Investigation after a possible breach of antitrust laws. And taking a gamble, shares in gtech rides as it coughs up nearly 5 billion to stop Machine Operator itt. A warm welcome to worldwide exchange. Taking you back through some of the losses we saw through yesterdays trading sessions. The stoxx europe 600 off 0. 5 in trading. Lets have a look at some individual markets this morning. Right now weve got the ftse 100 and the xetra dax higher by around 0. 5 . I want to point out the psi market, a gain in portugal pounce bouncing up 1. 3 . The real force is a Holding Company owned by the santo group. There were reports yesterday that theerp potentially looking for applying for creditor protection right now. Theyve missed a repayment to telecom this morning. Were talking you through all the details of this and what it means a little later in the show. But first, look at whats going on as far as the top movers in the second are concerned. Icaps falling year on year with conditions continuing to affect their trading. Its an ongoing issue right now for the company. Seeing that stock down just over 0. 25 . Moving over to royal mail and tnt, both receiving notice from french competition authorities about a possible antitrust breach. Right now, royal mail down 1. 7 . Tnt express 3. 2 lower this morning. Asml Holding Company, a mixed bag. The stocks trading lower as the outlook for revenue was disappointing. The company did announce strong Second Quarter profits with margins above guidance. Foern Exchange Markets this morning, we did see the dollar showing a big turn yesterday showing Janet Yellens comments. Yellen stepping back it seems from a focus on the longterm unemployment levels in the u. S. From her comments, too, is that rates could rise sooner than theyre currently anticipating if we see a further pick up as far as the Unemployment Rate is concerned. But i have to say, we heard that from the june fomc meeting. Im not sure how much news is in there. Also highlighting concerns about tech stocks, too. Right now, euro dollar, 1. 3550 is the level right now. We have uk unemployment and wage data this morning. It will be very interesting as far as inflation is concerned. Yesterday, 1. 7146 the level, so back above that 1. 71 level right now. Plenty to show you from the show. Lets find out whats going on in asia right now. Sri, all about china data. It is, indeed. Let me pick up from where you left off on the conversation about janet yellen. Yes, the currency markets and the dollar seem to pick up on the hawkish hints. But when the dust finally settled on the first day of her testimony, it was very clear the markets liked what they heard. She was sticking to the dovish script. It was a bit of a departure, but it wasnt a radical shift in terms of tone. However, we are seeing some pockets of weakness. The earnings season is of great interest, of course, to the asian markets. And the intel effect, stronger headlines figures and the more optimistic guidance. Helping some of the chips related issues, the nikkei still coming to the weakness towards the downside about 16 points right now. Lets talk about that china data that you are referring to. On the whole, it did poirnt to stabilization. Thats because we have seen the stimulus measures. But the clear and present danger is emanating from the property market, it still looks weak and a lot of economists are telling us that the economy still needs some further action from the pboc, some bolder measures, and theyre not ruling out a nationwide cut in the rrr. Take a look at the other markets that are outperforming. Jakarta markets, almost 1 . July the 22nd, is going to be an important date for your calendar for the political side of the spectrum, which should inform the future movement in these markets. Because remember we had a very indee sizive election about a week or so ago. So not a clear winner between jako jakowi. There should be a ruling on that the 22nd to declare a winner and put some of this uncertainty to rest. Then whoever wins can get down to the hard grass of structural reform in the economy. Overall, a fairley confident session out here in asia. The nikkei 225 and the shanghai composite are lower, centered of the chinese banking sector. And i believe this will be supportive to revise the liquidity conditions facing some other private sector, including the Public Development sector. And if this liquidity can channel through transmit from the interbank markets to the real economy, i think the effect would be very positive. And despite the property sector remains a risk, but the growth momentum can be sustained in the second half of the year. They look at the loan growth yesterday and they beat expect akdzs. I wonder whether we get to a situation where the credit creation continues to appoint where new loans are separately fully absorbed by the rollover. What then . That could be the case. Actually, in the first half of the year, we have seen many Property Developers continue to raise funding in the offshore markets. The issuance by then in hong kong or other parts of asia in the first half of the year. And at that point, the liquidity needs of the property sector. But actually, that reflects that the demand for properties in china has not dropped. Actually, in the medium term, the property demand in china will continue to be very positive because of the urbanization drive. What we have seen in the third half or in recent months for properties this year is a cyclical down turn of the property sector. The property cycle will come back, although we expect this time around the down turn of the property cycle may be longer than the one weve seep in the end of 2010. You only buy the china story, youre upgrading your forecast. I look at the equity market and i wonder whats wrong with investors if we buy into your story here. I think we are facing a dilemma. The growth rate may be a bit high, but we worry that the growth rate is too high. Were thinking about the overall message last year, we actually wanted to see that china growth lower in order to boost reform. It seems to us that the strong going in the Second Quarter comes with the reform measures, but rather the government like to see some shortterm boost of the economy to prevent the downside risk. We expect next year china should grow to set the target of the growth rate to 7. 