i'm julianna tatelbaum >> i'm arabile gumede.hese are your headlines >>> bp quarterly profit sinks 760% on the back of energy prices, but boosts dividends with a buyback the ceo explains the reasoning to cnbc. >> because of the confidence the board has and performance of the company, the outlook for the company and importantly, the reduced share count, we also announced we would increase our dividend by 10%. >>> hsbc first half net profit tops $18 billion more than doubling on the year before sending shares to the top of the stoxx 600 ceo noel quinn says they will gain from the performance. >> if all goes to plan this year, we should be above the pre-pandemic level we are paying a flat 10 cents. >>> investors in high spirits as diageo posts a beat in full sales and operating profit the ceo says double digit net sales in beguinness is a driver for the group. >> people love guinness right now. >>> and daimler helps offset pressure with the bullish guidance for the trucking sector we will hear from the ceo martin daum this hour >>>

i'm julianna tatelbaum >> and i'm arabile gumede.hese are your headlines >>> amazon shares pop nearly 9% in extended trade as cost cutting efforts help the giant on the on top and bottom line. that as apple shares sink lower. >>> equity markets in europe shrug off the u.s. credit rating downgrade as they look to close on the upbeat note and investors are looking to the fitch fallout. >>> and a second quarter earnings and buyback plan is dam dampening the rise in profits. the ceo speaks out about the performance. >> the past year is a 1.1 billion euro and you have to stretch low to find similar results. it is more than a decade ago >>> the non-farm payroll reports lose and the u.s. economy forecast adding 200,000 rin jul. >>> welcome to "street signs." apple has posted a mixed bag for the third quarter beating soft wall street expectations on revenue and earnings per share, but reported the third straight quarter of declining sales nearing the longest streak in 20 years. apple fell more than 2% in extended trade putting the $3 trillio

i'm arabile gumede. >> and i'm julianna tatelbaum. these are your headlines. >>> there's a sharp rating downtrade, citing fiscal deterioration, throwing anger from the white house and sending u.s. futures into the red. >>> europe's stoxx 600 falls to a two-week low as markets take an infectious supply move while treasury projects lower for a flight to safety. >>> shares in semins as diagnostics takes a hit in the third quarter. the ceo says he's still confident despite some challenges. >> we saw some headwinds from foreign exchange over the year and we guide for this in the last quarter and because of this, we see very well underway to get to the lower end of the original guidance. >> four charges and six alleged co-con co-conspirators. former president donald trump is indicted for attempting to overturn the 2020 election and conspiracy to defraud the u.s. >>> well, good morning to you. here's the news we've been breaking across the morning. fitch stripping the united states of its aaa reading and down to aa it's over the standard of

i'm arabile gumede joumanna bercetche is at the bank of england to unpack the decision from the boe.hese are the headlines. >>> the u.s. downgrade equities for a second straight day in every sector deep in the red >>> infineon died guidance is bringing down the sector with results from quarlcomm overnigh. >>> and bank of england is looking for a 25-basis point hike or 50 i'll speak with andrew bailey at 4:00 ap.m. >>> and wall street futures are coming down with the results from apple and amazon and investors are looking to see how the performance division is doing. >>> we have been following economic data this morning particularly on the pmi front. earlier on, we had german and french pmi numbers and now eurozone numbers for july. the figure coming out at 48.6. the final composite pmi number for eurozone the flash figure had been 48.9 a slight dip when you look at the services pmi, it is 50.9. it is expansion territory with the flash number at 51 p.1 this is the final pmi number that was flash services at 50.9. the flash at 48.9. very interesting to take a look at the drawdown with

arabile gumede is in the london newsroom with more arabile, good morning. >> good morning, frank it has been a day of big movers. we got news out of europe, particularly from italy. that government has decided to put in a 40% windfall tax on the excess profits made out of the banks which would hurt a lot of the indices. we have seen a pullback in the stocks across europe that has now continued across the board. around .30% down was the stoxx 600. that market is retreat territory. .40% weaker for the ftse 100 which is taking in news from glencore earnings. they are still on the hunt for acquisitions although you find the ebitda has fallen 30% last year that figure is not actually coming through a quick look at sectors here it will be the banks which have, as i said, pointed toward that windfall tax and that is hitting them substantially .30% weaker. and the banks taking on the china story. we have the cpi print from the u.s. as well as numbers from china tomorrow a quick look at the stocks gainers and losers this is packed with the banks as you can see. 8.5% down after the earnings came

