Regulators. The headway number in just a few minutes. And is italy headed back to reception . This as german Industrial Orders see their largest drop in three years. 6. Announcer youre wachgs worldwide exchange, bringing you Business News from around the world. This is whats coming up on todays show. Whats your plan b . We bring you the highlights. Plus, a second ebola patient arrives in the united states. What is the real threat to developed nations. Can the companys earnings beat despite the weakness . 21st scentury fox is droppig its bid for time warner. He says the offer had merit, was compelling financially and foxs approach had always been friendly. He says the drop in foxs share price since the bid was unveiled last month makes the bid unattractive to shareholders. Time warner says its committed to shareholder value. 21st century fox, shares up by 5. 8 . Time warner down by almost 11. 5 . The other big story, cnbc has confirmed reports, sprinting dropping its 32 billion bid to buy tmobile in the u. S. As the challenge to get Regulatory Approval was too steep. Last week, the s. E. C. Proposed rules to keep the companies from bidding together. Sprint, which is controlled by japans softbank was replaced with telecom entrepreneur marcel who has no Wireless Network experience. Sprint, down by a whooping 15 . Tmobile u. S. Down by 7. 3 and Deutsche Telekom shares, a parent company, down by 3 . Reports say tmobile will reject a takeover bid from iliad today. Allen moore joins me on set. Just in calm of hours, deals worth 100 billion have fallen through in the united states. Does that worry you in terms of risk sentiment . No, it doesnt. This year weve seen a large increase in m a. 89d obviously, these two are for different reasons. The rules in the u. S. Are a lot different than elsewhere regarding m a. Do you think that valuations in the stock markets are simply too high because many of these deals are simply falling through. A lot of markets have gone up a long way in the shortterm. And over the longterm, markets move in line with earnings. Earnings Going Forward are likely to be more than 5 or 7 per annum. Its more than likely youll see markets growing over the medium to longer term. Valuations swr risen considerably. Just want to break in for a couple of numbers. First half profit of 1. 74 billion euros, regarding 1. 47 billion in the year earlier and said net liquidity, 2. 54 billion at the end of june. Wall greens is expected to announce today it will buy the rest of a european drugstore chain aligned to about 6. 4 billion. Report say walgreens will not move its headquarters to the uk or switzerland where Corporate Tax rates are lower. Lets have a look at how walgreen is trading. Currently down 2. 2 . It looks like this is going to be one of those stories thats more interesting for what isnt happening rather than what is. Walgreen is expected to go for one of these conversion deals. Whether this is partly due to our americans saying they would boycott the store if they did one of these deals or not, who knows. So its obviously in a tax inversion deal. And theres increased speculation over whether it will, in fact, ton be possible to have these kinds of deals in the coming months. You have president obama backing a bill, which means it could retroactively clear back tax on these deals. If you look at, for example, shire or astrazeneca, those companies have been doing in early market trading. You will say theres definitely a lot. Increasing cynicism. This will still be an option for american companies. Is this the case of walgreens bound to political pressure or rationale for the deal. Was it never tax inversion in the first place . This deal was always something that was very likely to happen. They always had the option to acquire this further 55 . But, of course, it had always been something that they had a benefit to. This is not just about tax inversion, but it did seem to be potentially one of the elements there. Catherine, thank you so much for that. Lets have a look at these european markets in the trading session. The stoxx europe 600 continues to fall down. Down by 0. 6 in a close in yesterday anticipation session. We saw a continued selloff in the u. S. Including asia. Japanese markets down 1. 8 . Once again, investors worried about the tensions between ukraine and russia after the polish Foreign Ministers conference in yesterdays trading session. The ftse 100 off by 0. 5 . The xetra dax lower by 0. 75 . Were now more than 900 points away from the record high we saw last month. The cac 40 coming under a little pressure this morning after what we saw in yesterdays session. Yesterday we saw an underperformance of the periphery, the ftse and the imex underperforming and that seems to be continuing in todays session. Lets have a look at the bond markets. No surprise. We are seeing safe haven buying, bunds going into treasury. The treasury 2. 47 , largely ignoring the better than expected nonmanufacturing data that we got into yesterdays trading session and, once again, take a look at the portuguese tenyear yield of 3. 7 . In the forex markets, the dollar is holding on to the 11 month highs, especially after that very Strong ServicesManufacturing Services data that we saw yesterday. Euro dollar at 1. 3373, close to ninemonth lows. Its pretty much unchange on the day, but i guess investors dont want to take too much risk. We have that ecb meeting later on this week. The japanese yen against the dollar, 102. 51. You would think theres more safe haven flows into the japanese yen with all that risk aversion going on. And the cable rate is at 1. 