Forecasts. The top lines are up. Revenues up 4 if you look at the activities. Despite the impact iag luke to raise 3 billion euros and klm unveils an operating loss sending both shares into the red. Six years of growth wiped out in spain as gdp drops in the Second Quarter but the French Economy shrinks less than expected down 15. 8 . Happy friday welcome to street signs. Weve got a lot of earnings to get to lets talk gdp first weve heard from france and spain. Now numbers from italy preliminary q 2 gdp slank quarter on quarter less expected a value. Theyve advised their q 1 estimate of 5. 4 contraction quarter on quarter and 5. 4 year on year. Slightly worse than anticipated. Q 1 marginally worse but q 2 better than expecting. An unprecedented slump for italy but the takeaway better than analysts had feared. Not quite as grim as the market had been bracing for looking at the euro gaining ground currently trades around 118. 77 we have the france and spain numbers. Spains economy shrunk 18. 5 lockdowns and travel restrictions weighed on the Tourism Industry the fall also raised six years of growth. The French Economy slank 15. 8 as Strict Lockdown measures hit strict household measures and trade as it slipped to a stricter covid response. Our captain and chief economist. Thank you for being with us this morning. What do you make of these gdp numbers. They are some what backwards looking and more forward indicators paint that interesting picture. Whats your take this morning. What is the look at what was pencilled in there is not too much information there. When you look at the mobility data for instance, that is trending up slightly i think there is quite a bit of momentum that should carry over to q 3 in europe so far, it is looking okay we have the uk option on the eurozone suggesting in the last few weeks when people came back to work. That will be driving momentum in the next quarter and how many inactives does that bring in there is a long way to grow. That will look okay for the mobility future. What gives you the confidence that this is the beginning of a longer trend and momentum will continue now where they are. So one of the mobility data and what you are seeing if you look at the park mobility. At france, running at 250 of normal doesnt meanying. It is somewhere and now you are seeing work place mobility go down the increments are getting smaller and smaller, you can no longer map that in the trade growth we are looking at it less and less and going back to the old models that is quite different from the soft mobility data the next couple of months will be pretty murky. Mobility data is not useful right now because it is not summer the pmi data is not useful because that is effectively capturing the snap back from the lockdowns. You need that to settle down in the next few months or so. We are in this vacuum. There is a disproportionate amount of attention looking at the specific data. All the focus now whatever we see in europe could be a different status looking more closely at europe and the Recovery Fund that can lift the likes of spain and italy that could lift the deep contractions out and when do you expect that recovery to begin that bulk is much later number one, that amount is not that large 4 spread over 6 or 7 years and that is not going to move the needle so i dont think this is a big part of the recovery story we have a third of people on temporary job schemes. They dont know how many will come back to work. What is the speed on which you taper the support and how much damage do you do in the process. In the uk, you still have 43 of the entire accommodation and Hotel Industry on furl owe and more than 50 of arts and entertainment. Thats the big question mark, we are going to find out the next three or four months, who is viable that will determine recovery it is not the Recovery Fund type of stimulus. I actually think the national stimulus is a indicator of that. Sobering view lets get a check on markets. Theyve been trading just over an hour. Final trade for just over the month. We saw a substantial selloff the German Market losing 3. 5 wednesday. The worst performance since midjune we are seeing a bit of a bounce back, we are not recovering. Digesting these fresh gdp numbers coming through were looking at the eurozone number we are suggesting earnings and reacting to the tech earnings after hours in the United States lets look at the split in europe the majority trading in the green. Leading the way, we have technology up 2. 5 following the after hours trade. Real estate, incidences and banks. Banking sector gaining about 2. 1 on the down side, autos down about. 6 . Worst is media, travel and leisure and food and bev looking at tech stocks facebook 5. 8 higher, amazon, apple, alphabet. Alphabet, the lagarde relative to the funds the burnout we saw from all four of these last night. Revenues have helped bnp prompting the french lender to maintain its outlook for 2020. More on these numbers. The market like what they see. Numbers up nearly 5 what is so encouraging about this update. Better than expected results from up 4 to 11. 6 billion euros. One of the good surprises was the cet ratio of 4. 