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tv   Worldwide Exchange  CNBC  February 11, 2014 4:00am-6:01am EST

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hello. you're watching "worldwide exchange." i'm ross westgate. >> and i'm julia chatterley. these are your headlines from around the world. >> profit doesn't stop the bank from pumping more catch in its bonus pool. it's paying out nearly 2.5 million in bonuses. india's country trade has recommended relaxing curbs on exports. janet yellen is expected to comment on the recent weak's job data.
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she makes her first appearance since she got her new post. and the french president is set to talk trade and iran with barack obama as the two get down to business. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. a warm welcome. miss yellen is on the agenda. >> in the spotlight. >> it's not officially called that, any more. >> not the old hump. other things on the show -- >> cat walk cash. >> that would be you? >> that would be me. we find out what the top trends are in new york fashion week. >> glencore ex strat what has
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posted higher output. we got chinese copper prices down in two-month lows. we'll have a discussion on that. and we're talking about this yesterday, nestle cuts back its stake in lori el. we'll get all the details from paris. >> but first, barclay's shares are lower after earnings came down to 5.2 billion pounds in the fourth quarter. the bank says its still increased its bonus pool last year. at the same time, the bank says it will cut another 12,000 jobs. heal ya, thanks so much for joining us. presume onbly, all the focus this morning is on how much they're paying out in profits.
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up 10% or something on profits? >> up 10%. and i think the reason for that is because overall profits are down 32%, 37% in the investment bank. but the bonus pool, that's tin sentive part of pay is actually up 10%, up to 2.4 billion pounds. and the explanation, jenkins was completely unapoll gettingic this morning, anthony jenkins. he said, well, look, actually, our stance on pay is that we pay for performance and we pay competitively and it's in the shareholders' best interest that we do so. >> have they performed? >> that is the question. a lot of shareholders can't understand that argument. they can't understand why less aggressive to cut cost cuts,
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which is the line that the bank can control, and actually you've had performance decline, why you're incentive united statesing these bankers. so apparently they don't want a lot of people. they want a small number, quite a lot. >> what do you make of this discussion? >> well, i think the first thing i have to say is that the premature report of the data, the fixed income current and commodity business is a little bit premature. of course, that's over the years, the backers were down 30%, 31%, which is down with deutsche and some of the global american peers. but actually, if you look and
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take a longer term view, those have been pretty resilient. of course, the market is a little disappointed in terms of more strategic information and more cost cutting target, but i think it's all -- they will get this over time. >> interestingly, quarter on quarter, if you look at the result, it was up in terms of revenue, kind of 12%. bizarrely, they had a very bad key but a good recovery there. they had a 330 million pound charge, of course. >> the leverage ratio was a key focus for investors and that improved. let's not take that away. >> lots of good news. actually, we've got a target of 3% by the end of june which they had committed to with the uk regulator, the pra. they got to 2.79 now and what they've said is they're going to aim for 3.5% by the end of 2015 and 3.5% to 4% after that.
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so ahead of that. >> never good enough. but it's also a revenue question. they say something like pound revenue a million. they were talking about assets. and the problem is you only know after what, because it's actually quite -- to cut the balance sheet this size. >> what do you do with the credit? >> i think it's all some depreciation will be, especially in the new core. they cannot price for perfection. as we see more value, it will back it. >> barclay's is getting a lot of -- that kind is actually tastes good and goes down well, whereas these cocoas, 2 billion 06 which were issued. quite interesting. i don't know if there will be
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any more like this. these cocoas that barclay's has issued, they can suspend the coupon and pay dividends to shareholders. so completely realigns the capital structure and skews it. >> how about the pr exercise that happened in the last 48 hours that's previewing numbers that weren't broken by the financial times. i heard you talking about this earlier this morning. >> yeah. they were estimates from morgan stanley that were published a week ago. anthony jenkins is a very -- he came in as the kind of soft face of barclay's, but he's a very tough operator. on the media call, he wouldn't answer any questions about the fx probe, he wouldn't answer any of the details in terms of litigation costs and about those litigation provisions. we wanted to know where they come from, can you give us a bit more detail? no, he could not, we were told.
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so he's quite tough talking. >> dominic, i noted in your notes you say that actually the european bank for the achilles heel right now for europe. expand on that for us, please. >> i think it's a matter of capitalization. we saw it today in barclay's numbers. yes, they've got the leverage ratio back up to 3% and two on capital i think is at 9.5%. but both of on those numbers are still too low. so you still have a banking system which requires more capital and is continuing to deleverage as a result. >> so what do you -- do you take the read through -- is there much of a read through in the whole sector? we had more comments out yesterday from david serra saying 50 billion in carpetal eurozone banks. do you view the capitalization differently for uk banks to eurozone?
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>> obviously, in the case of barclay's, they've still got more work to do in improving their capital ratios. but yeah, i think in the situation of lloyds, i think the capital situation is better. and i would say overall the situation was better. but i don't think that anybody should take too much comfort. i mean, the economy is improving in the uk. but i'm sure that regulators will want to see leverage ratios and tier one capital ratios continue to rise during this recovery. so when we enter the next recession, there is much greater buffer in terms of capital ratios than there has been in the past. >> on that final point, if we're going to see a continued increase in capital ratios, does that mean actually we're not going to see any meaningful increase in lending? >> it's a tricky one but, yeah,
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an increase in the capital requirement would lead to a decrease of stabilization on the landing growth. >> the question is the demand for the credit. >> who do you work for, helia? >> it's a banking response. >> we have to say good-bye. thank you so much, filipio and helia, dominic. now, new york regulators are driving most financial institutions out of the empire state. that's according to banking analysts and what he said to cnbc yesterday. >> they are driving them out of new york. think about where bny melon is. it's been pushing people to india. goldman sachs had to add new people. they did it in new jersey and utah. citigroup is now the third largest employer in singapore with jobs all of which could be in the united states, although they have pushed a lot of jobs to south dakota. morgan stanley is pushing jobs
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to japan and to china. >> and you can get more on that story. where else? >> dominic, let's come back to you, actually. we're waiting for janet yellen's speech today. at the beginning, you were suggesting you hoped yellen and the fed would stave off from tapering until the second half of this year. where do we stand right now based on what's going on with the tapering and the global economy? >> i still think that the fed has every reason to remain accommodative. and i think today we'll probably see in yellen someone who is fundamentally dovish. the inflation outlook in the united states and elsewhere continues to be demine. and i think the one certain impact of the difficulties emerging markets are facing at the moment is that it is a
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deflationary event for the world economy. so more reason for the central banks to remain fundamentally accommodative. and that is what i expect to see fall the rest of this year. >> you say, dominic, the u.s. economy is as healthy as you've seen it in the last 20 years. what are you basing that on? therefore, what does that mean for the dollar and equity investment? >> what i was referring to was particularly the improvement we're seeing in the between deficits. both the fiscal deficit and particularly the trade deficit, which for once is improving during a period of economic growth in the united states. largely due to the collapse of net shell oil. the one thing that was missing and had troubled me was the lack
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of productivity growth, and that indeed seems to be now beginning to turn into a very strong productivity number in the fourth quarter, which took the year up to 1 is.7 for 2013. so getting to reasonably healthy levels. and, therefore, the outlook for the dollar, i think, is one of gradual improvement. >> can i bring the china question into this, is there risk for the markets right now. you mentioned in your notes that the key risk is how the market deals with the potential deleveraging going on in china right now. so how does it deal for it? >> this for me has been a much greater concern than tapering in the u.s. what we've seen in the course of the last six to eight months is the rate in china has gone literally from 3% up to 7%. most recently, it's come back down to close to 5.5%. what we are clearly seeing in china is a normalization of
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nominal interest rates which had been for a decade artificially low leading to an investment and property boom. the new authorities are in beijing clearly trying to gradually nebulize interest rates and see those rates normalize. that has a tail effect for the tail of the emerging markets. i think growth in china will continue to disappoint for this year and the emerging markets turbulence we've seen will continue, as well. >> thank you so much for chatting with us this morning. >> thanks for that, jules. we're just an hour and 20 minutes into the trading day here in europe. 8/1, nearly 9/1 on the stokes
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600. this morning, we're up 52 points on the ftse 100. xetra dax is up 11%, cac 40 up 0.7%, ftse mib, as well. ten-year treasury yields up to 2.69%. that yields are higher across the board, as well, in european trade. dollar index has come down to a two-week low, as well. 1.3679 was the two-week high we were trading at yesterday. dollar/yen, 102.34. and sterling has reclaimed the 1.6 4/level, as well, on the greenback. that's where we stand right now in this european session. sixuan recaps the day for us in asia and singapore. hi, sixuan.
