Ready to meet to discuss their demands on doha. Good morning, everyone weve got a lot of data to get through. Lets kick things off with the Eurozone Services pmi, that came in at 55. 4 versus a forecast of 54. 7 the may number that was 56. 3, so were seeing a bit of a weakening, but again it is still above forecast when it comes to the may composite sorry, june number, 56. 3 thats higher than forecast. Overall the momentum is still relatively strong. Lets see whether momentum is still going strong in the uk car registration sector. Its not down 4. 8 yearonyear in june to 243,454 units thats according to the smmt and that follows a drop of 8. 5 when it comes to the may print. Once again uk new car registrations down 4. 8 yearonyear in june lets get instant reaction with ant edenhall do these numbers strurprise you after the numbers leading up to the german ele election . We expected car sales to be down this year consumer uncertainty is pretty High Consumer confidence is high. So you would expect car sales to fall car makers are offering huge discounts, thats driving people into showrooms this drop of 4. is better than we would have expected lets look at the breakdowns. Uk new car diesel sales down 14. 7 in the june month. Yearonyear total private sales down, and fleet down 2. 4 . The diesel numbers decline is not a surprise thats more of the structural shift. What we saw happening in may is a 20 rise in business purchases, doesnt seem like this has been repeated, has it theres a lot to of discounting in the fleet side of the business going on. Thats why that side is behaving slightly better than the private consumer you said were getting used to the diesel numbers falling 15 , 20 a month, i think its still a big shock for the industry the consumer is running away from diesels, carmakers need to react fast to offer electrified power trains last month the body, the sm it was talking about the decline, they said we have a number of new models coming into the market with new electric Vehicle Technology but also connective technology. Do you think that will push up sales somewhat as we head into the fall or is that Wishful Thinking really . I think thats Wishful Thinking theres always a huge amount of new cars in the market if people are uncertain about their future and jobs, how brexit is being dealt with, all of that, they normally hesitate to buy anything and the car is still the second biggest ticket item after a house lets talk about trends outside the uk they seem to be going strong italian numbers, 13. 6 in june spain was one of the countries hardest hit in terms of the financial crisis and the car market have these markets fully recovered . Can we expect more upside . They have not fully recovered. Some european markets, still 15 , 20 to go before we get to more normalized levels germany and france, we are slightly at or above trend the european, continental european consumer feels really strong peoples mood is better Consumer Confidence is better. Theres more disposable income thats why the continent is doing nicely why is the u. S. Not doing so well we saw the car numbers for june on monday. Those were disappointing once again. We saw the fourth consecutive monthly fall whats going on here the carmakers actually rose on the back of the numbers because i guess retail numbers are Still Holding up okay. Why do the monthly numbers still fall we are at a high level. Were at 16. 5 to 7 million vehicle sales annualized so thats just a high level the industry could push harder, pump more discounts into the market it doesnt seem to be helping. I think its very important that carmakers control pricing here, control leasing, otherwise they create a huge bubble, thats being questioned any how already with more cars coming off lease. To protect pricing, have the right inventory level, thats crucial. Before we let you go, i have to ask you about your latest call on vw youre calling for the company to break up. For six separately listed companies. Thats quite a big ask from a company which has been a behemoth in the auto space why do you think this will happen vw is too big its a company with more than 600,000 employees, more than 200 billion revenue, theyve been moving from problem to problem, scandal after scandal. In order to protect the business, to be more flexible in funding, to be more flexible in m a, different brands to react to the disruption in the market, i think volkswagen would be better set up with separate units that are being controlled by a holding company, that would make volkswagen quicker, more modern, and certainly a Better Company at a better structure for the future you have a buy rating on the stock, price target of 190 euros, would you still have a buy rating if the breakup doesnt go ahead im not sure the breakup will go ahead in six different parts. The company is reviewing the structure, whether they go for Passenger Car business, truck business, mobility business, thats a good thing. Would i have a target of 190 without a breakup . Yes. My equity story is based on the earnings potential that volkswagen has arnt, thank you very much for that well see whether that breakup happens. A quick look at the European Equity