Market investor tells cnbc intervention is not the solution. They are desperate to try to keep this market up and theyre trying every rule in the book to do that. Unfortunately as we know the more they do the more uncertainty is imposed on the market. Putting the brakes on profits at major auto maker. Bmw warns of slowing sales. Analysts worry theyre stalling on reforms. This despite delivering better than expected Second Quarter earnings. Hi everyone im seema mody. Coming up on the show hes a man with a plan. A Clean Power Plan as obama talks tough on Climate Change were asking you what would you give the president for his birthday, which by the way is today. The numbers are in and its not looking good for hillary clinton. We unveil the results of the latest nbc wall street journal poll. Plus angry bird produces angry gamers. Find out why the app ruffled some feathers later in the show. Lets show you what greek banking stocks are doing and theyre open now for a second day after they were closed for five weeks. Thats for the entire Stock Exchange and the plunge continues. National bank of greece is down 29 after dropping 30 yesterday and that 30 will slow it down so the banks would have been down even more. Alpha bank off by a similar percentage. Euro bank off by 30 as well. Yesterday greek stocks dropped 16 at the start of the trading day they were down by some 20 so limiting some of their declines but obviously that was a huge drop. So essentially two limit down days of 30 declines for the banks. Yesterday the rest of tin dex was down around 20 at the open. Today the rest of athens Stock Exchange only down 4 so clearly the banks baring the brunltts of these declines. Oil prices grabbed attention yesterday as well. A significant decline particularly at the moment of u. S. Trade opening delining some 4 . There is a little bit of stabilization today. A little bit of a bounce back as you can see but we are in and around the lowest levels of 2015 for oil prices. Brent 49. 9. Wti 45. 7. Where do Oil Prices Head from here . Earlier our colleagues on squawk box asked cofounder and coceo of carlyle group. In time prices will come back. In time demand will catch up with supply and in time i believe that carbon related energy will be one of the best investments in the world. The consumption of energy is something we need to do to make the world go forward and a Renewable Energy has not proven to be as efficient or Cost Effective or as widespread as people would like or as i would like and Carbon Energy is going to be the principle type of energy that the world uses. The marchapril rebound in the oil price and then stability for 4 to 6 weeks, people starting to think we got past the last year or so of demand supply and balances. Is it more of a sell off in the way weve seen china come off and other commodities related to china come off or a revisiting of the demand supply dynamics we were questioning at the back end of last year . I dont think anyone knows. Theres so many experts out there. Mark telling our colleagues in asia in the morning he sits on so many boards and everyone is making forecasts but no one really knows. Even the experts are way off in terms of their price forecast and whats behind the price drops and whats really stunning here is we saw in the month of july that was the biggest drop for commodities since october 2008. What happened then lehman. So why is it so bad now . There must be a lot of leverage behind it. Otherwise you cant explain whats going on. Crude oil down 20 from the highs in 2014. The big question is what does this mean for other Asset Classes like equities. There have been five times when crude dropped 50 or more since 1986. In the following year stocks are positive 80 of the time. Perhaps this could be a bullish indicator for stocks. That doesnt seem to be the case. Energy now the worse performing sector on the s p 500. The economy can benefit from Cheaper Oil Prices although that never fed through in the first half of the year as people expected. The other issue to bear in mind here is a lot of risk assets have been selling off recently but equityies have been strong performers. We say that relative to Everything Else they look attractive. They still have a little yield when bonds dont and Earnings Growth within reason and theres monetary easing but bearing that in mind that weve seen lots of asset sell offs and risk off sentiment in the bond markets and yields compressed on safe havens and equities in july were strong. Certainly in europe. And equities are the last risk asset Still Holding up. Relatively they might be valuable. Thats a superficial level but theyre quite resilient but if you dig deeper and look at the dow, 13 stocks trading in collection territory and most of those are in the oil and gas sector. Its really limited to the oil and gas sector but as wilf is saying the european markets are up double digit percentages for this year. Thanks to qe and mr. Draghi of course. Is that warranted . I dont know. But its where investors are going. Earnings have been better and so from a fundamental perspective theres something to be said for the strength of equities. Because they have seen the best earnings season in europe since 2009 so maybe its justified after all. Europe and japan are seeing much better earnings relative to 12 months ago than the u. S. Thats why im more concerned about the u. S. Because earnings have been a little poorer. Theyre still mixed and all right but expectations have been lowered and when you think nasdaq is up 8 year to date. You have the s p up about 2 or 3 . The dow is down but only fractionally and i dont think were seeing earnings positive enough to justify these equity markets. Europe and japan is systemcoming off a low base and they have qe. And then you have the stronger which is a whole separate conversation and the impact thats having on multinationals. Lets focus on one company in particular. Toyota. Record profits announced earlier. Beating on the bottom line in the First Quarter thanks to cost savings and a weaker yen. Were joined live from tokyo. Thanks wilf. For the third year in a row, First Quarter profits at toyota hit a record. There are two factors for these numbers. One is is the currency factor. As you mentioned the weaker yen helping japanese auto makers across the board. The second factor is the strength of the u. S. Market so profits were up 10 . This is much better than expected. 