violence in the markets the last few days i'm delighted to say the violence of astrazeneca that we opened with yesterday, i will talk about violence on the upside yesterday it's a nice story and one that reaffirmed my faith in at least some valuations out there. i'm talking about the surprise announcement to the upside this morning of adidas. i'm steve sedgwick, these are your headlines banks credit suisse and barclays outperform their peers, amid a mixed picture for european banks as several report results.

credit suisse ceo tidjane thiam tells cnbc the bank's restructuring plans have started to bear fruit. >> often people say, well, we focussed on the costs, not yet the revenues revenue is 9%, costs are 6%. that drives the operating leverage that you see in the numbers. and that will continue barclays sees its first earnings hit by the divestment of its africa business, but the shares move higher as ceo jes staley tells cnbc the bank has turned a corner. >> we're now a clean bank and restructuring is over. we feel good about how the bank is positioned. we are free of all the legacy issues adidas shares hit a record high after the german sportswear

maker raises its full-year sales guidance ahead of next week's numbers. shares of renault drive lower despite a 17% rise i first half revenue, as analysts raise concerns about the french automaker's levels of leverage absolutely huge set of numbers out from the banking sector this week barclays has posted a 1.6 billion pound loss in the first half of the year, dragged down by costs associated with the sale of the bank's africa business hang on. isn't there a time when africa was supposed to be the big growth driver? has something happened to the demographics not including the impact of the sale, the british lender reported a pretax profit of 2.3 billion pounds, below analysts forecast of 2.7 billion pounds another generation of ceos told

us about africa. africa's demographics have not changed, look at nigeria and kenya, they love mobile banking. they were doing mobile banking when we were still writing out checks, but they have sold the africa operations and are taking a decent sized hit on it, 2.5 billion loss hitting the numbers. the broader figures fell people care about revenues as well to be fair, we know investment banking revenues are under pressure we heard it from just about everyone on both sides of the atlantic, we saw a 5% fall in investment banking revenue 20% fall in what they call the macro trading business this is a bank which still has low valuations i did want to make the point on this one, trading has not really managed a decent rally 210 pence is where it is trading. in terms of what that means, pe, 10.4 that's well below some of the peers. we will talk about ubs in a few minutes, it has a 12 pe.

we will talk about credit suisse which has a larger pe as well. it's all about whether you believe there's a recovery story. on a price to book basis, this is trading 0.6 you have a book value of assets, the market saying is it what we think it's worth, worth more than that or lower like deutsche bank people are concerned. speaking to cnbc earlier, jes staley told us he's confident about the bank's positioning >> we're now a clean bank. the restructuring is over. we have generated a return on tangible equity in the bank of 7.2% our profits before tax, year over year, were up about 78% we feel good about how the bank is positioned. our strategy of being a transatlantic consumer corporate and investment bank is free of the legacy issues. we feel good about the next

chapter of barclays in front of us >> not just barclays reporting today a whole host of companies have come out with figures, including these two. ubs shares falling 3%. on investor concerns about gross margins in wealth management this despite beating second quarter net profit extechtation expectations credit suisse reported a record level of assets under management during the second quarter. the swiss lender saw it's strongest inflows in six years helping it post 78% rise in net profit both banks warn, as did jes staley talking to geoff and karen later on that low levels of volatility and geopolitical concerns were weighing on market activities before we get to carolin, volatility, the banks moan when there's too much volatility and now beknomoaning too little volatility isn't that interesting when a

happy goldilocks level of volatility, and they're not seeing it. carolin roth carolin roth has more. you have spoke to both the men in charge. >> i think there's a couple reasons. first, i would say that there's less surprise potential when it comes to ubs they have already delivered on their restructuring programs when it comes to credit suisse, when investors and analysts see good results, i guess they reward it more that's why we saw the pop in the share price this morning based on the fact that the net new assets in the wealth management unit of credit suisse were quite strong and overall results were reassuring when it comes to ubs, there was a drop in the core cte ratio, to just below 14% that was in part because of regulatory reasons and analysts were a bit surprised about that. by in large, ubs still beat