1 . That performance driven by the number in cib. Revenue up 33 you remember french banks suffered particularly. They said there is a gradual recovery like we have seen in other european banks doing particularly well. I spoke with the cfo and asked him how much of this momentum he could see going into the second half of the year, take a listen. If you look at the solid results. This is not just on the back of the wave we are talking. This is a platform to serve corporate and institutions we have built and honed over the last couple of years so having the right people and products thats what we have. When we have the pick up, that platform with the strength of the bank has really allowed it to serve that is what we have done. Even if the volumes might be a tapering off in the rest of the year, the market share that is stepped up that is what we would see. That improvement at 8 when did you return on the target at some moment of time we will bet better and on some we will be lower looking at the lockdowns and the relatives around it is confirming over the side of 10 . In q 1, you said profit would be down 15 to 20 are you still looking at the same range . We took into account many scenarios. That is what we said, if you look at the scenario, which are a gradual tapering up of the economy. It would be another nationwide lockdown there could be local lockdowns but overall, there could be a takeoff of the economy bottom line between 10 and 20 lower very sustain last year we look at the lower in the first half in particular, you see that that is in line with its guidance and we stick to it. That is the cfo there confirming the target for the 2020 outlook down 15 to 20 . Another number to give you, the cost of risk at 4. 4 billion euros given the back drop revenue was down better than expected there on the crisis Financial Services revenue better than expected we see the markets were coming and results sending shares up 4. 5 at the top of the cac thank you gnat west group has posted a 770 Million Pound loss as loan provisions jumped ahead. The newly rebranded lender expects impairment charges to be in the range of 4. 5 Million Pounds it is always very disappointing to report a loss given the Current Situation we find ourselves in, it is probably not completely surprising 2. 1 billion in the quarter 2. 9 billion in the half. What gives me comfort is that profitability is strong. 17. 2 , probably one of the strongest capital positions in all of europe. Giving us confidence to face into the situation an impairment number bigger than expected i think the big question is around what the second half of the year will look like youve recorded 2. 9 billion, what do you expect for the second half of the year . To say well take the charge for the year thats an additional amount and significant numbers he the number would move around what weve tried to do is say lets look at what we put on for today. 93 are on customers continuing to pay although there on difficulty, they are continuing to make payments the second half is where those customers move to where we struggle and then stage three well recognize the defaults looking at what the economics do over the next couple of months and that could have an impact. Lets talk about restructuring efforts. To what extent have they hindered your cost cutting there. I think it has been really important to do the right thing and not be put too far off course our Cost Reduction had been at half we can see as we move forward there is really good traction coming one of the things we do is the exit of the london property, which we accelerated in the plan it is really interesting to see where covid would take us on that efficiency. Also asking about the surge of consumers weve increased by 39 Million Pounds what is interesting is the amount of people using this where they are not spending this much and would manage and reset their debts. Also people know there is possibility of difficult times coming and they are doing a shoring up of that at the moment, we are still seeing a fair moment of growth as well. We expect it to continue a little longer. Still ahead, two of europes Biggest Airlines as the pandemic continues to erode passenger reft the break look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back to street signs. Nokia has a surprise jump in what they call the lowmargin businesses the new ceo prepares to join the company this weekend elsewhere on the earnings front, iag has reported an operating loss unveilinga new Capital Raising plan giving a bleakout look saying it does not expect traffic to recover to prepandemic levels until at least 2023. Air france klm has posted a loss as flights have slashed plans. Plunging 83 with the carrier to run 45 of last year in capacity rising to 65 in the final quarter. Announcing 1,500 new job cuts. Swiss re has posted a loss the Reinsurance Group posted 2. 5 billion in claims. Expects this to cover the majority, quote, of ultimate covid losses the cfo says he believes the worst is over for the developing markets and that there on the road to recovery caller the pandemic has peaked in the developing countries across the world we have included a reserve not only in the losses reported to us but what will be reported thats why the number ends up being as large as it is. Not to say there wont be new losses coming through in q 3 and 4 but we are fairly confident with what we know now that the majority of losses have already been booked. Loreal has seen a loss the group said revenues grew 30 in china where lockdown measures were eased slightly down from 2019. Well be speaking to the ceo about the companys earnings at 11 30 cet. Essiloruxotica known for brands like ray band and oakley saw revenue slump to 2. 