Shares in Royal Dutch Shell drop as weaker prices hit the Second Quarter and profits fall to the lowest level in two years. And best in a decade barclays profits soar 80 in the first half as they hike its dividend our return on equity was 9. 3 so for the first half of the year it was over 9 , 9. 4 its probably the best statutory first half performance that barclays has had in nearly a decade and rio tinto shares come under pressure after the miners first half profits miss expectations despite a bumper special dividend we have a very decent Capital Allocation weve been implementing this for the last few years in terms of strength of balance sheet, in terms of investment in either growth project and returning cash to shareholders weve been doing that. Welcome to the Program European earnings season in full swing with key reports in the oil, mining, financial and industrial sectors shell its missed expectations reporting Second Quarter profit that fell 25 to a 30month low thanks in part to weak oil and gas prices barclays, its reported an 82 rise in first half pretax profits. Its best result in a decade. The british lender boosted by reduced costs and a Strong Performance in the Investment Banking unit the stock higher by 3 and rio tinto, you see its down more than 2. 5 this morning. Its delivered its best first half profit in five years, they report a 12 rise in underlying earnings for the first half of the year but still missed expectations stronger iron ore prices helped to offset some disruption problems the ceo told cnbc earlier hes confident the company will reach its targets despite an uncertain environment. When i look forward, one of the key markets is china it is clear china is slowing down as expected, but still strong from a mineral standpoint we are in a good position. The finances are strong. Im confident that we will continue to deliver what we say we will deliver. Mid cycle adjustment. Those two words from Jerome Powell triggered a tumble in u. S. Stocks despite the feds First Quarter point rate cut in more than a decade the comments dampened hopes of further cuts this year some traders said the statement itself had already proven to be a bit of a disappointment. You can see whats going on. The ftse 100 slightly into negative territory similar story in germany weve seen a Strong Performance in french shares fit ftse mib trading up. The euro weaker by a third of a percent against the greenback. The pound trading pretty weak at the moment, also trading about a third of a percent weaker. The Dollar Strength is visible against the japanese yen and the swiss franc. Lets look at how the u. S. Markets are shaping up ahead of today. You can see how they closed down significantly last night the dow down more than 1. 25 the s p 500 closing more than 1 lower. A similar story in the nasdaq. You saw that reaction pretty swiftly from traders in the u. S. And we will be watching to see how things shape up today on the other side of the atlantic powell tried to clarify his remarks later on during the press conference suggesting the u. S. Economy right now does not need aggressive easing its not the beginning of a long series of rate cuts i didnt say its just one or anything like that i said when you think about rate cutting cycles, they go on for a long time. The committee is not seeing that were not in that place. Would do that if you saw real economic weakness and if you thought the federal funds rate needed to be cut a lot thats not what were seeing President Trump expressed his disappointment at the decision on twitter he wrote as usual powell let us down the fed ending its Quantitative Tightening Program slightly earlier than planned neil shearing joins us here. Ahead of this decision you talked about a further 75 point of cuts over the second half of the year im wondering whether the dissenters that we saw on the feds board maybe made you rethink that the fed has a difficult game its trying to balance on one hand you have the survey data which is deteriorating. The Global Economy is struggling, but consumer is in a good place the labor market is in a good place in the u. S i think thats what you saw coming out of the fomc last night. Theyre trying to balance this difficult these two things, two sides against one another. My sense is that they probably wont cut again now in september. They might cut again later this year maybe another cut in early 2020. If its the case that the u. S. Economy continues to struggle. So the vote count and the language you heard yesterday pushed out your time horizon for further cuts i think its dampened expectations of another quick cut in september the markets, of course, are pricing in a 50 basis point cut yesterday and further moves in september. I think that will come out of the market you mentioned this contradiction between the hard data, the here and now, and the future, the sentiment, what may come down the road from the possession of consumers and businesses and i wonder how does the fed go about, in your meind, deciding what is the right data to look at is that an Impossible Task the challenge that Central Banks face is they say their always data dependant. What matters is how that data evolves and what data theyll be looking at a key component is whats happening in the labor market. Its important to look