Transcripts For CNBC Worldwide Exchange 20240622

Further support. A final deadline of sunday to prepare a new package of reforms as the block is prepared for a grexit. Microsoft is taking an ax to its work force again. The fresh layoffs will impact the hardware and smartphone business it acquired from nokia last year. In a surprise move barclays announced the departure of Anthony Jenkins. The search for a new ceo takes place. He said we are leaving value on the table and a new approach is required. He added that independent executives had concerned about jenkins leadership style for sometime. Shares under his tenure out performed all over u. K. Banks climbing 51 during that period. In the early years stock gains were boosted by the decision to side step government have since declined. Heres a few reasons why. In may 2014 a result of a Strategic Review lead to the bank cutting 9,000 job. In june 2014 the new York Attorney general opened a dark pools probe and in 2014 they were fined 2. 4 million for forex rigging. The change at the top is probably create a little bit of volatility in the shortterm. And i wasnt expecting it and its the situation before and then it could be very positive given the sense that we could probably see a more severe one. Were seeing more comments on the wire. According to reuters the chairman is not in a massive rush to appoint jenkins successor. He adds that he spoke to him last week about his future and the Board Meeting took place last night. One final comment, an independent executive, they have had concern about his style of leadership for sometime. Its really interesting that many of them including jeffreys for example, they actually saw this coming. They just didnt expect the timing of this to be so soon right after mcfarland has been appointed. We know that he is extremely demanding. He wants to see much faster cost cutting. He has been engaged in two rounds of restructuring. Weve seen thousands of job cuts under him. That simply wasnt fast enough. Despite outperforming other u. K. Banks, the actual performance of barclays this morning, the Investment Banking profits have been dropping under his leadership. He is desperately tried to accelerate change and revamp the reputation but it hasnt been enough. The board is speaking out saying they need a new set of skills at the top of barclays. I wonder what exactly that means. Then i wonder is anyone good enough. You said about the disappointment and i have been look through past analyst notes and it seems to me that the analysts themselves werent that disappointed. Yes shares under performed the Banking Sector a little bit but barclay shares up by 11 . Morgan stanley at the end of june said we have an overweight rating for the stock. New analysis says there is potential for noncore run down. It was also a top pick not long ago. They say we would not be surprised that if the plans were revisited before the end of the year. However, management are clearly highly focused on delivering and improved returns. So they had trust in the management. The board sees some type of change snead at the top. Weve seen a lot recently so this is a trend we have been seeing in the Banking Sector. Strong words used in the press release. He reflected long and hard on Group Leadership and new set of skills was required at the head of the group versus saying its time we get a new person to lead barclays. So the statements made being scrutinized over the past one hour. Lets step away from the barclays story for a little bit. Were still dealing with a greek issue and the Eu Council President is currently speaking. He says we only have four days left to find an alternate agreement. Of course the new deadline is now sunday and he also says that greece could go bankrupt if the deal bails and it remains to be seen whether bankruptcy automatically means grexit. All right. Lets move on. Speaking of barclays, we will be having a first on cnbc interview with the executive chairman of barclays at 11 30 cet. Steve is heading down to have that conversation so make sure that you stay tuned for that. The big question is why now . Why does he need to resign now . Absolutely. Chinese stocks munged for a second day despite another round of measures to stem volatility. It comes after the countrys Securities Regulator said there was a move of panic in the market accuseing investors of irrationally selling shares. Lets get out to sri for the whole extent of the sell off. Whats concerning now is that the china stock market collapse is spreading. Were seeing real signs of contagion. Especially in regional currencies but particularly in the hong kong market. This is concerning because hong kong had been in the volatility in the mainland equities but what a session it was in the afternoon. About an hour ago just before the market wrapped up we were down by over 8 . We saw the worst points drop ever in the history of the hang seng and we saw the biggest percentage decline since the financial crisis back in 2008. In fact we did drop below that 23,000 marker. So whats happening here is that its really being lead by the hong kong brokerages. A lot of them were down by well over 10 . Remember its the brokerages if china that are effectively doing National Service for beijing. Theyre the ones that have been mandated by the government to pledge and buy a lot of these shares back to support the market to a tune of 120 billion. Let me just throw up the board some of those brokerages if we do have it and i can give you a sense of the damage report here. Not as bad as they were intrasession but still deeply negative so the story here is that the brokerages that pledged 120 billion to sure up the market. Its going to damage their earnings. Thats what the market is worried about. Hence these very deep losses. Lets give you the regional picture once again and the scope of this contagion because the japanese markets were hit hard. This is the damage report for the china markets. Lets give you the broader regional view if we could. In terms of this contagion effect they ended 3. 1 lower out of the money. Thats the sharpest percentage loss since march 2014. So the big question is beijing is pulling out all the stops but to no avail. The regulators are saying investors are panicking. Others are saying perhaps its the authorities in beijing itself that are panicking. That doesnt take control of the markts. Where does this bottom out. Its a level of 2100 which is where valuations become a bit more normal but that does suggest some deep further losses to come in this very volatile market which we continue to see. Thank you so much. The shanghai composite wiped out in less than a month. Despite this two Global Investment banks are still bullish. The Market Impact could be less than feared. The chief economists said stocks represent less than 15 of Household Financial assets we inquirities accounting less than 5 of total accounting. Most dont rely on it as a source of financing. Chinas csi 300 index closed down almost 7 today as you can see on the screen. Yet Goldman Sachs expects it to rally by 25 in the next 12 months. Interesting to see the contrast in opinion on where chinese stocks are headed. Now european markets. Were not looking too badly. The stoxx europe 600, one hour into the trading session is just modestly higher by 0. 2 . Were still waiting for the fed minutes today and well be in a wait and see mode ahead of the deadline for greece on sunday. We saw the big sell off in yesterdays trading session to the tune of 1. 2 for the stoxx 600 and today maybe a little bit of bargain hunting and optimism surrounding the greek talks and the Chinese Market sell off doesnt seem to have a huge impact. We saw the big reversal in u. S. Stocks. Similar increases for the ftse 100 but that is lifted by the banking share with barclays rallying by more than 3 . Minors falling hard on the back of china. Up by 1. 