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>> hi. thank you, ross. the shanghai composite led the rally today. shares were once suspended for trading after surging 44%. so hitting its upper limit before ending higher by 3%. this is the country's second largest ipo since listings resumed last december. japan is closed for a holiday today. australia gained 0.6% today. now on to individual movers, china's oil majors made a strong gain today after petrochina made
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one of the largest natural gas discoveries in china since 2001. look at other oil measures, sinopec add 2% and cnoc added almost 5%. ahead of the national people's congress, beijing has announced a series of policies. ping an jumped to the highest in almost two weeks while china life surged almost 5%, as well, posting its best daily showing in more than two months. that's a recap of asian markets. back to you, ross. >> sixuan, thank you for that. still to come, airbus and boeing are battling it out at the singapore air show. >> could chinese manufacturing create turbulence for the pair? we'll bring you the latest from the ground in singapore, coming right up. ♪
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today with airbus and boeing pitting their rivalry. speaking earlier, the airbus ceo says he expects strong demand in asia to continue. >> the message for me is very clear. this is where the action will be forestry in the coming decades. and also in support. >> sri is comfortly poised at the singapore air show. how big a threat do you think the a-350 is for boeing in your region? >> i've got to say this. that they are alloy confidence amongst air executives because they're very bullish about the growth figures in this part of the world. despite the fact that we are seeing this emerging market downturn, they brushed it off.
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they answered my questions by saying we've seen the asia crisis before and we didn't see a drop off in demand for new aircraft and we'll ride this one through. he's confident that they're not going to see any cancellations for airbus aircraft. like i said earlier, lots of executives, airbus included, are very, very bullish about the growth picture in this part of the world. despite the fact that there are a number of challenges. and a big theme or themes that's been coming up here is pressure on yields, purchasing power among the some asian consumers has been sit without hitting the front end of the cabin. there is concern about rising capacity. the airline industry all over the world needs more clarity with what's going to happen with the european emissions trading scheme.
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>> and what's going on on the single aisle stream, any information about that? >> that's interesting. he said we're starting to see some competition in that segment. are they going to be a competitive threat over the next ten years? probably not. over the next 20 years? maybe. but the threat, and this is interesting, is going to come from china. they are starting to ramp up production and start to go improve their own indigenous single aisle aircraft. he says they're going to be contenders in the next 20 years.
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are they going to be able to cut it in the international markets? that's the big question. >> britain and the netherlands have filed a $4.8 billion claim against iceland funds. nokia will take aim at the emerging markets when it unveils a low-cost smartphone according to the "wall street journal." the happened set division company will launch a smartphone running version of google's android operating system. it comes as the company enters the final stages of its acquisition by google rival microsoft. shares in nokia up more than 75%
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in the last 12 months. and the british economy is set to grow rapidly, although levels remain well below the precrisis peak. and the cpi warns that uncertainty in the run up to the investment could risk further investment. the rivers thames has burst its banks. many homes along the river have been evacuated and authorities have warned that thousands more homes in the southeast of england could be hit by blood water with river levels expected to continue to rise over the coming days. >> wow. i hadn't seen those pictures. >> yeah. >> now, have you had breakfast? >> a little muffin. >> okay. that does count. because juicy details emerge in
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of french president hollande when he visits president obama in the white house today. the two heads of state will sit down to a carefully occur rated three-course meal. caviar, quail eggs, with rib eye beef being the centerpiece of the meal. it's a hawaiian chocolate dinner as well as fudge made from syrup. yumm. that sounds great. >> give us an invite. >> because of that menu, we want to know what you would serve if you were hosting the french president. let us know., or tweet us, @cnbcwex or @rosswestgate. >> home made soup.
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>> very kind. >> let us know about that. >> still to come on this show, glencore's copper production surges 26%. our next guest says the company figures don't match their rivals. we'll be digging into the details, right after this. could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald was a really bad speller? your word is...cow. cow. cow. c...o...w... ...e...i...e...i...o.
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the headlines from around the globe, profits drop at barclay's. paying out nearly 2.5 billion in pounds in incentives last year. india's trade deficit narrows with gold and silver imports drop significantly. the country's trade minister has recommended relaxing curbs on gold imports. markets trade in the green ahead of janet yellen's testimony. she makes her first appearance in her new post. >> and francois hollande heads to the white house, set to talk trade and iran with barack obama as the two get down to business. >> we're an hour and a half in this trading day in europe. stronger gains than we had at the close yesterday.
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ftse 100 up 0.75%. 1% for the xetra dax, 0.6% for the cac 40 and 0.5% for the ftse mib. >> and in the bond markets, the u.s. treasury heading above that 2.6%. gilt yield trading around 277%. slightly wider for the periphery here you can see by a couple of basis points. italy trading 3.70% right now. >> the dollar has been down at a two-week low. dollar/yen, 102.33. euro/dollar, up to around 1.3670, which is a two-week high. cable has reclaimed the 1.64 level. l'oreal said it's agreed to buy back 8% of its stake from nestle.