markets on this wednesday morning. Were looking flat not very exciting at all stoxx 600 index is just hugging the flat line with an equal number of gainers and decliners at this point. We have the u. S. Coming back online todayafter yesterdays fourth of july holiday maybe that gives us more direction today. Oil prices are mixed yes, you saw that the likes of adidas has been upgraded lets show you the individual markets. The dax actually down despite that upgrade to adidas, we saw an upgrade to the mining sector, and the cac 40 is up by a smidge coming back to some sectors. This is the picture when it comes to the sectors basic resources benefitting from that upgrade from credit suisse. Household banks doing better on the down side, healthcare, utilities and real estate. Lets talk about the italian Banking Sector, because banca monte dei paschi is aiming to sell 18 billion euros in bad debts by 2021, this part of the overhaul after the European Commission gave the green light to the bailout of the italian lender the italian finance minister said he is confident in the banks Management Team and hopeful about the bailout plans potential. Translator i want to remind this plan gives certainties and a Credible Future to a bank whose capital level is important. Prior to this plan, bmpss bad debt would be eliminated by the first half of 2018 for a gross value of 28 billion euros. The plan will be based on prudent economic estimates lets get out to claudia in milan. Is this the all clear for the italian Banking Sector it does appear that way the positive comments coming out from the economy minister stating that hes confident, using words like the certainty, the credibility of the plan, that this is a positive turnaround for monte dei paschi, but it could signify the turnaround for the italian Banking Sector this plan will be coming through basing also on significant cuts in terms of employees. So 5,000 employees will be leaving the bank, this is on early retirement, incentives, not layoffs. They will be cutting the branchs from 2,000 branches to 600 by 2021 net income in that year, in 2021 will be 1. 2 billion. Return on equity, 10. 7 , with a core tier one at 14. 7 by 2021 so very positive Restructuring Plan, different than the one laid out in december when there was a capital hike that was being carried out in the market that did not go obviously positive positively the bank was delisted on the 23rd of december, or actually suspended on the 23rd of december since then this plan has been in the works. Its positive. The reaction thats been coming out today, youre seeing banks reacting positively. Not too strongly, yet all the italian banks are in positive territory. The help also that is coming out in terms of Capital Increase will be 8. 1 billion euros injecteded into the bank, 5. 4 from the government as part of cautionary capitalization. The venetian banks have been dealt with so this could be this could be the summer of the end of the difficult time for these italian banks. Back to you. Thats the hope at least. It remains to be seen whether the money injected by the taxpayers will actually ever be recouped thank you very much. Lets move on. Shares in uk home Builder Persimmon are trading at the stoxx 600 after a 12 increase in first half revenues the company also reported a nearly 4 pick up in the average selling price for its properties over the period. Persimmon told investors that political instability resulting from the uk general election appears to be having little impact on the British Housing market first half pretax profit at ocado fell to 7. 7 Million Pounds down from 8. 6 million a year prior. The company cited the opening of a new Distribution Center and other investments as having weighed on profits despite Revenue Growth ocado also said it would pursue further International Partnerships after it secured its first overseas deal with an unnamed european retailer. Adidas shares got a lift after hsbc raised its stock rating from buy to hold. Zolando has been dropped from the pan european buy lift and jeffries initiated coverage of moncler. Moncler up by 1. 7 . Coming up on the show, we cant be dictated to were live in doha thats in two minutes. Its a good thing we brought the tablets huh . Yeah, and i can watch the game with directv now. Oh, sorry, most broadcast and sports channels arent included. And you can only stream on two devices at once. This is fun, were having fun. Yeah, we are. No, youre not jimmy. Dont let directv now limit your entertainment. Xfinity gives you more to stream to more screens. Welcome back moodys changed qatars Credit Rating outlook to negative from stable citing the risks around the diplomatic dispute with its arab neighbors moodys added that the likelihood of a prolonged period of uncertainty extend nothing 2018 had increased the Foreign Ministers of saudi arabia, the uae, bahrain and egypt are set to meet in cairo to discuss whether to continue sanctions on qatar willem joins us from doha. Doha responded with a list of based on those demands do you think the stalemate will end soon now that the deadline has passed well, we dont have any details about what cat tarqatare said in response it was handed