty. >> yahoo rise in german -- announcing the $5 billion deal for the internet company. good morning everybody. welcome to street signs. >> good morning, welcome back. >> thank you very much. >> nice to be back.

>> just hitting the wires. the germany for business climate index, 108.3 in july versus the consensus forecast out there by reuters of 107.5. we're looking at a stronger showing for the business climate index itself. when looking at the current conditions index, 114.7 in july. that's also slightly higher than expected the anticipated level was more around 114. they're saying that the june current conditions index has been revised to 114.6. the etho heads, talking about the brexit of the refrn dupage and that the german economy proved itself resilient. that's what they're saying. >> stock controversy with the survey last week which was at four-year lows. makes sense that some of the central bankers like to wait for the data to come through.

resilient for the german economy for now. let's take april look at the european markets. feels like a summer start. we're inching higher. you can see the xehra dax. we're going to be talking about it later. maintaining earnings forecast for this year despite the downgrades from the likes of lufthansa and the -- as well the banks and the basic -- one of the key drivers in this morning's session. let's bring in top news stories. the ceo of ericsson von hets berg stepped down. the swedish tell con equipment maker is looking for a new ceo. saying the time is right for a new leader. that's due to a slump in profits and fall in competition in the sector. they reportedly called for his

replacement. speaking to me last week, he said he was the best man for the job. >> when you're reducing costs and putting a new structure in place, you have a market which some areas are coming down, some areas are growing, et cetera, i think my main focus and the leadership team around me -- and to improve the performance of the company. that's our main focus. >> ericsson shared the performance this morning higher by, what, just over 4.5%. if we have a look among -- can you give a performance on the rise in -- if we can pull that up. i'll give you a decline that we've seen down 29% over the last 12 months. there's a few challenges. so the sector whether it's competition, the nokia, obviously going to produce greater competition for them, that neutrality. investment in europe, what we

saw last week was seven straight quarterly consecutive declines in sales. they were late to the party as far as restructuring is concerned. they announce thad back in april. they said they were going to cut the costs. they broke down the business into five separate areas to focus on that. the restructuring costs, that's impacted their margins. we've seen a number of shareholders come out and say time for a change here. >> he has been running the company for quite a while, it has to be said. >> also, it's always an issue of like when do the companies upgrade with the big networks. the next generation of the network upgrades happening. >> he signed the two partnership agreements with cisco. they are looking at separate avenues and there is hope there. but i think the point was just that they didn't cut costs enough. there are shareholders saying they need to strip out certain aspects of the business, whether the optical transport, the i.t.

division. i asked him that, he avoided the question. clearly, a few days later the decision is made. ceo stepping down, cfo taking over for now. he's not got plans to run it. the search will continue. >> no. it will. it will. >> something else ought to continue, the italian banking saga will rumble on. shares in bank -- suspended this morning after falling 5.5% in early trades. you have now the country's finest minister saying there's no banking problem in italy amid speculation that the government will announce a plan to support some of the weaker players in the sector that have been weighed down by nonperforming loans. speaking at the g-20 summit in shang due, he sought to play down the -- the stress test results are due on this friday. >> the banks do not need rescue, there is no banking problem in italy, there is one particular

case whisk dealt with, with market solutions and i'm confident this will be successful. >> what gives you that confidence? >> the bank in question has put in place a very effective restructuring plan. its management is being attaining recently very good results. >> why do you think investors outside have been so concerned about the banking sector? >> i think there's been a widespread misperception. this misperception was heightened by the outcome of the brexit results, which have generated volatility in financial markets, especially in banking sectors throughout europe. so it's not just an italian story. it's a european story. i think that this is going to recover, financial markets are recovering and they have absorbed quite well the short term impact of brexit. this, of course, was within a

