Investors cheer more cost cutting at barclays. The banks new boss says it will accelerate the sale of assets after delivering a sharp rise in q2 net profit. Good morning, everyone. It is 10 00 a. M. Here in london 5 00 a. M. If you are just waking up on the east coast. Heres a look at the u. S. Futures. S p 500 just fractionally higher. The dow jones is up and the nasdaq seen higher by 12 points. This follows yesterdays strong rally. The dow was up by more than 1 s p up by more than 1 . The major averages snapping a fiveday losing streak and closed near the highs of the session. Actually we saw pretty heavy volumes. 4. 1 billion shares were traded on the nyse versus 3. 4 billion that you saw. Today all eyes on the fed and whether the statement will give us any clues on when the fed will move ahead with its first rate hike but also one sector that did extremely well in yesterdays trading session is energy. Saw that up by 3 yesterday because investors came back in and bought some of the beaten down commodity stocks. Why . Its because oil prices bounced back quite tremendously in yesterdays trading session. We saw crude up by 1. 2 the biggest gain in two weeks. Lets show you what crude prices are doing right now. We are a little bit lower again so that gain didnt last very long. Wti crude is back heading towards 47. 76 up by half of 1 but spot gold is up by 2. 25 . How are your markets looking . Mixed bag. More green and red as you can see behind me in the individual chips. Weve taken back some of the losses earler on. Italian market down. 3 of 1 . We have the cac carant down. Volkswagen in the auto space actually one of the real losers in the session today. The ftse 100 higher by. 6 of 1 . Barclays liking the cost cutting in the stock taking that stock higher also in the trading session today. We did see, again, stabilization for some of these european markets following the gains that carolyn mentioned yesterday for these u. S. Markets. Big consolidation also in the commodities market leading into what were seeing as far as the Current Exchange markets. We did see that pull back in the dollar reasserting itself in the session this morning, too. Lets give you a look at what the cost rates are showing. Relatively unchanged. 1. 1062. The 1. 1050 level. Dollar yen 123. 58. It pulled back yesterday. Now what were watching here too, the aussie under a bit of pressure and sterling relatively unchanged, 1. 5615. Lets head out to shree for the asian markets. Were seeing quite a gain for the shanghai market today. Yeah. Stability tinged with caution is how i characterize this in the broader region. Weve seen stability return to main land china especially settling 3. 5 higher as you know. Thats in large part to the reaffirmation off of beijing to get back into the stock market to buy stocks to shore up confidence after the wrap that we saw earlier on in the week. Remember were down by 8. 5 settlement on monday. Some confidence has returned. Weve seen the sporadic bursts in the market continuing in the near term especially given the amount of leverage the margin that is still in the broader system. Elsewhere, one of the highlights of the fact that china stabilized. The Australian Investors liking that. Theyre up by about 40 points. The miners are back in favor which is good news given the fact as carolyn has pointed out, commodities had a bounce overnight especially oil. I want to highlight the composite as well rebounding marginally from 16month lows that we saw yesterday and i think as we get close to the path of fed normalization and the adjustment period in asia carolyn, the markets and the currencies need to watch the weak links, if you will most vulnerable to the first fed rate hike are indonesia the rupia, malaysia. And its important to bear in mind that both of those currencies have been languishing at 17year lows. So we havent seen this type of currency depreciation and these type of levels since around 1998. Remember very very stark, markedly different scenario compared to the debts of the asian currency crisis. As we creep towards normalization of the fed. Lets stick with the fed. Theyre not expected to announce a move when it concludes its meeting today but the big question is whether rate hike in september is still on the cards according to the latest cnbc survey investors are less convinced than they were a few months ago. Steve leaseman has all the details. Reporter as the Federal Reserve begins its twoday july meeting, wall street still looks for a rate hike in september but its conviction is slipping. The latest cnbc survey finds half of them are forecasting the first rate hike in september but thats down from over 60 in the prior survey. The growing concerns weak overseas growth a u. S. Job market where many still cant find as much work as theyd like and continued low inflation in the u. S. The key thing is that many people on the fmoc as you well know, need to be pretty confident that the inflation rate is going to begin at some point in the not too distant future to move back up towards the 2 target. So if the wage data in the labor Market Reports were weak i think that could be effective at pushing the lift off back. To be sure 82 expect the fed to hike in 2015 but thats down from 92 in the prior survey. If not in september, the second choice for a rate hike is december. And respondents still are optimistic about growth just not as optimistic as they were. They lowered the 2016 forecast to 2. 7 . Thats the fourth straight decline in the survey. 2015 they edged it up just a bit, 2. 