we are just replacing it for today's price. balance at 60 next year. we know that number is going to come down now. we are able to balance below 60 when prices are down. ryan: you mentioned iran. what would bp like to do in iran? i want to understand what the sanctions are. ryan: a lot of people think it is easy to do business in iran, but that is not the case. what kind of obstacles, deal price aside, are there for bp and say you as an american running bp? bob dudley: some of the sanctions have not been lifted by the united states. that makes us careful. there's lots of things out the world that are competing for capital. iran may be one but mexico is there, brazil is trying to
attract investment. there are lots of places we will invest based on what is attractive to our shareholders. ryan: sony people i talked to said the service contracts t hat iran is offering now just are not competitive enough. you agree with that? bob dudley: hypercompetitive world is oil and gas. whatever is being offering had to be very attractive. ryan: what you are hearing as iran speaks to the market, how do they compare? you mentioned mexico. are the terms mexico is offering more competitive? in mexico: the terms are vastly adapted to the change in oil price. i do not think any terms are out there that are clear yet for anyone. i think mexico -- it will be clear in the second half of the second quarter. ryan: some people in the market think that russian oil will decline. that million and a half barrels and excess supply, that will
take it off the market. oilou see russian output climbing? -- declining. think flat is more likely but i do say u.s. -- see production decline. everyone hasng been speculating the last week and half is will russia do a deal with opec and other non- opec producers. what do see the likelihood of that as? bob dudley: as i talked to both sides of that, for example in davos, i don't think i see that happening. ryan: going back to the oil price that you base your entire business on, how convinced are you that you understand where the oil prices going to be? because no one saw this coming, did they? face oury: we don't
entire business on the oil price. business.big gas 50% gas today. by the end of this decade, we will be 60% natural gas. we cushiony cycles. it is not all oil. like everyone we come -- we have a lot of oil. we have watched the supply and demand figures carefully. our economics group which will do in outlook shortly, gave us late 2013 that this was coming. we have been saying that for some time. lower for longer but not lower forever. ryan: shares are down over 7%. what do think shareholders are telling? to dudley: people continue be concerned about the dividend. quite friendly, i did not see any reporting on the operating cahsh flow. when you look at these percentages of big oil companies
when you get earnings down to a 0 point. the percentages change off of estimates can be quite dramatic. i think we are 300 or 400 million of analysts estimates. that is very different in terms of percentage down to zero or the 24 range. i hope people look at the cash flows coming through. they see the actions we are taken. we have got the growth aspects and we are going to continue to maintain the dividend. the commodity cycle is not over. month into the first quarter. we know what happened in the last quarter of last year. you know now, how are you feeling about how this quarter is going to stack up compared to the quarter the year before? bob dudley: the prices are, looks like they are going to be lower this first quarter. that'll certainly be below next year.
you will see this with all these oil companies. earningsl be lower but, again, we are very long-term business. we are investing for five and 10 years out. got a cycle of projects. i do believe we will be tightening and we will see a rise in oil prices. we are for. for everything but i am optimistic about it. been through these cycles too many times. ryan: the job cuts you announced today, could there be more to come if this low oil price persists? bob dudley: the upstream -2015 work going on around the world. today you see there will be more this year. there is an additional 3000 and the downstream areas, which is to really make our downstream operations efficient. in many places it is an inflationary move.
these are sustainable cost reductions which are going to make a stronger. ryan: bob dudley, the chief executive of bp, speaking with us on a day where earnings missed, a decline of 90% year on year for the fourth quarter. saying that, hey, this is a long dip in the commodity cycle but they are reducing their costs, and they will persevere. francine: thank you so much. that great interview with the bp ceo. talking about oil prices and mr. deadly saying he expects supply and demand to rebalance in the 30 and - the third and fourth quarters. now, these are your headlines this morning. volatility rules the market. turmoil could derail a march hike. as ubs ceo describes the volatility as paralyzing for investors. >> people are happy with their asset allocation in general. but they are paralyzed by these
high volatility. and all the geopolitical and macro economic news they see. texas senator wins money -- monday worun off. as hillary clinton clings to a narrow lead against bernie sanders. bp, a 91% drop. we just brought you that interview with the ceo, bob dudley. ♪ liveelcome to "the pulse" here in london. i'm francine lacqua. let's get you up to date on the markets. we also had some unemployment figures out of germany. they were much better than expected. some of the highest on record from the german economy, for the months of january. let's bring you up-to-date with the biggest movers. bp on the ftse 100, the biggest loser. european stocks are decline.
