Anna welcome to countdown. Ryan we will be talking to the ceo of this swiss drugmaker later in the day. Just missing sales the estimate on sales coming in at just over one billion swiss francs. The expectation from analysts was 1. 3 billion. Anna the swiss drugs giant considering reporting what they call a good Second Quarter. That number is for the Second Quarter and that is actually 12. 69 billion compared to 12. 7 2 billion that was the forecast. A touch shy or broadly in line with analyst estimates. A lot of focus on where this business is going and where theyre going to guide the market. Deutsche bank and ubs thought there could be room for an earnings upgrade. Core ets for the Second Quarter coming in at 1. 37. It this will we will have to wait and see whether we get anything of that ilk coming through. On that core operating income number 3. 5 9 billion in the Second Quarter, just a touch ahead of the estimate of 3. 58 billion. Ryan Deutsche Bank talking about that ahead of this but so far say nothing on that as of yet. And here we have the net sales to grow midsingle digits. By short of the expectation we had from Deutsche Bank and ubs that they could upgrade their forecast for the full year for operating profit growth, we are not seeing that, they are not doing. Anna seeing a year continued operation nets sales. A fouryear core operating income to grow ahead of sales. Lets talk about the Commodity Markets as well. That is certainly one of our headline stories. On monday, we saw the bloomberg quantity index touching a 13 year low. We are still at those kinds of levels. Just to underline the scale of what we are seeing, that means there weaker than they were around the banking crisis in 2008, weaker than the crisis in 2012. Ryan gold is the biggest component in that index, trading just north of 1100 per ounce. That is near a fiveyear low. We saw the huge drop, the biggest drop in a few years. After somebody sold three pickup trucks worth of gold on one exchange, then we had that huge selloff. If you thought that was just a oneday occurrence, gold is right near that intraday low of yesterday. We are seeing continued weakness, not just in gold but right across the board. Anna we are getting a few comments from toshiba. One of the companies was toshiba and we are hearing toshiba president and to others tell the board that they will resign according to the nhk in tokyo. The former president to resign. We will be out to asia and just a moment for an update on what is happening in the market more broadly. Gold dropping to its lowest level in five years and oil falling below 50. David very good morning. An update here on how these Commodity Prices really played out. As far as equities were concerned, we mostly brushed that off. Obviously, weak spots here and there especially in australia where you have the market exposed to the mining sector. The rest of asia, we were looking much better than monday. When we woke up here tuesday an absolute route across the board, whether you are talking Precious Metals energy, oil dipped below 50 for the First Time Since april. That is the damage over the past week. Gold is about two dollars above 1100. Keep in mind, silver is at a six year low. I mentioned energy. . 9 . 97 for ny 49. 97 for nymex. You saw fairly pronounced moves in things like wheat sugar. Soybeans, so on and so forth. We could go through the changes of these prices all day, but theres certainly a lot of strong downward pressure at this point. You have weakening the buoyant demand a weakening demand, a slowing china. The weather is cooperating. We have a bumper harvest, for example, in brazil. It is a confluence of factors. Will we then see this play into deflationary pressures as we move forward . Equity markets are doing ok at this point. We will continue to follow what happens across these Commodity Markets. Anna thank you very much, david inglis. Ryan weighing in on the commodity story on twitter. The question is, if the commodities rout continues, will the fed be continuing . Across the atlantic, amazon is in focus. Caroline the sexy world of accounting online and analyzing your supply chain. We are seeing numbers come back in line with estimates. Sales growing more than have been forecast, getting close to 5 billion euros in sales. Cloud subscription growing faster than had been anticipated. 555 million euros. This cant this company is managing to suddenly gain traction. The people who supply all of this on Software Applications remotely you and i dont need to invest huge amounts of money in service here in the office. Whether we are in the office or working at home, we can access communications. That is why they need to get onto the cloud, do it quickly. We are seeing that demand for cloud subscription dries up and beat analyst forecasts. We are getting some breaking news saying that they could do targeted job cuts in 2016. Anna lets stick with technology and move back to some things that happened in the United States yesterday. Talking of cloud keep your i on what is happening at ibm. This is a comedy that hasnt made the transition as quickly as sap has. Instead, it is sluggish and we are seeing it moving into cloud, not working as quickly as they would have hoped. This is a 103yearold company. Sales down 13 for the 13th quarter. They were hurt to a tune of 9 but this is a company in transition. Definitely trying to get these new products available. It seems as though they are not managing to compete when it comes to rivals such as amazon and microsoft. Ryan amazon under fire specifically because of this movement into the cloud. Caroline to be able to get access to put their data online, to save their data. It is a huge moneymaker for them. We see amazon strip out Amazon Web Services and start to show off how much money they are putting in and people are wildly impressed. This is a massively growing part of the company. People like it because of its diversification. Bigger than