And im wilfred frost. Very good morning from me too. Its new music friday. Its Justin Beeber to start your morning off right. A lot of market earnings to get to this morning. First, if you didnt stay up late last night for the Democratic Convention in philadelphia. Here is what you missed. Hillary clinton the first woman to lead a Major Political partys president ial ticket formally accepting the democratic nomination, her daughter chelsea took to the stage giving her mother a heart felt introduction. I hope that my children will some day be as proud of me as i am of my mom. I am so grateful to be her daughter. Im so grateful that she is charlotte and aidans grandmother. She makes me proud every single day. And mom, grandma would be so proud of you tonight. An emotional bill clinton father looking on. During Hillary Clintons acceptance speech she made a point to contrast her campaign with republican nominee, donald trump. Thats how were going to make sure this economy works for everyone, not just those at the top. Now, you didnt hear any of this, did you, from donald trump in his convention. He spoke for 70odd minutes and i do mean odd, and he offered zero solutions. We already know he dint believe these things. No wonder he doesnt like talking about his plans. You might have noticed, i love talking about mine. Much later when tracey potsds joins us from the reaction on the dnc floor. Lest e lets have a look at the stocks. S p and the dow are just below flat for the week. Tech the big winner of earnings season so far well go through the big corporate earners overnight of google, called alphabet now and amazon in a minute. Lets have a look at the 10year treasury note. We did see some buying of this. Over the week. We saw the yield dip very briefly. Now back above that level, 1. 527. Breaking overnight, the bank of japan easing Monetary Policy by doubling purchases of ets. It did remain steady. Overall investors appeared to be disappointed as many were looking for more stimulus. A post decision News Conference told reporters that todays policy decision was meant to address overseas uncertainties. He argues quantitative arguing has not reached the limit. As for the japanese yen, disappoint was most reflected there when the yen serged. Thats a weaker dollar and a stronger japanese yen reflecting the that is correct they did not see more stimulus. Its 1. 5 move which is a huge move on a currency though it was even worse before governor started talking. The fact he said were hope to do more, you saw the yen give up a little bit of the gains. The nikkei crazy chart overnight because the immediate disappoint was reflected when that move went negative and closed positive on the day about half a percent as the governor spoke. Its gone up and done. No overall point we got less easing than expected. The question is do investors look at this like they looked at the bank of england which held its powder and say yes, but well just get more action in a few month sgls exactly the interesting thing is if we look at the rest of asia. Big surge in the yen wasnt negative for if nikkei for once, but was still negative for the rest of asia. As for the early action in europe. We get the bank stress test. France is flat. The ftse 100 is in the red, but we see some strong gains, especially for the banks in italy and spain. Italy talk of a bailout of the much talked about bank of monte dei paschi which well touch on later and prove. Broader markets. Lets have a look. Oil prices have been slammed down another 1. 3 . Wti closing in on that 40 lechl. Before today we were already down. 15 month to date. Adding 1. 3 of declines. Oil prices really on a slide. Once again, youd be surprised that equities have held up so well in the face of the sharp declines this month. Dollar lets have a look at that quickly. The main story is the yen. Weve already touched on other currencies not really moving much today. The dollar index has hit a two week low. Gold prices very quick look at that. Losing a bit of the recent rally over the last week or so and were off two tents of one percent today. Amazon Worlds Largest retailer reporting fifth straight profit. Beating estimates on the top and bottom lines sending shares higher. The company seeing growth in Cloud Business. Here is amazon cfo talking about prime day on the conference call. Record day for amazon devices. I was was a great day for Small Businesses and sellers. We saw greet year improvement in their sales and more important live great day for customers. Globally they saved over double what they had safety in prime day 2015. This is a new day for amazon. Its a Profitable Company now. This is the fifth straight quarterly profit. And one metric to watch is operating profit margins. 4. 2 . Thats more than double the percent we saw earlier. Its controlling costs and leaning on Web Services Cloud business for profits. Which is fed through the similar kind of parts of microsoft and intel as well. Microsoft and amazon are benefitting overall from that. All about the cloud and all about mobile ads. Now we go to googles parent alphabet. Saw profits surge. Drawing clicks and helping the company post a 20 increase in revenues. Bottom line results also easily beating estimates. Cfo on the conference call. Once again, the primary driver was the increased use of mobile search by consumers, benefitting from our ongoing efforts to enhance the mobile search experience. We also benefitted from solid growth and desk top tablet search as well as continued strength in youtube. We did see a bigger reaction on the alphabet shares after hours than amazon perhaps alphabet stock was down heading into this report so a nearly 4 surge