up next, socgen sounding the alarm on russia. when we come back. ♪ >> our new expectation is zero growth they're big it a flat situation in russian economy. since we have an impact on the credit origination and probably also on the cost of risk. of socgenuty ceo speaking to us today about the impact of the russian standoff. socgen is the latest european firm to post second-quarter results. the earnings season has been overshadowed by litigation costs , sanctions, the list just goes on and on. let's talk to christopher wheeler, a banking analyst. you say in your notes that you have been brave to run an investment bank. the litigation story is followed by the sanction story. it just goes on and on. brave doesn't even do it. to point oute has that most of these banks are going through changes. restructuring within their broader in business or investment bank. they are doing good work in many cases. just when you think you are out of the melee, you are hit by another issue. it is difficult for investors to make assessments of what th

socgen posted profits just shy of 8%. as you mentioned, the russian operations, the french bank says it will remain committed to the country, to russia, and it will comply with international sanctions. i caught up with the ceo of the bank for the equity to discuss its exposure to the russian markets. >> in russia, you see an increase of tensions. we continue to take advantage of the development of this market. we are adapting to the current second chances. we had a positive contribution of russia, second quarter. we had good revenues, decrease risk. we are going to, again, comply with the rules, with the sanctions. we are going to adapt with the new deals, the new transactions. but we think we can adapt in this activity fundamentally in the long-term, take advantage of our presence in russia. >> the potential impact of the russian sanction from your business? >> it's a bit premature. overall, let me say it is probably, again, less infrastructure projects, probably, again, a slowdown in the economy. but, again, we think th

they were able to refinance recently with international financial institutions, socgen, ing, deutschek providing them with new loans. >> this was a big debate. a couple of keepers ran stories on this because of the sanctions and the issues in association with various russian [indiscernible] az has not been affected by sanctions. both bigof others, business, they have not been sanctioned. the will not expand into rabidly held steel sector. certainly citigroup has been saying. seven overdone so a company that is able to cut debt is looking has plantsit already in south america and north america. it keeps looking to grow so the biggest area is steel. they are begin mining as well. >> you will come back with more later on for the market open and you will get the best insight on those results in addition. it is the ceo who will join "the pulse" later today. up 16% and amortization up by 29%. hasend profit is up and it announced a special dividend of top of its first ever interim dividend before this year. the company had 44 branches in london. it has opened five and has 49. to more through

socgen says month end is going to be quite revealing.rsus reserve managers who'll get the upper hand there. we have german c.p.i. watch that one carefully. talian retail sales. of this put together kind of what is the end of the month going to look like? how much flow will there be? will there be a lack of flow? it is going to be interesting coming into the month. remember, it is august. people are still on holiday. that is really going to have an impact as well. it all comes into the story we're going to talk about now. the conversation surrounding the french political crisis. hollande will name a new cabinet today. the second reshuffle in six onths. in terms of france's economy, how significant is today? well, i mean, what is impacting the market, first of all. it should be better for the market and slightly better -- >> what does better mean? you buy it and -- >> lower yields. >> the yields get even lower? >> exactly. a lot of the yield is driven by what mario draghi says. the impact of what happened yesterday was probably a couple of

. >> socgen nadella has come in with a very different management style and different outlook on thingsd. you don't have the bombastic running around just a condition that you had under ballmer. different executive and yes to a different agenda -- he has to have a different agenda. one of the ideas is mobile first, not just selling phones for the sake of selling phones, like you had it -- like you had at nokia. that microsofts knows had to do well, which is change the way you do business. >> a few months ago i along with millions of other teenagers decided not to buy final at aeropostale and instead bought the new videogame titan fall, which was supposed to showcase microsoft's cloud technology as the first gain the integrated cloud functionality. 45, 6, seven hours that night i was not able to play because nadella's cloud crashed down and was working. businesses have that possibly more serious problems when that cloud comes down. why does this company have problems with what is supposed to be its number one strength now? >> just overnight, as you alluded to, the cloud platform had a se

kick jukes has joined us, global head of foreign exchange at socgen.didn't hit the 1.8 the market was looking for had i here, kit. what does that tell us about the uk economy? >> the prices fell last month on the back of food and clothing prices. there is velgs consumer price inflation, even less wage inflation, not much ppi inflation. and the economy is doing fine. and the question is then, you know, what is carney going to -- which part is he going to lead us down next? >> well, i'm just having a look at the producer input prices, minus 1.6% month on month. minus 7.3% year on year against expectation. output prices minus 0.1% month on month minus 0.1% year on year. how can you frighten the market with higher interest rates in the face of such weak inflationary pressure. >> there's nothing to suggest they need to go up, absolutely nothing, no rate growth, no inflation. the economy says nominal growth in 4%, it shouldn't be at -- and that is being the challenge here in the united states for quite a long time. the challenge for the markets is that mark