expectations and the wealth management franchise was strong. both banks suffered from the fact that as you pointed out before volatility was quite low in the quarter, that impacted the investment bank. and confidence is maybe not at the level that both banks would like it to be. let's quick things off with credit suisse, given this bank is a few years behind ubs when it comes to the restructuring program. i spoke to tidjane thiam and asked him whether he was frustrated that the stock was still trading below book value despite all the restructuring efforts. >> i looked at a lot of bank restructurings they go in three phases. you have a deeper restructure, you have stabilization, and then what i will call acceleration. >> where are you right now >> we are in the stabilization phase. the debt restructuring always triggers a drop in share price

you create a lot of disruption risk, disruption in the business, product lines. then you bottom out. and then you start to stabilize and that's where we are. then you accelerate. and if you super impose the curves of share price of many banks, you will find amazing similarities that's all i can say it's a long-term project 18 months, we've been busy these 18 months, growing, cutting, cost cutting, i vitt's vital. i think the next 18 months will be better. the key thing is to keep our eyes on the ball never declare victory. the going is good, but it don't happ doesn't happen by itself we have to stay focused and execute well >> in this execution phase how much pressure are you facing

from the financial market front, regulatory market front? >> significant uncertainty volatili volatility is low. i think realized volatility is 5, and it's still below that i have to hear a convincing explanation why it's so low. a lot of people don't understand the market that's also important to do more with clients, have more active dialogue with them that's something we are doing. it's unchartered territory yes. volatility, all the activities dependent on volatility are suffering. everybody is struggling. in the end, that is also why you have a diversified model that's why we're driving strategy, focusing on wealth management and businesses that are less market dependent, less

so over the long-term. that was credit suisse's ceo tidjane thiam talking about restructuring efforts. analysts applaud the fact that cost control at credit suisse seems to be on really good control, on track. when it comes to ubs, i spoke about how the wealth management franchise was doing. you talked about margin pressure there, but he's still pretty upbeat >> i'm very pleased with our money flows, and also the one in the u.s. that have been effected by tax payments. it's once again a demonstration we've been working for many years now on quality versus quantity we have been able in our wealth management businesses to grow new money starting from a high base, 6.6%, and with a reduction of client advisers

so we have demonstrated you don't need to have aggressive account growth to fuel growth and confirm the position as a leader >> how is the margin picture looking? we have seen pressure on growth and net margins. is that a sideways movement? do you think that will pick up sustainably at some point? >> if you look at year-on--year growth, we picked up one point >> that's not much, is it? >> when you start in an environment that we're operating, i'm shnot sure theres other competitors that can claim a pick up in margins, starting at a base we have. gross margin is something we look at. but it's not at the end of the day the way we create shareholder values steve, bottom line, it's very rare. in my ten years at cnbc i have never seen ubs and credit suisse report on the same day, same

morning. i guess this is a once in a lifetime event it seems like today credit suisse won the race, but they have much further to catch up versus ubs >> i don't think of two companies earnings as once in a lifetime event, it's like winning the lotteries. i guess for you who loves those banks so much, it's like winning the lottery for you. i'm delighted to stay, when i get there, that we have our guest. carolyn sa carolin says we have the opportunity to put the two together and let's do that point for point. what do you think? >> let's start by capital, that's what was the big weakness in ubs results they surprised the street by

posting 15% versus 14 which was forecast ubs is taking increase on risk asset in balance sheet that's something that also credit suisse mentioned. there's volatility there, potential for increase in risk credit assets. credit suisse did the huge writing of 4 billion, which brings them below a certain threshold. credit suisse -- >> let me stop you right there you piqued my interest what about that point, you made about mr. ermotti feeling confident enough to increase rwa, to cut the cte 1 in an environment where everyone always gets applauded, yeah, you got your cte sorted out. now get the rote sorted out. will swiss regulators be happy to see ubs taking on more risk >> no. i don't think they will be happy considering the recent history

