Welcome to countdown. I am anna edwards. I am joined by mark barton and manus cranny. Lets start with facebook. Yes. Profits are up. Sales up. Average ad prices up. Shares up. Average monthly users up. That is all you need to know. Up, up, up. Shares, record high, afterhours high. Monthly active users. Fantastic. Watching . What are you to call themselves the 3d experience country company. 20 of revenues in 3d. Take a car and great and 3d image. Take a kitchen and create a 3d image. Yes. Us talk about the numbers. I can tell you revenue rises by 7 . Plan another acquisition. The plan is to double the revenue in the past five years. The data by acquisition. Engineering software. Exciting. That business has been under a bit of rusher in europe. These are the images you are seeing on the screen. They are doing another acquisition at 570 million euros. It is the Second Quarter numbers. I will be talking to the chairman a little bit later. Wonder what he has to to say about currency perhaps. This company is reporting earnings. That is certainly on my mind. 2. 0 5 billion euros. Euros. 5 billions they are confirming their 2014 forecast. What will be really interesting to understand is how well the geopolitical developments we are seeing taking place, the first their national further sanctions from the eu, how is that having an impact on European Business . We will explore that later. Have recently been increasing their partnership. See that they have significant closure to market in russia. That the number of facilities in russia. We will be speaking to the ceo who will be on limerick. We will discuss everything they have to say about the russian business as well. They will see sales slightly below levels. Just getting some earnings from the swiss drug maker. Franks. Lion with number ticipating a earnings for the first half of these estimates, sales look like they have beaten estimates. 23 billion francs. This is a company that is focusing on it key drug. Thee failures have ever first half of new cancer medicines have propelled sales. Will be looking at new data on two of its new Breast Cancer drugs. One of the sales is up by 200 and 76 . These are the drugs that investors are focusing on. Hes under Breast Cancer drugs. The drugs that is performing very well. Sales and earnings are beating estimates. The cut their forecast for the year. This is missing estimates and continuing to fall in the united states. The chief executive will be joining guy johnson on the pulse. U. S. Regulators are lying u. S. Carriers to resume flights do that Israel International airport. There was a countdown. N due to was a two ba the rocket fire. Elliott is standing by. Good morning. The faa is convinced it is safe to fly . That is what it is saying. The safety of passengers is always paramount. They have come to the conclusion as they are gathering all of the information necessary that it is bet this is effective from 11 45 p. M. Eastern time. About an hour and 20 minutes ago. They will try to get to the get the european authorities to some have been fined here anyways such as british airways. Israel International Carrier says even though some managers trespassers might be switching airlines, it is to be affected by this faa ban. We are suffering from a lot of cancellations from tourists that may not come back in the future. The israelis are not counseling as much as tourists canceling as much as the tourists. As i say, some passengers are switching from other airlines. Shares spiked yesterday. It will boost revenue to the tune of one million. Thanks a lot. Our middle east editor in tel aviv. Manufacturing is one of the biggest focuses of the day. On thosee the latest details. When you look through those numbers, it makes a pretty good reading, doesnt it . And makes a very good reading. It is an indication that china will proceed with its 7. 5 gdp target for this year. Gauges the factory output in china. Here are the numbers. Had an reading of 52 for the month of july. The final reading anything above 50 indicates expansion. What this shows is that the policy coronation you see in china, the stimulus that has been put in place appears to be working. The expectation among top banks in hong kong is that the government will not need to put on major additional stimulus, including Interest Rate cuts. It would doom are calibrated interest cuts ahead if they need to. Bill make sure that credit remains loose. We have seen the market reaction. It is trending at a threemonth high. Stocks rising to the highest level this year. That is the latest. Thank you for that round. Sales have been slow for this my the since 2013, but in store for much greater problems if sanctions are imposed. Caroline hyde has the details. Good morning, caroline. Good morning. Company that a few months ago, theyre saying that they are permitted to this country and are looking for organic growth and investing in manufacturing over there. Also, acquisitions as well. There really are looking to continue to grow the market share. Is that still that case . Of course, it was predominantly dutch people. Serioustics is becoming in the netherlands. Clearly there he is concerned. Many are saying enough is enough. Of maneuver of difficult is a very line to walk, isnt it . Tothey have been saying thate business strategy, seems to be the focus to a large extent. As we look ahead, there are going to be tough questions about how much exposer. The political pressure seems to be mounting. On one side, youve got the politics. , russiaser side economy is not going to be sanctionsthe current that will be imposed. Currency in which remember, this is a fastmoving company. This is personal care. Up, they willoes suddenly it will be that much more expensive. Have russian brands they have invested in particularly over theres. Sales be faring . And they have lost one of their key executives, havent they . Yeah. The most probable unit. Profitable unit. He will be replacing him. Replaced byas been a 29 year company veteran. Is this the next successor in line . He has been hiding. Off ve been selling right. [laughter] u. The rag [laughter] that is the goal for Many Companies and they are in a