and tokyo, where shares of softbank are higher. we'll tell you more live from the nikkei in about 30 minutes time. and morgan stanley is reporting second quarter earnings on the back of a strong quarter for u.s. banks. will the good news keep on coming? we'll discuss with u.s. bank analyst at 11:45 cet. plenty coming up on the show. feel free to get in contact with us, worldwide@cnbc.com is our e-mail address. we're looking forward to your correspondence today. ben bernanke did not rock markets as many had feared. he soothed tapering concerns saying any winddown of asset purchases depends on the economy. not a preset timeline. speaking on capitol hill, he said the central bank would be keeping policy flexible. >> indeed if needed the committee would be prepared to employ all of it tools including an increase in the pace of purchases for a time to promote a return to maximum employment in a context of price stability. >> one man who did move markets yesterday was famed activist investor nelson peltz. the founder of the tree fund man

part of softbank's interests. and clear wire's minority share holders were set to vote on the takeover deal next monday. the biggest loser on the nikkei was dentsu. shares tumbled more than 9% after the company announced plans to raise $1.2 billion in new capital. remember, yesterday's losses in china's coal stocks, all but forgotten. coal companies were the biggest gainer in hong kong today. they gained about 5%. now that's partly due to short covering after yesterday's sell-off. and in fact, the region's resources were broadly high toward thanks to stronger commodity prices. back to you in london. >> thank you for bringing us the latest. let's look at some of the european action today. we have green across. ftse is tracking higher by .9%. this is the market that sold off almost 1.2% yesterday. we're regrouping and claiming back some of the lost territory. the xetra dax getting closer. the ibex 35 further now, 17%. a little pressure this morning on borrowing costs in spain. this is linked to the portuguese story.

in japan shares of softbank had quite a volatile day of trade. rising as much at 1.7% before ending down by 3.4%. the turnaround really happened after s&p's downgrade of the stock by two notches. for the broader nikkei 225 also extended weakness in late trade. the index lost 1.4% today. meanwhile the region's resources shares also lost ground, atrackiatrack i -- attracting weaker commodity prices. china's largest gold miner tumbled almost 7% after profit warning. atlas iron and newcrest also took the brunt of the selling today. >> thank you for that. we'll catch up with you later. >>> we've been watching events, fast moving events in egypt. these are the latest shots of tahrir square. we're also getting -- we'll be out with the latest on that and reports of those deaths as well. tanks apparently still blocking the bridge. at the same time, tension is very much on greece as well. the eu and imf also discussi ii possible cuts as part of the fiscal program as athens has been in talks for the last weeks. amidst complaints from the eu it had not met r

softbank has been approved by regulators. it faces an uphill battle to gain an edge over rivals, though. sprint's base is only about half that of verizon and at&t. >>> the world's first credit card was in the united states in 1950. the cards have become ubiquitous and completely have changed the way people pay for merchandise. more merchants than ever can accept credit cards these days. that may also be the case here in japan. a u.s. firm has developed a system that allows ve s merchan accept credit cards. the new payment service is called square. many small business owners can't afford to implement the traditional credit card transaction systems but the point of sale gadget square could help make them more competitive. >> it's been fantastic for us. really worked out well. >> the man behind the innovation and the rapidly growing business is jack dorsey, also widely known as the creator of twitter. we spoke with him during his visit to launch the service. >> hello, how are you? >> who are you? >> nice to meet you. my name is

and companies such as softbank, mitsubishi motors and gsus reported their numbers today. the story live now from tokyo. >> japanese's softbank's net profit rose for the april/june quarter, more than doubling from a year earlier setting a quarterly record. they own a stake in gung ho online entertainment. its market cap has risen to more than $10 billion and thanks to hits like puzzles and dragons, game sales helped boost softbank's bottom line. strong sales of apple's iphones also chimed in too. looking ahead, softbank forecasts a record earnings for the fiscal year ending in march 2014, which will be useful as it invests 78% stake in sprint. meanwhile, mitsubishi motors posted 7% gain in operating profit for the last quarter, helped mostly by the weaker yen. but its revenue dropped 2% as new car sales decline in the european and asian market. the recall of outlander suvs was not a major source of spending for meitsubishi, but this recal did hit the batterymaker of the car. gsus. the japanese batterymaker posted a $1.2 million net profit for first quarter, down 88% from a