we are seeing a lot of red. let's gauge a first word news. first news.t yout to nejra: stanley fischer says the central bank will not decide in advance how many times it will raise rates this year. >> the committee has repeatedly indicated that its policy decision will be data dependent. will adjust policy are properly in light of the economic and financial events to best foster conditions consistent with the attainment of our employment and inflation objectives. shares dropped this morning to the lowest level since february 2015, despite reporting fourth-quarter net income that beat estimates. analysts say underlying profit disappointed and revenues and
investment banking and wealth management were weak. speaking to bloomberg, the ceo well placed to deal with negative interest rate. >> we are getting used to managing our negative rates environment for at least one year but even more if you look at certain businesses through the swiss franc. also, you see that in the way we manage our balance sheet in our deposit base. to manage this kind of challenging environment. nejra: bp reported a 91% decline and fourth-quarter earnings, a mid the global oil rout. million,taled $196 that missed the $800 million estimate. global news 24 hours a day powered by our 2400 journalists around the world. francine: texas senator ted c
ruz won the republican caucus in iowa. turning to the democrats, it looks like former secretary of state hillary clinton has won against senator bernie sanders following a very tight race. here is what the candidates have been saying. mr. trump: we finish second and i want to tell you something, i'm just honored. i want to congratulate ted. senator cruz: tonight is a victory for the grassroots. tonight is a victory for courageous conservatives across iowa and all across this great nation. bernie sanders: while the results are still not complete, it looks like we'll have about half of the iowa delegates. mrs. clinton: i am excited about
really getting into the debate with senator sanders about the best way forward to fight for us and america. francine: let's go straight to our international correspondent, hans nichole. s. hans, want to the results now mean for the party? have they certified clinton as the winner? hans: they allowed hillary clinton to make the case she wanted. she basically lost by the tie a half a news cycle. everyone goes to bed thinking it was a tie. that may have implications for new hampshire because you never know what the independents are going to do. these are people that are not republican ora democrat. in the past, they try to negate whatever the result was out of iowa. at least on the democratic side, there is not a strong result to negate. that means they could play
heavily on the republican side which gives you the third place winner rubio. he will try to attract them saying he is a real, serious candidate not ted cruz. not someone full of bombast like mr. trump. he has a giant bull's-eye on his back because he will have the ,oderate candidates, mr. kasich jeb bush from florida and chris christie from new jersey, taking rubio.t 0-- attacks at we basically have three races. we still have a democratic race but on the republican side we have two races between cruz and trump, and who will be the most viable challenger. francine: what does this mean for new hampshire and the rest of the contest? what actually of happens in new hampshire, there is a week to digest this. overnight there will be stories on the winner.
ted cruz will get a bump. rubio a will get a bump. look for the behind the scenes reporting about what is happening inside the hillary clinton campaign. there is a report out saying the clintons, former president bill clinton and hillary clinton, are disappointed in the race. any tactical shift, any change in their campaign to shake things up, that is an indication they are very worried. both sides are bracing for a democratict as the side, this could go a lot longer than anyone expected. it is worth noting that bernie sanders is passion translated into actual votes instead of just high poll numbers. francine: thank you so much. hans nichols there. let's welcome the senior managing director of blackstone. he's an amiercan living in london. i know you have british citizenship., but this is a massive circus one that is extremely exciting.
but when you look at u.s. politics, do you now focus on marco rubio? >> i think the marco rubio is a good move, because it gives the republican party sort of a sound option that it was looking for. as you know, there are a lot of people within the republican party you're uncomfortable with the trump and curruz choices. the marco rubio option a very credible option. now republicans and what they have done in iowa have thrown it open, and for the moment you can say it is anyone's race. francine: so, which is why we has seen very few people drop out of the race at this point. what does it mean for hillary clinton? she has a very, very narrow lead in iowa. the bernie sanders voters actually showed up, which some of the donald trump voters didn't. he's now a serious contender for the democratic party. >> the good news is that people
got out and voted. it shows the americans still believe in the democratic model. it shows there a many americans right now and this gap between the rich and the poor, those are very disenchanted with the obama white house and disenchanted with the recovery or the lack of seevery, who sdon't themselves participating in the american dream, those of the people that sanders appreciates. the newhe report about york times article and i can see where hillary clinton is going to be very frustrated. because to a certain extent this is déjà vu. what she has seen happen in the previous time with respect to herself and barack obama in iowa. the concern is people were expecting this to be more of a coronation and it's not. it's just a reaffirmation that the democratic process is still very much active, even in the democratic party. francine: it also show us, you
talk about the polls. we had the election last year in may when no one predicted a landslide victory for the conservatives. do you even believe polls? because it depends on who shows up. >> i think you are right. what people actually do when sometimes they think more carefully about the decision. this whole question about the role of the media, the role of media,ntertained by the being entertained by the candidate versus looking at the c.v. and the job description. i think the reason why bernie sanders continues to perform wells as he is compelling, he raises a lot of interesting issues. he has a warm, captivating side but, also, he does understand a lot of the issues. francine: are you more worried about u.s. politics or the brexit debate? the two countries -- it is kind of like 50-50.
