Thats what we are trying to achieve. Roche sees profits and sales fall in the first half but a turnaround has already begun helping with the full year outlook. Since june and now july, hospitals have opened again and patients are returning to hospitals. We see our sales recovering. Thats why we returned our initialo initial outlook. Sales of unilever as sales of ben and jerrys and more in north american sales the outbreak continues to weigh in many markets. I would say latin america is in the throws of it. We are seeing significant increase in africa and south asian continents topping the stoxx 600 sending shares in the french ad firm and the british rival wpp higher a very warm welcome to strooinz lets kick off what we heard from roche maintaining the full year outlook. Blaming the 4 slide in sales and 5 contraction on the decline of net hospital visits due to the coronavirus pandemic. Telling cnbc earlier that company has started to see hospital visits recover. You had seen a strong decline actually in the months of may at the height of lockdowns when many hospitals literally closed down except for covid19 patients now since june and july, hospitals are open again and returning to hospitals well bring you more later in the program. Unilever has posted a smaller than expected decline on sales in north america helping offset the impact of the pandemic saying the crisis will hit the market hard. We are seeing the ago gags of emerging markets become helpful. China is almost in the crisis of activity i would say latin america is in the throws of it and we are still seeing significant acceleration in sub Saharan Africa and south asian continents we are particularly focused on protecting our peoples lives and livelihoods in those areas where the disease is still taking off it is very easy in the bubbles we live in in western europe or north america that global sites are still going through acceleration of the disease often with weakened health care systems. What does that mean for your business with regards that india and latin america are important parts of your business weve reported this top line approach enormous volatility. Businesses like our hand hygiene, surface cleaning and inhome eating basics items people buy in the super markets are growing 20, 25 . Other parts of our business like restaurants are very slow. That is true geographically. There are parts of the world we are seeing booming demand where particular government lockdowns, which we approve by the way to protect peoples well beings those tend to have an Immediate Impact on the business we are seeing the ability to respond to these huge swings in demand unilever shares trading very strongly analysts looking for 4 decline in underlying sales growth and came in flat a big day for earnings beyond and the trend that seems to be coming through are results much better than analysts expected even though they are showing a decline. We are seeing shares in the company react very well. We want to focus on earnings today. Well see the stocks rally a half a percentage now and pull back nearly 1 investors eyeing those results from tesla and microsoft is state side now investors are digesting that as well as our earnings alone. Lets look at the sector. Weve got a pretty evenly split board here autos are up gains accelerating we heard from daimler. They reported better than expected results Household Goods up unilever, food and bev and chemicals round out the Top Performing market. Utilities, financial services, insurance, media and travel and leisure. Lets bring in our first guest this morning, head of research and strategy, state street global advisors. Thank you for being with us. Im curious how significant these earnings reports are as we headed into the earnings season, it felt like the market was much more focused on the longer term given the abilities companies have and the known fact that companies were going to suffer this quarter, yet we are seeing pretty big reactions on the back of results good morning, julianna. What we saw is because of the lack of ability, the market was being forced to look at the medium or long term now we are Getting Company guidance and low baselines. We are seeing relief not just because of the supposed beats but also because they are starting to get visibility on what that looks like going forward. It is a combination of beating and low baseline and visibility which we didnt have up until now. You guys are fairly bullish on global large cap equities what will be the driver for here in further gains where some stocks have already rallied significantly from march lows. We believe rates will remain lower and the yield curve will remain flat for a long time. If you put those together, that means growth where you see growth is in large cap tech and those that have been beneficiaries of the changes in behavior after the covid pandemic we think those stocks even though highly valued remain well placed in the medium to long term going forward. How do you reconcile this view with the view that europe is at a turning point in the European Recovery Fund approval is going to change the structural nature of the European Union and really provide support for european markets. Europe, a much more sicyclical value than the u. S why dont you like the support its got . That is still positive. However, there are always going to be head winds in europe theres brexit that is a louisiana. You are right to say a Recovery Fund is a positive for europe. But the highway of financials in europe which we think will remain