Tiff movement for 2021 we also see clearly the paces coming in for the third and Fourth Quarter in reverse, the volkswagen numbers fall Retail Therapy shares in the dutch super market giant jump to the top after earnings rise almost 80 in the Second Quarter on the lockdown spending the death toll rises after a massive explosion. President trump suggesting the blast could have been intentional. Our prayers go out to all the families the United States stands with the people of lebanon and well be there to help it looks like a terrible attack. Lets kick off the show with fresh data just crossing the wires. This is the final composite pmi that has come in at 54. 9 that is a touch better than 54. 8, a little color for you on the numbers for july Services Come in at 54. 7 that was a little light. The suppressing strength has come from the Manufacturing Sector which we got earlier this week in terms of the commentary which provides this data, Business Activity rebounded to grow at a rate not exceeded in over two years. France and germany showed especially strong gains as covid19 measures continue to be relaxed. Encouraging economy there and optimism improved. Cutting head count sharply the employment picture looks still uncertain. That would be one of the weaker points in the data you that had come through overall, we are looking at the expansion for both services and Manufacturing Sectors. Youve got the euro trading up about 20 basis points above the 118 mark lets look at how the markets are trading about an hour into the session. We ended the day in flat territory. Today, we are off to a stronger start. The majority of stocks are trading higher the main benchmark up 90 basis points the overall message seems to be that the numbers are better than analysts feared and showing some signs of strength. In line with the recovery, that strength is coming through in the corporate numbers. That is providing a bit of a boost to the sentiment lets take a look at the markets. We have evenly spread gains. The dax up more than 10 the ftse mib outperformed yet, up slightly. A broad based rally. Interesting this comes alongside further rally there. Green every sector, every region and currency markets as well lets look at the sectors. Weve got earnings across multiple sectors we can get a look for you at the sectors but well see as an overall comment, every sector is trading higher basis resources, the most cyclical of the front. Travel and leisure up about 2 Massive Gains for easy jet and aig. Real Estate Holding up bp leading the way higher there. That Company Making big changes, cutting the dividend and investing more in the transition on the down side, more defensive part of the market but still every sector trading higher. We had a number of car earnings coming through a bit of data hitting the wires. Uk new car sales had risen by an annual rate of 11. 3 interesting to see that. We are coming off of a pull back in terms of the auto market. We are still looking at a pretty dire outlook for global car sales. Thats the number for the uk car sales in july. They rose by 11. 3 lets get to the earnings today, bmw posted a Second Quarter loss the luxury carmaker also warned it would report sales significantly lower and the company lowered its outlook. Continental also said it suggests operating profit and Free Cash Flow to be lower and Vehicle Production is predicted to fall by up to 20 in the energy space, bp ceo defends the decision reporting a 6. 7 billion loss. Bp remains an attractive investment proposition the decision around the dividend is rooted deeply in strategy the intend is to move from being an International Oil company to providing solutions for customers. We wanted to do that in a range of outcomes constantly and contin continuously we reset that decision to a level that is affordable and resilient that would allow us to lean in and vest to that decision thats what we are trying to do it is still a relatively attractive dividend put on top of that, the commitment to do buy backs with 60 at least of surplus free cash and i think you have a very compelling proposition. Dutch retailer ahold has posted an increase in sales and raised profit outlook. Speaking to cnbc earlier, cfo detailed the companys plans for the rest of the year to help deal with the crisis caller when we look at our business Going Forward, the real focus is looking at what are the costs associated first around incremental labor and sick leave, safety and security, looking at associate rewards and charitable giving. Accor is looking at cutting 1,000 jobs europes Largest Hotel group saw dividends fall part of the new 200 million cost cutting plan. It will look to simplify to meet new targets. Lets bring in our guest thank you for joining us a busy day putting new numbers into their models it seems the takeaway message. Things were not as bad as things feared and q 3 is trending higher is this something to celebrate, in your view there is no doubt, companies have done a remarkable job throughout this crisis when we look at these companies it is a great point it feels like with the labor market support having some control. The macro enviern mgt are still uncertain. This is something the scenario should be putting their money. When you look at the different