Lower. President trump continues his attack on the central bank saying a small cut is not enough airlines li s slide as lufta delivers a sharp drop in Second Quarter net profit and warns the market will be challenging for the rest of the year. And bayer warns its 2019 targets are becoming ambitious due to a challenging environment for its Crop Sciences business as it is linked to thousands of lawsuits here you have behind me a lot of earnings going on today in europe. Lets run you through some of the highlights on this super tuesday. Were in the thick of earnings season a number of blue chips have been directing markets, bp right there is trading near the top of the stoxx 600 after posting a beat on the bottom line. Up 3. 2 this morning in germany bayer described its fullyear targets as increasingly ambitious in the face of challenging conditions and legal action bayer stock is down 3 lufthansa has posted a sharp drop in Second Quarter net profit amid tough competition in the European Markets lufthansa stock is down 5. 5 it was down 7 at the open and reflects some commentary weve had out of other airlines, namely ryanair yesterday much more about the reports. Well talk about them more on the show lets branch out and talk more broadly about the price action weve had over the 24 hours. Were getting closer to that allimportant fed meeting. The market is priced in at a 25 basis point cut, but will they go more . Yesterday we had wall street trade a bit in the negative territory. Very low trading volumes about 10 lower than usual s p ended the session about 0. 2 weaker dow slightly in the green. The main event is that fed meeting. We have the resumption of the trade talks between the u. S. And china. This afternoon we also get the core pce numbers and a continuation of the earnings season some big names reporting today in the u. S well talk about apple more with elizabeth in a bit and procter gamble, mastercard and pfizer to name a few in asia, we had a slightly better session nikkei, we had the bank of japan meeting. The index ending the session about a half percentage point higher not the case for europe. Only one hour into the trading session. The broad composite index is down a half percentage point were in a negative zone this morning. All the focus yesterday was on the ftse ftse 100 yet again bucking the trend. We had that big plunge in the currency yesterday sterling down 1. 5 Percentage Points. That gives somewhat of a boost to the ftse 100. Today the results are the index is being lifted a bit by those bp results we were talking about. That we also have bank of england on thursday xetra dax trading a bit weak we talked about bayer and lufthansa dragging it down and we had the cac 40, Second Quarter gdp numbers came out slightly weaker than expectations the ftse mib down 1 now actually were a good 50 poin0 s lower than where we were when we went into the ecb meeting last week switching to for keign exchange. All the focus yesterday was on the pound. Cable 1. 2160 we dropped four big figures in four days. A lot of damage is going on in that space looking at cftc positioning, the market is short in this currency weakness persisting in asia as well we are about 0. 4 weaker the market is coming to terms with the nodeal possibility on october 31st given the latest cabinet formation and the rhetoric out of the european government euro is still flattish the yen is firmer. The big focus is on the dollar because the fed is widely expected to lower Interest Rates by 25 basis points at its twoday policy meeting this week now, the move would mark the Central Banks first cut to borrowing costs in a decaddecade President Trump called on the fed to make more than a quarter point reduction to Interest Rates. He said a small rate cut is not enough adding that the central bank has made all the wrong moves. I want to bring in the global bond Portfolio Manager from janius henderson who joins us on the line i want to ask you to pick up on some of those comments out of the president there. Hes criticizing the fed for raising Interest Rates way too early and way too much perhaps hes right they raised too much otherwise we wouldnt be talking about an Interest Rate cut tomorrow. He has a point and hes happy to make that point, but now they moved to a rate cutting bias you dont need that political interference or that cheerleading going on in the background it complicates the message that the fed wants to send is that theyre focused on the economy and less about the politics. We had Economic Data on friday Second Quarter gdp data came in showing consumption still strong in the u. S growing at 4 . Why do they have to cut . Are they being forced to cut by the markets and by the president . I think theres a bit of both going on here. In the First Quarter the consumer is weak a bounce back in q2 was not surprising the important part was the Business Investment side thats the justification theyre looking for. They also got low inflation, but theres no doubt the market has been much ahead of the fed so far this year. It