situation in regards to russia. Perhaps it is not appropriate to say that at the moment, but it is a dutch company. It is one of the main quotas. They have traditionally been very open to the world. What is the Financial Reality . We look at the amazing fact good netherlands is russias thirdlargest trading partner. Caroline, thank you. Right up to the break, risk, what risk . The market trend. We talked after the break. Better sex. Tghahat is next. Welcome back to countdown. I am anna edwards. We have mark barton and manus granny. Eu leaders will show the companies and individuals to be blacklisted in the wake of the downed flight of mh17. Racellion dollars was a from the banks after the u. S. Announced its own sanctions ased things up to the u. S. Announced its own sanctions. I havent we seen more volatility in fx markets on the back of events in the last week in ukraine and in israel and gaza . A they really had to see calamity in the scale of 9 11. Usually geopolitical risk have an impact. Bywould have to be Company Economic slowdown and see risk related assets to come under sustained pressure. I could say nothing unexpected there. Presumably, some of this will remain, especially case of russia and the west. The escalation in tensions may persist as well. I doubt that there will be a sustained impact. If anything, it will linger. It could be an excuse, but nothing more. There is a lot of concern of what will happen as a result of the tensions with russia and whether that is due to sanctions are other factors. What role will the euro play here . Time, the first crisis has been around for a while. Is a longerterm impact on the eurozone, on the eu from the are the escalations on the tensions. There is geopolitical uncertainty. I think that it will show that it will continue to deteriorate because of uncertainty that will happen with russia. Added to that is obviously the impact the longerterm with the end result of the embargo that will have a direct impact on the euro zone. And germany . Are diversifying. The u. S. Could benefit as well. Anything, in the process, he might be a negative impact on the eurozone wrote. Eurozone growth. We had a couple of other issues. Weve also have the chinese data. When you look at the chinese story, does that balance of . Growtherica and chinese balance what is happening in europe and germany . I would say to a degree. He does seem to be encouraging more risk buying. Think origin to buy currencies despite geopolitical risk. Which european slowdown could impact recovery again, i guess the thinking is that presumably if anything, it will bring forward more easy measures. It is still very entrenched. Is the view that they are sharing. It is the case that it opens the door for more action to unfold. That even if the fed start moving closer to the exit, the ecb actions could prop up assets. Stay with us. We will hear mark carneys views on sterling and trade deficits expanded after exports. Back with us is our guest from citigroup. Mark carney was speaking yesterday. Picking up a number of messages. One message could be that when rates to rise, it will rise gradually. The other message could be look, i am preparing you for rises. Maybe not now, but they are coming sooner rather than later. Is that what you took away . That has been the message for a while now. They suppress the market. The markets are so complacent. Since then, markets got the message. In general, i would say the change in tone for the first talkingrk carney was about the towns and the exports that was part of the speech. Pounds and the exports that was part of the speech. Mark carney really became the governor. Could be the reason for them to buy some time. More appreciation on the delay. It we see sanctions from the eu on russia one of the involves access to the Capital Markets or to london in general, is that kind of any negative risk involved . Been one of the reasons why the pound has been so resilient, especially against the euro. It could be explained with the russian money flowing into the market. Is that enough . Thats not what is driving sterling. Fx markets are driven by expectations. People hope that something will happen. Itsufficient to put a is a fairly small amount. What i was getting at is that if that money were to stop, more money could come. It is said that they were considering their positions. Theyre looking to invest that money. Speculating and could buy some property. If anything, i was thinking that would be a small driver. Thanks a lot. See you next time. Stay with us. Youre watching countdown. Welcome back to countdown. I am manus cranny. The central bank and new zealand raised rates. If youre looking for irony, this isnt. New Zealand Dollar drops to almost 1 . That is the most in six months. The potential for significant the fall to go into a neutral mode or in terms of her reflection, we have had four rate hikes from the rba. I like that from the world bank. Lets switch across a look at the aussie dollar. Three weeks highs. We have had good purchasing managers. Fetid than estimated purchase managers. Better than estimated purchase managers. Talk fromf a rate australia manus. Ks, these are the top headlines today. The plane went down in heavy rain. Bloomberg the crash has them concerned about the deteriorating fundamentals. Flights to and from israel were held due to rockets hitting near the tel aviv airport. At least 31 airlines internationally canceled flights to israel. U. S. Kerry say they could still u. S. Officials say they can still cancel flight. People with knowledge of the matter say it could come this year. They say the Financial Authority wants to fast track the progress and speed up the settlement. Today, the eu discussion sanctions, but it remains unclear how potent they will be. They you has continued its policy of inching forward and only threatening tier 3 sanctions. Ryan chilcote is here. You were in brussels. Where do we stand on this . We have been exploring these. Yeah, i think inching forward is a good way to put it. Theyre looking at proposals for threatening russia with tier 3 or sanctions. You have heard some of the ideas restricting the access of Russian Companies