Asset Classes, you still find these are one of the most appealing Asset Classes across the board together with real estate and in the alternative space. This is really due to the fact that of this Free Cash Flow generation and in the central bank, theyve done a remarkable job. Ensuring that the driver in the economy have shared the financial crisis that could have happened in the end of q1. They make sure that part of the market was sheltered and is able. I know your team has done a lot of work. I know a lot of u. S. Banks have helped shield and banks have set aside Loan Loss Provisions to deal with the closeout in the quarter to come. What do you think of the level you have seen. How well prepared are these banks for the future impact of the pandemic the Banking Sector is doing the right thing so far the level of uncertainty is far too high we know every day about some countries Getting Better some seem to be having a second wave banks are cautious with their approach important point, this is not 2008, 2009 then the Banking Sector was shorter. After that, they needed to rebuild the Balance Sheet. This time around, we did the analysis on the back of the work that fed did on the stress test. They use a lot of letters in the alphabet u, w, v. They found overall, the Banking Sector need to be prudent. Having said that, even in the worst case scenario. The Banking Sector doesnt need the new level of capital that is key. Back in europe, we have seen a bit of a bid come together still, one of the most unloved portions of the market how do you position the banks at this stage this is an interesting story about equities in the moment equities in the states, they are up for the year in many areas, they see the nasdaq. They are really driven by fuel sectors. Where we find value is really in those sectors. We believe the pandemic will be over sometime in 2021. That is clearly the part of the market is the most attractive thing. You need to be patient these talks dont need these stories about finding these is inevitable. The Balance Sheet is quite strong then it becomes just sort of being able to weather the storm. Companies will be able to weather because the value is strong this is where the value is at the moment i guess the challenge will be where is the challenge going to come from when inflation seems so far off and you are not getting returns in bond markets. So growth remains attractive what is to stop that trade from continuing from here where investors prefer Growth Stocks over value the value of investors of risk versus value. You are in the situation where we are finding plenty of value in the growth sectors. That was one of the ones in value considerations and only the price to book which they are using or the dividend the story is, now once you start to look at the Free Cash Flow yields of the sector is unfortunately not attractive as it used to be. On this point, it is difficult to time this you as an investor have to decide you want to be early or late this is a time to start thinking seriously about that switch then in the long term, three months will be nothing. This is the time to think about it no doubt about it. Thank you for sharing your thoughts with us coming up, commerzbank warns of a fullyear loss after a dire Second Quarter the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Andputs its customersity a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back allianz has posted a Second Quarter fall the german operator refrained from giving a full yearo outlook the cfo said while there were no surprises in the Second Quarter result, the future is still unknown. We are confident we have a good understanding of what is happening but there is still a lot of uncertainty moving forward. You can see the news coming from australia. In the United States, the situation is not under control you can see outbreaks here and there. From that point of view, the uncertainty is more regarding future development we have a good understanding of the situation. In the Second Quarter, there was no surprises our profit for the Second Quarter was even a little bit ahead of the consensus theyve beaten Second Quarter estimates on the top and bottom line they got a surge in boost from e commerce as they shopped on line maintaining guidance for the full year. Speaking to cnbc, the cfo said she was unsure whether the rise would continue it is too early to tell whether this will be a sustainable acceleration there are good arguments for that people have newly discovered shopping on the internet especially part of the population that didnt shop before smaller shops have now discovered how useful an online complimentary can be there are good arguments of the structure. In terms of hard facts, it is too early to say for sure. Posting a net loss after Second Quarter profit fell almost 30 on the year annetta joins us now with these numbers. They expect to post a net loss but if you look under the hood, there are some bright spots. We saw a growth in customers and security lone volumes. Flush it out for us. The Second Quarter actually is better than expected. They also benefitted from a surge in securities trading. This quarter looks pretty much under control. They manage to catch new customers. That is something they