for signs that the pace of job gains is really starting to slow. We may start to get the first signs of that in tomorrows nonfarm payrolls data another component is whats happening in the industrial sector, which is a bit more trade oriented, exposed to the Global Economy then you have consumers which are going gang busters at the moment strong consumer froet growth in u. S. The last few months a lot of investors and analysts talked up the consumer resilience on the u. S. Side of things. Im wondering is there a specific thing you would look for in terms of the position of the u. S. Consumer that would make you more concerned about an economic downturn . In terms of the incoming data, you would start to see if theres a severe consumer slowdown, you would see it in the Service Sector pmis, in the nonmanufacturing ism surveys, the Monthly Retail sales data would suffer you would look in the personal consumption and the incomes data that we get on a monthly basis thats where you would look. It doesnt look too bad, debt levels are high, Interest Rates are low. The labor market, its in a pretty good place. Unemployment is low. Wage growth starting to pick up. So there doesnt some to be structural headwinds facing the u. S. Consumer. Its more about whats happening overseas, the health of the Global Economy, how thats starting to affect the u. S. Industrial sector. Then you add on top all the problems at boeing, problems in the global car sector. Thats why i think the fed is responding neil, thanks for the analysis do stay with us. Arc low mielormittal says ty expect steel to grow slowly, its blamed on weaker forecasts for the u. S. And brazil. Arcelormittal reported a net loss in the Second Quarter thanks to impairments. Siemens said that weakness in the Industrial Market contributed to a 6 fall in its Third Quarter profit missing expectations they cited heavy severance charges for the drop siemens confirmed its fullyear guidance, it has also warned that auto weakness will continue into 2020. Coming up on the program net profit falls in the Second Quarter at societe generale. Well hear from the ceo next after the break. Were the slowskys. We like drip coffee, layovers 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. Welcome back the London Stock Exchange will buy Financial Data provider refinitiv. It will be an allshare deal worth 27 billion. Lse also reports an 8 rise in earnings for the first half of the year net profit at euro next fell 4 in the quarter. Overall revenue at the Stock Exchange operator rovese 1. 8 on an annual basis. The ceo said hes on the lookout for further acquisition opportunities. In terms of acquisitions, what we want to be is the natural consolidator of single country exchanges in europe, if and when they decide to be part of a group that offers them scale and access to a much larger liquidity pool. We acquired the irish Stock Exchange we acquired oslo borse and open to european considers if an when its available at the right price. Ing posted a better than expected net profit of 1. 4 billion euros in the Second Quarter but warned that future net income will come under pressure from persistently low Interest Rates the dutch lender said it improved its systems that are designed to combat Money Laundering the cfo told cnbc there are headwinds that will negatively impact European Banks. If you look at the overall industry, return on equity, theres pressure and more pressure to come but i think speaking for our own institution at ing, you know, were taking steps to make sure that we can, as much as we can, sustain profitability, sustain return on equity, and make sure we have a healthy capital ratio. Not such a good picture for societe generale, net profit fell 14 in the Second Quarter thanks to extensive restructuring costsful t the french bank had a oneoff charge related to the overhaul but said it is more than a third of the way through the cost cutting plan Julianna Tatelbaum joins us wit more detail about the numbers. As you pointed the picture there of these numbers, not quite a rosy picture when you look at revenues and net profit versus last year the reason the stock is reacting sopositively is the progress they made on capital this was the key concern for the market coming into todays results, whether they would need to do more to raise capital levels they hit their 12 core tier 1 capital ratio target that they set for themselves for 2020. They already met this target by the end of h1. So Good Progress there they also made progress on the cost front they are 35 of the way there towards achieving their 2020 Cost Reduction target. This Restructuring Program theyre embarking on is all part of an effort to improve profitability given the challenges that come with working in a lowrate environment. I had the chance to speak with Philippe Heim the deputy ceo of socgen and asked if they could maintain this 12 ratio moving forward and if hes feeling more pressure to reduce costs further. We see the benefit down the road of further disposals, as weve seen and demonstrated in q1 and q2 where we have a good capital generation organic growth then down the road i think that we are confident that we will follow our road map. How we anticipate the value of the moving parts so down the road we will be above 12 , and we have provided to investors significant analysis cost is another big focus for investors. I see today you achieved 35 of your 1. 