good morning, everybody. and welcome to "street signs." i'm louisa bojesen. >> and i'm julia chattily, these are your headlines. waving good buy to a deal with a broadcaster. germany second biggest lender seizes capital cushion and earnings shrink in the latest quarter. bp is warning that refining margin wills stay under pressure after hitting lowest level in six years.

profit out of sight for looks optical after the italian eye ware cuts outlook due to weak sales. >> good morning, everybody. and welcome. >> how are you. >> awake. >> always awake, no excuse. >> i haven't had my coffee yet. >> uh-huh. >> to come. still to come. >> you never need coffee. >> markets this morning, we're looking at them treading a little water. down a little lower. slightly mixed on the open yesterday, just saw some points coming out of the market heading into the very last bit of trade. wall street saw losses as well. moving on and showing you some of the main european equity markets here today. you'll see yourself we are flat to mainly a little bit lower. the ftse 100 hanging on to

slight gains out there. we have the fed meeting today and tomorrow. no change expected there. the bank of japan rounding everything on on friday. of course pretty decent moves in commodities when looking at some of the kmod tirs out there, you'll see crude and ie mex and brent falling below $43 per barrel. still worry about global glus being an issue out there. we're now the lowest since may. we'll be talking about commodities and oil with bp reporting softer profits larlt in the show. let's check in in markets in asia. >> good morning a lot of price action was in equities. off by 1.4% on the nikkei. so it's down to yen appreciation

once again. i think this really the action the currency market really reflects pessimism that it will bank of japan are really going to deliver and deliver big this week. it's not just monetary policy. i think as disappointment associatesed fiscal policy as well. could be in the region of an underwell ming 6 trillion yen. looking for 30 yen. disappointing on the fiscal front. disappointing on the monetary front. that's what the markets are bracing for. in the note yet, bank of japan will probably deliver a little bit of everything, but not the big baa zoo ka that some are hoping for so again we are priming ourselves for low expert testimoniations expectations.

miss it's 2020 gdp target of 600 trillion yep. dear, oh dear. just in time for the olympics. on that note accident back to you. >> an absolute novelty. the french company has pulled out of the share swap agreement to buy the entire unit. vivendi has offered new terms to buy the tv busy and a 15% stake in media itself. shares were suspended after falling to a five-month low. >> this to me was interesting back in prim it was scene as being a catalyst for broader consolidation in the media sector and allow of have i venndy to build this will power house to take on competition from the u.s. and the likes in the form of netflix. what's going to happen now? this is quite interesting because at the time, they said

this offer was superior to one that sky proposed and osks that's the big competition across europe. will sky now perhaps come back and say, hey, take a second look at our deal. we're showing you the performance of media, a real blow for them, down 12% t. speaks american said look talk is still ongoing and we hope to find common ground. the question is can media set do better elsewhere. >> when consolidation starts it tends to continue or when the indication of consolidation start. i was thinking back, they were such a con glom rent. massive power house. day couldn't pass without talking about have i venndy then times change. >> sector moves on. >> yes. >> speaking of things that move on, btofkom has ordered to separate open reach. legally separate company within the group.

if bt could not achieve this, they would consider ordering them to split into different companies. they've long ordered for a complete detachment of the two businesses in a bid to boost competition within the industry. >> france orange has confirmed co-operating profits of 9.5 billion euros. earnings were down on the year by heavy promotions in the domestic mobile markets. >> turning to the banks, they've seen their operating profit fall in the second quarter. a weakened capital buffer compared to its position at the end of march. the bank said valuation methodologies particularly relating to italian sompb debt and pension liabilities had hit the results. >> now head of equities at investment joins us now. andrew good morning.

largest companies in europe expecting to decline 9%. we're part way through earnings season. what do you make of what we're hearing rights now. >> the earning season is going to be pivotal here and in the u.s. the markets recovered a long way from the post-brexit slump. remember, everybody was very possess missic back then. so now we are going to have the delivery and i think that's where the market might end up being a little bit at some pointed. >> delivery from who? from earnings or central bank? we can't always rely on central bankers. >> yes, where he can. >> where he can, but is it actually any good for us in the long-term. i do think that's an important point is that we've had sentiment body by the pavlovian response to liquidity injected after brexit yet more stimulus. when the initial sugar you rurk of that excitement fades we're left with the reality that corporate profits around the world have been stagnating for a