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>> hey, ross. l'oreal is going to pay 8% for that stake. plus, this 50% stake is valued at 276 billion euros, which makes a total transaction of 6 billion euros for l'oreal. all the share votes by the cosmetic giant will be canceled and that will have a positive impact for the shareholders. it's going to increase the earnings per share by more than 5% on a full year basis after this transaction nestle will remain the second largest shareholder of the company and the family will be the main ones still with the 33.3% stake. it's fueling the speculation and that explains why l'oreal, after good, solid trading, is now trading lower on the french market. its shares held by lori el as discipli
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diminished. and the market has reacted. following this announcement by l'oreal and nestle overnight. the stock is down 2% right now despite some positive earnings that were reported after the market closed yesterday. l'oreal posted a 5.4% increase of its revenue on a like for like basis on the fourth quarter that was better than expected. l'oreal will pay a dividend of 2.5 euros per share, almost a 9% increase from 2012. so from an earnings point of view, it was very positive, ross. >> and michelin's net income down 24%, but they are increasing the dividend. what are they saying about sales and what's the investor reaction? >> well, the problem for michelin remains the negative currency effect and that's not a big surprise. if you remember back in october, the company said clearly that it canceled its target to maintain a stable operating margin for 2013 because of the weakening currencies in latin america.
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more importantly in brazil and argentina. now, in terms of output, michelin says it's on track to meet its target for 2014, but only based on the average exchange rate for 2012. now, the company is targeting a recovery in volume sales this year, thanks to some fast-growing markets, but thanks to the specialty tires, like for the mining industry. this is what the cfo told cnbc this morning. >> the targets are reducing their inventories, putting pressure on volumes. but at the same time, we are experiencing very good margins for those products. when this drop of inventory will be done, we will be back to very strong growth volumes as the
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demand for raw material is still there. >> the stock is up almost 2% because despite the 24% contraction of its net profit for the last year, the company is going to increase its dividend and that is boosting the share price today on the french market. ross. >> stephane, thank you. now we're joined by john baker, portfolio manager at jpmorgan. you said you liked valuations in europe equities right now. is your attention focused on the periphery right now? >> that's correct. we are finding a lot of opportunities in the peripheral economies of europe. i would have to highlight the economic recovery in ireland where austerity and supply side reforms came through strongly at the start in 2007. that now has led to a big recovery in economic prospects.
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we've seen falls in unemployment. going back 12 months, it was not expected. we're finding a lot of attractive ways to play that. not least of all, bank of on ireland. >> and a lot of the stake now, the government owns 14% right now. >> that's correct. the government has reduced its position. we expect it's going to reduce its position further. investors have snapped that up as we've seen what we consider important at jpmorgan is earnings upgrade and that's been driven by the improvement in the sovereign bond markets as that was recognized by the bond community. brought down the cost of financing. >> i mean, you know, some places are now trading below that of the uk and u.s. >> yes, almost, yes, absolutely. >> they're raising cash at better levels when they were better known as the celtic
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tiger. >> that's correct. ireland was voted the best place to do business in the world by forbes magazine, again, in recognition of that austerity and supply side reforms. >> and tax rates. >> that is one of on ireland's natural resources. >> does that extend to any other peripher peripherals? >> it does. that's attracting in a lot of automotive manufacturers, for instance. some of the large german companies and ford are now expanding production in spain setting up new facilities. so export driven recovery. we're also seeing recovery in italy. >> seems as though there's a lot of investment in the housing sector in spain. what about investment in the housing sector in ireland?
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>> the recovery in the dublin market is coming through very strongly and that's because after next to no new supply, there is now a shortage. so quality commercial property, residential, as well, because of google, facebook, twitter, all companies who pay high salaries, therefore, demand for high quality housing. >> lloyd's? >> lloyd's bank, great play on recovery in the uk economy. just this morning, of course, we've seen a further positive revision in the economic outlook. the housing market recovers in the uk, that's going to benefit lloyd's as the largest provider of mortgages in the uk. >> interesting.
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john, great to have you on. copper production, the biggest earner, jumped 26%. joining us from hong kong is andrew dale, division director at mcquarry securities. thanks for joining us, andrew. production is up, but we have seen, of course, copper prices under pressure. how is that feeding back in? >> yeah, look, i mean, the story on glencore here is really very much volume driven. the price itself has been i would say pretty resilient in the back drop of some uncertainty on the supply side. so i'm actually a little bit more constructive on the surprise and i think they're able to generate good returns here. maybe on a near term basis, the price could have a bit of downside risk.
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we do like the copper market is glencore is very well positioned in that space when you look at the diversified miners. >> you say you do like the copper market. shanghai copper, that's down at the lowest in two months today. >> yeah. if you look at the chinese supply market, there's a fair amount of uncertainty with the raw material versus the smelting capacity in china. i would say domestic china's prices do look to be reflecting some of those supply concerns. but again, i'm trying to focus on the medium term. i believe things will start to improve into the back of this year and particularly into next year when you look at the cost of production, the cost of actually bringing on tonnage. as i said before, glencore is going to be a good beneficiary of that.
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>> andrew, we got no update today on whether or not they're going to manage to execute this copper mine to china. identify seen a lot of speculation that they would prefer not to sell it. do you think they are going to push this off now? >> yeah. this is always an interesting topic when it comes to the sale of this asset. we're firmly of the view that they will have to divert this asset. it's always been a pretty big amount of money required. don't think glencore right now wants to commit that amount of capital. it's probably a little larger than the chinese would want to buy, as well. however, passette is on the market and we will see some form of announcement over the next few months in relation to that.
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to their point, good assets are hard to find. >> you don't think that's why this is on a delay? they said they would do this by the end of the last year. >> i suspect there's probably some question marks around the valuation. both parties are finding it difficult to come to a mid point in relation to that. i think if you look at other copper equities over the past sort of three months, you have seen a little bit of recovery in pricing. and i think valuations are starting to improve a little bit on the copper space. hence the reason why we're quite bullish on many of the copper equities out in the universe. >> how would you compare glenn to some of the other companies like angelo, bhp and rio, which on a production basis looked stronger? >> yeah, you're right there. if you look at the performance this year, it's quite interesting. angelo has been quite the surprise. it's outperformed bhp and rio by as much as 20% this year.