futures looking to bounce back this morning let's see if europe is following suit we have arabile gumede in the london newsroom with more. >> good morning, dom you could say we are leading the way. we have seen gains and we hope to blow them along the way to the u.s. market. we are seeing a big gain with cac 40 in france at 1% same with ibex 35 in spain general positivity is flat in the ftse 100 in germany today, we saw siemens divesting in the energy. not doing well on that front managing to see a robust set of earnings despite that, down 5.5% for siemens. luxury front news. capri, owners of versace might get purchased. valued at $1.1 billion that has meant there is movement in the luxury counters this is a big gain lvmh and burberry to the gain. you see the positivity filter through. we are anticipating that number from the u.s. when it comes to inflation and could that lead the way when it comes to how the markets may trade not just today, but hit it off tomorrow dom. >> arabile gumede in london with the latest on the european trade. thank you. >>> speaking of europe, novo nordisk pro

our arabile gumede is live on the streets in london with the latest on the economic story arabile. >>rter: good morning, dom so, indeed, the growth story from the uk is still juice left in the uk economy. 0.5% growth is what we saw for the month of june. it is a lot better than initially anticipated. it was anticipated to be flat for the quarter on quarter basis. it came out at 0.2%. it does mean there is still some spending actually happening across the uk economy. it wasn't driven by the services sector which only inched up 0.2%, but the industrials and manufacturing and production industries manage to get gains more than 1.5% gains across those industries of helping to push up the economy avoiding recession is the factor here the bank of england and imf believe the uk economy will skip recession, but the question is what happens next year in january? fixed mortgage rates are set to expire soon and with rates where they are, some are set to feel the pinch. resilient economy, yes, but one that is going to struggle when it comes to spending for now, the retail sales figures the last t

arabile gumede >>> turning back to wall street. gearing up to kickoff the month to keep the track rolling. data shows for the first 90 years of the dow from 1896 to 1986, august was the best month of the year rising at 1.8% since 1986, the worse falling nearly 1%. for more on whether history may repeat itself, let's bring in mark avallone from potomac investments. >> good morning. >> do you see an august swoon? >> we may. i'm not sure if it is related to the calendar i'm sure it is related to the r run up we had and euphoria not what i like to see as an investor where i want to see fair valuations for what the expected earnings are against reasonable flaginflation back d. the market is disconnected from 2022 and we were worried about rates and it effecting growth and tech that fell on its face. conventional wisdom may be an evenemy here for the investor you need to be curious about the wage reports we're getting of higher wages and question the quality of earnings we're seeing and see going forward. >> you mentioned wages and that

let's see how london is shaping up with arabile gumede in the london newsroom. >> good morning, frankweekend because they are continuing the downward traj trajectory .30% weaker for the ibex in spain. the markets dipping off today as we follow on from earnings news. not much as we follow through toward china as well as the u.s. cpi print. those will be in keen focus. on the earnings front, siemens stating they need to slowdown the amount of innovations they are bringing to market costs have been heavy for the entity and really denting a lot of the bottom line overall, as i said, downward trade on the european markets. following on from the number last week out of the jobs numbers from the united states and now the nikkei going up .20%. the rest of the asia trading picture is negative. more stimulus anticipated from the market as i spoke about earnings, early this morning, we saw saudi aramco post 40% plunge in second quarter net profit with lower oil prices and thinner refining margining coming into play for this one we are seeing that dip off in wti as well as brent crude oil impacte