while. as we dissent down the rabbit hole of negative rates, does it work? why do you think it is we haven't seen more reaction to brexit? yes we were pessimistic heading into the brexit scenario, but we weren't that pessimistic. we thought we would see all knee jerk reaction that would last longer. >> well, the ftse specifically, you have it will safety valve of the collapse and sterling. that's led to an upgrade in earnings nor the ftse. i think elsewhere, i think people were very pessimistic if you look at cash levels in mutual funds, particularly in the u.s. ironically investors in the u.s. have probably been more possess missic about equities than in europe and elsewhere. i think it's that record level

of cash. quite a low level of participation in equities and then the worst didn't happen. armageddon didn't come riding into town. >> you say you think we're going to be range bound for the remabder of 2016. do you think there come as time also where monetary policy doesn't cut it any longer. it doesn't work any longer. >> look at japan. m has it be cutting in japan who have been talking about doing zero per pert yule government bonds. we've overly reerelied on one policy tool. and i think that's beginning to be called into question. it's not just about the immediate impact, it's how you unwind ultimately from these negative rates. >> so what sustains the level of european equities at this moment. if i look at the data we've seen, 24 weeks --

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>> cheered by supporters angry he's not the nominee, bernie sanders said their movement succeeded forcing the democratic party to adopt college education and other issues he championed. >> our job now is to see that strong democratic platform implemented. >> a full on endorsement. hillary clinton will make an outstanding president and i am proud to stand with her tonight. >> it looked like democrats coming together after a rough

convention start. a show of disunit outside the hall too. police taking dozens into customer. bern any backers are bitter. can i just say, to the bernie or bust people, you're being ridiculous. >> sanders delegates were mad after wicky leak revealed staffers worked for hilly, but they welcomed first lady obama who praised hillary clinton. >> i want a president who will teach our children that everyone in our country matters. that is the kind of president that hillary clinton will be. >> that's what bernie sanders says. i'm steve handles, nbc news at the dnc in philly. >> quite fans in this case nating i speak to my american friends who have parents in the u.s. and they're highly educated, above education in degree level and will they're saying they're voting for trump

and their children here are horrified. do you think we're underestimating the process of a trump win here and what impact will that have on markets do you think. >> i think people have underestimated trump and his ability to progress in the whole presidential campaign. i think we do it at cost. we have to step back sometimes and say why is this happening, this rise of populism and it's a dangerous phenomenon. it has echoes of the 1930s and it's all done turned guys of democracy, but in many ways there's an anti-democracy movement you have to wonder why people are so enthusiastic about trump. that doesn't offer anything seemingly positive. >> taking the other side of the coin is we don't know how he would be as a president. we don't know that. what we do know, i think, just by looking at how the campaign has run out so far is he changes

his mind on things or not in the campaign just over the last many years. he changes opinions. we simply don't know, but you're say sg with populism, a lot has been written on the subject matter and there was an interesting piece the other day saying -- i don't remember the publication. we've seen traits of trump in the a lot of the previous leaders. we haven't seen all the different traits in one person. you've had different traits in carter, reagan, whoever, but trump seems to kind of have all of them all together. >> we've also got the rise of social media and the use of social media influencing opinion. like irdon in turkey and how social media played the ability to counter the coup. michelle obama and her speech

said tchl presidency can't be boiled down to 140 characters which a lot of people were saying was a winning speech. >> bring you up to speed with mitchel obama. we're going to take a break. bp posts its third loss in a row. dissect second quarter results and have the latest on the gulf of mexico. have they moved on finally, stay with us, we're back in two. and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckl.

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in the period. speaking to snooeb earlier t cfo was optimistic the company could outgrow the markets. >> we do see during the second half of the year strong volumes coming in due to the winter. winter people are putting new tires the on their cars so we do expect a slowdown, but still reasonable growth, let's say around 2% for example in passenger carry and a flat-ish market in truck. we should able to outgrow the market. >> randstad is stable in growth coming in slightly ahead of both analyst expert testimoctations figure a year ago. this is the did you have staffing agency said volumes in

july pointed toward stable growth. coping in a post-brexit environment. >> if how you look at the performance through the quarter, it has been relatively okay. we do see continued growth in many markets. european markets, germany has been added as a country where we do see growth over the last quarters. france continues okay. netherlands shows good growth. uk has been sluggish for a while and that continued in the third quarter. that means not far have zero. man group has performed a 3% dip. redemptions in the first half of the year reached almost $9 billion. it remains committed to retaining the headquarters in the uk despite the outcome of the brexit vote. in oil, bp has missed expectations.

