tv Street Signs CNBC January 19, 2016 4:00am-5:01am EST
hi, everybody, good morning. you're now watching street signs. let's get you the headlines. european stocks have been jumping into the green lead higher by energy stocks. chinese stocks closing higher as well despite the weakest growth reading in 25 years. gdp data meeting expectations. reports that amazon is mulling a takeoveras they look to expand grocery service overseas and
novozymes tumbles to the bottom of the stoxx 600. >> the think is the oil prices are making it really hard for us our customers right now. we expect some continued volatility in that business. so there's an element of uncertainty there. >> hi, everybody. welcome to the show. the iea has just released it's monthly oil market report it says on the demand side mild temperatures and weak economic sentiment dampen growth. on the supply side, fundamentals suggest a further increase. in terms of specific countries iran will immediately boost output. it also says that saudi arabia is preparing for a long period of lower prices. joining us now from paris is head of the oil industry and
markets division at the iea. good to see you neil. talk us through the main message from the report this time around. the market is to remain oversupplied seems to be the message until at least late 2016. >> that is the main message, yes. the huge build up of oil stocks that we have seen in 2015 shows little sign of easing up, certainly in the first half of 2016 and in our latest report we have some concerns that the build up in stocks will continue through the second half of 2016 as well. so this seems to be very, very little relief in sight from the downward pressure on the market which this surplus of supply and demand is exerting. >> so global demand growth estimate is unchanged at around 1.2 million barrels per day. iranian oil output, you say that you anticipate a boost to crude
by initial 300,000 barrels per day by the end of the first quarter of this year. are we still looking for around 500,000 in total? >> well, something like that. 500,000. maybe even 600,000. obviously it was widely reported in the press yesterday that the authorities in iran have ordered an immediate increase in production. now whether that actually translates into real barrels being offered to the market, at prices that buyers are willing to pay yet remains to be seen. there's a certain amount of uncertainty about the pace and the volume of iran's return but it is returning and i think most photographers are taking the view that iran does have volumes of oil ready to supply to the market. it will do so in roughly the quantities that we have suggested in the report and the market is going to have to find some way of absolving those barrels. >> what do you think will be the
driver of further volatility, a lot of volatile till if we are to continue to see that? we've seen a lot of volatile till heading into this year. do we expect more? can we weather the issues you talk about here in the report? >> obviously the supply issues we have just been talking about but let's switch to the demand side for a moment. there's a lot of gloomy economic news around at the moment. the weakening of china's growth and stresses in other economies. we've seen oil demand itself growth slow dramatically in the latter part of 2015 and at the moment we have projected growth in 2016 of 1.2 million barrels per day but it's more likely that any changes in that estimate of growth in demand is more likely to be on the down side than the upside. that seems more likely to be the
case. not only all of this extra supply still continuing to come into the market in 2016 but we have less firmness if you like on the demand side of the balance as well so volatility looks as if it will be the order of the day. >> if you think we're going to see opec trying to stem the volatility, are they going to be moving any production targets? >> absolutely not. simply this, if opec were to agree to get together to have a meeting to discuss production quotas and they were to agree to remove 1 million, 2 million barrels a day, there's no automatic oil price which would be achieved by doing that. it's not a simple formula. meanwhile, of course, if they were to do that and the oil price were actually to rise, all that would do would be to offer a fresh encouragement to higher cost oil producers primarily in the writes, of course, that, you know, happy days are coming for them again. so they would be able to raise
their production or postpone the cuts that they're making and in a way opec would be back to square one having taken some of its own oil off the market and of course now with u.s. oil available to be supplied to global markets which it wasn't until the beginning of the year, that's another factor which needs to be taken into account. a fresh competitive pressure for opec. >> neil, good to see you, thank you very much. head of the oil industry division at the iea. now sticking to oil, speaking at the london school of economics, he asked how he is playing volatile oil sector. >> now you see more and more people and oil restructuring down. we still think that's the case long-term. oil restructuring down. but i think it's getting more reflecting some of the volume you wags of some of the
companies. >> all right. in other news this morning, twitter, you might have noted, has been down and we're just getting some flashes through by our wires here that reuters is quoting people are saying that twitter says some users, they're currently experiencing problems, accessing twitter as i just said. the twitter outage appears to be concentrated in europe according to a service down detector and also twitter is aware of the outage and working to resolve it. to fret not like some of us just did. twitter's not working. i can't get on twitter. i can't see what everybody is doing and i can't see what's going on. it should be back very soon. they're working to resolve that. >> now when it comes to european equity markets this morning, we were called a little bit higher. chinese data maybe indicating that we're not looking at a hard landing but a bumpy landing. i'll be talking to my guests
about this over the next hour or so and now there's also hopes that we could be looking for more stimulus out of asia out of the chinese authorities given that we continue to see weakness on the growth story. so we have been moving higher on the back of hopes for this. also we did see selling off yesterday. and some buying back into some of what was sold down yesterday. the xetra dax, cac, ftse might be higher by a bit as well. the chinese markets closed in positive territory. you saw the shanghai composite posting the first two day gain. this after fourth quarter gdp came in at 6.8%. strength in services offset the weakness in manufacturing. the annual growth figures slipped to their lowest levels seen for a quarter of a century for 2015. sri joins us from singapore. the numbers could have been a lot worse, huh?