are doing every quarter but also offering cash ream ypremium. The question is how much money they are offering. That is a metric they are really revealing. Having said that, thats all about the outlook for commerzbank. They call it risk result it has been a lot higher and not necessarily because of the pandemic but also because they have been one of the banks lending to wire card this write down was actually higher than the pandemic risk provision they had taken in the Second Quarter it is all about the outlook and new strategy which we are still waiting to hear take a listen. Our assumptions assume there will be u shapes meaning we will see a recovery coming now in the Third Quarter. That is dependent now on how the numbers are developing with respect to the pandemic. Well resume a u shape and there for, we also assume well see positive numbers for 2021 we also assume there will be some paces coming in for the second and fourth guarder and why we look to adjust because of that is that why you are expecting a full loss for that year or does that have to do only with wire card . Theyll have further aspirations to the positive income coming to play. We have clearly said we want to book for the restructuring charges for q 2, q 4 and the outlook is negative for the net income so commerzbank will be stepping up the cost production efforts. For that strategy, we need to wait for a new ceo they have a new chairman for the Advisory Board they will be looking for a new ceo in the next couple of weeks or months. The sooner or better now back to you. Thank you for bringing us the interview and numbers. Coming up, devastation in beirut as over 100 are killed following a massive explosion that rocked the lebanese capitol. Well bring you that story next. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines commerzbank warns it will report a net loss for 2020 after Second Quarter income sinks almost 30 . But shares rally with cfo telling cnbc her predictions leading to a u shape and there for we also assume well see positive numbers for 2021. And we expect well see some cases coming in for the Fourth Quarter. Bmw shares drop and warn of a profit decline Business Activity returns to growth the earnings come in at the highest mark for the year. The death toll rises as an explosion rocks the beirut capitol. President trump suggests the blast could have been intentional. Our prayers go out to all the victims and vtheir families the United States stands ready to assist lebanon. We have a very Good Relationship it looks like a terrible attack. We have more data for you. The final pmi data the composite pmi has come in at 57 even. Down from 57. 1 the final services pmi has come in at 56. 1 light of the 56. 6 that the flash suggested that is pretty much in line with what weve seen in the euro area we saw earlier the big question how much of this is technical and how sustainable is this strength the commentary suggests that this does set us up well the uk numbers suggest a similar trajectory youve got sterling trading to just about the 130 mark. Lets widen out and look at the market worth about 1 of the gains. We are looking at about half a percentage investors looking at half of the rally. Ftse 100 about the same. Italy outperformed and lagging up about 20 basis points lets take a look at u. S. Futures and what we are expecting in a wall street open. The dow looking at a 100point rise if these levels hold. Nasdaq and s p looking at a firm start. The nasdaq hitting a fresh record close yet again looking at the unemployment report looking at the big nonfarm payrolls due out next friday brent trading up about 45 basis points and up just under 42 a barrel the death toll in beirut has risen over 100 with thousands injured. More victims are still under the rubble according to the lebanese red cross. They have said the explosion came from a Warehouse Holding highly explosive material. No word on what caused the explosion. Lets get to hadley gamble lebanon was already dealing with a horrible crisis. Talk us through the repercussions there. Caller you are right it couldnt have come at a worst time most of the folks ive been speaking to seem to just be resigned to a feeling of hopelessness as a result of what weve seen essentially, these explosions took out the entire port area. This country imports over 80 of their food and they were already struggling to pay for that following the u. S. Dollar upwards of 80 the central bank and other members of this government thats been in place and in constant talks saying multiple times, the country has to stem some of the bleeding listen to what the Prime Minister had to said yesterday following the blast. Translator what happened today will not pass without accountability those responsible will pay the praise this is a promise for the marters and injured. This is a factual statement. The depot that existed since 2014 caller s that the Prime Minister essentially saying there is more to this than meets the eye. At this point, all we really know is some 750 tons of amonia nitrate was being stored there the devastation in the port area is seemingly complete. We know the blast itself, first and second blast caused windows as far as 1,500 kilometers away. In beirut and in shopping areas in some of the