We actually hit we set for ourselves in terms of cash flow and process from sales at this point in time. So thats helped us continue to maintain the dividends. Investors fear more cost cutting at Air France Klm. Shares take off after europes second largest carriers despite slipping deeper into the red. Amazon delivering for investors. The online retailer surprises wall street with ads 92 million profit in the Second Quarter as its bet on the cloud pays off. Shares skyrocket after hours. Welcome, everyone, to the show. Some Economic Data could bring to you right now, eurozone july pmi manufacturing coming in at a 2. 2 versus the reuters estimate of 52. 5. The flash composite pmi at 53. 7. Interestingly enough, the weaker euro, price cutting not helping foreign demand at this point. This after the german pmi number disappointed. We were looking at the euro in session lows and right now its remaining in a similar position. Euro trading at 109. 47 against the u. S. Dollar. Eurozone business waning at the start of the second half. We are looking at the flash composite pmi for the broader eurozone at 53. 7. Now, shares of pearson are continuing to rally after it raised its dividend despite a fall in the first half operating profit. It comes after the uk Publishing Group announced the sale of its Financial Times due to japan rival nikkei for 844 million pounds. The group is due to hold a press conference in tokyo any minute now. We will bring you that when it happens. As you can see were just waiting for the leaders to take the stage. In the meantime lets discuss more about this deal catching many by price. Catherine is joining me around the desk. How are you doing this morning . As you said this did catch people by surprise on a number of matrix. First, starting off with that price, really chunky evaluation. A lot of analysts in the media space have been saying that pearson would struggle to get that. Its really surpassed that. Even with the 50 stake in the economists the London Bridge office which is, of course a really valuable property asset, too. It looks like the amount theyre willing to pay has really been more than people expected. And, of course actually it was nikkei itself that was come as something of a surprise. The german media group, of course and then the japanese nikkei swooped in at the last minute and said were going to offer you a higher bid. Of course and came in with an allcash offer which is hard to turn down for a company like pearson. And, of course bloomberg being interested and other groups too. All right, catherine, the Group Holding that press conference is starting right now. Lets listen in to what they have to say. Translator and to your right, mr. Hido tonomura senior managing director. And seated to the left mr. Dieskai owakowa, who was in charge of negotiations. In the interest of time we would like to hold this press conference for an hour. At the entrance we have placed a copy of the press release both in japanese a english. This has been released last night. And the process that led nikkei to acquire Financial Times is described on this press release. Now, the chairman of the nikkei is going to give you an overview of the basic thoughts of nikkei acquiring Financial Times. Thank you very much ladies and gentlemen, for taking your time out of your busy schedule to attend this press conference. It is, indeed a great pleasure for me, as chairman to be nouns the acquisition of Financial Times. Yesterday, we have reached an agreement with pearson. The Parent Company of fm times group. To acquire Financial Times. Now, for nikkei to continue growth, i have always thought that we have to have Global Coverage as well as digital coverage and Global Coverage is something that i have come to emphasize in the management of nikkei in the past several years. Ft and nikkei have long collaborated in terms of exchange of Human Resources and joined and collaborative editing of various articles. In facilitating communication with Financial Times, i have come to realize that the philosophy and values of financial time is exactly the same as ours so i have come to think that they are the best partner for us to go global. Now, in the past several years, i have used every opportunity to approach the top management of pearson that we are very interested in running Financial Times in the future. Now, pearson had decided to sell their shares in Financial Times and had approached us for a possible acquisition. Financial times has a history of 127 years and has won the great trust and confidence of subscribers throughout the world. Not only europe but throughout the world. And there is a global trust, a financial trust, that Financial Times that has been developed under pearson for more than 50 years and we should not compromise brand value and we feel great responsibility to continue improving their brand. And, of course the trust of Financial Times is based on the fact that their reporting is of very high quality, as evidenced by this very insightful coverage and also this is an indispensable media for the key individuals of various countries in the world not only in the financial sector, but in various financial circles. Now, the creedo of Financial Times is without fear and without favor. So do not be fearful of anything and do not play up to the specific