Luxottica. And both sides of the pond battling low wage growth and pressure to rate hikes. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. Very nice to see you all today here on this wednesday. Lets take a look at some of the key movements on the european market. Carlsberg has warned that 2014 will be even worse by its key russian market. They expect low to mid Single Digits falling operating profits and says it may shop some brewery necessary eastern europe. Heineken, meanwhile, huge disparity. 10 chang in the performance. Heineken reported better than expected profit in the first half of the year citing progress with its cost saving program. This is the worlds number three brewer. But i did say it was not immune to headwinds from russia. Groups and volumes increased in all regions except central and eastern europe. Mining sector, bmp billiton, failing to get some money back. That was why the shares declined to get better. In the black after swinging to neat profit of 1 is. 72 billion in the first half of this year. The reason why the market liked this one and didnt like bil billyton is theyve announced a share buyback. Its set to take place over the next six months. Lex ott ka, if you think the brand of sun glass you own is no owned by luxottica, its pretty much anyone and everyone who is in the eye wear market. Several newspapers have cited disagreements with the companys chairman as the reason for the ceos exit. Balfour, theyve rejected a third merger proposal from Construction Group carillion but says its open to other strategic opportunities. Its a put up or shut up deadline. Theres your act ra anymore for the day. Lets take a look at these european indices. A very strong day on monday. We had an okay day on tuesday. Wednesday, we clearly run out of steam, but there doesnt seem to be a lot of impetus to the downside. Participant research mode. The volume, as one said, was pathetic. Theres not a lot of buying going on on the uptick over the last couple of days. They werent gray stateside, either. Well see it later in the show. Talk about the u. S. Instance, some of the volume that is occurring is panicky shorting progress. Put on short positions and are now having to cover that 37 the ftse 100 is now having to be a complete and upper laggard. Is that because it has the basic resources and that exposure to china and that problem about overcapacity, ill leave that one with you. The xetra dax, of course, which has a disproportionate exposure to whats going on in russia. Down 0. 3 . The cac 40, down by a similar margin. Did you see that air france announcement . We might talk about that later. Air france, klm, it was ten years ago. At the time, i remember thinking when i was just a young man in Business News, i remember thinking, where are the shortcuts . Where is the big efficiency gain toes be made out of klm . Well, there werent. Now theyre talking about a big strategic turn around potentially with major cost cutting potentially in there, as well. The spanish assets on a bit of a tear, actually. Down 0. 2 . Have a look at some of the bond markets. What are we got behind me . There you go. Talk about a tear. What have you got in spain . Not a lot. Youve got nothing priced in with the risk going to an economy which has 50 youth unemployment, 26 over unemployment. 2. 4 is the yield. A lot to see what he has to say thats going to protect these assets. Italian paper, again, what do you want for that . 2. 6 . And remember berlusconi . You remember him. 7 the yields were trading with him. Now its a much improved picture . No, it hasnt. 2. 6 . Tenyear france, this is one of the most surprising things about this entire eurozone crisis over the last six years or so. Nobody ever tested the french debt, did they . And what do you get for your money . This is a safe haven. 1. 4 for france and france is the one that you always get from the economists, isnt it . They havent had their structural reforms, yet their paper trades at 1. 4 . This is where you get to put your money if you want a safe haven. No wonder people in germany are thinking about a property as a place to put your money to try sxvth some form of yield 3 , 4 , 5 on property yields. That is the pathetically low yields you get for earning german paper p you dont even get 1 . Foreign exchange, im almost out of breath, euro dollar, 1. 32. The aussie dollar, under a bit of pressure, 0. 9287. Were going to look at o s statistic webs were going so look at bank of england minutes, as well. We have a heavyish buyer on the united kingdom. Very interesting stats. Selfemployed, whats missing from the omf numbers . Well talk about that with our guest in around about to minutes time. Ive mentioned asia, havent i . Well look at those with Sri Jegarajah who is standing by in singapore. Sri, are you still there . Youre the last man standing still. They always get their pound of flesh from me, steve, you know that. Put up or shut up. I like that. Not a great deal of convicti conviction. Really, this is because investors are waiting to see what these major risk events, not only in this part of the world, remember, we got flash pmi numbers coming out of china from hsbc. Private forecast tomorrow, but fed minutes and, of course, you were talking about this, steve, an allimportant janet yellen address in jackson hole rounding off the week. We did get trade data out from jap japan, which did help to form some moves on the yen. Yes, it was quite a robust figure on the ex fort side, rising almost 4 in july. So recovery there. But a very different picture if you look at the trade deficit. That widened largely on account of the fact that japan continues to suck in a lot of fossil fuels on this post fukushima era with that hole in the deficit. That put the yen under some pressure. We were talking about that cross early on today. Dollar yen, gliding to a fresh 4 1 2 month high above 103. 