>> yeah but we jiggle the mouse and press control alt delete and reboot it successfully the chinese stock market all in one day. shanghai composite crossed 3,000 at the close. we're up by 3.25%. the blue chip csi 300 up by 3% as well. so once again we're back in this where seemingly bad news is good news. the bad news was the economic data. q-4 gdp. 6.8% on year meets forecasts but the lowest rate of growth since the financial crisis. 6.9%. the worst rates of growth in almost 25 years so everybody is front running the idea of more stimulus i don't think anything
changed in the markets. it's about sentiment and not necessarily fundamentals and the stock market regulators. so a number of issues are still there. this volatility hasn't gone away but a relief rally in the here and now on the back of the gdp numbers. back to you. >> good to see you. thank you very much. see you soon again. >> we need to rethink our economic models in light of the current market you are the toil. that's the view of the founder and executive chairman of the world economic forum. now he explained that the impact of china's transition to a more liberalized economy is something taking time.
>> adding a company like switzerland or indonesia each year. the second point that makes me more optimistic, i see a lot of entrepreneurial forces coming up. look at alibaba. so i feel that china will use it to get a boost to its economy. >> but do you think they have a handle on that transition? what because we have seen in the past six months in particular is policy missteps and that for everybody else will gather here and be around the table. they'll specifically want to know that the leadership has a handle on the transition process. >> it's a worldwide problem. we're in new territory and i
think that our traditional economic concepts do not work anymore. so we have to test what is necessary. this new disruptive global situati situation. >> do you think they lost faith in the leadership of these countries? >> as we have seen leadership i think lately there's a growing gap which has to do maybe with the revolution because it favors those with the top knowledge and disfavors those on the low sector. so it's a very dangerous development. >> and that was the founder of the world economic forum speaking from davos.
you can e-mail the show. the add stress is street signs email@example.com. it's on screen for you now. you can also find us on twitter although it might be delayed at the moment because twitter is still down. but you can find us on twitter. street signs firstname.lastname@example.org. coming up here on the show we'll be hearing from one of the world's top media figures on the future of consent consumption. also, china is doing the right thing by reigning in excesses. that's what malaysia central bank governor told cnbc. hear more from that exclusive interview as well. and excitement galore. this afternoon from 1600 cet we hit the swiss alps. cnbc goes live from davos and the world economic forum. a whole bunch of others will be talking to leaders in business and politics so loads more to come this week. we'll be talking to the likes of
the adeco ceo. ihg ceo. and solar impulse founders. we will be back with much more just after the break. join us here on street signs. it's a really big deal. and with fever, aches, and chills, mom knows it needs a big solution: an antiviral. don't kid around with the flu, call your doctor within the first 48 hours of symptoms and ask about prescription tamiflu. attack the flu virus at its source with tamiflu, an antiviral that helps stop it from spreading in the body. tamiflu in liquid form is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing, have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately.
dividend. they also launched a new share buy back program. we spoke to the ceo earlier. he expressed some concerns about the slump in oil prices. >> the thing that worries us is our bio energy business in the u.s. where the low oil prices are making it really hard for our customers right now and we expect some continued volatility in that business. >> they have been rallying after sales growth of 5% beating expectations. they also enjoyed a 10% rise in-turn over to 53 billion euros. i caught up with the ceo earlier this morning just after the company posted results and i started by asking him about the company's growth drivers. >> market is about 2.5%. bottom line against improvement and strong improvement 14%. operating profits 12%.