segment of the leadership is the creedo of Financial Times. And i believe that the value of Financial Times and nikkei is very similar. We have this creedo of fairness and impartial and with this value system that we can share, i am pretty sure that we can join hands and proceed hand in hand. This makes me decide to go for the acquisition of Financial Times. Now, the policy of the Editorial Department of Financial Times that is headed by mr. Lionel barber is something that we wholeheartedly trust. And what is most important for a media is that the independent of the editorial rights should be insured. And so even after Financial Times comes under the umbrella of nikkei after we complete all the procedures for acquisition, the journalists and the employees of Financial Times should concentrate this effort to pursue high quality journalism and continue their work as they have used to up to now. I trust mr. John ceo and other members of the top management of Financial Times very much and when i met him for the first time, he told me that the before being a manager of a company, he is a journalist. And he asked me that i have the same behavior and attitude. And so amongst the leaders and the employees, the Financial Times, there may be some concern that nikkei on asian media coming to acquire Financial Times may result in making Financial Times lose the partisan aspect of british media. But fd is going to be ft. It remains unchanged. I have already communicated fully to mr. Litting that ft could become even much stronger as Financial Times as they used to be is important for nikkei as well. And the speed of Global Economic change is accelerating and requirement of the subscribers for a timely report is getting much more demanding and so we should have this friendly rivalry between Financial Times and nikkei and become a true global media that covers both asia, europe and the United States. All right. This is the chairman of the nikkei addressing the press on the opportunity in the ft and why the nikkei is buying the ft group. The chairman saying to grow we need global and digital coverage and that it is a great pleasure to announce this acquisition. The ft and the nikkei has the same values and the ft has won the great trouble of global subscribers. But perhaps the real roud route of this deal has to be the coverage. The credibility that the ft has a as a brand. Ironically, that is something that some journalist has expressed some concerns. For example, the ft has broken stories like the olympus scandal and the nikkei has been known as a slightly more established voice in japan. In fact, you even have the olympus whistleblower saying they werent kind of as eager to look at that scandal as the ft were. So that is interesting that the chairman is really putting that emphasis on the continued editorial of the ft there. Absolutely. I also have questions to what happens numbers for pearson. They have been in this consolidation mode. It will be interesting to see what happens. Now, switching focus to china, chinas factory activity dropping to a 15month low in july. This is the fifth consecutive month reading below 50 signaling the sector remains in contraction territory. New order and new export orders fell in june. Shanghai stocks paring early gains to end the session in negative territory. Lets talk more about this data with john zu Greater China economy at hsbc. A pleasure to have you on the show. How are you doing . Im good, thanks for having me. Thank you very much. China Manufacturing Activity disappointing the street once again. When does the data start to surprise to the up side . I think you perhaps have to give it a bit of time. These stimulus always take some months. The lag certainly variable. I suspect it will be in q3 oq4 before you see the data turning up as a sustained pace. Do you expect the pboc to reduce the amount of cash to maintain its Economic Growth at 7 Going Forward . Yes, we do. So were expecting the pboc to cut rates again in q3 and also to cut the required reserve ratio again in the q3 and q4. So we think the pboc should be more aggressive in Monetary Policy easing but also we expect the government to really ramp up some of the Infrastructure Program and to provide a much more direct stimulus to domestic command. So both Monetary Policy and physical policy have roles to play. Clearly, the pboc needs to take a step back and we need to do something more given that this Economic Data continues to disappoint. I think its not quite the time to go that unconventional. At the end of the day, they still have plenty of conventional flexibility. Interest rates a long way from zero, so china is not in the kind of liquidity trap or the zero lower bound that many other Central Banks are in. So you have to remember unconventional effects, both the fed and the bank of england had several rounds of qe before you saw saw, really, any impact. Its worth the conventional policies before you have a better idea of how to transmit into the economy before you have that option. I want to get your thoughts on the movement that weve been seeing in the chinese equity market. Is the sell over . When i look at it from a macroeconomic perspective, my worry, i suppose, would be whether this has a big impact on the rest of the economy. And i have to say, in perspective, china