challenges. The highway of energy in europe will remain challenged by low oil prices will continue to remain notwithstanding the risk that will come from brexit the Recovery Fund is a good thing but there are too many things facing them now when you look at what supported the rally in march, the initial driver was the liquidity in the banks in particular and fiscal stimulus now we are closely eyeing washington as they decide on more for u. S. There. Should investors be worried about inflation in the near term we think inflation is anything to be worried about we can talk about supply and bottlenecks. Really, we think covid has been largely deflationary in the near to medium term and that is a plunge in oil prices as well despite that, we think it is the factor that consumers are going to be relatively slow to return to markets that they have been absent from. Forced to have been absent from in the last few months we think that is the least of investor worries for now for that point, for investors to be cautious if we do get more support, how much of a difference is that going to make here in the uk to get people to visit restaurants and pubs with the new vouchers in place how do you reconcile that with more stimulus being thrown at them. Is it going to be fruitful we are afraid and weve done some investigating globally that fear of the Financial Security will outweigh these to encourage the spending people have put a lot of cash met forricly we are seeing high cash values from retail investors, that is the high asset that will come into the market rebounding there is still a lot of cash on the sidelines. We have a high cash balance on the tactical return it does feel like it will be a slower return to the markets despite the stimulus what will it take for you to deploy that cash one thing a lot of people are waiting on is a medical solution so a vaccine so we can stop worrying about these rolling lockdowns and cases rising so thats one thing the resolution about u. S. china trade. That will be another thing we have to look to to become more positive we need volatility to be taken away from the markets. At the moment, there is this rumbling level of background ahead of us and investors on the sidelines from where wed like to be at the moment. Before i let you go, your best trade you could put out there for viewers. I think perception right now. Do not get out of the market but look to protect yourself another is to have strategic hedges in place. And well keep that one. Thank you for sharing your time with us this morning. Tesla shares jumped after the automaker reported the fourth consecutive profit. The stock is now eligible to be included in the s p 500. We have more on the release. Shares of tesla popping after the bell as the Company Reported much better than expected earnings profit of 2. 18. The street was expecting them to ink out a profit of 3 cents in the quarter. By the way, this is the fourth straight profitable quarter for tesla. The last hurdle that needs to be cleared in order for the company to be included in the s p 500. Some numbers within the numbers. Operating cash flow, 418 million. Auto revenue down 3. 4 but made up for that with revenue increasing by 317 million model wide production happening in california is increasing. As is production of chinamade model 3s that is an area of growth. Tesla is saying it is reaffirming its target of delivering a half million vehicles this year thats one more reason why the stock moving higher after hours as tesla reports much better earnings than expected reporting from chicago shares in microsoft fell in after hours trade after the tech giant saw growth in the azure cloud service. Falling below 50 percent for th first time talking about beating estimates on the top and bottom line in the work from home environment smes cutting back on tech spending microsoft also gave lower than expected rise twitter expected to report a loss when the Company Posts Second Quarter results today a tumultuous quarter battling after a number of highprofile sites were hacked. President trump discussed after it censured one of his posts following the death of george floyd. You can follow us on twitter and tweet me directly at cnbc julianna curious your thoughts and questions. Speaking of earnings coming up, daimler shares are up after it widened losses and saw plunging car sales but they werent as bad as analysts feared well break down the numbers after the break. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Welcome back weve got some news weve been following. German prosecutors have rearrested wirecard former executive. The cfo and others also taken into custody publics shares jumped. Still saw ad sales fall but the addition of new large clients such as disney and bank of america helped ubisoft has posted a 17. 6 rise in sales. The french video game maker has seen record levels of engagement due to the lockdown but also dealing with a probe into allegations of Sexual Misconduct the chief operating officer resigned ubisoft has vowed to take action in any issues in their work culture. Daimler sales plunge as the pandemic hit the auto market around the world the carmaker fell 30 as the net loss jumped 1. 