legacy of a recession as i said, as far as the italian economy and others are concerned. >> how vulnerable are italy's banks now because of the brexit uncertain sni. >> they're not more vulnerable. they've been strengthening over time. the larger cooperative banks have turned into joint stock companies. they have completed a number of successful capital increased operations. merger operations. so if i would encourage observers to look at italian banking system as a system that's strengthening and not weakening. as i said, in all cases and all countries, in many countries, there are individual cases which require particular attention. but as i said, markets are dealing with it. >> the eu is going to be releasing the results of the bank stress test later this week. what are you expecting it to reveal? >> i'm expecting to reveal that the italian banks will fare on

average or better -- >> you don't think there will be major concern when the results are revealed? >> well, as i said, i encourage observers to look at the evolution of the italian banking sis temg over the recent past, where it is coming from and where it is going. there's clear signs of improvement apart from some specific cases. so there is no, no systemic issue with the italian banks. >> expected the governor of the bank of italy and asked him what type of agreement he was hoping for with the banking sector. >> they are looking for in the commission, the government and european commission is not the central bank, not the -- they are considering ways, if needed, to intervene with capital in the banks. if needed.

most likely it will not be needed. >> the eu is going to be releasing its results of the bank stress test later this week. what do you expect it to say? >> i don't expect it's going to be seen as a systemic problem. you may find some problems for some banks. for those banks, there will be solutions needed and i'm sure that with the -- solutions will also be found. at the same time, we have to understand that this first test, a cooler kind of test, which a test which we call them working with the -- that is, they don't allow for reactions on the part of banks once a problem has come out. therefore, they're very -- >> as mentioned, the bank is down just under 7% today. the hope is that they can get a private sector solution, private cash to buy into the

nonperforming loans and they have 50 billion euros of them. they can start to create a market for the entire sector. we shall see. now, nico owe international cio at morgan asset management is here. good monday morning. if we get a deal, some kind of solution here or an attempt at a stress test, do you think we do before the stress test. >> let's see. we get the stress test friday. so they'll be what they are. think of this as an evolutionary process. when you look back, the whole saga of italian banks is actually nothing new. it's been rumbling on since the start of this year. the key when you look at it and the keyway to deal with things like mpls is growth. ultimately that's what we have to see a lot more of. ultimately, that will help the banking system there. >> where are we going to get the growth from, nick?

did you hear anything from the g-20? i seem to sense after a fiscal shift, the policy we've been talking about the limitations for a long time, do you feel or see a change in the approach needed? >> definitely. there's no doubt about it. when you look at policy, elements of monetary policy are starting to be pushing on straight. there's a limit to how low negative interest rates can go precisely because of the damage it does to the banking system. you're absolutely right. when we look forward, it's the fiscal side that's likely to take -- we could start to see that this week with japan. >> you're a fixed income guy. you talk about this goldilocks scenario that you sigh we're in. what would derail a goldilocks scenario? >> fiscal. let's think about the big risk factor there. it's if we get some kind of gigantic, epic big global coordinated fiscal easing.

again, go back to the g-20. the likelihood of that, let's face it. it could be remote. it will be probably be country specific. likely to see it in japan. >> in a sense, probably low. you'll see more on the monetary side, the bank of japan this week is likely they do something like minus 20 basis points in terms of a rate cut. and in the fiscal side, at again, going to be more evolutionary. we're already seeing fiscal slippage in virtually every country. you need both of those things to support growth. >> we continue to see them driven lower and lower and lower. is there any reason for me to be investing in your area of the market. if i'm looking for yield or opportunities and also if i'm looking for a market that is pricing in now at rates heading

higher, slowly, but surely. i mean, by the end of the year. markets now pressing in at a 40% chance. >> just because something has a low yield doesn't mean it can't go low. it's a clear direction of fixed income deals, we think it's dramatically lower from here. so one case in point, take a ten-year u.s. treasury in and around 150, that is a steal. that's cheap. 85% of all government bonds yield less than that globally. the other area is not all bonds are equal. the standout bond is still european high yield. when you look at european high yield yield, they're a percent wider than the recent lows. so they yield around 4.25%. no reason those bonds couldn't yield more. in the last week and a half, while equity markets are rallying, we started to see a

