Second quarter loss and the psa chairman says Market Conditions are tough. We are entering now a chaotic period in the Automotive Industry as we all understand starting with the market downturn, the emerging markets are in turmoil we see the electrification is going to change many things. Aston martin shares skid off course after the luxury carmaker slashes key forecasts for the year as it weathers uncertainty in the uk and europe and the euro slips to a sevenweek low against the dollar after german and french flash pmis miss estimates. Good morning lots to go through today i want to start off with the macro data as mentioned, germany and france flash pmis for july disappointed we got the composite number, the flash composite for the eurozone came in at 51. 5, less than the 52. 2 number for june and less than the expectation of 52. 1 i want to break it down, though. The manufacturing pmi came in at 46. 4, that is again a miss versus the expectations of 47. 6. It is also the lowest since december 2012. So pretty grim when it comes to manufacturing. As for services, the number came in at 53. 3, pretty much in line with expectations at 53. 3, but still lower than june. I want to Say Something that is significant here in the context of ecb, because we have that allimportant ecb coming up tomorrow what draghi did say in the last meeting they would have to add, if things didnt get worse what weve seen from the data today, a deterioration of data when it comes to the manufacturing side of things and at a composite level for the eurozone since the month of june the data has shown further signs of weakness. Also one of the reasons the currency is trading weaker lets talk about general equity markets. You can see on the heat map, the picture is 50 50 today is a big earnings day in europe we had a bunch of names come out with report cards for the first half of the year stoxx 600 is trading broadly around the flat line we were briefly in negative territory, now we have edged slightly above it. Again, the macro data has been disappointing. Lets talk about the individual sectors. Individual markets to get a picture of the breakdown ftse 100, focus on the uk index. After the announcement of well, a new Prime Minister in the shape of Boris Johnson, we should get further clarity on cabinet formation from Prime Minister johnson today he will give a speech at 4 00 p. M. That should give more clarity to investors, particularly over the key appointment of the chancellor role. Ftse 100 is trading down 0. 3 . The cac 40 is close to treading on water ftse mib, the relative outperformer today, up 0. 31 . Switching to sectors, we had plenty of earnings, particularly in auto space today, that is actually not shown up on the board. Its slightly in the green up 0. 4 . You can see on the top righthand corner of the board there. And well get into those in more details. Mainly daimler and aston martin is one weve been focusing on. We have real estate, up 1. 25 . Tech also up 0. 8 . This despite the doj ruling that came out last night looking into investigating the u. S. Big Tech Companies. Europe bucking the trend there at the bottom, basic resources and banks in focus one bank in particular is Deutsche Bank. Deutsche has reported a Second Quarter net loss of 3. 1 billion euros as restructuring costs weighed on the result. Its a bigger than expected loss than the german banks own estimate of 2. 8 billion euros when the lender announced its major overall. The plan is expected to cost 7. 4 billion euros and cost 18,000 jobs annette is in frankfurt. A complicated set of results out of deutsche today. They were impacted by some restructuring charges. Can you break it down for us in more detail . Yes they are already hugely impacted by the restructuring costs theyre saying the net loss is bigger than previously expected because theyre front loading part of those costs to the second half of the year. If you dig deeper and look at the revenue situation and the operating income situation in the individual units, thats the interesting part here it does look not really good lets start with the Investment Bank the Investment Bank is down when it comes to revenues quite substantially. Equity and sales were down the most thats the area theyre going to exit this was loss making and we have another item, origination and advisory down 30 . This doesnt bode well for the Second Quarter clearly thats an area the bank should make money with when it comes to the global transaction bank, this is not looking good either. The revenues are down by 6 . Thats one core area they want to grow. Its not just a strategic problem the bank is facing they have a problem also with Revenue Generation thats probably putting people off today when it looks when we look at the share price reaction the whole olympiaplan, which wed earlier this month from Deutsche Bank, its a challenging plan. Transformational sort of challenge for the team there, also given all the headwinds outside the bank we only need to look at what happens currently in germany when it comes to Economic Data that was one area that the cfo spoke about. Listen to what he had to say about the risk coming from a potential recession in germany for the bank were watching carefully. The first half slightly