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glencore, internal we would say their production result is probably at the touch of the lower end of the big four. i wouldn't say by any means it's a poor result, but rio and bhp delivered better. i think the real question mark at the moment for the big diversified is it's no questions dense that bhp has underperformed rio and still the market continues to question iron ore prices and other large miners continue to lag the nonexposed iron ore miners. >> thank you very much for joining us, andrew dale. in asia tomorrow, we have a slew of trading updates including those from the commonwealth of australia and we have japan stepping up with machinery orders and china in
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trade data for january. still to come, india may no longer dig in its heels for trade imports. we'll be out at mumbai for the latest on the trade figures. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at
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welcome back to "worldwide exchange." eats talk about food again because details are emerging for francois hollande when he visits president obama in the white house today. the two heads of state will sit down to a carefully occur rated three-course meal. 12 types of potatoes will grace the first court. rib eye beef is the centerpiece of the main. the white house reveals the dessert, chocolate hawaiian ganache as well as chocolate malted cake. >> do we have the menu wrong? >> i don't know. maybe they're having two desserts. >> i'm sure there will be plenty. i'm outraged that there isn't going to be hawaiian ganache. >> anyway, if you were going to serve the french president some
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food, what would you give him? e-mail us or tweet us. i don't know. i love french soups. >> now, a slump in gold and silver imports helps india narrow its trade deficits. for the month of january, the trade deficit came in at $9.9 billion. merchandise exports at 8% while imports fell 18%. new delhi is aiming to keep the current deficit below 50 billion in the fiscal year to march of this year. now, we're joined by rajiv biswa from ihs global insight. these numbers were helped by a
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77% drop in gold im punputs. but i see the india trade minister is talking about dropping that right now. >> at a retail level, indians love goal. they have put this tight restriction and levies on gold in order to reduce the trade deficit and current account deficit. but what we've seen now with the january data is that trade deficit is down half of what it was a year ago. so i think there are signs of progress, reducing the trade in current account deficits in india. and knowing that it's very hard to restrict this demand indefinitely, they probably feel it's time to start easing back on the controls. but india still is vulnerable and fragile on its external account, so i think they will have to ease back carefully. >> it's surely not time to ease
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back. i think easing back somehow a huge concern. i think they still need to cut back on expenditures in q1, surelily, don't they if they're going to meet this target? >> the deficit last year was 4.8% of gdp. that was about $88 billion u.s. this year they're aiming to get it down to 50% of gdp. they have made some progress towards that. i don't think they can completely lift all these restrictions on gold because gold made a huge contribution due to this 77% decline in gold imports that we've seen to narrowing this current account deficit. but i think they may take some steps to reduce controls for gold. for weddings and so on, it's hard to maintain control because
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one of the problems you have is a lot of gold smuggling happens, so you divert it from official imports into, you know, smuggled gold coming in from the middle east. so there is that sort of leakage happening, as well, that they're probably concerned about. but i think india is making gradual progress on the current account. i agree that you can't completely, you know, lift all these controls immediately. and india is still very vulnerable in terms of the rupee. but certainly the governor has made an impact and we've seen stabilization of the rupee in the last few months. >> picking up on that, you seem to be suggesting, look, we're not going to get knit strong recovery in growth. and how does the central bank balance that with inflation? what will the quality be for now? >> the governor has been very, very clear that his most important priority is creating
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credibility for the central bank and controlling inflation. and he's switched the target much more towards consumer prices, running at about 10% at the moment. so based on that measure of inflation, there's really no room for easing. i think what we've seen in three rate rises, he's established credibility that they want to control inflation, but there isn't much leeway for much monetary easing, either. so we do expect inflation will edge lower in the coming months, but only perhaps down by a percent or so. therefore, it's not enough leeway for him to start cutting, given that his target for inflation is to bring it down to 8% or so a year. >> he surprised the market last time with a 25 point basis pike. why not even if the inflation comes in at 9.4% this month, why
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not hike again and get ahead of the curve? >> because the economy is really struggling. industrial production is negative. auto production is down over 10% year on year. so the economy is already struggling. if there are signs of inflation stabilizing and coming somewhat lower, then i think -- even though they keep monetary policy settings tight, they may not want to tighten them further. one of the problems of indian inflation is that it is -- a lot of it is externally driven and it's out of control of the central bank. food inflation stays in the agricultural sector. he has done a lot of work to try
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to get credibility. inflation should start to edge lower. i think he should stay on hold and see if inflation does edge down. i think it's going to be very hard to get there in terms of consumer price inflation. i think we're going to see relatively tight monetary settings and, therefore, relatively weaker growth in india and around about this 5% range that we're seeing at the moment, rather than the 8% to 9% growth that we got used to a few years ago. >> i think you -- >> but i think india is entering a period of weaker growth. >> i think you just crystallized the real problem they have here between balancing inflation growth and the future outlook. rajiv, good to talk to you this morning. in asia, shares of dongfeng
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traded flat. they're taught to be in talk with france's peugeot on a possible partnership. peugeot negotiators were in china this week for a final round of negotiations. the flavoring company which makes soy sauce and oyster sauce, fo is shan, shares were temporarily placed on a trading hold after exceeding the daily limit. and some earnings we're following out of australia, amz shares nudging higher after reporting a 13% high. mcquarry shares were down after the group gave a cautious trading update. annual profit was on track to exceed $1 billion australian dollars for the first time in four years, but only if market conditions don't deteriorate from here.
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and shares of cochlear tanking after a nut profit falls 73% to $18 million. now, over in the u.s., the obama administration is once again delaying the health care mandate for small businesses under the affordable care act, giving them another year to comply. the employer mandate of obamacare was originally scheduled to take effect in january. but the white house granted a one-year delay last july. the latest change let's companies with more than 50, but less than 1100 full time workers avoid a tax penalty until 2016 for failing to provide health insurance. larger companies can phase in coverage offering health plans to 70% of workers in the next year and 95% in 2016. general motors says the new ceo mary barra will be paid
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$14.4 million in cash and stock this year, 60% than her predecessor. the bulk of that pay package, about $10 million, is from gm's long-term compensation plan which is subject to shareholder approval. it was previously said she would get to 4.4 million but released the updated figures to clear up any conception that she was being paid less than her peers. gm trading up around 0.5%. that's nice. clears that up, didn't it? we did like that story. still to come, 12,000 jobs to go, but bigger bonuses for those that make the cut. coming, were look at barclay's latest numbers.