in 2008. to mr. ermotti's defense, i don't think he needs a lawyer, like me. i mean, ubs has one of the highest cte 1 in europe. i think with that level of -- >> that's not the case, is it? you say europe, you're talking -- >> yes >> i saw good roes, despite those high cap stall levels, we spoke to danska, they still have good roes. >> they say healthy rise in prices let's have a look at what mr. thiam is doing how has he done? he's been there two years now? >> yeah, two years it's been a rough ride >> it's been rough for him externally, had problems interminalinter internally is it beginning to bear fruit?

>> on the cost side, always a pretty much pain in the neck for credit suisse, he seems to be getting the job done he's quite confident that he will match the full-year guidance on the cost side, which is very important for credit suisse, yes, almost there. on the revenue side, it's more tricky if you look at the inflows in the wealth management, apart from asia pacific, which was a bit weaker in the first quarter, this time of the year, that's what seems to be good, doing a good job though the margins are also -- they are pretty -- on the investment bank side, it's more complex because for all the talk, we should never forget that credit suisse is still a huge investment bank if you look at some measure of interconnectivities, i think credit suisse is almost in line with large banks like jpmorgan

>> so help me out here, i'm questioning this volatility. they're all moaning about volatility i can do that, i'm a journalist. i don't have a position. but 9% on the vix as an example, i think it's too low but i understand compared with historic that the implied is trading where it is. for these guys to bebemoaning the lack of volatility in the market, the market is going up they say they're not making much money or bemoaning the lack of volatility, i'm sure i can pull out tape from a couple periods where they all said it's too volatile our clients don't want to do anything can i say it like this i don't know i will say it in a nice way. surely they need to man up and say the market is what it is >> i agree volatility is huge, always huge in order to justify some

shortcomings to be fair, if you saw the result on the money in america, you knew the second quarter wasn't going to be a great capital market quarter for the large european banks, deutsche bank or credit suisse. then on the question of volatility, again, what sort of volatility are we talking about? when there's volatility on government bonds, that's typically bad for investment banks. >> you know what these banks globally have been given a backstop of free money from central banks with that comes clearly -- we've all been given a backstop of money from central banks. with it comes less volatility. that's what we wanted post the financial crisis if we are out there with the financial crisis you have free money on one hand. great, bonanza on the other hand, if they moan will low interest rates and volatility you can't have everything. >> you can't

it's a question of benchmarking different global investment banks. in my opinion, it's not very original, but clear that u.s. peers sort of are not playing in the same league. if it's something -- i can answer the question on overcapacity in investment banks. overtime there will be concentration, consolidation, who knows, maybe in europe it will happen to invest the banks. >> about ten seconds left. what is your favorite european bank and least >> hum >> have i put you on the spot? >> yeah, my favorite is commerzbank. the least favorite is santander. >> lovely. maybe there's a valuation argument in there. >> there is. >> one has a decent price to book -- the other one, very much so >> yes >> absolute pleasure speaking to you. thank you for joining me on "street signs.

thank you, sir. you can e-mail us, yeah, streetsignseurope@cnbc.com you can get in touch with me, steve_sedgwick bnp paribas shares trading lower after 3.4% decline in group revenues for the second quarter of 2017. the investment banking unit bucked the negative trend. reporting a near 5% pick up in top-line growth. we'll speak to gemma in a few moments time coming up on the show, shares het it an all-time high adidas details after the break.

