Mobile space. And software ag warns on sales. The stock sharply lower in frankfurt after project delays will miss forecasts 37. Announcer youre watching wases was, bringing you Business News from around the globe. A warm welcome to todays edition of Worldwide Exchange. Take a look at whats coming up on Worldwide Exchange today. Analysts say we need to see deal activities more than triple to support the u. S. Economy. Janet yellen and mark carney face questions in their countrys respective policymakers. And banking on good numbers. Jpmorgan and Goldman Sachs post q2 figures today. Well get the latest on those. And building bricks in the economy. We take a look at future prospects as they get set to meet in brazil. Fighting has broken out in libyas capital destroying 90 of the planes at the airport. Militias have been vying for control of the airport for years. The u. N. Announced it was pulling its staff out of the country due to the deteriorating situation. At least 15 people have been killed in the violence since sunday. Have a look at how all markets are reacting, under a little bit of pressure this morning. Brent down by around 0. 3 . They slipped in trading yesterday. While keeping an eye on the situation, not necessarily worried about a broader oil impact for now. Israel says its security cabinet backs a ceasefire. However, hamas has rejected the cause for a lesson in fighting saying it is not worth the ink its written on. Cross border air strikes and labor bombardments continue. U. S. President barack obama has come out in support of egypts proposal. I believe further escalation benefits no one, least of all the israeli and palestinian people. Were going to continue doing everything we can to facilitate a return to the 2010 ceasefire. We are encouraged that egypt has made a proposal to accomplish this goal which we hope can restore the calm weve been seeking. Hadley campbell joins us now. Where does this leave us . We have israel saying we will agree to a ceasefire. Who in hamas is saying they wont . At the moment, its the al qaeda fighters. But youre not going to get a unified message from hamas yet. Youre not getting an official statement. There will be one eventually. If the ceasefire does go through, we will see relative calm in the next 24 hours and eventually hamas and the israeli leaders will meet in cairo and there will be negotiations, etcetera. But this is all contingent on some this is a unity government. They have had some consensus on what theyre going to do moving forward. This is the best time for israel to move ahead and come to the table. There havent been that many casualties on the israeli side. It looks like theyve made a Massive Movement to weed out terrorists in gaza and they still have Public Opinion in the west on their side for the most part. Because its a were under attack kind of statement coming from the israeli government. So if he can come forward at this stage and say we were just retaliating and now we brought everybody to the table correct. Is now the best time for israel to go on the offensive and try to take out some of the leaders in hamas given we have this situation right now, the civil war looking the other way and theres less support for hamas on the egyptian side, too. There is that side to the argument. The other is what weve been seeing in the press. This is the age of not just tv, but youre getting pictures, youre getting live action. And people are seeing the damage, really understanding some in the west, some in the United States for the first time what the situation really is. What a tight area this is, overpopulated. The israelis can call them ahead of time and tell them, by the way, were bombing this building and targeting this area, etcetera. But theres nowhere for these leaders to run. So theyre really getting a clear picture of what this really means when you talk about a ground offensive. And this is a naval bombardment of this area, very highly populated. Already were seeing hints of it. Its a longer, drawn out issue. Does this bring us any closer to an ultimate solution and an end to the ongoing violence we see . In terms of his poll numbers, he always does better when theres some sort of conflict going on. During the iraq invasion, you know, with economic numbers. Id like to talk to you quickly about libya, too. Whats the situation there right now and how closely should we be following that . I think quite closely, now theyre going to ask for some international intervention. This is another example of an unfortunate intervention from the west that hasnt led anywhere but to violence and chaos. But certainly in terms of the impact on oil, we have to keep watching this quite quickly. Thank you for your perspective. Now, russia has asked military envoys from 18 countries, including the United States to visit the town in a region where it claims one person has been killed. Its the latest in words between the two countries. The tensions have a negative impact on russian assets with the ruble falling for the second day this week, off right now by around 0. 