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you're watching "worldwide exchange." i'm ross westgate. >> and i'm julia chatterly. here are your headlines from around the world. >> barclay's shares extend their losses but that doesn't stop the bank from dumping more cash into its bonus pool. >> india's trade deficits narrow. the country's trade minister is relaxing exports on gold. >> janet yellen is expected to comment on the recent weekly
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jobs data. >> and francois hollande heads to the white house. the french president is set to talk trade and iran with barack obama as the two get down to business. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> if you're just tuning in, thanks for joining us here on "worldwide exchange." let me give you a look at how the markets are fairing ahead of the u.s. open. stocks for the third straight day, we have both the s&p and the nasdaq closing at the highest level in two weeks. all eyes on the fed's yellen speech later on today. you can see the dow futures behind me indicating higher by around 60 points in trading to green across the board here. 15 points higher for the nasdaq and for the s&p 500 we're higher by around 7.5 points so far. but of course plenty of hours trading. they are taking the message from
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what we're seeing from the european markets, trading higher in the green. 0.8% for the ftse 100. we're over 1% for the german markets, french markets 0.7% higher and the ftse mib recovering a bit from the sell-off that we saw yesterday, higher by around 0.4% here for the italian markets. quick check on where we're seeing barclay's trading after the results posted this morning. investors are not happy with what they're hearing there. we can see that stock down around 3% in trading today. we'll be talking about that in the second half of the show, ross. >> the bonus pool up 10%. investment banking profits down. >> retaining staff. it's all about retaining staff. but they're going to shed 15 -- >> yeah, 12,000 jobs. >> who knows. we'll come back on to that. we've got position squaring in the bond markets. ten-year treasuriace yielding 2.67%. we're up to around 2.69% on the
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ten-year. yields are higher across the european debt markets, as well. similar performance for the dollar this morning. the u.s. dollar index is down to a two-week low. elsewhere, we've got euro/dollar, up to 1.3670. at the moment, that's around about a two-week high. the aussie -- slorl, pulli/doll from its lows. 0.93028. it's all about janet yellen, her testimony in front of the house financial services committee. to recap what's happened in asia, if you've been sleeping overnight in the united states, here is sixuan from singapore. >> thank you, ross. china markets let the gain necessary asia today, extending the rally since last friday. we had a very strong market debut for shanghai.
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in hong kong, the hang seng index had its best day in three months, ending higher by 1.8%. japan was closed for a public holiday and gains in south korea were capped before the new fed chair janet yellen's testimony. meanwhile, australia ended marginally higher, up 0.6%. on to some big movers, china's oil majors all made a strong rally today after news that petrochina has met one of the largest natural gas discoveries in china since 2001. and that stock gained 1.4%. sinopec added 2%. meanwhile, cnooc jumped almost 5%. aso i had from the energy counter, insurers outperformed as beijing announced a series of policies that may favor the insurance industry. ping an and china life both juched over 5% in today's trade. that's a look out of asian markets. back to you guys. >> sixuan, thank you.
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have a good evening in singapore. now, our next guest says now it's time for investors to go on the hunt for equities. the current environment provides some opportunities. joining us now, global head of equities at pimco. nice to see you. >> nice to see you. >> we've had three days of gains for the u.s. equity markets, the best since mid october after the correction that we saw. where would you say we're at? >> well, i think we're still into a phase of adjustment where i think, you know, i'm not saying you should jump on equities today. what i'm saying is over the next few months because of this transition phase that we're in, and still this concept of fragmentation that you've heard me talk for a little while, but in terms of transition, we are at a very important point. i think investors are looking at action. clearly, if you look at the u.s., we're going from qe to taper to normalization.
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normalization at some point will want to have something in line with the economic trend. what's important is how that differs from what's happening in the rest of the world. the desynchronization. clearly, china is in transition. you have investment-led growth, reform-led growth. by 2017, you've heard me say for many, many years now, we'll probably be around 5% growth. how we go from a to b is clearly important. of course, emerging markets are also in transition because we have the tapering happening. so we have rising rates, slowing
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adaptation. of course, europe and japan are in transition. in japan, we're looking for, you know, the lead from the third arrow. we saw recently again mr. abby saying wage growth must crease. you want to probably give some hints, but not force too much of on it. we have taxes increasing, energy prices increasing, the yen being weaker. finally, in europe, clearly politically we're in transition. qe, we probably need more of it. >> barclay's shares extending their losses after earnings fell to 5.2 billion pounds in the fourth quarter. falling short of analyst forecasts. the bank still increased its bonus pool last year on, paying out nearly 2.5 billion pounds in
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incentives. that jump of 10%. barclay's says it will cut to further 12,000 jobs this year. you were just talking about the banking sector, banking union. what do you think of the banks right now? the message we get from barclay's still is that work still needs to be done in capital raising. it's a message that we've had from many of these banks. >> absolutely. and i still think that you have restructuring in transitions. we have regulations quite new for the banking sector. as a stock picker, what i want to look at is do i find a growth stream that is not in the valuation? and i think that, you know, in europe, some of the financials are still quite cheap, but i would be clearly very careful about the underpinning of growth and earnings. because we still have a lot of structural issues unfolding. you want to be -- so on we know, you know, asset management is a growing niche. you want to be in areas where
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you feel despite volatility, you'll have something to hang on. i would think that the emerging market banks are actually very cheap. i'm not sure it's the time to buy them yet because of the transitions we just talked about. but on a pure valuation basis. so i think in europe, you know, the outlook for the banks is quite fair. but i'm not sure i'd be massively overweight at this point. >> but what about the contingent costs? what about the foreign exchange investigations and the -- how do you, as an investor, approach that? how do you price these stocks as being cheap when you've got all sorts of problems that could come with barclay's over the -- even in the last 24 hours. >> absolutely. and i think you have to plan for the worst and hope for the best. that's really clearly what you have to do. there is an element of unknown, and i think it comes back to at what level of valuitions do you think the market is discounting
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more than what you believe will happen given a tight scenario. and i think you go back to very disciplined analysis of those banks because otherwise it's very difficult. >> you're obviously staying with us. for now. on, i would draw your attention to that. should bankers swear an oath to god starting next year? dutch bank employees who swear an oath, optionally to god, commenting that they will perform their duties with integrity. head to our website for all the details on that story. follow us on twitter, @cnbcworld. >> you put your hand on your heart for that, not over there. >> or on a bible. >> i don't understand that. anyway, what's on the agenda in the united states today? >> moving on. >> trade out at 10:00 on a.m. eastern. forecast to rise 0.5%. in addition to janet yellen's
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appearance on capitol hill, three other fed officials will be speaking today. we have philly fed president charles plosser, janet yellen and jeffrey lacker and richard fisher. among the earnings report, cvs, mosaic, tripadviser and western union. general motors says the new ceo mary barra will be paid $14.5 million in cash, stock and options. more on that coming up right after the break.