slight tick-up in bond yields. i saw a hole host of articles written about whether -- this is perhaps the moment where yields actually do tick higher. he buys that. you clearly don't. >> part of that is the idea of fiscal stimulus on the horizon. >> you're talking about japan, the uk abandoning hope of balanced budget target. you've got a number of the europeans not meeting their deficit targets and going to push it as well. there's a whole host of countries around the world that are actually pushing for fiscal policies rather than monetary or in addition to monetary. >> it's pretty i had ydiosyncri. let's think about germany. very committed to a balanced budget. if we look to the u.s. over the atlantic, again with an election coming up there, it's unlikely there's big movement on that before the end of the year. >> going to be fiso owe no

matter who wins. >> again, these are countries that can do that and maybe the right to do it when you look at levels of gdp growth. historically pretty weak. actually that, would support credit quality. >> nick, you're staying with us. so by all means, get involved. i see many of you have. i'll get to those e-mails in a second. before that, let me tell you about flashes we're getting through. talking about ericsson, how the ceo is stepping down. ericsson's chairman saying they anticipate the new search for a ceo to take many months. quote-unquote. it's not been spoken about. >> the message was an immediate effect with that. they need guidance and he'll be part of the business. >> definitely. >> that's the press conference they're giving. i guess there will be more lines and we'll bring you up to date with that. >> get involved. get your questions and your e-mails through to the show. the address is street signs zero at cnbc.com. i'll float it for you on the screen for those who can't

remember like me. >> you can follow us on twitter, good morning tim, norman, david, jeff, the rest of you. good to have you with us at street signs cnbc. you can tweet us individually also. >> soaring to new heights, on course for record profits. but post brexit ride ahead. we'll bring you more after the break. back in two.

welcome back to street signs. let's go wrap up what happened in the asia market session. we're in singapore with the latest. >> good morning, jewels. not a great deal of conviction. we're marking time, in a holding pattern because of all this multitude of risk from u.s. earnings season, the european

banking stress test, the results of those around your way and also those reviews from the bank of japan which i think will be the most important one this week for our markets. japanese equities and the yen as well. ex peck tapings seem to be all over the place. there is a nonnegligible risk that the bank of japan could very well sit on their hands. if that does happen, that will trash japanese equities and have yen appreciation after that. trying to cope with the uncertainty from a policy perspective, we're flat at 16,620. let me stress again. not a great deal of conviction in the markets until we get clarity over where the fed stands, over what its stance is with global uncertainties and moving in the right direction and the bank of japan as well. it's arguably anyone's guess. that's where we stand. back to you. >> thank you very much. now, ryan air remains on

track to deliver record profits after a 4% rise in first quarter earnings, despite concerns around terrorism and the fallout from brexit. the budget carrier is saying it's set to quote, pivot growth away from uk airports over the next two years, though, as it focuses more on growing its eu hubs. airlines analyst, andrew is here with us this morning. on one hand, we're hearing a positive note from ryanair. on the other hand, they're saying they'll have less to do with the uk as they've said in the past. >> i think it's very clear that it's a tough times for airlines at the moment. in part, as you mentioned, it is to do with brexit and as a consequence of that, weaker confidence for uk consumers. but you also shouldn't underestimate the impact that we're going on anyway off rising capacity in the airline industry

putting fares under pressure and then separate to that is the continuing wave of security-related incidents which are dampening people's demand to travel. that's putting pressure on yields as well. so ryanair, they're still growing their profits and they have not lowered their earnings guidance at this time. but these are very tough times for airlines. there's certainly a cautionary note in the communication from ryan air today. >> you tend to be cautious. how does ryanair sit like rivals, like the easy jets. >> relative to easy jet, ryan air has roughly speaking half the exposure that they do to the uk. it's still substantial, but it's about half what easy jet has. it's slightly less in the eye of the storm. then the other advantage that

