June. The data suggests that they will sit tight for the time being. And alcoa gets the u. S. Earnings season off to a good start. Posted better than expected adjusted results and also backing its Global Demand forecasts. Warm welcome. It is tuesday, the 9th of july. Plenty to come on todays show. Well be in egypt. Protesters are expected to take to the streets again today. Could a timetable for elections bring some stability . Expansion is back on the agenda. This is according to the latest cfo survey from deloitte. Are those in top jobs all talk and no action . Well talk at 10 30 cet. Alcoa kicked off u. S. Earnings season on a bullish note. But what can we expect from others . Well get a view there. The head of the worlds Biggest Exchange operator terry duffy, president of cme group joins us in studio. Has his eye on an m a deal. Tune in to find out. Thoughts or comments about any of those views, please email us at worldwide cnbc. Com. First up, greece is being granted another round of aid from its International Lenders bug payments will be staggered as the troika is unconvinced the speed of reforms in athens. The deal has been welcomed. We got the package. We got the approved package we had in the may program. Okay. So we are fully satisfied. Of course, if somebody wants to give us 10 more billion, we would welcome this. Right. Okay. Jules is in brussel and joins us with more. Will they meet the terms of this one . If the past is anything to go by, theyre going to struggle on the private sector reforms and the Public Sector reforms. 4,000 job cuts they have to achieve by the end of this year. Ive tried to talk to finance ministers about the risks of implementation here, particularly, of course, given what we have seen in the Coalition Government over the last two weeks. But, you know, status quo remains. They have given them the money and greece has to perform. But there is not going to be any tension in here in the eurozone ahead of the german elections. It was as expected. Remember the First Tranche 2. 5 billion euros, has to be in place, actually they have to go to parliament and pass a number of the measures before july 19th in order to qualify for that 2. 5 billion euros. Were initially going to struggle to do that. No mean feat given the majority the government now do have, but the other question, of course, is the imfs continued involvement beyond their next tranche and whether ultimately there is a funding gap being created here. We actually spoke to the president of the europe group yesterday and he said there is no funding gap right now. I also did speak to the head of the imf Christine Lagarde and asked her, given what we have seen in portugal and portugal and greece over the last few weeks, have the firewalls that have been put in place been sufficient that domestic issues can remain precisely that, a domestic issue as far as the market is concerned. Listen in. Clearly what has been done over last few months in europe has improved its capacity to resist contagion, spillover from one domestic scene to another. The fact that the firewall, the european stability mechanism was built and developed has is a strong indication of that. But contagion risk does remain . We try to study spillover effects of policies decided in one country to the rest of the economy. And it exists. It happens, because countries are linked to each other either through trade or investment, or currencies and the case of the eurozone, the currency area is obviously, you know, forming a single region, which has its own rules and consequences. The focus today has been on greece. Given the political and the social backdrop, would you agree that the Implementation Risk for the reforms is as high as it has ever been . You know, when i look at greece, im very impressed by the efforts that have been undertaken to restore the fiscal situation of the country. It may well be that by the end of 2013 greece will be in primary surplus, which is an amazing achievement. Now, a lot needs to be done, whether you talk about the tax reform, the tax authoritys reform, whether you talk about the continuation of the privatization program, whether you talk about the management of the public service, all of that is still on the table, and work in progress and needs to be continued. But there have been clear achievements on that particular case. If you look at greece now, given those achievements, do you think ultimately it can afford a further writedown of debts . We have a list of actions that have been taken, a few more prior actions before we actually submit the program to the board at the end of july and then well see. As i said, one step at a time. There is definitely a recognition of the progress that greece has made with the finance ministers talking yesterday. But i struggle to find talking about the possibility of bailout number three when we get to the next review in the autumn. Implementation risk is a significant issue here in greece. For now, back to you. Jules, thanks very much for now. Alcoa Second Quarter net loss related to plant closures but adjusted results beat forecasts as revenue fell 2 because of low aluminum prices. Sales to the auto and Aerospace Sector grew. Alcoa sees Global Demand growing 7 this year for aluminum products. There are some exciting opportunities in the auto, aerospace, Consumer Electronics. Then we come down on the upstream business, which