Minutes. European markets are just opening. Futures are pointing lower. With manufacturing numbers at a twoyear high, why is the equity market finding it so hard to hold through. The china data was better. The impact of russia it is on this side of the map. The impact from those geopolitical event are somewhere between 1 10 of one percent and 4 10 of one percent. They say the potential negative growth impact is going to be up to 4 10 of one percent. You will get the u. K. Numbers as well. Keep those in mind. I wonder what is driving paris. Beat. Webers actually will have a look at it later in what we have got here is a Second Quarter earnings number that actually missed estimates. The pricing of iron ore iron ore is going to price around 120. If you look at the business, provisions are down by 24 . Revenue is up by nine percent. Iag, this is the Iberia British Airways merged company. You sell profit in iberia. Use of the fuel cost drop by nearly nine percent. You saw the fuel costs drop by nearly nine percent. Reportus is on the jobs the jobs data. He said it is such a historic number. The dollar is generally rising. It is one of the strongest currencies. Three weeks of gains. A rate of 6. 1 . At out of nine are still precrisis levels. 130 is the big number. Joining us for more perspective on the top things investors are focused on is the investment director who oversees more than 4 billion of assets. Welcome to the show. Russia, argentina, the fed, gdp, you can blame pretty much anyone you want. Happened,look at what it was quite a disappointment. The 10 year yields came back. And down to 4. 1 . It is going to be fairly good. Treasury yields can go back to. Hree percent even though the companies are reporting much better than expectation, expectations has been have been lowered. But the outlook hasnt been great either. The recovery is taking place. The refinancing had come down a. Ong way we havent had a 10 correction since 2011. View . S your they still continue to expand their balance sheet. All in all, there is enough liquidity to support the markets. It is a slower growth. Jobs numbers expected to be. Dded in july is it good news or bad news . Yes, in the short term. It becomes the point of when. He will stay with us. Here is a look at what else is coming up. The worlds Biggest Nuclear operator will talk. He is the cfo, next. Welcome back. Here is the stock we are looking at. Are looking at a 10 drop in organic revenue. What has changed in the last remonth three months . They reported a net loss of 694 million euros. The chiefk to Financial Officer in just a couple minutes. I am going to talk about that. What they have started to talk about is the unrest in russia. It something you are concerned about . I think they are always concerned. The russian equity markets always created a very deep discount. Risk. Is a huge what you get is a volatile market. To risk levels are not going reduce at any time in the future. Doesnt become a little bit of an excuse. Can you blame the weather . Is russia the same thing . Its going to be a bit more compared to something more cyclical. I guess the big question is whether this is an isolated Market Reaction or whether it spreads. We were talking about the sanctions being very calculated. Plenty of concern in the earnings. Its just words at the moment for a lot of these oil companies. How does this play out . I think our biggest risk is any disruption. Will react. Kets in the meantime we are these political issues tend to be through the market because they are temporary. The question is will this become prolonged . How hard are they going to be hit . They will find it is not a shortterm thing but it is mediumterm. Not recover in the shortterm. There is a big concern for various reasons. 7. 8 profit increase. Pretty good numbers. They saw an increase of one billion euros. They saw a decline of 24 . Book pro vision for future mitigation cuts. They didnt specify which litigation. They have a weak environment. And ae increasing cost sharp drop in cost of risk. All in all this corridor is confirming the banking model is adapted to the current environment. Really . Pretty good numbers. Watch for the litigation risk. Russia is one of their big markets. Inc. You very much. Take you very much. You very much. Plans to reduce Capital Expenditure through 2016. Joining us on the phone is the chief Financial Officer, pr. Pierre. Welcome to the show. You have seen between the two percent or a five or send drop. That was in may. What has changed . The overall sector is under pressure. Ickly our customers basically our customers of utilities are trying to cut costs, and we can see there is an impact of the market environment. With the number of reactors around the world, we are maintaining our fundamentals. Why are you struggling to return to a profit . We are taking strong actions on some of the businesses. We have announced just today as we could not find an expansion for the business. The question is whether you need to sell more assets going forward. We can maintain this for a time. We had a launch a couple years ago. You had to export uranium. Expansions arehe you starting to reconsider some of your supplies. We have ties with some of our partners. We have partnerships. Overall i dont want to comment further on diplomatic issues. Obviously, we have competition. I understand you might not want to comment on diplomatic russia to be has never been a strong place. It is not a key issue for us at all. Thank you very much. Want to bring you in jumprate base point didnt is it a sector you like . It has gone through some terrible times. It is how to ultimately get the best and start lending where the liquidity is not flowing. I think the way it is the biggest potential for europe as a whole. I think the Banking Sector becomes the biggest beneficiary. Is a good time. It is full of opportunities. Equity has a lot of opportunity potential as well. Thank you for joining us this morning. Coming up, and unexpected rival enters the arena. We will tell you where the French