German survey. You are watching street signs. Lets give you some headlines this morning shares rising as the dutch Agency Reports strong european performance with double digit sales both in the Second Quarter. After the bell shares sliding in the companys Second Quarter numbers missed expectations and outlines a new structure amid pressure, of course, from activist shareholders. And higher prices boost earnings more than 50 . The companys ceo tells cnbc that the sector is driving growth im not worried about the core volume growth were ahead of gdp we see growth in automotive, which everybody says has slowed down in the first half of about 7 or 8 zplool we have the Expectations Index. Its below the headline record levels you probably want to have a look at as well, and the Expectations Index has come in at 107. 3, and that is above the consensus of 106. 5 lets say for once were not obsessed by Monetary Policy or obsessed by mr. President trump. Lets say you are looking at corporate earnings a whole host of earnings there are euro Companies Reporting this week. In terms of individual indexes, lets take a look at this. We have the ftse leading seven points lower 7,419 is where its trading. Theyre all up by around about. 4 . In terms of sector moves, banks, as we mentioned, in the headlines. 7 higher Household Goods under pressure there. What are the ramifications, if any sng lets have another look at the euro, shall we . Euro dollar trading 116. 63 as we speak. Bill sackett is cohead at uv. Nice to see you. Look, what do i say . Iphone was in record territory, and now its well, the data in europe is very strong, and its not just the surveys. You can see a significant longlasting decline in employment rate. You can see it in other parts of the spectrum thats what is driving the ecb language as well having said that, i think that, on the other hand, we have slowing nation rate. Not just in europe, but globally as well. There is a limit to which the euro can rise before it creates problems for the ecbs narrative. This is coming from a house thats the currency is purely a reflection of the underlying economic growth, yeah . To some extent, and that its a longterm perspective. This is the point before we thought that all the german exporters are going to start to worry about high they have prooufb that they can damn well put up with 117 as well that creates a conundrum for the ecb, yeah . We dont have a Global Communication problem, right if its not that much better of an environment, then thats very fair now, as you said very rightly, the euro is not competitive. Its quite cheap, whether you look at it from a current account perspective, the competitive currency, and the way they have the next few years, and we have had that view since basically the point that investors were quite bearish i think the main concern here is that if you look at the currencies or oil prices, you look at oil prices in euros, you may have an impact on headline inflation right around the time that the ecb is actually communicating its exit strategy, and that causes a little bit of a communication problem. Why be cant they hike anyway regardless the fed is not seeing cpi rally. If the fed is doing it, why cant we in europe first of all, theres a big debate in the fed whether its the right thing to do or not, and thats a very difficult and separate discussion to begin with in europe the inflation rates are lower. The dprk past inflation is still a little fragile, so it needs to be cautious. Most importantly, the ecb needs to control it. They dont want to have a situation where the market undoes what theyre trying to do its a gradual escape from the monetary regime. They would rather be in control. Where is the euro going well, important for this years 113 oh, right okay were going to abate someone probably not in the next month or so. Probably towards the end of the year next year 117 and then 121, 135. They found some support off the leading opec, and its exports in august. Very heavy domestic demand thats why the air condition goes on in saudi at 130 degrees opec and nonopec is meeting in st. Petersburg in an effort to include compliance with the recent deal to limit production. They also agree to bring in nigeria. Now, it was previously exempt from the agreement Saudi Arabias Energy minister explained the range of driving in the Energy Market we must acknowledge as a fed before that the markets have turned bearish with several key factors driving the sentiment. Reported compliance not matching export figures is one of those, increased libya and nigerian production is another. U. S. Shale forecast is a third, and, finally, the outlook past the march 2018 expiring data date of our agreement. Lets take a look at a couple of facts yes, you have this new brother in arms relationship between saudi and russia, who between them produce around about 21 Million Barrels a day, which is just under a quarter of Global Production theres a lot of people nagging at the ages between opec and without. The ek kwa door and indeed the likes of the iraqis as well who quite frankly, are happy to raise the production because they dont think, a, that their production is or, b, that they can afford to dont forget theres two prices. One they can afford to get out on the ground. Two, the price which their budget balance as national country, the sovereign state, and the last one is way higher, i can tell you, than the price is at the moment the top of the line from saudi arabia and singling out the liks of iraq . Well, theres no way those guys have that kind of uptick in production certainly in the short to medium term if indeed this is going to work. Compliance has been above 100 in various times you know why because saudi has upset those that have been looks, shall we say, in compliance all options open what does that mean . That means that