the oil major has drawn a line now under the 2010 golf of mexico oil spill with liabilities totaling more than $61 billion. adding this into the mix, bp posted a loss for a third quarter in a row. research analyst, welcome, good morning. let's start with bp. a a lower than expected margin. how much of this is driven by what's taken place within bp and how much is driven by external factors at the moment. >> at the moment it's very much driven by external factors. you're seeing some of the impacts of lower costs coming through on our calculations in the second quarter. operating costs were done around 7%. you're seeing that kbkt. by far the dominant factor is the weaker oil price. when you look at the reported earnings you've got the impact

of makondo as well. on a look for it basis, the refining margins, they've weakened in qt and weakened further. the outlook for q 3 is unsurgeon. >> they' >>. >> is this something you anticipate clear going to have to see more of beyond 2016. >> i think bp along with a lot of their peers is guided to low lower cap exin 2017. doesn't feel like a huge surprise. i don't think the market is going to react overly positive to further cuts. feels like that will stage in terms of the market rewarding lower eer capex has passed.

the focus at the moment is keeping the cost low and being able to balance the books. the worry is oil prices stay lower than 50. refining margins weaken and how companies get through that interim. >> stop the press, we've got a final estimate for the macondo liability. they can start acting like an oil company. it seems to be an endless parade of further cuts and charging they've had to take. this is a positive here surely. >> i think it's more similymbol than anything else. we knew the remaining liability was relatively modest. they announced it a few weeks ago. they were taking a few billion dollars, in the context of $60 billion plus is fairly

maniscule. they've still got $14 billion of provisions on their balance sheet, net liabilities. they're going to have to fund over the next decade or so. although the issue is over, it's still something they're going to continue to fund. their disposal program is going to go to entirely funding the macondo liability. it is still a pressure on the business going forward. >> i'm trying to look for silver linings here. they obviously took a hit as all the oil companies did. stand just 8% with shell and its competitors. these guys earn their revenues in dollars. they've got ale significant proportion of the cost in sterling. that's surely been a bit of a tail wind for the business. >> over the last months you've seen a couple of drivers for bp. they hosted an analyst trip to

tobacco to showcase some assets, but really talk about the business in generally and still have great potential. secondly with brexit, you know, bp earns virtually 100% of revenue in dollars. it's got some cost in sterling and the euro. it's actually a mild positive for them overall. on top of that with the banks going down t house builders going down, uk fund managers have to look at safe haven. dollar earning safe haven like bp. >> what are your thoughts. >> look for the dividend as we've had a few. a windfall profit from the fall in serlg, but y sterling, but you mentioned the pressure on capex. when do they make that decision about maintaining the asset base of the company, which they're supposed to do versus paying out

dividend. >> i think the dividend at bp as with most of these is very hard to see them cutting the dividend. majority invest for the dividend. i think it's very unlikely they cut the dividend. if you look at what they're doing in the moment, they've got a script dividend in place. this quarter more than 35% a third of investors talk their dividend in shares. that thax the burden off bp for the time being. they've got a clear framework to be able to pay the dividend and fund cap exin a oil environment. the other risk in the current scenario is the downstream environment stays weak.

>> assuming the oil prices stay where we are right now, you've got a dividend yield of 7.5%. would you buy at these levels. >> i think the current levels it feels fair value to us. >> right. >> for zero growth company long-term as i think bp is and with the script in place at the moment so your actually cash yield is much lower, i think it's fairy valued. >> very quickly, would you be interested in the oil majors here. >> not really. if a company can't grow it's capital, that's where you get the growth from in the long-term. that worries me. >> agree with you. great to have you on. the managing director, thank you. >> now let's move on. >> the bank of england. >> policymaker marten wheel has changed his mind and supports immediate stimulus for a uk

economy. last week's disappointing pmi data. called for firmer evidence before implementing more monetary easing. let's just glance at sterling. we're off half a percent. 1.3087. andrew, sterling weakens, many are saying it's here to stay and we'll see more of it. in terms of where the pound is going, what are you thinking? more disarray at the moment? >> probably in the short-term, going to be range back. we just can't make any big strategic calls until we have the deficit of what shape the brexit negotiations will take. if there are any real true long-term impacts on the economy. i'm not a pessimist on sterling. >> quickly, how do we make money? what should we be investing? >> i think with all this sort of macro and political to get very

depressed about investing. our approach has always been be cautious about the operating environment and optimistic about the companies in which you invest. for many companies not a lot has changed in the last six weeks. there are a lot of good companies. a lot of good projects. companies restructuring. health care, technology, consumer sectors. they're taking initiative into their own hands and restructuring and driving growth. >> tech, consume r, helt caalth. >> we need to take a short break. find us online, word markets live. it's our blog. runs through the entire european trading day. much more after the break. talking about u.s. politics and

twitter.

