And china takes another blow with six more firms fined more from 100 million for price fixing. All right, warm welcome to the start of Worldwide Exchange. Stocks in the red today. Had the selloff in the states last night. Advancers outpacing decliners 72. The ftse yesterday down about 15 points. Then saw the dow off 93 points, s p down 9, nikkei below 40,000 this morning. This is where we stand with european, just over an hour into the session at the moment. And we pull it up. Were having a little technical issues right now. Dont know whats going on. Right. There we go. Good. Ftse 100 is down half of one point. Ftse mib up a quarter. The ibex is down twothirds. Bond market rates, keeping our eyes on gilts. Inflationary report due out 10 30 london time, half an hour from now. Maybe more dovish, mr. Carney, than some expect. We had a raft of really good data out of the uk, of course. And it is going to be about is he going to issue Forward Guidance. Gilt yields lower because of stock weakness. Keep your eye on treasury as well, 2. 6 . Italian yields, 4. 25, where we were yesterday. On the currency markets, big movers dollar yen six week lows, 97. 09. And below now at 96. 85. Dollar is slightly stronger against the pound. The aussie dollar down to. 8941. And euro dollar, 133. The big mover has been dollar yen, yen strong as well across the board. More on whats been happening in asia. Sixuan is in singapore with all the latest. Hi, sixuan. Yeah, thank you, ross. Taking the negative cue from wall street, asian markets also lost steam in todays trade. A stronger yen took a toll on japanese stocks. Nikkei 225, the worst performer in the region, down 4 to close below the 14,000 mark. Australian shares also had the worst session in five weeks, down nearly 2 amid uncertainty over the feds next move. China markets also reversed early gains as investors remained cautious ahead of tomorrows trade data. In japan, Tokyo Electric Power shares gaining as much as nearly 5 in early trade. Today reports that the government may step in to help deal with this toxic water problem. But shares reversed early gains along with the broadbased selloff on the japanese market, ending down by 1. 4 . Meanwhile, sony shares continued to sell off in todays trade, after rejecting 30 point proposal to spin off its entertainment unit. The stock tumbled over 4 . Let me quickly show you the resources space. Australian miners took a double whammy on weaker commodity prices, while Australias High Court upheld a controversial mining tax. Fortescue metals tumbled almost 5 . Chinese Property Developers showed pockets of strength today after vankes report card shows a demand in the sector remains resilient. More on that later in the show. Vanke shares gained a modest half a percent today, gemdale adding. 8 . And poly real estate gained over 3 in todays session. And thats all from me. Back to you. All right, sixuan, thanks for that. First it was richard fisher, now Charles Evans who is predicting the Federal Reserve could begin to reduce its Bond Buying Program next month. The president of the chicago fed who is a known dove, also told reporters he expects Interest Rates to be kept at an all time low until the middle of 2015. The dow is down 93 points in the end of the session. Joining us for more is kevin doran, Senior Fund Manager at branchially kimling. We did have u. S. Stocks up record highs during the week. It sort of seems like we have been priced for perfection. What is the risk over the next couple of weeks, do you think . I think the risk you got over the next couple of weeks is the markets rely on easing, production of new money, and, of course, as the economy does pick up, you would think that would be good news. But market is interpreting that as bad news because that leads to a quicker taper. Yeah. Earnings, what do you think of earnings . Earnings on the whole have been okay. Really sector by sector. The banks have a strong reporting season. But elsewhere youre not seeing a lot of top line growth. It is a combination of cost causing measures, not great in terms of top line growth and thats causing pause in the main stable market. On the flip side, you have the Banking Sector which i consider one of the strongest reporting seasons for some time. Well talk more about the bank and other earnings in a second. Questions for us, email us, worldwide cnbc. Com. Despite numerous property curves and slowing economy, chinas vanke managed to post a healthy growth in earnings. Jumped to 745 million. Vanke, which serves the mass market is a bellwether for chinese property sector and strong result is a good sign for the real estate market. Vanke shares up more than 2 in early trade, but gains were paired down by the close. Ing shares trading up despite lower than expected Second Quarter net profit. The dutch Financial Group attributed the loss to insurance and Investment Management business in asia. Speaking to cnbc, Patrick Flynn remains upbeat. Improving our margins. We have our interest margins up to 142 basis points. Were controlling costs. Fees are lower. Our costs are flat. That good cost discipline, improving margins, the Drivers Behind the good results. On mutual in the green after seeing funds under management rise 9 in first half. Stock up nearly 4 . The longterm Savings Group posted a pretax profit of 801 million pounds. Speaking first on cnbc, the coo gave us his take on the recovery of the uk economy. We have seen from the statistics coming through is that things are better. The question mark is how much better and how sustainable is that. I do have a view that Interest Rates are going to be kept low for quite a period of time. But there is more confidence, clearly. I think were all seeing that. Travel down 4. 