welcome to "street signs." i'm willem marx. these are your headlines this morning. wpp shares plunge after weakness in the u.s. weighs on sales and the ad giant slashes its full-year guidance. a bitter taste for ab inbev. the beermaker drops towards the bottom of the stoxx 600 after it halves its dividend. shares in abb open sharply lore despite a bullish outlook from the industrial firm and the bears take charge. european equities hit their

lowest levels in 18 months tech stocks are among the biggest decliners after the dow, nasdaq and s&p turn negative for the year you can see it's been a negative start for the markets in europe. the stoxx 600 currently trading down around a quarter of a percent. if we look at some of the sectors behind that driving that number down, you can see where the damage is coming from. look at media, down almost 3% on the back of those wpp numbers mt healthcare down more 1.5%. automakers are up 1.35%. construction and material up almost 0.9%. wpp shares plummeted after a report in a sharp fall in third quarter sales. they had continued difficulties

in north america that seems to have weighed on the numbers. ab inbev cut its interim dividend abb shares slipped after third quarter sales came in below forecasts, net profits did beat expectations schneider electric exceeded estimates and reported than expected revenue pretax profit at lloyds rose to higher than forecast numbers and ubs posted a 32% increase in net profit to 1.2 billion swiss francs we'll speak with the ceo, sergio ermotti at 13:30 central european time. we are joined by alex degroot on the phone from glasgow this is a bit of a shock, isn't

it >> it is north america has had a poor q3, down 5% in underlying terms. that accounts for one-third of their group. there are specific issues in north america, but all around this trading statement are worrying signals >> in terms of the details from north america what is going wrong with the business? >> they've been on a negative trajectory what we know recently is they lost a number of big accounts, specifically ford. it's not clear whether the ford fallout impacts q3 but there might be negative sentiment towards this holding company on the back of sorrell leaving and on the back of these high-profile departures. so north america a cause for concern and getting worse as we approach the end of 2018 >> you mentioned martin sorrell, that was a uk-focused story in

many ways. are we seeing that negative sentiment translate into the uk business >> the uk also turned negative in q3. they were a decent market in q1, but in q3 they have turned negative probably unwise to say it's brexit related, but the loss of key clients, the big accounts impacting advertiser confidence. >> leaving aside advertiser confidence, let's talk about investor confidence in the firm. will that be vanishing rapidly >> if you were to pull up a chart on the screen, you would see the stock price more than halves from about 1700 pounds. it's incumbent upon the management to come up with a decent strategy for the next strategy update in december,

otherwise i'm afraid investors will start panicking >> paul richardson has been at the firm for a long time he's leaving now as chief financial officer. does that leave a huge gaping hole in the management team? >> very much so. he was an unsung hero. he was the quiet guy, but he was very much sorrell's right hand man. with him heading for the hills there's a sense of a changing of the guard. for many investors the cfo is such a crucial role. it's paramount they make a good hire in that place to restore investor confidence. what do you make of the announcement about cantar as a potential sale prospect? >> not a huge surprise market research is an attractive area to operate in data centric but an area where a lot of analysts and invests have said does wpp need to be here? could they dispose of this asset?

it's been coming, but the bears may suggest this is the first of many disposals, and that it may be the possibly the beginning of a more substantive breakup period around wpp. >> do you think mr. sorrell is watching mr. reed and thinking poor man or is he laughing >> he does have a playful side but he's not spiteful. he does own 2% of the shares, he's feeling this through his pocket but he has another toy to play with, s4 capital so he's moved on in terms of his own personal business ventures, but he retains a shareholding here so overall he would be severely disappointed at the turn of events since he left in april/may. >> we talked about cantar as a sales prospect if wpp looks to sell other assets will they be seen as a company under pressure needing to make fire sales

is it going to drive down the potential value of some of these assets >> one word answer, yes. distressed seller, yes they have debt of 8.4 billion, it's not nosebleed, but credit agencies are looking at them and they have too much debt. >> you mentioned this strategy update we expect to see by the end of the year. what do they need to do in that to turn things around? >> the classic advice to any corporate in this situation is set yourself targets which you can surpass, which you have no danger of failing on that will be tricky to execute given what we're seeing in the wider marketplace with amazon and facebook, but if i were wpp, i would kitchen sink 2018 and set beatable targets for next year, but make sure they are beatable don't disappoint the market again or that could be the last year for wwpp.