9 million euros. Annette with more on this story. Daimler shares are reacting quite well what is so reassuring about the results . I think it is about the outlook they seem to be picking up the demand already they are seeing a rise given the amount of the coronavirus i guess it is about the bullish outlook and the new ceo at the top of the company more than a year is managing costs now more successfully and why the Second Quarter is better than expected. That we knew because the company prereleased. The outlook is crucial the top end of that range is doing so well. Clearly thats the high margin business thats also where they want to grow in the future according to reports here in germany that is the focus of daimler not so much with that high margin as the big suv and sedan. Talking about the suv where daimler is seeing demand going very strong. They are saying they see a favorable development. I guess there is a lot to do for the company in terms of restructuring. A lot of job cutting globally up to 30,000 jobs but there on the right track thats why the shares are most likely up. Back to you. The number of coronavirus cases worldwide has exceeded 15 million. More than 622,000 people have died from covid19 the u. S. Is currently the worst affected country reported the biggest daily singleday jumps in deaths earlier this week. California has reported the biggest jump reporting more than 12,000 new infections on wednesday. With more than 409,000 new cases. The west coast has officially surpassed new york we have this report. As hospitals and hot spots face a crushing wave of Covid Patients tonight, the death toll hit a new high more than 1,000 deaths reported in 24 hours. These deaths are premature preventable deaths with 40 states responding, tonight, california surpassing new york fewer were tested and the death toll was more than four times higher hand new york plaguing the region that led the country in stayathome orders but now being crippled by covid19 here in los angeles, officials are struggling to conduct Contact Tracing for those who test positive perhaps fuelling the spread of the virus. News is also grim along the arizona border 55 of those tested yesterday have the virus it is a very serious. Today retail giants, home depot and kroger will require masks in all locations joining ohio, indiana and washington, d. C. And baltimore which are expanding their own policies amid a crushing growth and warning. I dont see us eradicating it but i think well bring it down to a low level that wir not in the position we are in right now. At niagara falls, images of tour bolts tightly packed and canadian boats sparsely attended larry kelly spent 51 days on a ventilator my wife saved my life she wouldnt let them pull the plug kerry lost his fight against covid19 overnight surrounded by his wife and children there to say goodbye. We were able to have the opportunity to tell him how much we love him. Tonight, the lives behind the numbers as the death toll and the heart break mounts reporting from los angeles. Still ahead, well have more from our interview with the eu commissions as he details how the block will pay for the 750 billion euro recovery package. Welcome back to street signs. These are your headlines autos drive markets higher tesla posted a profit for the fourth straight quarter. Offsetting factory shutdowns with strong deliveries and cost cuts we want to be slightly profitable and maximize growth and make the cars as affordable as possible. Thats what we are trying to achieve. Roche sees sales and profits fall in the first half but a turnaround has already begun helping the pharma giant confirm the fullyearo outlook. Since june and now july, hospitals have opened again, patients are returning to hospitals and we see our sales recovering thats also why we conditifirmer initial outlook. Sales sweetener as ben and jerrys and the magma maker telling us the outbreak continues to weigh in many markets. I would say latin america is in the throws of it. We are still seeing significant acceleration in sub Saharan Africa and south asian continent. And publis tops the stoxx 600 with sales better than expected. Sending shares in the ad maker and the british rival wpp higher lets get a check on european markets. Weve got green across the board out in the lead about 1 with the auto sector performing very strongly this morning on the back of those tesla results. Also better than expected numbers. The cac 40 up and the ftse mib lagging a little bit taking a look at fx markets, what are we seeing as the current say pair trading slightly higher around 116 just a touch under the pound trading a little weaker and Still Holding near recent highs around 127 European Executive has rejected suggestions the blocks virus recovery package would be repeated telling cnbc it is a temporary enforcement. Following marathon talks earlier this week. We asked dombrovskis how debt is raised for this. The recycling of plastic and new resources including digital tax and additional revenues from carbon emission and adjustment mechanisms to give some examples and it was agreed that European Commission soon will be coming with more complete proposals in this regard. As regarded to money, we are going to raise in the markets. Either we are going to final Additional Resources or through other eu state contributions which leads to my next question, really increasingly, as the Commission Takes on board its own revenue raising powers, is what weve got the fiscal convergence of 27 through the backdoor well one can see that it delivers certainly stronger fiscal cooperation whether we use for convergence that would be discussed it is worth noting that the eu budget is typically around 1 of the gross income now with the recovery package, it is going to be bigger but in any case, the ceiling which we agree will not exceed 2 . Which compares with the budget that easily range