to the saudiled authorities by kuwait earlier this weekful the official deadline passes today, wednesday. The saudis, emiratis, bahrainis and egyptians said they will respond in a timely and appropriate manner however, as to actual timing as to when some of these blockades would be lifted, thats a long way off in the future. Theres more discussions behind closed doors before any agreement is reached the qataris have been forcefully pushing back against that 13point list of demands originally sent to them in late june one of the main issues theyve focused on is this concern about Terrorism Financing. Theyve been accused of harboring and supporting 59 separate individuals, 12 separate organizations involved in Terrorism Financing yesterday we heard from their foreign minister, he was talking to the German Foreign minister, and he came out to say that essentially they took this issue seriously already. It was something they were constantly working on. Lets have a listen to what he had to say translator it is an important state matter for us. As for the security of the rest of the region, but it should not be raised amidst a blockade a boycott of qatar and while taking illegal measures against the state of qatar, all under the banner of fighting terrorism. When there are measured in this context, because they think they will be met with international sympathy because theyre antiterrorism measures. He mentioned international sympathy we will tweets from donald trump insinuating that qatar has been involved in financing terrorism. Theres been conversations on both sides the mood here is very, very interesting. Theyve seemingly managed to rally people, qataris around the amir here, k shg, kahmtheres as image of him, ta ashgtahmin they so any effort that the saudis wanted for a swift resolution, doesnt seem like that will happen. The International Energy chief said the Global Oil Market should rebalance in the second half of the year under present conditions he warned, however that further output increases from producers libya and nigeria could complicate things. A quick look at oil prices very stable. Hardly moving. Brent up by 0. 1 49. 64. Light swede crude, 47. 02 off by 0. 1 . We saw a string of eight Straight Days of gains lets talk more about oil prices john abbott is here, global downstream director of shell, hes here along with steve sedgwi sedgwick so the oil market is said to rebalance. I think the oil market is skeptical about this is there any sense that the extension of the opec deal is actually working obviously the opec deal and oil prices are very interesting to all of us its very much shell looking at a range of oil prices. Quite often we talk about lower for longer you know, really the longest term strategy, i think, is the thing thats important for shell. 2016 was a year for shell, which was a complete reset with the bg integration. We saw the oil prices coming down after that. So we said, look, we need to set up a world class Investment Case for shell. What does it look like for the next five, ten, 15 years so we set very clear Free Cash Flow targets, return targets how are we doing how are we doing in this 50 Barrel Oil Price scenario that you just talked about today . On Free Cash Flow were coming off the back of three strong quarters over that weve averaged about 19 billion of Free Cash Flow over those three quarters as a run rate weve taken about 10 billion, 20 of our operating expenditure out. We responded to the oil price in that way we brought our capital down to 25 to 30 billion we have reset the company through divestments. We set the divestments at about 30 billion. We have 25 billion of those that we have run of sight on i would only disagree good morning again. Good morning. You said we reset the business, youre in a constant battle to prove to shareholders you can cover the cost of your dividend, you can cover the cost of your debt and get it down aggressively and invest as well in the current oil prices. Now, we all know that ben and you and the rest of the ioc would love to see 55, 60 per barrel thats the level you see over the longer term. But in the current environment can you pay a 7. 3 dividend, cover the debt and invest the way you want to . Youre right. Its a process of continuous improvement. We talked about 20 billion, 25 billion of Free Cash Flow by 2020 and ive talked about a run rate of 19. So we have some way to go. What i have also talked about really is, as you say, resetting the business high grading the portfolio nowhere else have we done that more than the downstream business downstream is fundamental, as you say, to paying off the debt, maintaining the Dividend Payments so just to give you one point, in quarter one of 2017, the groups earnings were 3. 8 billion, downstream was 2. 