overall good results. the main driver for unilever is two things. a strong innovation standing here in the middle of one of our stores that most of our products have had strong innovations and in the emerging markets market development. emerging markets are up 7.5% despite the things you read in the newspapers. >> you do mention the head winds. which of these is most worrying to you? >> well, obviously the instability. we all have to worry about and the other one, the big income dispersion it's not good to us if the economy only goes to rich people. so the markets are actually going down and you are in a phenomenon now that you might in some countries show economic growth but that you actually see the growth of the market slipping away from you. it becomes a very polarized
environment. we have to be worried about the currencies that we have seen which will continue and that's really a reflection of the capital outflow, the low commodity prices and frankly the lack of structural reform in many of the markets. brazils, the indonesias and to some extent the slowing down of china as well. >> do you anticipate it's going to get worse? we just saw the chinese gdp print this morning and while it maybe wasn't as bad as what some could have feared it's still indicating more softness to come. what happen ifs we continue to see the slow down? >> the china number 6.9% are relatively good but it's what is happening in 2016. what we need to do is just work harder to get the same results. you need to bring the it and that's even more important now than in the past. so what we do in unilever when the global environment has less growth we also have to work hard on our cost structures so we're implementing zero base and looking at better leveraging our
shared services so we think if there is slower growth we can offset that with a better performance on the bottom line and investors should be happy with that. >> now it has been described as the most influential tech conference in europe. the digital life design event brings together a global network of industry leaders. ariana huffington is the co-founding editor and chief of the huffington post. she joins us this morning. good to see you. let's start with the basics. you launched the post in may of 2005. ten years later, what are you doing now to keep up with the changes in how content is devowered by all of us and how the landscape of media is changing? >> thank you well first of all we're a global media company.
the huffington post is one of our 15 editions around the world so everything we are doing is about global, mobile and social distribution. we're seeing that more and more engagement and content consumption happens off side so we're publishing at the same time both on our own side as well as on facebook and snapchat and on every other medium. and what is also very important for the huffington post is to see ourselves both as a generalistic enterprise that has won a pulitzer and does investigative reporting and offered to hundreds of thousands of people around the world to express themselves to tell their stories and to engage with each other. >> sure.
>> you're combining your video units so you're saying good-bye to 24 hour huffington post live and you're putting a bunch of units together under one video output. >> what we did is to maintain it as part of the huffington post but bring everything together because so much of the video produced is now consumed through distributed content on other social media like facebook and it's much more efficient to go live when it's warranted to go live for big events, for celebrity or news maker interviews and otherwise go directly to short videos of the kind that people prefer to
consume but we're doing big ones like where children are interviewing their parents and we're focussing on big editorial priorities. one is solutions and focussing on what is working around the world. and the others is ways to help our readers and our viewers get more value out of their lives, reduce stress and improve productivity and fulfillment. >> i do like you're so focused on why sleep is so important. completely underrated in many of our worlds. where do you think the role of traditional media is in all of us? especially glancing toward having to close down operations in the u.s. just recently? >> well, traditionally they're
converging. they're doing a great job online and new media like the huffington post are doing more and more investigative reporting and things we associate with traditional media. that's very fast becoming obsolete. >> i want to ask you about how you have chosen to cover the u.s. presidential race so far and in particular how you have chosen to cover one of the front runners in the republican race. the front runner mr. trump. just talk to us a little bit about that because you made an editorial decision not to cover it in a traditional way and to put him on the entertainment pages for awhile. why are we in this? >> so we covered him in the entertainment pages until he made his statement that he as president would not allow
muslims into the country and that is a statement of such tremendous danger for the country that really goes against all that america stands for and that's when we started covering him in a way that constantly reminds the public of what a danger it is. i believe the media has given him a free ride in many ways. they have given him an enormous amount of attention and they have not really focused on how destructive what he is proposing is. >> i think that would resinate with a number of people defin e definitely but how has the reaction been from other people in media toward what you have done because it's quite -- i can't think of any other large news group that would say we are
going to choose to put one of our main presidential candidates on the entertainment pages or scale back coverage completely. how has that resinated with some of your peers in the field? >> well, the huffington post has always approached news in our own way. for example, we don't look at news in terms of right versus left because a lot of issues we care about are beyond left and right and in the same way where ever you are in the spectrum on the right or on the left donald trump represents a huge departure from america's values and the world's media needs to remind everyone of that fact instead of covering him as if he's a conventional candidate with whom you may disagree but whose proposals are not directly undermining american values. >> i think i have to give you the prize for quote of the day regardless of where one is on the political spectrum but we
don't look at news as right versus left because a lot of the issues are beyond right versus left. there's something very smart about that. thank you very much. co-founder, president, and editor and chief of the huffington post. what do you think of what she just said in terms of coverage of donald trump? or that quote. we don't look at news at right versus left. a lot of the issues are beyond right versus left. let us know. you can find us on twitter once twitter starts it's coverage again it has been down over the last half an hour or so but i'm sure i'll get all the messages then. rebounds in italian banks were short lived after they revealed that the ecb is probing bad loan
portfolios. in other news as well, the eagles guitarist and co-founder died yesterday at the age of 67 after illness. the band known for hits like take it easy, life in the fast lane, hotel california. i don't know the first words. but it was introduced into the rock and roll hall of fame back in 1998. the eagles co-founder said in a statement, quote, i know that crossing paths with glenn lewis frey in 1970 changed my life forever. it will be strange going forward in a world without him in it.
