Industrial sentiment, the worlds biggest maker skf says the outlook is uncertain, but better than expected figures. Well hear from the ceo in 30 minutes. Warm welcome to you. Plenty to look at. Well dig into the resource sector fairly shortly. Before that, Goldman Sachs reports before the u. S. Bell this morning with analysts expecting another stellar set of figures. The investment banks beat expectations for the last four quarters. Analysts are estimating a 20 increase in revenue this quarter. We also expect cocacola to postearnings of around 63 cents a share, down from 1. 21 per share for the same period last year. The companys expected to remain pretty focused on emerging markets for growth. As far as Johnson Johnson is concerned, performance has been solid across all Business Segments with strength in pharmaceuticals, and health care. Shares up over 30 in the last 12 months. And then after the bell today, well hear from yahoo . Not expected to dazzle. The stock has. Up over 70 since Marissa Mayer took over. Shes marking one year at the helm of the Online Search engine. So well talk about those companies. Also on todays show, Indias Central Bank unveiled new measures to prop up the rupee. Well have the latest reaction from mumbai. Greek labor unions are protesting plans for civil sector job cuts. Well have analysis from a former imf board member from greece at 10 20. And cracks in peripheral are appearing in spain. Prime minister rajoy trying to stave off a political crisis. Well have the latest from madrid. Bull markets and Global Investors await Ben Bernankes day in congress tomorrow, well find out why one strategist is refusing to get caught up in the qe frenzy. He says tapering does not mean tightening. Dan greenhouse will be with us in the next hour. And i mentioned yahoo well be asking whats in store for the ambitious tech giant as Marissa Mayer is one year into her turn around plan, thats 11 30 cet. Any thoughts, comments, suggestions, anything you like, email us, worldwide cnbc. Com. Concerns over chinese demand and wet weather in australia couldnt stop rio tinto from churning out a Record Number of iron orr in the Second Quarter. They posted a 7 rise in iron ore output and more capacity is due to come online in the third quarter. Copper production was also up 10 on the year despite setbacks from landslides at a key u. S. Mine. Rio tinto stock, this morning, is bucking the trend up 1. 4 . Were waiting for the downside in europe. Danny morgan is Global Commodities analyst at ubs. Thank you for joining us. It is always a difficult period were going into for miners. How surprised you were by what rio had to say . Rios results were out Late Afternoon here in australia. And the market took it pretty positively. The stock was up a tad afterwards. You know, everything looked reasonably solid, just the one impact from in iron ore from, you know, a conveyor that was out. But rio is guiding the market to making that up later in the market schedule to be changed over anywhere. Overall there wasnt a lot in the result that surprised many people, but it was just a tad better than people had expected or feared. Yeah. People obviously feared chinese slowdown would impact. Doesnt seem to be iron ore plans are on track despite that. Yes, very much so. I mean, rio is full steam ahead with the expansion, which, again, guiding the market to be delivered in the late in the third quarter. And that is, you know, an extra 15 million tons of iron ore into the sector. That as well as delivering new tons later this year has made the market a little cautious about iron ore process heading into the back half of the year and, you know, china seasonally slows in the third quarter. People are a little worried about iron ore processes in next few months and we expect weakness and a correction. Okay. Stay there, daniel. Well come back to you in a second. In a move to welcome australias big mining companies, the companys Prime Minister will scrap the unpopular carbon tax. Set to abandon the scheme in 2014, a year ahead of schedule. Hes got to get through an election of course. Matt taylor filed this report in sydney. Reporter it was one of the most divisive issues facing australian politics, particularly dogging julia gill lards Prime Ministership. Today, the new Prime Minister announcing the carbon tax essentially will be scrapped and australia will be moving to an admissions trading scheme, one year earlier than expected. The ats will come into play on the first of july, 2014. It was expected to move to that floating price on the first of july, 2015. And this will say that fixed price currently around about 24 a ton significantly reduced the current floating price somewhere between 6 to 10 u. S. Dollars a ton. Comes at a cost, though, the government saying that there will be about a full billion dollar short fall when it comes to government revenue as a result of this change. But take a listen to what the Prime Minister kevin rud hd hado say about that earlier today. This change will cost 3. 8 billion over the four distance period for the budget. Well make up for the lost revenue with savings in other government programs. This is the fiscally responsible thing to do. In terms of plugging that short fall, the government announcing a range of measures that will ensure that the budget can be returned to balance in the next few years. These include cuts to Public Service jobs, about 800 of those will be going in the Nations Capital in cambria, saving 248 million over the forward estimates. Also changes to fringe benefits, tax and that particularly relates to fringe benefit taxation, with respect to cars. That is saving 1. 