5 billion. You know i got that in front of me as well. I thought i would remind you. Upstream was 540 though as well i dont im focusing on the downstream here. Is the market obsessed i know the answer to this. Im part of the market and im obsessed by it by upstream, by oil and gas prices, by what opec is doing and not paying enough attention to what seems almost pedestrian by comparison but in terms of numbers not, downstream, marketing, all that stuff . I think what you have to bear in mind is that shell is an integrated oil company its chosen to remain integrated it will continue to remain integrated i have seen times in my 36 years in shell where upstream delivered far more cash than the downstream were seeing the reverse at the moment youre right, of course, downstream is a diverse set of businesses its refining and trading, chemicals, which for us is very much a growth theme. And marketing. Which is also growing in terms of revenues as well. Happy to talk about those particular growth areas. They are important in terms of reducing debt and continuing Dividend Payment there is a lot of pressure on your business to perform given that it now makes up such a big chunk and highest profitable part of the business i wonder to what extent youre able to invest in that business given the companys ambitious plan to cut 30 billion in debt by divestments by the end of 2018 i know youre well on track with that do you have the fire power do you have the room, the flexibility to make the necessary investments . So those divestments have been about resetting the company and high grading the portfolio the last five years or so the downstream divested 12 billion of assets but earnings have grown by 25 youre right to talk about where the growth area is chemicals is growing today at about 3. 5 to 3. 7 per annum thats double oil demand, which is important to point out. Youre right. Thats where the growth is if we talk about the Energy Transition, that is driving chemicals demand we want lighter materials for cars and aircraft. We want insulation, were growing our business the pennsylvania cracker, doubling our capacity in china and further expansion in louisiana, those are three plants that will come online in the next few years, which will significantly increase and close to double our chemicals earnings how dependant is that on Global Growth and sentiment . Do you think this is a shift that will happen eventually as the middle income class is rising in the emerging markets or does this depend on what global gdp is doing . Are you reliant on china and indias Growth Prospects clearly it is growth dependent but everybody on the planet today, they are using more chemicals the important point i made is the Energy Transition is happening today. The Energy Transition is driving the demand for chemicals thats not going to slow down. If anything, it will increase. John, that was great opening salvo. Well get more thoughts from you and from steve in the next 15 minutes. Do stick around. John abbott from shell, and Steve Sedgwick will stick around we have to go for a quick check out World Markets live, our blog which runs throughout the european trading day well be back after this welcome back to street signs. Im carolin roth these are your headlines monte dei paschi unveils a drastic Restructuring Plan as rome pumps more than 5 billion euros into the bank. Uk home Builder Persimmon rallies to the top of the stoxx 600 as it says Political Uncertainty isnt hurting revenue. Qatar signals its open to talks, but warns it will not accept any intervention on its domestic affairs, as saudi arabia and its gulf allies get ready to meet to discuss their demands on doha. Good morning, everyone the u. S. Markets were obviously offline yesterday given the fourth of july holiday as they come back today, this is the expectation for the start of the trading session. The s p 500 seen up by 1. 5 points the dow jones seen up by 3. 5 points the nasdaq could fall by 26. Were expecting fed minutes later today and the important jobs report on comes to the eu markets. Ftse mib, down by 0. 5 the cac 40 is holing to the flat line when it comes to the fx markets, want to show you sterling against the u. S. Dollar off by 0. 2 . We got the uk june services pmi. 53. 4 versus a may print of 53. 8. That was slightly below reuters poll and this is a fourmonth low. This is very important given that the Services Sector accounts for 80 of the uk economy. We saw the manufacturing and the construction pm iris coming in below expectations volvo unveiled plans to phase out the conventional car engine volvo, which is owned by a Chinese Investment group, announced plans to launch five new electric and hybrid vehicles by 2021. Lets get back to john abbott an Steve Sedgwick john, want to get your reaction to the volvo news. Is this surprising to you . You also have been stepping in to the Battery Charging market when it comes to your retail presence is this a move mirrored by many other players in the market . Its not a surprise to me in shell we welcome all forms of energy our Marketing Business is extremely important to us. We delivers 0. 9 billion of earnings in the First Quarter from the Marketing Business. What we are finding is a shift as you described people are buying more premium products, premium fuels like v power, premium lubricants. More energy efish sheficient an demanding engines. 