Anna welcome to countdown. Im anna edwards. Ryan im ryan chilcote. Anna at 6 00 lets have a look at the tech sector. Lets start with apple, because i have a chart here that shows the afterhours move we saw this was even after the Company Reported a record thirdquarter profit number. Revenues were disappointing. Ryan this threatens to remove again that apple saw that huge rally of almost 10 . It could be one of the biggest losses ever. Anna more generally, this was the biggest tech rally since october. Will that change in the session today . We have lots to talk about. Apple was just one of a few tech giants that reported in yesterdays session. That came afterhours. Lets get Caroline Hyde and paul sweeney. Great pleasure to have you. Lets continue the conversation with apple and what it is. Caroline its phenomenal when you put it in perspective we could see 66 billion dollars worth of its market cap erased. In perspective, that is more than bmws entire market cap. It is a record thirdquarter profit, as well many people are wondering why. Yes, they still climbed 35 , but people want to see more, in excess of the 47. 5 million. The Sales Forecast is for the next quarter that missed analyst estimates coming in at about 50 billion. What we are starting to worry about is the pace of growth. If we say 50 billion next quarter, thats only. 8 growth. We had tim cook saying that chinas turmoil is creating some nearterm speed bumps. The issue is iphones are still their cash cow. What about the other products . The watch he spoke enthusiastically about it. Tim cook sales of the want to did exceed expectations, and they did so despite supply trailing demand at the end of the quarter. To give you a little additional insight, through the end of the corridor, the apple watch sale was higher than the comparable launch. Comparable launch periods of the ipads. Caroline doing better than the ipad and iphone, but bloomberg feels there is probably about 1. 9 million watches sold. You divided it by the overall average selling price, and you get about 1. 9 million. Analysts were hoping for 3 million, 5 million watches. The market is doing well but the ipad is continuing to slump. This is why its affecting asia trade this is why suppliers are feeling the heat. Ryan we had another miss on earnings for microsoft. Paul we did. The core pc business, which is facing headwinds, were down 9. 5 globally in the quarter. I think there is also concern that windows 10 while it is certainly a very credible upgrade, they not be a game changer or a catalyst for growth. The core pc business remains challenged. On the flipside we saw some pretty good numbers out of the Cloud Business which confirms what we saw from sap. A Cloud Business globally, when you think about amazon still remains a very good story but if you are microsoft it is still the core enterprise pc business that remains a challenge. Anna how do you think they look on that note the acquisition . That note youkia acquisition . Paul the ink was barely dry they are obviously out of the phone business that i think they are very much into the Software Side similar to what they are doing with their android business. The phone Manufacturing Business is not for everybody. Ryan take a stand on apple it sounds like it is the victim of its own success. Is that a fair statement . Paul i think it is. There was a record quarter, that i think the real challenge is that it is simply an iphone story. The iphone unit sales came in below what they were expecting at that is the thirdquarter forecast story. Ryan but they sell 200 million phones of year and they missed by a million should we be concerned . Paul if you are an apple investor, you are thinking about given the valuation is pretty decent relative to some other stocks exactly. There is a tremendous amount of cash. Still a very strong story terms of products in the marketplace but investors continue to ask about the next big category. Anna Caroline Connan that is one big question what is the next big category . They are working on a new version of the ipad with a bigger screen, moreover a placement for the laptop. That is Something Technology companies will crack, trying to replace what businesses use. Caroline that is what they have signed deals with ibm. Interestingly, we also know they are working on a new iphone. They want to launch the updated september. The update in september. We are seeing a bit of a slowdown in china and i think what is so interesting is we have see not one but two heavily weighted stocks in the s p 500 microsoft is number two after apple they came out and disappointed. There is another tech joy that has, too. Yahoo is down 3 , Marissa Mayer not getting any slack, because forecasts again missed expectations. We could see sales fall the next quarter. They are investing, getting into mobile and social features it is working. You are starting to see sales up 60 but i think its the same with apple. People are getting frustrated at the pace they want to see more products and more changes, quicker changes from orissa meyer. Marissa mayer. Paul the simple problem the issue is that they have done a tremendous job monetizing their asian assets. Alibaba and yahoo japan have done a wonderful job, but three years into marissas tenure there is no turn around on the core business. Ryan thank you very much for the insight. We will stay with that story throughout the day apples miss on iphone sales and projected revenue weighing on the shares of its asian suppliers. Lets get more on that and what is moving markets in asia with david ingles. David . David good morning. Just to pick up on your conversation, i think when apple starts reporting, we really look at how its supply chain it goes through the whole asianpacific. The parts are made in south korea. They make their things on the chinese mainland and other places then they