4 . Behind the more pessimistic outlook is concern about Global Economic weakness. It tops the survey for the fifth straight time as the biggest threat to the u. S. Recovery suggesting to some the fed should delay rate hikes. You have a serious crisis both in china and continuing crisis in europe and greece and this is no time to do that because if they did, the dollar is going to go through the roof. You are going to see that cross parody with the euro in that case and u. S. Exports simply cannot take it. Reporter the probability of a recession in the next year rose slightly but is still low by historical standards. Stock market lows are still winning out on wall street but theyve tempered their optimism. They now look for 3 gains in the s p this year and 9 in 2016, again, both down from the june survey. So last call on zero Interest Rates from the fed is still coming, but wall street thinks closing time could be a little later. Steve leaseman cnbc Business News in washington. Luke bartholomew investment manager at Aberdeen Asset management has joined us around the desk. Good morning to you. Thank you so much for coming in. You have your money on september. What exactly do you want to hear in Janet Yellens statement that will confirm that view. Youre absolutely right . Were looking at september. Im not expecting anything from the feds Statement Today that will confirm or deny that. Im expecting it to be quite a bland statement. There are several reasons for that. First of all, the fed doesnt want to tie its hand give too much precommitment. Still important data points. Second of all, the fed is trying to move us away from the linguistic clues and more towards economic guidance. Third of all, i think the fed feels its closing up. The hikes are coming at some point, get ready. Doesnt need to hold our hand anymore. No one knows essentially. I want to come back to the point ive made over and over again. If you take a look at the futures, they indicate that the markets only pricing in at 17 17 chance of a rate hike in september. A lot of people are actually expecting september. Why is that not reflected in the market . Sure. I guess it sort of reflects the way that the tail is. If they dont go in december it will be september. Its not a smooth probability that they will go into that. Just because the market has to be a weighted average of all of those probabilities, that naturally skews the progress of september down in terms of pricing. I was going to say, this is the point. Most analysts and economists that you speak to are going to go september but yet the market doesnt believe that. There is a disconnect. The fed do have a signaling problem here if they indeed want to go in september. And they dont like surprising the market. Theres a disconnect there. I mean its been the case for a long time right . The dots have been well above the price in the market. They have consistently believed the fed will not deliver the level of tightening that they have applied, but the fed isnt going to tell us you know to the very letter and very date precisely when it will go. It will be a little bit of a surprise. I feel theyve given us enough signaling. At the risk of coming off looking dovish particularly at the external. That will signal september. I certainly think to the extent to which there are people in the market looking for confirmation in september and that is provided, yes, it could end up that the market sees these to be relatively dovish. I will take that as opportunity to resist market pricing. I still think it will be in september. Do you think the economy is Strong Enough . Housing data has been somewhat Strong Enough. Retail sales data that was poor. Consumer makes up 70 of the economy. Without improvement in jobs data, without cbi, is it Strong Enough to stomach a rate hike . Well i mean on the question of should im probably in the campus that it would be better if the fed was slightly later. I think the risks are skewed that the worst if they went too early than too late. Looking at what the fed is telling us i do think they are much more comfortable with the situation. They see unemployment to a level traditionally with full employment. Wage growth will start to pick up and you no he i think they do have some comfort that inflation will start to pick up to the target over time. And there has been a sort of subtle shift in language particularly from yellen. She used to be very keen on this idea of optimal control and you go later rather than quicker and steeper. Now its much more a story of going earlier and more gradually. She did that before. She said decisive evidence. She dropped that. The question is how does she move on from there with this statement . As i said i dont think the statement is going to give up too much. There will be a slight upgrading of the economic language. Then its how you data prints over the next couple of days. Given us your best trades. Safe haven buying . I think its a curve flattening environment. I think the knockout is going to be the dollar right . Its clearly very consensus but it would definitely work. All right. Luke bartholomew, thank you so much for coming in today. Investment manager at Aberdeen Asset management. Over 1 million worth of gold has been discovered at the wreckage of a spanish fleet off the coast of florida. 51 gold koins and 12 meters of gold chain and a rather coin valued at half a million. The fleet sank in 1715 during a hurricane. It coincided with the 300th anniversary of the wreckage. A new window of opportunity for microsoft. Well, we talk about their new release of windows 10 and whether its going to be enough for the company to win back the p. C. Customers. Thats coming up on worldwide exchange. Welcome back. Theres a downward trend after posting the first game in five games. Tom bradys four game suspension has been upheld by the nfl following the deflategate scandal. Lets give you a rundown of what to watch this trading day. June pending home sales are out. Thats at 10 00 a. M. Eastern. These contracts on sales that are yet to close. Its expected to rise from may. Anthem master card General Dynamics and Northrop Grummond will have reports. Lets go back to our top story. Twitter shares plunging after the owner calls the performance, quote, unacceptable. Julia has the details. Roller coaster ride for twitter in after hours trading. First it traded higher on bottom results that surpassed expectations. Earnings were 3 cents better than expected. Revenue grew 61 on higher engagement and ad rates. The company added 2 million more users in its core service ending