Equipment supplier disappoints with weak Second Quarter earnings. The market also waiting for nokia numbers with the hand setmaker expected to confirm that losses have narrowed. And its decision day for dell as shareholders are set to vote on the companys buyout offer. Carl icahn who is leading the bid against the deal got the last word right here on cnbc. Ive never seen one as bad as this. I really mean it. Ive never seen anything where they actually go out and they scare their own shareholders. And another big name investor causes quite a stir on cnbcs delivering alpha conference. Nelson peltz calls for a shakeup in the Food Industry urging pepsico to merge with mondalese. Good morning, welcome to todays show. Plenty of news out there today. Let me bring you up to speed with some news crossing. Ecb is not all purpose weapon for all problems. So suggesting that perhaps the firepower of the ecb cant solve all the ails of the eurozone. There is plenty on the corporate front today. Let me tell you whats coming up on todays show. As greece signs off on fresh Public Sector cuts to meet austerity demand, well hear from a german mvp of greek originalen who says the troika should apologize to the great people. He joins us at 10 30 cet. And spain looks to sell up to 3 billion euros in bonds. Will investors keep their cool . Well have the latest from madrid where stephane pedrazzi has been this week. And tokyo, where shares of softbank are higher. Well tell you more live from the nikkei in about 30 minutes time. And Morgan Stanley is reporting Second Quarter earnings on the back of a Strong Quarter for u. S. Banks. Will the good news keep on coming . Well discuss with u. S. Bank analyst at 11 45 cet. Plenty coming up on the show. Feel free to get in contact with us, worldwide cnbc. Com is our email address. Were looking forward to your correspondence today. Ben bernanke did not rock markets as many had feared. He soothed tapering concerns saying any winddown of asset purchases depends on the economy. Not a preset timeline. Speaking on capitol hill, he said the central bank would be keeping policy flexible. Indeed if needed the committee would be prepared to employ all of it tools including an increase in the pace of purchases for a time to promote a return to maximum employment in a context of price stability. One man who did move markets yesterday was famed activist investor nelson peltz. The founder of the tree Fund Management made some waves at the delivering alpha conference that he had acquired a huge position in dupont sending the stock to a 13year high. And moved pepsico to an all time high by arguing he wants the soft drink giant to buy food group mondalese. Youve talked about this. I have. My understanding through my own reporting is you have a meeting planned with irene rosenfelt, the ceo in the next couple of weeks. I do. What has been the response from pepsi . Pepsi right now doesnt love the deal, okay. And im asking all the shareholders of pepsi and m ondalese, get your cards, let them out and send them to the board to back this transaction. We got plenty more of that set to come on the show. Stay tuned for more sound from the worlds top investors speaking at cnbcs delivering alpha conference. Sap shares are moving lower after the german tech giant warned of a Slower Growth in china. Also trimmed its software outlook. Group says it now sees 2013 software and related Services Revenue up to 10 compared to earlier forecasts of 11 to 13 . Lets get out to annette in frankfurt. A little bit of volatility in sap shares of late, but particularly today on the back of these numbers. Tell us about the outlook now for the company. Well, as you already mentioned, the outlook for the software revenue, which is, of course, the biggest chunk of the revenue, has been revised downward. That was quite a bad surprise here. Analysts had expected that the quarter wasnt really great, but they most of them at least expected the Company Keeps their outlook stable, but, of course, one of the big reasons was the chinese slowdown for the company and as well what that means for the whole region. Take a listen what the coceo said today in the morning when we spoke with him during squawk box. We see the slowdown of the economy in china affecting the countries around china. We have reiterated our guidance for the full year on operating income, which means were managing to the situation in asia, and at the same time were accelerating the pace for the future, which means were best positioned to take advantage of the transformation of the industry and i think best positioned to be in asia when the market picks up. So the company has different battlegrounds. On the one side, we have the geographically weakness in asia, but then as well the whole industry is changing. So looking at the detailed numbers we have Cloud Computing coming up and sap is saying Cloud Computing actually is eating up a bit of their traditional revenue, but at the same time, not making the same revenue, so you see a whole the whole industry is changing and making it very difficult for such Software Giants like sap to operate. But at the same time, there is some Green Sprouts and they are happening in the United States. And so, again, listen of what jim is saying about the United States. In the u. S. , at the Cloud Business, it is now more than 25 of our total software and Cloud Business. So you really see how this acceleration to the cloud is happening first in the u. S. And were taking a leading role. So all and all hes quite optimistic about cloud. Business, but it remains to be seen how long it takes until other nations, europe or asia, is actually catching up with the development in the United States. And, of