very delicate a balance. if america had a much longer leadership regime right now that would play in anchoring role in europe. but because there is no firm foreign policy anchori in ameria you have this increased fragmentation in europe. own.merkel is on her she has lost a lot of traction. and that has also affected the role of an perception of the role of england and great britain in europe. francine: that is a smart way of looking at it. thank you so much. stay with "the pulse." ubs's ceo telling bloomberg he is doubling down in china. 91% bob dudley explains a drop in profit. alphabet set to take over for apple as the world's most profitable company. ♪
francine: welcome back to "the pulse." have opened lower this morning. fourth-quarter earnings need estimates but company saw net money o utflows, the biggest drop since 2010. manus cranny has been speaking to the company's ceo. about negative rights. the most interesting is when he is talking about volatility. manus: volatility and a
paralysis. what you are betting on now is yield.ck gives youa 5% this is going to test the mettle of ubs. they bet the strategy on dividends and wealth management. people are talking about a steady erosion. they are talking about a cyclical issue. but when i caught with them, i said is it time to buckle up for 2016? >> i think that when you look in the dynamics of the fourth quarter and you look into how january started, you can see a trend continuing. of risk a high level aversion. people are happy with their asset allocation in general. paralyzed by this high volatility and the geopolitical and macroeconomy news. manus: help me understand where their paralysis is more pronounced? your asian, european or american
business? >> in general, we see in asia and in india a lot of deleveraging. risk aversion is coming in more pronounced. but it is a relative statement. i would say that the level of transactions has been slow in the fourth quarter and also when i look into the environment is not one that is giving a lot of confidence to investors. having said that, we are still confident we can work towards our plans for the year. manus: have you had to shift how you are going to run the business in terms of market acquirements -- requirements as a result of china, of volatility? >> no. i think what we need to do in the fourth quarter was more about sticking to our discipline. create't really rush to cosmetic figures that would not reflect our strategy. we did the contrary. quarternd and the third
we looked at deposits and looked at structure -- loss making deposits. and so, in the fourth quarter we did not go out and buy -- mainly for deleveraging factors. and also cross-border regulations. were major effects. manus: let's talk about the dividend. this is the good news. 85 cents. my question to you is a, the markets have happy expectations of you. the reason why your stock is so valued is the dividend. are you backing yourself into the corner? that's my question in terms of what the market expects. >> our dividend is the reflection of a very strong year. and also a reflection of a very strong year in our operating profits. that is the reason why our ordinary dividend goes up 20% year on year because we had a very strong operating
environment, in terms of profits. and we are also adding 25 cents as a special dividend because of the tax asset revaluation. we are comfortable we can continue to our aim is really to continue to grow our ordinary dividend as a function of executing on our strategy. manus: what you have got today is a re-rating of the ubs stock. people have got to have questions. if you have got this level of volatility from the end of november to the end of january, what other repercussions in terms of potential earnings? he said it was too early to call the dividend call for 2016. gross margins is the lowest level since the financial crisis. there are high levels of risk aversion. sticking to the dividend story. that is why you hold the stock. over other stocks. barclays and deutsche bank and credit suisse.