black friday. Decadesold. A new retailing day and still they managed to win out on prime day. Anna caroline, thank you very much. From old tech to new. Platforms like paypal are cashing in on a younger consumer base. The ceo of the company told bloomberg what is like to be his generations money manager. Paypal is the Worlds Largest peertopeer platform. One of our services is then low. Is venmo. It is really the way the millennial generation manages and moves money. Ryan that was paypal ceo dan shulman just minutes after the company went public to much fanfare. Anna greece has dominated Investor Sentiment for months that our next guest says he expects a few greece free weeks. More on that. Anna welcome back it is a quarter past 6 00 here in london. Ryan u. S. Oil falls below 50 a barrel in gold traded near a fiveyear low after a selloff. The bloomberg commodities index is weaker than after the 2008 banking meltdown. The u. S. Economy push the fed toward pushing and toward boosting Interest Rates for the First Time Since 2006. Anna Morgan Stanley be estimates. But ibm reported secondquarter sales decline across all of its Major Business units. At march the 13th straight. Of the 13th straight period of falling revenue. Ryan spacex ceo elon musk says an initial investigation into the explosion of the falcon nine rocket last month was probably due to the oxygen tank. They say that it was about 70 centimeters long and three centimeters wide. They say spacex may have become too complacent because it has grown in size and the majority of its current employees have only known successful launches. Anna the president of toshiba and to others are set to resign. According to forecaster the accounting scandal was caused by executives setting unrealistic accounting targets. At a Board Meeting earlier today, the vicechairman told the japanese economy minister that he intends to resign from all public posts. Ryan lets look across the atlantic. Embassies in washington dc and havana open after a diplomatic freeze that lasted more than five decades. John kerry for restoration of relations will take some time. We have begun a process of full normalization that will take time it also benefit the people in cuba and the United States. Anna the ceremonial raising of flags underscore unresolved issues like the longstanding trade embargo. Kerry alluded to a possible lifting of the sanctions. We would hope, obviously that the embargo at the appropriate time would be lifted and that a great deal more foundation can be built for this relationship. Ryan some members of u. S. Congress about to block moves to end the trade ban. Anna greece is finally looking at a potential payday. August the 17th, according to official familiar with the matter. But will rebuilding the Greek Economy be easy . I think the deal that has been cut is going to be incredibly hard to implement. That is true for a lot of reasons. Number one, because the greek government itself will get considerably weaker. Anna that was Eurasia Group founder and president ian bremmer. Ryan lets get a few view of the markets from bank of America Merrill lynch. Think you very much for being here. Just heard ian bremmer talking about how this will be a difficult deal to implement. With what we have seen over the last week since the deal was done what does what we have seen such far seen thus far tell us about how the application will go . It started on a bridge loan. The negotiations for the new program would be very difficult. I believe that expecting a final agreement by mid august is very optimistic. It would take longer. They have to agree on the reforms. They hope to capitalize the banks. This is going to be very difficult. Anna do they have to discuss debt relief . Yesterday we heard from Angela Merkel and she was saying how discussions of debt relief had started until the third phase of this new bailout. She suggested that debt relief was not going to be part of this conversation. Athanasios it will not be finalized, but the discussions have to start. The greek government is approving fiscal measures but we still dont know what the target is for this year, next year, the future years. Ryan we had the reopening of some of the banks yesterday. What do you make of that . Athanasios good news that they opened but nothing of substance has yet changed. I think it would be a huge issue how to bring the banks back to life, how to restore confidence. Greek banks had a very high amount of nonperforming loans to begin with. Anna we all are a bit exhausted by the greek stories and we are looking for other things to distract us and other things to inform us. We dont have a great deal in terms of major data releases. What is your focus going to be on this week . Athanasios actually, the last week and this week the theme in the markets was divergence of monetary policies. It started by comments by yellen and carney last week at a surprising cut by the bank of canada. We saw the minutes from the bank of england this week. The ecb may think last week was a little bit mixed. Many expected draghi to push. A suggestion will do nothing anna we are on twitter today asking if we will see the fed go ahead with what it wants to do and that is increase Interest Rates in 2015. Do you think that is likely . As you have highlighted, many of their currencies have been affected negatively by what is happening Commodity Markets. Are we really in a world that is so decoupled that the u. S. Can only be the part of the world could be only part of the world hiking rates . Athanasios they have not experienced a very strong recovery, but it is a recovery. The fact that inflation is low does not justify a halt, it justifies its starting and going very slowly. Ryan we are to get the bank of england minutes later this week. You say you expect it to be a 90 vote but theres a chance it could be 72. Why does it matter . Athanasios it will help us determine the exact timing of when they will start