i'm carolin roth. these are your headlines from around the world. chinese markets rally as premier li keqiang draws a line in the sand. >>> vivendi trading higher as they confirm talks with abu dhabi's etisalat over the sale of its stake in maroc telecom. >>> elsewhere in the sector, kpn higher in amsterdam as sales of its german unit to telefonica deutschland. >>> a pair of u.s. tech stocks could be in the spotlight today as netflix fails to wow analysts with latest results and investors get set for another quarterly decline in apple's profits. >>> good morning, everyone. it is a brand-new edition of "worldwide exchange." and on today's show, turkey's central bank could take steps to ease investors' fears in its latest rate decision today after a popular protest rocked markets last month. morgan stanley's head of economics for the region joins us at 10:30 cet. and the bull run is on for u.s. mna according to a new survey which says co confidence is on the rebound. we bring you the release first on cnbc. that's coming up in the next hour. >>> and te

let's get out to carolin roth in zurich. the response has been extremely solid today. >> yes, absolutely. this was a very good set of numbers. keep in mind the bank had prereleased last week, but what is really driving the shares today is the strong capital levels, coupled with the announcement of -- surprise announcement that ubs is going to be buying back the equity from the snb fund. this is the toxic asset fund said up at the height of the financial crisis five years ago. ubs closing very important chapter in its history. and i asked the ceo why now was the right time to buy back the equity. >> i guess the positive developments in the last few months allowed us to take this important decision for us, which would allow our capital base points the option, exercise to increase our -- improve our capital tier one ratio by 70 to 90 basis points. >> to me, it seems look a huge success for the swiss government, for the snb and you too, would you agree? >> we are pleased with the outcome, yes. >> strong investment banking revenu

let's get out to carolin roth for more. in zurich on the ground. tell us why the reaction has been a little cautious. >> there say couple of reasons here, karen. first of all, shares in credit suisse had a really good run since the beginning of the year, up by some 30% versus 16% on the smi, the general market here in zurich. secondly, some analysts have pointed out that investment banking results, while they were strong, they could have been even better, in light of what the u.s. banks have been reporting. citi points up that fixed income revenues were down quarter on quarter versus a decline of 22% for some of the u.s. banks. but let's not forget these are very strong, very solid numbers. analysts do point out a very strong capital position, good inflow and improving margin picture. this is how they felt about the numbers. >> it was a strong result for us in the second quarter. even given particularly the volatility in the market itself. a billion five in pretax, up 38% from where we were a year ago. over a billion in net income and that was a 10

carolin roth is standing by in london. are people watching the markets or just watching the royal baby at this point? >> you know what, there is all this excitement about the royal baby, yes, it is a boy, but we still don't know what his name is going to be. james i hear is one of the front runners as far as the bookies are concerned. let me show you what's going on. we are higher. but only modestly so. a couple of things at play here, becky and joe. encouraging comments about china from the chinese premier. we also got a lot of earnings which were better than expected. and a lot of m&a activity in the telco space. let me just show you where we are in terms of the individual markets, the xetra dax moving higher by 12 points. ftse 100 up by a third of 1%. the ebicibex in spain up, a smo t-bill auction, two of them with borrowing costs falling significantly. the psi in portugal up by 1%, continuing on from yesterday's very strong gains. now, let's take a look at some of the individual stories which are making the headlines t