but looking at nomura, for example, that was a shocking set of first-quarter numbers, and they're not the only ones that have had troubles coming into the start of the year. a few other and smaller brokers that had a domestic focus, they also came

nomura fell by the most since 2016 after net income tumbled to $47 million. brokerage lost $47 million outside of japan, two years after returning to its national profit. revenues fell across the board. business at home also suffered from trade war jitters. >> we cannot say yet how the u.s.-china trade war will turn out, however the renegotiation s remain and auto tariff central things, and will cause and will l themes, cause turbulence to come. haidi: amazon seeing first quarter operating income up to $2.4 billion, igniting investor optimism about cloud computing. amazon is happy with growth in its mainline retail operation. >> we are pleased with growth. we think it is driven by the prime program, the engagement of prime customers, as well as increased selection, particularly third-party selection. haidi: we're counting down to the open of markets in hong kong and mainland china. rish is taking a look at how things are shaping up, or shaping down i suppose. rishaad: shaping flat. stocks,at some of these which have been the driver of the last year -- i am ta

nomura has really been hit and all areas.couple of positives, they succeeded in cutting into it. decent banking business advising on big deals. overall impression very negative, and they are going to need to take action to do something about this. yvonne: they're also losing money abroad. what's the situation when it comes to foreign operation? gareth: i think they lost money in all regions this time around. managed their achilles heel. it's not that they haven't been trying. nomura cut a lot of jobs in london and in america just in the last couple of months. they been trying to control things. when nomura was asked about job cuts, he basically refused to answer the question and said they are constantly hiring and firing and trying to make adjustments to turn around. particularly, europe was bad again and they are going to have to do something about that. they said all the executives are looking at the sense of crisis and the exact words were, they are aware of the issues but it doesn't seem like they are looking likely to tu

that is where the market will focus within the nomura numbers.age commission is lower as well. that is the performance down 16% on the year. it is in case you have not guessed it, it is a big day for earnings very at and with that in mind we have the equinortion, the conversation. like, itt is going to with thatmfortable share buyback. my favorite line is from some of the analysts who said cash flow paradise for shell. it is a start, the share buyback. cash flow paradise should last till 2021 according to macquarrie. just broke their full-year numbers, let me get those for you. this is what they have got. they are at 19 a share buyback as well. with -- in that respect. share buyback, i can tell you that starts on july 26. full-year net sales meets estimates. 12.16 billion, the estimate was for 1211. that is it. juliette saly, good morning, how is your first word? shares havecebook slumped after trading, reporting sales that fell short of analyst rejections and told wall street the numbers will not get better this year. >> this is a critical year

twitter was initiatedh a reduced rating in new coverage at nomura.lyst expects the social media company to report earnings below expectations next year. the price target $31 and that stock rose a fraction to $43.87. >> still ahead,ak we will you to the place where the blockbuster deals are born. ♪ >>> it was a nato summit like no other. president trump today had some tough words for some of our closesll aies and it all comes down to money. eamon javers is in brussels with us tonight. ♪ ♪ >> most nato summits are a series of meet and greets with everyone in the military alliance signaling to the world that the countries are friendly, united and ready to fight to he defend each otr if necessary, but that message of hmony was shattered this morning in brussels as president trump had breakfast withnato's secretary-general stultenberg, and dished out some harsh criticism of germany. >> if you look at it, germany is a captive of russia because they got rid of their coal plants, they got rid of their nuclear and they're getting so much of their oil and gas

the picture you can see is of the classical actor and director mansai nomura, who has been appointedand closing ceremonies. he has promised shows full of "wit" and "japaneseness". it is only a matter of months before the us mid—term elections. this is live in camper florida. —— tampa. earlier today i also spent time with one of your governors, one of our nations truly great leaders, rick scott. donald trump addressing the crowd, he will be speaking what about the economy, he will also be addressing a number of issues are unlikely to maybe speak directly about stories we have been covering, including facebook and its revelations that it has announced much of its advertising and up to iooo much of its advertising and up to 1000 facebook post, they believe, have been endorsing donald trump wrongly and perhaps even illegally, for the us mid—term elections. allegations that have not been refuted, confirmed or denied by the white house and donald trump himself. the trial has begun today of the former campaign manager for donald trump, all mannerfought, that will also be a real test for rob

