Doubles n Second Quarter sending shares to the top of the European Market. Benefiting from a fall in bad loan provisions. A sweet session for nestle, too. They launch a Buyback Program as an emerging market pick up boosts sales. And investors hoping for a windful from rio tinto. Posting a first half jump in profits thanks to iron oreships. We speak first to the ceo in just a couple minutes time. Display youre watching worldwide exchange, bringing you Business News from around the globe. Good morning, everyone. Youre watching worldwide exchange. Roughly one hour into the trading session, the stoxx europe 600 extending its weeklong slide. Were down by 0. 2 as were digesting the retaliatory efforts coming from russia. The ftse mib has been the big underperformer in yesterdays trading session. Its bouncing back just modestly, up 0. 5 following that shock return to recession yesterday for the italian economy. The cac 40 down 0. 2 and the xetra dax still 900 points away from that high, down by 0. 25 . Plenty of earnings out today. This is what we want to focus on next. Commerzbank, shares up by 2. 6 . The big story here, shares performing very well in todays trading session. This after germanys second largest lender announces a net profit more than double from last year. Lets continue our look at the earnings story with nestle up by 3 on the smi. Nestle announcing a Share Buyback worth 8 billion swiss francs or 9 billion. And maintains its outlook. The owner of kitkat and niscafee outperforming by 3 . Old mutual off by 1. 7 . It beat by first half profit by said external conditions look set to be challenging for the rest of the year. And last but not least, rio tinto up by 1. 8 . Up 21 thanks to cuts in costs and Capital Spending. Well be joined by rio tintos Ceo Sam Walsh first on cnbc. Thats coming up in around 15 minutes time. Lets continue with a look at the bond markets because we saw the tenyear bund yield going negative for the First Time Since may 2013. Currently is at 0. 013 . Also want to draw your attention to the tenyear yield. Another record low and this is obviously in response to all the dpeeo political and disinflationary pressures were seeing out there with 1. 086 . The tenyear treasury yield still below that 2. 35 level, as well. Very quickly want to show you whats going on in the currency markets. The dollar showing a bit of a rebound against the japanese yen. 102. 29. We did see that big fall yesterday, but many chalk it up to sink or trade. The aussie dollar slumping in todays trading session. A twomonth low against the greenback. Down by 0. 2 . Unemployment in australia hitting a 12year high. Cable is down by 0. 1 and not too much activity in the euro dollar. 1. 3367 ahead of that ecb meeting. The next day of the crisis in ukraine could be more serious. This as nato cop firms about 20,000 troops are ready on ukraines eastern border. Take a listen. We have reasons to believe, according to information ive received in the last few hours, that the threat of direct russian intervention is certainly greater than it was a few days ago. Translator unfortunately, russia has restored its fighting capability on the ukrainian border. In a tit for tat move, russia has banned agricultural imports from sanctions that ban moscow. Clul food and vegetables from europe, soybeans and chicken from the u. S. The European Union exported a total of 13 billion in food to russia in 2013. Germany has the greatest exposure followed by poland and then the netherlands. Hadley gamble joins us now. What are they saying about the impact of sanctions and outflows . In terms of the outflows, weve seen about 74 billion leaving russia. Thats the first half of the year and thats more than the whole of 2013. That is a big concern. I asked the ceo directly with what were seeing on the ukrainian border. He said yes, theres no point in denying it. But speaking of those bans in terms of imports and fine whines and food from europe, i asked the ceo in terms of the imports, is this still business as usual in moscow . Talked to the owner of the medium sized restaurant chain who says my menu was my my course of productes or the share of europe its very significant, 60 of import. Now, my menu list was 2 hurn items on the list. Now im just cutting it to 80 items on the menu list and were going to reach out the pricing model. So thats a very, very small example that businesses thinking how to adjust to that. And thats happening with a larger organization, as well. The ceo of rencap telling me this is really an opportunity. These sanctions represent an opportunity for the russian businesses to get on board not only looking east, but the in terms of scaling back and theyre dependent on the west. Whats really interesting is that the two big competitors, they have been sanctions. So what are the opportunities here in terms of grabbing market share for the Nations Capital . At least in 2013, 50 of their revenues came from investments in africa. Really, this has been a for them. Hadley, thank you so much for that. Breaking news, itihad, the Italian Government officials are meeting on thursday regarding the al italian agreement to be signed on friday. A major deal to help out a troubled alitalia. This week saw two senior band officials quit for the private sector. The Financial Stability center up and left for bp. Lets get out to uks Business Editor helia eperhelimi. Helia. Good morning, carolin. Youre right in naming those two people, especially the departure of dale. Just a few months ago, he was transferred out into this new job. Many were speculating that he was up for deputy of the bank of england. He didnt get it. He felt it was a demotion possibly . That was talked down but now hes gone and theres lots of changes at the bank of england. There might be changes about the management, but what hasnt changed is the voting record. So discuss that with me a bit further is martin beck. Martin, lots of criticizing the Monetary Policy committee for voting in line with the governor. Were not used to the mpc having 90. Whats the issues there . I think weve had over three years now where we havent seen a rise in Interest Rates. I think the economic background has justified that. Weve had a period of stagnation and the recovery is getting going now, but its still fragile. You say the recovery is fragile, but were growing at 3. 