oldest and historical parts of the city deeply damaged causing an end to any kind of tourist dollars. I was supposed to be there yesterday to interview the central bank minister about what is happening with the budget and imf conversations and 6 trillion we didnt do that trip because beirut had already been locked down over concerns of covid19 hospitals were overflowing now those hospitals will feel even more pressure we understand they are still pulling bodies from the area at this point hadley, a devastating situation. Thank you for joining us and bringing us up to speed with the latest lets get back to what is happening in europe. The central bank in focus today to a degree. Continuing to participate in the Central Banks flagship Bond Purchase Program bringing the standoff with the court to a close. Ruling in may that asset purchases could be illegal and providing justification for the program. Today marks the deadline for the judgement. Lets bring in carston first up on this legal challenge, is it fair to say, we can put this issue to rest now i think it is fair to say i think its a very unspectacular end. We had a couple of documents being exchanged. We are well informed by ecb press statement and they are planning on continuing on the ecb asset program. We can put the whole thing to rest now in terms of the ecbs response, they didnt express the concerns laid out by the Constitutional Court do you feel like the governing council expressed these things they did. Remember, when we had this verdict, the first action was to say, listen, this is not our home turf here we only report to the European Court justice. We dont report on anything. Afterwards, we have the minutes. Then we have the long paragraph in there suggesting the proportion at argument so the ecb became more transparent. You look at the decisions taken at the june and july meeting there had been much more references to inflation. The main or primarily target i think the ecb has indirectly reacted and the rest by the bunds bank talking about the policy. They are in the summer break now and will kick off with the next meeting in september at this stage, theyve left the door open for more easing. Do you think well get that action or will they be inclined to wait to see how the virus progresses as we get further into the autumn months all policymakers are facing this high uncertainty. The september meeting might be slightly too early for the policy action. Well get a new fresh batch of Economic Forecast by the ecb leading to this should be the stronger euro and lower the ecb inflation measures which should give the ecb more room to step up the purchases i still expect that theyll decide to step up and announce beyond the summer of 2021. A lot of the rally came on the back of the Recovery Fund agreement where do you see the euro going from here a lot of that initial excitement with the implementation and the risk that goes along with that to some surprise to sum up players in the market that can get the act together we had an agreement before the summer i think that is really important. When you start to look at the numbers it will have less than 1 gdp growth. The whole fund will become effective at the earliest first of january 2021. With the speed of recovery that is trying to understand. This year would be about National Fiscal stimulus i still think the ecb will step up its game. What about the labor markets . The big question now are these support schemes as they begin to wind down. What is the time frame to get a clear picture of the fundamental outlook for the labor market look at germany and the leader hear the schemes will last to next year. You look at italy. This is why there is european money being put on the table so that any government could get a loan to finance the shortterm schemes. When you look at the anecdotal avenue in the tourist industry and airline industry, there seems to be some real thought almost one quarter in the mostly hit sectors. One quarter of the people currently working under shorttime work schemes could lose their jobs. To see the full impact, i think well have to wait until the end of this year thank you for those comments. We have some fresh lines for you now coming out of lebanon. This devastating tragedy weve been tracking for you. Weve got the Central Bank Governor coming through saying banks will reopen on thursday. To take suitable measures after the beirut blast theyll convene on thursday. Lebanese banks to reopen on thursday as well in addition to those comments, we have comments from the lebanon minister of economy saying beirut silo of wheat destroyed but they have enough to support the port was very important for importing food it relies on 80 of the food that they import there. They have enough inventory vessels on the way to cover their need they are looking at reopening their banks on thursday. Thats the story now well continue to watch developments in beirut you can follow us on twitter and tweet me directly cnbc julianna well take a quick break now mulan hits the small screen. But theres a catch. We explain after the break we could never do what they do. But what we can do it be a partner that never quits. Verizon is the most Reliable Network in america. Built for interoperability and puts First Responders first, giving their calls priority, 24 7. We do what we do best so they can too. Lookentertainmentour 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. Disney shares after the entertainment giant posted better than feared Third Quarter earnings inked out an 8 profit compared to the loss opposed to a 1. 