francine: thank you. manus cranny in zurich. aroundhen you look europe and around the world and look at some of these european banks, usb, sure they took the pain earlier, but today there is a clear decline. ubs is meant ot to be the darlig of this space. john: we have just started to see the beginning of the three ay.four act pl we are talking about volatility. it is not going away. we have heard about people doing, hiring, freezing. barclays, credit suisse, ubs. this is sort of the beginning of a play which is going to see the european banks having to sort of cut to the chase and become more disciplined. been impressive in his early days saying barclays has to be more focused. and stuart gulliver has been very clear about which 0--
goinggeographies they are to concentrate on. wissnot surprised the two si banks have not become more aggressive about rationalizing their two pronged strategies. francine: how do you explain this underlying volatilities? liquidity or china concerns or elections? john: lack of liquidity is not new. my chairman has written about it in "the wall street journal." ,t is a convergence of oil, concern about china but also, r emember, last week we heard about the united states and .7% growth in the gdp. what is that?
francine: welcome to "the pulse ." i'm francine lacqua. now, let's get straight to the bloomberg business flash. and ethel that is poised to leapfrog apple as the most valuable company in the world. shares jumped based on strong online sales and tighter control of costs. shares dropped this morning to the lowest level since february 2015, despite reporting fourth quarter net income that beat estimates.
disappointed. speaking to bloomberg after those results the ceo said ubs is well-placed to deal with negative interest rates. >> we are getting used to managing a negative rates environment for at least one year, but even more if you look at certain parts of our businesses. we are well prepared to do that and also you see that in the way we manage our deposit base that we are really -- wrieired to manage this kind of challenging environment. home: -- has agreed to buy retail group. the deal combines two of the u.k.'s biggest retailers. the acquisition would be sainsbury's biggest buyer giving it more than 800 stores and an expanded product delivery network. francine: thank you.
getting some breaking numbers construction.r it is important because every little thing matters as we will look at the referenda. january pmi falls to 55. we have some soft numbers in terms of industrials. a lot of insiders are telling us, mark carney cannot do anything towards the later half of the year because of the referendum. can't be seen to be politicizing the vote. bob dudley says he still has a lot of options to keep investors happy. bob dudley: we generated about $20 billion of cash last year. we have about $17 billion of capital to move around. billion of cash costs across the company. we have got all of those pieces to work with to ensure we can
continue to pay the dividend. francine: ryan chilcote spoke to him in a bloomberg first. he joins us now from outside london's bp headquarters. according to bob dudley, bp can shake this off. he is expecting low oil prices for the first half and a slight pickup in the third and fourth quarters. ryan: yeah. i think that not everyone is convinced. dividendat bp's yield, the highest it has been an almost a quarter-century. so, not everyone is convinced. but you are right. he thinks that oil prices will trend higher in the second half of the year. he talked about how he expects production supply from the shale fields and north dakota in the united states to decline. he expects oil supply in places like russia to at worst maybe declined by a couple of percent. t coming out of the markets. and he thinks that clearly if they raise their gearing to
as high as 30% where he says traditionally bp was geared l, they cangulf spil get through this without cutting the dividend. it really comes down to your view of the oil price. he was one of the first to be bearish. he says they made the necessary and very aggressive capx cut then. that means they do not need to do it now. i'm not sure he sees a lot of scope to cut capx further. he is the most bullish on the outlook going forward, particularly towards the latter half of the year. francine: think you so much. bp, one of the biggest fallers on the ftse 1000. let's talk more about the oil sector. we are joined by alex griffith. on.k you so much for coming
we have extremely important news yesterday from your rival ratings agency, s&p saying they will take action on shell and everything else is under review. will you do a similar step? alex: we put out something similar last week talking about how much headroom these companies have. it will come back to 45 later. what we're seeing is moderate negative pressure. companies asut oil we hold them to a fairly conservative balance sheet for a given rating knowing that these troughs happen. t, we will give them a period navigate to the cycle with worse leverage. othe difference between last year and next year is half -- oil companies, not a disaster. what's your base scenario for the price of oil?
does fitch have a view? does the oil price go up in the second half? alex: we know a couple of things. to elicit long-term investment 65, maybe hard. at some point oil declined by 5% year. you have to invest. otherwise we run out of it. we can't afford to run out of it. in the short-term, there's nothing driving the price at all. if the oil price goes up five dollars tomorrow, nothing happens. at current prices, 35, there are companies that are making cash losses. production starts to become a cash drain rather than a benefit. it is a big thing to turn the taps off. more generally, what you're going to see is slow degradation. ground oil of f the requires a lot of investment.