bp. shares suspended after falling 13 pkts as have i venndy waves good b-bygood-bye. >> voluntary -- >> warning refining margins will stay under significant pressure. that's after weaker level in six years. and profits in investor gains out of sight for italian eye wear after cutting sales. >> welcome back to "street

signs." let's give you a look at u.s. futures. clearly a few hours until it will u.s. equities markets open. we're sitting at this moment relatively unchanged. they did close off session lows. oil was the critical sentiment yesterday. oil and gas weighing in the sector here in europe. give you a quick look at the markets as well. the ftse 100 outperforming. a bit of publish here for the italian and german market. vivendy. the banks once again in italy we're watching here. >> yes, expectations are high for the bank of japan meeting this week. fiscal stimulus from the

government might be more likely. joins us live from tokyo, ma key co- >> reporter: yes, the passage is being put together to give an additional boost. the finance ministry had earmarked 3 trillion yen. the total amount ballooned to double the initial amount. it will be funded through a supplementary budget as well as funds from fiscal 2017 and other lending facilities. the plan includes policies to overhaul japan's employment system to reduce overtime and allow longer parental need and also investing in infrastructure with a focus on tourism such as building docks for cruise ships and deregulation of hotel structure. support of business affected by

britain's exit from the eu is also on the list. the finalized plan is to be announced in august. government figures show its goal of reaching surplus by 2020 has become increasingly difficult. the massive stimulus passage being put together. it still shows japan will miss its target. if economic growth continues at its current sluggish pace of around 1% annually, japan will be facing a primary deficit of 9.2 trillion yen by the same near. even if the economy picks up to real 2% growth, it will still be facing primary debt of 5.5 trillion yen. itunder lines how difficult it is becoming for abe toll achieve the goal of rebuilding the economy as well as gaining financial help. >> thank you ma key co-very much.

luxottica. weakness in the u.s. hurt sells global security threats would continue to impact tourism. down from a previous forecast of 5 to 6%. stays with luxury, a portfolio manager joins us live from zurich. good to see you this morning. lvmh. it's been in the headlines as of late. first company to report first half numbers as you point out. what are your expectations. >> so we expect for the first half and also for the second quarter we expect organic growth slightly up. i think it's quite an acheemt in

this environment. organic growth like spirits and cosmetics with goods a bit legging. >> time in their 30 year history they're selling a fashion brand as well. they're disposing of their donna karen unit too. does this open the door to other disposals. thinking about mark jacobs and miami cruise, which they own as well. >> yes. i think they still need to find a solution for some brands, but overall i don't think they're focused. so it was a good opportunity selling it. it was better managing towards the r u.s. department stores. so i think it's more a single transaction. >> you mentioned concerns about the profitability of fashioned

leather and fashion segment in particular, what impact do you expect the terrorism that we've seen in europe to have because we've got a number of airliners saying they're seeing lower bookings. that's going to have an impact surely on the european sales. >> so it has an impact especially in europe, but we overcalculated that given it's around 10% of the industry, so if the market is down, we expect maybe 1 to 2% organic growth for the full year. it is an impact, but it is manageable we think. also it is less tourist in europe will be compensated in other area. >> steve: what about the chinese, they contribute a third of luxury spend sg not only the issue with lower luxury spending at home. is that factored into your

numbers here? >> yes, it's true. chinese are really important, but we hear recently is why they travel less, they spend more at home. that will be interesting to hear about spending in mainland china and also still other places like korea, is very hip. clothing companies like mmh also benefit there. >> so just wrapping it up, i see it's been a core holding, lvmh in your portfolio for a very long time. why do you continue to feel it's a solid investment? so. >> so really like the company it's very well managed. it's also much more defensive than people think. so one is coming from spirit and cosmetics and also is the watch

business is outperforming the industry at the moment. they have smaller brands doing well and the main brand lieu equity have i on the is holding on in the market. the stock trading at the bottom. we saw operating profits down some 0.6%. we had comments out saying they are looking at selling fsr belgium, but taken no position yet. >> let's move on, the democratic national committee has offered it's, quote, deepest and sincerest apology to bernie sanders in the wake of an em link that revealed a bias towards hillary clinton throughout the campaign season. the scandal didn't cramp his style as he early morninged supporters to elect clinton as president calling for greater