we can control the aluminum price. What we can control is where we are on the cost curve, coming down, closing facilities, curtailing those that are high cost, bringing saudi arabia online, the lowest cost facility on this planet. On top of it, there are legacy issues like the one were removing this quarter, trying to remove with the new initiations. Thats what were doing. Alcoa up 1 after hours in frankfurt and up about 8 . Been focusing on munich re today after the flooding we have seen. Munich had insured market loss above 3 billion euros. Lets get more on that. Annette is in frankfurt. Theyre talking about an Overall Economic loss of 12 billion euros caused by the floods in center, Eastern Europe and say the bulk of the insured losses of 3 billion euros had been in germany. Of course, that is because germany is in highly ensured market where the other markets in central europe. And theyre as well saying they give an update on what that means for the net profit in terms of their payments with their Second Quarter results. So all and all, theyre as well saying for the whole industry, natural disasters caused 45 billion u. S. Dollar in economic losses, and 12 billion insured losses in first half of this year. Compared to last year, thats quite a bit, because last year we have seen literally no losses, almost no natural catastrophes for the big re insurers worldwide which led them to quite suppressed price rounds in january as well and in april. The negative side, of course, now will see probably net income from reinsurers being a bit weighed down by those losses, but on the other side, we most likely will see higher prices when they start to negotiate them in october. With that, back to you. Over in france, citron shares moving higher despite a drop in first half. Many more details from the paris bureau. Why is the stock up . We had a good surprise, if you look at international sale, sales were up 21 in latin america, three times the growth of the cost sector in that part of the globe. And also the group was able to report a 32 increase in sales in china. The volumes are still very limited, but that is a strong growth. We knew the situation was negative in europe, but didnt know about that Strong International results outside in the world. And thats the reason why it is trading higher despite the negative announcement that came, nearly 10 contraction for sales in First Six Months of the year. Driven by a 13 contraction in europe. In europe, they were outperforming really the cost sector, the market shrank by 7 . In terms of outlook, we had a good surprise. They did not cut their forecasts for europe this year, still planning contraction of up to 5 , the same forecast at the beginning of the year, which means the cost of the carmaker believes the situation in europe will gradually improve towards the end of the year. We have two surprise, one for international safety, other for the outlook for the end of the year in europe. Over to you. Stephan, thanks for that. Bring up todays Global Markets report. Certainly weighted once again to the upside. Only around 40 odd stocks in negative territory. It is sunny, hence the color of my suit. As far as individual bosses are concerned, ftse 100 today is up about another percent adding to the 1. 1 gain yesterday. 74 points higher. Ibex up half a percent with the cac as well. Number of individual stocks worth looking at. Lmvh adding to italian luxury to its line. 80 stake in italys high end Fashion Group for around 2 billion euros. Thought the move could boost their appeal in asia. Lvmh up 1. 7 , unusual for a company like that to be up when youre the acquirer. And Salvatore Ferragamo up 2. 5 . Other stocks will go up with it as well. Bond markets today, and we keep our eyes, of course, on spanish yields, 4. 66 , where we were yesterday. 10year greek yields are lower, still above 10 . 10. 71 . Keep our eyes on the uk. Industrial production figures coming out in 20 minutes or so as well. Treasury yields worth noting, back down during yesterdays session. Hit the high of 2. 75, currently down to 2. 64. On the currency markets, dollar index hit highs yesterday. More contained today. Aussie dollar, moved away from last week. Dollar yen, 101. 21, where we were this time yesterday. 101. 54 the late may high. Pretty contained at the moment on currency markets. Lets recap that Asian Session for you. Sixuan with us in singapore. Thank you, ross. Global rebound taking asian stocks along for the ride. Japan was the top performer today, jumping 2. 6 to close at 6 1 2 week high. Weeker yen propped up export stocks like nissan. Retailers industrials and financials are all broadly high, but olympus got hammered. Down 5. 4 today on news that the company is raising more than a billion dollars to expand its medical equipment business. China markets made a modest rebound today. The countrys june factory prices remain sluggish, while inflation picked up steam from the relatively low base during last year. Lets not forget trade data is out tomorrow and investors are also eyeing more corporate earnings. Pboc refrained from pumping liquidity into the Banking System, but the sevenday repo rate eased to less than 4 . So pulling back from the lofty levels of over 11 we saw a few weeks ago. Banking shares gained ground in todays session, but developers were among the worst performers. We got very sluggish transaction. Volumes data for first week of july hurt by the tight liquidity condition. A quick check on miners in the region. Some lost nearly 10 in yesterdays session and rebounded today thanks to a higher gold prices. Back to you, ross. Thanks for that, sixuan. In china, higher food prices causing inflation to go up more than expected. Cpi climbed 2. 