nomura ice. -- no more ice. >> hi. my name is john.about the expense of japanese americans and how what is happening today reflects so much of what happened to us during world war ii. 1942e morning of april 28, , as my family prepared to board the buses that would take us to one of the 10 concentration -- thankthis country you. i was literally taken from my mother's arms and separated from my family. thatircumstances of incident was world war ii, when president franklin roosevelt signed an executive order which allow the army to remove and incarcerate the entire japanese-american population. evidencete any lack of of any wrongdoing by any person of japanese ancestry, the government stated we are a threat to the security of the united states and the we were a danger to every american. >> shame, shame. i spent a lifetime trying to understand how i as a two and half year old boy was such a threat to the security of this nation. the circumstances were different than, but we hear the echoes of that moment in history through 70 years. we hea

with the nomura do. , i turn it over to -- with no more a do i turn it over to matt. >> thanks, jason. my charge is talk about the federal policy landscape. i think the opening presentation on the prior -- in the prior conversation gave a good overview of the major issues. i want to go deeper on an analytic issue unrelated to one of these and flag another issue that i think is flying below the radar. my first point is about the impending disappearance of the individual mandate. i think there is a correct view that the disappearance of the individual mandate in 2019 is not going to be the end of the individual market. the presence of subsidies means that the market will stabilize at premiums that are somewhat higher, and enrollment that is meaningful lower. the market will find a new equilibrium. what i think is important to keep in mind is that does not mean that the repeal of the individual mandate is not a quite important event. i did some research several weeks ago looking at the sharp decline in the uninsured rate that we sought among people with -- that we saw among people with i

nomura in tokyo, falling the most since after the u.s. election in 2016.p in first-quarter net income. singapore, singapore airlines also under pressure. its profits due to some of its hedging on fuel. mark: thanks. up going to bring reckitt benckiser. big news. revenue growth for 2018 will be at the upper end of its 3% range. it makes a number of products, lysol, all sorts of products i used to clean my house. that is the share price in the last year. brexit at the open. the european union has rejected a key proposal for a trade deal with the bloc's chief negotiator. he says he will never allow a nonmember to collect tariffs. 12 weeks minister has until a divorce deal is meant to be signed. joining us now is the head of market analysis. what do you make of the news theresa may will take control of brexit negotiations? brush-off, this another one, from michelle on theresa may's grand brexit plan. its leaves are in the same place she was in the middle of last year. if you look at all the material successes she has had in negotiations, it has come as a resul

thursday, you've got nomura, you got shell, another big tech company reporting.r coming out, as well as exxon mobil. just a couple of minutes, we're going to look to some of those earnings. let's get first word news with sebastian. sebastian: trade tensions threaten global growth. finance ministers and bankers said in a statement, global growth remains robust and many emerging market countries are better prepared for financial crises. but risks have increased. u.s. treasuries move to curb counterpoints. >> this was a very productive set of meetings and again, i think munich case are important to look at the messages we are trying to send but don't overanalyze one sentence and be concerned. we understand what the trade issues are and we are trying to productively deal with them sebastian: jeremy hunt is heading to berlin to one them. that comes a day after the chief brexit negotiator said the government must step up plans that the eu collapse. donald trump lashed out on twitter at the president of iran, saying to president rouhani, never threatened the united stat

company issuing weak third quarter client, and it's setting a fresh all-time high and earlier today, nomuraects shares to be under pressure on the back of today's prints melissa? >> thank you >> mastercard and visa >> it's changed for a decade now and we've all been right on this the problem now with both these names and mastercard and visa, it comes down to valuation both are trading somewhere between 20 and 29 times forward earnings and they've grown into their valuation and that's been true and their operating margins continue to be ridiculous in the form of 66.5%. here's what would concern me, though what does amazon do? they look across the landscape and say who has ridiculous operating margins? look at visa and mastercard. where can we disrupt you have to be concerned at some point if a company like amazon would say why do we get into this i'm not saying it will happen tomorrow, but when you have operating margins like that you have a bull's-eye on your back valuation has to be a concerned. >> you have to be more concerned about paypal because think about it, they have 100 million pri