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barclay's shares extend their losses. the bank says it will cut 12,000 jobs but the bonus pool still grows. janet yellen makes mer first testimony to congress today. jobs data is expected to dominate. and the french president francois hollande has dinner tonight at the white house. let's take a look add today's other top stories on. general motors states new ceo mary barra will be paid $14$14. 44 million in cash this year. the bulk of that pay package,
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about $10 million is from gm's long-term compensation plan which is subject to shareholder approval. gm previously said barra would get up to $4.4 million this year, but released the updated figures to clear up any misconception she was being paid less than her peers. we like that kind of inflation. we were talking about this last week, talking about a difference again male and female pay. but now the question is how much she's getting paid from a company that laid off a lot of people, nearly went bankrupt. there's a lot of issues here, isn't there? >> clearly, we don't have the details of the long-term compensation plan. i'm very happy people are well paid. but given the fact that the company was clearly nearly went completely bankrupt is just not that long ago, we need to understand how the long-term plan is structured and what kind of promise she'll make.
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the other thing that's interesting is how we compare it with european car industries and that synchronization between the u.s. and the rest of the world at this point. but i think it's a very interesting package. >> gm has still got questions to answer? >> my view is they should put all the compensation down. apple has lost its latest bid to block a monitor. a u.s. appeals court has r jekted apple's claim that it's causing irreparable harm. the judge installed the monitor in october after finding am liable for conspireing to raise ebook prices. and virgin america has reportedly picked barclay's and deutsche to lead its fourth coming ipo. that offering could come in the second half of this year.
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the california based airline, launched by richard branson in 2007 may use the funds to double its fleece. virgin america recently bought 12 slots at laguardia's airport. la kwu inta has also filed for an ipo. blackstone took the company private in 2006. it operates more than 800 hotels throughout north america. still to come on the show, can the french president rescue his plunging popularity with a visit to the u.s.? >> stay tuned. we'll examine franco-american relations. [ male announcer ] the new new york is open.
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the stockses have been up for three days in a row. this morning, futures are implying we're going to go higher again. the s&p is up 8.5 points, the dow higher by 69 points and the nasdaq up just under 17 points. french president francois hollande kicks off talks with
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president obama at the white house today. he's hoping to recesuscitate hi rock bottom popularity in france. discussions on the menu include google, iran, trade. stephane is in paris. stephane, all the topics aside, just how closely aligned are these two politically? you have obama denying that he's a socialist and you have francois hollande trying to cling to his socialist roots despite his u-turn. >> obviously, we came a very long way since the freedom fries and all the media in france are very much aware of the single of a state visit. it's the first time in 18 years that a french president is invited for a state visit in the united states. but the view in france is that hollande has been rewarded for his position on syria, in iran and on the recent military action necessary africa.
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france led two military actions to tackle the growing influence of al qaeda and that is something perfectly in line with the strategy from washington. you know, the easy thing with france and the united states is that the two countries are almost twins in revolution. the french revolution was almost at the same time as the u.s. independence. and they are very close historically linked between the two countries. and it's obviously very easy to recall this glorious historical moment when you want to celebrate the relationship. the good relationship between the two countries. now, economically, it's a bit different, obviously, hollande is a socialist and a pro socialist policy. it doesn't really fit with what washington would like to see from france and from europe. although the recent package of pro business measures go into the right direction, more literal right direction so that from the american point of view. perhaps hollande is going to be more difficult with u.s.
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companies. you know that he's traveling tomorrow to the west coast. he's going to meet the leaders of facebook, amazon, google and all these companies are under pressure in france because of their fiscal optimization policy. and i'm not sure that is going to be that easy for hollande on the west coast that it was so far with obama for the first day of the state visit. and also, you know, that tonight there is a dinner at the white house. this morning we were looking at the menu. i'm not sure it will help hollande for his diet because it's going to be very rich. >> hawaiian chocolate ganache. don't worry, i've memorized it. thanks for that. charles cob of the french men foundation joins us on the found now and charles, can i ask you,
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behind closed doors, as stephane was mentioning there, we've got the nsa snooping scandal to deal with, we have the tax optimization strategies and the likes of google. what kind of talk to you expect about those two issues? >> well, i suspect they're going to be discussed in the context -- i hope in the context of the broader context of the european/u.s. trade agreement. so i suspect knowing how these types of summits go, they will probably not get into the minutia of the actual policy, but i hope they will continue to set the broader context for the talks. which i think will help economic growth and job creation certainly in france which have to be top on the mind of president hollande. >> how far are they going to get with the trade talks? my take right now from washington and the likes of harry reid is that obama is not going to get any fast track to
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negotiation this trade deal. >> well, i hope harry reid has a change of heart on this. we've seen trade agreements with republicans and democratic presidents that they are good for the united states and they're also good for our trading partners. so i hope that the senate will take a different view on this. >> okay. charles, great to talk to you. we'll be watching those headlines avidly. >> what do you think, how big of a challenge for francois hollande? >> i mean, you know, a 16-year high unemployment, no growth, well, in the past two years, even in europe, we've had some recovery, some growth. no political alignment. so alienindicatiatelienateing t.
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>> the may elections, the european elections. are we going to have to slightly rethink how we rate the risk from politics in europe? >> my reading is if lapenn gets a much higher vote, this could be tricky because you could have some social description. it's really too bad. we have such a strong entrepreneurial spirit being capped, we have a government entity that is so large in france, larger than in china in terms of profit and employment and all of that, and so, you know, if, in fact, people by desperation vote more for lepenn, this is going to be
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something very serious, i think, and very sad. the best we can hope is a stalemate. >> sentiment and just how depressed people are by the economy in particular with this u-turn that he's tried to achieve. it's just too late. >> well, exactly. and we discussed that when he was elected and what the measures were in all of this. and i think yes, it is too late. at the same time, if we had a charismatic leader who could put in place policies and bridge the gap and create a social contract in france, that's really what you need. i think you could still do something, but it would be very difficult for him to achieve that in such a short period of time. >> would you make a better president? >> i think so, actually. you heard it here first. heard it here first. it's day four of the sochi winter olympics. canada atop of the medals table.
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tom mackenzy has the details. >> the men's finals saw hamelin taking on the to finish just ahead of china. russia claimed the bronze giving the country's first ever short track metal. in the men's moelguls, bilodeau had a technically near perfect ascent on a slushy and unpredictable course. he becomes the first free style skier to win consecutive tiles. bilodeau's gold helped move can do to the top of the leaderboard, but only just. >> i love the mogul skiing. >> you could do those slips. i've seen you in action. >> i had to back out this year.
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>> such a shame. still to come -- >> it's not just the jobs report that impact the stateside, the freezing temperatures are giving fashionistas a hard time. snow and heels don't mix. >> no. we'll look at the hottest trends later in the show.
