Russian sanctions after discussing its lowest quarter output ever. Barclays investors reported a better than expected Second Quarter profit despite the decline of Investment Banking and a slew of investigations. Peugeot returns to profit and the Aerospace Giant reassures investors on its books. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. A warm welcome again to worldwide exchange. Lets give you a look at what else is coming up on todays show. Airbus Third Quarter profits take off as it assure its its forecasts are soldly. And held back by the euro, bayer posts a rise in profits, but how much of an impact did the single currency strength have on the numbers . I speak first to the ceo. Plus, have your popcorn in hand as the ceo of imax swaps the big screen for your small screen later in the show. And carl icahn steps Family Dollar for whats next in the late nest capital. We cross to new york to get you the latest. European markets right now, 8 2. St stoxx europe 600 is down 0. 3 . It is concerned about what the impact is going to be of the latest sanctions. Were calling them phase three. Well discuss them further on in the show. It does bring the eu and the u. S. Closer together in terms of their stance as far as russia is concerned. Right now, the ftse 100 is lower by around 0. 25 . The cac 40 off by 0. 7 . Despite the strengths were sear in airbus and peugeot. The micex is higher by 2 , shrugging off some of the concerns we had over just what step up in sanctions wrp going to see the last few days. Obviously with tb market right now not as bad as expected. What we have seen is the u. S. Focusing in, the russian agricultural bank, too. Sberbank notably missing from that list, right now being 3. 5 positive, gazprom up 2. 5 in line with the market, too. As i mentioned earlier, pageo on the up after the french carmaker narrowed its losses. The Company Posted its first positive contribution of its Auto Division in three years. Taking the stock up 5. 5 . Airbus up 3. 75 this morning, too, soaring after the Aviation Group posted a 10 jump in the underlying profits. The company says its steadying investment aviation. Stephane will be bringing an exclusive interview with the airbus group ceo, too. That is coming up later on in the show, around 10 35 cet. Right now this morning, as you can see, down 3 for total. The oilmaker is reacting to fresh sanctions on russia and total is saying its stopped increasing its stake in russian producers and embraced yesterday more sanctions. That statement are at 18 , i believe. Barclays higher by 3. 2 s lets have a quick look at whats going on in the bond markets. Broader sentiment in the equity market yesterday, we did see the u. S. Tenyear yield pushing you back down to that 46 level. We did see a better fiveyear auction compared to the twoyear. We were talking about that yesterday, too, even if rates go quickly, theyre going to be slowpaced from these kind of levels. 1. 1 on the tenyear bund. Comparing the eurozone to japan as far as the inflation outlook is concerned. Some other countries have been doing that a lot longer. Lets look at the Foreign Exchange rates. Euro dollar, 1. 34, the lowest level this year. Thats the european wrap. Sri is in singapore. Lovely to see you. Value mixed, as you can see here. A lot of investors are marking time just ahead of the fed, the fomc and payrolls, of course. Here is the outperformances on the south korean benchmark. Youre looking at threeyear closing highs for the kospi. They liked what they heard last week with the governments stimulus program. Markets in korea also largely shrugging off the industrial output numbers which came in below expectations. We also saw some pretty disappointing numbers on the Industrial Production side coming out of japan, as well, down by 3. 3 in june from the prime markets in terms of context, julia. That is the biggest pull since the march 2011 tsunami earthquake. Once again, youll see the lingering after effects of the consumption hike here on the data. The markets are fairley agnostic. Theyre shrugging off and going with the earnings which have been fairley robust. Shares having a good day today. A sixyear high for the s p asx 200. The banks, cda had a new record high today. China shares, though b we have been seeing some strong performances the past week or so. Some unwind today, breaking a sixday winning streak for shanghai. Gains on the index heavyweight petrochina were largely offset by some weakness and the give back on the Property Developers and on the back. Thats where we stand right now. Back to you. Thanks, sri. The European Union has announced fresh sanctions in the uk crisis. Banks will not be allowed to access the eu Capital Markets, is imposing arms embargo and export on equipment needed by the energy sector. The u. S. Has backed its allies including similar measures against bank of moscow, vtb, russian agricultural bank. Russia has hit back saying it will support banks on the list. While barack obama is calling on Vladimir Putin to back down. It is not a cold war. What it is is a very disk issue relating to russia not willing to recognize ukraine can chart its own path. If you listen to poroshenko and the ukrainian pt people, they specifically said they seek good relation wes russia. What they cant accept is russia arming separatists or carrying out terribly destructive activities inside of ukraine. Teanet, good morning. Good morning. We have narrowed the gap as far as sanctions are concerned. Have we gone trappfar enough . The restriction, well expected. It could be quite a lot of problem for a lot of european corporates in the sector. The main is the sanction towards the back. If anything, that will be the one that will have a bigger impact for russia. Right now, you have around 160 