its personnel are being cut. he sometimes cannot afford to maintain -- and that increases those natural decline rates. clines this low the del rates come off much faster. it takes months to happen. francine: this is difficult to predict. i have so many guests coming on the program saying it is all about supply and demand. then you have have to guess saying but i have nagging inside me that points to slower growth. eset's maybe why half of th markets are testing the bottom for oil. is it since it we have too much oil or something more sinister? john: there are three variables. you said it is about supply and demand, it is about how much oil has been stockpiled. there is no question that china, india and japan have stockpiled a lot of oil. they've been careful about that. third variable, which i thought
was interesting in terms of the discussions coming out of davos, it is the first time your meeting with oil ministers were historically was this this discussion on the two political side, saying, every time there was a geopolitical disturbance the price of oil would go up. is opposite. every time there is a geopolitical disturbance, the price of oil declines. because the vinyl of oil -- the volume of oil will be used as a tool, as a weapon. now that you have iran coming on, and this whole tension iran, i thinkand the geopolitical variable, one has to respect urinalysis and i do but i think the two political wildcard is such that it is going to keep the oil price closer to the 40 to 50 range. and i think bob dudley is being optimistic. bob dudley is an extraordinary backbones leader, but i think
he's a little optimistic for this year. alex: it was something which develops coming into this crisis. and part of the problem was the markets reaction to geopolitics, things like isis was to not have an impact on production. that is what the market saw. stocks a very high. we think there is capacity to keep building a while. i think it depends what the geopolitical shock is. at the moment we have saudi and iran, that suggest any kind of opec agreement is going to be harder. iran is a huge variable. if you do the lines. moving,: saudi is not which is something that bob dudley said. you do not expect slower growth. are we actually growing less than what we think? the imf is nudging forecast down. because of the productivity puzzle and the way that we measure activity, is there a risk that we are not seeing a
recession closer to us than we think? john: i think we need to look at where the growth is coming from. certain parts of the u.s. domestic policy, some look soft and some look strong. quarter's the last gdp was -- paltry. francine: are we going to see bankruptcy is? -- bankruptcies? alex: our default rate is 11%. i think that is a good number. that's what's driving the whole u.s. high yield default rate. dno't actually get many publicly issuing high-yield names. it's less an issue over here. in the u.s., it is potentially a real problem. francine: should i worry more about miner? alex: depends which miners. the big ones, the life of rio,
bhp, you draw a line, which is the cost curve. iron ore's at 40 bucks. their costs are somewhere in the high teens. they are actually fine. the credit metrics are getting worse but there is a pay on that cost curve which is making losses. those are the guys under pressure. you look at smaller, high-cost producers. they have seen rating downgrades. francine: how about glencore? i heard speculation. they will split off, they will disappear. who should i believe? alex: glencore is on the margin investment grade. we do not rate it. it's hard, the trading part of those businesses is hard to understand. we do look at other traders, and they tend to be surprisingly resilient even when prices are low.
previously thought of glencore as a boring miner with a racy trading element. now it is a miner with a trading element there. francine: that was a great conversation. head of commodities at fitch ratings. stays withlackstone us. we will talk about central banks and negative rates next. mario draghi weighs in on the brexit debate. how close are we to a deal? we discussed brexit next. ♪
francine: welcome back to "the pulse" live in london. let's get to bloomberg first word news. nejra: bp shares are lower this morning after it reported a 91% decline in fourth-quarter earnings. adjusted for one tiny items and inventory changes totaled $196 million, missing estimates. bob dudley told bloomberg about the options he had to maintain the company's dividend in the challenging environment. $20 billion ofout cash last year. we have about $18 billion of capital to move around. we have $24 billion of cash costs across the company. we have got all those pieces to work with to ensure we can
continue paying the dividend. nejra: the world health organization has declared the global emergency. it said controlling mosquitoes must be the priority as zika moves rapidly across the americas. officials say there could be 4 million cases in latin america. as concerns are growing ahead of this year's olympics. the european union says it is closer to a compromise with the u.k. the e.u. president will send a governmentxt for the can untangle the more intractable problems at a summit. mario draghi has reiterated his desire to keep britain within the bloc. a solution that would anger the united kingdom firmly within the e.u. while allowing the euro areqa to integrate further would boost confidence. citizens and markets are too often unsure about our capacity to act jointly ina
period of common responsibility. we should prove them wrong. nejra: global news 24 hours a day powered by a 2400 journalists in 150 news bureaus around the world. francine: thank you so much. john sitting ski from blackstone is will us. u.s.lked about oil and politics, what we have not touched on is brexit. i still can't model in my head what it would look like. i do not know if it is dollar or pounced on her negative. i don't what happens to the big banks. is this something we should worry about or do we need to start planning now? john: no one has modeled it. the financial center of europe, ofther london is in or out europe will remain london for