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>> that's good you came back. let's look at adidas adidas shares hit a record high after raising full-year guidance the sporting goods maker says it forecasts sales to rise between 17% and 19%, this as adidas preliminary second quarter earnings are above expectations. i do want to look at shares. my producer kindly has done a board going back to basically october 2014 i had the shares there at about 55 euros 55 euros look at that that's the most stunning, stunning rally 192 euros where they currently trade. it has me thinking i love this company. my whole family is in the

sporting world, adidas, nike, these are the companies i grew up looking at what casper rorjstad did, one of the nicest people and competent people in the business, he was at hinkel, did a fantastic job there. doing a great job at adidas. he said we will restructure. he got rid of facets like tailor made, and has competed aggressively with those new kinds of breeds, the under armour, the lululemons can they justify this valuation? yes. 25 top times you would have heard me saying that's a fruity valuation. you only get this from retail wloers wloersretailers who do this online guidance hike as well. that's what we talked about.

revenues up 20%. very, very strong performance across the board it's nice for me to stand here you know i'm one of the most cynical people on the planet and say i think we have a company that justifies valuations. i do pre-announcing something that's out next week. the 3rd of august, we will speak to kasper rorsted. they're pre-releasing. they say we have to tell the market, it's even better than this extraordinary performance from adidas interesting to see how nike responds with its figures. that he have been struggling to keep up with adidas. let me tell you that coming up on the show, we will be talking more about the banking sector as well we spent a lot of time talking about ubs and ubs actually is a company that was trading 16 times forward, now trading 12 times forward. banco sabadell, shares jumped after speak 2.

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welcome to "street signs."

i'm steve sedgwick, these are your headlines credit suisse and barclays outperform peers amid a mixed picture from european banks as several report banks credit suisse's ceo, tidjane thiam, says the bank's restructures plans have started to bear fruit. >> often people say, well, we focussed on the costs, not yet the revenues revenue is 9%, costs are 6%. that drives the operating leverage that you see in the numbers. and that will continue barclays sees its first earnings hit by the divestment of its africa business, but ceo jes staley says the bank has turned a corner. >> we're now a clean bank and restructuring is over. we feel good about how the bank is positioned. we are free of all the legacy issues adidas shares hit a record high after the german sportswear

maker raises its full-year sales guidance shares of renault drive lower despite a 17% rise in first half revenue, as analysts raise concerns about the french automaker's levels of leverage all right. it's been a lackluster performance from european equities so far. let's look at how u.s. futures are called to open the gdp figures due out as well. we'll talk about that in a few moments time in terms of the european equities, the french market, we mentioned renault under pressure, 1.3% lower xetra dax losing 0.7%, despite brilliant numbers from adidas. the ftse losing 0.5. to be fair we're seeing mixed trading. i think 7,350 range looks

tradable at the moment on the ftse a look at the 4x market, trading 1.17 on the u.s. dollar, as has the pound versus the dollar had a 1.31 handle this time yesterday. a strong performance in the largest market, brazil, helped santander post a 37% rise in second quarter net profit. that's in line with analysts forecast the bank took over bank to pco r last month to avoid collapse we asked the cfo what boosted the bank in that country >> we built the portfolio to really have something balanced between categories, price segment, style -- >> that's the wrong bit of sound. bba had reported a decline in

profit the spanish lender got respite have from a key mexican unit where profits rose by almost 14%. and caixbank beat forecasts. spain's third largest bank saw net income rise 19% from a year earlier to 437 million euros net interest income jumped 4% compared with the previous quarter. elsewhere, nearly 50 people have been injured in a train crash at a barcelona station with at least one person severely injured the civil protection in catalonia said the driver was also injured barcelona's police are present at the site and have begun an investigation into the crash air france, klm reported a 6% rise in second quarter sales. the airline reported net profit of 637 million euros up from 42 million euros a year prior

the results come a day after airfrance-klm announced a new joint venture with delta air lines and virgin atlantic, taking a big stake in the latter the u.s. senate has voted down a revised so-called skinny healthcare bill after three republican senators broke ranks to vote against the legislation. this as the chamber struggles to pass an overhaul of president obama's signature healthcare law. the snew bill would have repeald a medical device tax and employer insurance mandates. u.s. republicans ditched the idea of a border adjustment tax in a move which could simplify the push for an overhaul of the tax system scrapping the plan is set to bring relief to large importers who feared the policy would hurt profits. they will implement simple rate cuts with the ultimate aim of cutting taxes to as low as 15%