85 . It saw Strong Demand across key markets. The Company Remains confident of hitting a full year Profit Growth of at least 10 . And stocks trading higher for swiss com despite a 10 drop in Second Quarter net profits. Switzerlands National Telecom operator hit by price pressures and lower revenue from roaming fees after the passing of its previous ceo last month. Swiss com announced it will appoint a new chief executive by the end of the year. Mixed bag of earnings there. Is there a is there a difference between ftse 100 companies and ftse 250s . A lot of people have been going long ftse 250, short ftse 100, they figure the uk economy is outperforming the rest the world to some degree at the moment in terms of what we expected. It is probably slightly more complicated than that. The u. S. Economy seems to be picking up with much more strength than european economies, no question about that. Some of the middle and far eastern economies are slowing down at the moment. For us, i think you have to be just a bit more clever than that, and go into individual companies and take a view on which sectors you want to be in, what geographical region you want to be exposed. And where does that lead you at the moment in terms of your Stock Selection . For us, i think the definitely more to be had within uk financials. We had a strong reporting season there. Lloyds probably got on to a premium. I look around the rest of the uk Banking Sector. As i say, stay off banks, well come on to that in a few moments as well. Well come more and talk about the Banking Sector. Interesting thing here, a couple of things have come out, which i thought was interesting, hsbc, there was a theme here. Hsbc talked about weakness in china and elsewhere hurting them. Diageo talked about that and was key to emphasize america. Is there a sense that some of those stocks that had we were buying because they had emerging Market Growth have suffered slightly . Chinese economy has gone through a massive change at the moment and will continue to go through a massive change. They have got to make this transition from a very construction, infrastructure led economy to more consumer based economy. And that will not be frictionless. That will be bumps along the way. Im not saying they cant do it, but will not be frictionless. The chinese have to get much more engaged with the economy. And theyll have to stimulate growth in other areas other than just moving roads, trains, bridges, et cetera. They have to really also the core Inflation Report today out of the bank of england. Waiting to see if we get Forward Guidance. Theyll try to anchor the short end of the bond market. What is your view of gilts at the moment and what is happening with bond funds . Shortterm, longterm, today the inflationary report is the biggest change in uk Monetary Policy since black wednesday and that sounds like hyperbole, but this is the biggest change since black wednesday. This is the next stage in what a 12 to 18 month project to move uk investors away from focusing purely on inflation. Were moving to inflation plus another variable. Yeah. Are we subsuming inflation . Are we downgrading it . Lets look at this. The uk has the debt to gdp ratio which suggests they would like to default on the debt. Let me the uk is not going to default on the debt. When youre uk sovereign body, there are another two levers you can pull on to effectively create a default. And the first one is to devalue currency. Look at what happened in recent years, thats definitely taking place. That allows us to default on foreign creditors. For the domestic creditors, you can default by inflation. We had inflation above target for a long period of time now and seem to be intent on keeping inflation above target for some time. Lets look at the uk. Since march 2009, when we sta started quantitative easing in this country, you had a 2 on your savings if you left them in the bank of the over the same period, inflation has gone up 18 , so 16 off where in real terms. This is a war on savers and inflation is a means of reallocating wealth from savers to borrowers. As a nation, we are a nation of borrow borrowers. Fair point. Good analysis. Stay there. Well talk about banks. More from kevin doran. Also on todays show, we have to be cautious on the eurozone recovery from the natixis ceo. Well have that exclusive interview in the next half hour. Bank of england back in focus. Mark carney expected to unveil Forward Guidance on uk Interest Rates. Well get his statement at 11 30 cet. So toe shiba foe toshiba expect forecast. The lone ranger Box Office Flop could cost the company as much as 190 million in the next quarter. Well talk about that at 11 50. Plus unicredit says there is early signs of recovery. Speaking exclusively to julia, well have the latest from milan coming up. [ 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. Its time to do everything better than before. The new blackberry q10. Its time. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . Nonperforming loans continue to cast a shadow over italian banks. Unicredit announced an increase of 1. 7 billion euros, rise of 35 on the previous quarter. Julia has been speaking exclusively to the unicredit ceo and joins us now. Hi, jules. Good morning, ross. Thank you very much. Yes, as you quite rightly point out, 1. 