outperformed what the expectations were coming into the year as we look to the second half, our sense is that theyll be continued relatively low growth rates, in what is frankly a stable economy that said, we understand theres a degree of fragility to the outlook for germany reflecting by in large external factors, whether those factors are trade uncertainties, obviously brexit, which is an uncertainty, the impact of a number of items on the Automotive Industry, those are all things that people are watching carefully its fragile but we would call for continued growth in the second half of this year and into 2020. A lot of remarks coming out of the investor world, when they came up with that big plan, the new strategy earlier this month. How on earth are they planning on generating those revenue levels in the future given the problematic situation we are seeing when it comes to Deutsche Bank so i had to ask james as well why or what makes him so confident that they can reach those Revenue Growth targets we had laid out a compound growth rate in revenues for a fouryear period, but for the next three and a half years of 2 tr2 we thought that was relatively conservative to plans in the past we also wanted to isolate for investors what the impact of Balance Sheet management and around Interest Rates there is uncertainty. We feel the underlying growth we see in those businesses where we called for 2 Revenue Growth is preg sen present. When we look at lone growth in our businesses, Asset Management businesses in our businesses Wealth Management grew 4 year over year x items we lay out clearly. The compound growth rates we showed a couple weeks ago are frankly no higher than the underlying growth we currently see in those businesses. Dont you need to invest more money in dws to compete with the other one . Everybody wants to be in the asset space. We are investing in new product launches, extending distribution partnerships and taking a number of actions to grow the business from here. Their Second Quarter was extremely strong year on year Revenue Growth of 6 we do look forward to the future in terms of potential consolidation, adding capabilities and assets under management over time but we believe the businesses are performing and growing as it is were aware theres a strategic environment in which we operate. One big concern investors is that if theyre shutting down equity and sales trading clients would think why should i not look for another bank who can provide everything. Apparently thats not the case james was saying that there is positive feedback from clients saying that they think thats the right way Deutsche Bank is going. So the next month will be important for the bank they clearly need to execute on the strategy and at the latest i think at the end of october when they present their third Quarterly Earnings, there needs to be progress there needs to be progress also when it comes to Revenue Growth, not only progress in cutting costs. With that, back to you indeed, annette, lots of challenges ahead for Deutsche Bank it is worth bearing in mind that the stock initially jumped after the restructuring plans were revealed with the exception of today, the stock is trading down 3 i want to talk about Deutsche Banks Asset Management arm, dws, which also reported adjusted pretax profit of 185 Million Euros. Earlier in the show, the cfo told cnbc that net inflows topped 4 billion euros in the quarter. We isolated our Second Quarter results. We have 4. 2 billion of net inflows for the Second Quarter, and 6. 7 billion for the first half were pleased to see momentum in flows. We see that being positive in our passive area and in our alternatives area. Also across our u. S. And european platform. A very good set of results. Switching to the uk, itv profits fell 13 in the first half but still beat expectations the british broadcaster saw a decline in ad sales but losses were capped by online revenue from reality show love island. It said ad revenue would be impacted by economic and political uncertainty. Big bounce for itv today, up about 6 and asmi shares have hit their highest on record after reporting a 25 rise in Second Quarter revenue beating expectations the dutch firm has also announced plans for a 100 million euro Share Buyback plan. 7 , that stock one reason why the tech sector in europe is doing well. Such a big day for earnings today in europe. Well talk more about autos after the break. You can get involved in the conversation streetsignseurope cn streetsignseurope cnb streetsignseurope cnbc psa warns they expected two key regions to contract this year. Highlights from our interview with the chairman, thats coming up next. We call it the mother standard of care. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. We like drip coffee, layovers centers of america. And waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Psa group profit jumped in the first half boosted by new models operating margins hit a record high during the period but the company warned they expect european and chinese auto markets to contract this year having already reported a near 13 drop in global sales earlier this month julianna, seems like a beat on the profit, but the guidance is interesting, pointing to weaker growth out of china and latin america here youre right in terms of their outlook for those markets. The important thing to bear in mind thats their outlook for the overall auto market in the region they cut their china forecast from a negative 3 contraction for 2019 to minus 7 they were expecting a stable environment, now theyre expecting a decline of 1 . For psa as a group, their exposure to china is relatively small compared to peers. While they expect the market to contract, its not a huge threat to their operating performance for the remainder of the year. Coming back to peugeots results, it was a Strong Performance in h1, certainly in the context of a difficult environment for autos. Auto revenues were broadly stable, down 1 . The key bright point is the continued strength in margins. They recorded record operating margins for the year of about 8. 7 a lot of that was driven by the restructuring and synergies on the back of the opal deal. I had a chance to sit down with the chairman of the psa group to ask him about the weakness in china and also about the sustainability of the Margin Expansion. Listen to what he had to say we are a reasonably small player in china, it doesnt affect us because we are a small player so far the European Market is strong our market share in europe is growing. Our profit is growing. Our operating profit margin is growing. So far so good as they say they means we need to keep a strong focus in the implementation in our Strategic Plan as you see whats happening now in china does not affect the psa group. I would say unfortunately we are a small player in china. On the point about margins, indeed very strong progress youve made nearly 1 percentage point higher versus this time last year. A lot of the Margin Expansion has come from the successful restructuring of opal. Now as that moves towards the Rearview Mirror s this type of Margin Expansion sustainable you are right the improvement of our financials in opal is outstanding. We could deliver around 700 Million Euros of profitability in h120 2019 compared to last year this is to the merit of our opal va employees and teams. We are in a competitive market this is a competitive game, regardless of what will happen in the market what counts for psa is that we have a competitive mindset. We want to do better than the other car companies. That means, yes, we have already grasped a number of synergies, but we are not short of ideas. We are not short of ideas at psa, we want to continue to lead the pack in terms of efficiency and effectiveness. Now, one other hot topic in the auto space is m a with a number of partnerships coming together across the space this year a number more rumored deals coming through the wires i spoke to the chairman about his openness to do a deal after the renault fca deal broke this year he said he remains open to partnerships of all kinds. Its interesting to bear in mind that a lot of deals have come from a place of pressure, but as youve heard psa is not under pressure when it comes to operating but more they are overexposed to europe. They have about 80 of Group Revenues to europe theyre looking to diversify and enter the u. S. Market. So this was a strong result from peugeot relative to its peers. We have seen an out performance in psa shares as well as the market welcomes them continuing to deliver on margins. That exposure to europe is key there. We had a bunch of other earnings in the auto sector as well nissan is set to post a massive fall in Quarterly Earnings tomorrow the japanese automaker will report First Quarter operating profit of several billion yen, thats around a 90 decline on the Previous Year according to the nikkei thats after multiple reports that nissan plans to double its job cuts to over 10,000. The reductions will reportedly total over 7 of the global work force and include the 4,800 cuts announced in may another company were focused on today is aston martin which cut several key forecasts for the year as they weather continued uncertainty in the uk and europe the carmaker lowered its earnings margin outlook and slashed Capital Expenditure to 300 Million Pounds the company lowered its wholesales figure, down 23 now. Daimler swung to a loss in the Second Quarter hit by oneoff costs. The carmaker reported a net loss of 1. 3 billion euros weighed down by more than 4 billion euros in expenses related to diesel probes and provisions for recalls of takata air bags the return on mercedesbenz car sales swung to negative 3 in the quarter as well. Daimler said it would accelerate cost cuts and reiterated it expects 2019 earnings to be significantly below last years level. This company has given three profit warnings this year. Lets get back out to julianna again. I want to paint a broader brush of whats happening with the auto industry. If you think about it, the industry as a whole is set back by multiple challenges you have the emissions standards challenges, new regulationint introduced by europe you have the challenge to move towards electrification and a dwindling growth environment you heard it from psa this morning. Would you say its fair to say that investors are rewarding the companies that are managing to expand margins given this set of extraordinary difficult circumstances here one of