ryanair has to easy jet, to be honest, is they set out guiding for lower revenues for the year, being pretty cautious. whereas easy jet, at their hub here is confident about -- they've clearly set themselves up to fall. it is tough for everyone in airline land. >> he said they completed 75% of their bookings for the second quarter, which is significantly higher than easy jet was telling you. there are underlying strengths. i wonder whether you believe them. they did deserve the right to update their earnings or lower their earnings as the impact of brexit and the security attacks filter through. do you still think they'll stick to it for the rest of the year? >> well, no. i mean, clearly, ryan -- they've only got 25% less in the tore i had markets for the september quarter. remember, for that financial year, they've got the winter to sell as well. you know, to give them credit as

well, the repositioning of ryanair, their always getting better program gives them uplift to the performance. however, do we believe their earnings? you only have to listen to the pre-recorded interviews from ryanair. they say there's very significant downside risk to their earnings because of the uncertainty about yield. when asked, they say no. you know, there remains a material chance that they will have to profit in due course. >> you quite rightly said a lot of the airlines are talking about brexit and the security concerns. you said there are deeper issues afoot here. if we look at the sector, sounds like almost 35% in the year to date. do you think it's still too early to buy into the stocks? is there any value? >> i think the opportunity to

buy airlines is always at the top of the cycle when there's despair out there. when you look at -- with about 20 buys, a handful of sells, this is not contrarian buying. you can argue the same for iag as well. we think it's too early to pick up value in airlines. >> andrew, thank you so much. we're waiting for despair. how depressing. >> despair. >> i know. asset management, notched up a second -- to just over 300 billion pounds. this on the back of asset appreciation and tail ends despite net investor outflows. they warned that market confidence could suffer going forward from the many uncertainties facing the world.

>> they withdrew over 1 billion euros from the fund houses where significant uk operations in the wake of the brexit vote. data shows fidelity, m and g and invesco and shah roaders were among those. >> it's based in europe and they experienced the largest redemption since september of 2011. first deputy managing director of the eye mack david lipton told us what to look out for as brexit unfolds. >> the big question going forward is how brexit will be addressed when the uk begins negotiating with the european union about what the new rules are going to be. and what's most important is that there's an amicable approach. that they approach this with a sense of mutual gain and find a way to agree on rules without creating a period of unnecessary

uncertainty. there is the risk and the likelihood that the uncertainty that exists is going to lead people to postpone spending, to postpone investment until they know what -- whether they'll be an amicable and cooperative approach, until they get an idea of what the new rules are likely to be. it's best that that process proceed well. >> are we done with brexit for now? has it become a localized problem? or when we get article 50, if indeed we do, does that send risk into a tailspin once again? >> i think a couple of things. the first thing is we don't know what brexit means. i mean, brexit can mean a plethora of different outcomes. that needs to be decided. i think when you take a step back, though, it's very clear economists were slowly pre-brexit. think what central banks have been doing all year. they've been easing policy. they've been easing policy for a reason. because growth is slowing.

the clip on airlines is fascinating. it's always a lead indicator on what's going on with consumers and economic behavior. we can get caught up in brexit. in reality, it's a bits of a smoke screen that's hiding on the economic weakness before that. the key is what on earth brexit means. >> in continued switch into u.s. assets though, is that going to be sustainable? >> oh, very much so. when you look at that, you've got that biggest, the deepest, the most liquid fixed income markets in the entire world, u.s. dollar-based ones. whether it's treasury. if you look at corporate bonds, they're big markets and they offer one thing that europe doesn't. which is yield. >> thank god we've got the meeting this week and talk about the possibilities of rate hikes. >> nick, great to talk to you. the cio from -- >> we're heading into a short break. check out our blog though.

world markets live. lots of good stuff on there. we'll be back in just a moment. [child speaking indistinctly] announcer: are your children in the right car seat for their age and size? it may be too late to check when you're on the road. [blaring car horn and skidding] fortunately, you're on the couch.