in 40 to 50 gdp even more than that. In any case, the eu budget is relatively small in size to compare with member state budget indian it Consulting Company has named delapo are everyone te as cfo after serving as cfo for cap gemini welcome. Thank you for being with us. This no doubt has been a very busy time for your company employing Cloud Technologies to help companies adjust to the digital warld. Tell us about the activity youve seen over the past couple of months. First of all, good morning and thank you for inviting me. It is a fantastic pride and honor for me to join wipro it is a company ive been competing with the last 20 years and learned to really respect and now being at the helm of the company is a great privilege in quite unusual times this is totally unexpected but this is the time where we are. I think during those last months, the wipro organization and the teams have done an incredible job, really to stay close to the customers to stay close to the employees and make sure we are keeping safe our employees and continue to deliver the services. 90 of our company is working from home. A high intensity in the way our employees are connecting with our clients ever single day. One lesson out of this crisis is the Technology Matters clients need to look at ways to become more digital. The cloud is needed to drive from a technology standpoint there is a lot that will accelerate in my mind over the next months to get more across the venue, if you like so much that our company has observed in online and on the cloud as they adapt. With a huge sector to cut costs in particular as they look at lower and lower Interest Rates and environments ahead the Banking Sector look at so many it services that come out of india how are your clients dealing with this pressure to cut costs and are it holding up in this environment . There is no doubt every sector is facing priessure on th top line and pressure on the bottom line. The Financial Sector is closed in it is a sector used with Cost Management and challenges over the years. You know, this is always about how can you renew the cost of running your corporations to reinvest and save up to your future when you reinvest, it is how can i develop new stream of revenue and opportunities to connect with clients and markets and Business Model at the same time, how can i be more giant and nimbal and run my corporation at a lower cost. It is about reinforcing the investments with what would make you stronger in the future and why it helps you addressing the shortterm challenges. My convention is that technology is a big driver of efficiency. The bigger risk is for companies to really cut not only on the cost of running but the investment side, which will prevent them from growing when the market will accelerate over the next weeks and months. So it is a difficult challenge and that every client im meeting regularly are dealing with the priorities balance and how can i free up some of my investments and cost reduce my cost going back to shore up my profitability problems but keep an eye on my future. Right i want to get your in sight into a slightly different topic in the wake of the pandemic, President Trump has cracked down on h 1 b visas this is pretty relevant for the it sector. How do you see this affecting the whole industry will this lead to an up tick in places like india given that we cant transfer workers like we have in the past i think the situation and the pressure, the challenge around h 1 visas has been there several years already. Companies like wipro has adjusted the model to be able to respond. Today, if you look at the u. S. Market, 70 of our employees are localized. We have teams that are able to respond to this demand i think we feel quite confident that we can continue to deliver and support our clients in this model. But having said that, there is a reality that there is a shortage of talent and Technology Resources in america right now so making it more difficult for people from other countries to come and contribute to other services on the ground is a challenge for our clients. We are facing this we know on the west coast, we have a high demand of challenges to that point about there being a shortage of talent in this sector. There is a lot of talk around the pandemic leading into more protectionism and reshoring of activities is that going to be possible in your sector. To what extent do you think well see reshoring of businesses like it where companies are primarily doing their business well, what do we observe . Over the last three months, the fact that 95 of our employees are working from home and they need slow down or profitability challenges and so on is something we wouldnt have thought possible some months ago. So i think there is a reality that our industry has been able to adapt very rapidly to the situation and through leveraging technology, we can work in distance of our customers. So what does it say . It probably says going forward, it doesnt mean our employees will no longer work from the office. It doesnt mean well go back to the Office Every Day i think it will mean there will be a certain level of flexibility and well be leveraged to a more Flexible Work place environment, it you like but also a very different way of interacting with our customers. I have joined wipro 10 days ago. I have made already over 20 clients. I cannot travel. So this is a different way of connecting but this is actually working. So i think to your point, yes, there is no doubt this pandemic is going to trigger some changes in the way we are working and the way clients are working with us, the partners but i think, you know, it may happen in some cases that some services are being required to be transferred onshore in which case we will adapt to demand i think the flexibility will happen more. For me, that is one of the big learning from this pandemic from a business standpoint. 