billion of tending which is from european or u. S. Counterpart. And i think more than 1 billion loans. So very, very larger now. In fact, the Banking System and the corporate system, the Corporate Corporation in russia big time rely a lot on International Market for funding. You make the point that some of these banks are assuring bonds as recently as this last month. And the number of times where the words sanctions appeared. What point are you making there . Was that an knowledgement to investors right now that there could be problems ahead . Well, for a stateowned bank, vtb and the gazprom bank and they did so. Obviously, part of the business, the add part of the business with company of people and the sanctions. So the properties are very complicated and the word sanction was mentioned between 511 times and 81 times depending on which one. Nevertheless, they achieved to enter quite a bond, 1 billion, 350 million of data for vtb. At the same time, one loan, as well, for large ou continue to issue the market and this market shares was for the western economy. I mean the u. S. Basically with the control of the dollar funding market can turn this significantly higher from this level. Do you think it makes a difference . Do you think what weve done to this day, thursday, when we get the full details as far as the eu is concerned, does it makes a difference . Today, more or less the investors are thinking if we be all right and we should be able to continue, it will be business as usual. I think from yesterday europe and from the states, it will not be the case and, therefore, it will have an impact. And the fact that, in fact, they could be at 0. 3 gdp impact for europe to list Significant Impact. Lets move on to that and some of the earnings stories. Taking a toll on total. One of the biggest decliners in europe, its analyzing the impact of further sanctions. Total says its stopped increasing its stake in russia producer novatek. Lets talk about that and then well talk about Oil Production itself. In june, an 18 stake. But they recently said up to 2020 this is going to be the dominant proportion of their oil and gas revenues. Yeah. It was fully to russia. It was supposed to be the big market. It is a back set of results. And maybe revalued. Everything on russia will make things difficult. If pressure again. Its a very, very disconcerted effort. So as far as youre concerned, the share price is the rally that weve seen in the last 12 months. 27 . Yes, i know, the company has done pretty well and in terms of valuation, its a bit cheaper than competitor. All right. Twitter reports its first ever headline profit with adjustedernings of 2 cents a share in the Second Quarter. Revenue more than doubled in mobile which now account for 80 of total avenue revenue. Ceo dick costolo says the world cup helped, encouraging users to download apps. We had a great quarter across the board, id say. Revenue up 124 . Thats great acceleration, a year over year for us. Again, a Fourth Quarter of revenue acceleration. Ive got Janet Yellens comments about stocks making money at the moment. What is going on here . Right now, the markets still expect them to grow. They are used to doing this, did very well for many, many years. At one time, investors remember twitter and start to make money. How long . How long do they get that stay of execution . Well, they get to 500 million active users and at that time they will start to make money. I think the advertising is doing very well. Its been very recent. In some country, you cant it was a great comment made by the ceo yesterday. 271 million active users, but there are two to three times more of that that actually dont log on right now. At 4. 4 billion impressions or tweets during the german and world cup gains. Were talking to the world cup. But its interesting that its not just about who logs on, its about who is looking at twitter, particularly important if youre looking at advertising revenues and the access you get as far as that is concerned. We have to take a quick break. Still to come on the show, deadline day. And argentina reaches the debt, is a second default inevitable . We hear from the committee of argentine, next. Stay with us. I voted for culture. With a k. how are you . I voted for plausible deniability. I didnt kill her, david. And i voted for decisive military action. America, you cast your votes. Now, go to xfinity on demand and select the peoples hotlist to see this summers top 100 shows and movies. I voted welcome back to the show. Some comments from the state ta activityic service in ukraine this morning. Future gdp down 4. 7 year on year. Follows a 1. 1 contraction in the First Quarter of this year. You need to focus on the situation of russia and the east of ukraine, but not only the fact that at the same time we know this is a country that is not only struggling to ease the loss of crimea, but also the fact that its dealing with a stringent imfe Program Going forward, too. Yes. In the ukraine because you have more than one in their life. And he said that you could use the poor states because hes competitive not in some part of the company, impossible to collect tax in most of the cup. And the Banking System probably will need reparation, which has not been done so far. They can see how this year they can turn around the economy. This political situation with russia could end in a few months. Well talk about that later in the show. Lets move on to other earnings. Barclays higher after investors cheer on a better than expected profit. Profits Investment Banking profit falls 46 . Helia, just talk us through the numbers. There are some bright spots in there. Yeah. The chief executive Andrew Jenkins will tell you this is a very good set of results. You might disagree, especially since the 900 Million Pound position for tpi takes them close to 5 billion. Thats a hell of a cost. Were not just talking about the ppi provisions here. As you mentioned, Investment Banking, profits down 46 . Revenues down 18 . This isnt happy news. There are some bright spots, yes, barclay cards would be the stand out contributor. Youve got profit up for barclay card, up 23 . Youve got income up, so profits up 24 , income up 5 . So very positive. Its slightly ahead for the Second Quarter. Its slightly ahead of analyst forecasts. Analyst forecasts Say Something like adjusted profits of 1. 