welcome to street signs. i'm julia chatterley. i'm louisa boresly. the european markets, ahead of the -- the german economy proving resilient. >> the time is right for a new leader. ericsson starts the search for a new ceo as he steps down. ryan air takes off as the irish airline confirms it should still hit record profits this year despite brexit uncertainty. >> shares in yahoo rising in german trade on reports of verizon set to announce a $5 billion deal for the internet

company. welcome back everybody. european markets this morning. a little bit higher. we saw a positive close to the week last week on friday. the u.s. markets again -- >> felt like a tentative start to the market this morning. we are making gains of what, more than 1% for the german markets. by .8 of 1%. the leisure sectors -- the basic resources as well. we saw the 4% losses yesterday. i'm showing the u.s. market features now tilted to the topside. fourth straight week of gains for the u.s. majors last week. minor gain for the s&p 500. up .6 of 1% on the week. yet, another record close. i was just mention the european markets. as you can see, i can give you a quick look at the sectors

individually as well if you want to. see exactly what's driving the individual markets. as i mentioned, it's like the basic resources, the ledger in tourism. all sectors in the green. lou? >> julia, thank you. the ecb will announce the results of stress tests for the bloc's major banks. not going to be a pass or fail like in 2014, the tests back then. they are an overall assessment of the health of the banks. italy's lenders are expected to show capital shortfalls. at the meeting that took place, they asked the eu's economic commissioner when he expected a rescue plan for the banks of italy. >> i think that we're hearing, we're hearing messages as well as the situation itself, the will of the italian -- and the capacity that we all have to address the situation. i don't know when we'll have

some decisions but we're really working on it. i think we'll have a positive outcome. >> where do you think the compromises will be? >> it's a work in progress. >> what do you think the consequences will be if there is -- >> i'm sure you will find solutions in full respect of -- >> in your mind, which is a bigger risk to growth, troubles of italy's banking sector or brexit? >> i think we're going to address the issues of the banking sector. i'm confident that it is much more solid, better regulated and that with the means to address any kind of problem that could happen. so we're really handling the situation and correctly in a cooperative spirit. >> how serious a threat do you think brexit is to the vision of a unified europe? >> the first one is about how to succeed in the negotiation for the brexit and to build a very

positive relationship with great britain. great britain won't be some years from now a member of eu, but it will be a part of the european country. second challenge, we need to say what the member states which will remain inside the eu have to do together and certainly that means to build new projects for security, for defense, for investment and the financing of investment. we need to sustain and pro tengt our people. the third challenge is for the 19 countries who share the euro and personally convinced that we need to reinforce the eurozone, the core for the future integration of europe and we need to have a stronger economy policy and a governance -- we've got a lot of work to do. again, we must not waste time

and we must be ambitious. this is why there will be on the 16th of september an important meeting under the slovakian presidency, which i think is crucial if we want to rethink the future of europe with great britain for a while without the uk in the future. >> an interesting report in the guardian that talked about giving the uk an exemption for seven years on the freedom of movement of people while still giving them access to the single market. if they did that, that would help the brexit ers. >> we're already compromising. >> one heck of a compromise. >> for those that voted to remain, another shot in the foot basically on that one. that could be really interesting.

wait and see. i'd be surprised. >> expect the bank of japan to ease further this week. governor kuroda down played expectations ruling out helicopter -- the global head at the head of research joins us now. great to have you on the show. i don't believe he's going to do helicopter money. but i do remember kuroda saying he wasn't going in negative rates and three days later put rates in negative territory. >> sure. i think there is a big difference now between even further -- and helicopter money. we're talking about a fundamental shift in the sense that with helicopter money, you get a permanent change in the monetary base which can have a lot of unintended consequences. i think expectations are built

up. >> even without helicopter money -- >> i'm not sure how the market and why the market received such high chances for helicopter money. i think it all started with a fiscal stimulus. >> do you think that's in some part baked into the cake here in the market? helicopter money? >> it's pretty much gone along, they will do something. i'm not entirely sure that the market knows the basic difference or segments of the markets between that. i think it's going to be a very close call if these guys pull the trigger, if they do anything or extend -- easing a bit further. if they do, i think it will largely, because they want to push back and avoid the large very sharp appreciation, not because they will be fundamentally this will have a significant impact on the economy. >> why haven't we seen more reaction in the yen. >> in terms of --