686. Were going to get Industrial Production in about half an hours time. So with developed markets continuing to face headwinds, its now the time to move cash back to emerging equities. Squawk box talked to David Anderson who said investors should consider raising their exposure. If you look at the big drivers if your longterm returns of an equity investor, its certainly true that earnings per share growth is likely to continue to be stronger in emerging markets, maybe 13 to 14 a year than in developed markets where youre looking at maybe 10 to 11. And i think more critically, as you say, stopping valuations are more attractive today, not cheap by historical standards, but relative to developed worlds. So i dont want to make the call, but i do think for investors who dont have any emerging exposure, now is a good time to get some. And for investors that are below that strategic allocation now is probably a good time to rebalance. All right. And still coming up after this short break, Standard Chartered is set to post second job and first half profits. Penalties could steal the headlines. We break the numbers, next. In india we have 400 Million People who dont have electricity and i just figured that its time i do something about it. What were doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. I think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when its needed by the consumer. A smarter Energy System is made with the ibm cloud. The ibm cloud is the cloud for business. Welcome back to the show. We are waiting for numbers from Standard Chartered. The company derives nearly threequarters of its profits from asia. Standard chartered has come out with a profit warning not too long ago, late june. Helia, what are we expecting beyond what we already know . Well, look, we know that the earnings with going to be dire. Around a. 3 billion level. This is a focal point for investors. And even the chairman is going to survive this. Last year was the first time that came off the board. Its been a very testing time. Finance director, weve got investments putting pressure on. So these numbers are quite key. Weve got the profit before tax numbers. It is 3. 26 billion, down 20 . Operating income down 5 to 9. 6 billion. Customer advances increase 3 compared to the second half of 2013 to 305 billion. Dividend per share is about 28 cents per share. Normalized return on equities per share equity of 10. 4 . The pretax profits, 3. 25 billion. Eps of 94 cents per share. Common equity ratios, 10. 7 . Helia, is this more or less in line with what were expecting . It is more in line with what we expected. The other things investors will be looking out for is information about whats going on with the u. S. Regulator. Remember that Standard Chartered was hit significantly by the u. S. Regulator. Hes preventing more transactions that the regulator is not happy with. Whats the detail on that and could it lead to a fine. Its a term that is likely to be extended. So this is the line that we have in getting from the company this morning as saying the performance has continued to be affected by difficult margin conditions and theyre saying that taking action to address the near term fulfillment challenges. It seems, though, that investors patience is running very, very thin when it comes to the position of the ceo. We could argue that todays numbers, these are make or break numbers from the ceo. Do you think we could stay after this . I think it will be difficult. Were seeing some of those big investors have called for peter sands to step down. Theres a regime of know your customer, detail, and to prove to regulators, especially in the u. S. , that they are doing everything they can to abide by the law. Its becoming tougher and tougher. What do you make of this . A lot of this depends on the statement and whether the earnings and profit warning. Speaking of the born again, i will say when the boards say that an individual has their full support, they tend not to last very long. Im trying to remember who it was. And remember, we have been involved for a very long time. Thats part of a decade. So its the end of a very long era, but its the end of what has been seen as very profitable. Banking is this levered play on the economy in which it operates and the economies have seen a big drop in the kind of growth rates that they were enjoying maybe tief years ago, three years ago. Weve got more flashes that i want to bring to you. Standard chartered says it is in discussions with the new york regulator and monitor with respect to those issues that were flagged. They say the resolution of these issues is likely to involve an enforcement action of the regulator and that will likely include an extension of the term of the monitor. So basically, theyve paid a massive fine two years ago. Unfairly maybe, maybe not. Some of the transactions still werent monitored effect ily enough. Well, no. I think regulators, whenever they take action, there is a prolonged period in which they have a much closer relationship with a company. A lot of times they are in the company, looking at things in detail and in this case be gentleman minute lowskys people have been involved with Standard Chartered. What they have said is theyre still seeing things that dont come up to scratch. This is the things theyre talking about. A monetary penalty, for example, what does it have in terms of provisions . These things, the issue, you dont provision for regulatory type because how can you . Thats suggesting that youre going to be doing wrongdoing beforehand. In this environment, you should, helia. One of the criticisms is while youre fining a bmp or a barclays this amount of money and putting a fine for goldman sac sachs. So i dont think its quite as easy as, say, well provision for it because thats like saying have i had gold through a regulator recently. Committing significant resources to raising the bar on conduct. And earlier on this week, hsbc saying this environment of litigation of confined stops any risk taking on part of our employees. That is pretty bad for the bank earnings, its pretty bad for the markets overall. Youve received the same thing in barclays. The actual results in terms of earnings and share prices are quite disappointing. I dont think youre talking about 100 or so million dollars. And in the context of the overall market cap, it could be small. And the profits. But its the fact that its continuation of this. All right, helia, thank you so much for this. Appreciate it. In other earnings news, ing shares are slightly higher after reported pretax profits ahead of expectations. Ing up 1. 