6 . Greek Prime Minister Alexis Tsipras speaking at the eu parliament. Lets listen in. To a period of never ending and impassive austerity which trapped our economy in a recession nary vicious circle. The courageous response by the greek people at the time when they were at tatters with the banks closing and the campaign and the media terrorizing them into feeling that no meant an end to talks with europe. An end to negotiations with europe. The votes were counted. This was a voice of democracy and we have to listen to what they said. As i was saying. This was a courageous choice by the greek and is not a decision of breaking off negotiations with europe. It is one of going back. To the founding principles of unification. It is a Crystal Clear message. This is a Crystal Clear message that europe our common european edifice will either be democratic or we mens difficulties. And these are negotiations between the greek government and its partners to reconfirm europe and look at the grand rules of the European Union and full respect for the democratic choice of our peoples. My government i, myself personally and our government 5. 5 months ago. However the bailout programs the programs have been in force for the past 5. 5 years. And i fully assume this responsibility for what happened in the past five or six months. We recognize that the basic responsibility for the impasse which the Greek Economy finds themselves in and the impasse which overall europe finds itself in with the choices that have been made dont just extend the past 5. 5 months. They also extend back 5 years and implementing programs that have not helped europe get out of the crisis it faces. And let me assure the house that from the crisis we have a reform undertaking but lets not forget that for the past five years the greek people made a tremendous effort for adjustment. A very harsh and difficult process of adjustment but this exhausted the patience of the greek people and this is not just confined to greece. We respect the sacrifices and efforts other countries have made. The difficult decisions the governments have taken in other countries as well. In many European Countries austerity programs have been put into effect. However nowhere have the programs been so harsh and long lasting as in the greece and its no exaggeration to say my country has been turned into an experiment. However this has not been a success. Over these five years we have seen a skyrocketing of poverty unemployment has soared as has if the public debt which is 180 of gdp and today the majority of the greek people this is the simple fact which we have to face and accept. The majority of the greek people feels that they have no other choice. Other than to demand that they be given a way out of this impasse and this dead end. They have expressed this in the most direct democratic way possible and we have to implemented that decision and we demand an agreement with our neighbors but one that gives us a sign that we are existing from the crisis which will demonstrate to us that there is light at the end of the tunnel. An agreement which will bring about the credible and necessary reforms. That is clearly necessary but we have to recognize that over the past 5. 5 years reforms have been put into a place which have been a burden on the what pensioner ins can take. What employers can put up with what they can stand and ordinary citizens. We need policies of redistribution are necessary for the middle class for the working class and we must have a basis to succeed. The proposals we made to our partners are ones that involve credible reforms without recession nary effects with it. We need to ensure the medium term funding of our country with development and Growth Program because we have to put on the table an agenda for growth because otherwise, there is no way were going to exit from this crisis and our prime objective must be to combat unemployment and to encourage entrepreneurship and clearly our proposal also contains the demand for an immediate undertaking that we will see genuine dialogue and negotiation in order to get it. We must be able to look reality in the face and find solutions in the face and find out how difficult those may be in practice. Our proposal has been submitted as one that meets those requirements and has been put to the euro group at the summit we had yesterday of the euro zone and today were working with the support arrangements in the next two or three days. We have taken concrete proposals in detail and theyre confident in the next few days well be able to meet the obligations of this crucial time in the best interest of greece and also for the euro zone and can i say this is not just the economic its also in the best interest politically of the European Union. Let me be Crystal Clear, the proposals by the greek government for the funding of its obligations and restructuring of its debt are not steineddesigned to provide an extra burden for the european taxpayers. It never trickles down to the greek people. This is money which was given in order to save the greek and european banks but never trickle down to the ordinary greek man and woman. And in addition starting in august of 2014 we have got to disperse disperse repayments of 7. 2 billion and was not our government in power from august of 2014 to 2015. The fact is that the program has not been implemented. The program was not implemented there. Not because at the time the ideological circumstances that we have, thats because the program then and the program now did not have social acceptance. And sufficient for it to be right it has to be workable. Its got to have the public support and acceptance. Greece has been involved in negotiations and we also are under an obligation to repay to the same institution which is provided the finance. Repayments of 17. 5 billion euros and that money was taken from the resources of the greek people. Despite all of that i have said im not one of those politicians who claim that those responsible for the wars of greece are the wicked foreigners. Greece has got to the verge of bankruptcy because for many years the governments of greece have been creating a government and strengthened at the hands of corruption. They have created and nurtured a nexis between political and economic power. They have allowed tax evasion to run riot and its not right. In accordance with a survey 10 of greeks currently have 56 of the National Wealth and 10 in a time of austerity they have not shared they have not bore their share of the pressure. This is major injustice and the programs the bailout programs have not made things better. On the contrary they have made things worse. They were supposed to bring about reforms but they have not improved the mechanisms that collapsed under the enlightened and indeed terrified national officials. None of the reforms has helped when it comes to the nexus between the political establishment, the banks in that three sided ring. None of the reforms have improved the functioning and the efficiency of the mechanisms of state which has now become working in the vested interest instead of the common interest and common good. Our proposals are based on genuine reforms whose purpose is to change the face of greece. These are reforms which previous governments and their political regime did not want to put in place. They did not want these changes to take place in greece. That was not the purpose of the bailouts. Effectively tackling the cartel of a vested interest. And the National Finances and unemployment and labor market are covered. We must be able to implemented the priorities of our government and get traction on those difficulties and this is those parties are ones we are going to look at with our partners. Today we come with a strong mandate from the greek people and were determined to tackle the establishment in our country and change the mind set which have taken us and taken the euro zone down. Ladies and gentlemen europe finds itself at a crucial crossroads. What we now call the greek crisis is only a manifestation of the euro zones inability and this is not exclusively a greek problem. This is a european problem and european problems require european solutions. European history is a history of conflict but conflict leading to compromise and its also a history of convergence and enlargements. It is a history of unity and not divisions. And this is why we talk about united europe and let us not allow it to become a divided europe. And its a compromise which will avoid a break up in negotiations and this is in line with the traditions of the European Union. I bloef together we can rise to this historical challenge. Comments seem