1 . This might be revised up in september. It doesnt sound too fragile. Unemployment is a record lows. Is that the key metric, productivity and Wage Inflation that is concerning the Bank Inflation . Changes on Interest Rate. Wage growth, which is actually nonexistent. So another unanimous vote today, youre expecting. I think one or two votes. Something like martin who has been hawkish in the reerchbt past. Given, as you say, the recovery is picking up steam. And lets talk about that in the context of communication in the market. It was a year ago that Forward Guidance was introduced by mark carney. That seemed to have a whole range of failures, including most specifically that the market think it seemed to know when rates were going to go up and the bank of england said that was then. They wanted to guide away from that. They wanted rates to tighten. Was going on there . I think in a way Forward Guidance has been the victim of its own success. When we saw mark carney come into its position as governor, you saw activity pick up. You could argue the Forward Guidance and carney is more positive. So i think Forward Guidance is coming in for a big deal in some respects. Its boosting confidence and recovery. And so the Interest Rate rises finally hit the uk. But when are we going to have it . Were going to have the Scottish Referendum before the ends of the year. We think before the end of the year or into next year. If that is the issue, Interest Rates stay low for 2015. And what about politics, the bank of england gets to help. The run away Housing Market has been hugely contentious in the uk. What are the political pressures that have been applied . You could argue that the housing helped a lot in terms of the economic recovery. I mean, the government will be unhappy if the bank takes too much action to cull that market. Mark carney and the others will judge what to do on the merit of the economys needs. The markets will cool down a bit, even on the back of some point of the governors. Thank you very much, martin. We saw the Housing Market cuhl down a tad in june. But as halifax price data showed just yesterday, that has picked up again and Mortgage Applications again picking up. Political pressure being a huge determinant in the bank of england even though theyre independent. Well wait to see what they say in the Inflation Report next week, but probably not much change from todays decision. Helia, a very busy month for you. Not the worst to be standing outside the bank of england. I saw when i came in, the weather is absolutely beautiful today. Check out helias article on cnbc. Com on why the boe is absolutely key for the bank of england. So one central bank to the next. Lets listen to what theyve been having us. Our strategy is to ensure that were a customer funded bank, customer loans funded by customer deposits in our capital. We always tried to resist the temptation of Central Bank Money because, you know, that can be unsustainable if you base a strategy around that. So i dont think that we will be significant participants in that you have to be very careful to make sure you can wean yourself off. But, obviously, if theres an opportunity to do a small level of a carry trade, we will look at that. The signal that was attached doesnt really apply to this round. Its different. And its very, very cheap funding. Were certainly looking at it because our strategy is to grow, funding is to grow commercial ending. So this is in the right space strategically. But on the other hand, you know, were highly retail funded as we mentioned at the beginning of your program. So we dont need fund. Were debating whether we should take this or not. Attractive because of the price, but maybe we dont really need it. We havent decided yet whether were going to get the full number or not. Probably we will and we will decide further down the road whether it will go to the september option or the december auction. In a way, i think its a very Good Opportunity that we can take advantage of in order to keep on increasing our lending volumes. Lets get out to annette who is covering that ecb decision for us in frankfurt. Annette, it seems as though there isnt as much of a stigma attached as there was with the last two rounds. Do you think the take up, despite that, will still be pretty if good . Well, what we are hearing at least from german banks, they are not too interested in that. Probably the tell tale is something for the banks and the periphery. That is where the effects should also bear its fruit. Shly, the ecb came up with that idea to close the gap between what Big Companies pay on capital markets, the Interest Rate and what small and medium sized enterprise has to pay when they take out a loan from the bank. They have to give a little bit of that lower Interest Rate that at least is the idea behind. But looking at the realities, also that those banks we are talking about are right now quite because they have to gather a