>> the latest comments -- >> that's absolutely true. you have to take where our starting point is. dollar yen is by far the most depreciating currency so far out of the majors, so far this year. meaning that yes, there's been a pullback and it hasn't reacted a lot. but from the trend base, it has moved a lot this year. >> do you think there will be more of a play on interest rate differentials or are we reaching a point where the central banks are not coordinated because they can't be, i mean they shouldn't be, that's kind of the rule, but yet they kind of are in terms of how they're acting. >> my sense is that there has been a shift of the past -- between 2013, 2015. there's been an obsession from major central banks. i think these has changed so far this year. in the sense that they have realize ds that they kants keep pushing their exchange rates lower. >> quickly, any language from

the feds here to the -- >> acknowledgment of better data. but they're not going to be very explicit about a rate hike. obviously, it's cautious, so they're going to wait and see. >> thank you very much. global head of fx strategy. now donald trump is saying that the u.s. could pull out of the world trade organization if the body interferes with his plans to penalize u.s. companies which moves production overseas. speaking to chuck todd on "meet the press" over the weekends, the american presidential candidate explains why he thinks they're not working. >> the trade deals are a disaster, chuck. world trade organization is a disaster. >> the concern is that it would rattle the world economy. look what brexit did to the world economy. >> what did it do? the stock market is higher than when it happened. by the way, i am the only one of all of the people at the higher

level of the world politics, i'm the only one that said brexit is going to happen. remember i was asked a question. i said yeah, i think they want independence. i don't think they want people pouring into their country. >> you're not worried about -- you think a fractured europe is good for america? >> no. but we're spending a lot of money on them. primarily they got together to beat the united states when it comes to making money. in other words, on trade. >> economic. >> now we talk about europe like so wonderful. i love europe, i have property in europe. i'm just saying, the reason that it got together was like a consortium so it could compete with the united states. >> all this stuff is good for america even if it's not goods for europe. >> you look at airbus, they make more planes than boeing. they got together, all of these countries got together so that they could beat the united states. we're in competition. so you know, we're in competition in one way, we're helping them in another way.

it is so messed up. >> it's so messed up. >> at the g-20 meeting -- [ inaudible ] protectionism could derail future trade deals. >> i'm always afraid that rising protectionism could derail trade liberalization because we believe strongly in trade liberalization because in a way we were set up to promote trade liberalization and not only trade liberalization but also investment flows liberalization. and because, since the crisis, we've had about 1,500 different measures which you could call protectionist. we're moving in exactly the opposite direction. >> now, the democratic national committee's chairwoman, debbie wasserman schultz has announced

she will resign follow this week's national convention. this comes after a series of e-mails were leaked showing party members planning to derail bernie sanders' campaign against hillary clinton. 20,000 dnc e-mails were published by wikileaks online on friday. tracie potts is at the democratic national convention in philadelphia. tracie? >> well, it's like deja vu, louisa. the convention is opening with dissension at the beginning. dw debbie wasserman schultz, the chair is stepping down. she'll gavel open today, close the convention. she'll gavel open every day and close the convention on thursday. her replacement has already been named. it's over the leaked documents. the key with that is the leaked documents, the e-mails seem to show that the staffers here at the dnc were favoring hillary clinton over bernie sanders mocking the sanders campaign and trying to come up with stories

to diminish the sanders' campaign whereas they are supposed to be independent. wasserman schultz is taking the hit for that. she's stepping down. meantime, we're also seeing demonstrations, much more than we saw in cleveland already thousands of people on a number of issues and many of them bernie sanders' supporters. not satisfied yet with their nominee. also some not satisfied with tim kaine as the vice presidential nominee. so this convention opens with quite a bit of controversy and dissension. tonight, we'll see if bernie sanders can calm it down. he's scheduled to speak tonight along with first lady michelle obama. she'll focus on clinton and her years of public service and we'll hear from elizabeth warren, another progressive like sanders. it's going to be largely tonight up to sanders and warren to try to pull this party together on the first night of this convention. >> it's going to be fascinating to watch.