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we're going to take a look now at business news, and for that let's bring in cnbc's arabile gumede whorom london. good morning, arabile. stock futures are down as investors look ahead to economic data this morning. we're seeing a lot of red on the board. what are economists anticipating? >> yeah, it's a down day, right? and really as we head towards that economic data set to come out well on friday, that's the job numbers then that wail be quite crit wrl, around 200,000 on jobs anticipated to have been created in the u.s. economy. we also have adp or private employment numbers anticipated in our data tad. that is also a key focus point plus of course all the earnings in key focus. yesterday we had uber put out some of their numbers. you can tell things are doing very well. 58% of s&p 500 companies have reported their earnings thus far. 82% of those who have reported have beaten estimates by those that have put forth how things would fair. clearly a much broader and better financial stance thus far and the market can continue that momentum, it is going to be quite significant to see fro

president trump in just a minute, but now some business news, and for that let's bring in cnbc's arabile gumedeondon. arabile, good morning. investors look ahead to some earnings results from home depot. july retail sales data also due out today. give us the sense how the market is looking in these early hours. >> yeah, so the market is pretty much flat at this point mainly unchanged, really just trying to figure out exactly where to go from here. you pointed out to that set of earnings which will be quite important, and home depot in particular is going to be quite important because post-pandemic we didn't see as many people look to actually fix up a lot of houses as well so the cost around that may have dropped off quite considerably, so you are finding perhaps home depot might become a big market mover in this trading picture, so that is actually quite interesting to really note as well. we are looking at that retail sales number as you've spoken about. the big question mark as well the remainder of the week we still have wal-mart as well as target set to release their set of earnings and al

it's time now for business, and for that let's bring in cnbc's arabile gumede who joins us live from e just showed it -- down this morning, a lot of red as investors await a flood of corporate earnings reports. what should we be looking out for? >> yeah, so actually it's very interesting that the corporate earnings report were the ones to really look out for. below the flat line is where we're pretty much sitting across the board having seen july been very good for the market. big upticks in terms of trades. actually 15 out of 16 the last 16 trading days have been on the up for the dow jones. that tells you a good picture how much gains have been. there is that earnings news that has been the focus. amd, uber, all out today. even starbucks will be a certain feature across the day's trading. merck as well as pfizer expected to put out their earnings. it all does lead to that economic data point we're anticipating out on friday. that is going to be the payrolls numbers, and that data will kind of give a clearer sense then for the fed is the economy still floating along as it always has

time now for business, and for that let's bring in cnbc's arabile gumede who joins us as always live ing. stock futures are a little changed this morning following a pretty real sell-off for major averages. what's your sense for what we can expect today? >> yeah, so it really is that negative tilt then into this market picture that perhaps has filtered through from yesterday. yesterday you are seeing somewhat of a recovery coming through in some of this market picture, but really yesterday's fall off across the board both the s&p and dow jones slipping 1% each on the back of banking news there. that has been quite significant to look at and also see we're going to look ahead then to the inflation figures out on wednesday. so the markets will be keenly anticipating that, plus you've still got a bunch of earnings news coming to the fore later today. anticipating to see the earnings out of disney. disney itself is actually going through quite a few issues and having sort of payment investment into something called espn vet. so they're putting out some money there, and they're buying the

and for that let's bring in cnbc's arabile gumede who joins us live from london.e three major indexes remain on pace as losses draw to a close this yesterday despite the gains. what's the early sense of today? >> yes, so we actually look like we might be closing out the month with some real potential gains, right? but you're quite right for the month we're actually pretty much down, but it has been three days of positive numbers. in fact, the s&p 500 before the start of this week actually hadn't recorded back-to-back gains since the end of last month. now finally doing so, even yesterday gaining 1.5%, the highest gain since at least june this year. clearly positivity coming through there. 1% higher for the nasdaq as well yesterday, so clearly tech heavy stocks able to get some gains in the likes of apple, meta, and tesla all managing some good numbers. even nvidia taking positive numbers even though that was anticipated to happen last week on the back of earnings. that didn't happen. so here we are today getting some positivity coming through. the dow only managed