6 billion cost savings now. Thats certainly some progress, but the majority of the cost savings are yet to come. Investors and analysts have been skeptical about your ability to execute on this plan earlier this month your chairman conceded that you werent you were too slow to cut jobs in your securities business are you taking more drastic measures now i think that we are hitting our plan as you see in q2 our costs are moving down, not just in france, but in markets we what is important is that we have an execution, we announced the plan in january, we are following that plan and full speed in execution. And progressively we are reaping the fruit of this and we will continue given you have 65 of the way to go, do you feel the pressure from the Investment Community to ramp uppest efforts to cut more . No, what is important is the plan we have a consistent plan. We know where we want to go to in terms of profitability, in terms of organic growth. So everything was pretty organized and synchronized what is important now is to deliver the economy. So as you heard there from the deputy ceo of socgen, Philippe Heim, theyre confident they can maintain this 12 tier 1 capital ratio moving forward and they are roadshowing tomorrow, speaking to investors and outlining in a more detailed way how they plan to generate capital and preserve this level. On costs they are not feeling the pressure to do more, even though they are just about a third of the way there still a lot to come to reach that 2020 target when it comes to cost cavings. Theyre c savings the execution risk was seen as high for socgen. Socgen has been underperforming the European Banking sector. Today we see a jump up in the share price. So a bit of a relief rally in todays share price reaction for socgen but overall bear in mind this is all about expectations, as it always is in results season. So they are seeing revenue and net profit lower versus last year, capital and costs are key for socgen, today were seeing them deliver on both fronts. Thank you very much for all of that detail chinese Manufacturing Activity continued to contract in july but recovered slightly from june thanks to fiscal stimulus policies that beijing introduced the manufacturing pmi increased to 49. 9 for the period and beat expectations but that came in below the key 50 point mark that divides expansion and contraction. The u. S. And china trade delegations agreed to meet in washington in september after the two days of trade talks in shanghai ended with little progress both sides described the talks as constructive, but neither side announced any further agreements the white house said that china reconfirmed its commitments to buy u. S. Farm goods but gave no further details on purchases hong kongs central bank followed the fed and cut rates for the first time in a decade they lowered the benchmark rate by 25 basis points to 2. 5 the yuan hit a 1 1 2 month low as the dollar spiked following that decision, but the pboc stood pat on rates neil shearing has stayed with us watching all of this i wanted to ask, has this been a much more globally focused fed decision when you look at the language i think its certainly the case when you look at the language, not just in the accompanying statement yesterday, the press conference that came afterwards it was framed in terms of were responding to global weakness. Theres a nod and a wink towards whats happening with the trade war, rather than this is something thats fundamentally rooted in concerns about the direction of the u. S. Domestic economy. Its clear to me that the fed is responding at least in large part to whats happening in the Global Economy thats why youre starting to see other Central Banks as well responding to this the ecb stepping up, loosening policies, loosening down the line as well china, you just talked about it. Its a matter of time before they start to loosen and potentially boj doing more if you take a step back and look at financial conditions around the world the last six months, they have not been particularly tight they stayed loose. In part thats been helped, i imagine, by expectations of easing from some of these Central Banks like you mentioned. What kind of event do you think, shock, whatever you want to call it, could trigger a tightening of these Economic Conditions that again could then lead to more aggressive easing i think part of the challenge is that we got ourselves into this feedback loop between financial conditions and what the Central Banks are doing. So one thing that could push financial conditions up is Central Banks not loosening to the same extent that markets are pricing in weve reacheded a position whereby if the Central Banks and the fed dont deliver the easing, financial conditions will tighten and that will force the feds hand thats one thing to keep an eye on the other thing that we shouldnt lose sight of is were ten years into the cycle, Monetary Policy has been held unusually accommodative throughout the period. We still have reasonably large trade imbalances across the world. Asset prices are high globally debt burdens are high globally it wouldnt be a surprise to me if a shock comes out of left field that