>> alex, thank you for joining us to talk about wpp let's check in on some news about the norwegian central bank it has said it will keep its rates on hold but it does plan to hike in the first quarter of next year. that's something they have already forecast ahead of time they're keeping interest rates on hold at 0.75% that was announced in the last few moments. another big story that we've been following closely if we talk about sort of u.s. markets, what's happened overnight there, serious, serious moves on the dow and the nasdaq we've seen some really dramatic falls specifically in the tech sector there if you want to hear about action in another part of the world, that's nancy hungerford joining us from singapore. what have we seen in asia as well >> it's not pretty all day we've been watching big moves to the down side, but one recovery story to show you,

that's the shanghai composite. it's barely in positive territory. closing out the session about an hour ago late-day rebound we saw here there was momentum in the property sector. it is hoped we will see more stimulus coming out of beijing, so that did lift the market here the shenzhen was still off in negative territory, but considering what we saw el where elsewhere in the market, not as badly. the south korean market entered bear market territory today. we saw big moves to the down side for the chip names. the nikkei 225 off 3.7%. this is about a seven-month low for the nikkei 225 not an easy day there. the moves on the asx 200, the

australian market went into correction territory it was off 2.8%. one bright spot was in some of the gold miners in australia back to you for now. >> thank you very much for that. let's look at some of those u.s. markets driving that movement in asia this is where they ended up last night on the east coast. the nasdaq closed down more than 4.4% the dow jones down almost 2.5% the s&p down more than 3%. one of the sectors we talked about, tech and also semiconductors worth checking on some of those big stocks and the moves on the semiconductors if you look at what's happening with that sector, it's been pretty ugly from an investor perspective. all of those major providers there of semiconductors globally are in trouble in terms of share price. let's also check in on u.s.

banks. some other stocks that have been heavily hit overnight. jpmorgan down 1.8% bank of america down more than 3% goldman down 4.3%. where is that money going? let's look at safe havens to see where it's been moving over? leaving some of these sectors in equities gold price right now is very slightly lower overnight that was creeping up quickly. the dollar against the yen, you can see that's restrengthening that yen was doing relatively well overnight if you look at the dollar against the swiss franc, relatively flat now. again, that was one of the areas where people were moving their money. let's talk about what you can do to get in touch with us? we're at @streetsignscnbc. ubs posts strong third quarter earnings we'll speak with sergio ermotti at 1:30 p.m. central european

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october. the business climate index came in at 102.3, against a forecast of 103.0 the expectations in octobervers. we are joined by the deputy director at the ifo institute. he joins us on the phone essentially is this more bad news for german business >> yeah. this was a very big drop in the german business climate that we had this morning >> what is striking is not only the drop but also the uncertainty we're measuring among german firms the outlook deteriorated and the high uncertainty of the firms. this is a bad sign for the future of the german economy >> the way you measure that

uncertainty is to look at how the expectation numbers are dispersed across the various businesses you talk to that's a trend that's broadening over the last few months you're saying it's continuing now? >> yes it has continued this month. we had high level of uncertainty beginning in the middle of this year so uncertainty has been uncreasiuncrease i increasing and has remained at this level just to give you an example for the two major german areas, for the automobile industry, it's not as good. this is what the uncertainty is measuring. >> going forward with this

uncertainty what does this mean for industrial production levels >> if uncertainty is high. firms first wait and see what is going on the reason for this uncertainty has to do with the international environment. there is brexit, there is trump's trade policy and there's italy. these are risks to the german economy, to an economy which is highly oriented towards exports. it's clear if there is this risk thatthe brexit goes in a direction that was not expected, if there is still this risk that trump is imposing new tariffs on the german economy, or if there is this risk that italy's budget plans will leap to a new euro crisis, then firms will wait before they invest, for example, before they reduce we also see incoming orders are going down this is not only a german problem but also a problem of