to be well received by the European Parliament. You can see a moment of applause. It doesnt mean breaking up with europe and our proposal contains demand for genuine dialogue on the sustainability of public debt. Lets get out to jeff who is live in brussels. Jeff the big question is does this give us clarity as to what proposals greece could unveil ahead of sundays meeting. Not really. Im not sure if the comments will have been well received. That was just courteous applause. European politicians generally if nothing else tend to be courteous to each other. I think that was a thinly vailed critique of the whole program of physical austerity. Since the crisis unfolded in 20072008 but if you listen to what he had to say there, fwrees has been in austerity laboratory. The program has been harsh and long lasting in greece and europe is where it is and greece is where it is because of the programs. I think what weve heard from mr. Tsipras is once again an argument in favor of giving more money to greece and relaxing the pressure on spending that many countries are currently experiencing particularly those in the south of europe. I dont think his comments will go down particularly well with the germans and others who were in that leaders meeting yesterday and felt a sense of frustration that the government hasnt really come through with anything new so far in terms of how they are going to raise taxes and make sure that more people pay their taxes. Reduce the tax evasion. How are they going to put public spending at the moment. Mr. Tsipras didnt sound like a man inclined to reduce public spending. If anything from what hes just said to the European Parliament it sounds like he would like to increase spending in areas where it reduces pressure on those who have been suffering as a result of the austerity and unemployment. So for those who perhaps hoped that sunday would bring a deal im not sure that they had been encouraged by the remarks hes made in the European Parliament right now. Thank you for that. Also want to get instant reaction from julia standing by in athens. What really surprised me is tsipras said he actually tailored a proposal yesterday. What sort of proposal is that . I dont think the markets know about that. Was it a shortterm proposal for shortterm financing or the longer Term Agreement that everyone is waiting for . Well if you remember what the economy minister yesterday said to me when i spoke to him, he said there were a number of proposals. You have to break it down into a shortterm financing arrangement to get them over the bulk of the ecb payments to come up. On the 20th of july we have been talking about that a lot and then the longer term programs. The economy minister told me theyd ask for an 18 month to two year program but that financing in the shortterm is also very critical. He has a decision here. He has to decide whether or not he believes the prior actions that the creditors keep going on about, these are the measures to deal with the financing in the shortterm. Whether he can get away with those and pass those through Parliament Without debt talks in the autumn and a whole load of conditionality to come for the Third Program and have to only echo what jeff was saying there. This was not a guy providing any kind of concessions over the measures he is willing to come up with at this point. They told me yesterday the government told me well put something on the table today but i keep reiterating we have been confused by this government so many times now in term of what they do and dont put on the table and the contents of its difficult to say how this is going to go. Ly mention i know the economy minister i spoke to yesterday was in the brussels talks right up until moment of that referendum being called and he said again to me we were very close. So the distance isnt that far. The question is whether or not that final 20 as people are talking about can be bridged. Really difficult to say particularly after that speech. Thank you so much for that. Still a very very defiant tsipras speaking to parliamentary there. Well have a first on cnbc interview with John Mcfarlane. Executive chairman at barclays. Thats coming up. Plus facing another budget crunch. We speak to the u. K. s shadow business secretary as George Osborne prepares for the first all conservative budget in 20 years. Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. A new approach is required. They fire Anthony Jenkins amid dissatisfaction about his leadership show. John mcfarlane will lead until someone is found. Brokerage stocks weigh on the markets. The hang seng closing down by 6 . This despite the pboc stepping in with further support. Searching for light at the end of the tunnel. Tsipras tells european lawmakers that austerity in greece must come to an end as brussels gives athens a final deadline of sunday to deliver a new package of reforms. Microsoft is taking an ax to its work force again. The fresh lay offs will impact the hardware and the smartphone business it requires from nokia last year. Lets get back to our top story. In a surprise move barclays announced did departure and John Mcfarlane will take up the role. He said we are leaving value on the table and a new approach is required. He added that independent executives had concerns about his leadership style for sometime. Shares are rallying on the back of this this morning. Higher by 3. 3 and we will have a first on cnbc interview with John Mcfarlane, the now executive chairman and hes heading down to have that conversation. Make sure you stay tuned for that. Another story is the volatility in chinese stocks spreading across asia. Sending stocks across asia lower. You can look at the japanese nikkei closing above 20,000. A key psychological level. Losing about 550 pounds down 3 in todays trade off by almost 15 . I want to get out to eunice in beijing. You visited one of those brokerages this morning. What was the sentiment like. There were a lot of angry people fearful and Retail Investors staring at the screens huddled around him. One man had his hands in front of him looking at this big board because he was watching the screen as if it was a horror flick. Theres so much panic right now in the chinese stock markets. A lot of people are blaming the government. Thats where most of the frustration is being directed to. Emotions were running high. There is one person that said that the government has been in the market this entire time convincing us that this is a good investment but now were falling into an abyss. Its happened here and the Chinese Media said this is the biggest that the country has ever seen by more than half of the listed companies in china have had their shares suspended. So this is to try to stop the volatility. Protect some of these companies from these massive market swings and what is happening is its feeding a lot of fear and negative sentiment in the market where the Retail Investors there at the brokerage were saying that they were concerned and they were selling the shares of the stocks of the companies that didnt have their shares suspended because they were selling whatever they could. So the government has come in with several new measures that pump more liquidity into the market and they also called on the state owned enterprises to stop selling their shares. But they have also said that theyre also describing a patriotic fight to continue to buy their own shares. A lot going on to try to stem the current falls. Thank you so much for that live report. Now switching focus to the u. K. U. K. Chancellor is preparing to deliver the first all conservative budget in two decades. He could slow the pace of cuts to welfare spending. This after the torys pledge 12 billion pounds in savings during the Election Campaign in may. Wwilf. Yes well talk about the budget in a minute. Well talk about the other top story in the u. K. Today. Lets talk about barclays. Anthony jenkins is gone. It wasnt long ago he was called st. Anthony. What do you make of that . Ultimately whether or not you keep or remove your chief executive is a decision for the board. My understanding from what i heard this morning is that this was done at the instarting rotation gags of the nonexecutive director which is is why the chair has taken over as chief