Results. Shares of Alcatel Lucent soar. We are seeing the beginning of our plan, which is a threeyear journey, which means that we will need still a few additional quarters to really turn around the the c he o tells cnbc the ecbs health check will help the industry. It will give consumers confidence. And the good news, facebooks revenue surges. The bad news, a key group of users, teenagers, arent longing in as much as they used to. Well talk to the cfo about the trend in 20 minutes. All right. A warm welcome to you. If youve just joined us here on Worldwide Exchange stateside, welcome to the start of your Global Market day. We are doing two things, basically. Reacting to corporate earnings and, of course, post the fed the balance of risk on that just changes to potentially a december pace. They look to the Government Shutdown and they delve into the weaker economic data. The ftse mib is up about 24 points. The cac 40 is currently down 11 points at the moment. The xetra dax is down 0. 2 . The ftse is down about 0. 3 , way down by shell numbers today. Lets show you where we stand with asian markets, as well. And a kickoff with the nikkei. Down 12. 2 today. The bank of japan, no hope to change its Monetary Policy or ease any further. Just add some stocks down there, as well. Sonys struggling tv business has seen it cut its profit outlook. Panasonic and sharp heading back to the black. Shanghai composite, thats down 0. 8 despite the fact that Chinas Central Bank pumped more money into the system and it did bring down money market. Not much help for the shanghai. Down with the rest of the Global Equity markets. The hang seng off 0. 4 . S p asx down 0. 1 . The aussie today stronger, had some strong housing data out of australia which suggests it will be less reasons for any rate cuts from the rba in the future. Now, u. S. Futures, the dow was down, what, 51 points yesterday, the s p down 8. 7 points. Right now, we are currently trading about three points below fair value. The nas tack at the moment, 30 points below fair value. Take a look at the bond markets. Did see treasury yields rise yesterday. Treasury yields, 2. 51 . We did see yield up 2. 53 . As equities have declined today, yields have come down slightly, as well. On the currency markets, the dollar is worth a twoweek high against a basket of currencies, moving away from that 11. 3823 which is where we are at a twoyear high a couple of weeks ago, as well. Dollar yen, 98. 27. A program is coming and thats raised expectations of an announcement at next weeks policy meeting. I feel it is, of course, august. A good thing to inform the markets as soon as possible. But on the other hand, the markets correctly anticipate that there will be a certain continuity inflicted in the provision. So in that sense, i think there is more practical actions. But at least my own decision is that if you know something is going to come, its better to announce it at appear earlier stage. Of course, there are different ways how to provide this liquidity. This is a discussion that is still going on. But i think we will be able to give results soon. All right. Head to our website, as well. Follow us on twitter cnbcworld. Right now, the Federal Reserve has left the markets scratching their heads that the central bank seems less concerned by borrowing costs, but has noted a slowing of the recovery than the housing market. Martin short, a senior economist at Fujitsu Research is in tokyo. Martin, are you scratching your head with the first statement and particularly the lack of mention about the Government Shutdown . Yes, of course, but wrefl it here. In japan, the domestic economy is doing as well as it possibly could. That was also in the bank of wars pans outlook today that domestic economy is doing well. But overseas economies export and so on are not pulling us as much as we were hoping for. So the outlook at become quite a bit mixed. Yeah. I just wanted to get your view of whether you think the balance of risk with fed tapering has changed. It has quite a bit. We still think that the bank that the Federal Reserve will be quite a bit more expansionary that we were thinking this summer. And i feel the impact in our markets in asia, in Southeast Asia we have still ongoing booms on many sides, which is helping a bit. But on the other hand, the dollar is right now weve got a lot of uncertainty, quite a bit weaker than we would be hoping for. So this is, of course, an impact on the outlook in the u. S. And we need this market back, of course. And here the accepts of the Federal Reserve is most welcome. Yeah. Meanwhile, the bank of japan as you mentioned stuck at cpi estimates this year. Still expected to hit 2 in flagz in less that two years time. They raised its annual gdp saying it wont derail the economy. So the question, martin, is is this unlikely to see more easing in the near future . Yes. This is quite unlikely. The domestic economy is very well on track and also the hike next year is not such a pain as many are fearing. The main reason for that is the government is spending more money on supplemental spending. So the domestic economy is well on track. The Inflation Forecasts are a bit overdone. We have inflation here, but that is actually not a positive development because most of cost push inflation is not helpful for households and economies. Is there any sense that were n into a virtual circle yet . We still seem to be reliant on exports, a housing recovery. Is there any sense that were going to get a virtual circle of investment . Well, most likely actually what the media coverage, news about japan, news about abenomics, they turn worse from here. There is a quite critical view in the