social equality. >> this election is about ending the 40-year decline of our middle class. this election is about ending the grotesque level income inequality in america today. it is not moral, it is not acceptable, and it is not sustainable. >> will >> well, the republican rival saying it was sad to watch sanders abandon his revolution and sell out to crooked hillary clinton. >> joins us from the democratic national convention in

philadelphia. good morning. isn't this just theater, all boog we saw. 75% of his supporters have already transferred to hillary clinton anyway. >> reporter: or would be willing to do so and there was a stark difference what we saw just a few hours before this convention opened when bernie sanders addressed thousands of supporters here in philadelphia. these were people who had helped his campaign, had pushed his campaign. that i have crowded in to hear him and when he talked about backing hillary clinton, they booed and booed loudly. here on the convention floor with the delegates and the alternates when he made that same case last night, we did not hear that same level of opposition. certainly you've got to wonder if the clinton campaign was breathing a sigh of relief. they had been work together earlier in the day behind the scenes coordinating with sanders people trying to keep the protest on the floor to a

minimum. >> tracey, i noted as well that a lot of the press over here at least is talking about how michelle obama really stole the moment. she stole the moment with the speech she gave and it seems all she did was getting quite a bit of praise from both sides. >> reporter: well, she did and in her trademark style she sort of rose above what's happening here. some of the dissension between the clinton supporters and the sanders supporters. she address it directly, but she came out and talked about unity and put a lot of this in perspective. she talked about personal experiences, her family now living in a house that was built by slaves. she got choked up talking about her daughters playing on the white house lawn and now because of hillary clinton able to see a woman can be or can run for president of the united states.

what michelle obama did was pull hillary clinton into the narrative that she believes the democratic party has already built to champion, to fight against inequality. and hillary clinton is someone who has faugtd thr those types of things all along. as you know, michel michelle ob numbers of likability much higher than most politicians. >> tracey, thank you very much. live out of philadelphia. jts moving on, 19 people have been killed in a knife attack in japan. took place at a care center for people with mental disabilities. broke a window to enter the

facility. >> now, back to business news and coming up on the show, verizon begs yahoo in a multibillion dollar deal. what next for the ceo giant. >> i certainly plan to say i love yahoo and want to see yahoo into the next chapter. tim and i are old friends and colleagues and very much respect him and looking forward to working with him again e. they told me a bottle couldn't dream. that i would never become a superhero. [singing indistinctly] but i learned how to fly. just to come back in a new disguise, and be the hero i've always wanted to be.

vivendi. welcome back. earlier cnbc spoke with the

pilots of similar impulse about their experience. >> they were some moments, but also difficult moments, setbacks, even and this is the definition of adventure. a flight around the world in a similar airplane has never been made or attempted even so when you start this, you're in front of the unknown and you have to find solutions. you have no benchmark. nobody can explain. so we just run this adventure with our team and hopefully make it work and it did. so it really shows you can do incredible things with clean technologies, renewable energies like flying day and night on similar power with an airplane and limited endurance because you don't need to refuel and that was our experience over the ocean. it's fantastic when you have no limitation. >> i'm curious about how much time you had to spend on oxygen on this final flight because some suggests at the levels you're flying at with thermals

and turbulence you would have to spend some time on oxygen. >> this last leg was special as well. each time a the limit of the technology and limit of what we can do, the last leg was done over saudi arabia with very high temperatures and higher than what we had been designing the airplane for so we needed to retest some equipments very quickly. we had to change the flight profile to fly much longer with oxygen to be higher than turbulence because turbulence sis are very strong. ended up very well. >> the fiscal stress that puts your body under, as well. i remember a previous interview he was saying he was sleeping with his eyes open. aware of what's going on, but sleeping. >> i can't even think about it. just being a poilt, my goodness,

i could not do it. hats off to all you who do. >> exactly. texas instruments beat the street in the second quarter with both the top and bottom line exceeding expectations. among a list of apple suppliers issued strong guidance for the current quarter boosted buy demand from the auto and communication sector. shares in texas instruments rose more than 6% in after hours trade. >> u.s. wireless operator has bought yahoo's core business for $4.8 billion. it will con biem it will assets with aol the deal it doesn't include yahoo stake in alley baa baa. >> when you look at it, verizon is bringing about tremendous value at yahoo. it's a broward dproud day for u