executive and there was a difference in respect to the size of the Investment Bank where your interest is engaged this as an impact of financial stability, barclays is one of the biggest banks in the u. K. And to the extent this has an impact on the way in which the rules are reserved here in the city of london. We know that barclays was fined 290 Million Pounds by u. K. And u. S. Regulators because of the scandal surrounding liable and under the former chairman david walker they commissioned him to hook into the scandal at barclays and the bank indicated it wanted to implemented the recommendations. One of the problem that the source review identified was that they were putting bonuses and profits before the interest of clients and customers and one of the areas which is identified was the Investment Banking division where there was a culture of winning as the report said that seemed to overwhelm everything else. Where people would be worried is if the removal of jenkins represents barclays moving away from an an on going commitment to ensure that they continue to be implemented and we dont see a repeat of the disgraceful behaviors that we saw in the city of london so thats where as a policy maker one has an interest but this is a commercial decision for the board. Still more to do in your view. Lets move on to the budget. The first all tory budget in 19 years. Does that scare you . It certainly worries me when i look at the prospects for my own community but the things George Osborne needs to address is the structural imbalances in the community. We have the lowest rate of productive for japan. If you look at the way our economy is shaped theres not enough savings. Weve seen the Household Savings ratio fall every year since 2010. It was the lowest rate since 1940. We still have the really big on going issue of our current account deficit. It was 5. 5 of gdp in 2014. The highest since records began. We dont see even growth geographically across our economy and we need to see a greater variety of sectors contributing to growth. Now George Osborne if you remember back it wasnt quite such a blue budget in june 2010 committed to addressing all of these imbalances in addition to eliminating the current structural deficit he has failed to achieve any of the targets. He needs to explain why. People can have more confidence to address these things but the structural imbalances ultimately are the problem we need to add dretsz in our economy right now. We only have time for one more. Lets talk on greece. On going unfolding situation there. How does that effect David Camerons attempts to renegotiate with europe and our own Eu Referendum coming up . One has deeper sympathy for the greek people. Its awful watching the pictures they have broadcast of the plight of the greek people themselves. The second thing id say is this will test the euro so its limits because it illustrates i think the limits to which you can have Monetary Union without a degree of Political Union and illustrates the difficulty in achieving a degree of Political Union when you have dirgeltd democracies wanting Different Things very well to highlight what the greek people wants but theres the issues for other countries too. For us in the u. K. People will be watching this carefully but the last labor Prime Minister the fact that he kept greece out of the euro zone will be one of the most significant and best decisions he made. Is the euro zone failing without Political Union . Its hard to see how you can get it to succeed without a greater degree of Political Union which is what the core members of the euro zone are pressing on with but testing how that can work when you have such economies and different people wanting Different Things we will see if it can succeed or not. Clearly they need the Structural Reforms and they sold something to their public they wont be able to deliver which is reduced poverty, greater equality outside essentially a market based system but of course germany and others need to understand they have to have room to breathe which will allow them to get the revenues in to reduce their debt burden. Guys we have the budget from chancellor George Osborne at 12 30 london time today. Thank you for that. I know its early in the morning but maybe some of you are ready and thirsty. The alcoholic Beverage Industry always bubbled with mergers and acquisitions. Since the start of 2005 theres been 24 deals in the alcohol industry valued at over 2 billion. In 1984 he joined with luxury brand in a deal that the New York Times dubbed the champagne of mergers. As it celebrates its 250th anniversary well speak to the group ceo about surviving in an ever evolving industry. Thats coming up on worldwide exchange. Welcome back. A quick look at Commodity Prices under intense selling pressure as a result of the slump that we have seen in china. Wti crude down by 0. 9 . 5187 is the level. Off by 0. 9 . Worth keeping in mind that oil price versus fallen. They have reach fallen roughly 12 over the last 7 trading days. Thats a huge drop. Even spot gold is lower and copper continuing its downward move. Currently lower by 1. 2 and close to six year lows. Brent crude in bear market territory down 20 since late may. Big impact is iran. Theres a new deadline in nuclear talks. Negotiators have given themselves since friday to reach an agreement. One senior official says tehran will not show flexibility on its red lines. Good morning, thats right. Its been extended until least friday and since last night things have been quite theyre expected to start trickling in to see if they can clench a deal by friday he is expected back in vienna. Theres a clear will that exists to get this agreement done and theyre going to go at it until they get there but despite that clear will differences still remain and the biggest of the differences and a wider arms embargo. Britain, france and germany want to remain in place because they feel if iran is able to trade it will fuel the flames of a conflict in this area even further but the russians chinese want it lifted. Thank you so much for that. Sunday is the new deadline for greece to reach a bailout deal with its creditors. Ceos from europes leading companies have been talking about the Business Impact of the greek crisis. Lets get out to paris and it doesnt seem to be bad news for everyone out there. For the banks its not a problem anymore. They sold most of their greek assets in 2012. In terms of Market Reaction the ceo believes that grrksexit would have limited impact when it comes to market activity and says that the greek situation has recently increased the volatility which in the end is pretty good and this is what he told me on the side of the financial conference yesterday in paris. The greek situation combined with the quantitative easing of the ecb caused a lot of volatility on the market and volumes on the equity market. We talked about lack of liquidity on the bond markets but equities are strong. We talk about 34 increase of average transaction value in the first part of this year compared to last year. Speaking on the side of this conference, the greek situation was more like a political issue than a bankers issue. As i was telling you french banks have a limited exposure. Thank you so much for that. Microsoft plans to announce a new major plan of lay offs as early as today according to a report by the New York Times. Theyre in addition to the 18,000 employees that microsoft said it planned to let go of last year. Theyre expected to Effect People in the companys hardware business since 2013. Since that deal was announced microsoft is up 33 . Another story in tech land go pro is going hollywood. The company has hired a former hulu executive to make a push into original content. Theyll be in charge of features and series. A new position, she is being tasked with Striking Partnerships as well as studios and networks to develop and coproduce content. Theyll focus on unscripted shows and documentarys. Lets take a look at price action up three quarters of a percent. Over the past three months up about 16 . Twinkies now may be headed toward wall street. The iconic brand has shelved plans to sell itself and is considering an ipo. A deal could value the company at 2. 