15 earlier on today. So watching that cross. Elsewhere, no gray shade, really. You were talking about bhp and kiss disappoint that they didnt return any excess earnings to shareholde shareholders. That helped to drag down the broad index. Bhp is an index heavyweight. Shanghai composite, the weakness there, concerns about ipo activity which may breed some interest from those existing issues. Thats one of the reasons why the shanghai comp is on the defensive. All volume until we get some clairety tomorrow from china with the flash hsbc pmi numbers and jackson hole. Steve, back to you now, sir. Thank you very much, indeed, for that. How many of Commerce Bank group do you think the German Government has got . It has over 17 . You think commerzbank and you think all of those problems that weve seen throughout the eurozone and concerns about capital, concerns about zombie loans and all that. Did you know this stock is up 38 over the last 12 months . Yes, its coming off a bit. Not bad considering all the problems that this company has got. There you go. My screen says 38, but its 33. The German Government says its sees no reason to sell commerzbank stake now. According to an official, German Government has received the regarding the bank state says the finance minister. Maybe i need to read that one and get Geoff Cutmore to interpret it for me. Let us move on. Islamic state militants have released a video reportedly showing the beheading of a u. S. Journalist. The white house says its urgently working to verify its authenticity. This as the United States says it could extend its campaign of air strikes to prevent militants from taking control of a dam in anbar province. Hadley joins us now. Hadley, i dont know where to start on this one, really. You and i talked previously about pico. I want to mention it again because this is an artificial set of borders created by the british and the french shoring up old ottman empires and what have you in the midst of the first world war. Why does the islamic state, which is trying to be created, have any less credibility than the borders created by pico . The extending of this islamic state. The difference, i would say, is that under pico, they did make some attempt to have some kind of Representative Government which was not based the government fixed by western powers, correct . Correct. But from their viewpoint, from their world view in the 1900s, that was the best way to go. Colonial, though, trying to dictate who is in charge in iraq, who is in charge in syria, who is in charge in the middle east. Isnt that where the problem comes . Possibly. But i think theres more nuance from that. It isnt just all about oil. What we know is theyre ramping up Oil Production in the south and then theyre going to add 200,000 barrel capacity to this Iraqi Kurdish pipeline that goes to tehran and turkey. So Oil Continues to flow. Its just now we know, we understand this is a problem thats going to impact everyone in the west because everyone can, you know, these people have european passports, they have american passports or mobility. What happens next in the shortterm . Is there a mission kreeg from the likes of the united kingdom, the likes of the america . We already know that there are more advisers, we already know that the pentagon is looking for contractors, and i think that theyre looking at every avenue to get more people on the ground. To the iraqi army, to the kurdish forces, as well. Even if theyre not giving this a name, they understand this is a problem the u. S. Is going to have to tackle. Hadley, thank you very much. Lets tell you whats coming up on worldwide exchange. Could the German Property market deliver some bang for your buck . Needless to say, we will get some information on the prices in frankfurt with annette in a short while. Plus, your holidays, only 51 of americans apparently take a paid vacation he year. Well find out why people are reducing their fun in the sun. And as apple hits 100 for the First Time Since its split, well tell you the other tech stocks that could be a smart choice for your portfolio. All that and plenty more right here on worldwide exchange. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com welcome back to worldwide exchange. Geeley autos down 28 as consumers continue to shun domestic brands in favor of foreign namps. Exports didnt help, either, falling 42 . The company that owns swedish car brand volvo saw exports fall 32 . Lets talk about hertz. Its tapping the brakes on its full year forecast. The rental company now is said to be well below its previous guidance. Operational challenges, including Record Number of vehicle recalls this year and costs associated with a continuing order. Shares of the company fell 13. 7 this year. They fell 10 , as you can see on the screen there in afterhours trading, 13 . Lets take a look at what hollande is saying. When im not reading magazines in germany, im often reading this is president hollande saying he wants to accelerate reforms in france. I bet he does. This is the worlds one of the Worlds Largest brickmakers. What did they say their problem was . Not the uk. They said their problem was holla holland, the dutch market and the uk now. Theyre going to launch a plan to boost home building. Frances hollande announces tax reform, Welfare Benefits reform to help lower income households. All right. Germany is a nation known for its rental culture. This has been some property, not anything else. But in an environment of ultra low Interest Rates, people are turning to the Property World in search of a better return for their savings. Annette has been looking at how the trend could be creating a bubble after decades of steady prices. Gold, that is what germanys property book across some of the countrys biggest cities have. The prices, for real, things