the quarter with 304 million monthly active users. Fewer than consensus estimates including the sms fast followers. Users usually in emerging markets on feature phones. They ended with 360 million users. Anthony nodos comments sent shares plummeting in after hours trading. To be clear, however, do not expect to see sustained meaningful growth in maus until we start to reach the mass market. Interim Ceo Jack Dorsey saying hes not satisfied with twitters user growth saying hes realized how many changes the Company Needs to make and how hes focused on simplifying twitters service and communicating its value with a new marketing strategy. We havent done a great job at aligning the entire company around our total audience strategy. We are in the process of implementing a stronger discipline of direct ownership and accountability that clearly serves a single strategy in order to increase our reach, value to people around parand participation. The People CompaniesMust Come First and be at the center of everything we do. On the up side noto said twitters ad load is 1 3 of where the company sees its longterm potential. Theres plenty of room to add new advertisers. Back over to you. Tale of two hearts. High expectations for facebook as it reports q2 earnings after the bell. They suspect video to drive earnings with continued growth in the number of users and how long they spent on the site. Hannah fitzgerald expects mobile to account for 75 of revenues in q2. Additionally it believes instagram, whats up and opulus will provide up side for the group. Weve been talking a lot about twitter this morning. Initially shares were higher then they were lower after people realized this company has a problem and finally management is very, very blunt about it. Thats amazing, but only if youre just as blunt about addressing some of those problems. On the call the cfo and the interroom coo, they mentioned what the problems were. Focus on more disciplined product execution. They say thats been lacking in the last couple of quarters. Simplify the site and they want to better communicate the purpose. That is a very very long laundry list isnt it . Absolutely. Right now they need a pefrm nent ceo. Thats another issue. How long does the market give them to do this . Its about saying were in the pacing, trying to start a turn around for the stock. What does that look like . How long are they given by shareholders particularly given by valuations. Were talking 30 times the earnings versus 50 times for twitter. 50 times though . Really . Yeah its huge. You cant justify it really because its not really driving traffic. Facebook driving 20 times more traffic than twitter does. In terms of user base its simply not growing. Less than 1 was the growth in the Monthly Average user base quarter on quarter. Thats just not enough for a Growth Company that is given these kind of multiples. The acting ceo said 95 unaided brand recall. Everyone has heard of twitter. The question is how do they manage to monetize and monopolize and get people using it. Weve been asking on twitter. Yeah. I believe, twitters management theyve called the companys performance, quote, unacceptable. Can they turn it around . Is it too late for twitter. Kimberly has written in bluntness is effective for a ceo only if he has a solution to the issue. Thats what we were just talking about. Exactly. You had a really good tweet. Yeah birds eye view said twitter was the best results to follow during the greek crisis. I would pay 10 a month for the service. Wow. Thats interesting. Rather than saying look, this is only a tool for businesses journalists. How do they make it more appealable to a broader audience. Charge for the news source. Would you pay 10 a month for the source . I dont know. Thats quite a lot because were used to it being free. Compare it to apple, itunes same price. I pay. I should be willing to pay. I love twitter. I like reading twitter. Were journalists so thats thats the point. Monetize what you have rather than trying to expand it. I have one viewer who said youre asking not question on twitter, irony . For us. Absolutely crucial. Lets talk about microsoft. The company is rolling out windows 10 as a free upgrade for people currently using windows 8 or older versions. Microsoft alienated many traditional pc customers which focused heavily on features for tablets. Windows 10 brings back the old start menu and lets users pin items to their task bar. Nokia is heading into Virtual Reality with the release of a new camera. This is the first Consumer Product released by the firm since microsoft bautd the devices business two years ago. With the head set face filling up nokia is looking to tap into the creation side and they will film the content in real time. Amazon wants one day to deliver orders to your doorstep by drone. It wants to designate special air space for those devices. At a Nasa Convention the company unveiled a plan for drone zones preserving space between 200 and 400 feet off the ground for state of the art high speed drones to keep things safe amazon is proposing a 100 foot cushion just above that. They made a no fly zone as a buffer between drones and other aircrafts. Do you think they told the birds about it . No not quite. Aircraft. We have to take a quick break. Coming up meet the best boss in the world. All the details on the ceo who shared 27 million with his staff after selling his business. Did they turn up for work on the following monday . Join us after the break. Were back in 2. [ male announcer ] some come here to build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. Lets take a look at todays other top stories. Chevron is laying off 1500 workers or about 2 of its global staff as it cuts costs to upset falling oil prices. Nearly all the layoffs will be in texas where chevron has expanded in california where its headquartered. The company will cancel 600 contractor jobs and wont fill nearly 300 empty positions. Chevron shares up by 3. 7 . The worlds most popular boss. He sold his firm and he decided to divide the 27 million worth o