time now for business and for that let's bring in cnbc's arabile gumede who joins us live from londonase preview it for us. >> yeah, good morning, john. hope you had a good weekend. it is going to be a week where we're anticipating the markets perhaps will struggle for a little bit of the negative sentiment that has been flowing through the market for most of august so far. that is the anticipation. that's why you will see there is a bit of bright spots coming through in the numbers right now on the futures board, that's the anticipation anyway. on the earnings front we are seeing some of the retailers being of keen focus, the likes of walmart, target, set to bring up their earnings as well this week. you also have july retail sales set to also be released tomorrow. so a lot of data that really will showcase the sense of how the consumer is doing as well to the u.s. that will be very significant of course for the fed who of course will be looking at that data to see the strength of the economy and the strength of the consumer as they continue their hiking cycle, which may go on pause

let's check out overseas with arabile gumede in lundondon and sherry in asia arabile, is it red to start the day? >> two hours after the opening bell here and down we go pressure seen from s&p 500 in trade in the u.s. and that trade followed to the european picture. 1.5% down for the ftse 100 same for the ftse mib in india it had been the story of chips much like qualcomm, infineon has brought out numbers and saying that demand outlook is not looking too good for the business they he ave gone down. that share price down 10% today. another european chipmaker going down 3% for ami. the sentiment held the same then negative across the board. a lot of sectors holding down negative counters. tech stock leading the downturn. that is followed by autos and resources which are around 1.5% weaker today even the banking stocks which bucked the trend in the early morning trade. it is negative it is still earnings that we are following and that bank of england decision later today 25-basis point hike anticipated, but 50 basis is still in play. dom. >> arabile, thank you for the update turning to the

arabile gumede is here with more on what to watch. >> good morning, frank. four themes to look out for here. the increase in trade and de-dollarization. expansion of the brics nation is the third and final one is funding. will that continue for the nations? trade has been significant to note ever since the term brics was coined in 2010. you see an increase in trade with africa as the emerging market to look at here and really what is happening over that time is the u.s. has dipped off with regards to how much it invests in africa while china has gone higher. in fact, of the united states foreign trade, this makes up 1%. africa is 1% of the u.s. foreign trade. for china, that makes up 5% of the foreign trade. that tells you the significance and importance for that nation. if we take a look at the expansion picture which now means it will be a bit more of a rear guard action for the brics nations. this is significant. if they will maintain a sense of power to show their alliance means something and gathering more to create a brics plus is significant. saweudi

and for that let's bring in the man in black, cnbc's arabile gumede, who joins us live from london. ile, good morning. we've got some new job numbers that are due out this morning. what are expectations? >> yeah, so we're actually anticipating to see around 200,000 jobs being added to the u.s. economy. that's the expectation according to economists that have been polled. and any figure lower than that does show a slowing in the u.s. economy. let's remember previously in the month of june we saw 209,000 jobs being created. the adp, or private employment number that were added to the economy, there are 324,000, still very robust, but still not giving the same figures we had before, around 400,000. so they're showing there is a cooling of the u.s. economy, but it doesn't necessarily scream or signal there will be a recession. so it's gnat soft landing that we keep speaking about, that things will come down when it comes to inflation, when it comes to job market but it's not necessarily reaching the depths of a recession, and that will certainly bode very well for the fed, and they will

for that let's bring in cnbc's arabile gumede live from london. arabile, good morning.reak. it's been a pretty bad month for the averages. what can we expect today? >> the market seems to be looking for some sense of positivity. fed chair jerome powell anticipated as well to speak later this week, and that will give key identifies where to from here for interest rates. that is quite significant for a lot of investors. consumer retail giants lows as well as macy's set to report their quarterly numbers. nvidia's earnings set to come out tomorrow. that stock price went up around 8% yesterday making it one of the largest tech gainers overall, so key factors to really look out for the remainder of the week. >> mortgage rates have just hit their highest point in more than 20 years. what does that mean for home buyers? >> yeah, so, unfortunately, means things have gotten three times more expensive in under three years to be honest when it comes to those interest rates. so the 30-year mortgage rate has actually gone up to around 7.48% as of monday. just a quick reminder that ve