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welcome to "worldwide exchange." i'm julia chatterley. >> and i'm ross westgate. barclay's paid out nearly $2.5 billion pounds in incentives. >> india's trade deficit narrows@as gold imports narrow significantly. >> and equity et in the green ahead of janet yellen's testimony. she makes a first appearance for taking up her new post. and francois hollande heads to the white house. the french president is set to talk trade and iran with barack obama as the two get down to business. if you've just tuning in, thanks
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for joining us here on the show. let me give you a quick look at how the markets are faring ahead of the u.s. open. stocks managing to rise for the third straight day. lots of anticipation ahead of yellen's testimony later on this afternoon. as we've got the dow trading higher right now by around 65 points. we've got the nasdaq higher by 15.5 points and the s&p 500 higher by 8.2. so green across the board right now for the u.s. futures. a quick look at what's going on in europe right now. we've got the uk markets up 1%. lots of focus on barclay's today. that share trading off around 3% after a weaker than expected earnings. we've got the german markets higher by 1.3%. the french markets higher by around 0.9% and the ftse mib in italy higher by around 0.6%. >> andrew bailey, the deputy governor of the prudentan regulatory authorities ceo in
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the uk. and he says that the governor, the bank of england has launched a formal review of the allegations about a foreign exchange manipulation. he says there's no evidence that the bank of england staff knew about foreign exchange pricing. and he's also going to say essentially that just the bank is playing that leading role in that investigation. he's also going to say that he detected pressure to increase the sixth element of remuneration of banks to combat bonus camp and he's playing a leading role in the investigation, as well. now, we also said earlier one of our graphics said manipulation instead of investigation, just to confirm, it is an investigation into alleged foreign exchange manipulation. >> janet yellen makes her first trip to capitol hill today since becoming fed chairman. she delivers part one of her
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semi-annual testimony to congress on the economy and the monetary policy before the house and financial services committee. that's coming up at 10 on o'clock a.m. eastern. yellen is likely to reiterate the plans despite recent weakness in data and the fed won't be deterred by that weakness in emerging markets. meanwhile, the latest research from the san francisco fed shows bond investors expect policymakers to start raising interest rates in march 2015. however, the report says exact timing are still uncertain. less tats a look at where the ten-year is trading in that report right now. the cio at pimco is still with us. the key around what yellen says this afternoon is literally what she says. the first time we heard her, we can talk about forward guidance, what she says about jobs, but ultimately the real risk is how she comes over, isn't it? >> how she comes over. and i think it's possible that she is a bit more balanced than
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people expect. clearly the key things for us are going to be any comments on the emerging market situation as we talk about this location of this, you know, fragmentation in the world with the u.s. moving one way and emerging markets, europe and japan, you know, being in a different part of the terrain, if she wants. so any comments on emerging markets are very important, comments on jobs, clearly unemployment, 6.6% is very close to 6.5%. and clearly on the on recent weakness that we've seen with some of the members. >> i guess the point there being whether it's cyclical weakness or -- >> that's right. is it short-term -- exactly. and what we've seen so far from her is actually clearly on the tapering side and even slightly more. so that is why i think we shouldn't be surprised if we have a slightly more balanced view than dovish view from her. but clearly, we'll have to also listen carefully to the questions that are being asked because that is the big exposure, if you want, from
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that. >> there's a lot of people talking about whether she'll approach forward guidance, adjust forward guidance. if we look at cnbc's survey right now for market expectations, the market is pretty well aligned with what the fed want right now. despite the fact that we keep talking about it, eats let of an issue surely than what it may appear based on what markets are pricing. >> based on what markets are pricing. clearly, our role or job is always to think about what's smart in the markets and could comment the street point. and, you know, here it's more, you know, will the u.s. if, in fact, this is a soft patch, will the u.s. continue on its tapering maybe faster than expected or will it actually pose light on this short-term -- >> one question the fed will be looking at is what happens with wage pressures. unit labor costs. >> yes. >> and as an equity investor, you're going to look at that.
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if they do start to grow, that's going to have a massive impact on margins. >> yes. >> do you see that happening? >> well, i think, you know, clearly we're in that phase of transition and uncertainty. but i think, you know, it's clearly something that we'll have to look at. and i think personally the risk is on the upside. >> we can't get any lower, can we? >> exactly. we're at 6.6%. if you drill down into the employment and the jobs data, you can see that these are being quite good. so if the soft patch is, in fact, linked to a weather disruption or something, you know, quite short-term, and we have a resumption of this in the next quarter, 6.6, awfully close to 6.5. do we have a change in the rules or do we just go on? the other thing that's really interesting, if you look at demographics and participation rate in labor over the next, you know, 10 to 15 years, you definitely have a shift which
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will create a bit of tightness in the labor market in the u.s. so that is also something, when you look forward, that people may not have talked about as much as i think we might need to. >> all right. good to see you. thanks so much indeed for joining us. >> thank you. as models in new york take to the runway, fashionistas are battling through the snow. has the winter weather put a chill through fashion week or did designers shovel in the dough? we'll have your check right after this. how could a luminouscer ] protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses
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to read and consider carefull.
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welcome back to "worldwide exchange." barclay's shares extend their losses. the bank says it will cut 12,000 jobs this year as the bonus pool grows. janet yellen makes her first testimony to congress today. the jobs data expectsed to dominate. and french president francois hollande's visit to the u.s. continues with dinner at the white house. >> the obama administration has once again delayed a contentious part of the president's new health care law that affects thousands of small and medium sized u.s. businesses. bertha coombs has more details for us at cnbc hq in the states.