course, there is security concerns, above all from european clients he said as well during the interview today in the morning, because they want to know whether data is protected in those clouds with all these nsa standards going on, which is, of course, highly discussed here in europe. For now, the shares are taking a dip, but when asked to point out that sap shares were valued compared to their competitors such as oracle, quite at a high pe, forward trailing ratio, comparing pes trading before today, compared to yesterdays pricing at roughly 17 2013 pe, oracle at 11. Those shares now taking a dip, the revised Forward Guidance in terms of Software Revenues is not a big surprise, karen. With that, back over to you. Thank you very much, annette. Sap on the dax at the bottom of the pile so far today. Elsewhere, ibms Second Quarter profit fell 17 , but still beat forecasts. Revenues came in slightly shy of estimates on declines in services and hardware. Though Software Sales rose. Big blue is raising its fouryear profit outlook and on track to post annual earnings of 20 a share and return 70 billion to shareholders by 2015. Ibm rose 2 in after hours trade and you can see on the general market it is currently ahead more than 3 . Ebays Second Quarter profits fell 7 just missing forecasts, though revenue improved, boosted by paypal and core marketplace business. However, ceo john donahue warns of economic head winds in the second half of the year from europe and south korea. Ebay expects full year results to be at the low end of expectations. Shares fell 5 in after hours trade. And here is a look currently in frankfurt, down about 5. 25 upon the set. Intels Second Quarter profits fell 29 , matching forecasts, though revenues just missed estimates. The Worlds Largest chipmaker is cutting its fouryear revenue outlook and scaling back Capital Spending as it adjusts to the continued slump in pc sales and economic slowdown. New ceo brian shannic says intel has been slow to respond to consumers, shifting to smartphones and tablets but intends to make up for lost time. Intel fell 4 in after hours trade and in germany, it is just down over 4 . You can see where the pressure is coming from across on the european markets today. Earlier the european director at intel Peter Glassner told cnbc that a pickup in global gdp would provide a direct benefit to pc companies. Currently were in a difficult market environment. Once that lifts, i think there is lots of opportunity for growth in the data center. There is lots of growth already in our mobility tablets and smartphones and possibly beyond that. There is plenty of groenl in the computer industry. And therefore also for intel. Intels rival in the Worlds Largest contract chipmaker beat forecasts by posting record high earnings in the Second Quarter. Net profit climbed 24 to 1. 74 billion from a year earlier. That was thanks to healthy demand for chips for mobile devices. Gross margin also came into the top end of its guidance at a healthy 49 . Joining us on the phone from taipei is bruce lew, an analyst at clsa. We know there has been extraordinary demand for smart phones, shouldnt be any surprise to us that the manufacturers of the chips that go inside the phone are also doing well. Most analysts are still bullish but the Company Continues to deliver better than expected results for the past seven or eight consecutive quarters. I think this is truly a demonstration of execution and they capture the right trend for the smartphone. What is the outlook Going Forward . There was some concern about the momentum. Some analysts are saying this is slowing the companys business. Do you see that from your side . Yes, actually dr. Morris chan also addressed this concern. Morris mentioned the momentum is slowed down in the second half. He foresees that inventory levels for the smartphone and the pc is slightly higher, so he foresees the production control in fourth quarter. How important are the contract deals, because there has been a lot of chatter that perhaps tsmc will work with the likes of apple because there has been an ongoing dispute between the likes of apple and samsung, samsung having previously manufactured a lot of device or chips for apple. Do you think this is opening up the Playing Field and will they get a greater slice of contracts . We do believe that, we do see tsmc will have revenue drivers starting in 2014, starting at 29. We believe tsmc will make chips for apple, which will be the Revenue Growth driver. How is the industry placed . It feels as though the Capital Investment required to remain in the investment is fairly high, which leaves the Playing Field fairly open for the largest operators in the sector. Is that the right assessment . Yes, exactly. We do see a clear consolidation for the industry. Actually, it is happening for every aspect in the industry. Look at the semiconductor, almost everywhere we see growing monopolies. So this is the trend. We just cannot part with the trend. The company is well poised to pick up some business. One of the big concerns that people have is the ability of the company to deliver on time. In the past it often missed on the delivery of certain contracts. Is this still an issue in the company . I have to rephrase the statement. We dont think that we believe we always deliver the statement, deliver the product the customer wants. So basically we the execution has been quite solid for the past 15, 20 years. We believe it continues on time for the customers. Let me remind you in the Video Conference calls that used to take place where pretty much every time the ceo is complaining about tsmc not providing the company on time. The different customer has a different need. You also