to european Capital Markets like the americans did. There were some other ideas. They are discussing those right now. These are early days. The ideas they will consider this and come up with a plan. We are in the draft stage. President putin, this is what were threatening you with. You must comply or else. We are not at that stage yet. In terms of these blacklist, theyll come up with a blacklist. It will mostly target insurgents and people in the Russian Military for causing unrest in ukraine. Late next week, possibly the week after that, another blacklist. It will target people in putins inner circle, friends and family. In the metaphoric sense. Surely, slowly and they are being more aggressive. It is easy to forget that fighting continues on the ground. We have prorussian fighters shooting down two ukrainian fighter jets yesterday. What does that mean . The optics of that is not helpful for president putin. Hes trying to encourage the rebels to deescalate and sit down at the table. Obviously the have been shooting down fighter jets, that runs contrary to what people are looking for president putin to do. Now seven days west flight mh17 shutdown. It will make people wonder what was this weapon that brought those planes down . Was it the same technology that used to bring down that boeing . We know that it probably isnt. It was too fighter jets that was shot down at an altitude of 15,000 feet good at half the altitude of it was two but are just that was shot down on an altitude of 15,000 feet. That is half the altitude of the Malaysia Airlines flight. Shoulder fired weapons are all over the place. In ukraine. It is easy for the rushes to argue they did not give them that weapon. When they were rating the stockpiles, they got it. The thought the other one might have been fired by another aircraft. Their odyssey not been issued on themselves presumably. It they are obviously not going to shoot themselves presumably. Ukraines a lot of things just like the russians, which is not always true. The ukrainians say a lot of things just like the russians, which is not always true. It is an example of the inlity of the paradigm shift how investors look at russia and the consequences, potential consequences for sentience. One is it is a beautiful example of self sanctioned. Noneu country doesnt have to follow the eu line. Correct. Aspect. Is a pragmatic they took a big hit on their assets in russia. It down almost 10 in the first quarter. Something like 2 in the first quarter. They have got a billion dollars. Ideologically, the support with the European Union is doing. That is why they say there should be a crackdown. They want to be a part of that. This is selfmotivated sanctioning. It is interesting. We havent really seen those eu restrictions yet. From that long ways you could argue. Maybe it will take until august or september to get there. Norway has a lot of weight. Maybe one country will come to a conclusion quicker. Perhaps that is the reality. Assets topect their take place in the autumn which is an interesting one. The ties which in that business and russia are extensive. Profitable. They saw a 13 jump in their sales in the oil and gas division. That is a division that has the ownership. That is a division that has a stake. That is the good part of the story unlike the example the problems theyre having in the Performance Products and of which there are laying off summoning people. It looked like the deal was going to go sailing through. Beforef electricians but it closes saiz politicians right before it closes say is the biggest gas user in germany . They use an awful lot of gas definitely. This unit we are talking about is the oil and gas division that is the biggest gas producer in germany. The germans are very interconnected with the russians. That is one of the reasons they seem reluctant to really go aggressive like the united states. Ryan, thank you. Thankls a million. Coming up, a solid Second Quarter. The ceo joins us exclusively from paris for discussion. Acquisitions are in the air. Europe is seeing an uptick in Software Company consolidation. One of those companies had result out this morning. We are joined exclusively by the ceo of dassualt systemes. The whole industry has had a fairly tough year peer you are an acquisitive company. Summit what this acquisition is about . Tell me what this accusation is about . Tell me what this acquisition is all about . Well, as you can imagine with that increase digitization of all companies from the created product to the produced product and the cell audits, the logistic on the connection of all of the players is changing very rapidly. That is why we have made a decision to buy one of the leading technologies in the supply and business operation. I think it will expand our market. We are well known for product the creation, claims, you name it. These products are connecting all of those companies together and becoming very radical and that is why we are doing this move. You are probably the record percent to talk about of how to see the world. Give me your view . How is the World Holding up in a manufacturing sense . Also looking at some of your numbers, it numbers were quite weak according to some of the lines that im reading here. Notice, there is growth in america. 15 in europe. It was astonishing for many observers. It is a significant number. Manufacturing world is producing differently and more sustainable not only in volume, but also in innovation. Thisis justifying transformation. I think we are at the beginning. We are not at the end of this process. Where is the strongest sense that you get from the customers that you speak to in terms of reality on Capital Expenditures . Bring in your software is not a cheap experience, is it . As you, as long transform your business and are more competitive come investment gets a lot a return on investment. Lever. The in this century, the products will not be done the same way. Everyone is talking about manufacturing and smart products. We think about those companies and how to create those new experiences for the consumers, this is a profound transformation from the industry. We talked about it as a service