other trading partners, especially in europe incoming orders from the rest of the euro area are also going down >> let's talk about some of those issues externally. let's start with brexit. it is estimated the no-deal brexit scenario would cost german firms as much as 9 billion euros over the course of the ensuing year from that moment, march 29, 2019 what are german firms doing to prepare for that eventuality and which kinds of firms, which sectors will be most hard hit if there is no deal >> the uk is one of the biggest trading partners for the german economy. i think this would more or less hit most of the industries in germany. so a lot of exports go to the uk i can't tell you exactly how these firms prepare, but i know from our service that they are preparing for this

the problem is they cannot prepare for the brexit because they do not know how this will look this is exactly what our uncertainty is measuring to the numbers that you have mentioned, this is a long-run estimate for these costs i could imagine that in the short run the turbulence or the exports, the demand from the uk could even be heard more than these numbers suggest. >> let me ask you one other question about u.s. trade conflict last week, we spoke to wilbur ross, the u.s. commerce secretary in brussels where he was announcing new efforts he notified the u.s. congress about trade deals with the european union, with the uk, with japan do you think that uncertainty will diminish? do you think confidence might return to the german business sectors if that trade deal with the european union is aggressively pursued by the u.s. administration

>> yeah. i'm sure this could happen if we see or have the result that uncertainty increased because of this trade conflict, of course it would be for german firms or for all european exporting firms, it would be beneficial if this trade conflict would be solved that's clear >> professor thank you very much for your time. that was the deputy director of the ifo institute joining us on the line. increased levels of volatility and volumes are good for business according to ubs. the bank posted a 32% increase in net profit to 1.2 billion swiss francs my colleague, joumanna bercetche is in central london outside the ubs offices there. what's the future of thin investment bank part of the business given the management shakeup recently >> i think that is the key question out of today. let's take it back a bit and talk about the numbers

as you pointed out they came in 32% higher year-on-year. this is way above consensus for ppt pretax profit. on the back of that we are seeing an uptick for the stock price. for the year to date returns, ubs stock price is down about 20%. there has not been a lot of love for this stock or for this sector as a whole. one question is about the future strategy of the firm so this is a bank that has undertaken a massive transformation over the last couple of years. we know the ceo shifted attention away from the investment bank towards the wealth management union. if you look at the balance sheet about 50% of the revenues are coming from that wealth management unit, about a quarter are coming from the investment bank we did find out last month that one senior dealmaker, the head of the investment bank is leaving the firm and will be going to santander so a lot of people are asking what this means for the future of the investment bank at ubs.

i am standing in london today. i'm not in switzerland that's because ubs are holding their first capital markets day in four years for their shareholders to give more color on what that future strategy is. when it comes to the investment bank they said they plan to devote one-third of their resources to the investment bank whichis in line with what they had before they're not downsizing but also not increasing as well looking at the nuns today investment banking revenue is up 45%. advisement revenue is up 42% the shift going forward will be on continual growth in their wealth management unit one thing that came out of today's strategy announcement is they're looking focus more on activity in north america, focusing on high net worth individuals there. asia has been a big focus of theirs, but we heard from mr. ermotti last month that he's been talking about the

transaction levels slowing down a bit there because of the trade war narrative, because businesses and companies, individuals are feeling nervous. so it's interesting that now they see the big opportunity in one of the most mature markets in the world, north america. they're seeing targets in growth, net new money growth of 3% to 5% between the years of 2019, 2021 so putting it all together, mr. ermotti is really doubling down on the fact that they're shifting the emphases from this investment banking side of things and focusing more on wealth management. the question is whether they can continue to grow net new money, whether they can achieve the 3% to 5% money growth targets until 2021 and continue to deliver a return on equity investment. certainly i think investors may take some relief from the fact that they did post strong q3 earnings we've seen an uptick in the stock price. i started off by saying they're