Company could win the bidding war with the smaller offer. We will talk about that next. Billionmobile a 15 cash offer for controlling stake in the company. It is a bit not just for the company but for access to the market. Caroline hyde has the details. A look at this. It is smaller than the offer we had previously. Out, whatg to work are they doing . Speculation. If i could sing, which luckily, i cannot. Frankd burst into sinatra, i did it my way. Areoverall song rights owned by the founder. I did not know this. Its fascinating. He is living up to these lyrics. He is offering 15 billion in cash. That is less than what we understand is on the table coming from sprint, a u. S. Company. Why is he giving such a lowball number . Why is he giving such a number that Deutsche Telekom says we are not taking this seriously . Its all about regulation. U. S. Regulators say we want for in the u. S. Four in the u. S. Overould get iliad coming and splashing cash now but promising for just less than 50 . It would not hold. They would share some of the cost savings. How desperate is Deutsche Telekom to sell . Are they willing to take the lower bid . How much will this speedups print . Sprint is saying, its going to take about a year to get through regulators. Suddenly its a bidding war. Stocks are down 10 . I think people are worried they might start pumping out this cash. Iliad is third of the size of tmobile. He says he has got International Banks there. Its going to be a bit of a splash. We will be back in about two minutes time with chinese pmi. Welcome back to on the move. Id. Jonathan ferro joining you live from london. We are 30 minutes into the trading day. We are lower, down 0. 6 on the ftse 100. Big selloff yesterday in the united states. The dow wiping out all the gains for 2014. The big question is if that is the beginning. Something is bigger. The elusive correction. Three stocks to watch, manus cranny at the touchscreen. Dips butlived, those there are three companies which are not shortlived at the moment. Having problems in terms of exposure to russia. Byt stock has been knocked the Analyst Community this morning. You see jpmorgan downgrading the stock to neutral from overweight. Deutsche bank goes to a cell versus a hold. Eme, when it comes to industrial chemicals, this company saying they have to shift their guidance to the marketplace in terms of margin, in terms of sales and in terms of making an uplift of their earnings by 16 . It is going to be pushed out to 2016. And since i have been twice ties chastised on twitter, i thought we would have a little touch of russia. Nk. Is sberba what you have got is a 12week low for the ends for the russian institution. Moved, unable to raise capital beyond 90 days here in europe. You are beginning to see some actual, physical threemonth low on that bank. Back to you, john. Thank you very much. A 72 hour ceasefire is in effect between israel and Palestinian Militants in the gaza strip. Left more thans 1400 palestinians and almost 60 israelis dead since it escalated in early july. Organizationlth and several west african nations will pump 100 million into intensified efforts against the evil of virus outbreak. The virus has killed 700 people. Manufacturing expanded in july, the fastest pace in more than two years. Pmi came in at 61. 7. The reading may show that government stimulus policies including tax cuts and Infrastructure Spending are helping boost chinas economy. For more perspective, lets bring in maranda car, the head of China Research at nsbo. I look at the numbers, twoyear high on chinese pmi. I was told last year we were going to get used to lower growth. What are people telling me . We are not seeing that in china right now. There are three main reasons for a big slowdown. Thinking there was a massive slowdown and this was the beginning of the end. Property, credit markets and the anticorruption campaign, all of those three, particularly with the investigation on wednesday, particularly those three have been removed. We are getting back to more normalized growth rates. Lets talk about the anticorruption campaign. One facet of that has been bending on luxury items like highend drinks. You see some of the drink companies, sales across the board in china are terrible. How does this impact the wider economy . One is the luxury goods people not spending on enjoying themselves. In terms of the other impact, you have the political impact, which is changing guard at the top and removing some political opponents. That is about half the investigation. The other half is things like cleaning up some of the more corrupt sectors. Things like railways or science and technology where some of the Research Projects are being siphoned off. Some about cleaning up sectors of the economy where you have had problems and trying to make a longterm difference. Lets talk about the property sector. Most people see the significant overcapacity in the sector. We were starting to see a correction and it seems to have come back. What is the view here . Is this bubble so big that they cant allow it to deflate . The thing is, you cant let a Property Market crash. If you let the Property Market go, then you would be reforming in a crisis. You wouldnt be reforming in a stable economy. We wereapril, may, thinking they would have to stabilize. What they are doing is taking away the restrictions on people buying homes. There is still reasonable demand. Where you see problems is things 4. E tier 3 and related to the anticorruption campaign, the highend luxury , basically officials arent buying those anymore. The core demand is still there and that is what they are trying to pick up with more credit supply and stabilizing things. What is the take away . By property . Keep dancing until the music stops . He said that earlier this month and it has now gone up 20 . Is, you haveng one had a bit of a rally. That is what we were saying. The next interesting one is where the reform is happening. That is the energy sector. Oil and gas, you have got the investigations. You have potentially quite widespread reform. Settle forgoing to the distribution arm. That is kind of where we are more reform rather than recovery. Last year, all the noise about higherquality growth. Can we forget that . Need toottom line, they maintain social stability . A low urban unemployment rate. They need 7. 