we're doing it in a way that sets up the extra testrategic b >> apple shares up. much analyst lowered target priesz from $85 to $110 saying apple has peaked under tim cook's leadership and upgrades to the iphone 7 will be slower than expected. this comes as apple gets set to release third quarter earnings today. >> we have testimony iphone and ie fad, what about the ie car. the wall street journal is reporting that apple has gotten bod manessfield to lead the project. declining on comment from that news, but investors are focused on growth areas for apple like the car. the traditional hardware is

under pressure. it's a struggle we might see when apple reports q 3 results. 42.1 billion. that would represent drops. apple stocks have sold 40 million iphones. declined 17% as the tech giant struggles with tough comparisons. how much out of that bad news is already priced in. down more than 20%. beyond the june quarter, investors are focused on the iphone 7 as well. boost incremental changes. some analysts think small improvements could mote street people to upgrade. >> the key piece investors are miss sg a large pool. we believe 275 million units that are older than two years old of iphones.

they want to stay with the iphone. when your phone gets to be old r than two years, you have a high probability of upgrading. the risk is people put off iphone 7 because they're more excited about the tenth anniversary of the iphone. low risk. too many people out there waiting to upgrade. >> for cnbc, i'm josh lipton in san francisco. >> nick, great to have you on. we're just hearing the concerns about upgrades about iphone. what can apple say today to beat expectations? >> i share the bullish view of apple in the long-term. it's set the bar so high that we can't expect a game changer every year. it actually had great success with relatively small upgrades in the last couple of years. the largest format was one of the most successful products

apple delivered. we won't expect a game changer this year, but small incremental upgrades, a huge loyal base of apple fans who have been looking keenly at that and upgrading. >> so look through the noise and concerns they haven't come up with the big latest product, the ie car, the ie watch is all they've come up with. they've had five years to innovate, why haven't they come up with something else. >> there may be something next year, this zent anniversary of the iphone has become a big deal for apple watchers. that's when we're expecting the big changes. there will be upgrades. we've been discussing some of the upgrades, muted upgrades for the iphone 7, but the bigser stuff will be happening next year. >> how much upside is there in the share price at this point. >> i think if you take a longer term view of apping, it's market cap, i think you know, playing

the longer play here, it's still massively important company. >> down 21% of the past 12 months. >> let me ask you about twitter as well. your expectations are optimistic for twitter? how do you translate user growth into revenue growth. >> yes, this is the challenge for twitter. they've struggled to grow the user base in the last year of two. they have increased revenue from the users. some levels, it will signs should be good. twitter has had a good year in terms of use coverage. always does well with big breaking news. we had u.s. elections. we've had euros. olympics coming up. not everybody loves donald trump, but he's huge on twitter. there's a lot of reasons why twitter comes to its own when

there's big breaking stories. we'll see if that translates to increased revenues. >> yahoo, calling it a proud moment for yahoo. >> huge relief. >> looking back to 2008 when i was looking at yahoo at the time and they turned down a deal for $45 billion from microsoft. supposed to be fair that didn't include the alley baa baa stake or yahoo japan which is massively large . >> does she stay. >> there's a big job ahead. >> i read a stat very quickly based on their users, if they manage toll achieve the shift between fixed internet and mobile, based on the generation like facebook, $2 billion of revenue. i don't think that's a proud moment. that's a shocking moment for investors.

>> the simplistic view of yahoo user base is not at the cutting edge. it's people who have that system, the yahoo em they've had for years. they never took those users with them. there's still value. >> got to go, nick, thank you very much. looking back at some of our top stories. media set, vivendi's decision to buy the entire unit, vivendi has offered new terms to buy just 20% of the paid tv business now. 15% stake in media set to be built up over the next few years. media shares were suspended after falling to a five-month low. turning to the banks,

kommerz bank. the bank said valuation methodologies relating to sovereign debt and pension liabilities had hit as results. deutsche bank tomorrow. bp meanwhile, missing expectations posting underlying earnings of $720 million in the second quarter. the oil major drawing a line under the 2010 golf of mexico spill. liabilities totals more than $61,000. >> that is it. i'm louisa bojesen. >> i'm julia chattily. "world wide exchange" up next.

commerzbank. good morning. the names to watch, coming up. the fed in focus. two-day meeting in washington starting today. we'll talk expectations straight ahead. plus the race for the white house. bernie sanders takes the stage at dnc and urgers supporters to back hillary clinton, but so-called bernie or bust elements aren't going quietly. "world wide exchange" begins now.