5. 2 billion u. S. Dollars and operating profits were up 9 but heres what the cfo had to say in summary. The u. S. Has been strong but the domestic market in asia were weak. On top of that demand in the middle east declined due to the sharp decline in oil prices. But when you look beyond the headlines overall sales in the quarter are actually down. One, the factor thats pushing the sales figures down the most is the uncertainty in the russian market. The collapse of that market. The collapse of the ruble. Toyota says they cant give a forecast for that market for this Business Year and theres softness in traditionally very strong markets like thailand and indonesia and in china this is where the worry is. For toyota these are january to march quarter numbers for the market in china. They say sales havent actually been hit by this lower Economic Growth story but it sounds like theyre having to pay more incentives to move product. Heres what they had to say on that front. In china sales are robust but we cant be optimistic about profitability. Costs are going up and price points are coming down. Its a very difficult sales environment. So their strategy in china is they say they need to raise the Brand Awareness and the brand value of toyota and they just have to better optimize their Production Base there and i think this move by toyota to make hybrid cars produce them in china for the first time later this year is a Clear Strategy in that direction. So all in all better than expected number but a lot of that has to do with the currency guys. Thank you so much for that. Lets stick with autos. China weighing on bmw Second Quarter results. Reporting a 3 decline in profits despite a double digit jump in revenue. The company also blaming ever fiercer competition. Shares in bmw off by 1. 9 . Lets get to nancy who joins us now around the desk. Is there any visibility on how long the slow down in china could last . Last time we talked about the w, no one knows. The targets have been very vague and this is not new is it . We heard from bmw theres been warning on the china market for years now but they have seen improvement in china for the most recent quarter, but this could be as good as it gets. What was really key here is they did mex if the conditions on the Chinese Markets become more challenging they cant rule out a change to the outlook. That was crucial. There was opt mifl thatimism that they could maintain the outlook. They beat on the top and bottom line and its not all bad news. The assumption is they could deteriorate quite dramatically. Bmw also has a new ceo. Do we expect change in direction. We expect for the guidance to stay the say. He may put more emphasis on the electric cars. It will be interesting to see what he says about the higher margin cars. Particularly rollsroyce and now thats a segment with weakness especially in the u. S. Sales figures yesterday. It will be interesting to see what he has to say about bmw both in the high end luxury sector and that aspirational luxury market thats been so key for them. Bmw didnt fair well. Is that a concern for investors. Its 2 overall but when you look at the whole group it was about 2 . But the whole group many cars saw weakness. They were down about 10 . That brought the entire number down just about 0. 2 which was not as good as some of the domestic auto makers we saw and thats a bit of a concern because so much success hinges on the suv market facing more and more competition as the days go by. Plenty of competition ahead there. All right nancy, thank you for that. Still to come on the show day 2 of a rough return to the markets for athens. Banks leading the losses once again. We analyze the fall out from the greek market slump, next. Chinese stocks close higher after the shanghai and shenzhen cut short selling by traders. This is to prevent a further market sell off. Speaking to our colleagues in asia mark expressed doubt about the effectiveness of the chinese governments attempts to control the market moves. They are desperate to try to keep this market up and theyre trying every rule in the book to do that. Unfortunately, as you know, the more they do the more uncertainty is imposed on the market. It will work temporarily but over the longer term it will not because people will take the opportunity to take advantage of these rules and regulations because the market will move in the opposite direction is what the government intends. How did asian markets fair today . Lets get out to sri live in singapore. Im inclined to agree. I think the broader risk that all of thisention that creates for the beijing authorities is moshlral hazard. They keep continuing. Every time we see a reaction to the down side of the market it begs the question are we going to see more government intervention. The government does have considerable fire power. That narrative is set to continue. It was a narrative today with beijing short selling the market like that move and we popped by almost 4 toward the close. Thats where we stand up by 3. 