and do our best there. >> the plan follows softbank's takeover of major u.s. mobile carrier, sprint/next tele. also on tuesday, they said the operating profit grew more than 90% compared to the previous year. it posted a record high of nearly $4 billion. >>> japanese consumer products maker kao expects to lose about $100 million in sales in the current fiscal year. that is because of a recall in skin whitening products by a group company kanebo. >> translator: i deeply apologize for the inconvenience and anxiety we have caused. >> kao president said the group's operating profits for the same period will fall by about $60 million. sawata said the group will unite to prevent a recurrence. he said the company will fully support those who develop skin problems after using kanable's skin whitening cosmetics. about 2,000 customers in japan have complained of developing white blotches and other symptoms. the company recalled 54 skin whitening products in early july. >>> more headlines for you in business next hour. i'll leave you with a check on markets. >>> good bru

the sec has approved the softbank sprint clear wire transaction. there are three stocks for you right there. again, coming in from the sec. that is just breaking. all right. closing bell is 15 minutes away. disney big summer bet on a lone ranger could be turning into a train wreck for the entertainment giant. you will take a look at the big media stock. especially disney. and samsung gets hammered by investors after its earnings forecast mrs. estimates. is it an opportunity or a warning? ♪ ♪ cheryl: the technology sector managed to maintain decent gains heading into the afternoon, but some technicians are doing a little bit better than others. let's go to nicole petallides and the floor of the new york stock exchange for more. >> reporter: that is a good way to summarize. we are watching the text of the nasdaq doing very well, three-quarters of 1%. your index, when you take a look here and a name like dow. and in the week follows oppose the for some many months. you can see it to the downside. the story here is that earlier today we saw shares

softbank and sprint received final regulatory approval from the federal communications commission. yes, it includes clearwire. ashley: gold was up at the end of today's trading session. gold futures rising 1.8%. closing almost 1235 an ounce. it means the gold bugs recouped some of the laws losses they suffered last week. liz: north of the border police in quebec confirmed at least five people were killed when a runaway train carrying oil derailed and exploded in a very small town the tragedy could boost the outlook for pipeline operators projects such as the controversial keystone pipeline which some say offer an alternative way to ship oil. ashley: economists surveyed by reuters predicting the chinese gd. growth likely slowed for the second straight quarter to 7.5% between april and june. liz: don't count greece out. n europe, greece got a nearly 9 billion-dollar lifeline from the eurozone today. they must keep their promises to cut government jobs, waste and spending to get rid of all the cash. "after the bell" starts right now. ashley: let's get to today's action. we have patric

softbank ultimately had to raise the price. as a result the sprint stock is up 25% for the first six months of the year. after the deal was announced. so if you annualize that 25% is a 50% return. and then on the other side we try to say who can be taken over next? we ranked all the players in the wireless segment. leap to us was the smallest player, could no longer exist as an individual company but there were a lot of consolidation hopefuls. we bought the stake eight months before and we haven't adjusted it. well above the transaction happened and at&t announced that they would buy leap at over 100% premium of where the stock is trading. >> reporter: looking for what's next? >> who is next? >> you look at the industries and there's a lot of talk and chatter in the cable business. ma lone who is a very inquisitive guy took a stake. he want to use it as a vehicle to speak to other companies. he wants to buy time warner which is somewhat large. the other target is cablevision but it's a likely target but it's up to the dolan fam

with many corporate changes out there, the likes of the japanese player softbank taking over sprint and sprint in turn taking over clear wire, there have been concerns about what this means for the company's business model. the ceo has said this is the new offering. he's hoping to put a stamp on the market to guarantee the fact they're still committed to unlimited data. along with it, talk and text. you must ask what this means for the profitability in the industry. if you have data providers changing the way that they cost now, this means it could have potential implications of profitability and margins. it's got to be a win for the content providers. back to you. >> yeah, unlimited data for life and free nsa surveillance that goes with it. really a good deal. karen, thanks so much. >>> still ahead on "way too early," derek jeter returns to the yankees lineup. why his return may be short lived. >>> then we get a bear sighting in rhode island. has the local media there kept the public informed on this? you don't want to miss how one reporter wants to keep you safe at home. that story an