nomura raising it to a buy. the stock has risen sharply today. according to bell potter here in sydney, it will be the next generation paypal. they they it has potential to be one of australia's best stocks. $14.27. anna: thank you very much. juliette saly in sydney. breaking news from the tech sector. japanese, chinese investments. softbank's vision fund is seeking to invest almost $1 billion in china's sense time as it seeks a stake in the world's most valuable artificial intelligence startup. people familiar coming bloomberg about this. softbank and its vision fund, which has been active globally, making this move into artificial intelligence. we will keep an eye on that. let's talk about the geopolitics. donald trump criticized the federal reserve interest rate increases, breaking with more than two decades of tradition of avoiding comments and respecting the independence of the central bank. the president said he's not thrilled. there have been five hikes since he took office. trump extended an invitation for a second summit with russian pre

foras upgraded by nomura smart phones like the iphone seeing recovery in the second half.roviding a boost to other suppliers, like sunny optical, down .3%. .8%.p rishaad: banks are being offered just does not expect an outright monetary easing. grace wu, what is going on here? why are chinese banks being offered cash and instructed to lend more? >> with the ongoing regulatory tightening and clamp down on shadow activities since the beginning of 2017, that has put pressure on interbank liquidity conditions, and arguably it has been the smaller, weaker banks suffering the most in terms of higher interbank funding costs. we have seen three rrr reductions this year. ofsee this as a means alleviating that funding cost pressure for banks, not necessarily a clear sign of monetary loosening, given that the authorities seem to put a buys towards macro prudential policies as part of china's deleveraging campaign. rishaad: is this a good move or a bad move? >> from a credit agency standpoint, any broad-based stimulus that adds to debt leverage and buildup in economic imbalances would

kathleen: richard koo is chief economist at nomura research institute here in tokyo.he -- his book speaks directly to the kind of issues that central banks are trying to solve, and tells us whether or not succeeded. richard, welcome to the show. >> thank you. kathleen: we are actually showing you a picture of the book right now, it is a fascinating book. let us start with the boj, what they did yesterday, and what it means. then we can go into your basic thesis of why it not going to work. add someried to flexibility to its policies, this massive quantitative easing, negative interest rates. from theve been saying very beginning, before the boj even started this policy, that it has no reason to work. it has no reason to work because , for the kind of monetary policy to work, there have to be borrowers. and there are no borrowers, you bring rates down, nothing happens. but all the economics we have learned in universities, we assume that borrowers are always there. would always assumed that the private sector is maximizing profits. that is basically how the boj started

nomura has a forecast of flat prices this year. 20% -- 10% to 20% decline by the end of this decade. french current tudor -- computer services company atos has agreed to a deal in cash, giving them access to american customers including american express and state street. it is 4.8% more than cintel's friday closing price. shares already doubled in the last year. david: another company that will be very much in focus, chrysler naming a new ceo with the health of long-term ceo sergio marchionne suddenly worsening. mike manley, tested his first week, with earnings out on wednesday and investors wanting to hear his plans. ouring us on set, automobile industry analyst steve mann. is he the right choice? has big shoes to fill. sergio, obviously an icon of the auto industry. unfortunate what has happened. sergio, under his leadership, has basically turned around this humongous company over the past years. obviously in the u.s., dodge and jeep are doing really well. it's about 40% of chrysler's sales now, fiat chrysler sales in the u.s., j

but looking at nomura, for example, that was a shocking set of first-quarter numbers, and they're nothave had troubles coming into the start of the year. a few other and smaller brokers that had a domestic focus, they also came out with fairly poor numbers. financialsg at the and looking at the brokers. i'd think it is probably a little bit difficult, particularly facing uphill challenges. the fact that we have the backdrop of a global trade war with revenues from emerging markets and investment banking declining. we've got the fact that retail investors in general in japan are very much sitting on the sidelines, with everything that's going on. you need to look at the performance of the mothers market in japan, which is a smaller cap market, and see its growth underperformance, 14% versus the topix -- versus the nikkei, which is flat. that's a real sign that they are staying away. this is definitely starting to hurt the brokers' profits. we've got the likes of dollar coming out, and i would think -- they are in a similar position, so i would think they could potentially surprise to t