meantime of the side of the bank of japan with the government. We provide the money first and then you come with the structure reforms that provide the real growth later. And very little has come in from the governments side. Everybody is starting to kick the government from the union side, from the employer side, from the bank of japan side and the ministry of finance. But that is good because the government is now discussing tax reform, it is now discussing structure reform. So in many next year, for keeping the government on its turf with less positive news is probably the most important thing to do right now. All right, martin, thanks for that. Martin schulz in tokyo. If you have any thoughts or comments, email us, worldwide cnbc. Com. On todays show, stress tests are welcome as cnbcs paribas. After the break, well be in paris to hear what else he had to say. Dublin is host ago summit with the top Web Companies and entrepreneurs. Within the next half an hour, well go there to talk to two rising stars on the internet. Ryan holmes and karen levie of gox. But the glory is fade iing an Oil Company Files for bankruptcy. Well discuss that and a big earnings story. Now a recap of the headlines today, more liquidity will avoid a shock ending to ltro. Auto a big earnings day across the world, Alcatel Lucent, some suffered in the european open, but shell stocks hit the skid. And in the u. S. , facebook beat forecasts, but worries persist over a dwindling younger audience. Plenty of werings in europe today. Third quarter profits coming in below estimates as refining margins and disruptions in nigeria take their toll. Well be joining the oil majors at 10 50 a. M. , in other words, 40 minutes from now. Bt group, meanwhile, found its outlook and raised its dividend. The new ceo of the Telecom Group says the firm is tearing off attractive new customers. Broadband is also become ago bright spot. Consumer revenues have grown for the first time in ten years. Theyre up 4 . Weve had a record share within 9 months of the quarter. Alcatel lucent up nearly 17 . It appears itsry structuring firm is continuing to work. It increased revenues for the Third Quarter. The ceo has told michael couples hes pretty happy with the progress. Things are getting better. We are still at the beginning of our plan, which is three years journey which means that we will need still a few additional quarters to really turn around. And another french stock up today, bnp paribas. Nearly 3 . An increase in net income. Revenue down on weak trading and its fixed income unit. Stephane has been speaking to the ceo and joins us now from paris. How does he seem when he spoke to him, stephane . Well, the numbers are quite strong. We were expecting a full decline of the net profit on the quarter. Bnp announced a 2. 4 increase in the net profit for this quarter. Ways the first french bank to report for this quarter. The Division Posted almost an 11 decline of its revenue. It is in line with the rest of the Banking Sector in europe. Our belief is that the result with income for that type of activity is very much in line as far as we can see. The results that are being communicated since last week, of course, were not giving, i would say, guidance for the months to come. The ceo of the bnp paribas says that the bank will not require Additional Capital as a result of the stress test in europe, which it believes also will improve the confidence across the european Banking Sector. Market reaction was very positive. You mentioned bnp paribas, but Credit Agricole up 3 . Over to you. Stephane, good stuff. Thanks for that. Just another exclusive that weve brought to you. Bernie is once again seeing red. Its tv business is struggling. Sony lost nearly 200 million in the Second Quarter and slash idiots full year operation profits by more than 25 . Japanese shares on tech are expected to fall for the year. Its back in the plaque in the Second Quarter, it doubled its profit outlook for the year. It plans to exit struggling businesses like smartphones and plasma displays coming in stream. And sharp posted its first profit in the couple of years beating estimates and display panel orders for the am iphone. Still to come, can you keep top on all your social media . Stay tuned as we cross to dublin to talk to the ce of of a platform designed to help you manage your online program. Whats his view about younger users not logging on to facebook as much as they used to . [ male announcer ] eeny, meeny, miny, go. More adventures await in the new sevenpassenger lexus gx. Lease the 2014 gx 460 for 499 a month for 27 months. See your lexus dealer. Just by talking to a helmet. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. Revenues rose 60 . The company said nearly half of ad revenue now comes from mobile twices. Facebooks stock jumped nearly 17 on that news but pulled back once the Conference Call began to end. And they ended down nearly flat. The cfo says they saw a decline in daily user activity, particularly amongst younger teams. He also said facebook doesnt expect to significantly increase the number of ads running in users news feeds. Revenue is up around 3 in this mornings trade. How much are they focusing on facebook . At a big tech event in dublin, we spoke to karen there yesterday. Shes there for a second day. Hi, karen. Hi, ross. Facebook is one of the big growth stories here in ireland. In fact, its expanding just down the road its irish offices. So it is a huge name in technology here. But many start yaups, as well. Double digits, about 13 odd percent. So getting a fast growing industry Like Technology up and running and getting the employment that goes with it is key to irelands