you cant necessarily see formulating at this stage. It wouldnt be a shock to see financial shock over the next two, three years when you stand back and look at the history of the last few decades of cycles, is it the length of the cycle that has the expectation of cuts in the way and that feedback loop that you talked about, is that why its developed because they has gone on so long without the Major Central Bank and the Federal Reserve making that call until now . Thats partly it. I would caution anyone in the markets thinking that way. Economic cycles dont die of old age. Its not like we get to ten years and the sigh tacycle fallr the u. S. Is at full employment until recently we saw wage growth accelerating. Asset prices are high across the board. Debt levels are creeping up. Theyre the type of things that get investors, particularly the bond markets concerned, thats why were starting to see yield curves flatten and invert. Dont go anywhere stay with us neil shearing staying with us. Throughout t as we head to break, listen to how low Interest Rates could affect banks in the wake of the quarter point cut from the fed we were somewhat expecting that i think at ing were looking how to 1navigate through this Interest Rate environment. Lower Interest Rates are never good for the financial industry, that is also the reason why we have taken the very clear strategic shift a couple years ago to move away from Financial Risks to technical risks so that he with will be less exposed to this Interest Rate question it is challenging, however, for many parts of the Financial Markets and one does have to worry that you get what are called asset bubbles if government Interest Rates are almost zero, that can create bubbles in the valuation of other assets that might be exposed if Interest Rates move back up fwan for right now it seems like all the Central Banks are concentrated on bringing Interest Rates down and keeping the flow of capital and allowing governments to make fiscal investments that improve economic froth memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Think you need to pay prestige prices for better skin results . Try Olay Regenerist. 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And best in a decade barclays profits soar 80 in the first half as they hike its dividend the ceo tells cnbc hes focused on taking Investment Bank returns into double digits our return on equity was 9. 3 so for the first half of the year it was over 9 , 9. 4 its probably the best statutory first half performance that barclays has had in nearly a decade siemens warns of weakness in many of its key markets as they see profits drop in the Third Quarter sending shares sharply lower. Just to bring you some data out of the uk. The manufacturing pmi has come in at 48. 0 that is the joint lowest since february 2013. The reuters poll was at 47. 7 the manufacturing pmi output component was 47 versus 47. 2 back in june thats the lowest since july 2012 and ihs market says some firms report clients are moving supply chains away from uk ahead of brexit at the end of october lets check in on the european markets. The pound is weaker against the dollar overnight that was part of a theme of stronger dollar in london the ftse 100 trading a third of a percent lower in germany, the xetra dax is a quarter of a percent down. The cac 40 in paris, thanks to some earnings numbers, up almost 0. 16 on the day a similar story in milan with the ftse mib lets go back to look at the currencies again you can see the sterling dollar cross is a third of a percent weaker this morning. Of course the Dollar Strengthening overnight on the back of chairman powells comments, but it does seem like the pound remains weak at 1. 21 mark making my holidays more expensive. The euro dollar there also weaker by 0. 3 the dollar stronger by a similar factor against the yen and significantly stronger there against the rand almost 1 higher against that currency lets check in on how u. S. Futures are shaping up after a pretty stormy end to the days trading yesterday. You can see the s p 500, dow jones and nasdaq all looking to open at least flat the s p 500 futures opening slightly lower there the dow jones called up 19. 7 points at this stage the nasdaq also looking to open slightly higher after a significant drop on those markets yesterday afternoon. The bank of england is also set to announce itsrate decision today the central bank is not expected to follow the fed with a rate cut, at least not yet. Investors will be watching to see how governor mark carney handles a possible Nodeal Brexit weve seen those disappointing manufacturing pmi numbers this morning. My colleague, joumanna bercetche, is outside the bank of england not good news looking at the pmi numbers. The lowest since july 2012 when it comes to the output component. What are the challenges going to be for mr. Carney and his colleagues there when they come to a decision later on today interesting setup, isnt it if we can park brexit for one second, i know its difficult, want to talk about the macro growth back drop we know that the underlying momentum of the economy slowed down in the past the bank of england referred to the volatility of the shortterm data. Remember, we had a lot of stockpiling in q1 that boost q1 gdp. Some of that was given