still down 20% on the year lots of questions for mr. ermotti. and i will be speaking to him at 13:30 cet, tune in for that interview. i'll ask a lot of these questions and more >> joumanna bercetche, thank you very much for that daimler says it will remain optimistic about demand though they confirmed a slump in revenues after issuing a profit warning last week. the firm's cfo said daimler is looking for ways to change its production footprint in order to deal with the challenges of tariffs, but so far no decisions had been made on those production changes. tesla shares spiked in after-hours trading after the first quarterly profit in two years was posted fill lebeau has more >> reporter: a luhuge third quarter for tesla as the automaker reports a profit of $2.90 a share, most on wall street or at least the con sen

us wi consensus was a loss of 19 cents a share. this is their first truly profitable quarter in a number of years this time around it's about the model 3. revenue because of increased production and sales of the model 3 up to 6.$6.82 billion. the expectation was for revenue at $6.33 billion tesla says it has enough money to pay off debt in the fourth quarter. there's no indication that tesla is indicating a capital raise which is one more reason why shares of tesla got a pop after these numbers were reported. if there's no capital raise and if tesla can find a way to sustain this profitability, maybe not quarter after quarter but can grow from here, that's one reason why shares of tesla

have been moving higher after hours. nokia's quarterly operating profits have fallen 27% from a year ago and the firm announced a new cost cutting program the firm is aiming to save 700 million euros by 2020 but has not confirmed how many job losses could result from that. we'll talk to the nokia chief executive about those results at 11:00 a.m. central european time. norwegian air blamed higher fuel prices and currency headwinds for a slight miss in third quarter pretax profit. unit costs are up from a previous guidance. the carrier is under pressure to cap costs as it tries to expand in the transatlantic market. it's seen an 85% increase in fuel costs over the last few months it is not well hedged compared to some major competitors. phillip jansen will become theny ceo the new ceo of bt gro.

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welcome back to "street signs. i'm willem marx. these are some headlines for you. wpp shares plunge after weakness in the u.s. weighs on sales and the ad giant slashes its full-year guidance. a bitter taste for ab inbev. the beermaker drops towards the bottom of the stoxx 600 after it halves its dividend. shares in abb open sharply lower despite a bullish outloo from the industrial firm third quarter revenues just miss expectations and the bears take charge. european equities hit their lowest levels in 18 months tech stocks are among the biggest decliners after the dow, nasdaq and s&p turn negative for the year

let's check in on how the major indices are doing in europe at this stage of the morning's trade. ftse 100 is down 0.25% in germany the dax is up almost 0.10%. in paris the cac 40 up 0.30% in italy, the ftse mib is up a half percent let's check in on the currency markets. we can see the pound is seemingly holding against the dollar it is stronger by 0.10%. similar story for the euro this morning ahead of the ecb numbers. we'll get some decisions from the ecb later today. the dollar is stronger against the yen. a bit of a reverse from last night when we saw the yen as a safe haven was proving popular with traders the dollar relatively flat against the swiss franc. looking at the u.s. markets a ahead of their open, the s&p 500

looking to open up almost 25 points higher. dow jones almost 200 points higher after a pretty significant slide yesterday afternoon. the nasdaq also looking to open higher by more than 110 points now trade tensions have begun to take a toll on the u.s. economy and manufacturers reported higher prices in the beige book. companies hiked prices on finished goods because of higher costs on raw materials the federal reserve fac facface faced frequent criticism from the president. >> i think it's the fed. >> the fed is not listening. effectively that means they're off the mark again >> going back to the fed >> should the fed continue raising rates? >> the fed is doing what the fed said they would do >> with the ecb widely tipped to keep rates on hold today, all eyes will be on the eurozone's

growth outlook analysts expect mario draghi to formalize the end of the asset purchase program earlier than anticipated in a warning with rome over its budget dispute with the eu. annette more good morning >> good morning. today's session will be all about economic risks and whether these risks also will materialize and there will be a change in language for the ecb so there's room for a dovish surprise by mario draghi clearly the risks have not materialized yet but they're growing. just the recent ifo index which came out a half hour ago, it is showing us again that especially manufacturing export oriented businesses are feeling the brunt