there. The story is tech is shining here when it comes to earnings and thats been the story all month. If you look at the nasdaq performance. Todays the last trading day of the month. We saw 3 gains on the dow for the month. The nasdaq saw double that. The week the date, its also up and the head of alphabet saying their well positioned to take advantage of the mobile shift. Facebook benefitted earlier in the week. The only other thing i would say is the nasdaq is the only three thats not at record high. It duds have the most catchup. The dow and s p are near records. Well see if that performance can continue based on the strength of earnings. Lets have a look at the agenda. Thats 8 30. The economy is forecast to growing in the quarter versus 1 preponderate 1 in the First Quarter. Also 8 30 we get the q2 cost index. Look for the pmi. Dallas fed president speaking today as well. As for earnings, chevron, exxon mobile all report before the opening bell. Among todays corporate headlines, Facebook Says it may owe 35 billion dollars in taxes. How it transferred assets overseas. Documents related to a Money Transfer to ireland. The companys accountants had undervalued some of those assets by billions of dollars. Didnt seem to disrupt the rally of facebook coming off of earnings. In other tech news, microsoft unveiling plans to cut 3,000 jobs. It looks to rework its Sales Operations and as it dismantles the mobile phone hardware business. The remaining job cuts are expected to happen by the middle of next year. Some stocks to watch today. Win resorts. Loss vegas revenue was down itself, sanofi fell, but still match expectations. Sony First Quarter operating profit dropping 74 by the strong yen and lagging smartphone sells. Results were also impacted by the earthquake in southern japan which halted production. Shares are up 3 today. Buy due fell. Baidu. Practices led to stricter regulations hurting business. Its off 1 . Few other stocks to watch this morning. Samsung rose 2 beating forecast. The results were the companys best in two years. Consumers snapped up galaxy smartphones. C cbs. On a conference call, the Media Company will benefit from this fall from the u. S. President ial election. Listen. We are still in the early stages of what we are very confident will be a record president ial election year. Second quarter political sales came with in higher than expected. Thanks in part to primary spending in california and right now were seeing big activity in many of our major market o0. As always spending will peak in the fourth quarter. Ab inbev fell sharply. Toward its more than 100 billion merger. Still working to close that deal by the end of the year. Jeff immelt put his money where his mouth it. 1. 6 million in shares of his company this week. Bought 2 million back in may. Still to come, european banks in focus today. Well bring you the names to watch. Plus hear from the ceos of giants ubs and barclays. Monday dont miss the exclusive interview. You can see that conversation live at 1 00 p. M. Eastern time on monday morning. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corroon. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is bui for. Welcome back to World Wide Exchange. The Swiss Banking giant did cut expenses. Continued to shy away from transactions on the heals of events like last months brexit vote. We are prepared for any kind of scenario. We have very present material presence in europe in terms of location we could shift some of our businesses. We are flektsable and ready to respond once the rules are determined. The passport issue is the big deal for brexit folks. Up more than 3 . Meantime barclays core pretax profit rose nearly 20 in the Second Quarter. The uk based bank also expressing confidence in the ability to weather a brexit. The markets are challenging. The Capital Markets are going through a fairly significant restructuring and banks are going through a significant restructuring. Using more capital being more liquid, which is all making the Financial System much safer. Does put a challenge in terms of profitability. At 11 return on tangible equity, we think barclays is in a very good place right now. Bar clay shares up nicely. Up 6 pkts. European union stress test results are out at 4 00 p. M. Eastern today. No pass or fail. This time more kwaultive. Particularly how close it is to the 2014 pass fail threshold. Italian banks will be closely watched and heres why. They still carry large amounts of bad loans. Only half of which are provisioned for focus will be on monte dei paschi the oldest bank in the world. Shares are up today. On the news the bailout has been arranged. Private bailout ahead of the results involving ubs. The unicredit the most important lender there. Neither has significant links to the u. S. Why does it matter to the u. S. , eu law prevents a state funded bailout which is adding to the eu isntment in italy and putting pressure on prime minster renzi. Thus italy is the country investors are focused on as the first potential domino following brexit. The other main focus names wise is Deutsche Bank under lines once again how tough the situation remains. Heres ceo summing things up. Global policymakers continue to press the banking reform with calls for even stricter capitalizati capitalization. Monetary with negative Interest Rates policy relying ever more on hope for rather than expectation of success. The outlook is therefore uncertain. Thats particularly true in the euro zone where the intersection of political actions and market confidence will be critical in the coming months and quarters for europe in particularly and potentially economic growth. So a couple of names