5 billion. Just three years ago hostess went bankrupt and planned to close its doors when bakery workers went on strike but it was bought for 2 4 10 million for the private equity fund and turn around expert. Talk about a come back story. Absolutely. Coming up well have that first on cnbc interview with the executive chairman of barclays at 11 30 cet. And welcome to the second hour of worldwide exchange. Im seema mody. These are your headlines from around the world. Barclays fire Anthony Jenkins aed by dissatisfaction over his strategy and leadership style. Stop the panic. Chinese regulators accuse investors of irrational selling of brokerage stocks weigh on the markets. The hang seng closing down 6 despite the pboc stepping in with further support. Searching for light at the end of the tunnel. Alexis tsipras tells the european lawmakers that austerity in greece must come to an end. This as brussels gives athens a final deadline of sunday to deliver a new package of reforms. Microsoft has reportedly taken an ax to its work force again. The fresh lay offs will impact the hardware and smartphone business it acquired from nokia last year. And in a surprise move barclays announced the departure of ceo Anthony Jenkins after replacing bob diamond. The search for a new ceo takes place and explaining the decision he said, quote, were leaving value on the table and a new approach is required. He added that independent executives have had concerns for quite sometimes. Shares this morning, theyre higher on the back of the news that were up by 3. 3 . Shares under antonys jenkins out performed. They were boosted by the decision to side step government help after the financial crisis but shares declined. The result lead to the bank cutting 19,000 jobs. That was june of 2014 the new York Attorney general opened a probe into dark pools and in may barclays was fined 2. 4 billion for rigging forex markets. Earlier our colleagues spoke to the senior credit analyst about what a change at the top means. I think it would create volatility in the shortterm because the timing of it wasnt expect expected but it could be very positive in the fact that we could probably see a more severe bank. Big change here at bar chas. The timing is what makes this really interesting. A lot of analysts are quite confident in the management, in Antony Jenkins but he wasnt able to do that. Thousands of jobs were cut under jenkins. Why wasnt it enough for the members. Why wasnt it enough for the chairman and who else are they going to appoint for this job that does a much better job. There arent that many top banking ceos out there. Its a very very rare breed. Lets give him the benefit of the doubt. He did everything right and just didnt live up to High Expectations and shares have done not too badly. They out performed u. K. Banks. So far this year shares in bar barclays are up 11 but what the nonexecutive director is really looking for is someone who accelerates the restructuring and the cost cutting because they think it wasnt enough and we will have a first on cnbc interview with John Mcfarlane at 11 30 cet. Steve is headed down to canary wharf to have that conversation so make sure you stay tuned for that. Dont want to miss it. Chinese stocks plunged despite another round of measures to stem volatility. It comes after the countrys security regulator said there was a mood of panic in the market accusing investors of irrationally selling shares. Lets get out to eunice in beijing with more on the sentiment on the ground. Definitely. We went down to a brokerage earlier today and theres a lot of panic going on. A lot of fear. Emotions running very high. Most people were angry with the government and saying that the measures have failed and there was one investor that said that the government has been basically manipulating the markets. Their words this entire time and con vising us that the stock market is a good way to confess and were all left in abyss. It shows how hopeless people feel now at seeing so much of their savings completely disappear. A lot of people were focused on the trading halt which is massive and what the Chinese Media have said is that the largest in chinese stock market history. Over half of the listed shares in china have seen their trade halted and this was just to try to stop the volatility or protect companies from falling prices but its actually had a very negative impact on sentiment where a lot of investors have become concerned and they have been selling what they could sell. They thought that more companies were going to apply to have their shares halted as well. The government has come in with more measures today with the central bank saying its going to provide more assistance. That helped a little. We saw some money going into small cap stocks but at the same time its been pretty ugly. Thank you. It was a tough session overnight in asia. What does this mean for european markets but first you have a flash coming in. Absolutely. Comments coming from the ecb. He says that the ecb is ready to use all instruments at its disposal to contain monetary financial, economic consequences of the greek crisis on the euro zone. He says that the direct economic and financial effects of the greek crisis on the euro zone are likely to be modest but will be more serious if it rekindles the market fear that the euro is not irreversible and one final comment is that coordinated action is needed by national and eu authorities and the greek crisis may have a serious impact if the euro is believed reversible. Quick look 11045. We are higher on the day by roughly a third of 1 . And as the euro strengens, what does this all mean for stocks . Lets take a look at u. S. Futures here. Stocks did stabilize in yesterdays session. A lot of focus on the volatility in oil prices. Futures indicating a lower open. Were down significantly. Down 165 points on the dow. Nasdaq down 45 in premarket trade and the s p 500 signaling a lower open by 20 points. This as tsipras addressed the Parliament Saying a referendum gave him a man date. No deal was reached yesterday. All eyes on sunday. Greece actually held an auction and sold 1. 625 billion and had a yield of 2. 97 . That was unchanged versus the previous auction and this was an important one because they should be redeemed on friday and this rollover that was very important for greece but obviously were paying more attention to that. A little camera with big ambitions. Why go pro is setting its tights on making the movies and not just the hardware. Were back in two minutes. You know your dentures can move, unlike natural teeth. Try fixodent plus true feel. The smooth formula helps keep dentures in place. Its free of flavors and colorants, for a closer feeling to natural teeth. Fixodent. And forget it. Welcome back. Here are your headlines. Wall street set for another down day with futures pointing to a triple digit fall on the to you. This as Chinese Markets nose dive again. Regulators accuse investors of irrational selling. And microsoft is readying for another big round of lay offs with swrobjobs and smartphone business on the line. Greek Prime Minister says the referendum has given the government a man date for a, quote, sustainable solution. Speaking earlier before the European Parliament he emphasized that previous measures have not worked as intended. The bailout programs have not made things better. On the contrary they made things worse. They were supposed to bring about reforms. But those reforms have not improved the tax collecting mechanisms which collapsed under the excessive zeal of enlightened and terrified national officials. Lets get out to julia who is following this story live from athens. Julia. Thanks so much. The question is can his plan for sustainable solution match what the creditors are asking. Thats what we need to see. Proposals from this greek government on the table as fast as possible. The creditors effectively said sunday is the deadline. I spoke to the economy minister yesterday and i said for five months now we had mixed messages from this government. Confusion about what the plan is here. Whats your suggestion about your plan for the next few days. Well we have been in close contact with International Investors in person for quite sometime the last year and a half. Our message is quite straightforward. We want greece back on a growth path which is the he sen lshl thing for investors and everybody. If we get the right deal that will be way out. Your bonds are priced to default. So to those that are speculating that greece is going to default, are they wrong . They have been wrong for the last two or three years. I hope they will be wrong once more. So the european leaders said we need a deal by sunday. They said well back stock the countrys banks until sunday. But can tsipras come up with the goods by sunday. Hes been unpredictable all along so its a tough cookie that decides whether or not we see a deal or we dont but we wait for these points higher posels. Thank you for that. Moving on, alcoa kicks off the Second Quarter earnings season. Investors will be looking for signs of a rebound in metal prices especially aluminum which is down 11 this year. They suffered down 30 this year and alcoa ceo will discuss earnings today at 4 00 p. M. Eastern. Earnings will forecasted to rise 2. 