the new white house communications director, anthony moo sc sc scaramucci has blasted inside staff at the white house, including reince priebus and steve bannon kristen welker has more. >> reporter: tonight, a profanity-laced tirade from the new white house communications director, anthony scaramucci, targeting two of the president's top advisers scaramucci telling "the new yorker" chief of staff reince priebus is an expletive paranoid schizophrenic and attacking chief strategist steve bannon in such vulgar terms they cannot be repeated on television, also calling him a media-hungry self-promoter. sources inside and outside the white house say both priebus and bannon tried to block scaramucci

from joining the administration. it comes as scaramucci is publicly feuding with priebus, too. this morning scaramucci referring to priebus in stark terms. >> some brothers are like cain and abel. >> reporter: the biblical reference of brotherly murder bolstering speculation of a deep divide which started overnight when scaramucci claimed his financial disclosure form was leaked out even though it's public record and seemed to point the finger at priebus in a tweet which was later deleted. this morning scaramucci backed off blaming priebus directly for leaking, but then this. >> if reince wants to explain that he's not a leaker, let him do that. >> reporter: today the white house press secretary dodged questions about whether the president has confidence in priebus. >> he'll make that decision. we all serve at the pleasure of the president. >> reporter: but this isn't the only public feud at the white house. the president has spent days sharply criticizing attorney general jeff sessions for recusing himself from the russia investigation, citing a conflict of interest as a former campaign

adviser. tonight sessions speaking out in his most candid terms yet. >> well, it's kind of hurtful, but the president of the united states is a strong leader. he's steadfastly determined to get his job done, and he wants all of us to do our jobs, and that's what i intend to do. >> reporter: sessions still fiercely loyal even as speculation swirls the president is considering a recess appointment to replace him >> the infighting in the administration is eclipsing the agenda and i think that's why so many republicans are rattled. >> that was kristen welker. coming up on the show, amazon profits, they plunged, but revenues jump as it turns its attention to its global ambitions. we'll discuss this and look at amazon versus twitter and really where these two tech giants stand. that's right here on "street signs.

kering has posted a strong set of numbers in the first half of the year boosted by growing sales at its gucci brands. net increase was 78% compared to the same period last year. let's get to gemma covering the story. what have you gleaned? >> so, we can say that the ceo is really happy with the performance of the three brands. particularly gucci, yst. lauren. they took on a big risk when they took on new creative directors the last three years all brought on new talent which were new, young and risque in terms of what they were bringing to the table we can see by the really strong

growth figures, gucci was up 43.4% for the first half on a like for like basis. st. laurent, 25% up. they are delivering and very popular. i asked the ceo yesterday, look, fashion is fickle. how do we know they won't fall out of favor quite soon? he said we've done something different here we've created a consistent culture and character every for each brand from season to season there's continuity and they can engage with customers the customers are increasingly millennials. those aged 35 and under. now the key customer is aged around 30. so much younger than it's been historically we know gucci sales, 50% of that is accounted for by millennials. 65% at yves st. laurent. i asked whether he was looking at m&a in the space.

we saw tremendous activity lately not the least that michael coors took over jimmy chu. i asked how comfortable are you with the brand portfolio >> we built the portfolio to really have something very balanced between categories, price segment, style, and for instance i didn't even look at that company, gemmy cjimmy chu. gucci is one of the best players in the shoe business st. laurent is strong. so i don't need a specialist so, the portfolio has been built like this. it's true. partly the good performance also based on the fact that we have a strong portfolio of brands, each one has a specific mission they are not competing with each other at all it's healthy in terms of