5 Million Euros and slumped to just 96 Million Euros. And saintgobain the French Building group saw a drop in sales. The ceo tells us hes cautious for the year ahead the Third Quarter is good, then i think there is a moment of uncertainty its not clear yet whether the building sides and the renovation work we are doing there is an element of catch up and whether are new orders im a bit cautious for a second. Then midterm, i am very optimistic with the renovation span by the government the Stock Exchange looks at plans to sell as the group looks to ease the takeover of refinitiv reporting an 8 up tick and the deal remains uncertain. Coming up, President Trump suggests delaying the election prompting both democrats and republicans to push back welcome back to street signs. These are your headlines the biggest tech rallies adding over 200 million in value on a block buster day of earnings bnp paribas report a trade in revenues helping beat the forecast the top line is up. Revenues are up 4 if you look at activities, they capture wealth despite the major impact of lockdown iag looks to raise 3 billion euros. Air france unveil an operating loss in the Second Quarter sending both shares into the red. Six years of growth is wiped out in spain as gdp drops. France and italy shrink less than expected as economies across europe battle to fully reopen markets open on the final trading day of the month of july when the stoxx 600 lost more than 2 . So steep losses yesterday. We have not reclaimed all of the ground lost. The dax up 8 and the german benchmark and the ftse mib leading higher more than 1 higher the italian market also underperformed yesterday, the ftse 100 held up best and why it is lagging a little bit this morning. Lets look at 4 x markets. The pound trading further against the dollar above the 1. 31 mark. The green back 118. 64. Looking at futures, u. S. Tech earnings we are looking at green across the board. All three posed for a stronger start today. Yet, a slightly mixed session at the nasdaq bucking trends higher a slew of data came through painting a very grim picture of the u. S. Economy in the Second Quarter. Now investors looking to what is to expect on the second half of the year President Trump has taken to twitter to make a climb that the november election should be pushed back. President trump for the first time is suggesting the november election just 96 days away be postponed. Tweeting with universal mailin voting 020 will be the most inaccurate and fraudulent in history. It will be a great embarrassment to the u. S i dont want to delay i want to have the election. I also dont want to wait three months and find out the ballots are all missing and the election doesnt mean anything. The president has no power. It is up to congress to set the date with democrats controlling the house, that will not happen. There is also no evidence of widespread voter fraud. A notion dismissed by top republicans. Well cope with whatever the issue is and have the election on november 3 as scheduled no election has ever been delayed. Democrats are accusing President Trump of trying to distract from the economy having the worst drop ever. Can you give a direct answer, you will accept the election i have to see one of the president s campaign allies, herman cane lost his battle with coronavirus. The 74yearold was hospitalized after attending the rally in tulsa. It is unclear where he contracted the virus President Trump remembering him as a powerful voice of freedom edward joins us now any chance this happens. He was met with immediate option suggesting no chance of delay. What do you think . It is so interesting. Right after the bad Economic News of decreasing gdp by 35 giving the idea it seems like it is like. Hes come out imposing and i think well try to get edward back shortly the president of American Institute of Economic Research an hour and a half in where we trade where wall street is open. The s p and the dow. We have edward back. Great to have you back i was just asking how you view the president does this come amid the strain hes been dealing with absolutely. Four months and more and more Large Companies are going under. The ripple effects are huge. We can see the best economy in recent history tanking that is showing up in the poles and election betting odds. That has been a clear favorite and is plummeting. He has been claiming for the credit in the economy has been unravelled by the policies and lockdowns. Uncertainty. Nobody knows if people will get back to business corporations have been shuttering Certain Service sectors, there has been a decrease of 90 of economic activity. That is putting a strain on the average person and small and Large Businesses hes losing a lot of support among all groups you say among all groups, does that include core supporters do they feel affected and look negatively upon the way economy isrolling out. Even some of his biggest supporters peter teal saying hes fed up with the lockdown. Others saying we can deal with crazy social policies. At least hes been good on tax cuts and deregulation. At this point, there is so much uncertainty on the economy are we ever going to get back open it has gone from this twoweek delay to an indefinite delay and now hes proposing a delay to the election a lot of people at the margin are losing faith in his leadership lets look at his option, joe biden. How important is it who joe biden chooses as his running mate i think a lot of people are worried that biden might be heavy handed on the regulation side lets be in favor of the economy. We are watching the developments in further aid could this be a game changer to deliver substantial more stimulus in small to medium size businesses that you say are leaving . I dont see the stimulus package really having the impact many advocates have. It is coming at the expense of taxpayers, which is the average person, also corporations. We are just basically giving money to individuals from individuals, the great economist calls that the broken window fallacy. Any time you take money from the private sector, it has got to be spent by the taxpayer. We are going more and more into debt and eventually it is us who has to pay this back the idea that the stimulus will affect things much, i dont see it well leave it there. President , American InstituteResearch Still ahead, bumper earnings revealed by the pandemic more after the break look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Lets take a look where we stand. The s p 500 up 4. 