1 in 5 liters of fuel we sell are premium fuel thats important also we are seeing a transition to electric vehicles, to hydrogen vehicles, to liquefied natural gas, to biofuels this is a trend we are anticipating is this because you cant beat them . As a Traditional Oil player, this is your enemy the electric car market is your enemy, because you cant beat them you say well have to build some charging stayings, too . No, we really want to provide what society and customers are looking for. We are reshaping shell we have 30 million customers a day. We have 4 3,000 retail sites globally, thats more than starbucks and mcdonalds we serve a lot of customers. Theyre looking for those premium fuels but also looking for electric vehicle charging staying stations on hydrogen vehicles, we just opened up this year our hydro gehydrogen fueling station. It is working with the Energy Transiti transition, and thats what were part of. We set up a new Energy Organization where in the next three years well be spending a billion dollars per annum on new energies we want to be part of that Energy Transition. We want to be part of that petro stations are a tough market shell was selling a large amount of its portfolio it was Something Like 13,000 uk petrol stations in the uk, now thats 8,500 shell did sell a few you have 1,000 left that you actually own 500 i dont know if thats still accurate it seems like a declining business its not a declining business we have 43,000 retail sites globally and were looking to grow that number were growing the number of sites in china we have 1200 there today growing the sites in india, indonesia, mexico. So we see a growth in the number of sites, volume and margins in the developing areas, but its those premium fuels and some of those Lower Carbon Energy fuels that were looking at selling in the future we set an ambition in shell retail that by 2025 20 of the energy that we sell at retail sites will be of a low carbonate chore. If the vision is correct, there wont be petrol stations anymore, by 2050, there wont be petrol stations, there will be charging stations. While its a growing market, for the developed world are its days numbered will be retail stations the retail station of the future will look different. Nonfuels retailing is an area where you see shell developing in a big way were expecting to grow nonfuels retailing significantly between now and 2025 youre right electrical charging, high tro j hydrogen, biofuels, theres going to be a broad range of energies. Thats what a shell retail station will look like can i pick you up on the lmg comment, overnight we saw qatar will increase its lng production by 30 that adds to the overall glut. How has the qatar situation affected you so, lng is important for shell. The whole bg integration was around accelerating our integrated gas and lng position by 5 to 10 years ka pqatar is an important count for us we signed an Offtake Agreement with the qatari last month our operations in qatar continue relatively undisrupted of course were keeping a close eye on it because of the importance, and the importance of our global lng position in terms of the way forward on trading activities, another thing that comes up, im interested in how you see that and the influence of trading activities from Big Companies such as yourself and the other iocs on the determinate price . We spent all the rhetoric talking about the shorts having a horrible time because theyve been squeezed out of it. How much are you paying attention to the activities of your traders in terms of portfolio theyre maintaining in the oil product and what kind of business youre seeing from speculators. So youre right that im account nl for sheable for shel Trading Organization were trading around our refining assets which are based in the gulf of mexico, rotterdam and singapore area because we have a global Trading Organization and trade around those lengths and shores what we are finding is it is extremely important in the current environment to be able to trade around assets and thats why we look at very much integrating our refining business and trading business. Thats how we report results trading around real and physical assets i think is important. Particularly in the current environment where, as you rightly say, steve, volatility has gone down. And, you know, weve seen banks moving in and out. Some of the smaller players moving in and out. They dont have the assets to trade around as a counterpart to these enormous companies, there was a book one of our colleagues wrote about this do you find theyre putting mass amounts of speculative inslentoinsletrades into the market . At the end of the day we control risk and value risk extremely tightly. We have very defined parameters in that. We have not increased the risk that we are exposing our Trading Organization to. Great speaking to you its a rare treat, because as viewers know, we, i, am obsessed about the upstream john, you put the record straight a little bit today. Thank you very much as i say, hopefully you have seen shell has significantly reset irtself. Its got a strong momentum on cash flow. Downstream contributed to that we are part of the Energy Transition, were embracing the Energy Transition. You got the message out at the end there. John abbotting global downstream director of shell. I will continue my obsession with the oil price i will be in istanbul next week and