2 excluding energy which has been hit by the plunge in oil prices. Including Energy Profits are seen falling 4. 5 . That would mark the first deline since the Third Quarter of 2012. Lets talk more about what you can expect with the Senior Vice President joining us. Thank you for getting up early with us. The macro factors impacting the markets today, do earnings even matter . I mean its a great point. We had this sort of perfect storm of macro events that happened most recently so you wont see a lot of that reflected in the Earnings Releases over the next few weeks because a lot of the companys fiscal quarters have already ended but as far as the markets go are they going to be paying attention to earnings . Theyre going to be paying more attention to some of this Economic News that well have coming out over the next month or so. I do think as usual you will see that reflected in the markets but a lot of this is already baked into what were seeing. The health of the Banking Sector has been in the spotlight with leadership changes among barclays and other banks. How would you say the u. S. Banking sector is performing in comparison to its european peers . Expectations are muted. Were looking for earnings about 2. 5 and revenues about 4 . But were entering in the same fashion where banks again, financials in general were expected to be flat but the banks were able to lift that and you see a lot of the positive trends trickling into the Second Quarter. Almost matched the record set in 2007 so i think the likes of Goldman Sachs and Morgan Stanley are going to benefit there. Some of the currency volatility we saw the banks benefitting from in the latest quarter. Youre still going to see the upside there for these banks and then peak housing season how is mortgage lending effected . Well see that from wells fargo when they report on tuesday. Do you think that by and large well see a repeat of the First Quarter with it set so low and then the Companies End upbeating on the top and the bottom line . Thats the trend every quarter. We go into the season. The expectation is always much lower and then its almost a carbon copy of the First Quarter where negative expectations on earnings and revenues however we did end the First Quarter up about 2 on the earnings front. Revenues were still suppressed to negative 2 . Thats a trend we have been seeing where revenues fall below the bottom line however do i think well end negative on the earnings front . Im not sure. I think once we get into the peak earnings season well see that revisions are probably a little too low and a lot of these companies will end upbeating. Thank you so much for your time and worth noting seema, the Health Care Sector is expected to see Profit Growth of 13. 5 . Perhaps thats why its the best performing sector in 2015. Still to come on worldwide exchange, well shift our focus. Hennessey celebrating its 250th anniversary. Well be speaking to the companys ceo about the future of the spirit business and surviving in a fast moving industry. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Welcome back to the show. Microsoft plans to announce a new major round of lay offs as early as today. This according to a report by the mork norkNew York Times. Its in addition to the employees they planned to let go last year. Its expected to Effect People in the companys hardware business and smartphone business acquired from nokia in 2013 but since that deal was announced microsoft shares are up 33 . Go pro is going hollywood. The company has hired a former hulu executive to make a push into original content. Theyll be in charge of the features and series a new position. She is tasked with Striking Partnerships as well as studios and networks to develop and coproduce content. Now they have been on a tear and theyre up about 1 in frankford frankfurt. Since the start of 2005 theres been 24 deals valued at over 2 billion. Now they were purchased and they split scottish and new castle. Now the king of these mash ups fittingly includes the king of beers for 58. 5 million. The new conglomerate did it for 24 billion and then they required 14. 4 million. They were also involved in one of the iconic beverage deals when it joined in 1876 in a move the New York Times dubed the champagne of mergers. Were really just talking about china these days. A big slump in the stock markets. To what extent has that effected you apart from the separate crack down in corruption . Its a matter of adapting to a new situation. The brand hennessey has a worldwide presence. Its no story of adapting constantly to changing environments. So clearly, the china situation has effected us but the rest of asia is doing well in other parts of the world and particularly the u. S. Market so this has allowed us to ride the wave. Its not an easy situation but i believe that we can really make the most of the Current Situation and keep the brand on the growth path. Why do you think youre doing so well in the u. S. Market . What do you ascribe that too . We have been in the u. S. Market since 1794 and we have been investing constantly. Even when the American Consumers were more interested in spirits like vodka but we have really changed that pattern. We have seen a real upswing and we really enjoyed the boom of this current vierlt. Good vick environment. An improving one. This explains the current performance. The other story you have been focused on is greece and the potential contagion risk and the impact it could have on the broader economy. Help me understand how they performed in europe . Whats business like . Actually hennessey has a presence in Eastern Europe and particularly in countries like russia. So the situation in greece does not particularly effect hennessey but its difficult to tell what would be the impact of the Current Situation on the overall european economy but, you know we have mostly Eastern Europe brand. Thank you for joining us today. And coming up after this break, we will have a first on cnbc interview with the executive chairman of barclays at 11 30 ceo. Stay tuned for that. Take a look at futures. It could be a tough day on wall street after that negative session overseas in asia. Dow indicating a lower open by 184 points in premarket trade. Mornings. Wonderful, crazy mornings. We figure you probably dont have time to wait on hold. Thats why at xfinity were hard at work building new apps like this one that lets you choose a time for us to call you. So instead of waiting on hold, well call you when things are just as wonderful. [phone rings] but a little less crazy. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Welcome, everyone. Youre watching world side exchange. These are your headlines from around the world. Barclays fires ceo ceo Antony Jenkins. We will be bringing you the first interview with john that will lead the bank until a successor is found. Wall street pointing to another down day. This as regulators accuse investors of irrational selling. Searching for light at the end of the tunnel. Alexis tsipras says austerity in greece must come to an end. This as brussels gives athens a final deadline of sunday to deliver a new package of reforms. Microsoft is reportedly taking an axe to its work force again. The fresh layoffs will impact the hardware and smartphone business it acquires from nokia last year. If youre just tuning in thank you for joining us here on worldwide exchange. As you can see on the screen futures painting a picture of red. The dow down 178 points in premarket trade. Nasdaq in focus. It did close yesterday below 5,000. Of course the key level that traders watch indicating a lower open by 44 points. I want to point out semiconductors, tech stocks have been selling off afwreszively over the past ten days. In fact the s p tech sector now negative year to date but a big focus yesterday was the strong reversal that we saw in u. S. Markets. In the beginning of trade the dow was down triple digits and then it came back and ended higher but just by around half a percent. Breaking below the 200 Day Moving Average earlier in the day only to end in positive territory. A lot of wild swings in the market and having to do with the uncertainty in fwrees plus earnings season kicking off today. Lets take a look at european equities. What are we seeing . The European Economic commissioner saying an agreement between greece and the euro zone is still possible. Those of course are the words from him but our eyes turn to sunday where were hoping that greece will propose new reforms a head of european ministers. But seema he is always the very very optimistic one, isnt he . Greek Prime Minister says the referendum has given the government a man date for a sustainable solution speaking earlier before the European Parliament, he emphasized that previous measures have not worked as intended. The programs have not made things better. They made things worse. They were supposed to bring about reforms but those reforms have not improved the tax collecting mechanisms which collapsed under the excessive zeal of enlightened and indeed terrified national officials. Lets cross back out to jeff in brussels. That was a very defiant speech. I dont see how the two sides can overcome their differences by sunday. What do you think . Ill in your camp on this. You could be charitable and you could say he knows that hes speaking largely to a domestic aud wrensience while hes in the european audience and its possible to get a deal and also relieve them of the austerity that they suffered but that runs very much counter to the messages that we heard from european leaders here yesterday saying bring us firm proposals. Show us steps that will cut spending and raise taxes and lead to the Structural Reforms that will put greece back on a good fiscal footing. That didnt sound like what mr. Tsipras had planned. He was saying previous programs have not worked. They brought greece to where it is at the moment and its time that they should stop and i think it had been very difficult to see how these two expressions of what europe needs and what greece needs can actually come together. So we have a day or so before were hoping to see some fresh greek proposals on the table and then of course we run into that meeting on sunday of the eu leaders when were being told we will have a final decision on whether greece remains in the euro zone or not. Let me send it back to you. Jeff thank you for that. Lets get back to our other top story. Many of them today. Chinese stocks plunged for a second day despite another round of measures for the pboc to stem volatility. It comes after the countrys security regulator said theres a mood of panic in the market akugz investors of irrationally selling shares. Hsbc voicing in the shanghai composite has seen over a quarter of its market cap wiped out in less than a month. Two Global Investment banks are still feeling bullish. The markets impact on chinas real economy could be less than feared. Chinas chief Economist Says stocks represent less than 15 of Household Financial assets we inquiry equalities as more financing. Meanwhile, chinas csi 300 index closed down almost 7 today but Goldman Sachs expects it to rally by 25 in the next 12 months and seema it was interesting to look at some of the stocks yesterday. Theyre now in bear market territory up 21 from what we saw in june. Alibaba fell 3 in yesterdays trading session and its interesting that many of the Chinese Companies listed in the u. S. They wanted to go private and they wanted to list in china but now theyre shelving those plans because obviously its nowhere close to as attractive as a couple of months ago. Yeah they opened up the possibility of seeing more Companies List in china. Alibaba, as you were pointing out, the stock falling to the lowest level since going public. The ecommerce giant slumping to a low of 77 dollars a share. Our u. S. Audience trying to understand what the sell off in china means for their portfolio. Which companies have high exposure to china. Companies like qualcomm applied materials, all have 50 that come from asia in 2015. Whats the impact of the slow down as well as the volatility in the Chinese Markets on these type of companies . Perhaps well see if any of these companies will cite china as a concern. Absolutely. Still to come on the show more lay offs on the way for microsoft. What nokia has to do with the move. Thats coming up straight after this break. As we speak steve is just sitting down with John Mcfarland and theyll be discussing the ousting of ceo Antony Jenkins. Do stay tuned for that. Microsoft plans to announce a new major round of lay offs as early as today. Theyre in addition to the 18,000 employees that microsoft said it planned to let go of last year. The cuts are expected to Effect People in the companys hardware business and smartphone business acquired in 2013 and since the deal is announced microsoft is up 33 . Its lagging behind the likes of apple and google in terms of their operating system. It cant seem to catch up with the two giants. Its a battle of old tech versus new tech. Companies are expanding to keep up with the type of growth that theyre seeing in social media and advertising. On the other side of the fence you have older tech names like microsoft trying to turn around and reinvent their Growth Strategy to keep one the competition in the marketplace. A lot of focus on cloud. Still reports and speculation that there will be some type of deal between microsoft and sales force. Something that investors are watching closely but we should point out the stock is still up about 33 . A lot of focus focussing more on cloud. One of those companies that does have high exposure overseas so will be interesting to see how they compensate for the fluctuate in the stronger dollar and that hits their bottom line this quarter. But was that as a matter of fact phone purchase of nokia a really wise move . Because we could be looking at a huge write down for that particular business. Sure. Absolutely. And that was a costly one too. Absolutely. Theres a lot of questions as to whether that was the right move on microsofts behalf. All right. Sales of the apple watch have fallen by 90 . 90 since its opening week. Thats according to a report by slice intelligence. The report says the tech giant has been selling fewer than 20,000 watches a day in the u. Suspect since the initial launch surge. 