ship out. What we have here, and some of our clients may be familiar with what it looks like, it is essentially it breaks down the supply chain of apple. You have apple in the middle and these are the biggest customers. And there are the suppliers. Top 30 22 out of the top 30 suppliers for apple as far as how dependent they are on apple as a percentage of their own revenue 22 out of 30 are here in asia. As he would expect, if apple is your biggest client and they are performing to par, you would expect the clients across the stock prices to fall. This manufacturer some get 50 off their revenues. Similar proportions of the revenue for a lot of the other companies. You have a touch screen maker in taiwan you flip the board and look at japan, similar. Not all are declining but a majority are. This one gets 50 of their revenue from apple over to south korea, and you are seeing something similar. When you look at this board, some of these companies are both viable and suppliers of apple a good example is samsung. One part of the business sells them chips in the other is a direct competitor. That is a fairly complex relationship. How is this playing out in the market . We have seen better days. We are down about 1 overall, slicing and dicing across the sectors. You see that apple is playing out as far as asia is concerned telcos are down industrials are down. For lack of better way to describe it we are extending the sell we saw on wall street. I just want to say new zealand has a record high one day ahead of the rbn. That is their policy decision where they are expected that is what i have for the moment, back to you. Ryan david ingles, thank you. Anna lets stick with the Technology Theme and tell you that we will be speaking to one of the key suppliers of apple. David is taking us through what happened to the share prices and other suppliers, and we will speak to arm holding. We will be talking to them a little later. Also on the Technology Theme, lets talk about what our twitter question is. Is the tech rally over . I disappointing report from apple and microsoft and yahoo get in touch with us on twitter. Ryan it is 6 15 in london, 7 15 in frankfurt. Anna here are the stories you need to know. Although apple posted its best thirdquarter profits ever shares fell 8 in afterhours trading. The results fell short of shipments projected. They also missed estimates for a revenue forecast. Got new shares also fell in afterhours trading after Sales Forecast came in below estimates. Burress and meyer had been hoping to boost profits but secondquarter revenue remained slack. Microsoft shares also took a tumble in late trading after they posted their largest ever quarterly lost, leading toward a seven massive writedown for gnocchinokia. New Yorks Laguardia and jfk airports authorized a strike it is set to start tonight and continue tomorrow. Most of the employees are for Delta Airlines but others are for British Airlines and united. Ryan php is powering ahead with boosting its iron ore output despite falling Commodity Prices and that it global rut. Paul allen is standing by with more. Paul they arent troubled at all they are filling in the production boom as was predicted, and bhp Fourth Quarter numbers bear that out. 60 million tons produced up 14 on year, and beating bhps own estimates. There will be more in the coming year for 2016. Strong members also from the other divisions, particularly petroleum and only copper was down slightly. We did see bhps shares decline in trade this morning it was nothing to do with production numbers, though. Varied in the report, they said it will be a 650 million head to underlying profit. Really, nothing to do with the production, and they are completely undeterred about what higher or price is doing. They seem quite content to keep playing the volume game force long as they need to. Anna paul the governor Glenn Stevens spoke a little while ago in the early hours of the morning. Commodity prices continue to weaken and he has been saying that further cuts to the Interest Rates in australia are on the table it would be the first time this year and there is speculation that it could continue. Paul yes. There was a lot of shadowboxing around this Glenn Stevens took questions after his predictable speech in which a number of people tried to get information out of him to which he laughed it off. Central Bank Governors do play their cards close to their chest, let in terms of the Australian Dollar the headlines have been framing this in the context of oh the horror. But this is what the reserve bank of australia wanted. When stevens has been talking down the dollar four years, cutting rates consistently and saying he wants to see it and a lower range. That is what he got heading towards a sixyear low. He also pointed out in the speech that this has had a beneficial effect and they are beginning to see the expansion rate of a lower currency. Services are up half a percent which contributes about the same to gdp. He points out that it is the same contribution for the iron ore exports over the same period. The Australian Dollar is not at all troubling the reserve bank of government quite the opposite. Anna thank you very much. Paul allen. Ryan a busy day in greece the Prime Minister heads to the parliament to try and pass a second batch of measures required by greeces creditors. There is a lot of action in athens as the ecb gathers to discuss dla. We are joined by simon french. Another thing the ecb is doing is preparing to send another team for this bailout to assess how well those greeks are implementing the reforms, the austerity that they promised. How do you reckon that will go down . Simon it will be very popular with the greek people. The greek Prime Minister spokesman said a deadline of the 20th of august, trying to have a Technical Team on the ground having gone back to the