lot of information and theyve stress test the balance sheet. They have to hold more collateral between those risky loans. Theres a bit of a conundrum here as to how those banks should deal with those loans. Essentially during the press conference, i would say there will be some question on the latest on the asset quality reviews because the ecb is sitting on data from those banks and they will look into the data in early september. It might be perhaps interesting to see. We spoke earlier on were saying who is the Vice President of ecb. Thank you so much for that. Stay tuned for our special live coverage of the ecbs rate announcement coming up at 13 45 cet followed by the press conference with mario draghi. Weve got flashes coming in from Deutsche Telekom. Deutsche telekom saying were very satisfied and tmobile developing very, very well. This is interesting in light of the recent new flow surrounding that deal given that the sprint deal has fallen through. But Deutsche Telekoms ceo is saying we dont have an offer at this point that will increase or improve the companys or shareholders positions. So basically saying the offer we got from iliad is too low. Sprint was offering 40 a share so i guess they have have to up their offer a little bit. Growth is sustainable and valuable. Competition became a great deal. More intense in germany, they say theyre cutting costs significantly in germany and europe. Theres the latest in terms of commentary come from Deutsche Telek telekom. Still coming up on todays show, an app that lets drivers pay for Parking Spaces if their dashboard. The nikkei snaps a business on news. A Government Fund increases its domestic stocks more. Plus as nfl preseason kicks off, were joined by a super bowl linebacker turned wealth manager. And as earnings season turns to retail, are american firms struggling to shop around for new executive talent. Well cover this and much more on todays show. Well be back in two. Welcome back to the show. Cnbc has confirmed reports that bank of america will pay up to 17 billion to settle a Justice Department probe into the sale of toxic mortgages before the financial crisis. This would be the largest settlement to rise from the meltdown following similar deals by citigroup and jpmorgan. Bank of America Merrill lynch could pay 9 billion in cash and the rest in systems to struggling homeowners. The deal is not final yet. Reports say it came about after a call last week between bank of americas Ceo Brian Moynihan and eric holder. Atlanta fed president dennis lock heart tells cnbc despite recent economic growth, the fed shouldnt raise rates until at least the second half of next year. He says the second half gdp was partly to rebound from the First Quarter and may not be sustainable. Lockhart says hes slower on the trigger than other fed members and dallas fed president Richard Fisher needs to act sooner. Lockhart says hes focused on growth and ensures the recovery is maintained. President obama says his administration seems to move fast to help escape corporate taxes. The president s comments came as drugstore chain wall greens decided not to pursue an inversion. President obama says the practice is unfair to americans. We dont Want Companies who up until now have been playing by the rules suddenly looking over their shoulder and saying, what some of our competitors are gaming the system and we need to do it, too. That kind of herd mentality, i think, is something went to avoid. The president says congress would need to pass legislation to stop the tax inversions entirely, but he plans to look for ways to discourage them. Hawaii is about to get its first direct hit by a hurricane in 22 years. Hurricane iselle is set to hit the big island bringing heavy rains quarterback winds gusting up 2080 Miles Per Hour and flooding in some areas. Right behind iselle is Tropical Storm julio which could impact the storm this weekend. Mining ceo Gary Goldberg says hes open to resuming talks about a potential memorier from garrett gold. A possible 35 billion deal between the north american gold miners fell apart in april amid reports they couldnt agree on how to handle the assets in australia. Do you feel like you spent too much time on your tablet, smartphone or social media . Uk adults spend an average of eight hours and 41 minutes a day on media devices compared with the average nights sleep of eight hours and 21 minutes. Even that average is pretty high, isnt it . Eight hours and 21 minutes. Most of us dont get that. Theres one person that isnt happy about the time people are spending on their technical devices. The pope. The pope blasted todays youth for wasting too many hours on things. He said our time should be spent on good and fruitful actions. Chatting on the internet is one thing we should be doing less of. We want to know from you. What do you think . Do you spent too much time on your smartphone or in front of a computer or a tv screen . Could you live without these things . Thats a tough question, isnt it . If you want to join the conversation here on worldwide exchange, get in touch with us. Were interested in hearing your views. Worldwide cnbc. Com, via twitter cnbcwex or direct to me, as as carolincnbc. Still to come here or show, russia slapping an embargo on western nations. The details next. Russia retaliates. Moscow imposes substantial bans on imports from the eu and u. S. The longterm effect of sanctions will fade. Russia is never going to disappear completely from radars of investors. Because its such an important part of the Global Financial system. Commerzbank profits double in the Second Quarter. The lender benefiting from a fall in bad