carillion up 1.3%.er, the german builder which is trying to become a services player, we had two profit warnings in two months. clearly any news is good news. their earnings weren't as bad as expected. executive is said to be leaving as well. overall, this is a company that month to date, already off by some 12%. today, a bit of reprieve. we are seeing the german builder climbing some 4%. >> thanks very much, caroline. afterstocks are higher china's consumer inflation came in below the government goal in july. alsory inflation persisted. data suggested that communist party leaders still have leeway to roll out more stimulus measures. more happy talk. south africa's central bank stepped in with a rescue plan. investment. under the plan, the company has to raise $930 million in capital. ae emergency support ends week in which african banks lost most of their market value and came just days after the portuguese government stepped in. the ukrainian government is rejecting a cease-fire offer from pro-russian

another bit from carillion or will carillion a try to approach holders directly to make a move?on. i'm sure they will be very busy today. hopefully, they will be talking to each other. i still firmly believe it would make sense, in the absence of any other bid, for this to go-ahead. >> is anyone else likely to make a bed? -- a bid? >> any other bidders have had plenty of time to show faces and we have not seen them yet. >> thank you so much for joining us. othermove on to some company news. standard charter agreed to pay $300 million for savings -- to pay for suspicious transactions. according to a statement from the u.s. regulators, the bank potentially high-risk transactions because of faulty anti-money-laundering controls. glencore has announced a share buyback of up to $1 billion over the next six months. they also announced it adjusted profits that beat analyst estimates. and improving the performance of players as part of a three-year deal. it is a matchup of germany's biggest technology company and the team. software to help players will be a particular focus. we will tak

balfour spurns carillion's attempts to revive merger talks. very warm welcome to "the pulse" live from london. i am manus cranny. , lots up, lights, camera and lots of action. what does it take to make a stunt performer? we take you behind the scenes. plus, putting the best faces forward. the new facial recognition software. turkey's prime minister has won the country's first direct presidential election. the former mayor of istanbul extends his leadership through 2019 as he seems to build a new turkey. our international correspondent, hans nichols, has been in istanbul. this is everything that erdogan wanted, isn't it? >> it is everything he wanted. the question is, how does he consolidate the power? how does he transform a veryonial office into a powerful and authoritative one? this morning, the leading business group has called on erdogan to stop polarizing the country. they say it is holding back economic growth. this is very controversial, what he is doing. he is taking a parliamentary democracy and turning it more into a presidential sty

carillion makel up this asset? the sweetened deal is not that much sweeter.l it is that much up on the previous two offers. >> just a reminder why we care so much about these two bellwethers. they have done incredible things. >> they are centuries old. if we look at what they have done, you get off the tube. they rebuilt bank station during the war. channelnel, all -- tunnel. carillion had a stake in channel tunnel. theingham callis -- palace, queen. these are companies that have achieved a lot. no chief executive at the moment. a string of half it warnings ever since they did not manage to navigate the financial crisis. billitonday, bhp announced -- it is going to start a share buyback. that already separate dates -- separates it. shares foul. let's get to the earnings. beat estimates. estimating $1.93 billion. as well. what are companies doing? greater demanding returns. that is where we are seeing the buyback. why are they doing this? billion --ver $600 is about time for you to downsize, cut costs. return some of the excess catch -- cash. what it does.y pr

we talked about balfour beating carillion. two big banks.maintain the inclusion of those particular stocks. news for the russian lenders, stocks are up by over 3%. a stronger krone, why? cpi comes in higher than anticipated. >> matt campbell joins me now. this is the second time that balfour has rejected carillion . return the funds to the shareholders. what has gone wrong? karelian -- carillion came .ack to balfour -- >> why is it so important? is it a trance formation of a part of the business? >> it was seen a bit of a crown jewel. there was some surprise when balfour decided to sell it. thestate was that acquisition was not working out. a -- betweene is the two companies. the road to organic growth can be long and not always smooth. the door is closed? >> i did not think it is totally closed. are making an effort to make the door slightly open. it does mean they are trying to signal the market that this could still happen. hostile deals are not the hallmark of british m&a. >> i do not think it is a cultural thing. if you look back at the