7 billion euros as far as loss provisions. If you compare that to the same quarter last year, of course, it was actually a lot less. We are seeing at least the progression as far as it is concerned is right. The direction at least were going in is right. I like the way he described the recovery and the change in progress were seeing in gdp too. He described it as changing a negative threat to a positive threat. What were looking at now is not recovery. But something that investors were very focused on here is whether the amount of provisions were talking about for the next year and in 2014 could actually be narrowed as a result of the change that were seeing here on the macro front. We are not surprised. When we had First Quarter, we said already second one will be much higher. For us, it is important the growth. This is the key topic we are focused on. We are doing a lot of efforts. I think that provision we continue to be high also in the third and Fourth Quarter. Even though our guidance indicates us to do better than 2012. We did extra at the end of december last year. So high provision, but better than 2012. When do we see a peak in nonperforming loans for the banking secretarier bank ing sector in italy . We believe the First Quarter in italy will be the first with the positive signal, over the previous quarter. When you look at the Banking Sector, you need one or two quarter to realize. I would say year end First Quarter, next year, we show some stabilization and growth. Some part of managing that is about new loan origination and now youre still actually originating less than being repaid. What else needs to be done to address that . We need two conditions, one, banks have to become more active. We are trying to do that. We need more demand from especially investment loans, very low. And demand is very low. We hope that if companies will realize that the economy is moving up, they will start to do investments and this will help with requests. He mentioned too it is not just a problem in italy. There a problem in germany and austria. To give you some clarity in terms of the growth impaired loans for unicredit, were talking about a sum around 59 billion euros. He did say they were looking at the possibility of selling off some of these npls, but there is no discussion with the regulator over a more systemic way of dealing with this. For now, at least, no bad bank here in italy. Ru russ, back to you. Thanks, julia. Good stuff. From italy to france, natixis releasing Second Quarter results. The french bank saw income beat forecasts. Came in line with analysts expectations. Stephane has been speaking exclusively to the natixis ceo and joins us for more. Stephane . Ross, the Second Quarter was impacted by one charge linked to the evaluation of its debts. The bank took a charge on the quarter of 20 million euros. While it took a year ago booked positive impact of 91 million euros. Thats the reason why we had a 29 decline of the net profit for natixis on the quarter. That was stronger than expected. Natixis also stated it was in line with expectation, up 2 . I caught up with the ceo of the bank to talk about the outlook for the banks starting with the Market Conditions. It seems like the Market Conditions were really tough during the month of june, but improve very significantly since then. And july has been pretty better environment in term of Market Conditions. In term of economic condition, there are signs of improvement in the eurozone, but i think it is too early to count on that in order to make any projection of real turn around of the eurozone activity. Signs are positive for the time being, but we have to keep cautious about it. How do you think you will perform for the second half of this year . Do you give a guidance . How do you fee, for instance, the cost of risk . We dont give guidance, we never give guidance about we have never. There is no more uncertainty today than ever. It is a policy not to give guidance. In term of cost of risk, we have always said our cost of risk on normal period years around the 35 basis point area, we are at 49 basis points today, slightly below where we were as i mentioned over the last two quarters. I dont expect that we should anticipate that it will go down further for this year. Again, i think that we have to be cautious on the level of Economic Growth within the eurozo eurozone. Natixis is going to unveil a new Strategic Plan in november. The plan for the next three years, the ceo, however, didnt want to confirm if the bank was going to cut some jobs. The french newspaper was reporting that natixis would cut 700 jobs by the end of the year. The recommendation was lowered to neutral from buy. In a statement, they say the restructuring and capital and retail policy from natixis was already priced in given the 38 increase of the stock since february. And thats the reason why natixis is trading lower, down 3. 4 . Ross, over to you. Stephane, thanks for that. More on the banks with you, kevin. You said earlier you like some real interest in uk finances. Why . What youve got on the bank, what would you be looking for is a checklist of things from banks you want. Asset growth, you want increase in margins, you want cost controls and want lower provisions. And if i go through the uk Banking Sectors that report, companies that reported recently, you can take pretty much all of the boxes. Of course maybe not in rbs and lloyds, havent got the asset growth. But, yes, funding led to higher interest margins, as they replace old mortgages on low Interest Rates with more Mortgage Loans and higher margins. Costcutting has been costly in the industry and we go to pr