them is psa as we saw in their numbers this morning youre right. They are, indeed, rewarding companying that are able to continue to grow and withstand the pressure from the global auto market. Psa is a great and unique example of this. One trend were seeing is this desire to increase and spread the increasing r d needs across a wider fleet weve seen a number of partnerships come together on this front bmw, daimler, ford, volkswagen getting involved in partnerships to share the burden of costs required to adapt to the new environment. In daimler you highlighted the results. In the results, one line that was interesting, they say the ongoing high upfront expenditures for new products and technologies will be a burden this points to the costs of adapting to the new world. In addition to investors rewa Rewarding Companies that are showing Margin Expansion like psa, theyre also looking at companies who are showing that they can adapt and they can actually become a contender in the new world of electric vehicles however that may look. Julianna, thank you for breaking down the psa numbers this morning and your insight on some of the developments there covestro backed its outlook despite falling profits in the Second Quarter net profits slumped 68 but still beat analysts estimates. They confirmed their fullyear guidance and akzonobel reported a 36 rise in Second Quarter core profit beating expectations thanks to higher prices and cost cutting. The dutch patieints maker said y have delivered 43 million in reductions so far. The ceo stressed the strategy was not at the expense of growth been announcing in our 15x20 strategy, 15 return of sales by 2020 that we would focus on value over volume. One is resetting our cost structure. The second point is were looking at pricing definitely the view of rising raw materials. So, yes, weve been walking away from lowend volume, i dont think we do it at the detriment of the longterm Growth Perspective of the company and coming up, Boris Johnson prepares to enter downing street with all eyes on how the incoming Prime Minister takes on brexit good morning welcome to street signs. Im Joumanna Bercetche these are your headlines Deutsche Bank sinks after the lender posts a bigger than expected loss in the Second Quarter. The ceo says he wants to move on from the restructuring phase. I prefer to have that adjustment behind us as well were reporting a net loss of 3. 15 billion and we have a more significant share of the transformation related charges behind us. Auto americas slow off the mark as daimler swings to a Second Quarter loss and the psa chairman says Market Conditions are tough. We are entering now a chaotic period in the Automotive Industry as we all understand starting with the market downturn, the emerging markets are in turmoil we see the electrification is going to change many things. The euro slips to a twomonth low against the dollar after pmis miss estimates in july. And the doj launches a broad antitrust review of Tech Companies sending them lower in aft after hours. Well, if you just joined us, its been a heavy earnings day in europe. The reaction in markets has been confused we had the stoxx 600 donsiancing around the flat line here. It was briefly positive, now dipped into negative territory the dax is up in the green, the cac 40 is down a quarter percentage point t the ftse 10is down 0. 54 european indexes are slightly mixed. Lots of reports out of the auto sector, mostly on the disappointing side with the exception of psa and banks, we also had deutsche, one of the main underperformers earlier in the session for the xetra dax. We had macro data out of eurozone about a half hour ago pointing to further weakness in the pmi numbers for the month of july a miss versus expectations also the numbers coming in weaker than where they were for june that sent euro lower we are at 1. 1130 dollar yen, a bit for the safe haven currency flight to quality there. Cable, we are seeing a rebound this morning, up 1. 2450. Dimension that inverse correlation with the ftse 100. Thats a reason why the ftse trades weaker today on the back of the recovering pound this morning. Then a quick look at u. S. Futures as well. The picture is negative for the three indices as we head into the u. S. Session s p, dow and nasdaq all seen a bit lower. We did have the doj ruling on the investigation into big tech. That hit the tech stocks in after hours. Lets talk about the uk. The sterling, the pound remains near a twoyear low against the dollar on the risk of a Nodeal Brexit this as Boris Johnson is set to become the uks next Prime Minister today after easily winning the conservative Party Leadership election. The queen will invite johnson to form a government after incumbent theresa may submits her resignation this afternoon willem is at downing street. An exciting 24 hours for the uk. But the work is just beginning now. What has mr. Johnson got ahead for him . At least in the next 24 hours in terms of his speech and cabinet formation . What hell have do after hes been formally tasked with forming a new government by Queen Elizabeth late this afternoon, hell give a speech publicly setting out his plans, focusing on europe, and that will be the biggest plans for Boris Johnson. He wi there is 