basically they can go deeper, which novak told me in istanbul a couple of weeks ago, and they can go longer as well, because the worry is there going to be a free for all at the end of the first quarter, 2018, and is that reflecting in the future markets once it closes, boom, does everyone go for it all options open they can ek tend this as well. This is the point. People arent looking at necessarily the current data supply and the current daily demand what theyre looking at is an invention decline. They think theyre way above fiveyear averages, and that is the major thing that everyone is looking at you can tell me a free count, if you like you can tell me that its based on individual data i think this is the case they can get those down to fiveyear averages and then the guys in opec will see their strategy is rg who want getting as much bang for the buck as they like. They announced it back in november where was the oil price . 2 higher. Shares trading lower after a mixed set of Quarterly Results in norwegian aluminum. Second quarter underlying ebit came in short of some of the analysts expectations im delight to say evan joins us on the line, the cfo of north h hydro. Your shares have had a 21 rally so far, but marks are looking negative do you think thats fair, or do you think the numbers are better than the market today . Its always difficult to judge the share market reaction. Do you think its better to improve the profile of the public, to improve energies across the company is it still about that, or are you moving beyond the costcutting phase its beyond the costcutting phase, and its very much about improving personal sufficiency and getting more done in ermz it of production as well. Fascinating to see what demand is right now . Demand is good. We expect the demand increase in 2017 of approximately 46 . That means that we will have a largely balanced market when you look at this from a global perspective in 2017. Maybe more interesting or equally interesting is that outside china we will be in a deficit situation between production and demand. And therein lies my next question you know that its always going to be about china as well. Is the china is it a ridiculous amount of over supply coming out of a country thats it is hurting World Markets with china that is overproducing over what their domestic demand is the interesting thing Going Forward is the socalled winter shutdown, the environmental discussions theyre currently having in graz brazil in terms of the kospi and whether that will take effect or not. Mr. Trump has been taking aim potentially at still imports, even though its a smaller part of it directly comes from china. Its the bigger picture. Would you like to see countries like the United States taking more aggressive action against china . I think we would like china to take control of the Oil Production i think were very much in favor of free and open trade and not necessarily trade barriers between regions, but free and open trade on equal terms is what were looking for china is not going to take that action, are they . I think at least if you look at what theyre stating at the moment, again, it still needs to come into fruition at least from what theyre saying, they will take actions against over supply also i think if you look at what theyve done to a certain extent on steel and coal, theres probably slielts more hopes that theyll actually make things happen compared to previous rounds thank you very much indeed for joining us and taking our questions. Always a pleasure. Looking at potential as well. Now weve had the numbers as well, and, well, the markets are not that impressive today. Weak demand and higher material costs are hitting akzo nobels earnings the fallout of a takeover bid by cb is larger than expected for operating profits. It remained on course for better results this year, adding that the separation of its sperkt p Chemicals Division was on track. They said that the chairman will real estate sign at the end of his term in april 2018, and, of course, as you will know, the activists out there have been gunning for mr. Bergman saying, y a strong european performance helped the rise in Second Quarter profits its the worlds second largest Staffing Agency for a big rise 40. 8 . Thats the highest level weve seen in 2011 now randstad said their Second Quarter is a continuation of the Second Quarter performance coming up on street signs luxury paying off. The maker of the likes of rayband sunglasses, beat earnings forecast. We are live in milan after this break. These days families want to be connected 24 7. Thats why at comcast, were always working to make our services more reliable. With technology that can update itself. And advanced Fiber Network infrastructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Welcome back to street signs. Its clearly an extended trade after a drop in Second Quarter profits, and quite frankly, it was down to the 2. 7 billion euro fine the Company Posted slielts better than expected earnings per share on higher revenue. 