2thirds of those have been of the lower profit sports version. And people are really just waiting for the updated version, arent they . I dont know if we should give this report so much precedence. Well have to wait and see. It was first only Available Online and then some availability at stores but i think earnings will give us a good indication as to howell that apple watch sold because early reports suggested they were selling out so i dont know. Jury is still out as to whether the wearable is doing well. Well stick with tech. Another story catching our attention, gopro is going hollywood. They hired a former hulu executive to make a push into original content. He has been tasked with with Striking Partnership and content creators as well as studios and networks to develop and coproduce content with using small cameras. Theyll focus on unscripted shows and document tearsarys. Overtime they would strengthen their focus on media and using that content that consumers had been capturing with their go pro device. Shares up 2 . Heres the headlines as we head to break. Wall street set for another down day with futures pointing to a triple digit fall on the dow. This has Chinese Markets nose dive again. Accusing investors of irrational selling and microsoft reading for another big rounds of layoffs with jobs of its smartphone business on the line. Were back in two. A romantic fumble at this romantic chateau. Leads to these fine humans. Who you take to this ecolodge. To get seriously close to nature. Then you check in with her at this tropical paradise. Before soaring over this castle resort with your fatherinlaw. Who finally seems to like you. Life can be like that when you get it booking right. Booking. Com booking. Yeah in a surprise move barclays announced the departure of the ceo. Explaining the decision mcfarlane said we are leaving value on the table and a new approach is required. He added that independent executives have had concerns about generaljenkins leadership style for sometime. We have been on recovery of the bank and to stabilize the situation. Thats been a very important period for the company and as far as were concerned antony has done a brilliant job to stabilize the organization and take us where we are now. Going forward theres a different agenda. We had a strategy meeting of the board where we endorse the way forward and what was clear was that the execution of that strategy was the priority and wanted to bring it forward. What has he done wrong . He hasnt done anything wrong. Hes not the right person to take us forward. But im sure you said on the investment call this morning that it will be the same strategy pretty much in the short to medium term. Is he just not good at execution . Yes, the question is execution. In that, you know i have been here a couple of months and been on the board for slightly longer. Its perfectly obvious to me that theres a number of issues here. One is that its not fast moving. Its not agile. It is with customers but not in terms of execution. Our efficiency levels are low. Our capitol has been the wrong way and we need to deal with that quickly. He had the right idea to go back to basics rather than that but he wasnt good at executing. Is that the key . No what were asking him to do now is different and the board believes that the probability is higher. But the cost to income ratio is way too high. Your capitol levels are concerns about that. He didnt cut costs aguessgressively enough. What we need to do is grow earnings and then throw off cash to increase the dividend. Now thats a complex story. Its not just about costs. Its a great brand and therefore great opportunity now to grow revenues yesterday i told them to get on with it. We identified some ways and well talk about that later on. Has barclays lost its identity . Its struggling to reinvent itself but has it lost its identity and thats part of it going forward. The brand is truly superb. In my day in london this was the pre Financial Institution and still is. We lost our way after the Global Financial crisis and we need to stabilize and recover the bank. Thats nearly over. We can get the rightful position that the bank is enjoying. Your major takeaways from the interview. You know, i can talk to you about the financials and the price to book which is. 71 . How the low end of the breerd range is an issue and despite the shares having rallied 50 they havent moved for the last year and possibly the last two years but i think it comes down to one thing. Antony jenkins wound up twooo many people across the board. You heard how he went to the Investment Bank first. Morale has been hit for six. Dont forget, across the company so far they have taken out 19,000 jobs. Now he was the right man for the right time of course coming on the back of the financial scandal but lets not forget the shares already rallied before he joined the company. Yes we can say they rallied 50 during his tenure but they come up to my mind the 2009 level of around 89 pens when people were concerned they would go to same way as lloyds or lehmans because of the Capital Position and managed to stay out of the government clause. So they were rallying and Antony Jenkins came in and changed the focus of the bank as well. Now we also talked about the costs and how Antony Jenkins talked about ripping out the costs and improving the cost to income ratio. Its still poor. And he talked about it being a Clunky Organization and i also asked him about the potential new ceo and the time scale there. I asked about a very well thought of ceo that john would be working with as executive chairman as well. Quick question if were actually going to see an acceleration in the execution now under a new ceo are we also looking at much bigger one up charges maybe . In terms of the execution of it its about taking out layers of management. One of the interesting pieces i saw today was about how everything seemed to be done by committee. Less personal responsibility. So taking out some of the layers of the Management Team and improving the execution. Making more people. Its just that morale was poor and they need more people moving in the same direction. No major change in the shortterm in strategy. Thats another take away i got. As always excellent work. David, a pleasure to have you here on this show you had a long career in finance. What do you make of this revolving door were seeing in the world of Investment Banks . I think its pretty clear he has a reputation toward being a cost cutter and turn and expert. I would expect more costs to come out. Theres been a lot of contention around the Investment Bank and you just heard about what the next leg is up for barclays and its very clear from the feedback thats come from shareholders that they need to that the shareholders would like to see additional costs taken out of the bank. Regulatory changes have been a big factor to consider when assessing the health of the banks. You have been quite vocal proposing the banks to unbundle the costs of products and services. What are your thoughts on that . Well there is this move right now theres a trade resolution. Youre paying for Equity Research bundled and the significance of that as it gets paid from the portfolio and not the advisory fees so what this particular article, level 2, article 49 is going to do is slash research budgets which have been under incredible scrutiny and the effects will be catastrophic. The European Commission is looking to put some life into the economy. Europe has a real thirst or need for capital. Most professionals believe that has to come from growing capital markets. This is in exactly the opposite direction. Briefly were seeing cost cutting at Investment Banks left right and center. I would argue this is very big brother. I would argue that research budgets have been under constant pressure for the last decade. They have really contracted dramatically already. This is just going to really exacerbate and accelerate that trend and i think that if you look at our written work youll find that theres been almost a wholesale collapse and shrinkage in the Public Offerings despite recent cyclical trends to the contrary. Thats where all jobs are created. Its in Small Business and not in Large Business and this policy is going to have the effect of concentrating research on large gap stocks. A pleasure to have you on the show here on worldwide exchange. U. S. Futures pointing to a lower open after the blood bath in china. That does it for us. Well see you tomorrow. Dow with a lorer open by 170 points. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Put these stories together and watch out. U. S. Equity futures selling off right now pointing to a sharply lower open here at home. Its wednesday, july 8th 2015. Anything but the summer dull drums and squawk box begins right now. Live from new york where business never sleeps this is squawk box. Good morning and welcome to squawk box here on cnbc. Becky and andrew both off today. Greek Prime Minister Alexis Tsipras speaking to the European Parliament this morning and promised greece would submit concrete reform proposals in two to three days. Finance ministers expected to discuss the developments later today and all 28 European Union leaders are scheduled to meet on sunday for another emergency summit. This morning, Ecb Governing Council member told greece sunday in his words, quote, really the final deadline to reach a deal for economic collapse. Guys, how many times have we said this is