99 days until the uk is currently scheduled to looeftd European Union the challenge for johnson is the same problem theresa may faced, the math there is no guarantee hell have a stable or Strong Majority in the houses of Parliament However his plan of action as he expressed yesterday was to deliver brexit, make it happen by october 31st, unite his party and the country and presumably in a general election defeat jeremy corbyn. I say to all the doubters, dude, well energize the country, well take advantage of the opportunities that we can bring in a new spirit of can do, we will once again believe in ourselves and what we can achieve. So what can he achieve over the next 99 days he will try to get members of the cabinet who have a similar view to his on brexit to be around him, supporting him theres going to be members of his own party who are adamantly opposed to the idea of the uk leaving the European Union without a deal as well as those insistent on those leaving by the end of october at some point he will have to disappoint one of those two subsets of the european party, thats where he may lose that key paraphernalliamentary major. Lets bring in colin ellis from moodys its great to have you with us you just published a note on the risks of a Nodeal Brexit not so long ago lets just make it clear to the viewers. What exactly do you mean bay Nodeal Brexit sure. So the uk, as you know, is still supposed to be leaving the European Union and a Nodeal Brexit that were talking about sont1 on the 31stf october. It leaves without any agreements in place, beyond what we already know about essentially all the european law, all the european treaties cease to apply to the United Kingdom on the 1st of november theres no followon process in place for a trade deal immediately on the 1st of november theres no agreement beyond the small sketchy things we know that have been agreed to between regulators over here and the commission around derivatives trading. So theres a disruption to the way that business normally works in the United Kingdom, and in particular the business that the uk does with the European Union. And tariffs go back to the wto level. Tariffs are put in place, as well talk to us about the implications in the shortterm, that entails an awful lot of disruption weve seen how thoroughfares for trade would cope but really to be honest, beyond that shortterm disruption were focused on the credit fundamentals over the medium term we look at the sovereign levels, economic strength, institutional strength, fiscal strength, our assessment is a Nodeal Brexit, the uk leaving the eu without an agreement and without a smooth path to a relationship would leave the uk with a smaller economy. Just to repeat your point, the uk could be at risk of downgrades if it were to go down the path of a Nodeal Brexit at the moment, we have a double a2 rating we have a stable outlook a Nodeal Brexit would put negative grade pressure on the sovereign. What we said in our piece was given just the range of uncertainty here i dont think anybody knows how this Brexit Process will play out were probably going to wait and see what happens before we formally assess the credit implications would you say in your view with Prime MinisterBoris Johnson saying we will have a do or die brexit by october 31st, the chances of that happening have gone up absolutely. The risk of a Nodeal Brexit increased. The new Prime Minister will essentially have 99 days, as you just said, to try and get the deal that he says he wants with the European Union, which involves changing particular elements like the irish back stop, the Insurance Scheme for the irish border, and getting that agreed not only with the European Union but also parliament theres not a lot of time, particularly when you consider parliament is going into recess. The government also said or potential members of the future government have also said theyre planning on creating or beefing up the war chest to prepare for the possibility of a Nodeal Brexit which are the sectors in your assessment that they would need to focus on, come november 1st so smaller exporters, who are not able to cope with kind of having to have more storage arrangements on other side of the channel will be particularly exposed. Smaller firms more generally that have done less planning and less preparation around brexit, where some of the larger institutions have plans in place. In the financial sector, our view has always been that passporting would die with brexit but uk Financial Firms would no longer be able to Sell Services on the european continent in the same way they have been. Actually when we look at uk banks, most of those are well prepared for brexit. Even a Nodeal Brexit. So smaller firms, exporters. We still have concerns about infrastructure i ranarrangements we have temporary agreements over air travel. Electricity on the island of ireland. All these detailed issues where we will be throwing sand into a reasonably welloiled machine. When youre thinking about the rating on a particular sovereign, youre assessing the economic outlook, the political outlook but also the fiscal outlook. On the fiscal action, the uk is doing well if you look at it from the perspective of the current account deficit and the budget