7 . Now the longer term issue is what happened to the longer term Capital Market reforms. They seem to have taken a backseat because the government is distracted by the volatility over the course of july and june as well. Some of the credibility in the Capital Markets bear that in mind as well. Elsewhere, i do want to highlight australia because we did see pretty solid retail Sales Numbers just ahead of the rba decision. Incidentally leaving the rates on hold at 2 but they seem to be backing away in the statement away from verbal intervention. Remember we seem to be approaching fair value in the aussie dollar so perhaps they dont see any more reason to intervene. So we did see a bit of a pop carolyn in the aussie dollar after that decision by the rba to keep rates on hold at 2 . Some believe theyre shifting into a more neutral bias because some of the indicators domestically seem to be getting a little bit better. Thats where we stand. Back to you now. Sri, thank you for that. Meantime i want to show you whats happening with European Equity markets. We are just a touch lower but well off the session lows. The stoxx europe 600 is off by less than 0. 1 . Greece is not helping with that index down by 4 . We also had disappointing earnings earnings. Lets show you the markets. The dax higher. Weighing on that index yesterday. And its off by roughly 1 . But the athens index down roughly 4 this morning with banking stocks once again limit down by 30 . In the bond markets, obviously youve got risk aversion and bad data hitting these markets and the ten year german yield at a two months low and same applies to the ten year u. S. Yield at 2. 16. 2. 15 yesterday after that disappointing manufacturing print. The dollar is seeing a little bit of weakness today against the euro and that follows on from yesterdays softness on the back of that data that i just mentioned. Were currently at 10974 for euro dollar and keep an eye on cable. Up by 1 . But in a few we get the european construction pmi. Athens and its creditors agreed proposed Pension Reforms only effect those retired after the end of june. This according to Greek Labor Ministry officials. Theyre hoping to ratify its bailout up to 86 billion euros before a Debt Repayment is due to the ecb later this month as carolyn pointed out earlier greek banks off sharply once again today all essentially close to the limit down amount of 30 declines. The broader athens index off just over 4 of course. Only opening after five weeks of closure yesterday. Joining us is the fixed income strategist. Good morning to you. Thank you very much for joining us. Just quickly how important are these declines in the stock market in your eyes as an indicator for where greece is today. Obviously the greek Stock Exchange is is very small and given that the banks are going to have to have some restructure which presumably involve a big hit to equity holders its been shut for a long period of time. This doesnt come as a surprise to us and its not something that we view as hugely significant in terms of wider ramifications. The overall situation in greece not fully solved yet. Were in a much better position than four or five or six weeks ago but theres still an agreement that needs to be reached. Will it be reached easily now . Has the main political differences between the two parties been dealt with now . It could still be a relatively sort of painful process and we wouldnt be entirely surprise first degree they need more bridge financing to make that ecb payment for mid august but we still see the path of least resistance is where they do come to a deal within the next month or so. Is the banks that are really leading the sell off when you look at the Greek Stock Market prompting the question of whether theyll get bank recapitalizations in the coming months . Theres talks of understanding passing august 11th. Do you foresee that happening . There will be some form of recapitalizations of the banks. It depends on the size. Almost the hit to their economy, the negotiations in some respects is worse. But it seems there will be a big recap. In terms of the deal i could easily see it going further out than the 11th of august but we ultimately see a deal being reached. How much did that greek manufacturing pmi yesterday weigh on investors sentiment. I dont think it came as a huge surprise. Its unsurprising when you have capital controls severely limiting manufacturing or buying a will the of Raw Materials. Limiting their business and emphasize the impact of this controls. We saw that rally in treasury yesterday and rally in bunds but treasuries rallied more than bunds. Wouldnt you expect much more of a safe haven bid in this scenario. Its potentially more related to the u. S. Data than greece what was going on yesterday. Not too surprising. But you do if you want to be invested in bonds you still want to be invested in the long end of the curve because the short end of the curve is sensitive to the rate expectations. Yeah. It seems the path of least resistance given whats going on in the u. S. Whats your top trade then . We remain long five year spain versus australia. Weve had it on for awhile. Probably a little bit further to go on that though not huge amounts. When do they stop stepping in when looking at the greek stock index. I was thinking about this while i was on the show. It gets to technical things on how you model the restructure of it. Youve got to think in the next day or so there will be some value because what youre restructured into will have some sort of tangible value and if youre quite bullish on the economic prospects for greece then the banks all go there ultimately. Thank you for joining us. The single most important step america has ever taken in the fight against global Climate Change. Thats how u. S. President obama described the revised Clean Power Plan in a white house address monday evening. The plan requires states to cut Carbon Dioxide emissions by 232 over the next 15 years compared to 2005 levels. By combining this with investment in our booming Clean Energy Sector and Energy Efficiency and working with the world to achieve a climate agreement by the end