To do. One fourth of that will be spending, but we dont know the timeframe. Jon there might be a consensus among economists, there is no consensus in this market right now. David im looking forward to that. We will speak to a man who knows the fed very well. Alan greenspan will be joining us in an exclusive interview. We begin with breaking news. Ford earnings just crossing the wire. The Company Making . 52 a share. Estimates were for . 60. Revenue,of actual coming in a bit stronger at 36. 9 billion. The company says it is committed profit. 6 pretax it it does warn that could be at risk even if u. S. Sales of its suvs pick up. We always want to look at pickups. They missed on their earnings per share but were up yearoveryear. Beat. And revenue did yearoveryear and quarter on quarter. Stay with us for that. Mark fields will join us shortly. We want to hit on that interview. Jon Credit Suisse earnings coming through, the swiss bank posting a surprise profit last order. The turnaround plans are beginning to pay off. Francine lacqua asked whether the bank needed to raise more capital. Very consistent ins and we do not need to raise capital. We have been very clear. We raised 6 billion. 11. 8 ratio. We can pull many levers to drive that forward. Thats we have been very consistent in saying we do not need to raise capital. Adequate a perfectly capital in the first half of 2017. Markets permitting. Ipos always depend on markets. It is a strategic move. We think it is a phenomenal asset hear. What we want to do with this ipo is get the markets to fully recognize the value of our assets, and very good bank in the wealthiest economy in the world. It will drive value for our shareholders. We want to keep control of what is one of our best assets. Francine if janet yellen raises rates sooner than expected, is that good for banks . Overall, yes. Jon fantastic interview. Where are they in restructuring . Are we starting to see a ray of light from that restructuring . His tone was right on message. He was pleased. You can see from the interview come in his demeanor. Charge, thisut in has been the first glimmer of hope. , theet one capital ratio capital buffers, is not only best in class at the moment, but also better than expected. He points to that in saying that is why he believes he will not need to raise any more capital. Hes been saying that for a while there are still rumors out there on the markets. Jon we can never say the worst is over. Going forward, the question of brexit looms larger. What did he have to say about the future of london . Francine he was very cautious. He said at the moment, we dont really know because article 50 hasnt even been triggered yet. That he didon mention a nightmare scenario for banks, this past porting issue. Passport this passporting issue. Certain banks may have to move to central europe. Jon thank you very much for joining us. Of 3. 5 at one point, trading lower now over in zurich. So many of her movers in the u. S. And europe as well. Other movers in the u. S. And europe as well. Alix people are using Facebook Like crazy and using it on their mobile phone, translating into huge mobile ad revenue for the stock. By 59 . Is up facebook is soaring in the premarket. A very different story when it comes to big oil. Shell, the worst quarter in 11 years. Profit was down 71 . It missed by 1 billion. It was heard all across the board. Hurt all across the board. It did boost its 2016 production target. Oil. Quarter for big looking at adidas, that stock trading around a record high. That as well. David it minutes ago, we broke their earnings report. They met analyst estimates on revenue. For more, we go to matt miller in michigan with mark fields, the ford motor president. Pleasure to talk to you this morning. Let me start by asking you about the miss on earnings. A lot of analysts were looking for . 60. That was a lot. Also, we saw margins shrink and market share shrink. Is there a problem here . By historical standards, it was one of our best Second Quarters ever. We had record profits in europe. Flow, 4. 2terly cash billion. Even the first half of the year, pretax operating profit for the company. We said the second half would be weaker than the first half. We see some risks in the business. You know us well. We will look at those risks and deal with those business realities and take decisive actions to go after the pressures on the business. You have been upfront with shareholders come up front with stakeholders here and say it is possible you do not meet your fullyear financial targets. What are the biggest risks . Mark we are committed to our financial guidance. Thate flagging these risks put that guidance we are working towards. We are seeing lower pricing and higher incentives in the u. S. And china. We are seeing softening in the Retail Industry. It is down overall as an industry in the Second Quarter. At the same time, we are seeing the effects of brexit, exchange and volume in u. K. Come our biggest market in europe. R b. Eak chinese lowernally, we are seeing option values for small vehicles released in the u. S. We started seeing those things earlier this year. Thats why we ramped up efforts in the company to try to compensate. Matt you did have your best profit ever in europe in the Second Quarter. How is the outlook for the u. S. . People are concerned about peak auto. Do you see the industry meeting last years level or being reduced . Guidanceve given our between 17. 4 and 17. 9 million units. First half of the year, the industry came in at 17. 