well speak to many Top Oil Company chiefs and leading opec and nonopec Energy Ministers and well speak to this man. Fatih birol on tuesday. Thank you very much for having me. You are welcome any time. You have done the show on your own many times. Very much enjoyed it. Come and stick around every day after the threehour stint on squawk. That is something that management would like to truck to you about okay. After the show fantastic. Moving on, north korea claims its latest missile can carry a nuclear warhead. U. S. Secretary of state Rex Tillerson says the latest test represents a new escalation of the threat and is calling for global action. Chris pollone filed this report. Reporter another open display of military aggression by north korea is igniting calls for an emergency meeting by the u. N. Security council. The director of communications tweet ted late this afternoon ta nikki haley requested a Security Council meeting tomorrow a second tweet said haley wants the emergency session to be open earlier today two u. S. Officials confirmed to nbc news that worsening fears about north korea are true the country did successfully launch a twostage Ballistic Missile into the waters off japan. The icbm test marks a significant advance in the recluse sieve cour reclusive countrys advancement. An icbm can ra a range of about 3500 miles making it capable of reaching u. S. Shores in alaska while todays launch did not come close to american borders, this is striking at the core of the u. S. And allies. Late on tuesday, u. S. And south korean troops fired into the waters the south korean president , moon jaein will arrive in germany today where he will seek to rally support around fresh sanctions against the north korean regime. South korea says it remains open to dialogue with pong young despite the latest missile launch. Xi jinping has already arrived in germany he will attend the opening of a 10 million panda enclosure at the berlin zoo with his counterpart angela merkel. Do we call this panda diplomacy . I dont know President Trump is gearing up for a busy week of diplomacy as well hell travel to poland before visiting germany for the g20 summit he celebrated his first Independence Day as president at a white house picnic for military families. He told guests our country is doing really, really well. Cri Kristen Welker filed this report reporter President Trump marking his first fourth of july in office. Happy fourth of july, everybody. Celebrating the country while trying to protect it grappling with the new missile threat from north korea after toughening his tone with kim jongun last week. The era of strategic patience with the north korean regime has failed reporter now once again urging china to rein in its north korean ally. Not only requesting china make a heavy move against north korea but over the weekend a stern call with chinese president xi warning the u. S. Is prepared to act alone if necessary the reality, china hasnt stepped up since that diplomatic dinner at maralago in april. The relationship developed by president xi and myself i think is outstanding before taking office, President Trump had warned north korea that obtaining an intercontinental Ballistic Missile wont happen tonight the white house is weighing options, including more sanctions. There are not many diplomatic options. I think that were very close, much closer than weve been in previous administrations to a real military collision with north korea. Still, the white house sees military action as a last resort. The bottom line is, it would be a catastrophic war if this turns into combat. The president will have the chance to again press chinas leader when the two meet at the g20 summit. The chinese president met with russias president putin, both leaders pushing for negotiations with north korea but the higher stakes come on friday when President Trump and president putin meet their first meeting being billed as an official event instead of an informal meeting sending a signal the white house wants warmer relations, despite revelations russia meddled in the 2016 u. S. Election. He needs to be very clear with putin if he wants to engage in a cyberwar, that america is prepared to engage in that war protesters and riot Police Clashed in hamburg ahead of the g20 Summit Police cleared demonstrators off the streets with Water Cannons and evacuated protest camps. German Security Forces are concerned protests could turn violent as leaders from 20 of the worlds leading economies come together for the twoday meeting. Out with the old and in with the new. More on the change at the top of burberry after this short break. The uks bad bank is set to reduce its Balance Sheet by another 5 billion pounds by the end of next year they already offloaded 80 of their original portfolio the bank says that current Market Conditions and floebl yield global yields are creating such loans from institutional inve investors. And get ready for an Interest Rate rise speaking to the guardian newspaper, sounders who last month voted in favor of raising Interest Rates added he was reasonably confident uk shop prices fell at the left pace since 2014 there was a 0. 3 yearonyear drop despite a 1. 