feels very much like the fed has been dragged into play much quicker than they would have got there if they wereleft to thei own devices. Theres bits of both going on. It feels like the market pivoted a bit in the last week and less and less people are calling for a 50 basis cut tomorrow a few people are punting on a bigger cut than that one interesting aspect to watch out for will be the number of dissenters are you expecting to see dissenters if they go for a 25 basis point cut tomorrow i think theres a risk of that but its probably quite unlikely they were clear after wayward comments made to the press, they had a press spokesman for the new york fed come out and rebuff basically what he was saying, saying he was speaking more from an academic perspective. The question is which way will the dissenters be, will they be to the down side or for further cuts, given that gdp is stronger my best case is well get a unanimous fed decision here. Youre a bond guy ill take it back to bonds ultimately what the fed is wanting to do or trying to do is to resteepen the curve if they go for the 25 basis point cut and signal theyll be evaluating the data Going Forward, is that enough to give confidence to traders like yourself that they are indeed going ahead of the inflation curve and will allow the treasury yield curve to resteepen again . I think if the fed comes out on 25 basis points, it will be tough for the market to take that in a positive light i would expect a flatter curve in that environment which would be negative for risky assets and strengthen the dollar. If they want to steepen the curve. If they want the markets to remain buoyed by the fed, they need to stay on the front food where are you on duration you have the tenyear yield at 2. 05, it is struggling to break through and do you think if the fed sound dovish we could break cleanly through the 2 you could see a quick move through 2 if they are dovish if they cut 50, thats a done deal i think probably more likely it will be a slow grind from here where the Long Duration position and we support a Long Duration position within our portfolio, the taili risks favor that position given that the fed doesnt have a justifiable reason other than to be on the dovish side of neutral if theyre going to be all right well pick up the conversation shortly in our second segment. We h what do you think is going to happen with the fed . Let us know. Tweet us at streetsignseurope cnbc or tweet me directly. A big 24 hours coming up coming up on our show, bp reports better than expected Second Quarter net income. The ceo tells cnbc the energy giant is working to address Environmental Concerns i dont think it helps to demonize companies or groups it gets society polarized and it is important to move through big complex problems when you set that up. The reality is it will take all forms of energy to solve this. Applebees all you can eat is back. Now thats eatin good in the neighborhood. Welcome back bp posted Second Quarter underlying replacement cost profit of 2 2. 8 billion beating expectations the measure of net income was unchanged from the Previous Year amid lower oil prices. Bp expects Third Quarter reported production to be lower than the Second Quarter due to maintenance activities and the impact of a hurricane in the gulf of mexico the ceo, bob dudley, told cnbc that despite volatility the demand for oil is still there. Its not been so volatile in the last month or so you have the tensions with iran. We started the year at 50. Lots of geopolitical issues, venezuela and iran we dont see destruction of demand happening trade tensions, people ask me all the time are trade tensions bringing down Energy Demand . A little bit in the first half but its coming back were planning the company on 55 a barrel these prices are just fine for bp interesting comments there from bob dudley. Before we pick up on system of his broader commentary about oil and the oil markets, i want to ask about bp results today the market is reacting quite well to it the stock is up 3 they reaffirmed their dividend yield of 6 , which is juicy in this environment where its almost impossible to get yield what was your take away from the report card . I think it was a good strong set of results i think they beat Analyst Consensus strongly the cash flow, which i think the market is focused on given the strong yield, was also very, very promises. About 8 billion of cash flow generated this quarter so i think overall theyre doing a pretty good job. They followed on from total last week, who had not as good a set of results so expectations were probably lower coming into bp results i think also that in terms of the Share Price Movement today helped by sterling indeed. Actually before you came on, you and i were chatting off camera, you said Oil Companies are out of favor, which is interesting really because in light of these results, you have a company, a huge monolith company who is not only making the results but also generating the Free Cash Flow and offering a 6 dividend yield. Why for an