5 in order to achieve the more Sustainable Growth hold out in the future. Lets see what the state council and mpc will approve a lower growth target next year. And you raise an important question. Is growth too high . Raymond, we have to leave it there. Cnbc and Institution Investors will kick off the Fourth Annual alpha conference today. U. S. Treasury secretary jack lew is set to deliver the opening keynote address. Other speakers include new jersey governor chris christie, and carl icahn. Tune into cnbc all day for coverage of the event. Israeli Prime MinisterBenjamin Netanyahu says it will intensify its gaza defensive. Yesterdays ceasefire has now collapsed. Hadley joins us now. This is one of the options that we discussed in yesterdays show, that the ceasefire doesnt show because of various factions and concerns in hamas. Where does this leave us now . A complete lack of leadership from hamas as a cohesive organization. Many of these hamas politicians dont understand that at some point theyre going to have to negotiate. At some point theyre going to need to talk about the Border Crossings. What theyre really concerned about is the Border Crossing with israel, the Border Crossing with egypt. So they understand that at some point, even if we have a hes fire, it will be nothing if we cant survive. Unfortunately, you dont see any leadership from anyone including the head of the government who is supposed to be in cairo today. But no one is giving a cohesive narrative. Theres no actual strategy. Yesterday i was saying to you whether or not this is an opportune time for them to target. We know that theyre now targeting hamas leadership and the air strike res ongoing, unfortunately. Israeli is condemning hamas, the u. S. Is condemning hamas for not coming to the table to negotiate. At this point, i dont think youre going do see in the near future any kind of solution. Well leave israel right there for now. Meanwhile, radically about iraqs efforts to form a new government. It seems weve had a break through. A minor one. Hes a moderate sunni speaking to a senior iraqi diplomate. Hes saying this is someone they can work with in the parliament, the deputy speakers, as well, kerd. So they really are trying on the face of it to have a more cohesive unity government. All of the factions involved. So until they get this settled, theres no hope for the future services to have a real strategy. The longer this takes, the longer were going to see problems in iraq. Can we make any kind of judgment about how more able to we are now to form a government based on the choice of this speaker and what this government will look like in terms of competition . Certainly, these are the first steps. Iran and saudi arabia, the neighbors, this is what they had wanted. This is an absolute stipulation on the part of them that we will be pushing sunni tribesmen to work with the new government. We will push other sunni publishenans to engage with the new government and use our influence to make that happen. This is a positive step in the right direct. Come up on todays show, we speak to the airbus ceo and foond out why he didnt counting on the ecb to deal with the strength of the euro. Joe biden says more investments are being made against russia. Plus, tackling the cost of safe travel. We find out why boeing is leading a new space race. And creating the perfect home via your smoen. We meet the founder of the Home Improvement app. Stay with us. Having the cloud allows us to rapid prototype a lot of ideas. Being able to pay as we go was crucial for a start up. Having to fork out a lot of money up front was risky. You can launch a feature really quick, and if the feature doesnt work, we havent lost anything and we can have something up and running in days. And this would not be possible without the cloud. We are now supporting over 25 million users each month. Ideas can be tried and tried again on the ibm cloud. The ibm cloud is the cloud for business. When youre voting for this summers top 100 shows and movies with xfinity on demand, beep, beep, beep. Watch to vote for family values on family movie night. This message paid for and approved by xfinitys family hits. Tell me the whole thing again, i wasnt listening. Watch to vote with xfinity on demand. For this summers top 100 shows and movies. And remember, the only thing to fear is fear itself, and spoilers for shows you havent seen yet. Global. Pandemic. Royal mail and tnt express are both being investigated over a possible breach of antitrust laws. Royal mail says it cannot yet determine the amount of potential losses, but has warned it could be material. Stephane joins us now. Welcome to london. Take us through what we know so far. Its a broader investigation on the french delivery service. Tnt is investigating weather this for a full year at least. We know it started in 2010. The french competition is looking at a possible anticompetitive behavior not only from tnt express, but also from gls, which is part of the Royal Mail Group and also from fedex. All companies, both of them, tnt and gls concerned that they received a statement of objection. And both of they say them say that its too early to estimate the amount and the range of the potential find. Tnt express says it cannot be excluded, that it will be fined. Potentially, they could be fined up to 10 of their we are talking about a significant amount. The french competition authorities declined