performance. >> there's still areas of weakness within the portfolio. the italian brand is in the middle of a turnaround for quite awhile that's progressing they say it's progressing reasonably well, but compared to other brands not firing on all cylinders. also weakness at a sports and leisure wear brand pima, in that portfolio, has done extremely well. ups and downs. on the whole a positive result for kering speaking to the ceo yesterday, he feels that gucci, a lot offeof the brands have more growth in them though we don't expect to see such heady numbers, he thinks they will continue to outpace the market steve, back to you >> i'm staggered by that amazing. you have students out there, kids out there in their 20s and 30s who have no homes, cars, student loans, no pensions and low salaries but they can afford

to buy gucci and yves st. laurent. isn't that extraordinary i'll leave that hanging. >> i think so as well. net profit at spanish lander banco sabadell rose 6% in the first half topping analysts expectations i'm delighted to welcome the cfo of banco sabadell, thomo tomas . terrific performance what are the highlights for you, sir? >> we posted a very positive performance in the first half. we have banking revenue, which is 3.5% year on year commissions in particular grew about 7% also with capital gains in the first half we've achieved

performance coverage of our performing assets, stock is up 54%. this combined with our strong position in terms of capital in this spanish market, which stands at performance of 12.5% fully loaded, compares ahead of our peers in the sector in spain. so strong performance in terms of business and improving our asset quality. >> the market is giving back a bit today, but that's being picky considering your shares doubled since last year. if you had areas of concern, where would they be? >> areas of concern for us, even though -- this would be the negative side. we are seeing underlying trends that are really positive in

terms of the economy in spain in particular but in terms of internationally, in general, the things that could make this scenario worse would be that some political uncertainties would worsen the landscape bad. we assign to this little problem the. we think there are many underlying trends that are positive we think we can expect better prospect in terms of interest rates. to this we are positively exposed. so for us the only thing that could sort of worsen this scenario would be, as i said, politically we would then see dramatic approach in the uk to brexit, for instance which we think will happen

so we think the brexit outcome would be more pragmatic, and from both sides europe and the uk, that most possible pragmatic approach will be found >> you've been at sabadell since '92. you've seen it all really as well i won't ask you the obvious brexit question. you answered that. what about the potential for an upset in your home region, catalonia. 1st of october, no one seems to talk about it that much. do you think there could be some form of constitutional crisis that pulls the rug from the markets in europe coming out of spain potentially? >> no, i really honestly don't think there's going to be significant effect of this we really hope that of course it's difficult to see now in the landscape where the political

stance is of different players in this situation seem to be driving towards more political situation. but we hope and expect -- this is our honest view, that this will be solved politically we should expect impact on the economy. >> tomas, nice to speak to you thanks for finding the time. when you're in london, come see us on "squawk box. >> sure. very good to speak to you. >> tomas varela. shares in starbucks tumbling after the coffee chain dampened expectation s for the current quarter. they agreed to buy the remaining 50% stake in east china business from its joint venture partners for 1$1.3 billion u.s this is its largest ever acquisition. for more on the starbucks story,

tune in at 15:00 central european time. our colleagues state side will interview the new ceo kevin johnson. intel shares rose in after hours trading after the tech group's second quarter earnings beat forecasts the world's largest chipmaker also raised full-year guidance it expects to see higher pc sales and forecasting stronger growth from ai and autonomous driving. twitter shares fell 14% after the social media company failed to deliver user growth wul jewel has t julia boorstin has the story. >> reporter: twitter shares tanking after no new active monthly users after the first quarter that number remained at 328 million monthly users. analysts projected that the company would add users.