3 . We have some breaking news, were hearing u. S. Military officials have lifted the grounding order for the lockheed f35s. The question is do they get over here and present themselves by the end of the air show . We did hear from the ceo yesterday in the show, and she was saying she was very hopeful. Ecb president mario draghi has assured the markets qe remains on the table. Speaking before the european parliamentary committee, draghi reiterated that the ecb stands ready to act if the risk of low inflation increases. Monetary policy stands, is and will remain a coccommodativ for an extended period of time. The council is unanimous in using other instruments, unconventional instruments if there is so that protracted the period of low inflation were to rise. Janet yellen heads to council today to give part one of her semi annual position on policy. The Senate Banking committee is at 10 00 a. M. Eastern. Yellen is expected to stick close to the previous statement. Yellen has repeatedly refused to specify when the fed is likely to start hiking rates. Tim of the s p indices joins me now. We just laid out a number of risks and ended by talking about central bankers and how seemingly they the end continued to underpin the markets. We talk about complacency in the markets right now and why we dont see follow vilt picking up. But you turn it on its head and say why is volatility, the vix in particular, so high . Its one of those things. In the past weeks, months, even, weve seen very little volatility for the markets. That number for the s p 500 is running at about 6 , 7 . Now, a very common measure is the markets specation of future volatility. That is currently at about 12 or double what weve seep recently. Youre making a sdijz between expect actions in the market and what were seeing in terms of volatility . Absolutely. Its what weve been seeing and what the markets, if you like, seem to be expecting. Theyre particularly worried right now. Or can you make money from this. And the answer is really to deal with the environment that were facing right now, which is the daily cut and thrust of news events, earnings season, so on and so forth. If we look at volatility, its twice as high as volatility. This is investors looking at the possibility of terrorists and saying, look, were putting a significant weight behind that right now. Absolutely. Thats not an usual situation. Its insurance if you like. How do i make money . Selling volatility is an expensive exercise if you get it wrong. However, it is potentially a way to harbor the premium to sell insurance. Its not a strategy if youre not courageous. By selling options, vix changes. Do you think volatility is why this divergence actually realized or expected volatility doesnt come down to what were seeing in the markets right now . Unfortunately, its too expensive to try and trade that. Its very possible, actually. You need capital and you need expertise and you need courage to provide insurance for the equity markets. Maybe there arent enough people with those characteristics to bring the vix down to where it should be. So is it that traders are picking up or is it about pricing and that its not a great trade here . Its a mixture of both. Its also the reality of where we are. There remains always rick to the economy, to the markets from classical Something Like an earthquake in the u. S. But remains daytoday surprises. Its very hard to say, should it be higher, should it be lower. Well continue to watch it. Thank you for joining us this morning, tim. Now youre looking at live pictures of berlin where fans are awaiting the arrival of the National Football team. Theyve just landed in germany after their victory. Will Angela Merkel be with them . Remember that shot of her looking slightly awkward with the German Football Team . Right now, those are the pictures of the crowds waiting for them. Up next, the shares are moving higher for h m. More after the break. Stay with us. Welcome back to Worldwide Exchange. European markets losing ground over the next hour or so, stoxx europe 600 down 0. 1 . The Industrial Production data yesterday, weve got an indication theres a bit of slowing momentum as far as the brief eurozone recovery data is concerned. The German Market under water by around 0. 2 . Weve got the zew survey out, not expecting a good reading given what weve heard from the economy minister in germany on q2 already. Weve got to french markets down around 0. 3 . Having a look at stocks, getinge down around 2. 8 after an unexpected decline in Second Quarter profits. Software ag down just shy of 15 . Shares plunging this morning after the firm cut their 2014 sales outlook. So right now, theyre saying revenue is going to be relatively stagnant. They have had higher forecasts, in fact, h m higher by 1. 7 . The fashion retailer posted a rise in sales for june up 12 compared to last year. Peugeot up just shy of 3. 5 . Jpmorgan upgrading the stock to buy. Moving on, we had traders overnight saying the positions right now are squarer than they have been going into the data and fomc meeting recently. Weve got janet yellen speaking later today, too. Their belief is even if we do see a shift in policy, youre not going to see the dollar moving off the back of that. Draghis comments about the strength of the euro possibly having some impact. We had the rba wait and see mode from the minutes today, too. Well take a look at sterling. We have uk inflation data out later today. And mark carney testifying on the Financial Stability report. Right now, trading below that 1. 71 figure and yesterday, 1. 7070 right now the level. Its a big week for cnbc as we team with Institutional Investors to present the annual delivering alpha conference on wednesday. Some of the biggest names in business and politics will be on hand and kate kelly has a preview. Were just a day away from our annual Hedge Fund Conference. There should be plenty to talk about. The trouble making money with global macro betts and where to look for returns in the stock market. Well have key note speeches by jack lew, continuing the tradition of always having the treasury secretary kick off the days proceedings. Carl icahn who will hopefully shed light on its latest plans for Family Dollar and new Jersey Governor Chris Christie. Im always looking forward to talking to ken griffin. In addition to managing 20 billion in his hedge funds and running a major marketing business, he has views about the banking industry, including a desire to see it broken up that he shared last fall. Glass steagall actually makes a tremendous amount of sense. Its not appropriate for the Securities Trading operations in our country to enjoy the taxpayer support implicit in