creditors with the recommendation. The reforms we expect to pass this evening and the third set of reforms sometime in early august to cover product markets labor markets, pension reform. Some rather contentious Structural Reforms that strong economies are struggling to implement. We arent out of the woods by any means. Ryan you guys say there is a 100 chance of a greg set. A grexit. Simon i think that sometimes economists give ourselves a bad name. This is fairly binary if you scenario plan this, and i prefer scenario planning you either have fast contagion where there is a debt writeoffs and other peripheral countries go we will have a bit of that. The spanish, portuguese, irish electorate look for the same source of relief so you have fast contagion. Slow contagion, if greece leaves the eurozone and they restore the drachma, you need a few years before you start to see growth. Or you get a model through eventually, the first or third scenarios lead to the greek people saying enough is enough. I think the German Administration has gone we will take the slow contagion over the fast. Anna has one of the messages been then, that we need to be a bit more german if they want to stay in the euro . The other conclusion you come to if you think that is what we learned is that they hear that message in followthrough. You dont think that is deliverable . Simon i dont. If you look at the uks experience the test that we had, we failed on convergence and integration. Those are the two areas where the peripheral countries are finding it difficult to align themselves to the northern core economies. When you had a big economic shock like the financial crisis the economies the different economic medicine and that is a fundamental structural problem with the single currency. Without fiscal integration, you wont be in a position to deliver. They dont have the political firepower. One of the scenarios in terms of kicking the can down the road is have a mario monti style technocrat government. That looked likely quite recently when Alexis Tsipras lost a lot of support i think we are away from that position formally but to get through this package, he is relying on opposition that is what you have to do. Ryan you mentioned of u. K. We have the bank of england minutes coming out this morning. What are you expecting and what does it tell us about where we are going . There is a lot of headwind. Simon four days ago, this was expected to be another very boring bank of england minutes session. But mark carneys speech last thursday really change that he started changing the narrative from looking at the data to putting a timeline on this the end of the year being ready for higher Interest Rates. We have been there before, but i think the constraints in the labor market this time we are looking for signs of that moderate core at the center of the mpc. Mark carney, Christian Forbes signs that they will join on the side of looking for higher Interest Rates. Anna is that what you think carney was signaling . I thought the interpretation was that at the turn of the year, he would get better visibility on inflation, for example and the Oil Price Shock will have dropped. We will just know more about whether we are in a position to have higher Interest Rates. To think he was actually signaling that rates will go higher . Simon i think he was. Weve had q1 2016 for quite some time and i stick to that view. Yes, there are two key factors that you will want to wait for december, the strength of sterling supporting deflation, and also what goes on mediumterm on oil prices, which are seeing downward pressures. Should those two factors come to pass, that it will again moved to the right, but i think carney is right and probably reflects that moderate core, closer than they have been. Ryan what does that mean for the pound . We have been stuck in this range with the pound having trouble to get back to 1. 50. Simon and i think it will struggle in the short term simply because of the amount of structural weakness across the World Economy means that the pound can race ahead. Ryan simon french, thank you very much. Coming up on countdown, the bank of england minutes for the july meeting come out at night 30 this morning, but there is a desire to start tightening soon that could hike rates. More on that after a short break. It is 6 30 a. M. In london here at 30 a. M. In brussels. Anna apple posting its best profit ever in afterhours trading iphone sales climbed. The tech giant also missed estimates or revenue forecast for the current period. Yahoo shares also fell in afterhours trading. Marissa mayer have been hoping to boost growth by investing in mobile, social media, and video. Revenue remained relatively flat. Microsoft shares also took a tumble in late trading after the Software Maker posted its largest ever quarterly loss. Weighing in on the result was a writedown related to the purchase of nokias handset. The great Prime Minister will return to Parliament Today. Lawmakers are set to vote on a second package of measures demanded why the creditors. Ecb will discuss emergency liquidity assistance to give greece alive. Ryan 37 arrested four people in israel and florida. It was tied to the hacking of jpmorgan. We will hear the explanation for this complex story. It starts with pumping and dumping. What is that . Elliott pumping and dumping basically you encourage others to buy a stock. That is a pumping. Ishares go up. When shares go up, you sell the dumping. Two were arrested in israel. There allegedly involved in such a stock manipulation scheme. Theres been a separate case that the two arrests did place in the u. S. What is interesting is people from those allegedly involved in the money chest for business let involved in stock manipulation. They are old that is from the time at Florida State university. Additionally in a previously un