5 . And Telecom Italia down 0. 73 due to weaker demand from brazil and a tougher economy. Swiss re down 2. 4 . They were down heavily in yesterdays trading session. And telefonica, of course. Swes re is lower than expected by analysts. Citing weak prices in the insurance industry. And finally, lets finish things off with hannover re. Down 5. 2 . Net profit rose 10 . That was below analyst forecasts due to falling premiums. Moving on in the u. S. , disneys Third Quarter profit rose 22 beating forecasts. The studio profits more than doubled thanks to Strong Box Office for captain america 2, maleficent. Disney says higher theme park attendance helped. Higher change for espnoff set the forecast despite strong ratings for the world cup. We had Great Results. Profitability, the interactive group. Tremendous Consumer Product and, of course, the studio had some Great Results for movies like captain america, maleficent and the lingering positive effects of frozen which is the highest grossing animated film of all times. And disney shares fell in after hours trading in frankfurt currently up by 0. 9 . What do you make of the earnings season in the u. S. So far . Its actually been pretty good. But is it the Revenue Growth that were seeing that so many analysts and investors are banking on in terms of valuation of the markets . I mean, as a result, u. S. Companies have been given revenue and earnings. Its a complete contrast to europe where revenues in particular and the revenue beat is about 35 to 40 . So you can see that actually the earnings have been disappointing in europe. Its been about 55 . Much lower than the u. S. And within those figures, its really come to cost production, it hasnt come to Revenue Growth. What does it tell you about Market PerformanceGoing Forward . If this simply isnt the justification of what we have been seeing going into europe . Do you think that from now on, and based on what weve seen in the last couple of days, were just going to be trading sideways or maybe lower . Yeah, i agree. Particularly in europe. There has been a lot of euphoria by Fund Managers and people have on what theyre buying. If you look at the forecast over the last six months, the average europe yarn earnings has been down graded by 7. 8 . The average u. S. Companies have been downgraded by 1 . So the multiples keep on going up in europe. At least in the u. S. , the companies are growing into the multiples. Allen, were going to continue our chat with you on where to invest. Where you see opportunities. I know you like china a shares. Allen miller, parter at scm private, our guest for the first half. Coming up on worldwide exchange, manufacturing and recovery. Germanys Industrial Production following unexpectedly for july. How will the uk compare . We bring you the numbers next, dont go away. Welcome to worldwide exchange. Im carolin roth. These are your headlines from around the world. Mega mergers abandon, sprint runs away from tmobile in the u. S. Dropping its offer for the firm. And Rupert Murdoch pulls his 80 billion offer for time warner sending the shares down in frankfurt. Plus, Standard Chartered in the firing line. The lender says it is in talks with new yorks regulator and could face a monetary penalty. And is italy headed back into recession . This as german Industrial Orders log their sharpest drop in three years. Uk manufacturing and Industrial Production rose as a whole on. 3 in the month of june. We were looking or expecting a number around 0. 6 compared with a fall of 0. 6 in the month of may. So basically, britains economy is driven by the Massive Services sector, not so much by the west. Michael snade is fx strategist at bnp parva and joins me down the line. Lets have a look at the reaction in the cable rate. 1. 6837. This ticked lower from what it was before. But we did see some weakness in sterling today. Once again, very patchy data points. Yesterday, we have a Services Sector pmi. That was very strong and that accounts for roughly three quarters of the economy. So what kind of data do you want to be looking at . Do you want to disregard the data that we got out this morning . Well, it has been quite choppy. Earlier in the year, we had five consecutive monthly gains in the ip data. This is a very strong trend. So what weve been seeing from data in may and june is likely to reflect in pullbacks off of these strong data points. We are seeing that the cmi manufacturing remains quite strong and it Growth Outlook remains strong for the second half of the year. What does this mean for the boe, though . Were not expecting a change, but what were really looking at is the Inflation Report and were looking at the minutes for any clues as to when well see that first rate hike. With all this patchy data coming through. Do you think that the boe will actually be pleased because it can hold off on that rate hike for now . Its likely to implicate that its continue to go watch the data ahead of the november meeting, which is when the markets are most anticipating the first rate hike from the bank of england. In terms of sterling, we have seen investors do hold long sterling positions. It does mean that sterling is going to be very sensitive to the uk data over the next few months. Sterling has been down and is now