8 billion. Also the government announcing that it will be trimming some assistance to the call sector, which was one of the compensation measures as part of the original carbon tax. Thats the latest from sydney. Back to you. That was matt taylor. And also top u. S. Oil companies here plan to Tell Congress today easing rules on using bond yields could help stabilize prices. A Senate Hearing at 10 00 a. M. Eastern, it is prepared remarks, saying the governments feel the prices are affecting products. The renewable fuel standard calls for increasing amounts of fuel like ethanol to be blended into u. S. Gas and diesel supplies. Right. Lets get back out to daniel. Global commodities analyst at ubs. Back to this carbon tax, if they lift that, how much of a boon is that . Look, the carbon tax has been part of a number of initiatives that the government has put in place, that has put, you know, added cost pressure on the resources industry. There is the carbon tax, more lengthy environmental approvals. There is the mining tax as well. So, you know, there is a part of a fabric of issues the government has how miners do their business on. Todays news, it changes or brings forward the emissions trading scheme of the proposal, so, you know what we would have had a couple of years time, that just comes forward a little bit. Not a huge change and the market should reasonably take it in stride. These are factored into forward estimates of company earnings. I guess it does add to uncertainty about government policy. You know that is an issue for the sector. But governments havent made it easy for the Mining Industry for the last few years and people looking to an election to see, you know, a bit more certainty later this year. Yeah, we already talked about rio. And you like that. Glencore said theyre abandoning their iron ore. But you still like the stock. Why . The news today on iron ore, it is not a huge driver of the glencore story. The iron ore news today is more about byproducts in one of their mines in australia. It doesnt fundamentally alter the story to us. What we do like about glencore is, you know, youve got a big cost out story, merged two businesses together, you know, yet to see all the benefits of that realized, so were looking for that to help the stock, and, you know, more generally strategically in this time were looking to be in, you know, the more diversified companies, which have, you know, more stable cash flow. So, you know, for these reasons we prefer glencore, but we actually prefer rio and bhp a little bit more. For the margin of safety. Okay. Daniel, thanks for that. Good to see you today. Thank you for joining us. Thank you very much. As governments face pressure to tap the growth of climate change, is this a sign that Green Energy Push is losing momentum or simply put green energy going out of fashion. Join the conversation at worldwide exchange. Email us, worldwide cnbc. Com, tweet cnbcwex or direct to me rosswestgate. Youll see were waiting for the downside today. Advancers outpacing by decliners here by about 7 to 2 on the dow jones and ftse 100 up some 41 points. Right now down 9 points. The focus is very much on earnings as normal. Well come to that in a second. Xetra dax down half a point. Ibex down. 9 . You look at the fallout from the scandal with Mariano Rajoy. Number of individual stocks in focus today. Telecom italia is down 3. 5 . Said it wants better regulatory conditions before moving ahead with a spinoff of the fixed line network after the local regulator cut the fee its rivals pay to access the grid following a board meeting. Telesaid the move had created uncertainties and could affect the feasibility of the spinoff. Commerce bank off 1. 2 . The paper which cites financial sources says the Retail Banking business is its main focus. What is going on with Commerce Bank . Annette is with us from frankfurt. There is a firework of speculation surrounding Commerce Bank. There was this news that wolfgang has been in talks with ubs and now santander looks like the more interesting party or the bank who could really be interested in commerzbanks retail customers because santander is a retail bank. In germany, theyre owning already scb and Ge Money Bank they acquired recently and theyre both successful in that business as well. One has to say the Retail Business is really its problem child as well, next to, of course, all the bad assets which they have to write down, but the Retail Business as such is oversized in terms of people and has too high costs and now they need to cut a lot of people the bulk of the job cuts will be in its Retail Business of commerzbank, so it is a turn around story. And if there is any truth in that report, it probably might be sold to a discount. The other big thing is it might not be in the interest of the german regulators because 11 million retail clients based here in germany are quite huge and there might be some protection from that side. So it will be interesting what is going to happen, but, of course, it really looks like wolfgang, our german finance minister, was for the 17 stake, ross. With that, back to you. Annette, thanks for that. We also focused on changes in ownership rules has given the bank a lift. The foundation it krolz it wants to scrap bylaws preventing investors from owning more than 4 . Skf also up 2. 82 . Reported better than expected numbers this morning for the Second Quarter, helped by cost cuts. Well speak to the ceo later. Earnings to bond markets. Really a case of waiting for mr. Bernanke. Treasury yields, 2. 54 , away from 2. 75 we hit last week. Inflation data in 15 minutes from the uk. Giltyearolds 2. 33 . Spanish yields still elevated 4. 