investor is this not an attractive proposal then . I think the dividend yield does make the stock very attractive its got a 6 yield. I think its shown over the last few quarters and Going Forward that it can quite easily pay that dividend. Its got cash left over for acquisitions, for share buybacks so i dont think theres too much worry around bp being able to pay that dividend i think the concerns of investors surround the oil industry in general, longer term demand for oil, whether its right to invest in Oil Companies anymore. I think bob dudley earlier was talking about that and the role in the Energy Transition thats the worry about the the worry that investors have is whether theyll be allowed to invest in oil and Gas CompaniesGoing Forward. Indeed. Youre seeing a good amount of pressure from Companies Pressing for more esg standards, Sustainable Investment bob dudley was saying they factors in a price of 55 into their forecast, lower than where it is now. Would you say that based on fundamentals oil should be trading a little bit lower but the reason were higher is due to geopolitical risk premium i think certainly at the moment if you look at the fundamentals, the supply demand, demand is probably in general weaker than expected most commentators lowered their demand forecast as the years have gone on i see further downside in terms of demand. On the supply side of things, i think the market has been bolstered by the iran situation. But thats also whats kept the Oil Price High where it is at the moment just the go eopolitical tension going on in the middle east. Overall it feels like the market is a little bit weak from a fundamental perspective. You talk about the iran situation and whats interesting about the iran situation is iran continues to export oil to china. That doesnt appear to be changing there doesnt seem to be any willingness on the u. S. Side either to go down that or to incorporate the china iran part of the equation into the china u. S. Trade deal. Do you think thats purely posturing on part of the u. S. Because they do not want to see Higher Oil Prices here even if it means iran will continue to ship oil to china . The u. S. Is in a slightly trekky s tricky nation. Its clamping down on iran, venezuela, Big Oil Producers the u. S. Sanctions have had a big impact on both of those countries. If you had not seen those sanctions, you would probably see Oil Prices Lower than where they are its a bit of a balancing act. Theres a lot of rhetoric that comes out of trump about oil prices being good for the country, but the u. S. Is exporting a lot of oil as well the message for the u. S. Consumers, he wants to get oil prices down. The overall impact on the economy is not as great as it once was in the past i think in terms of the china issue, i think china do want to import more oil from iran. They are used to doing that. If they can get around some of the sanctions, theyll continue to do so definitely appears to be the case one thing i want to point out as well, the context of opec, they introduced the production cuts and weve have seen overcompliance on the saudi side you point out whats more important is whats in storage, not just whats produced in your view, is there still a lot of oil sitting on the sidelines here creating some downward pressure . Yeah. I think in terms of when looking at the fundamentals of the market, its important to look at where storage is, where the coffko cover is in terms of storage like at data one of the providers i use is oil x. What they show is that youre well supplied at the moment. The market is coming down. So you are starting to see some draws in the market with saudi cutting production and other opec members but youre coming from a lhigh base demand is weak at the moment thats why i pointed at the fundamentals being overall pretty weak. I guess reading between the lines you see Oil Headed Lower i think in the absence of any ramp up in the geopolitical tensions, i think oil prices will probably head lower well leave it there. The pound has tumbled to a 20month low versus the dollar amid heightened concerns of a Nodeal Brexit michael gove earlier said the government is working on the assumption that the scenario is the likeliest outcome. Prime minister Boris Johnson denied the claim on a trip to scotland saying the government still wanted an agreement. However he wanted his predecessors withdrawal deal was finished i want us to engage, to hold out the hand, to go the extra mile, extra thousand miles what we wanted to do is to make it absolutely clear that the backstop is no good. Its dead. Its got to go the Withdrawal Agreement is dead its got to go but theres scope to do a new deal the withdrawal deal is dead and weve seen some big movement in uk assets in the last 24 hours. Most notably in the pound. Thats the p ek chicture for st. 1. 2150 overnight in asia we got to about 1. 