thanks to a terrific turnaround followed by a fabulous takeover bid from softbank, the japanese tech titan. but the sprint nextel, the specter of the stock to be good, it made us a fortune, no longer exists. now we have a new sprint. two weeks ago sprint closed on its acquisition of clearwire, giving the company complete control of a massive amount of wireless spectrum, which is the coveted commodity in this business. and then on july 10th the soft bank deal closed. soft bank paid $21.6 billion for a 78% stake in sprint soft bank. and soft bank gets control of the company. sprint gets a ton of cash to help pay for its big 4g infrastructure rollout. remember, that's what happens right now. you have to have 4g across the country. and sprint shareholders got $5.50 per share, plus 26 shares of the new sprint that we see traded for every 100 shares of the old sprint that they owned. however, something else happened when the soft bank deal closed. the new sprint became controversial. as a matter of fact, this stock is now a total battleground! on july 11th, the day after soft bank bought m

softbank is different. not a lot of significant overlap but some synergies. >> do you -- what is the trick to -- used to be, right, m&a used to be the adviser. you go to companies and say, how about this? this is a great idea. is that still what you do? how much are you strategizing for clients still? >> i think the key to being successful in m&a is to be a trusted adviser to your client. you want to be close to the ceo, the board, the decisionmakers and give them strategicthe advit to do a deal. >> how often do you tell ceos not to do a deal? >> more frequent than you think. it builds the relationship with the client a lot better because they're trusting your advice as being impartial. over the long-term, if you build a career as a trusted adviser, that's what you got to do. >> is it more difficult to do that when m&a is so lumpy? do you ever regret? have you ever regretted telling -- >> no, i think your advice may not have always been right, but giving the right advice on what makes sense for the company

breaking news, the sec given a go ahead for the $21.6 billion takeover of sprint-nextel by japan's softbank. they approved sprint's deal to buy wireless shares of company clearwire it does not already own. "after the bell" starts right now. david: let's get right to it. look at this, 150-point gain more or less. we have brian from belis chief capital advisors stock analyst. he says be a stock-picker, not a fed watcher. that is hard to do. scott shell lady, is in the pits of the cme. scott, i want to start with you . let's talk about interest rates. why didn't the interest rate spike spook the market today. >> that that interest rate spike is strength for the u.s. getting through their problems hence the dollar strength. i think the interest rate spike is a vote of confidence how well the u.s. might be doing comparing to the rest of the world. cheryl: brian, let me talk about what is the story of the day which is the job report. a lot of services sector are hiring, retail jobs are lower paying job but the economy can not grow especially with 195,000 jobs created. aren't we missing the point,

it's a hugely strategic asset and maybe even sprint softbank to enter the fray. wouldn't that be something. how could the analysts get it so wrong? because time and again they only look at the earnings per share estimates which were pretty pathetic in the cutthroat business that is wireless, but they don't look thea the strategic value of the enterprise. we had a spectrum shortage and they all need to get their hands on more of it. the only clump of spectrum. hard-charging, swashbuckling manager because he wants to augment his spectrum. you know what? i don't mind owning that one, either. in reality this left for walking dead company wasn't left for dead at all and the valuation wasn't set by the analysts and they are way too bearish and they kept you out of a good one. thanks for nothing. all you say to these doubting analysts is you should have covered it, too, hewlett-packard, and here's a dow component down 44% this year and it's an epic 85% run for the last seven runs and done much without the analyst community. and news for clay nation death match, but i li