5 . Have 7. 5 ort around 7. 5 . But if they are trying to rebalance, you need to maintain stability. While you shut down the steel mills and the coal mines one final question. In history, is there an example of an economy this large with massive overcapacity that has managed to restructure without a significant downturn . There is not. Tend to get some kind of correction at some point in order to achieve that rebalancing. If you look at the market, you have actually had a slowdown in markets. Also a slowdown in credit growth. If you look at the past five years, china may have been achieving that by itself, without having reformed. We will leave it there. Everyone is waiting for that. Thank you very much, maranda, for joining us. Moving on to the middle east, the fight in gaza has not put Israeli Technology companies out. They yesterday raised almost 1 billion, making it the biggest ever u. S. Ipo of an Israeli Company. Elliott gotkine has more. The share sale exceeding expectations right now. Very much so. This was the beyond the range of 25 a share. As you say, that all translates into the company raising just shy of 900 million giving a valuation of just over 7. 5 billion. That makes it the biggest ever ipo of an Israeli Company in the u. S. Not the biggest ever israel the ipo. Oil refineries listed here. Nevertheless, not too shabby that made a net profit of 20 million. Not the only company raising Equity Capital in the states this year either. Or rather this week. Beyond this kind of point, but there is only a bit of a scramble given the bull market. Mobileye is the biggest of the Israeli Companies listing this week. In additionhis week to mobileye, most of them biotech companies. Overare scrambling concerns that this window of opportunity is so bullish may soon close. Or may have already closed. The fed chairman talking about the way that biotech valuations may be stretched already. That is why you have got all those companies scrambling to get their initial Public Offerings off the ground. Mobileye the biggest and that will start trading on the New York Stock Exchange this afternoon. Tank, elliott. We will catch up with you later. Ceo meeting today to resolve a 115yearold company. What does it mean for fiat . What does it mean for italy . More after the break. Welcome back. We are going to talk about airlines now. Iag reported a jump in profit in the Second Quarter. Terry lundgren joins us now for a look behind the numbers. From air france and lufthansa, i might have expected something similar here. Analysts and investors were wondering if we would hear something similar from iag. I spoke to willie walsh earlier this morning and he sounded pleased with himself over these numbers. All three units profitable. Generally, things going very well in spain. They announced that iberia is getting 18 planes. Rings are going very well for them, which is a big success. Lets talk about the overcapacity in the transatlantic market. Any concerns on that . This is an area that other airlines have flag. Said that there might have been a little bit of greediness. They are being very selective on their routes. The group as a whole is trimming capacity by about 3 . He was saying that is en route for extra flights going at this point. On transatlantic, he says it is choosing the right routes. He wasnt being specific about the new places they were flying. He said austin has been very successful, san diego, l. A. , the load factors on that have been 99 . If that is wonder possible but that is what he is saying. It has been a rough couple of months for the industry. A lot of people asking whether this translates as less people getting on planes. Any comment on mh 17 . He to some extent agrees with what tim clark is saying, that there should be more communication between airlines. He stressed that when it comes to the actual final decisionmaking, the airline should be making the choice. They are constantly talking to people. Was a very tragic week last week and says that it was a hit for the entire industry. Something that hopefully will never happen again. Thank you very much for joining us this morning. Always a pleasure. Some other companies on the move this morning. Iliad taking a hit after offering 15 billion in cash for a controlling stake in tmobile usa. Parent Company Considers the 33 a share offer not as competitive as the bid planned by sprint. The rival bid putsch pressure on sprint. Sales forecast for the Third Quarter topped analyst estimates, sending shares higher. The largest professional networking site is refueling growth and sees revenue around 547 million. Tesla, model as sales have matched analyst estimates. In may thatk warned tight supplies of lithiumion batteries would weigh on deliveries. Tesla is aiming to deliver more than 35,000 cars this year. Going to carry on talking about cars now. The iconic italian carmaker, fiat, is leaving. Investors are meeting today to seal the merger deal with chrysler. The company will move to the u. K. And list in new york. Ryan has got the details. This is a pretty historic day. I was just wondering if tesla will last as long as fiat. 115 years. This is sort of the story of giovanni ,gianni and john. They take 400 and invest in setting up this first fiat factory. A buddy is in town talking about horseless carriages. He says, i want in on that. The next year, they have 35 employees. He runs the company to the end of world war ii. After a while, johnny takes over. The countrysinto largest manufacturer. The uncrowned king of italy. He was head of the senate as well. And then, john elkin comes in to the scene about 10 years ago. He is now 38 years old. He joined the board at the age of 21. It is sort of the transfer of power within the family going from