fdic insurance companies. So the first thing i do is pull the securities businesses out of the Banking System. I would, in a sense, debank Goldman Sachs and morgan stanley. That notion becomes particularly interesting in an environment like this one where a bank like the embattled Credit Suisse is looking at selling off a substantial piece of its banking business. And citi just reported another down turn on monday are seeing flagging revenue amid higher capital requirements. Citi, by the way, has been a Major Holding of citadel for some time. Theyre always in the market for compelling longer term investments. We dont try to profit from calling the direction of the markets. We try to profit from picking individual companies that are going to outperform expectations of success. So were really in the single stock story. Which companies are going to have winning products, winning value propositions, but are going to create wealth of their shareholders that the rest of the market is not anticipating. Well hope to hear more about how theyre doing. That and this environment on wednesday. Back to you. Catch the coverage all day wednesday on cnbc as well as deliveringalpha. Com. Margo draghi says the strength of the euro is a risk to the risk and the ecb stands ready to act if disinflation exists. Justin joins me now. We think about naeshs that they announced in june are probably enough. Its very possible, of course, that they develop this idea of buying abs and sme loans. But in terms of broad based qe and the Government Bond markets, no. Im going to interrupt very quickly. Did you watch the football . I did. What did you think of germanys performance . I thought it was superb, argentina, as well. Were just looking at pictures now for the german team arriving in berlin. You can see them all coming down the steps there to meet the awaiting crowd. No sign of Angela Merkel right now. Did you see the picture of Angela Merkel surrounded by her Football Team . She looked like a little girl there i think with her National Team surrounding her. Celebrations in berlin. Well continue to show you those pictures as they come through. Theyre going to move around and end up at the brandonberg gate, i believe. Well continue to show you the shots. Qe is not coming, the tlros that have been announced are going to provide saurt. Are they going to provide enough support . I think the real question is whether the takeup will do very well on the supply side, if its a supply credit problem, as a result of banking leveraging, the banks simply cant increase their Balance Sheets any more. Remember, these are 100 with greater loans. Then it doesnt really help. Bearing in mind what is coming as far as liquidity and whats being paid back, the tension that we saw last week surrounding one bank in portugal and the confusion and concern that was caused in the markets right now, the prospect of no qe as far as youre concerned, how do you play these markets right now . Well, i dont see much of a read from the tensions in portugal to the broader peripheral markets. We did get a move in those markets last week. I think that was more the result of a lack of liquidity, both structural and seasonal reasons. Remember, were getting into the summer period now. Does that indicate some level of skill about the health of the eurozone Banking Sector . You say no . No, i dont think so. This does seem to be an isolated case. If there are more isolated cases, then fine. But does this become a problem for the european bond markets . The position is quite spread. So they could move the markets very, very easily. I have no idea how many sellers there were, but were going to revisit that at some point in the future. Talk me through what youre thinking now as far as the uk is concerned. We think the fiveyear sector has not reacted to the prospect of the cycle. Theres a possibility the twoyear yields might rise, as well. Actually, ten years could be relatively static going forward. Remember that the mpc has suggested that terminal rates may be at 3 or so. So, therefore, plenty of gilt at 270 or 280. Then when we move further up the curve, insurance companies, pension funds, buying that part of the curve in order to lock in posits we might have made in the markets. We would recommend being underweight that part of the structure. Great to speak to you. Thank you so much for coming on the show. Thank you. Now it seems Country Music giant garth brooks doesnt have enough friends in high places. He failed to reach an agreement on his irish tour and has canceled all five concerts scheduled for this month. That leaves more than 5,000 fans disappointed and requiring refunds. Brooks said previously he would play five or up in at all. Do you think garth was right to pull the plug . If you want to join the conversation here on Worldwide Exchange, get in touch with us via email, worldwide cnbc. Com, cnbcwex through twitter or direct to me, aj chatterley cnbc. How will Inflation Numbers speed into the mix . Stay tuned. Well see those in a few minutes time. The battle will continue. Palestinian remains defiant. Israel says it will agree to the deal. Investors turn their sights to Janet Yellens testimony later today. Another mega listing in the mobile messaging space. Lauren agrees to an ipo. And technology starts lower in europe as software ag warns on sales. The stock sharply lower in frankfurt following news that major present delays will see it miss forecasts. Expectations to see a rise of 1. 6 in the month of june. And its actually coming at 1. 9 year on year. 0. 2 right now in the month it was forecast at 0. 1 for the month. Significantly stronger than expected right now. Its actually on a year on year basis, the highest rates that weve seen since january of this year. The all goodness number at 1. 5 year on year. What we have as well is the rpix number coming in year on year, forecast at 2. 5. So