2130 this is the left the sterling has been since february of 2017. Big movement there to the do downside lets look at gilt today you are seeing a rally thats been supported. We have the bank of england meeting coming up on thursday. Twoyear gilts trading at 46 basis points here. Tenyear is unchanged at 64 basis points, about 1 basis point firmer still low. Less than 65 basis points for tenyear gilts our global bonds Portfolio Manager is still with us on the line andrew, your take on the uk developments the last 24 hours a lot of damage in the pound here yeah. Its probably to be expected to a certain extent certainly Boris Johnsons new cabinet and the messages were receiving are towards Nodeal Brexit being the best case whether thats delivered or not, that remains to be the case and remains to be seen it will be difficult parliament doesnt want to approve a Nodeal Brexit or allow one. Markets tend to shoot first and ask questions later. We have the bank of england meeting on thursday. For whatever reason the bank have been guiding towards limited and gradual rate hikes it seems out of fashion now given to where other banks are guiding. Do you feel they have to change their language and sound more dovish the market is pricing in Interest Rate cuts out of the bank of england. Theres no question were seeing a softening of the rhetoric from certain members over the last month or two, which means they will go towards a gradual buy sis. The credibility of the bank is already called into question i think its a matter of time. Were expecting a neutral bias when you say the credibility of the bank has been called into question, this is a serious issue, right you have the mpc of one of the most important Central Banks in the world, you say their credibility is being questioned, how do you trade that . Is there any way as a pm, you know involved in the fixed income space, that you can take them at their word in the future i think, you know, the Central Banks, they are run predominantly by economists. Theyre prone to look at models. The u. S. Is an interesting consolation of data. Markets are still strong, wages are growing at a reasonable clip those tend to be the data points central bankers look at. Its not surprising they maintained a more optimistic tone as a Market Participant we look at the sentiment surveys and thats painting a darker picture for the uk economy for us its just taking in all the fundamentals, being willing to take a position that may be counter to the banks current view but which we expect the bank will come around to providing those surveys and forward looking indicators are confirmed in the hard data you talk about the potential for weaker growth out of the uk, but also we had this plunge in the pound. The last time that happened there was a pass through on to inflation. We saw those cpi prints come in higher in subsequent months after the referendum do you think now is the time for investors to start thinking about buying the link market in the uk is interesting. Theres a lot of structural demand from the Pension Funds at the long end at the shorter end, i think you can make that argument, but a lot is priced in you know, we already see we need to see the pound trading significantly weaker than it is now to justify the pricing we see in the break even market i think linkers here look expensive. Its not a great investment. Certainly something we dont see as attractive at these points. We have to watch the pound if it were to devalue towards the parity with the dollar, that would call into question that there will be a pass through, but its the sort of inflation that Central Banks dont want to be pushing against, its all price increases rather than wageled its bad inflation all right well leave it there thank you very much for taking the time to speak with us today. Also coming up on street signs, lufthansas Second Quarter profits take a sharp dive following a turbulent year. More on that after the break for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. We carry flowers that signifyn why we want to end the disease. And we walk so that one day, there will be a white flower for alzheimers first survivor. 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Ceo bob dudley tells cnbc the companys dividend is healthy. Well have a progressive dividend policy. A 6 yield is really healthy hard to find that in a bank. Its well underpinned here thats the key. Very well underpinned the rest of europe edges lower as markets price in a 25 basis cut in the fed a President Trump continues his attack on the central bank saying a small cut is not enough airlines slide as lufthansa delivers a sharp drop in Second Quarter net profit and warns the market will be challenging for the rest of the year. And huawei revenue jumps but the ceo says the blacklisting could affect the company it is a big earnings day in europe let us take you to some price action the one Index Trading in the green is the ftse 100 yet again for the second session in a row. Ftse up 1. 8 in yesterdays session. That was the biggest gain since last august. Today we are up 0. 