5 million units. Within that, retail is down 1 . Our view in the second half of the year is the industry will be down versus last year. You can argue that the industry has plateaued. Early on in the economic recovery, the Auto Industry sales were good and outpaced the general Economic Development in the country. Although the industry is still at relatively healthy levels, we are seeing intensified competition as the Retail Industry has softened. That is resulting in some volatile factors each month because that will be dependent on certain manufacturers try to move the market with their product and incentives. See a turnaround in the industry, he will start using margins to win market share before you get into that declining industry. Is everyone doing that . Mark our incentives for the quarter were up on a percentage basis, basically in line with the indust. Our approach in the company is we will always prioritize our margins over market share. We arewhy Going Forward looking at that lower Retail Industry. We will stay focused and consistent on our strategy of matching and keeping our inventories in line. Matt one of the risks is brexit. How big of a risk is that . Is it a currency problem or demand issue . Mark both of those. To put it into perspective, the u. K. Is our largest business in europe, about 30 of our sales. The good news is we are fully hedged. Against the pound for this year. We are 60 next year. We are not hedged against the Balance Sheet this quarter. The remainder of the year, our view is the industry is going to come down. In total for this year, probably about 200 million. In an ongoing basis, until the union figurepean out what their trading relationship is, could be million intween 400 500 million depending on what happens to the market and exchange. We are looking at a variety of different scenarios. First off, they have to start the process. It is not only trying to put scenarios together around what we think the trading relationship will be, but what time frame. It stands right now, we are not making any changes to our operating structure. We will always stay very focused on making sure that we maintain competitiveness in the region and put ourselves on a path to sustained profitability. Are there plans where you say hang on a second, lets see where this goes . Mark it is more longerrange plans, not anything in the near term. The cfo saw south america as problematic. The places where you offset the problems elsewhere. Particular, the economy is still under a lot of pressure there. We are seeing markets like argentina where the new government has come in and taken very good actions a bit of pain in the shortterm for longterm benefit for the country. That will be dependent a little bit on the commodity cycle. Those economies are so tethered to what happens in commodities and we are starting to see commodity start to inch up. Thats one of the risks we see we are trying to offset in the second half of this year. Mark how much of a risk matt how much of a risk is donald trump . He was once again talking last night about fords production in mexico. Both we talk with campaigns to emphasize the importance of manufacturing and and making sure there is currency discipline. Do you feel like someone is manipulating the currency . Mark when you look across the world, we are against tpp, not because we are against free trade, but when you look at the countries like japan, they have done that in the past. We want to make sure we are competing on a level playing field. We have a track record of working with elected officials and policymakers on both sides of the aisle. We will continue to do so in a matter who is elected. Matt you wont be telling your employees to vote for one candidate or the other . Mark our employees should vote their conscience. Matt the swing away from when will ford have a fully committed electric car produced for Battery Power from the ground up . Mark we have our focus electric today which gets 100 miles and is extreme the competitive. Thats extremely competitive. We will introduce 13 new electric products. 40 of our vehicles around the global be electrified. We will talk more about our plans as they unroll. We have a big commitment to electrification Going Forward. Matt thank you so much. Really appreciate your time. Much. Hank you very hear we are starting to ceos talk about the Brexit Impact specifically. Interesting to hear him say it is a currency issue and demand and peak cars, something that has been circulating as well. David what that is doing to their planning down the road. They are keeping their cash back. Jon you can plan for the exchange rate, and they have. For an exchange hits you straightaway. You can see it starting to creep in. His concern is next year, 60 hedged. David the other thing that the me was office in softness in the u. S. Market. They are having to offer discounts and incentives. Alix the peak car thesis have we are reached have we weched the amount of cars can reach . Are we at the max . David currency minute relation in japan. This manipulation in japan. Currency manipulation in japan. Alix a huge facebook facelift. Beat. R earnings we will take a closer look at the blowout quarter, next. Jon this is bloomberg. Lets get a check on the markets for you. Just a bit softer, marginally lower. In europe, we are down about. 3 on the ftse. For a sixth straight day in a row. Ahead of the boj decision tomorrow, a stronger yen session. Theerday for the bulls in bond market, solid after the fed decision to do nothing. 1. 5 on the 10 year. David facebooks latest earnings beat expectations with most of its revenue come 84 coming from mobile advertising. The stock is currently trading up in the premarket. Here with more, paul sweeney. We do not route for or against companies. But wow. Paul you look across the digital landscape, facebook is the one that is really gaining share. Look at their advertising revenue, up 63 . The top line of 25 billion, extraordinary growth. As they continue to migrate to mobile, they are getting a lot of share there. They have a lot of other platforms that are out there in addition to facebook. Ts happened in stick alix facebook themselves warned that revenue will not always be this good. They have been increasing the number of ads in peoples newsfeeds. They are generating more revenue per user because of that. The big drivers here, they are anding the user base getting higher revenue per user by putting more ads in the newsfeed. The incremental ad load will play out sometime mid next year. They still have a bit of runway on the ad load. Ofrting 2017, a lot investors and saying that is when they can start pulling the revenue lever at an instagram or messenger or whatsapp. Publichen facebook went come everyone would come on a program like this and debate how they would make money. Hint yesterday that we could see facebook compete with the likes of google through search. Do . Are they going to paul the search business is dominated by google. U. S. 75 share in the what facebook is saying, listen, with 1. 