back in the Second Quarter since then we have seen heightened tensions when it comes to trade war and clear manufacturing impact across europe, not just the uk. So the Second Quarter gdp is tracking around zero percent now, if not negative that does dent the growth backdrop to a certain extent the labor market is extremely strong in the uk the wage numbers are the strongest since 2008 actually cpi, which is what theyre supposed to be looking at, is in line with the target of 2 . In a nobrexit world, going back to whating about parking that thought, you can understand why theyre sticking with this limited and gradual hiking language. Theyre guiding the market towards potential Interest Rate hikes in the future but the market is pricing in 20 basis points of cut for next year. A big part of that is not only because of the deteriorating ba backdrop but because of brexit weve seen that in the pound the depreciation of the pound has been pronounced. 6. 5 weaker. Also Interest Rate markets as i mentioned are a lot lower and are pricing in cuts. All of that will have an impact on the bank of england when it comes to their overall forecast. We talked about growth but if you think about it, lower sterling and lower Interest Rates should, in theory, pull up higher the Inflation Forecasts over the medium term horizon they still have them at 2. 1 theyre in a tricky spot where they could have to maybe potentially justify in a few hours time how their inflation outlook will be higher on the back of these depreciation currency effects and the lower Interest Rate path at the same time spill out to the market that theyre ready to act in case things get disruptive on october 31st just on that point, the bank of england have in the past said that they could react either way on a Nodeal Brexit. They could hike rates or cut rates. But it sounds as though with the hearing from other members of the committee, saying in the hypothetical scenario of a Nodeal Brexit, the bank would lean towards rate cuts its a question im sure Governor Carney will have to field some answers to at the press conference in a couple hours time people want to know what the bank will do on a Nodeal Brexit if it happens. Thank you very much for breaking that down ahead of the decision we look forward to more commentary from you in the next few hours. Neil is still with us so joumanna tried to park brexit in her words, but she then mentioned at the end the need for a lot of investors to understand what the bank of england will do. This is all about the assumptions, isnt it . For a long time now, mr. Carney has been at pains to say the banks assumptions and models are predicated on an orderly brexit but were not that far away from what looks like it might be a disorderly brexit. How does that factor into the Decision Making . Its incredibly difficult we talked earlier about how the fed is facing this tricky balancing act. I think its ten fold if youre sitting on the mpc of the bank of england one challenge they have today is a communications one the central forecasts in the Inflation Report are predicated based on what the market is pricing in, the market part of Interest Rates the market is increasingly pricing in a Nodeal Brexit. They expect that in part to global weakness and a Nodeal Brexit that the bank of england will be cutting rates. The bank of englands forecast is predicated on some form of deal, a soft brexit, if youd like so theres that tension. They have a Massive Communications challenge theyll factor in the lower part of Interest Rates but at the same time say we expect there to be a brexit deal that should lead to an inflation overshoot in their forecast, how do they explain that how do they explain filling that up with policy timing. Huge, huge, huge challenge for the bank of england today. I think the way you potentially resolve this in the future is they have to Start Talking more about coherent scenarios, nodeal scenarios. Laying them out clearly they have not wanted to go down that route for understandable reasons is it apolitical reasons, they dont want to be seen to be taking a view . Its partly because they dont want to tie their hands either i think they generally are wrestling with this question of if theres no a Nodeal Brexit, how much damage does it did to the supply side of the economy, which Monetary Policy wont do much to deal with that how much is it due to the demand side where Monetary Policy can have an effect theyre wrestling with that question if its doing more damage to the supply side than the demand side, they should loosen policy. They would be crazy not to loosen policy in the event of a Nodeal Brexit one broad question about central bank decisionmaking. The fed faced a lot of criticism in recent months about the idea of it being data dependent and faced criticism about whether it should be cutting rates. And from what ive read and heard over the last 12 hours or so sh so, people seem relatively happy with the argument made by the fed about being data dependant and about why thats promulgated their view and decision. Is that something you think is comparable in the uk with the bank of england . Is it a very different set of scenarios in terms of what analysts and what investors expect from the bank of england in terms of data is brexit the real nightmare