are so high now i simply cant afford it. Its too expensive and i am not quite sure that i will stay in germany. Where are you from . From germany. Offices are being transformed, turned to up Market Apartments and city districts are emerging. House prices, which are barely moved for decades, are on the rise and Property Values have jumped more than 42 since 2007. Its more and more attractive as a place to live and to work. We see a strong increase in populations and, you know, in the last three or four years. This happens in like five to ten years. Half a Million Dollars is buying a really nice onebedroom apartment in one of those buildings. Behind me, 50 to 55 square meter. Which equals into a square meter price of more than 6,000 euros with another tip of frankfurt. The bundes bank has warned house prices are in danger of ov overheating by as much as 25 . The bank blames both foreign buyers and the low Interest Rate environment of fuelling this rise. But the ecb could be contributing more to the environment than just low rates. The banks regulators is planning to hire more than 1,000 new people and keeping property in high demand. So as they curve germanys rental culture or save us just looking for a place to put their cash . Annette, you and i both know gaylord spartanshaun. Isnt that why theyre all buying property . Well, thats probably one reason why a lot of people are going into the property market. It makes perfect sense to invest the money and not have it sitting on a bank account. Rather, property markets are booming. But if that boom is here to stay, im going to discuss with my guest. Thank you very much for joining us. We were just discussing whether that Price Development weve seen in recent years will continue for the next years. Yeah. You know, annette, here in frankfurt, we have the last few years the markets and property markets here. The prices increased by 50 the last five years. You see still a development where the price increasing continues in some stock markets, but not everywhere. We have to look for where to invest now. Looking at those real estate papers in the internet that a lot of the new construction is still waiting to come to the markets, still in the states of being completed. Will that change the picture . I think it will make the blind side a little bit more the pressure out of the demanding side. Because we have a lot of new construction areas here in frankfurt and this will stabilize the market. But i dont think that the prices will drop down. Yeah. So in general, looking at the german market, not only frankfurt or munich and hamburg, do you think were already in an overheated territory . Not overheated. But maybe partly overheated in some area. But i think we have in most of the cities, we have reached the peak because a lot of people cant afford the prices any m e more. But you have to look for to divide the city because every city has its own story. If you take frankfurt, we have a lot of demand coming from new stuff like ecb and so on and they cant afford the prices. So what do you think, actually, that ecb people coming here only for two or three or four years would rent and not buy, is that the case . No, because the situation here in germany is that usually a german buys a property or a flat. If you look at 10, 15 or 70 years. But in other european countries, we buy and sell. I think we have to learn here in germany, we see a lot of new ecb stuff are buying, not renting. Thank you very much for your inside here. You see, steve, its so good to be a member of the European Central bank or at least an employee because they have nice packages. Indeed, yes. Thank you very much indeed for that, just talking about germany briefly. A german official, the government says the 2014 growth forecast of 1. 48 despite the contraction in the Second Quarter. Optimism at the government level. Im just on the website, actually, on cnbc. Com. Im taking a look at what 500,000 will get you around the world when it comes to property. Not a lot appears to be answer. But have a look. There appears to be some good stuff in there. Rio looks better and johannesburg, as well, if you want to live in south africa. But of the others, not a lot. But if youve got a little bit more to spend to, say, 400 million, you could buy this one, the sky penthouse located in the managerial heirmillionaires playground, monaco. Features including spending 400 million, apparently it includes a water slide. I cant imagine that will be top of the list. It takes you from your dance floor to your swimmi inming poo. Anyway, it has a kitchen on each floor, as well. Who could ask more . We want to hear from you on this. If money wasnt a problem, how would you pick out your home . Join the conversation here on worldwide exchange. Get in touch with us. Email, worldwide cnbc. Com. Also in the twitter sphere, as well, cnbcwex. So still to come on this show, forecasting the timing of the first bank of england rate hike has been exciting business this summer. Could we get a clearer steer from the minutes of the last mpc . Stay tuned and find out. Heineken is in the green. Investors after balfour rejects a third merger bid from Construction Group ka rillon. Confirms over its u. S. Business. And stocks slump in the land on a report the ceo could be leaving due to differences with the fashion groups founder. And central bankers on both sides of the pond battling low wage growth. Find out if bank of england policymakers think its time to move where we will break the latest Meeting Minutes any minute now. Weve had a couple of long days if youre long the European Equity market. The ftse down 0. 3 . The xetra dax down by a similar margin. A little bit more accelerated selling over in paris with the cac 40 down 0. 4 . And the ftse mib are already under a little bit of pressure, down 0. 2 . Lets have a look at