7 billion euros theres users mothers a lot of information we can serve up , theresbillion users a lot of information we can serve up. Search a more relevant to you versus something a google algorithm might kick back . How do they monetize this huge social user base . David if you talk to people at talk abouthey facebook. How big can instagram get . Users. Is one billion paul Mark Zuckerberg told people, he thinks scale is one billion users. Twitter is not there. With one billion users at instagram, that is a really bible advertising platform and viable younger advertising platform and it skews younger. Maybeof concern was instagram will be another source of growth for this company. Sweeney. At is paul jon coming up, the fed inches closer to a rate hike. Ism new york, this bloomberg. Alix this is bloomberg. Hour, an in the next exclusive interview with Alan Greenspan. We talked the u. S. Economy, corporate spending. We want to take a look at the big stock movers. Miller v and sab the deal that might not be. Out of thepulling deal. The cash and options have been boosted come about the all caps part of the deal is what shareholders are complaining about. Are also really feeling the squeeze as well. Profit did fall 30 at total, but it did Beat Estimates. At shell andnce bp. Potash cutting its fullyear guidance come it missing its secondquarter estimates, slashing its dividend by 60 . Groupon up 26 in premarket, now just up about 21 , raising its fullyear revenue guidance, adding 1. 1 million customers. I use groupon a ton. It is making a comeback. Jon ive never used it before. Global markets, futures pretty much stable throughout the session. We turn to japan almost straight away. 1 fullclosing lower by percentage point. A big move in the japanese yen. Implied volatility overnight. Dollar the highest since the financial crisis. Sessionff a weaker yen in the commodity market, the sixth straight day of losses for crude. Wti down for a sixth straight day. For anyone yesterday in the bond market, the bond bulls looking for the warm embrace of an accommodative Federal Reserve. Today, up one basis point on the 10 year. Fed will theywont they rate hike debate. Y president obama made his most forceful case yet for Hillary Clinton, offering his endorsement in philadelphia. President obama there has never been a man or a woman, not me, more qualifiedy than Hillary Clinton to serve as president of the United States of america. Shery clinton joined the president on stage after the speech. Tonight, clinton will formally accept the partys nomination. Senator tim kaine a virginia formally accepted the partys nomination to be clintons running mate. Saying on the attack, the u. S. Is too great to be put in the hands of a slick talking come empty promising, self promoting oneman wrecking crew. Donald trump has reversed himself on a major policy plank. He says he is in favor of a 10 an hour edelman among wage. Thats federal minimum wage. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im shery ahn. This is bloomberg. David tom keene joins us now from surveillance radio. The world is not ready for yet another banking crisis. The quote from this piece is as stressbraces for the test on friday, the world could be on the verge of another banking crisis. There are more than 3 trillion in stressed loan assets worldwide. He goes on from there to talk about loans in china, loans and india. Theres a lot of troubled assets. Scope ofin the global a great essay, public and. Rivate loans, a great feature the media particularly is guilty of public analysis, public analysis, public analysis. You have to bundle it all together and that is where the banks get in trouble. David he goes on to talk about the causes of that. Some of it is accommodative Monetary Policy. People are loaning money against assets that may be deflated. Tom we have seen it before. The major causes the human condition. Cause is the human condition. Nations do that as well. We have seen this buildout of debt occur. How do you clear that mess this time around given the knowledge we have . Clearing out previous crisis. David that requires a strength in the Balance Sheet. Regulations have been putting pressure on that, which makes it harder. Tom the banks are in better shape everything considered. The distinction is we want to do it pain free. Remember in 2007, the beginning , the idea if we can get through this crisis and do it without suffering a lot of pain we are still there eight years later. David the italian banks, individual retail have bought these bonds. Cram down. , bailout they will not do that to the individuals. Fine. Then, who do you do it to . The mystery on this final week of july. What you do. David the soft landing is the tricky part. Tom we dont know what kind of landing it is. Tom keene from surveillance radio. Alix the most important sentence from yesterdays nonrate hike meeting. The balance of risk statement is back. What is the fed doing now . For more, i want to bring in john ryding. Good to have you. Did you feel like they were using the balance of risk statement to prep for a september right hike . Best rate hike rate hike . John in october, they said next meeting. This is softer. Yields declined, front end ,ields declined and it was like come on come on, is this the best you will come up with . The markets were looking for something more explicit. A septemberopen to move if the numbers are strong enough, if theres nothing that scares janet yellen, which seems to be quite a lot these days. I tend to think december is when the fed is going to go. It always strikes me that people think things are so choreographed. We move towards a speech by janet yellen at the end of august and there is a general assumption that the speech is wri