for them on that front thats the challenge. In any normal sense of the world, the markets would be content to hear the bank of england say well be data dependant. Were never going to precommit well wait to see what the data is showing us. But clearly brexit cuts across all of that. I think increasingly well hear we want to get some clarity about how will Monetary Policy respond . Dont forget that the backdrop to all of this is almost whatever happens, whether its Nodeal Brexit, whether its some form of deal, whether its general election, the fiscal policy will be loosening in the uk over the next 12 months, how will the bank of england respond to that, too good question neil, thank you. Well leave it there thank you for joining us make sure you join us later today for decision time. Our special program focused on the bank of englands decision that starts at 11 55 british time. The government in the uk says they will inject 2. 1 billion pounds into Nodeal Brexit planning. The extra funds announced by the newly apoepointed chancellor wi be spent on an Advertising Campaign aimed at raising public awareness. The Opposition Labor Party attacked the move and said the government should have ruled out a nodeal altogether and spent the machine on schools and hospitals. Standard charter posted a 3 rise in first half pretax profit the return on tangible equity improved to 8. 4 they said they remain confident they can deliver rote of over 10 by 2021. They highlighted the u. S. china trade war as potential risks and warned that tensions between the two large economies are affecting sentiment. Barclays reported a rise in first half pretax profits. Its the best result for the period in a decade the british lender boosted by reduced costs and a Strong Performance in its Investment Banking unit on the fixed income and equity sides jes staley said the company is prepared to any outcome from the expressway negotiations. The bank reorganized itself, so were fully prepared for any eventuality related to brexit. We set up what will be one of the largest banks in ireland we relicensed all of our branches as branches of the bank in ireland we migrated many of our european clients to our European Bank now. So that is all set up and ready to go and it has been for a number of months secondly we did take a provision in the Fourth Quarter of last year of about 150 Million Pounds in front of the possibility of a hard brexit. Thirdly and most importantly, we are doing a lot to make sure our Small Business clients across the uk in corporates are prepared as best as they can be for brexit they know what barclays can do to help them in case there is a har brex hard brexit. Someone who knows about brexit is is alessandro. How important is it that the bank and banks generally in the uk are prepping for a Nodeal Brexit and have less of that stuff to worry about sure. Barclays reported a net income of 1 billion with tangible equity of 9 this is in line with the target the bank is foreseeing for the full year. So thats pretty important its credit positive the fact that the banks are not are not recording impairments or costs related to litigation or conduct cost is positive it allows banks to deliver onprofitability. That profitability has been masked, youre saying, but some of these impairmens in the havent pasrecent past. Thats correct. Looking at the revenues that were flat, the cost increases, so if a bank wants to achieve a higher level of profitability, the bank is targeting a return on tangible equity of 10 for 2020 t will have to focus on cutting costs. When you look at the bank in the realm in the way its balancing now its commercial Banking Branch with the Investment Banking branch, have they found a good balance . If we look at the contribution of Capital Market abctivities over total revenues, thats 40 for barclays its slightly decreased but not significantly. Other banks have decreased more substantially this kind of market activity. Looking at ubs and deutsche is on a path of further reducing these activities barclays is sort of still focusing on being a big player it wants to be among the top five players globally. Its fighting against the u. S. Players. Thats a challenge so far they delivered but the u. S. Players have higher liquidity pool, higher level of capital and also an economy which is in better shape than that of the uk and europe. Do you think these Quarterly Earnings will quiet the critical voices of jes staley and his strategy if you look at the first and Second Quarter of this year, they have been in line with u. S. Banks. Fixed incomes were up, equity was not too bad. Now, going forward, overall we are expecting a subdued environment in Capital Markets were looking at overall growth in revenues for the sector of 1 so the focus will be on cutting costs rather than increasing revenue revenues barclays warned this morning about Brexit Issues and trade. How important is brexit for uk banks and how much of a problem is trade for global banks . Our ratings on nobrex it we expect some moderate impacts on uk banks this will come in the form of lower revenues there will be some higher costs moving clients out of the uk and into europe and slightly higher cost of risk in terms of trade for big banks like hsbc, how big of problem is that for them hsbc is exposed to trade. 