>> i want to ask you about russia and the speculation that they had involvement in getting access to the party records and that they actually prefer trump because they want to influence this election campaign. >> right. that's something we're hearing from the clinton campaign. clinton staffer suggesting that russia hacked the records and released them. this isn't the first time we've heard them talk about that saying they want to influence this campaign, that they want to see donald trump win and so that they are releasing records that would be embarrassing to the democratic party and perhaps affect the vote. that's coming from the clinton campaign. no independent verification at all that that's happening. you can imagine, the republicans are pushing back saying no, it's not russia, it's the people inside the democratic party. >> yes. check your source. tracie, great to chat with you as always. let's move on. at least two people have been killed and 16 others injured

following a nightclub shooting in fort myers, florida. police are currently at the scene investigating. now, germany was also hit by a series of violent incidents over the weekend. 27-year-old died when he detonated a bomb outside a music festival in the german city of an spa. according to local officials, the man who set off the explosion was a syrian national who was denied asylum a year ago. killing a pregnant woman with a machete outside a fast food restaurant. the attacker is a 21-year-old syrian refugee. the assault has no apparent link to terrorism. two other people were injured in the attack. now, a german iranian teenager shot and killed nine people at a mall in munich on friday. local authorities said that he started to plan the attack a year ago after visiting the site of a shooting at a school in southeast germany.

officials found material in his home showing he was hospitalized for three months in psychiatric care and that he also played violent video games. right. let's take a break. coming up on the show, can facebook pose better than expected results. one year after his return, has jack dorsey managed to turn twitter around? we'll preview earnings straight after the break. stay with us.

suspended after dropping 18%. this is as the company admitted pokemon go will have a limited impact on earnings. shares in the gamer are still up 60% since the launch of the mobile app. technologies reported a 14% rise in sales revenues for the first half of the year. operating profits fell from 18 to 12% this year due to

increasing investment in smartphones. the chinese calico will maintain current momentum this year. verizon is set to announce a $5 billion deal to buy yahoo according to various media reports. they've agreed to pay $4.8 billion for the core internet business and some real estate ending a very long auction process that started back in february. the announcement is expected before the bell in new york. yahoo and verizon have declined to comment on the reports. let's also take a look ahead at what will be a big week for tech earnings. netflix earnings beating expectations last week. shares falling after the video streaming company report fd numbers well below what investors were hoping for. we'll be looking at twitter and apple to see if they can turn things around when they report tomorrow. facebook follows them on wednesday with alphabet, amazon and samsung finishing things up

on thursday. just march is ceo of converse social. good morning, josh. >> how are you doing? >> what's in the making for twitter? kicking off with one of the biggi biggies. >> what everyone will be looking for having made any impact the last quarter is a small uptick in the numbers, about 5 million. it's been kind of stable for a while. they've been trying new features and new things. no one really knows if this will make an impact or not. medium term, we're a close parter of twitter and we work with large business who have used a lot of money to interact with their customers. i'm bullish on the future of that and twitter investing heavily in functionality to help businesses engage and deliver customer service to consumers through twitter. a key strategic priority. i think long therm will will be really amazing ref enough

opportunities for twitter through all these channels. we don't know if it's impacting yet. >> like what? they have all these users like the social networking sites. how does it translate into more revenue? >> sure. i think there are two main strands when you look at what twitter are doing. one is the advertising business and one is the more, the -- direct business revenue through customer service. on the advertising things, they need to drive new users. the things they've been doing over the last quarter is investing heavily on this live contents. they've started live streaming nfl and news as well. and i think that potentially could make it a really interesting channel for live streaming information for consumers. >> fascinating the need to add users. they have hundreds much millions. facebook.com has 1.6 billion. i look at facebook versus twitter. twitter is less than 5%. it's having monetized the users.