2 the weaker pound is aiding some of the export oriented companies. Xetra dax down 1 . Heavy trading this morning two names in particular were focused on, lufthansa and bayer. Well talk about bayer shortly with annette in germany and who can tell us more about the company results. Cac 40 down 0. 6 the italian index, heavy trading, deep in negative territory, down 1. 5 the political situation is heating up there the banks are also coming under pressure as well as Interest Rates continue to move lower switching to fx, yesterday all of the focus was on cable. Now that currency pair is at 1. 2150 we dropped a half percentage point in the Asian Session volumes have been high we moved four big figures in the last trading sessions. We seem to be holding in at 1. 2150 euro is still trading at around 1. 1140 thats the level we were at as we went into the ecb meeting last week. The dollar yen, we have a bounce the bank of japan meeting overnight. No change in monetary policy, but they signaled a willingness to act if things get worse we have plenty to digest the fed meeting coming up tomorrow where theyre expecting to cut 25 basis points were in the heart of earnings season some big names to watch out for including apple, procter gamble, mastercard and pfizer. We also get personal income and core pce data as well. This is the picture for the three indices. All of them are called lower i want to bring you some developments from Goldman Sachs who raised their yearend target for the s p 500 to 3,100 the Investment Bank lowered its earning forecast for the index predicting a 3 increase in 2019 which represents a 3 cut. Goldman cited economic weakness and the margin outlook for the move a bit above where the s p is now. Bayer has backed its fullyear outlook despite describing the target as increasingly ambitious the German Chemicals firm cited challenging conditions for its crops Sciences Unit which saw sales fall over 3 in the Second Quarter. The firm also revealed its facing lawsuits from over 18,000 plaintiffs related to the roundup weed killer lets get out to annette the headline grabber is 18,000 lawsuits have been filed agai b how is the underlying business doing . Thats a key question theyre saying that clearly the key areas of business are also under pressure this because of low demand by u. S. Farmers farmers are hit by bad weather and also the try cheese trachin tensions are not helping farmers sell their products. To be fair the biggest worry for shareholders of bayer is the potential costs to settle that roundup case in the United States in the last three months, 5,000 new lawsuits came up that gives you a potential it kind of tells you how big the problem for bayer could be the key question is whether there is an out of Court Settlement sooner rather than later. The longer they wait, the more expensive this could get for bayer. We have no clue how big the settlement could be. We know bayer could afford to settle each of these cases individually we have seen a recent settlement at 86 million euros. If you multiply that with 18,400 people, this is not possible for a company as big as bayer is but the shares are down also today. Theyre down 40 on the concerns those legal problems for bayer are not going away easily and it will cost them a lot of money. Its just over a year since they acquired monsanto, and theyve been met with lawsuit after lawsuit. The stock is down 40 . I want to ask you about another company. Lets talk about lufthansa here. They posted a Second Quarter profit sharply lower than a year ago. The company warned that the European Market will remain challenging until the end of 2019 fuel costs were higher compared to 2018, the airliner warned on overcapacity and price pressures. The German Company confirmed its fullyear outlook. Lufthansa are echoing what we heard from ryanair yesterday in that theres over capacity to the market and increasing competition as well as higher fuel costs doesnt look that pretty on the outlook here yes the key difference between ryanair and lufthansa is that the brands they compete with is euro rings, which is making a huge loss. Theyre dipping deeper into the red. The key question is how can lufthansa turn around its lowcast carrier business euro rings because the price is hitting them in the short area of flights, out of german and austria. Thats where theres a lot of competition from ryanair, easyjet. Everybody was hoping when air berlin was ceding and falling out of business two years ago that lufthansa could tap more flights and steady their position in the market, make it more stable, this didnt happen. Thats the negative outlook for lufthansa, the euro rings business they need to turn it around. It was reported that they are looking into a Holding Structure along the lines of aig this probably would make sense then you have more management expertise in the individual brands and that could have euro rings Going Forward. When you look at the data set about the earnings per share number, analysts had expected 1. 