hiking rates. Our expectation is february. If we get some surprising vote that could start even earlier. It just matters for the shortterm given that. Ryan the market right now is pricing at 50 likelihood of the fed hiking rates in september. Is that what you think . Athanasios we have been saying that there are risks for december. We will fill even more confident following yellens testimony. Our expectation is eurodollar at parity by the end of the year. This is consistent with a fed rate hike this year. Anna is there anybody that doesnt believe in this dollar stronger story . It is kind of worrying when you hear things that everybody believes. Anna athanasios when we look at position indicators, the market is nowhere is low on dollars as it was earlier this year. Anna is that because the market is a little bit less convinced that yellen can really follow through . Athanasios what happened last week was a surprise for the market. Also, since march, eurodollar has been very difficult to trade. Ryan the pound, where you see its going . The comments coming out of the yuan coming out of the u. K. And the u. S. Athanasios we think it has more room to weekend. Given that the fed will start ahead of the bank of england. Anna thank you very much for joining us. Head of fx strategy. Ryan we get earnings from apple, yahoo , and microsoft later today. Will china deliver growth for apple . Will we hear more from yahoo on its alibaba state spin off . Anna plenty more the tech stories. Were talking about ibm a little bit earlier with caroline. We will get her back a little bit later in the program to continue our conversation around that. Commodities, very much the order of the day. We have reached those levels not seen since 2002 on the bloomberg commodities index. That means we are now lower on commodities. It is quite broad, across a wide array of commodities. Weaker during the eurozone crisis of 2012. Ryan the oldest oldest around 1100 an ounce. Anna here is a story they need to know this morning. Ryan u. S. Oil fell below 50 a barrel and gold traded at a fiveyear low. The bloomberg commodities indexes Holding Losses after dropping to its lowest level since 2002, weaker than after the 2008 meltdown in the eurozone crisis of 2012. The u. S. Economy pushes the fed towards boosting Interest Rates for the First Time Since 2006. Anna the president and toshiba and two former president s are set to resign after they are sent to reside there are set to revise their earnings. They set unrealistic profit targets. It is the biggest such adjustment in a Japanese Company account since olympus with its 1. 7 billion scandal in 2011. Ryan Morgan Stanley earnings the estimates as recorded jump in trading in brokerage fees. Ibm reported secondquarter sales decline across all units. A 13 straight quarter of falling revenue. Anna elon musk says the investigation into the explosion that destroyed one of its companys falcon nine rocket was probably due to the failure of a struct inside a rocket fuel tank. He said spacex may have become complacent because it has grown in size and the majority of current employees have only known successful launches. Were just getting numbers through from hermes the handbag and Luxury Leather Goods and perfume. Sales, 1. 1 7 billion euros 1417 billion euros. 1. 17 billion euros. They say the consolidated turnover is equal to 2. 29 million euros. The growth amounts to 9 . In terms of their growth targets, they are repeating their growth target of 8 . Ryan the u. S. , europe, and japan are helping to make up for the showdown in china. Anna they are talking about japan being up 20 . Selective distribution network. Asia, excluding japan, up 7 . They say japan is maintaining its dynamism. Those from china are not so keen to go spend in those markets as they previously were. Ryan delta earnings from Pharmaceutical Company actelion. What are you happy is about from your earnings today . I am very happy because, of course, we have very good financial results. This is because of the success of our new drug. The drug that we discovered within actelion. This drug will replace our main drug and therefore it gives us a future. This is why i am very happy. Anna that sounds like a good reason to be happy. Can you tell us a bit more about that . When are you going to be able to pass sales . I think that we believe that maybe at the end of next year or the beginning of 17 the sales. I dont have the numbers in my head. In the longterm, they have reached the peak sales, maybe even better. There is a very good future. Of course, we can test this product. We might see some very good surprises in the future. Ryan i want to go on to m a. You have another drug awaiting approval. What are your sales goals for the drug if it gets approved . I think it is very early to discuss numbers before we get the label. I think that my goal is to have a very big drug. We have to know is that this is not competing. All the sales will be coming on top of the sales of the other ones. Therefore we will improve our final performance. Anna there have been many reports that you have been approached. Can you confirm if thats the case . We dont comment on these type of rumors. Actelions goal has always been to create a company with research, with innovation and with a fullfledged commercial organization. We dont need to help with any other company for our operations and therefore, our goal, i think, is to be able to have the shareholder value increase and increase our share price. That is the best way for delivering shareholder value. Anna does that mean youre not open to the prospect of a deal . I think it is very clear what i say. I say that today, the best way to create shareholder value is to remain independent. Ryan we are going to leave it there. We would like to quiz you more about that but i guess we need to move on. Thank you very much and congratulations on your results today. Anna we had earnings from sap earlier in the h