from the ongoing trade tensions. expectations are deteriorating substantially. at the same time pmis are a disappointment and also at the same time core inflation was coming in a tad lower than we had expected so this mix is giving room for draghi and his team to be more dovish having said that, though the bank seems quite adamant about the fact that they want to end their qe program at the end of this year, even if the economy is somewhat deteriorating, they want to move on to their forward guidance of interest rates, meaning that this is the new instrument which is crucial for the bank it's not so much about asset purchases. of course another big topic today will be also whether we get more details about the reinvestment program, whether

there will be a change of composition, and also whether they will adopt the new capital key from january onward. so there are plenty of topics and to sum that whole thing up there is room as i said for dovish surprise. so we should watch the euro exchange rate carefully while mario draghi is speaking back to you. >> thank you for that preview. >> i'm joined now by laura cooper from rbc wealth management what are you expecting to hear from the ecb and what do you think that will mean for the euro >> i think for the ecb today it's all about forward guidance. so markets are expecting that we could see details around the reinvestment strategy for how the bank will proceed when they plan to end their purchasing program later this year but really markets are likely to be disappointed from that so it's all about the press conference and mario draghi's comments, specifically around the risk we're seeing in markets

but as well the outlook for inflation. growth, we did see soft economic data come out of the region yesterday. what are his thoughts about that and it will be obvious that he will be asked about italian developments so markets will focus on that. so the downside risks are likely based on the comments coming out from that. >> we saw slightly weaker data yesterday with those pmi numbers coming out weaker than forecast, war weaker than the previous month how worried should euro investors be on the back of that >> what we're seeing in europe is a relatively healthy pace of growth it's slower than last year and the indications from the data yesterday was really that it's likely we're seeing this rise in protectionism affect things.

i think that this is not a risk to the growth outlook for this year, but it points to slowdown in momentum for next year. so we do still expect that the ecb will look through the recent data yesterday and really continue to end their purchasing program later this year and shift forward guidance to reducing -- sorry to increasing rates through the end of next summer >> you said that mario draghi will likely be asked about italy. i will ask you about italy as well do you think the political leaders there, they've been so adamant they won't back down on budget proposals, do you think that will have an impact on the european currency over the next few weeks? >> we have seen the escalation of political frictions coming out of the budget talks around that weigh significantly on the euro i say going forward, because they have three weeks to submit a revised plan, that really we expect near-term challenges there given these frictions.

could see the euro fall below current levels we do expect overall the risks in italy will be contained this is because we're looking at the spread between italian and german ten-year bonds are over 300 basis points, the highest since mid 2013 if we see a further spread widening, that's unsustainable for italian banks. it's the case that we see the incentives for both parties to come to an agreement so we expect the italian risk will fade through the end of the year >> so those challenges leading to a slightly weaker euro but the other side of that trade is the dollar is this on the back of a strengthening dollar >> when we look across our currency outlooks, the main theme continues to be dollar strength so there's a number of factors supporting the u.s. dollar for example, we are seeing the robust economic growth

environment, inflation is at target the labor market is tight. we are seeing wage pressures accelerate so this is teeing up for the federal reserve to raise rates likely in december and through 2019 in our view there is scope for the markets to price in further likes. so this should provide an additional lift to the dollar. in addition to that, given the fact we are seeing this rout in global equity markets what this is doing is prompting capital flows to the u.s. dollar because of perceived safe haven status that's providing an additional layer of support >> laura, don't go anywhere. stay with me live coverage for viewers of today's ecb decision joumanna will walk you through that and any comments on italy's budget from 13:30 central european time. sterling has bounced back from save even-week low.