4 rise in food prices this is a great story. The European Commission president criticized meps saying they dont take smaller countries seriously. A furious Jeanclaude Juncker slated lawmakers after about 30 members showed up for a speak by maltas Prime Minister take a listen. Translator mr. President , Prime Minister, members of the European Parliament, European Parliament is ridiculous very ridiculous. They would like to commend those who took the trouble of being here, but the fact that some 30 mps came to this debate is proof enough that the parliament is not serious. I would like to say it today, if mr. Muska it was mrs. Merkel or mr. Macron he would have a full house. The parliament is totally ridiculous that was Jeanclaude Juncker becoming quite angry. Tencent shares start the recovering after falling more than 4 in yesterdays session, this after the chinese tech chint sa giant said it was limiting play times for players of honor of kings. The move is aimed at cushing addiction among children honor of kings has over 50 million daily active users and is tencents top grossing game. The micro financing sector in china is looking to service 900 Million People who have access to mainstream banking for some that means turning to farmers for new growth eunice yoon filed this report. Reporter far from his posh beijing office, roger ying is meeting some of his best clients. We love coming down here. Its always a treat. Reporter the stanford grad from south africa founded a peer to peer lending company. The p to p industry in china has run into financial trouble to survive ying lends almost solely to people on the farms. When i look at the china economy, 1. 3 billion people. 300 million to 400 million have already been enriched. Theres 900 million other farmers who have been left behind by the mainstream Financial System we see the demand for farmers. Reporter farmerslike the fus. In this village in southwest china, he used to be a coal miner. After getting injured, he wanted to try figure farming but didnt have the money in the countryside its hard to get money, he says even if i were to get a loan from the bank, it would be too small to start the business. Then the local village chief introduced him to pondai who approved a loan of more than 11,000. Rather than handover cash, the Company Bought the pigs and fee. In one year, fu expects to earn a profit of 14,500 after paying back the loan and interest this kind of lending may sound risky, lending to people on the farms who dont have much experience with modern finance pandai says their recovery rate is 98. 5 and in a company where Companies May or may not pay their debt back, these farmers are a good bet. The farmers, we find them to be honest, reliable and basic people they are just looking to improve their own lives. Reporter thats whats happening to the fus i wanted to have a fridge and a tv when i got married, we didnt have the money, fus wife says. Now we do. Good for an economy in need of new consumers for future growth. Eunice yoon, cnbc business news. The u. S. Government is seeking to intervene on apples appeal against an eu order to pay up to 13 billion taxes to ireland. The European Commission says apple received illegal subsidies from a sweetheart tax deal with the irish government. And shares of persimmon are trading at the stoxx 600 after posting a 12. 5 increase in first half revenues. They reported a 4 pick up in the wav raj seaverage prices ov period first half pretax profit at ocado fell to 7. 7 Million Pounds, down from 8. 6 million a year prior the company cited the opening of a new Distribution Center and other investments as having weighed on profits, despite Revenue Growth ocado also said it would pursue further International Partnerships after it secured its first overseas deal with an unnamed european retailer last month. Adidas shares got a lift after hsbc raised the stock rating from buy to hold. Zalando has been dropped from Goldman Sachs pan european buy list moncler and yoox have been given buy ratings. And theres a new man at the helm of burberry so we thought we would look at how burberry has performed under Christopher Bailey his departure was announced in july last year following an over 20 drop in the stock. Since the announcement shares have done up more than 40 his time as co was marked by head diz wiby headwinds after devaluation of the yuan bailey will be replaced by marco gobbetti, the chief executive of celine since 2008, he also ran an italian fashion house from 1993 to 2004 thats it for todays show im carolin roth Worldwide Exchange is up next. Have a fantastic day as we leave you, heres a look at how the United States celebrated Independence Day. Well see you same time same place tomorrow byebye. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Good morning back to business u. S. Stocks resume trading after starting off the quarter in the green, except the nasdaq which looks like it could be down again today. And north korea raises the stakes u. S. Officials confirmed they fired their first intercontinental Ballistic Missile. Plus its mrelectric volvo goes where no carmaker has gone before. Well bring you details of their ambitious plans