deficit, both have moved in the right direction. If anything the incoming chancellor has fiscal headroom to act if they want to increase spending in a situation where we end up with a deal, would you say theres potential upside to the uk economy in the sense that, you know, you have less headwinds from a twin deficit standpoint and less headwinds from a political standpoint . I would say theres potential upside the biggest single reason i would say thats there over the shortterm is that an awful lot of the uncertainty that weve been living with for so long now would just be addressed. Once you know what the brexit outcome is, particularly if its a deal, a smooth path towards a new relationship with the eu, that has the potential to unlock a lump of growth this uncertainty is Holding Back Investment decisions, holding back hiring decisions, holding back some aspects of Consumer Spending because people are nervous about what will happen when youre not certain or when youre more uncertain than normal about what the future holds, you tend to be more restrained thats probably the big thing. The uncertainty in itself is not a negative driver for your outlook. If we end up in a transition period of x years, would that pose a negative catalyst uncertainty in and of itself can weigh on spending. That can weigh on growth once that uncertainty is resolved, if you have a deal, thats more supportive of the uk sovereign credit rating, its more credit positive for uk issuers than if you leave without the deal the fact you resolve the uncertainty is also important. Colin, lots of questions. Lots of uncertainty still. Colin ellis from moodys powerful, precise and professional thats how the iranian president has described the capture of a british tanker by the revolutionary guard. He said tehran would provide an appropriate answer if the uk steps away from its seizure of an iranian tanker off the coast of gibraltar also coming up on the show, fullyear Profit Guidance is raised by iberdrola. Well hear from the ceo coming up welcome back iberdrola lifted its fullyear profit outlook boosted by a near 17 jump in first half net profit the Utilities Company said strong growth in the americas and germany offset lower returns in the uk and its domestic market im happy to bring in the chairman and ceo of iberdrola. Good morning to you, sir i have to congratulate you on what appears to be a strong start to the year. Can you talk us through some of the highlights so, well, we presented our First Half Results i think these results have already had very good situation. I think we have already increased our profit by almost 70 to 1,744 Million Euros that is mainly thanks to the investment of 8 billion we have made in the last few months. All our businesses have had good performance. Even in countries, the contribution of americas, the United States, mexico, brazil, they have offset the negative the lower result of britain mainly in the case of britain affected by the retail business. Retail is not a significant business but it is affecting the result of the group. Thats what we are saying. Thats the Important Message that i would like to make, that we are confident that we have already improved our forward outlook from single digit growth, we were saying that up until now, to low double digit growth we expected by the year end. So the outlook for growth is positive youre seeing double digit growth by year end you also spent a lot of investments in the past 12 months do you feel like youre finally going to see the fruits of those investments . Is that one reason why you forecast double digit growth by the end of the year . So i did not listen well, but i think the position were in at this moment, the opportunities that we have in transition, the opportunities have allowed us to increase our plans of investment thats one reason why were becoming more optimistic about the future of our business can you talk me through in june you signed an agreement with pavilion to sell your p portfolio of pavilion to lng, is this part and parcel of the strategy of divesting businesses that you dont think are core to your strategy and plan going forwards well, i think when we presented our plan in 2018 and revised in february of this year, we had a plan of inve investment of 3 billion. We will continue making the investment in terms of nonstrategic assets or rotation of certain assets. All this is part of that what i would like to say, the energy business, the Capital Gains we have made, which is not very large, has been already almost fully applied for another implementation of certain efficiency measures, which is delivered with the result the following year its not affecting the first half in terms of other businesses, its not new for years we have besharing our wind farms, in the United States weve been selling some wind farms, in france and in germany we have already sold in the past some of those. Thats part of our normal business, and probably we will make some more of those, selling a my morie i Minority Stake or e feel is not fitting our strategy the uk you say is a weaker spot in your earnings. What was the main catalyst for the underperformance . I think if some market has a strong growth, we will be provoking most of the players and were