more than 80% of the users have mobile advertisers. >> what i'm interested in, when you look at facebook, it's consumer heavy, invest personal contest. twitter is a nerve sensor for business, politics, news, customer service. one of the things that twitter is starting to do is invest in business applications. >> right. >> we work p companies like tess coe, google. who use twitter as a main channel to engage with customers. that's something twitter just started to monetize just on the edges. they're investing really heavily into that. the last earnings report, they started talking about customer service as a priority. designed for businesses. i think they could be a big opportunity for twitter to drive revenue from businesses in a nonadvertising way. >> communicating is a problem. it's got -- they've got more than a billion each, haven't they? >> yes. >> they've got the network there.

twitter, even with the services, how do you individually communicate when you're relying on -- >> if you look at the value of linkedin, the -- by microsoft, linkedin didn't have a crazy amount of users. the users they did have were influential and twitter actually has that. they haven't figured out how to drive that. [ overlapping talking ]. >> we have facebook tomorrow or on wednesday. alphabet, amazon, samsung. what stands out for you this week? >> obviously the big news over the last week with the -- hit a billion users, messenger and messaging platforms in general exploded the last couple of years. the four big messaging platforms that are growing faster. they've become a default way for businesses and consumers to interact with each other. we have a lot of businesses now doing live chat through

messenger to their customers. hyatt hotels are using messenger to chat. >> when are they going to start charging us? not that i want -- they have 2 billion -- >> they're charging a small amount to some customers. they pulled it off. they announced they're going to have business accounts. we've spoken to them. they're still figuring out the strategy. they take a very considered approach. they've grown like crazy all over the world. there are a lot of companies using whatsapp. >> when you look at facebook, they're starting, obviously monetized the core face of it as well. they've started to monetize messenger. whatsapp hasn't monetized at all. >> the financial services sector, from my experience, i have a lot of people conducting conversation to use whatsapp.

it's encrypted. there's security too. charge tlg, you could -- >> [ overlapping talking ]. >> you could charge. look at how much they pay for terminals. josh, great to chat with you. ceo of con ver social. now phillips second quarter earnings, on the back of a strong performance of health tech arm. the margins improved. the bottom line figures fell short of the four-year target and sales missed expectations. phillips was concerned about increased risk due to volatility in key markets. they've completed a merger created one of the largest food retailers. the combined group started trading today in amsterdam and brussels under the new ticker. let's look at the biggest movers. the ceo of -- the telecom

equipment maker has begun looking for a new ceo saying the time is right for a new leader. ryan air remains on track to deliver record profits this year after posting a 4% rise in first quarter earnings. this despite concerns around terrorism and the fallout from brexit. the budget carrier said that it's set to quote, pivot growth away from uk airports over the next two years as it focuses more on growing its eu hubs. asset management notched up a second quarter boost to just over 300 billion pounds. this on the back of asset depreciation and currency tail winds despite net investor outflows of 9 billion pounds. the british fund manager warned market confidence could suffer from the many uncertainties facing today's world. so we've got quite a bit of data out this week. mentioning a bit of it. today watch out for the dallas survey. state side.

the fed as you were saying as well. the meeting. >> japan. data in the uk as well. and the big tech that we just mentioned there. plenty of drivers for investors if they're here and not on holiday, of course. watch out for. >> august is usually the close away month. >> still holding in positive territory. the u.s. state side, the implied open very flat. very flat at this point in time. that's it for today's show. >> i'm louisa boil son. >> i'm julia chatterley. see you same time same place tomorrow.

good morning. developing story. verizon and yahoo about to announce a 5 billion deal. shares of nintendo plunging in japan and it's all because of pokemon. we'll explain coming right up. leadership in chaos. the chair of the democratic national convention ousted on the eve of the party's convention. a live report from the dnc in philadelphia. as well, a change begins right now. ♪ ♪ good morning, welcome to worldwide exchange. i'm wilfred frost