it's a hugely strategic asset and maybe even sprint softbank to enter the fray. wouldn't that be something. how could the analysts get it so wrong? because time and again they only look at the earnings per share estimates which were pretty pathetic in the cutthroat business that is wireless, but they don't look the strategic value of the enterprise. we had a spectrum shortage and they all need to get their hands on more of it. the only clump of spectrum. at least worth grabbing is dish. hard-charging, swashbuckling manager because he wants to augment his spectrum. you know what? i don't mind owning that one, either. in reality this left for walking dead company wasn't left for dead at all and the valuation wasn't set by the analysts and they are way too bearish and they kept you out of a good one. thanks for nothing. all you say to these doubting analysts is you should have covered it, too, hewlett-packard, and here's a dow component down 44% this year and it's an epic 85% run for the last seven months and done much without the analyst community. and news for cla

>> when you really look at this deal, this is a huge move by softbank, but now the deal is done. people understand, it probably closes the 8th or 9th of july. stock is probably not going anywhere. there's no volume in this name. i think it's stuck on pause. now they will be the big competitor with at&t and verizon but that's where it's going to be around the $7 range. >> we talked about the banks doing quite well today. financials the best performing seconder. a c suntrust is up almost 4%, zions, and huntington bank up 3%. >> that yield serve steepening. i was buying as well. what are we up? somewhere between 15 and 20 basis points between the two-year and the ten-year already. that getting steeper is great for these guys. they don't have exposure to many of the bad parts potentially and that's why they're outperforming. >> another up day for oil. crude bubbles to a fresh 14-month high. lets get more from jackie deangelis. >> good afternoon. crude prices up more than 1.5% on the session, and, in fact, we're seeing crude trade above $100 a barrel for just the third time in a year.

they sold 70% of shares to softbank. oppenheimer is out with a note saying restructuring of the network and balance sheet remains on track. they do expect a few more messy quarters. the stock up about 2% right now. kelly, back to you. >> all right. thank you, josh. blockbuster comments from a saudi prince who says north american shale oil is a threat to saudi oil production. what it could mean for the future of middle east policy when we come back. golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. ♪ a quarter million tweeters musicare tweeting.eamed. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together. [ male announcer ] come to

corporate earnings are due from softbank, mitsubishi and ana. taiwan's htc also hands in its second quarter report card. >>> a $35 billion of equals to create the world's biggest advertising agency. the group will be called publicis & omnicom group. they share the role of ceo for positi 30 months. speaking after a press conference in paris yesterday, the ceo of publicis told cnbc the deal would benefit everyone. >> there is no one weak partner, and there is no one who has financial difficulties or anything of the like. so we believe that this will be a great operation for all our people, our clients and our shareholders. >> that was in paris yesterday. joining us on the phone from paris right now is david jones, the ceo of havis. i thought i saw something about you saying something about pigs and flying. does that mean that you were surprised? >> i was very surprised by the merger. i think, "a," it was one of the deals most unlikely to happen in the industry. i don't really see how this benefits the 130,000 employees who come together, all the c

on to japan, mobile carrier softbank was the outperformer on the nikkei 225. soared by 5% after reports that it will raise the bet 35 million u.s. dollars to stock new smartphone hand sets. south korean technology shares also rallied ahead of earnings results. lg electronics gained almost 4% and samsung electronics rallied almost 3%. let me quickly show you gold miners. they continued to gain stream, tracking the rally in gold prices. australia's new crest laser gold and kingsgate jumped 3% to 5% in today's session. back to you. >> thank you so much for that. >>> let's take a look at what's going on with the european markets because we did start in positive territory, although we are losing some of those earlier gains. the just modestly higher by .1. we are seeing gainers and losers evenly split. the cac 40 showing gains. the ibex 35 strong, we'll come to some mna stories later on. the ftse 100 in the uk flat, remember that yesterday we were trading at seven-week highs. this morning, we are getting a little bit of support from those chinese comments as well. n