80 of revenues are coming from asia and potential tensions between the u. S. And china might affect the business. Overall the profitability of hsbc has been stable thank you very much the United States imposed sanctions on irans top diplomat and a key arc tekhitect of the Nuclear Deal Zarif said the move had no effect on him or his family. He tweeted is the truth really that painful thank you for considering me such a huge threat to your agenda. Coming up, intels ceo talks about the trade war and its impact on the Technology Environment in china stay with us 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. Qualcomms Third Quarter revenue fell short of expectations, that sent shares as much as 5 lower in trading the gings for tuidance for the quarter disappointed as its outlook was damped been Huawei Technologies the qualcomm ceo noted the strong gains they had in the domestic markets but said they should benefit from huaweis shift to 5g by next year intel says it is applying for licenses from the u. S. Government that would allow it to sell components to huawei the white house said they will ease restrictions on company that allow it to do business with the chinese tech giant so long as the actions do not infringe on National Security. The ceo spoke to Arjun Kharpal who joins us live from yokohama, japan. Huawei still on this u. S. Blacklist, but u. S. Firms are requiring a license. Its important the concern about National Security. Thats caused some confusionrs a National Security risk and what isnt. The ceo said some have asked for licenses lets listen to what he to say if you look at the lions share of what we ship into china generally but also into huawei, who is a Large Customer of ours, its general purpose comput so general purpose product that we ship to all of our other Cloud Service providers. That general purpose compute we dont believe is what should be worrisome if the quest is to protect National Security. I think in the licensing, what the administration is looking for is submit licenses our intention was a broad brush, but ultimately we wanted the industry to submit licenses. So we have the opportunity to determine what we can and what we should not ship there is still uncertainty around this i asked bob swan if he had timelines on when he might get a license. He no clarity on that. Huawei is creating a headache for the whole of the Semiconductor Industry i want to bring in those qualcomm results i was listening to the Earnings Call earlier today, and the ceo referenced huawei throughout the call he was saying huaweis gain in china hurt them. He was saying 62 of huaweis shipments were in china the last quarter. Huawei uses its own modem for the majority of its smartphones. It gets very little from qualcomm in comparison, huaweis rivals saw a decline. So that equals bad news for qualcomm thats what was meant when they talked about the gains seen by huawei so huawei is the black cloud hanging over the u. S. Xhu Semiconductor Industry. Round two of the democratic debates took place in detroit overnight. Joe biden faced heavy scrutiny reporter there was an uneasy tension on the stage all night tonight democrats expect some engagement here. Reporter from the start the candidates were engaged and aggressive much of the fire focused on the frontrunner i dont hear an answer from the Vice President you want to be president of the United States, you need to be able to answer the tough questions. Reporter former Vice President joe biden pushed back reminding the candidates and crowd of his experience in the white house. I find it fascinating everybody is talking about how terrible i am on these issues. Barack obama knew exactly who i was, he chose me and he said it was the best decision he made. Reporter now its the voters making their decision, with more than 20 democrats hopeful it will be them that number could drop significantly before the next debate with stepped up criteria, only eight of the current candidates would qualify for the september showdown jay gray, nbc news, detroit. Lets check out how futures are shaping up ahead of the market open in new york. The s p 500 slightly higher according to those numbers dow jones called up nearly 40 points nasdaq nine points thats it for todays show in london im willem marx. Worldwide exchange is coming up in a few moments time did you know that feeling sluggish or weighed down could be signs that your digestive system isnt working at its best . Taking metamucil every day can help. Metamucil supports your daily Digestive Health using a special plantbased fiber called psyllium. Psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. Metamucils gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. So, start feeling lighter and more energetic by taking metamucil every day. Heres your top five at 5 00 this is what it sounds like when hawks fly. How the fed spooked the market with just two words the words and why they shocked everybody ahead. Stocks dropping yesterday, the most since may on the news the question is where do we go from here. The busiest day of earnings season more than 50 Companies Report their earnings today between earnings and the fed, invests may be at a cross roads. A developing story in texas. Crews battling another fire at a u. S. Oil and chemical refinery its t