fortune. I want to talk more about what is going on in this space. Joining me now is ryan holmes, founder and ceo. Your business is very interesting because ive linked up my twitter and Facebook Accounts and when i post, it goes to the other. I go and check my private emails, my work emails. What is the way to get all this connect and had to make life simple for me . Thats right. We help people connect twitter, facebook, linkedin, about 30 others social networks all in one place. You can schedule, accepted out messages to all of them and learn what people are clicking on, how theyre engaging with the content, what types of content. We help teams work more effectively and help using social easier. Particularly at this point in time when people are using facebook and twitter. We got some early numbers out suggesting that the users in the teenage category by facebook. So what happens if these websites start to decline and people dont use them as much . Where does that leave your business . I think weve seen that social media, social networking is here to stay. I think the that specific stat, you know, it really speaks to the emergence of other social networks, not a social chang. Weve seen things like snap chat, instagram having huge growth and i think that was a great acquisition by facebook in terms of how theyre incorporating other social networks and other channels into their product. So i think its in some ways for once its a good thing to have more social network sess a valuable thing for consumers, but also it goes to our value of helping people manage a lot of different social networks. Lets talk about the revenue models. You were one of the early ads on twitter who had one of the advantages selling dashboardes and ads. Do you think it works and do you think that theres more gains than starts we had identity there . Absolutely. I think the ad model is monetizing twitter, as well. When facebook had ipos, there were a lot of question marks surrounding how will they were going to succeed in this. I think theyve done an amazing job figuring out mobile since the time thiefb out and youve seen them get more sophisticated in terms of what theyre doing there. If you look back to, say, you know, google years ago when they were pre in their product, there were a lot of questions about if they can monetize it. Theyve done really well at that. Given the amount of time to optimize what theyre doing, all of the social networks will do really well. When when does it leave your company, then . Everyone is grabbing a slice of the pie and facebook and twitter have the bulk of it. Where does that leave your company . Yeah. Our product is a description product. Its free to almost 8 million users and paid for others. Our goal is to help make their lives easier. And so when we look at the ads, helping people create ads in our dashboard, the whole model there is to help make their liefgs easier. This Company Invested in your firm and invested in twitter early on. 160 million is the extend of money that you raised. This is a huge amount of money. What is the direction that your company now goes as the next stop in ipo . I think insight is an amazing partner to have on board. Obviously, they have good insight into what is going on in the market with twitter. Excel is our other investor and theyre the biggest ipo investor in facebook. So when you combine both of these groups, they have great insight into the data, the usage, and they really liked our business. And so as we, you know, talked with them over the years, they got more comfortable with where were going, they could see the numbers looking amazing. And were just happy to execute on that vision. Were building a company that looks like an ipo company. Were not in a rush to get there. And well see what happens over the next few years. But our first right now is on building a great business. Thank you very much for joining us today. You heard that story about the ipo. This is a big one that many of these Technology Companies eventually have a dream on. But some people want to maintain ownership over the company. Fact, the Company Coming up that were going to see after the break is booktop. Com. The founder will know joining us to talk about this. This is a company thats been valued at 105 million. The company says they want to le taken ownership and control of that company. Stay tuned. Orbiting the moon in 1971. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Central bank messages, the fed statement weighs on equities. The euro takes a hit after ecb governing member nowotny tells cnbc special liquidity could be on its way. Of course, there are different ways to provide this liquidity. This is still going on. Shares in Alcatel Lucent soar to the stoxx 600 as the ceo told cnbc things are improving, but there is work to do. We are still at the beginning of our plan, which is a threeyear journey and which means we will need still a few additional quarters to turn around. Cost custs allow bnp to offset revenues. Its ceos told cnbc it will help the industry. Illustrate should get additional confidence once this has been, i would say, implemented. The good news, faubs revenue soared. The bad news, a key group of users, teenagers, arent logging on as much as they used to. Welcome to the start of your Global Trading day if youre just joining us. We saw a bit of head scratching after the fomc meeting. Is the economy weaker or not weaker . What it has done is maybe just shift the balance of risk a little bit towards an early start. This is where we stand with futures at the moment. As far as european equities are concerned, we are down. Shell weighing on the ftse 1 00 today. Well talk abo