referring to also mention in the Conference Call after the quarter, they see the yield is ahead of their expectation. They deliver is no problem. You see that comment from the biggest customers. Tsmc is different from qualcomm. Qualcomm never complains about deliver. Give us a broader sense of the market. There is a lot of concerns about the slowing down in china, highlighted by the aspects of tcmc. Will this affect earnings . I think the biggest earnings driver for tsmc is coming from three fold. Number one, smartphone growth, migration, competitive landscape. You talk about the overall smartphone growth slows down, that would impact the earnings for tsmc. You look at tsmc, their contribution from china is growing very fast. They just mentioned that the revenue from china is actually double for the first half of 2013. Thank you very much, right now. Bruce lu, analyst at clsa joining us. South korean lg display handily beat forecasts by posting a 53 jump in its q 2 earnings. A lot of earnings out today. The operating profit came in at 326 million, way above a reuters poll of 270 million. Analysts say lg should continue to enjoy solid sales as apple is planning to launch new devices this quarter. But margins could suffer if the u. S. Tech firm decides to roll out cheaper models. And bumper earnings number formulation, Stock Exchange operator. Its net profit jumped to 17 million in the Second Quarter from a year ago. Thats mostly due to a surge in Trading Volume after the ruling party returned to power following a closely fought election. Bursia malaysia expects results higher thissier as earnings potential of Listing Companies improve. In a different note, the rise in chinas home prices appears to be slowing. June data shows average new home prices in 70 major cities moderating for the third month in a row. Analysts say thats likely due to the current liquidity squeeze where prisses were 6. 8 last month compared to a year ago. Market watchers says that underlines the tough challenge that beijing faces in taming prices without disrupting stability in the markets. To li sixuan for more. Some would be happy with the rise on in prices on homes. Never going to be able to afford a house in beijing, i guess, but generally, a mixed day of trading in asia. Let me start with japan. Despite the survey showing weakness in terms of business sentiment, the nikkei 225 the outperformer in the region, ending stronger by 1. 3 to close out at eightweek high. Australias asx 200 also marginally in the again now with banking shares lending support. But seeing china markets and south korea under pressure ahead of the second day of bernankes testimony. Some individual movers to tell you about in japan, exporters got a lift thanks to weaker currency. Sharp jumped over 4 today on expectations of a smaller than expected operating loss for the june quarter. And mobile carrier softbank also extended the rally, soaring 4 , this after chinas ecommerce giant alibaba nearly tripled its q1 earnings. As karen mentioned, data showed housing prices in some major cities jumped nearly 7 from a year ago. In south korea, heavyweight Samsung Electronics lost over 2 on profit taking and also weighed down by u. S. Pier intels beat forecast. But casinos rallied as shares of grand Korea Leisure jumped 3. 7 today. Sixuan, thank you for that. Let me tap into the overall sentiment here in europe. As i walk across the heat map, were still tracking positive territory, though there is still a fair amount of red in there and the heavyweight dragging down this market, particularly from the tech sector with earnings out from the likes of ericsson that were disappointing and sap, dragging on the German Market. Still dragging. 1 . Lets move on to the individual plays and you can see where the strength is coming from. In particular, the likes of periphery, the ftse managing to gain some traction, ahead. 4 . Not far off that 6,000 point mark, just one point off that level at the moment. Xetra dax just slightly underwater now, 4 points lower. A lot of concerns about the Big Companies that do business in china and if the slowdown on the main land is showing up in some of the numbers. There has been a lot of optimism already, even though were early in the earnings season, but the numbers would be slightly better from europe. For instance, just 6 of companies that reported so far, but 56 of companies have met or beaten expectations, so some negative numbers coming out today havent been digested all that well. On the periphery, this is where we are seeing the gains, the lax of the ibex in spain getting close to 7,900 points and the ftse up. 3 . Bond markets as well, we have got a spanish auction coming up today, 3s, 5s and 10year paper on offers for investors. Currently the spanish yield is a little higher at 4. 77 as paper is sold off, but elsewhere we are seeing yields push lower on some of the core trades. Bunds getting closer to 1. 5 . Tenyear treasuries back low 2. 5 after bernanke seemed to ease fears about tapering. Yield has come back a little bit on that. Carneys comments yesterday, and now gilts tracking ining. 225 . The trade on the sterling dollar when minutes came out yesterday from the boe, we have given up some ground and this morning down. 25 . The Australian Dollar giving up 92 market, sharply lower,. 75 . Dollar yen rates are supported. In fact, the Dollar Strength is playing out here, but more a story too of yen weakness. And the euro is stronger to the japanese yen. This as we have upper house elections. We are seeing a lot of foreex traders sell down the yen and thats why the trade is moving around. Eurodollar rates fairly steady 131. 12. A rough ride for nokia in recent years. Can the new louima mo