7 billion have come in at 1. 9 billion. But this isnt a brilliant performance. Thief hit by litigation, most notably this lawsuit that was meteed out by eric schneiderman, the u. S. Attorney general, with serious allegations about fraud that barclays is battling in relation to its dark pool business. Well come back to litigation. Theyre making progress, arent they, pulling down or reducing the balance sheet, too. Im quite interested in the revenue drop as far as the Investment Banking division to get a sense of what proportion of that is down to restructuring the business, making people redundant versus a decline in trading activity that were seeing from some of the other banks. Yeah, look, i think the transform program, which is the program that jenkins held after he took over from bob diamond, that has had a lot of costs associated. Today, theyve said they have the lowest head count in terms of the overall bank since 2007. Remember, that was when they bought naeemens shortly after. So theyve dropped a lot of people. 19,000 people have been announced as going. So lets of costs coming down. So shareholders will be pleased with that. The problem is, you havent tackled the other thing which gets on share holdsers nerves which is paying those bankers bonuses even when profits are down. Remember, activities like macro and the Investment Bank really being hit by central banking actions overall. And even though the final director says no, you know what . Theres been some good Investment Banking, weve had a great quarter for ecm, a great quarter for m a, its not quite enough to pull them out of the doldrum. And that knock from the lawsuit filed by schneiderman about dark pool what the has meant a 75 drop in volumes. They were making money. I think it is tradition. They have to move away from Investment Banking and, therefore, i think they were quite different, all the numbers were quite where we stand. They were in europe in the uk markets and and that will be reliable for fit. The banks right now, times the value. A bank relying on Asset Management and goods will probably trade higher. Thank you very much. Yesterday, i spoke to the chairman and ceo of grayluck capital. He says the Global Committee of argentines bondholders might begin by asking what the likelihood that we see a lastminute deal. Heard things come out of the some of the discussions through the press that suggests that there are proposals that are being discussed and one would hope given the potential severity of a default, that both sides would look very hard for a solution. But its an interesting dynamic. On one side, you have a group of pretty hard hedge funds who have a lot of experience in being activists. And on the other side, you have a country thats being guided in some fashion by economics and the potential impact of a default. But really guided by politics, as well. And if you look back to the original default, 2001, a lot of the decisions the country made were based on the political opinion on the ground. And its very easy to inflame a population when they get a sense that there is an external act in imposing things on a country. So the political support, while christina kershfields support is quite low, the polls in argentina suggest the population is not in favor of paying the hold outs. So youve got this backdrop of possible problems of one side guided by hard numbers and another side being guided by politics. Again, one would hope this is room for something last minute because i think both sides underappreciate how bad a default could be. Theres a third element here, as well. Theres the 92 of investors that didnt hold out and actually took the Exchange Bonds. And the risk here that if they do settle with the hold outs of this stage and those investors are 92 actually come back and say hang on a second, what about us . Its a good point. Id quibble a little bit with the idea that theres a voluntary acceptance. I was the cochair of the average committee that tried to negotiate with the argentines. Our impression was that the offer in 2005 was relatively unilateral. The 2009 opening was the result of a negotiation to some extent. The idea that the Exchange Bondholders will come and demand the same kind of treatment, its a possibility and i think that certainly on the countrys side, they brought it up in the court, that its a potentially a ka lamb tuesday potential event. However, yesterday, one group of Exchange Bondholders came forward on their own to suggest that they would sign a waiver so that to say that they would not use this clause to get the same kind of treatment. I think most accept the fact that the hold outs will probably get a better treatment and, in fact, it goes down to benefit extraordinarily if argentina returns to the International Market because the spreads on the countrys bonds will express dramatically. Thats not to say there may not be some actions, but as a wholesale group, the idea that the Exchange Bondholders would move or use this clause is overestimated. Still to come on the show, governments agree to impose sangs on russia. Moscow says they wont have too much effect. Who is bluffing, though . Stay tuned. Well discuss. We needed 30