green. oil prices enjoying a bit of a rare rally these days. chinese stocks closing higher despite the weak growth reading. weakest in 25 years. gdp data meeting expectations. delivering a deal. rallies on report that amazon is mulling on a takeover as the e-commerce giant looks to expand it's grocery service overseas. the danish enzymes maker cuts it. telling cnbc the revision is down to the crude price. >> the thing that worries us is our bio energy business in the u.s. where as the low oil prices are making it really hard for our customers right now and we expect some continued volatility in that business. so there's an element of uncertainty there. >> welcome back we're just getting the latest print of the u.k. inflation data december cpi
plus 0.1% on the month. plus 0.2% on the year. it was forecast to be 0 on the month so it's come in stronger than forecast. core cpi was plus 4.3% on the month. 1.4% on the year. it was forecast at 1.2% on the year. so stronger core cpi reading on the year and we're seeing a little bit of reaction as well and we saw a little bit of a move as well. >> now let's move on. u.s. futures, the u.s. of course coming back into play today after we had martin luther king holiday yesterday. so lucky people in the states.
so hope you feel nice and refleshed to come back to stable markets now. that was how they closed on friday so we have a couple of hours to go before the u. s. markets open. european markets we were calling a little bit higher on the back of among other things the chinese reading that fourth quarter gdp data. so asia rallied a bit but we could be looking at more stimulus to come from the chinese authorities maybe and here in europe added gains after losses in yesterday's session. let's talk more about china. chinese markets closed in positive territory. the shanghai composite posted the first two day gain of 2016. this after the fourth quarter gdp in china came in at 6.8% broadly in line with consensus. strength in services offset weakness in manufacturing. the annual growth figures slipped to their lowest level in
a quarter of a century for 2015. the managing director and vice chairman of asia pacific at jp morgan chase and she joins us from hong kong. good to see you. the reading not as bad as what it could have been. i mean, it wasn't a print of 6.5%. it could have been a lot worse well it was very much in line with market expectations. four year gdp 6.9% but reading beyond the headlines we find remarkable divergence between the service industry and the manufacturing sector so it's a tale of two industries. the service industry was at much faster pace accounting for now over 50% of gdp when the manufacturing sector experienced a lot of challenges now accounting for only 40% of gdp
so i think you'll continue to see the service industry driving growth. the most important question to ask is what is going to happen to the manufacturing sector and also where wl the service industry can stay resilient despite a downturn in the traditional manufacturing industry. >> do you think now that we'll be look at more stimulus from the pboc? >> in the recent market turmoil we have had some stabilization in the macro economy. for example the housing numbers are looking slightly more encouraging with transaction volumes and prices stabilizing however i think we'll continue to see a pretty accommodative monetary stance sometime in the next several months we will likely see a reduction in the ratio they pledged a proactive
policy. and finally in terms of r and n, as we see depreciation going forward i think they'll find some relief. >> i hear what you're saying and i know that a number of other people out there, very smart people like him for example they say that we don't think that we're going to look at a hard landing from china. it will be a bumpy landing this year but not a hard landing because there's more policy plays that can be done. that can be aided to the markets. do you think that we're going to be -- >> that's right. >> do you think the market is going to feel confident enough in this? we had what seems to be quite a few u-turns in terms of their policy. are markets going to trust them now? are we going to see the flows reversed and going back to china? are we going to see investment in china?