conservative lawmakers gave theresa may a show of support at a private meeting with one mp saying the prime minister had united the party at least for a night. theresa may has been under pressure in recent weeks for her negotiations strategy on brexit. and her brexit secretary, dominic raab, he's talking inside the house of commons right now. those are live pictures of him addressing a very empty house of commons. he's been saying the risk of a no-deal is only real if the eu engages in an intransigent approach he says planning and preparations are in place to deal with the mitigating risks from a no-deal scenario. he is answering questions there. the british brexit secretary on what's going on with those discussions. laura cooper is still with me. it looks like theresa may is a

little safer in her position as british prime minister it seems like what she said to conservative mps last night seemed to relieve them of some concerns about her leadership through this difficult process does that automatically support the pound in the near-term is this just yet another day, another news cycle, another reaction from the currency >> i think what it tells us is that the currency has been trading off of brexit headlines. we could see market optimism drive higher but a negative catalyst the next day. so this is not changing the overall outlook for the currenc currency >> in terms of the bank of england, does anything that comes from them affect the fu fundament fundamentals >> given the fact we have seen improving economic data there the unemployment rate remains at multi decade lows, wage pressures are ticking higher,

when we look to the bank they're likely to look through the data because it's all about brexit. there's so much heightened uncertainty. given the fact the current guidance of slow and gradual rate increases, that's predicated on a smooth brexit transition so i think markets will look next week for any assessment about the current situation, but i wouldn't expect any change in policy because we don't have that clarity on the brexit front. >> if that uncertainty continues through to the end of the year, if we get to this next leader summit, maybe one in november, certainly one in december, if things are not tied up by then, would you turn around to traders and say stay away? this is too difficult to trade on >> it's a fluid situation. there's a number of potential different scenarios. as the clock continues to tick down to the march 2019 deadline date, the risks of a no-deal outcome potentially materializing, i think markets will price that in we could see further downward pressure on the pound.

i don't expect to see a sharp catalyst lower until we see more negative news or something to rattle the markets i would say that more comes from a potential leadership challenge or a general election. that's the point at which we would see negative currency coming there >> there's a lot to watch for. laura, thank you very much that was laura cooper from rbc wealth management joining me here saudi arabia's crown prince, mohammad bin salman, struck a defiant tone in his first public speech since the murder of journalist jamal khashoggi riyadh has come under intense pressure for its role in the killing. president trump appeared to implicate bin salman saying he's ultimately responsible for the gulf state's actions despite global condemnation, bin salman told the future investment initiative that those responsible for the murder would be brought to justice.

>> translator: the accident that took place is painful to all saudis, it's painful to anyone in the world it's a heinous crime that cannot be justified cooperation between the saudi government and turkey is unique. many are trying to utilize this painful event to create a split from this stage i want to send them a message, you will not be able to achieve there as long as there is a king bin salman >> one of erdogan's advisers says mohammed bin salman has blood on his hands he called the incident a disgrace and said it was improbable that certain members of the saudi hit squad would act without bin salman's knowledge just to bring you more updates from saudi arabia, the energy minister there has been talking the last few moments and says the concern is beginning to rise about an increase in oil inventories. he said he declines to comment

on the expected direction of oil prices he said prices are determined by the market saudi arabia has a significant impact on that market. he says if an increase in oil inventories increases, there will be downward intervention presumably from saudi arabia to try and reach balance. he said all companies that skip the riyadh conference have called in to apologize for their absence. that was talking to saa saudi television station there president trump back in the united states has called for more civility in politics after suspicious packages were sent to addresses of high-profile democrats. >> reporter: president trump in front of supporters in wisconsin after suspicious packages were intercepted intended for prominent democrats and critics

of the president what we cannot do is let our disagreements about matters of policy tear us apart as a country. >> reporter: the president calling for debate and unity >> we want all sides to come together in peace and harmony. >> reporter: on monday a package containing a pipebomb-like device was found at the home of george soros on tuesday a suspicious device was sent to hillary clinton. a day later a package was sent to former president obama. a package was sent to former attorney eric holder two were sent to congresswoman max seen wa maxine waters. another was sent to john brennan at cnn headquarters in new york. >> responding officers identified a device that appeared to be a live explosive device nypd bomb squad responded, secured the device and removed

it for investigation >> reporter: according to the fbi the return address on the packages was former democratic chair debbie wasserman schultz each one of the intended recipients has been targeted by president trump. all of the devices are similar >> it's speculative at this time as to whether they were intended to be able to explode. or whether the intent was just to create fear, which it certainly has. >> reporter: investigators are searching for a suspect and a motive coming up on this program, the u.s. tech sector is in correction territory earnings beats from microsoft and tesla could provide some support as amazon and alphabet prepare to release their results later today. today is the day you're going to get motivated...