time now for business, and for that let's bring in cnbc's arabile gumede who joins us live from londonring up for more economic data today including weekly jobless claims. we just saw the red on the board. what's the sense of how the day's going to go? >> yeah, so it looks like another day of negativity, right? it's day two of that fitcheraltying downgrade which has unfortunately brought negative income sentiment into this picture. but overall there's been earnings news. qualcomm pointing to weaker demand for their chips there, which has unfortunately upset quite a few stocks in the market. nvidia taking a hit and amd taking a hit. this morning out in europe their results coming out and pointing toward demand as well as the smart phone chip market not necessarily coming online. so that has hampered a few of the chip stocks. that's why you even saw the likes of the nasdaq drop more than 2% yesterday. then losing out in 47 sessions of not losing more than 1% of gains there. so a clearly negative picture anticipated across today as well. >> so continues the earning season and nin tendy co

. >> we're very happy to have arabile gumede with us once again.e broke down the brics nations and how far we've come. what was achieved if anything from the first day of the summit yesterday? >> if anything, you could tell there was actually a bigger split between the nations actually and they don't have one clear goal of what they're trying to achieve, and that is a key problemlet since inception in 2009 of br brics in 2010, they've not acheeshed one distinctive goal. they had the likes of da silva saying they would love to have people like argentina into the brics fold. that would be beneficial for them. on the one hand, they say don't do it too quickly because, one, we want to organize ourselves, and we don't aim to compete with the western institutions like g7, g20, or the western united states. if you expand too quickly, you could influence the remaining parties in the brics fold. you have that conversation happening. on the other side you have russia and china saying in order to increase their friendship, they would like to have more members

. >>> time now for business, and for that let's bring in cnbc's arabile gumede who joins us live fromdices finished yesterday's session in the green. good news there. how's wall street looking in the early morning hours today? >> yeah, so the eager anticipation really coming out of the market, out of the u.s. there is a sense of negativity, though, filtering through some of the market space, and really it is after of course we saw those job numbers were headed towards the cpi print out of the united states on friday. so there's eager anticipation to see what exactly is going to happen when it comes to those data points. of course we still looking for earnings news, and that is still trickling through for the most part even though a lot of the bulk of that work has been put through already. you are seeing a lot of negativity filter through this market for now. for the time being we're anticipating that to continue for some parts of this week. >> shares of tesla down after an unexpected resignation. tell us what happened? >> yeah, it's actually the cfo then who decided to resign. if i a

for that let's bring in cnbc's arabile gumede live from london. good morning, my friend.er price index report. that's due out later this morning. what are economists predicting? >> yeah, good morning, ali. look, one thing's for sure is the anticipation is just about inflation perhaps moderating somewhat. i mean we've seen inflation just about a summer ago, right? 9.1%. it's dropped off considerably to 3% then. but it could go back up a little bit to 3.3%. the expectation here, then, from some of the economists we've spoken to particularly at goldman sachs is even if it comes out at that figure it's not going to be too troublesome for the market because the anticipation was it wasn't going to drop off too much for the month of june so this was somewhat of a moderation. 3.3% is the anticipation. 4.4% when it comes to core cpi. markets not necessarily roiled up too much about it. the fed may think there's no need then to hike interest rates further. although a 25 basis point hike is still on the table. >> meanwhile, corporate earnings season continued yesterday with disney p

let's get to arabile gumede in london with more >> it is the decision which is due later on which touchedket red it takes sentiment from fitch with the u.s. government debt, but the picture from the bank of england is significant and key we had tech earnings come out today with infineon here in europe pointing down infineon saying demand for its chips are said to be weaker. iphone or smartphone market is not necessarily up to scratch. they will get some suffering and huawei with the ban from the united states with their chips which is a downfall. 10% down on infineon overall although there is a bit of a pullback, the ftse 100 in the uk and ftse mib in italy was down 1.5% this is what with the yields picture is looking like ahead of the bank of england decision the 10-year managed to gain 1 basis pointis currently sitting8 on the lower end of the scale, we are seeing a little bit of pullback five-year is managing to go down four basis points. the 2-year gilt is 4.193 the bank of england is all but certain to deliver the 14th straight hike taking rates to the highest level since 2008 the qu