4 billion profit a year earlier. The company had been forced to shut down theme parks and delayed production at theme parks since the pandemic disney has been able to open many parks disneyland in california remains closed revenue plunging 85 year on year in addition to theme parks, cruise lines, hotels and tours have been impacted disney plus service hits 60. 5 million calling it an incredible success and the company will debut must lan straight to the streaming platform for a price tag of 30. The film was originally scheduled for cinemas in march disney is expanding further with a new International Platform called star. We have global head of research with us. What theyve announced with regards tomu lan how is this going down so many in the industry are old and tired and have a lot of traditions when you see disney taking on a new release method, its exciting and they are showing creativity the price tag of 30 is an interesting starting point it is easy to start at 30 it is easy to take the pricing down but impossible to take it back up. It is a great way to test this type of content going trait to the consumer what do you think of the subscription number. Pretty huge leap something we should be impressed by that type of growth is impressive in any environment the fact that they are able to show that kind of growth at this stage of the ott market is pretty impressive. Remember, they are not building the market but taking the dollar and shares away forget used to that kind of money it may not be taking market share directly really to win share of the consumer wallet. Lets shift away from disney plus and look to other parts of their business theme parks take a massive hit how much of a head wind is this going to be for them moving forward . Consumer demand is going to be depressed for a while even if consumers show a willingness to release that pentup demand and create a head wind what is impressive is not only to push content across all the different platforms. The Management Team has pretty good control across all these platforms. The fact that they are so broad and exposed is concerning but that is also very good when combined in a Management Team combined for the month the one thing the business has trouble controlling is advertising spend. They cant control the way their customers react and how they handle the pandemic. What does that mean for the outlook for advertising . Weve read a lot of news about advertisers pulling back if you think about the engine that disney built relative to advertising and getting add messages to consumers, it was really powerful at the time. Now that that segment comes under pressure that becomes a challenge. Theyve added revenue to sports and they have a lot of licensing exposure as well the question that will face them Going Forward will be how do you create new ways to connect advertisers to consumers in this depressed economy. That is something that hopefully their creativity will helpful them through on. You mention sport there and the hit that will take from advertising perspective. How important is the return of live sport in. Pretty important for all media. Thats the tent poll that really drives a lot of viewership the ott, the video on demand hasnt put as much pressure on live sports as other parts of the business being able to get that draw and allow a company like disney to monday ties that asset that they paid millions of dollars for is an important path Going Forward. If you had the patients, it felt like going into the pandemic, they were doing a lot of things right and theyve been really hit hard. Is this an opportunity for investors . Should they be looking in here we advise companies to build assets across multiple platforms. Thats what disney did in this case it is going to depress earnings in the short term. The platform is still there and management has shown ability to exercise influence all of their core assets are built for the long term. You would expect that to rebound when it comes back in for the segment. Thank you for leading us there. Partner and head of Global Industries and retail practice sfloo lets look at the u. S. Futures. We are looking at 175 points of gains for the dow. The nasdaq and s p 500 posed for a stronger start today u. S. Investors looking at the adp report and we look forward to the big report on friday, the nonform payroll. And eyeing washington and will lawmakers be able to come to an agreement on virus aid that remains to be scene thats it for me im Julianna Tatelbaum thanks for watching street signs. Worldwide exchange is coming up next. 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. It is 5 00 in watch. Tech still on top as some investors wonder when the buying might top out. The yellow medal, gold is hot. Investors continue to buy in movie theaters a thing of the past what disney is now doing that could change the game forever. A sad scene in beirut. A live report from lebanon picking up the p