7 in june from a year ago. Producer prices did fall down to 2. 7 . Analysts say this latest inflation data further cements the view that china is not likely to move on rates for some time. Joining us from hong kong, chief economist at anz. Thank you for joining us, lee gang. Lets look at the number. Most of the inflation seems to have been driven by food prices. So what view will be taken by the pboc . Yes. If you look at the number it has rebounded slightly. But if you look at subsequential basis, there is no Inflationary Pressure at all in the chinese economy. If you then look at ppi inflation, it continues to fall for the 16 consecutive months, suggesting that in china, demand has been quite weak, requires some policy support in the near term. Do you think do you think the pboc will be considering easing . Well, the markets have been looking for policy easing for some time. Although if you look at interbank rate, it has fallen somewhat, but compared to the average in the First Six Months, still quite high at around overnight repo rate at around 3. 5 against average around 3 . We have already seen that high interbank rate have started to spill over to the real sector. Auto dealers are more concerned about credit crunch. They started to retrench lending to customers. Certain high risk sector will face significant credit crunch going forward. That will further dampen chinas real Economic Growth down the road. All these indicators suggest that perhaps pboc need to turn its policy to support chinas real economy in the second half. You believe there will be more credit rationing and therefore less credit . Indeed. Credit rationing has already started in some high risk sectors. And in this round of credit rationing, small and Medium Enterprises will tend to be affected even more, given that they have already affected by rising factor prices such as energy, labor costs, land prices. In addition to that, they have been appreciateiaing at a stead pace. If you look at chinas competitiveness against other asian economies it has been losing. So thats the reason why we think that despite current term pboc has been reluctant to support real growth, but real Economic Activity as suggested by ppi inflation remain quite sluggish. If there is no policy support in the second half for the chinese Economic Growth could well fall below 7. 5 as targeted this year. Whats interesting, if you look at this credit rationing, clearly on the one side, they want to dampen down the secondary the shadow Financial Sector. On the other hand, we need a lot of financial reform. What are they going to do . What are policies going to do to reform the Financial Sector which is going to be so important . Indeed, china will have to push forward Interest Rate liberalization. One of the major costs for the shadow banking activity in china was largely due to Interest Rate control. If banks have to pay very low deposit rates and if to prevent deposits from leaving the Banking System, this is the reason why banks have been engaging in off Balance Sheet activity in the name of shadow banking. In addition to that, china will have to even the regulation and the Financial System. At this moment, the Banking System has been put on heavy regulation, banks would have to have high reserve requirement ratio, high capital adequacy ratio. Meanwhile, a very harsh lone to deposit ratio at 75 . Meanwhile, nonbank Financial Institutions can flourish with heavy regulation in the Banking System. So thats why cbic may have to even have the regulation evenly across the Financial System. Finally, china need to liberalize its debt capital market, allowing those large firms to issue bonds in the there is a lot to do. By doing so, the chinas costs of funding can be reduced and as a result productivity can rise as a result. Okay. Liu ligang, thank you for joining us. Chinas benchmark index can provide clues to confidence in the region. One analyst says the shanghai composite is a good gauge of sentiment as the country sees more growth. Hsbc cut its gdp forecasts for the region. Learn more about the banks downgrade online. Follow us on twitter cnbcwex. Political deadlock in egypt allowed violence to erupt. Can a solution be found . For the latest after this break. [ male announcer ] its time. Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. 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Com to find out where a hoveround can take you egypts Muslim Brotherhood is calling for more protests today after 51 people were killed when the army opened fire on supporters of the former president morsi on monday. Meanwhile, the countrys interim leader is pledging to move swiftly with a timetable for elections. Joining us with the very latest, yousef is in cairo. Yousef . The army remains on high alert as the Muslim Brotherhood plans nationwide protests. This comes just 24 hours before the start of the holy month of ramadan. Tensions are running high. The Muslim Brotherhood say they would like a reinstatement of Mohamed Morsi, who they say is the legitimate president of this country. The Tr