40 euros, and we got 48 cents. Thats the reason why the shares are down so much on a positive note, there will be no strike action and alGoing Forward there shouldnt be a looming strike action for lufthansa. No industrial action for lufthansa, but a huge miss on those eps numbers. Annette, thank you for breaking down two of the big movers on the xetra dax. On to the uk, where Reckitt Benckiser has reported worse than expected Second Quarter sales and cut its 2019 rev flew o revenue outlook. They blamed the drop on demand for infant formula in the u. S. And china. The Company Expects the second half of the year to return to normal growth. Dialog semiconductor saw a stronger Second Quarter. Dialog expects revenue between 360 million and 4 400 million dialog up 1. 3 and huawei says its first half revenue rose by more than 23 compared to the Previous Year as the Chinese Tech Firm shrugged off a u. S. Trade ban. The company added that smartphone shipment volume jumped by 24 , but huaweis chairman says u. S. Restrictions will hit the companys fullyear results. To talk about this more i have dexter tillian joining us. Thanks for coming on i want to start off by reminding viewers that huawei is a private company. Its not a private company they dont have to release results. Clearly they want to release results to show that the company is doing well. Yes its not surprising its been doing well the last six months the trade war, if you want to call it that, the tech war started in may so the first 4 1 2 months were business as usual. Th they did the necessary planning to make sure there was the necessary components through the rest of the year the rest of the year might be difficult. Its still not clear what they can do in terms of u. S. Supplies they said they signed 50 5g contracts to date. So they already have a decent pipeline the 5g market is good you have ericsson, nokia they signed between 40 and 50 contracts worldwide with different operators. Its a competition its a market. Theyre doing well in the medium to longterm opportunities, theres a need to have components from the u. S because they spent 11 billion with u. S. Suppliers last year, about 35 , 40 of the entire operation of expenses. If they cant replace those components, they might have an issue. The issue with europe and the way its approaching the huawei situation, it has not been unanimous. Each country has been adopting their own method of dealing with it some countries are saying were banning the use of huawei equipment. Some people are saying the uk nonnational security equipment, were happy to deal with how the question is how easy is it for any companies or countries not wanting to cooperate with huawei to offset that hole by going to other Telecom Providers and im talking about the ericssons and nokias of the world. The European Commission has said well have greater scrutiny but a full ban the french have done the same thing. The uk we think will go that way. We have a new Prime Minister who might go in a different direction. If youre using huawei for previous generation of equipment or 4g, you need to get them for 4g and 5g as well. Obviously thats a big expense if youre an operator. Were talking billions of dollars. That will take time. Its costly. It takes a lot of time its difficult for operators which are already using huawei for some equipment to be able to fully replace it huawei know that as well. I want to talk about that smartphone volumes shipment volumes are up 24 in contrast to analyst expectations of apple numbers apple doesnt publish their smartphone numbers anymore but they have been dropping every quarter. The china market share is 38 . None of this bodes well for apple who are set to be relea releasing earnings later today yes in terms of the huawei smartphone, you have the chi nee market where they dont need the u. S. Components. You have the rest of the world in the rest of the world it might be more difficult if they cant use google and android even though they can replace and have an operating system, the issue is not so much the operating system but the systems where that will operate. Weve seen microsoft and other companies trying to create that ecosystem. In terms of apple, theyre not giving numbers for a reason. You need to look at expectations with apple the iphone has been the most successful Consumer Product of all time were talking 1. 5 billion in sails. 1 trillion in revenue. But the market is forward looking. If you look at apple in terms of they need to do the same thing, its difficult to do so were still talking about a company that will make 15 billion to 20 billion in the next quarter theyre doing fairly well but not as well as before. The forward looking, very difficult for them to find a new ifsh iphone replacement but still a company that will do well. Regulation in the space has become topical, even though you look at the stock performances of big tech, all of them are up more than 20 year to date, brushing off the concern from the regulatory side of things. The department of justice has said theyre going to start looking into practices of these Big Tech Companies how serious of a threat is that . How much of the european model do you expect the u. S. To