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hi, bertha. what's not going to happen? >> well, another delay. essentially it's not going to happen on time. small companies will now have more time to comply with the health care mandate under obamacare. the u.s. treasury announcing a rules change on monday afternoon. companies with 50 to 99 full time workers had been required to provide health coverage to their employees by 2015. originally, it was this year it was postponed for one year, now they're going to get yet another year extension before they have to be compliant. larger companies will still have to offer health plans by next year, but they can actually phase in coverage, offering insurance to 70% of their workers in 2015 and then 95% by 2016. the employer mandate does not apply to businesses with fewer than 50 full time employees who work more than 30 hours a week. it's all very complicated, but this is one of the very big things for small businesses and
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medium sized businesses in particular. even large businesses have been fighting that 30-hour a week threshold. treasury officials say that accounts for 96% of u.s. companies who employ more than 31 million full time workers. the new -- for firms with 50 to 99 employees affects about 2% of all companies. treasury says the new rules are being imposed to ensure a gradual phase in and to help assist companies to whom the mandate applies. the employer mandate has faced intense lobbying from business groups and the changes so far is drawing an upbeat response from them. although the u.s. chamber of commerce calls it more of a respite than a fundamental change. analysts say this latest move could help democrats fighting for survival in november's midterm elections. this would delay a potential wave of complaints from small business leaders. these rules finalize draft
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proposals in december 2012 and took into consideration public comments from businesses and congress. it's one of those things having people wondering whether down the line they might move the goal line altogether, ross, and maybe shift that kick in from 50 employees maybe to 100 employees. these are some of the things business groups had been lobbying for. >> maybe they just like to paint over the goal line, eradicate it. who knows what will happen. it's a shifting stand. thanks for that, bertha. have a good day. >> you, too. fashion week is keeping up in the snowy streets of manhattan. 3 million tune in to see the latest threads hit the runway. hi, alex. >> hi. >> give us the slowdowns. what trends should we see looking out for? >> there's been a lot of tradition nappahoe detailing at tommy hilfiger, which showed
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yesterday. and i think the thing about new york fashion week is that it's always very commercial. they have buying in mind. and you know that the designers there are going to have clothe that consumers will want to go .shop for immediately. >> victoria beckham has tailored proof wear. >> from girl to bona fide serious fashion designer has gone up another gear this season. so you are seeing kind of, as you said, this 360 viewing. she's used a lot of ruffles and organza at the back to make it details and beautiful. >> it's a crucial industry for the uk. $21 billion back in 2010 and growing since then. what should we expect there? >> london is always known for being the capital of creative. so everybody is now blocking here to see new, exciting
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brands, new designers and new trends. and it's really bold. christopher kane is a hot ticket, urdam, michael vandeham. we've got amazing names in this city. >> very briefly, how much do these shows translate into sales and the bottom line, you know, top line sales and bottom line profit? >> there are some collections which you'll go and look at and they will be purely show pieces. when mcqueen shows in paris, they will be exquisite downs that you won't be able to walk into the store and buy. but there will be others that are a designer's solution. >> thank you so much. jules, you should be at the fashion show. >> i'm mittsing imissing my op now. french president farther swan hollande will set down with
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barack obama to a three-course meal, 12 types of potato, caviar will be on the table. >> there is some confusion as to dessert. we would be asking what would you serve up if you were hosting the french president. joshua has written in to say snails. i'm sure hollande would like some cajun food, crawfish, okra and alligator. why not. let us know, worldwide tweet us, as well. janet yellen makes her first trip up to capitol hill today. what she she say? we'll preview the testimony
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geico. fifteen minutes could save you... well, you know. bashrclay shares have been extending in london today. the numbers yesterday were prereleased. but the bank increased its bonus pool from last year. it's paying out nearly 275 billion pounds in secenstivein. at the same time, it's cutting 12,000 jobs this year. also in this sector, regulators are driving banks out of nyc. >> they are driving them out of new york. think about, you know, where bny
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melon is. it's been pushing people to india. goldman sachs had to add new people. they did it in new jersey and utah. citigroup is now the third largest employer in singapore with jobs all of which could be in the united states. although they have pushed a lot of jobs to south dakota. morgan stanley is pushing jobs to japan and to china. >> european equities, meanwhile, are near session highs after slim gains yesterday. up nearly 1% for the ftse. up 1.3% for the xetra dax. cac 40 up 0.75% and the ftse mib up 0.5%. >> u.s. stocks are looking to add a fourth session to the three with straight gains so far. adding around 61 points to the dow right now, 15 points for the nasdaq and the s&p shy of 8 points. janet yellen making her first
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trip up to capitol hill today since becoming fed chairman. she delivers testimony to congress before the house financial services committee. that's coming up at 10:00 a.m. eastern. yellen likely to reiterate the fed's tapering plans despite recent weakness in u.s. economic data and the fed won't be deterred by that weakness on the turmoil in emerging markets. joining us, susan white, chief economic correspondent at politico and a cnbc contributor too. ben, what's the most important point about what she's going to say today? is it going to be forward guidance? is it going to be her interpretation of what's going on in the jobs or is it actually just how markets interpret whatever it is that she says? because this is the first time we've heard her, isn't it? >> yeah. i mean, i think some of it is just a learning experience for the markets with her style is like, how she comes across, what she says about jobs. i think will probably be the most critical thing. obviously, in the u.s., we've seen a couple of very soft jobs
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numbers the last couple of months. i think she's likely to at least nod to that and indicate that she, you know, realizes that there's a possibility that a soft patch is being hit here. but i don't expect her to waiver at all from the taper plans or to die verge at all from the last fomc statement. she'll say, you know, it could be a result of a number of factors that have impacted these two jobs reports. still the underlying economy doing fairley well, likely to see improvement in the labor market later this year. and that the taper will remain on pace for, you know -- she won't go into specific figures, but there's a 10 billion range and i think she'll stick to that. she backed ben bernanke heavily when he moved to start the taper. i think they're on a glide path to get to zero on the purchases, unless we see several months more of really bad data. i wouldn't expect to see a change from janet yellen this morning. >> she's very capable, very
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intelligent, a career academic. how does she view the political and media as speth pects of thi ben? >> i think she views them as a chore. she'll get some criticism from republicans this morning who don't like what the fed is doing. the press part of it we won't get a chance to see until march 19th when she does her first press conference. she comes from that academic world. she studies very, very hard. she'll be very well prepared as she was for her confirmation hearing. unlikely that she'll say something off-the-cuff. she spends hours and hours on
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proofing books learning about the members of congress she's deal with and i think she'll stick to a limited script on what she has to say. >> booefl, ben, what did we learn from the confirmation hearings about how we would have to listen to her? >> i think we learned she's very pleasant, she'll probably joke around a little bit. but she is not going to give markets anything to really freak out about. she's not going to make any big political mistakes. but i would expect what you think is going to happen, big taper. i would look for surprises. >> ben, thanks for that. chief economic cnbc contributor. coming up on cnbc a little later, up next it's "squawk
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box." but from jules and i -- >> that's it. have a great day. ♪ ♪ where you think you're gonna go ♪ ♪ when your time's all gone? [ male announcer ] live a full life. the new lexus ct hybrid with an epa estimated 42 mpg. the further you go, the more interesting it gets. lease the 2014 ct 200h for $299 a month for 27 months. see your lexus dealer.
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good morning. welcome to "squawk box." janet yellen will take the stage today. what she says will keep the markets on edge all day. another delay for the health care mandate. you can see this as the first six lead stories on drudge or number 15 on the huffington post, below the three biggest lies of keystone. this time, medium sized businesses are getting more time to get their plans in place. and dumb starbucks gets a visit from the health inspector. it's tuesday, february 11th. oh, boy, only three days left.
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2014. and "squawk box" begins right now. >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the bulls are battling back. stocks now higher for three straight sessions, although the gains yesterday were very muted. the s&p and the nasdaq logging their biggest three-day gains since mid october. of course, there is still room to go from the recent highs. the dow is now down 4.7%. the s&p is off by 2.8% and the nasdaq is down by 2.3%. this morning, if you check out those equity futures, you are going to see green arrows once again. the dow futures indicated higher by about 58 points above fair value, the s&p up by more than 7 points and the nasdaq up by more than 15. in asia, volumes were light with japan closed for a public holiday today. but for the most


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