majority of sprint's shares are being bought, as you know, by japan's softbank. >>> check ahead for what the markets will look like with the jobs report fast approaching. joining us now is tim holland, portfolio manager and partner at cameral funds. can you explain the last couple of weeks and what we have seen? last week, yesterday described some of these people, i guess richard fisher called them, i don't know, pigs. wild pigs. i think he meant -- >> feral. >> spoiled brats. did the traders try to get out ahead of short-term moves and don't want to be long or maybe want to try to benefit as it goes down a little? but, geez, just the idea that some day we don't do 85 billion, we go down a couple hundred points and the fed comes back, it says, we're sorry, guys, we didn't mean to spoil your parade, what did you make of all of that? >> it was a pretty sharp move to your point, joe. i think people are just spooked about what happens when the fed, to your point, isn't as accommodative. saw the big backup in rates that killed the home builders, killed anything tied to the consumer, tied to b

softbank controls 80% and there's a plan to spend a great deal of money there. then you have verizon last week increasing its capital expenditures beyond what had been anticipated. at&t, we'll find out what its cap x plans are if they've changed at all after the bell. certainly, a lot of competition in wireless. why else is that of importance? well, to those who might make the argument you really need three main players, not four, in order for there to be full competition, if you see this kind of competition with four, the u.s. government might not be as willing to allow some more consolidation. perhaps between a sprint and a t-mobile as has often been rumored. >> yes. we know they're scrappy, right? they're scrappy, but it's weird to think of what's going on between these two and how they might have been one in a different world. >> without a doubt. without a doubt, exactly. u.s. government, of course, thought otherwise. we know sprint and t-mobile have also talked about it. nothing says that that deal won't happen down the road. but they are being more aggress

he made money off the softbank sprint deal and the t-mobile deal. 's been an activist in some cases. he's been able to use positions to influence the outcome of some of these deals. less debt, for example, higher cash component to a deal. i don't think that's going to be called for in the case of leap because they seem to like the deal as it is and as it is it's an 88% premium. so that's nothing to sniff at, but you're right. since 1994 he's been a merger and it's something he's continued to find success in. >> it's interesting because at the same time he's more involved in this trial of fab fabs. being short housing is as much in the news as being long. >> he's very private, never does television. we'll get his response about all the publicity. jack lew kicks it all off at delivering alpha. the third anniversary of dodd/frank, look for details of his road map of financial regs and he sits down with steve liesman. starts live on squawk box 8:25 a.m. and we'll kick off a very busy day. >> let's get to john harwood with breaking news in washington. jo

softbank's purchase of majority of sprint shares has reportedly been given unanimous approval by the fcc. the commission also giving an okay to sprint's purchase of the shares of clear wire that it didn't already own. we're talking about clear wire. >> the japanese buy our airwaves and we don't care -- >> china hasn't bought our bacon yet. hold your horses there. we may be eating horse if we never see pork again. commuter rail service will resume today in the san francisco bay area, even note two sides in the labor dispute haven't reached a new contract agreement. and the b.a.r.t. system should be up and running this afternoon with the two largest unions agreeing to extend talks. the system has been shut down since monday. and a look ahead at the jobs -- >> we should get a quick look ahead at the jobs report. >> all important here. >> all important. >> all eyes are on. >> all eyes are on it. >> the teleprompter. is that what's happening here? mark vintner, senior economist at wells fargo securities. >> suspenders. >> he is wearing suspenders. >> joe gave us the number 160. i've seen

remember, softbank now controls sprint. it ended up being, what, 80%, right? but this morning or yesterday, they announced a plan to roll out a new pricing plan, unlimited -- >> it's going to be a price war. >> yeah. >> unlimited data, excuse me. >> verizon's only a few points off its high. no one seems to believe there will be a price war. at the same time, verizon, they're on the hook for how many iphones? >> yeah, craig moffitt's known from a couple days ago has gotten a lot of attention. it's not clear that they're going to have to pay them for them. kudos to him. he started his own research boutique and going through filings from vodafone from 2011. all right. well done. >> you have to destroy iphones to preserve it? you know, kind of like what they did with agriculture in the '30s? >> it was a big number. >> it got a lot of buzz yesterday. a lot of buzz. what was the one i wanted to mention with you, jim? oh, kroger. the downgraded kroger. they say the relative overperformance -- outperformance is the biggest since the '01 recession. it has run up a lot.