. -- carillion rebuffed again by balfour beatty. the proposed merger is too risky for balfour. deadlinep or shut up looms. i've :00 p.m. on friday. an agreement is unlikely before then. jon. >> thanks, caroline. i will be live from germany. 19 nobel prize winners right here today. i get the privilege to speaking to two of them. we will be talking about unemployment and any quality. in the context of monetary policy, what can the federal reserve do about the situation in the labor market right now? is loose monetary policymaking that worse? stay tuned. >> that is what we are watching today here on the move. european markets have opened lower. stoxxeins for the euro 50, the ftse, the dax and the cac 40. let's check in with manus at the touchscreen. >> we are going to see a little bit of a drop. losingflicking around, about an eighth of a value. where weh more about are in terms of reports. carlsberg cutting their outlook. heineken, things are going well. it is about the bank of england, the federal reserve. go into the u.k. and have a look. diageo coming lower on the first trade.

go straight to paris where carillion the --caroline joins us. you also spoke to minister cabinete about france reshuffle. what did he have to say? his visit has been planned for a very long time. he did not expect it to be so much in the spotlight in the middle of this crazy week for france with the resignation of the government, reshuffling, and the whole rebellion of policy. the german finance minister told me he was not happy at all about the comments from the former economic minister who called the austerity policies in europe absurd and dogmatic. he said the new economy minister pro business, politician and the competitiveness which wolfgang schaeuble says was the main problem with france. >> we are fine with it. i have met my french colleague who used to be prime minister and he will continue. economic think french policy is going in the right direction? we agree that every member state needs to do this and to be very frank, we were not doing this when the former minister of economy has been happy that it has not been agreed upon by the pr

carillion taking a hit after their proposal remains unchanged and balfour beatty rejects their second offer. lufthansa investors cheer speculation germany could withdraw air surcharge. >>> we've been focusing a lot of our attention to the last couple of sessions with these yields moving ever lower. we saw a risk off trade and lots of people filing back into the bund. for example, the yield dropping below 1% for the first time ever. ten-year italian pushing lower and the yield in spain shy of 2.5%. the fx rates, the currency markets. what we're seeing here, the euro/dollar, very flat. shy of 1.34 as we've seen for the past couple of sessions. the aussie/dollar, 0.9325. according to a number of reports, up to 23 personal carriers crossed the border. officials from the red cross there currently in kiev to try and negotiate its passage into the country. u.s. state department spokes woman maria hart has reiterated that russia cannot act unilateral unilaterally. >> russia has no right to send any cargo into ukraine without the government's explicit permission. i said that before. the ukrain

balfour, they've rejected a third merger proposal from construction group carillion but says it's open to other strategic opportunities. it's a put up or shut up deadline. there's your act ra anymore for the day. >>> let's take a look at these european indices. a very strong day on monday. we had an okay day on tuesday. wednesday, we clearly run out of steam, but there doesn't seem to be a lot of impetus to the downside. participant research mode. the volume, as one said, was pathetic. there's not a lot of buying going on on the uptick over the last couple of days. they weren't gray stateside, either. we'll see it later in the show. talk about the u.s. instance, some of the volume that is occurring is panicky shorting progress. put on short positions and are now having to cover that 37 the ftse 100 is now having to be a complete and upper laggard. is that because it has the basic resources and that exposure to china and that problem about overcapacity, i'll leave that one with you. the xetra dax, of course, which has a disproportionate exposure to what's going on in russia. down 0.3%.

carillion says it is confident on the new approach which would pay shareholders an additional cash dividend of 8.5 pence a share. rwe's first half operating profit plummeted by 40%, hit by lower power prices and competition from renewable energy sources, as i just mentioned. germany's largest power producer blaming weak economic growth for depressing demand. balfour beatty up by 1.9% and rwe down by 2.8%. take a look at the share price performance for novozymes, off by 5.2%. the danish firm now sees profit growth of 9% to 11%. earlier on "squawk box," just spoke to the ceo of the company and asked for his views on today's gdp numbers. >> well, it's all about the innovation that we can supply to our customers. so the underlying gdp growth doesn't have a phenomenal impact in our business. it's our ability to innovate with our customers that drives the business. >> let's show you what's happening on the bond markets on the back of the disappointing gdp numbers. 1.007% is what we're seeing here. incredible number, isn't it? the french yield is at 1.39%. analysts see another record low for the t