not in a situation. You see the number of retailers that are failing in the recent months we are forced to take their customers to continue to selleck trisit sell electricity the contribution to all our ebita is less than 1 . The sector is effective for this regulatory intervention. We had a lot of Political Developments over the last 24 hours, but many are not ruling out the possibility of a general election the leader of the opposition, jeremy corbyn, said part of their plans would be looking to nationalize some of the utilities. Do you worry about the prospect of a potential corbyn government in the uk . I think the manifestoes, i think, are there, but we have to see what situation is afterwards we will see what happened, if this happens, we will be prepared to do the next sar thi necessary thing. Its not the first time weve been in other countries like bolivia, guatemala, or like hawaii weve been there as well nationalized i think in all those cases we have negotiations with the governments, we know how to proceed. I dont know if britain is ready to be in the same group of those country countries, but nevertheless we have already experience with that happening to do the necessary negotiation for defending the interest of the shareholders thank you, sir. Congratulations again on a strong start to the year now the ftc will reportedly announce a 5 billion fine for facebook later today as part of a sweeping investigation into allegations that the company mishandled user data according to reuters, facebook will set up a Privacy Committee as part of the settlement. And shares in amazon, facebook, alphabet and apple fell in afterhours trading after the u. S. Department of justice opened an antitrust review into market leading Online Platforms the doj said it will examine whether firms are engaging in practices that reduce competition. It didnt specify which firms would be investigated, but mentioned search, social media and some Retail Services online. Elizabeth which countries do you think would be most vulnerable to this investigative practice out of the doj this is a broad review the doj did not single out a specific name, but the sectors mentioned should give us an indication for search, it would be google, social media, facebook and retail, seems like amazon would be the culprit there thats why were seeing the lowest Stock Movement in those companies because they look to be the most likely we know congress opened an antitrust investigation into those four companies, questioning those four companies specifically a broad based review, this looks to be different from what we already heard from the doj and from the ftc it looks to be a bigger review of the monopoly concerns its interesting timing over here, in the eu not really in the eu maybe by october 31st, but the eu has conducted their own antitrust investigations into apple, google and amazon as well. Could you expect the doj to take a leaf out of the eu book . I think its important to look at cases that have already been executed in the eu as possible example for the way the eu would target these companies. We heard from some analysts overnight that googles play store would be one of the key places that could be targeted. They think that android which is dominant for google could be a risk, and we have already seen billion dollar fines in the eu on that front. Amazon was looked at and its role with data that was interesting to note for the marketplace and as a seller. You can take some cues as to how these companies are dominating is there scope for the two of them to work together, some sharing of information when it comes to the investigation far no indication that theres stopping of whats already happening here in europe weve seen 9 billion in fines for google here and it has not done a lot to the company, so theres incentive to push forward. Its a politically charged topic now and big tech is being targeted from all fronts theyve gone at lengths to stress its not a political process. Elizabeth, thank you very much for breaking that down for us. So tech was a big mover in after hours yesterday. This is the picture for u. S. Futures today. All of the three makers are seen opening up in the red. As we get right into the heart of earnings week, big week this week that is it for our show today. Im Joumanna BercetcheWorldwide Exchange is coming up next. Olay ultra moisture body wash gives skin the nourishment it needs and keeps it there longer with lockin moisture technology. Skin is petal smooth. Because your best skin starts with olay. Did you know you can save money by using dish soap to clean grease on more than dishes . Try dawn ultra. Dawn is for more than just dishes. With 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. Try dawn ultra. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. It is 5 00 a. M. Here is your five at 5 00. Big tech under fire in a big way. The Justice Department opening an antitrust review of the Worlds Largest technology companies. Wall street right now on record watch. The dow, the s p and nasdaq all less than a half percent away from record highs. Can a major day for earnings push us over the top or will it be trade the white house confirming a u. S. Trade delegation will head to china next week for the first