to comment on the ongoing issue. They never make comments about ongoing probes. Its a case of watch the space. Yeah, watch the space, obviously. And theres a new competition governor, as well. We want to switch positions looking for competition in brussels. Stephane is going to come back. Well get you back very shortly. For now, thank you. Now, a holing company for the santo family has failed to pay more than 8 million in debt that it owed to portugal telecom. Portugal telecom says it will pursue Legal Options for securing the debt. However, it says the memorier remains on track after a memory ran du memorandum of understanding was signed. Were expecting to see some kind of a situation as far as the Espirito Santos family was concerned. Is this the ongoing fallout . Well, this is the owner of the bank. And it is expected that you see at the ownership level, as you know, theres a Family Office that owns now more than 20 . Its similar to what we saw in the past with italy where there is a foundation owning a lot of the bank and the foundation has financial issues. In this case, the ownership has been produced at the time from over 30 a year ago. Bank of portugal, the central bank, has been on the case for over two years. We have to distinguish. The danger is that having such a large stake, the owners may have directed the bank to land in an uneconomical way. And we know some of the exposure that they have to angola. The exposure was 30 of the angola portfolio, which represents 10 and we know tongue of the best lent companies. But in any case, if you take these numbers together, we have to compare them with a 6 that portugal has. This is not a systemic situation for pore tu fall. Lets separate it out now. What you were talking about there, we separate out the bank and look at the Holding Companies read now, citi was saying this morning were potentially looking at one of the most significant defaults of a european corporate that weve seen in many years. Is that what were looking out . Separate out the banks here. I dont think the Holding Companies classify the corporate. And the ownership of the bonds is also relatively limited. So the network placed over 2 billion from the Holding Companies. Half of that to reach investors. So there is around 900 to 1 billion exposure. Obviously, investors from these bonds at the Holding Companies, thats Going Forward of these bonds. So it doesnt have a financial liability to pay these bonds, but it could be fine because you have some of those to retail investors. Having said that, its unlikely regulators would find the bank and the bank in the past has made money and has been able to raise capital and may do so again as the central bank was saying today. So you have to take this into account. And weve said and the emergency has acknowledged now that the size of the exposure right now for bank santo has to a certain extent that the portuguese government has set aside the 6 billion euros. The structure of the Holding Company involvement, the cross ownership that were seeing in portugal right now is similar to what were seeing in italy. Whats the risk of similar issues even down to a few regularities probably at the Holding Company level happening in italy . Well, look, a lot of people have lost a lot of faith. Generally speaking, Corporate Bond markets are losing liquidity. Broker dealers are less able to trade, to take risk in trading because of higher regulation. So if you have a bad news in one country, can spread out rather quickly. But this is not a contagion risk. And the risk here is structural. Theres more Bank Branches than anywhere else in the world. The first thing you do is recapitalize. Thats the first line of defense. Then you need to consolidate and it takes time. And the stress test is coming through in november. There is a lesson from this. But its an opportunity for investors to get long on the good banks. So were still long on portugal. Great to get your perspective. Hold your supply of kitka tbars. Hershey is raising randy prizes 8 due to soaring commodity costs. Analysts say hersheys move could trigger similar announcements by nestle. With clock hat priets on the rise, will you cut it out . Are you kidding me . Or is that sugar rush just too good to give up . Get in touch with us via email, twitter or direct to me, jchatterlycnbc. Stay with us. Welcome back to worldwide exchange. China gdp expands in the Second Quarter, hitting government growth targets and beating some forecasts. Investors ask if more stimulus will be needed to support growth this year. Portugals telecom says it will pursue legal openings against Espirito Santos for missing nearly 900 Million Euros payment. Royal mail and tnt are under investigation. And taking a gamble, gtech rise as it coughs up nearly 5 billion to buy itt. Weve had uk unemployment and Earnings Data out this morning. Weve got three months unemployment coming out at 6. 5 . That was as expected according to analysts right now. Weve got the jobless claimant countdown, 36,000 in june. Thats at 3. 1 of the workforce. It was forecast down 26. 500. That was weaker than expected. If we look at average earnings, three months to may, plus 0. 7 . It was forecast also at 0. 7 . Do you think coming in line with expect ages and coming off in april, the three months to april average earnings was 0. 9 . So it is coming in from the three months to april right now. Weve got sterling right now at a session low, trading what 1. 7120 right now, the levels. So weak wage growth is the bottom line there. Unemployment rate coming in at expected, 6. 5 . Now, joni from cibc joins us now. Good morning. Good morning. Unemployment continues to drop. Becoming a bit of a headache for mark carney when we see weakness in wages. We scroll back to last summer when carney introduced the Unemployment Rate. Thats now down to 6. 5 . The labor market is conditioning to tighten.