we pointed out earlier, barclays, will be out at 4 00 p. M. Eastern time. Putting the bounces in stock prices tootd. All of need names down sharply today. Well be watching those results later in the session. Switching geer ining gears this the bank of japan disappointing overnight by not adding more stimulus. It did say it will buy more etfs. Here is derek, good morning. Good to see you. Good morning sara. How much disappoint was there on the trading desk after we got the announcement from bank of japan. You know, i think the Bodily Injury was in a lose, lose situation today really. The expectations in the market have become so elevated with all this chatter about helicopter money since ben bernanke went to tokyo a few weeks ago. There was also a risk of disappointment. We thought they might not do anything. Theyve done something small. I think it really still shows the fundamental problem the Bodily Injury has, which is ultimately has regioned or is very close to reaching the threshold in terms of the limits of Monetary Policy and that means they have to be cautious in terms of timing. Anything aggressive that it does from here Going Forward. So derek, are they in a los lose situation across all time frames, not just today. Certainly Going Forward there is scope for some increase in quantitative easing through a an increase in purchases. Yes, to answer your question, whatever they do from here, it certainly not going to have anything like the impact that we had after the first phase of quantitative easing or the second phase. So really its about convincing the markets that over time, they will become successful. Of course thats not just down to the boj, thats down to the government as well. The baton has now been passed to the government in terms of announcing the Stimulus Program. Of course this matters not just to japanese investors and currency traders, but a lot of folks all over the world in markets look at the japanese yen as an indicator of global risk appetite. Sit strengthening this morning by more than 1 percent which is usually negative tifr. How much stronger does it get. I think ultimately whats happening at the moment is that this loss of confidence along with the risk eversion yourself mentioned. Now of course crude Oil Prices Falling more. Earlier this month, the five year inflation swap rate went into negative territory for the First Time Since abenomics started in 2012. That mean Interest Rates on are the rise again. Japan has again this very large current surplus, the exporting of capital into foreign markets becomes more difficult. We think the dollar yen is going to head lower and before long will be back below 100. That could spook a lot of investors. We look ahead to todays session. We get the first read on Second Quarter gdp with the increasing chatter the fed may make a move to raise Interest Rates this year. Is the dollar a buy . , you know, i think on the gdp itself t big boost to growth is going to be personal consumption of othver had quarter on quart. My take on that is that is not sustainab sustainable. The most divisive president ial lerks in u. S. Political history, the outlook is still very mixed. Ooimt not convinced certainly of a september move. I think december is still possible, but you know, is the dollar a creaming buy in these circumstances, i wouldnt say so. Derek, thank you for joining us this morning on that central bank decision. Bank of tokyo mitsubishi out of london. Still to come, Hillary Clinton accepts the Democratic Party nomination. Well bring you the highlights from her speech. Stay tuned. Youre watching first in business, worldwide. We head to san jose with the score at 11 in the 87th minute. Scores an easy winner for the fw gunners. First foreign team to beat the allstars since 2013. Im heading to los angeles to hang out with some players. Wow, youre dream. When we come back, all of the top stories. Plus all the headlines from last nights historic Democratic Convention. Also on monday, dont miss wilfreds exclusive interview with j. P. Morgan chairman. Maybe thats your dream. That actually is. That conversation is coming live to cnbc exclusively at 1 00 p. M. Eastern on monday. Well be right back. Want a glow that shows and age that doesnt . New luminous light hydrating lotion pearloptics science fades the look of dark spots evens tone and hydrates skin for instant illumination. Olay luminous ageless. B. Good morning. A central bank surprise. Eases Monetary Policy, but not as much as expected. Earning central. Amazon and alphabet beat the street. Plus the race for the white house. Hillary clinton accepts the Democratic Partys nomination for president. Its friday, july 29, 2016 and youre watching World Wide Exchange on cnbc. Good morning and welcome back to World Wide Exchange on cnbc. Happy friday. Im sara eisen. And im wilfred frost. Good morning to you and happy friday from me as well. Its new music friday for us. A little pitbull to kick off your almost weekend. Lets get to the top market story of the morning. Breaking overnight, the bank of japan easing Monetary Policy. Doubling purchases of etf. Overall, investors appear to be disappointed. Boj governor told reporters todays policy decision was meant to address overseas uncertainties. He argues quantitative easing has not reached itself limit and has room to move rates if needed. The markets to yen moving significantly higher. Highlighting the extent of disappointment for investors. A 1. 6 percent move higher. It has moved quite a lot. It went to 1. 5 and back. And the nikkei has been similarly volatile throughout trade today. In the end, the nikkei ending up down sharply. Managing to shake off the typical ne