26 billion. That revenue came in at a higher price, and googles cost per click dropped 23 from a year ago. My analyst has forecast indeed some of the numbers on this company. Let me remind you, thats a lot of money to me and you this is a company that has 26 billion in sales in the Second Quarter. Its got a market cap even after the decline tonight under 98 from 1,000. Its got a market cap of 684 billion. Im not saying the fine isnt Going Forward. Im not saying its not going to change the way we look at the company in terms of how the regulators and that in europe. Its a 684 billion company. What did the market think of it . The market really likes this company nowadays they have had a very, very strong runup from around about 800 yeartodate 26 higher. The market is still absolutely in love with this stock. I found one strong seller out there. No sellers five holders 25 buyers, and 13 strong buys. Weve got 381 from people who like it compared with dislike it as well. Lets do some more work on this one later in the show. Well have more on alphabet earnings with felix wind thorpe. Thats coming up later in the show unch, the italian eye wear maker is on track to hit its target the it expects regulators will approve its merger with luxottica. Its the real estateband sunglasses reported earnings in line with estimates. Lets take a look at the shares performance. It is 18 higher for the year today. Lets get a bit more on this stock with claudia who is in milan. Lovely to see you. Nice to see you this morning. Well, luxottica performing well on this market it is one of the better performers outperforming the ftse that is up by 0. 7 . Those numbers were quite strong. You said they beat on operating profit 199 the market was expecting 873 million. As far as top line is concerned, havent quite gone up as much. The company did confirm the guidance for top line growth they do expect midsingle digit growth for the full year net profit for the first part of the year came in at 562 million euros, and that is higher by 14 . Really the market appreciated it it already thought that the numbers were going to be good yesterday. The stock was up higher in closing. They are also waiting for approval for their deal for their merger with essilor to create the Largest Group already luxxotica was very large, but theyll have 14 billion in terms of net sales, and they are still awaiting for u. S. , canada, and brazil approval while they have already received european and chinese antitrust approval. We can see one more manager step out from his post at the head of retail that went and took a job at lb h. This comes after three years since leonardo, the founder of luxottica has once again sort of the helm of the management of the group. Things are going quite well, and the stock is trading higher this morning. Up now at probably one of the best performers luxottica trading higher by 1. 6 again, great company, but 26. 4 is that what we pay for these companies now . The rates are on hold when it kicks off a twoday meeting later. Investors are looking for clues as to when the central bank will begin taking back its Bond Holdings with expectations mounting that it could start in september. The dollar inched higher ahead of the meeting boosted by stronger than expected rise in manufacturing and services pmi data the market is pricing maybe one hike and then a first. Plus, some the question is whether basically the fed is likely to do that or not or whether they are going to signal a pass consistent with whether its in the past why is the market so disdainful of the current view from the fed the current from the fed the good reason is that probabilities, the feds has already raised rates if you look at the range of outcome, two or three years from now, you could be in a good place. After all, the data is still decent thats good reason the bad reason is a little bit too much caught up into the narrative of what has happened in the past. The current low inflation rate, which will remain low, but not as low as we are now, and a little bit of a narrative getting caught up in the narrative. This week as well, gdp on friday i have about 20 second left. Are we going to see earnings picking up aggressively . In the u. S. Yeah. I think that we have seen a reasonable pickup, but i do think that were past the acceleration phase well be back after a short break. Rmeranthill on the german caaks d ey are rallying today after two back to back negative sessions. Well talk about the collusion scandal, and were going beyond that here on street signs. Welcome back to street signs. Here are your headlines. European banks seeing a boost in early trade following a strong session stateside leading equityists slightly higher well staffed shares rising the dutch Staffing Agency reporting double digit sales growth in a Second Quarter shares, though, sliding as the companys Second Quarter numbers missed expectations and outlines a new executive structure amid pressure from activist shareholders overall well still be ahead of gdp we see growth in automotive, which everybody says has slowed down in first half of about 7 or 8 . Shares, bmw and daimler have recovered slightly, but remain under pressure from allegations that the automaker had offered a wideranging the bmw spokesperson has said it will hold an extraordinary Supervisory Board meeting on wednesday following the launch of an e. U. Probe into alleged price fixing the investigation by European Union regulators will be whether carmakers use committees to discuss pricing and whether such talks breached competition laws. My guest is an expert. Head of Global Automotive research very nice to see you i have been riding from your copy the whole thing is why you are saying, if this was so material, bearing in mind these automakers knew about these collusion allegations for a long, long time, since last year as well, they would have had to display something in their reporting structure as well. They have not reported anything up until now you dont think that this is wideranging perhaps and as punitive potentially as some are making out, is that right . Thats why the authorities have been looking into this for years. Daimler saying theyve been incorporating since 201 1. Volkswagen stopped some of their practices beginning of 2016. They reported themselves to the german and european authorities middle of 2016 i would have said they would have had no announce something or is this before the epa said look what you have been doing, and enthis, of course, the whole apple cart was thrown up as well or thrown over as well is this once again being not giving the shareholders as much information as t