all the reasons we know. francine: it's expensive here. john: it is expensive but a, people like to live here. talent migrates here's. the infrastructure is here. it is a global city. it is easy to get to asia and new york. 12 reasons and we all know that london is going to remain the center -- francine: you do not see frankfurt or paris coming up and trumping us? john: frankfurt and zurich were experiments that failed. and they are not going to challenge london. london will remain the financial center of europe. leave then cannot european union. it has to remain in the european union, because this large formidable trading bloc is important. all the reasons why right now some people are challenging it. the british economy is performing very well, and the government has done a good job
with the economy. it is performing well. we do not want to share that performance with the rest of europe. but we can think back for five or six years when the british economy was not doing as well as the german economy. there were british press force going and working in germany. the fluidity of that labor market and that talent, where technology is becoming important, is a big, big criteria. it is something we have to cherish and preserve. francine: do you feel uneasy? we may be five months away. we do not have a date for the referendum. because a football games, it could happen on june 23. what we put on the calendar. john: it is part of the summer solstice. francine: we have not started a campaign. we do not know the renegotiation. we find out more today. we do not know who the e.u. is. and no real opposition with jeremy corbyn. john: we do not know scenario outside of -- i think there are a lot of
things that will clinch it. at the end of the day, people are going to vote emotionally. britain has a big seat at the table in europe if it is part of europe. it has a big seat at the table in america with the americans if it is part of your. that is a very important thing politically, economically and increasingly geopolitically, given the fragility of the world. francine: think you so much. he stays with us. we will talk google next. a tech titan unseated. alphabet is poised to leapfrog apple to become the world most bible company. details next. -- the world's most valuable company. details next. ♪
francine: welcome back to "the pulse" streaming on your tablet your phone and bloomberg.com. the world most viable company could be about to be replaced. parent alphabet is on track to leapfrog apple. here with more is caroline hyde. these were stellar results. caroline: they look good if you strip it down. growth in fourth-quarter sales. what is fascinating is that five years that apple has been dominant, the number one in terms of valuation. google with a quarter of itself is able to leapfrog it able to
become number one. it speaks of alliance about the tech industry because five of the nine most viable companies in the world are tech -- it speaks volumes. look at what is been happening to the share to market valuations. it is as much a story of apple losing value as it is alphabet gaining it. but there is such growth in this business. 31%. clicks on ads up is managing to install discipline. and suddenly, we get our first inkling as to what these other -- the moonshots are starting to reap. they are bringing in half a million, $500 million at the moment. francine: if you look at apple and we are concerned about iphone sales. we are concerned that the sex of apple's losing shine. google is investing much more and other companies. caroline: and services. that is what is so fascinating
coming out of apple. they were trying to talk up they have one billion connected devices. the fact they will be able to -- apple music is what it apple pays another. services area. and perhaps we will get to a satiation point with smartphone devices. google is a services company. they have over one billion users. for gmail, for all of their amazing realm of services they already have. and it is about innovation. this is why they are allowed to spend $3.5 billion on new areas. francine: john, how do look at this because part of me says of apple's not doing so great, this points to sluggish demand because a lot of the demand for iphones come from china. it's innovation that is winning. john: i actually think as the media, you have got some really good case studies to look at today. you have got the discussion about apple and the manufacturing, the consumption slowing down, is the consumer becoming more prudent? you got the debate about the economy and oil and negative
interest rates but you have got the quintessential american dream company, which has the option analogy o -- optionality of innovation. they have created the ability through the alphabet structure with the search engine being that cash cow. it is still gronk i do also have the transparency of the innovation option -- you have also got the transparency of innovation optionality. are was very clear they continuing to invest. i think when you look at the american economy right now, the thing people are most concerned about is companies are not investing. google is investing. and i think that is why alphabet is where it is, because it is effectively become the ultimate american model of what american ingenuity is all about. francine: thank you so much. the senior managing director at blackstone.
francine: volatility rules. market turmoil could derail a march hike by the fed, as the ubs ceo describes the volatility and is paralyzing foreign investors. bp plunges, and 91% drop in profit. we have an interview with the cfo.a and ted cruz wins against donald trump in iowa, as hillary clinton clings to a win in the democratic caucus against bernie sanders. evangelicals really pick the president? good morning, this is su