75. Currency market, cautious ahead of mr. Bernankes testimony tomorrow. Aussie dollar, 89 handle, just above that at the moment. Sterling above 150. Euro dollar, 130. 68. We traded in a 120 137 range for the euro dollar over the last month. Thats where we stand right now here in europe. Lets check in on the markets in asia. Well focus on india where the central bank is set to tighten liquidity. It was an unprecedented switch the rbi took last evening but it is pretty much in line with what a lot of emerging markets had been doing in terms of curbing the volatility they have seen in the currency. We have seen it with indonesia and brazil, so now the rupee has preceded over 10 or nearly 10 from may 2013. In terms of a couple of initiated last evening, the amount which the bank can borrow from the liquidity adjustment facility will be around 75,000, so the cap of the ceiling has been around 75,000. Thats one of the steps which has been undertaken in order to suck up the liquidity from the system to provide lack of volatility within the inr. Now if the banks cannot sort of borrow from the liquidity adjustment facility or the organized facility, then they have to move to the marginal standing facility which is basically the rate which they can borrow from the rbi at which is now hiked to 10 and that is above 200 basis points. They want to make it more difficult for banks to access liquidity. What does this mean . It means cost of borrowing will go up, wholesale funding will become much, much tighter. A lot of banks within the indian space are down on the back of this news. With that, back to you. Thank you for the update about the india market. We can see sensex is underperforming the rest of asia. All these major asian indices ending on a red note. The nikkei 225 played catch up to the rally after a long weekend ending higher by. 6 . Weaker yen helped exporter stocks. South korea, india and some Southeast Asian markets saw profit taking after their recent value. The pboc once again held off from any open market operations, a few midsized lenders came under pressure today after recent gains. Ping an bank lost over 1 . Technology shares in both the mainland and hong kong markets rallied on the hope of supportive policies. Tencent jumped 2. 6 to close at a new record high. In australia, the rba minutes remained dovish as the rates will be kept at record low in july, while there is room for further cuts. Banking shares were broadly higher. Westpac gained over 1 . In the mining space, we talked about rio already. Paladin energy surged over 7 thanks to record production and strong sales numbers. And now lets get back to now back over to ross in london. All right, sixuan, catch you later. On cnbc. Com, the question everyone on wall street is asking, wilbl bernanke surprise us again . Why some experts say we should never say never when it come to the fed chairman and monetary stimulus. The aussie dollar surged. Some think it is a temporary move and downtrend is still firmly in place. Catch the investment call as well, all on cnbc. Com. And the pain at the pump continues with Global Economy feeling the pinch from rising oil prices. How high can they go . Is it a threat for recovery . You can also follow us on twitter cnbcworld. A fresh austerity bill with thousands of Public Sector jobs on the line. Well talk about the implications for the administration with former imf board member eamanda zaphr. Thats coming up. I want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. Our Business Needs more cases. [ male announcer ] where do you want to take your business . I need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, Small Business solutions from at t have the security you need to get you there. Call us. We can show you how at t solutions can help you do what you do. Even better. Greek lawmakers begin voting today on whether to press criminal charges against a former finance minister for his handling of the socalled lagarde list. If convicted on charges of tampering with evidence, he could face time in jail. He denies the allegations. Also today, the two main labor unions in the country will hold a 24 hour strike protesting against the governments latest plan to cut thousands of Civil Service jobs. It is part of the countrys Reform Program which needs to stay on track to ensure the next dispersement of aid from international lenders. Amanda zaphr is a former board member for greece at the imf. This is the omnibus bill voting in on wednesday. Presumably because they want to tackle reducing jobs in the Public Sector, something which i understand they havent had much success with. Actually that is the most contentious part of the omnibus bill. Its part of a long delayed plan to reduce the size of the bloated greek Public Sector to target redundancies. So after three years of austerity, which saw the Unemployment Rate shoot up to 27 , no Civil Servant had been fired until the closure of the public broadcaster last month. So now as part of the agreement with the troika of creditors, greece has to place more than 4,000 Civil Servants on a mobility scheme, which means that if they cannot find a job elsewhere in the Public Sector within eight months, they will be fired. Yeah. Its only really the start of a program. Public we got one thing we need to slim down clearly the Civil Service and get a Privatization Program going as well. So where does this sit within the broader scheme of doing the right things for the next tranche of aid . For privatization, there has been an agreement with the troika that the targeted 2. 6 billion in revenues this year have been scaled back to 1. 6 billion because of the failure to private iize debt. That is now placed on the back burner, but the whole issue is really the downsizing of the