twitter also beat on earnings with 12 cents per share beating analysts projections by 7 cents. twitter management tried to focus investors on daily active user growth up 12% from a year ago. the third consecutive quarter of double digit growth. jack dorsey saying growth and deal engagement indicates changes to the platform are working. >> we are shipping products faster than ever, this empowers us to build features that can build strong future growth people are reporting less abuse on twitter today than six months ago. we take action on ten times abusive accounts daily compared to this time last year >> dorsey stressed that advertisers spend based on daily engagement not monthly numbers dorsey also saying response to the video ad inventory has been strong back over to you >> amazon shares dipped in after-hours trading following an

earnings number well short of analyst expectations quarterly income dropped by 77%. revenue jumped this comes as amazon is investing to expand into new shopping you know the story i'm told in the states, it accounts for about 1$150 billion worth of the retail market, which is $5 trillion market as of yet, no regulatory issues on this one. i brought arjun around hello. just to lock atlook at a couple companies. come over here i think the wall behind you looks ugly you must be magnetic or something. let's look at amazon forget about valuations. that's what i put in there do we need to forget about valuations quite frankly it's an extraordinary valuation. i have the forward pe as 109 times, trailing bigger than that >> it's a theme throughout the week the guests we had here talking about it, the analysts commenting online as well. they are talking and saying forget about the evaluations these businesses are investing

in growth and they're investing in the right areas if you look at amazon, the stand-out performer was aws. >> no need to worry about the margins in aws >> not at the moment this is a big growth market but the competition is rising. there have been price cuts at the moment the margins are remaining okay but there are concerns that if the increasing competition continues, there could be price war that breaks out. >> jeff bezos briefly was the richest man in the world yesterday. they tipped about 5$500 billion jeff bezos i have him holding 16.7% stake in this company. the market loves this story. there are 12 strong buyers out there. 27 buyers, four holds. one seller, one strong seller. overwhelming why is it people have grown up with the dotcom bubble and burst and now are willing to give this one -- i know it's big i know they're doing amazing things why do we give this one latitude that we don't give to any other

company on this planet >> i want to read you a comment that an analyst made yesterday it says as investors everyone knows that amazon doesn't care about the bottom line what you're buying is top line growth, revenue growth, and market share amazon delivered revenue growth. and it continues to drive rev news that's what the market is focused on they say we understand analysts will invest heavily and jump into new areas, if it continues to justify that with continued growth, user growth in different businesses from the prime now business to the video business, that's why they like this. >> let's say they're making -- amazon web services, fantastic in terms of what they're doing retail, they are destroying retailers, bricks and mortars and then buying some, the likes of whole foods, whose quarterly revenue figures have been quite awful. everyone assumes there's a switch

everyone assumes there's a button we have grown our scale, now we will push the bottom line. now we will make money i don't know if that switch can be pressed that's what i think we're being offered here we're being offered the most premium gem on this planet tomorrow when they start to say right now we'll turn into profit, does that mean they have to put prices up? they have to be more aggressive on pricing customer acquisitions will go up will others say there's a weakness here? >> that's a potential. you can't just press a button. if you look at facebook, we have been promised growth and profit with instagram and messenger we don't know if that will materialize. there's concern around the amazon story you have got all these customers what if they don't sign up to amazon prime or to all of these. but the thing with amazon, it's disrupting a huge number of industries >> great disruptor, twitter. 30 seconds left for this one my big thing, unfortunately despite jack dory, whsey said

earlier, no trump effect where is the money >> nowhere that's the problem what flummoxed me is the earnings call. management could not answer that question there's a reason -- someone asked why haven't monthly active users grown? we don't know. but daily active users are growing, and they did not disclose that number which is a concern for investors. i think that's why you saw the fall of shares >> the dow, the wow. that's it for the show thank you for your help this week it's been a pleasure working with you we'll take a break here. we'll go to u.s. programming "worldwide exchange" is coming up next. if you're in europe and you have gotten near the end of your day, have a lovely weekend. we'll see you monday for free! free? yeah. could save thousands. you should probably buy me dinner. no.

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good morning senate republicans fail to repeal obamacare in a dramatic late-night vote on capitol hill. we're live in d.c. with the fallout. u.s. futures reacting to the news they are pointing to a lower open on wall street. europe and asian trade is soft as well. and a mega miss for amazon sending shares tumbling. we'll get a top analyst take on those numbers ahead. it's friday, july 28, 2017, "worldwide exchange" begins right now. ♪ >>