10 days into the new job, best of luck to you. Chief officer and managing director wipro coming up, roche backs its 0 2020out look despite a slash in its profit well have more after the break. Now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Save without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back roche maintained a 2020 outlook. Blaming the 4 slide in sales on the decline in sales and hospital visits. Telling us Antibody Testing is important for tracking the virus. We have seen a strong decline in the month of may. This was the height of lockdowns when many hospitals literally closed down except for covid19 patients that has impacted our sales. The good news is that since june and now also into july, hospitals have opened again. Patients are returning to hospitals and we see our sales recovering thats the reason we confirmed our initial outlook and guidance for the year you have reported that covid19 testing has helped offset the decline and you were straight out of the gate with an antigen and Antibody Test there is research now to show t cells are an important part of the immune response. What do you have to say to the fact that youve dedicated so much of the effort to Antibody Testing and now the Science Behind Antibody Testing seems a little murky we have been the first to develop the monthly he cleculare been one of the First Companies to offer a highly accurate Antibody Tests no doubt antibodies play a crucial role in the immune response of patients it is still early times to really understand the virus in its full flexiplexity in human. Nevertheless, Antibody Tests will be very important to track the pandemic venture fundraising in health care the first half of the year hit 10. 4 billion. To discuss it in more detail, advisor in Life Sciences a pretty Strong Quarter to say the least for health care when it comes to Venture Backed Companies. Give us more color on what companies are discussing at this point . Good morning, julia it is great to be with you almost 14 billion raised in the u. S. And about 5 billion in europe particularly, a lot of money going into bio pharma and vaccine development. That sub sector we call diagnostics and tools which includes covid19 companies and testing. That has seen a massive increase in europe to over 600 million alone for the first half of the year, which outstrips 2019 and 2018 as well are we seeing Health Care Companies benefit from this renewed effort if you look at the premoney ipo valuations has been a strong listing as well. They are really up again on the previous years and Holding Steady as well just as important as youve seen the post ipo performance at record levels. The median gains in the class of vintage 2020 have been 80 up, which is phenomenal performance as well. One of the themes weve discussed already, the pullback weve seen in other parts of Health Care Market hospitals and Infusion Centers had seen a big decline in your world in venture backed health care, are these investments in covid19related companies coming at the expense in companies in other Health Care Markets even more crucial when it comes to the longterm outlook of people. You are right we work at the forefront of innovation we do expect to see a bit of a decline. It is held up. Youve had several say that hospitals have opened up and been able to reboot. Weve seen the same in that area as well. A lot of these are not only single Product Companies as well a lot of these early stage are platforms that can pivot towards treatment. Weve seen that with a lot of companies trying to develop Antibody Testing kits and so on. Diversity is proving to be an advantage here another key theme is the major collaboration between private companies, major academic institutions and that funding many would receive from government to proceed with research and do it at cost how are these collaborations affecting your part of the Health Care Market they are actually benefitting it that Technology Astrazeneca is using was coinvented by the small Oxford Company moderna was a small company. Initially a venture company. Large pharma established by tech partnering with smaller Research Institutions and Venture Backed Companies like our clients to propel these things toward and providing some of these funding. You have project warp speed in the u. S. For some collaboration. Critical for the collaboration and moving these ideas forward at pace. Quickly, the outlook for the ipo pipeline for the rest of the year what does it look like looking pretty strong actually no small shortage out there. The investment into risk so we are very positive. Thank you for joining us. Well leave you with a look at u. S. Futures as we wrap up street signs for the day the dow looking to open up 100 points if these values hold. Thats it for todays show im Julianna Tatelbaum Worldwide Exchange is up next. Welcome to Worldwide Exchange and top five 5. The dow doing something for the first time in six weeks. A torch light on tesla another key milestone but musk says the profits are still not the priority truly insane to under pressure what lies ahead for microsoft after a Strong Quarter puttinor
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