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welcome back a look at how u.s. markets closed yesterday the nasdaq taking a beating there. down 4.4% for the day. the dow jones down more than 2.4% the s&p 500 down more than 3%.

if we want to look at what's happened in terms of the tech sector, one of the major drivers of that downward movement, you can see some of those very well known names not performing well in terms of their share prices amazon down 6% facebook down 5.4% netflix down 9.4%. so what does this mean tesla and microsoft, two of the companies that have done relatively well after hours, after the numbers came out, tesla seemingly doing well on the back of that model 3 sales number it's up 9.8% in afterhours trading. microsoft took a bounce up more than 2% after hours. microsoft has beaten estimates for its first quarter on the back of solid performance in its cloud computing services >> microsoft reporting eps of 1.14 on revenue of 29.08

billion. expectations were from 27.9 billion. revenue and productivity and business processes, an increase of 19% to 9.8 billion. commercial revenue saw a growth of 36% in the quarter. revenue in intelligent cloud, an increase there as well and revenue in personal computing, that was an increase. and surface revenue up 14% kirk mccore says commercial cloud revenue jumped 47% to8.5 billion with increasing profitabili profitability. yesterday was the worst day for the nasdaq since 2011. a lot of investors will watch amazon and alphabet.

they both have their results out later today. elizabeth has a bit of a preview. what do investors hope to hear from these two giants. >> these are companies that have beat earnings big in the expectations are high. a few key factors to watch are growth in the within services division, the echo device sales, and grocery sales. on the alphabet front we're looking for revenues of $34 billion, earnings per share of $10.29 one of the biggest things there is advertising and search. the question is if that has been hit at all by some other players increasingly getting in on the search market. youtube consumption is another factor along with growth in the

cloud business amazon and alphabet are competing in the sales of hardware, specifically home devices. google home trying to gain market share on amazon's echo devices. we'll have to see if they have numbers on that. >> elizabeth, thank you for that let's look at how the european market is getting on at this stage the stoxx 600 seemingly not such terrible territory at this point. it's only very, very marginally lower than the flat line coming back quite significantly over the last hour and a half, two hours since the market first opened if we look at the individual sectors behind those numbers, you can see why that is the case the auto americas are seemingly performing relatively strongly today in terms of share price. they're up 1.9%. media still really performing quite poorly on the back of the wpp outlook changes. you can see that sector is down

more than 2.5% healthcare struggling in terms of share price down 1.7% basic resources, construction material, chemicals, technology all up more than 1% across europe looking at some of the big corporates that have reported today, wpp shares plummeted after the company reported a sharp fall in third quarter sales. continued difficulties in north america and the creative agencies weighed on those numbers. ab inbev cut its interim dividend and ubs posted a 32% increase in net profit to 1.2 billion swiss francs we'll speak with the ceo, sergio ermotti at 1:30 p.m. central european time. and also some updates from dominic raab, he's been addressing the house of commons, he's said the british government will not accept a northern

ireland proposal which leaves northern ireland in a separate customs agreement. he said we need a bridge between the end of the transition and the start of a new relationship. please do watch out. we'll have live coverage of the ecb decision, joumanna bercetche will walk you through that from 1:30 p.m. central european time. that is it for today's program i'm willem marx here in london for our u.s. viewers, "worldwide exchange" is up next for our european viewers, stick down for an interview with rajeev suri. better, faster" by daft punk is heard throughout.) (sound of typing) (sound of exhaling) (sound of drilling) jimmy (shouting): james!

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breaking news. futures are in rally mode following yesterday's major wall street selloff it's a sea of red in parts of asia and europe. things a s ars are relatively f. this could be a make or break moment for the markets as we head into the single busiest day of earnings season strap in, pour yourself an extra cup of coffee. this special edition of "worldwide exchange" begins right now.