stock market is still relatively small if you compare it to the size of chinas economy. The stock market simply doesnt finance that much Economic Activity in china, unlike perhaps more advanced economies with much more developed stock market. So in my view i suppose the impact from my perspective is relatively small, both in terms of impact on say, Corporate Finances or on house holes welt. At the end of the day, the stock market still plays a relatively minor role in chinas economy. When you have a company like apple reporting double digit sales in china, it doesnt seem like the volatility in the stock market at this point is impacting consumer demand. John were going to leave it there. Thank you so much for joining us. Were just getting some news here on an ipo. According to the dow jones, China Railway signaling to list on the Hong Kong Exchange on august 7th. The China Railway signal to sell 1. 5 billion shares in range from 6. 30 to 8 dollars and hoping to raise 1. 8 billion in this ipo. Coming to a sen ma near you, Jurassic World 2 gets a release date with leading man chris pratt returning to the screen. More details on this after the break. Welcome back to the show. Lets take a look at european equities. Weaker than expected Economic Data of course, not helping the bulls out there. In the meantime we are looking at the stoxx europe 600 index higher, just by 0. 3 . As you can see on the chart, we are at session highs, despite eurozone pmis coming in weaker than expected. Specifically in france and germany. Lets take a look at how european markets are trading. Too many things happening here in the uk. First that lawsuitly hawkish mpc Meeting Minutes and yesterday lackluster retail sales. That sent the pound lower. Right know we are looking at the xetra dax, the german markets at 11,531. Just up about 20 points. Cac 40 seeing a gain of 20 points and the italian markets posting a gain of 123 points. But we are higher at this point on friday. A number of earnings out of france to bring you up to speed with. Sales shares are at an alltime high after fourth half operating profit hit 473 Million Euros, far above analyst expectations. Both jpmorgan and barclays have raised their price target on the stock, up right now, about 7. 9 . The systems in the green after Strong Revenue in the Second Quarter. The results, which came in after the bell last night, prompted the French SoftwareServices Company to upgrade their 2015 revenue outlook and you can see the stock winner today up about 1. 7 . Switching focus to Airlines Air France klm announcing a 300 million cost savings program. This after europes second biggest air Network Posted a net loss of 79 Million Euros in the Second Quarter. Lets get more on this story with stephane pedrazzi live in paris. Stephane. Hi, seem maa. Happy friday. The market consensus was more or less a break even for the airline in the Second Quarter. All the gains from lower has been fed by negative currency effect. Air france klm spends roughly 42 of its profit in dollars. A gift from 25 of its revenue in the u. S. Currency so its suffered from the weaker euro. It also suffered from the competition of airlines in europe and from the competition of gulf carriers on international level. All in all, Air France Klm wasnt profitable, but decided to implement some additional Cost Reduction measures this coming on top of the 2020 plan that the competitor is already working on. Air france also asked the pilot of its french unit to accept the new productivity agreement by the end of september. The dutch pilot, the pilots of the dutch unit have already accepted the productivity agreement without an agreement said the ceo. Severe measures will be to be implemented in october, including some cutbacks on routes on the long hold net worth. All in all, air france confirm its full year financial target and because it has announced additional Cost Reduction measures. The stock is trading higher this morning despite the loss which was wider than expected. Absolutely. One of the bright spots. But on the down side stephane down just about 0. 1 . Its first half operating profit missing expectations as the french food food giant dassa u suffered a hit on its baby food unit. It decided to sell its baby food unit in china, trying to restore the ground on its own. Then it decided to pull the plug. The french group will get a new stake in dumex dairy. Dumex suffered a sharp decline in sales reputation over the last few years after a Company Nation scandal in china. This had a very strong impact on the reputation for them. Dane thought it would restore the Brand Reputation on its own but eventually decided to sell it. Danone consumed 4 to 5 organic growth target for this year and believes the price of raw materials, which is very important for danone will see a limited drop this year. Back to you. Thank you so much. Shares in amazon soaring 17 . That is one move that we are watching today in after hours trade after the online retailer blew past Second Quarter earnings and revenue estimates. Our own john forest has all the details. Amazon delivered blow out earning results for the quarter. On the top line revenue came in nearly 1 billion higher than analysts expected in the consumus at 23. 2 billion. And then there was a profit nearly a half a billion doll