undertake when examining these Big Tech Companies the europeans did it first. Then the americans in the last six months are starting to its one of the few things where you have bhave bipartisan consen the u. S. Weve seen a change of view in terms of what it should be, not looking purely at the price but consumer choice, whether these companies are monopolies, even though they can be free. What is interesting with the department of justice investigation, they have not given much detail to what theyre looking at you can look at it in terms of theyre trying to scare those companies, trying to change them a bit like they did with microsoft 20 years ago, or theyll regulate them strongly what the u. S. Company can say, and i think will say, is that if you break us up or if you have a radical plan, then the chinese will take over but were also seeing in europe that european regulators are looking at data as an issue. Not looking too much in terms of finding companies or in terms of breaking them up, but not using data so in germany like in february and march the regulators said to facebook, you cant use data from whatsapp and facebook and instagram and combine it you have to give the option to your user. I think thats a far bigger risk to facebook. Its a crackdown on the usage of data and privacy concerns rather than the company structure. All right. Dexter, well leave it there thank you very much. Interesting chat u. S. And chinese negotiators hold their first high level talks today since President Trump and president xi agreed to a trade truce last month the vice premiere, liu he, will be there as well ongoing discussions and something the market will keep an eye on. Also coming up on the show, beyond meat shares get burned after hours by surprise Stock Offerings. The details coming up next here, it all starts with a simple. Hello hi 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. Englands cricketers might be flying high after the world cup win against new zealand but they will be facing a different challenge as they take on australia in the first test of the ashes at baston on thursday. Australia will look to force a first home series loss in 18 years. England will be hope their bowling attack of anderson and archer will swing the contest in their favor. Austral and shares in beyond meat plunged 14 in extended trading after the Company Announced unexpectedly a 3. 25 million Stock Offering three months after its ipo. Most of the share also come from shareholders including the ceo and the cfo. This despite a quadrupling of net revenue in the Second Quarter. The latest share sale is expected to help the Company Expand its manufacturing facilities so from meat to apple. Its the biggest week of earnings stateside with 152 s p 500 companies and seven dow components set to report apple is front and center today after Third Quarter results are set to be released after wall street closes. The tech giants numbers from china will be closely watched. And new data suggests apple shipped fewer smartphones to china the Second Quarter while huawei saw its market share jump 10 Percentage Points to 38 . Overall smartphone shipments to the country fell 6 , the ninth quarterly decline in a row elizabeth joins us with more you and i were talking about the revenue competition, still about 50 of apples revenue comes from the Smartphone Market doesnt look positive if you look at it from the china angle. Theres a couple of key things to watch today, specifically that china market and sales there. Dont get the iphone Revenue Breakdown in china, we will see revenue in the region as a whole. We know the company warned on sales earlier this year. It will be important to watch how thats playing out in the quarter and the guidance for the following quarters a couple other things to watch, looking at the effective price cuts on iphone to see whether that spurs demand. Were at the end of replacement cycle for these phones services growth, we talked about that a lot as a key driver in apple. Its a higher margin business, apple wants to propel that growth because of slowing smartphone sales and we have to keep listening for regulatory concerns on the call in light of the news weve had. Apple acquired a majority of intels modem business for 1 billion. How much upside does that present . This is an important 5g play. We know apple is developing 5g devices, but its likely not going to be out until 2020 we Heard Research yesterday that theyll be releasing three 5g phones in 2020 this acquisition is a huge part of bringing that production into apple, making its own chips like huawei and samsung do it was lagging versus the competition, but this acquisition allows them to start ramping up innovation. Well keep an eye on the Apple Earnings later thanks for breaking that down. U. S. Futures, one day before that allimportant fed meeting all the three indices are called in the red watch out for core pce numbers later today. Thats it for our show Worldwide Exchange is coming up next. 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