7 for the month of july. We saw a retreat and we are moving higher for the month of july the s p starting out a little slower. Still up nearly 2 on the course of the month the real story has been tech the rally continuing in the month of july. Lets look at nasdaq the outperforming broader u. S. Market up 5. 3 yesterday in after hours trade after they reported block buster earnings first, let me show you gold and what weve seen in the gold price, a surge the number of cases in the u. S. Continue to rise and weighing what the stimulus means for the outlook. Gold about. 8 higher. Finally, the dollar, another big story. Watching the demise of the dollar and depreciation weve seen seeing a steady move lower for the month of july and down 4. 7 for the month. Shares in apple hit a fresh record high in extended trade after the Group Reported the best revenues on record. Increasing despite disruptions and store closures expecting iphone supplies to be delayed a few weeks next quarter. We have more apple reporting but before getting to those results apples board has approved a four for one stock split why now . To make the stock more accessible to more investors results are better than expected 2. 58 cents. Expectations up 11 . Street closer to 52. 3 billion Gross Margins 52 in the quarter. Iphone revenues against expectations services up 13. 2 billion. Arables, 6. 5 billion. Mac and ipad revenue 7. 1 billion ipad 6. 2 billion. Apple is not providing guidance at the time for q 4. I had a chance to speak with tim cook about the quarter we did bring you those comments. Cook saying iphone 11 is the most popular we had a great launch of the se in the First Quarter very strong and we had an up tick on the year over year basis on phone switchers we were happy to see the iphone se helping with that. We talked about the work from home trend cook saying it is boosting mac and ipad we see both of those likely picking up a share and being a tool of choice we won several school bids for ipads. You can see the strength of mac mus we combine those and they are coming together at the same time they are producing results i asked about business in china. Cook telling us they did grow 2 in real dollars. In a big increase before the shutdowns took place facebook shares popped after the social media giant easily beat expectations growing at the slowest rate the group said now has 3 billion users. Shares rallied the tech giant posted huge profit and double digit Revenue Growth as the pandemic fuelled online shopping. Net profit hit a. 2 billion. Revenue soared 40 to 88. 9 billion. Amazon announced it would spend 2 billion on additional coronavirus measures amid criticism the company hasnt done enough to protect its workers. Alphabet had its first revenue decline in history the ceo said there were signs of stabilization after the Parent Company reported a plunge in ad sales in march Cloud Business missed expectations despite rising 43 . Also announcing a 28 billion buy back of share volume lets get to u. S. Equities portfolio manager. So much to get to. Straight off the bat, what was the key take away for you from these tech earnings that came through last night caller thank you for having me all the four Tech Companies are much better than expected especially apple and amazon. They beat the highest end of expectations and the guidance for the expectation. Provided in the trend in terms of the migration and e commerce option i think it was way little to knit pick this quarter if we look at amazon in detail jeff bezos warned us if you are a share holder in amazon, you may want to take a seat. Actually, profits doubled. The strength did flow through to profits. What does that tell us about the longterm profitability potential at amazon. One thing that is clear amazon is not refrained from scaling and were at 15 that scaling the engagement from members that continue to show up in the margins. There was a 4 billion covid cost and operating margins come in at 5. 8 that is going to show up in the margins as they are built in there are touch points in the delivery that has gone up 50 . All of that investment as they throw in to the company. Overall, they benefit greatly as they increase to prime members looking at the alphabet shares and the most muted action if you look at the cloud back log, it looks strong cloud is an important part the Current Quarter was about 3 billion. Between amazon, microsoft and google cloud aws and google, it is about 70 plus in the market now google is growing very fast but the numbers still lowest compared to the overall top line so, yes, the battle is strong in terms of the overall impact to the top line and margins it is more muted than search one thing that has been weigh e ing on them for facebook and alphabet that travel search has been a big part of search ads. That clearly took a big hit during the pandemic and lockdowns. The other thing is banner tiesing in march that has been quite well as mentioned. People are paying more attention to the head winds than what comes back the question is how long do you need to hold these companies. How far outdo you have to look to justify these valuations. Theyve returned about 50 compared to the rest of the companies in the s p 500 that have barely nudged over the same time frame. The only interested thing i can point to in the growth one of the question is, is the demand sustainable it was very clear in the demand for meeting in the shift of cloud. Enterprise moving faster with cloud. If you exclude in the mix, it would move to a hide brid where they are looking back amit, we are going to have to leave it there thank you for joining us thats it for todays show and the month of july for me im Julianna TatelbaumWorldwide Exchange is up next. It is 5 00 at cnbc 2 00 in california and here are your top five 5 big techs big beat. And no deal in sight Unemployment Benefits for millions are set to expire another retailer reportedly ready to file for chapter 11 a