>> well, there's always going to be a tug of war between market forces and policy interventions sometimes they can help in the market downturn but investors right now have a lot of cash on the sidelines. they're taking a wait and see attitude. at this juncture if you look at the china market or the hong kong market valuations are actually very attractive. the hong kong market is among the cheapest in the world. is that really justified? so i think once we have seen the stabilization of the economy and currency investors appetite will naturally return to china and to hong kong but this may take some time. of course it always takes time for investors to rebuild their confidence. >> thank you very much for your time. managing director and vice chairman of asia pacific for jp morgan chase. thank you.
>> in corporate news, shares are experiencing the biggest one day rise since november with rumors swirling of a possible bid from amazon. this as the e-commerce giant is looking to expand it's online grocery delivery service outside of the united states. david grey is a retail analyst and joins us on the phone. thanks for being with us. would it make sense if amazon were to take over? >> i think it would. we have seen amazon expanding it's pantry service into the u.k. so that's their online grocery service and buying it or tying up would really allow amazon to get it's handle or expand into the very competitive online grocery business within the u.k. and in terms of amazon's further range, obviously they have been expanding into non-foods from a
grocer base and amazon is looking to expand into food. so it's quite a good fit there if they can come to some sort of an agreement. >> people might be watching and might be thinking look we can understand why they would take the money and run, maybe but why would amazon choose them? are they really that strong in the u.k.? >> yeah, i mean ocado is not the biggest online grocery player in the u.k. there's bigger offers on the grocery market but they have a world class distribution and they tend to use the warehouse models. they don't actually have any stores. so in that sense they're more of a better fit with amazon because amazon is traditionally used -- it's traditionally a pure play online retailer using warehouse and ocado also uses that method of fulfilling orders. >> do you think people would continue to use something like online retail delivery services
if we were to see the economy grow significantly softer? there's still a lot of analysts that say we could be heading toward -- we had one of our guests on yesterday saying we're in a recession currently. call it as it is. are people still going to be paying extra for the service? >> yeah. i think so. you have to remember in the u.k. online grocery is experiencing strong growth. there's still questions for the retailer but from the consumer point of view there's growing demand a lot of online food retailers made it better for the customers. so i think the picture generally for the u.k. is one of online grocery continuing on an upward trajectory and more consumers trying it and using it because it is very convenient to have it delivered to your home address
so yeah i think it's important. >> david, thank you very much. david fwrks ray, retail analyst at planet retail with us to talk about the latest possible deal of amazon, maybe, making a bid for ocado. let's just update you as well on some flashes coming through there we go. owners will be offered checks for a possible software upgrade. they'll announce the measures in march to improve the emissions performance on the current diesel models that they have. so they're going to be recalling around 15,000 vehicles for emissions tweaks according to minister and following up saying that owners of around 700,000 vehicles will be offered checks for possible software upgrade.
>> they're aggressively expanding their presence across asia. more from the nikkei. >> yes. earlier this month bank of tokyo mitsubish invested $800 million in a bank in hopes to secure a footprint in the region. also in thailand it's already bought a major commercial bank spending $4.5 million. meanwhile it's rival has poured money into an indonesian bank buying a 40% stake in the firm. and it has also invested in cambodia's largest bank making it an affiliate. even though they remain shakey they see it as an opportunity for acquisitions and their aim is to expand into the retail business dealing with local individuals and small and mid sized firm which is is difficult to do through the local branches. competition is particularly fierce in vietnam where they are investing in local banks.
regardless of market size, asian banks are seen as a growth opportunity. especially since countries are now integrated as a single market and ttp is set to come into effect. even so there's risks and china's economic slow down and security issues such as terror attacks in indonesia just to name a few and also rewards do not come by easily since it's indonesian affiliates stocks nose dived and the bank had to book an impairment loss of $500 million. so japanese banks are being put to the test as to whether they have a good eye for business opportunities plus a lot of patience. that's all. back to you. >> thank you very much. have a good day or good evening and we'll see you again. >> shares have been suspended after more than 8%. claudia, how much longer is this going to go on for? the share prices, they're not
worth all of that much to begin with. >> we have seen it fall significantly since the beginning of the year but since yesterday down very strongly. down 37% this year. we straw market turn and it was up this morning in positive and now suspended limit down. this is on a day when there's a ban on short selling. quite surprising to see it down this much but along with it, also suspended limit down all the other banks following suit. they're all in negative territory this morning and quite significantly again. this comes after over the weekend the ecb did request some more information regarding non-performing loans on some italian banks and this seemed to trigger the very big sell off but again this has been a sector that we have been watching closely as we have been trying to work on a bad bank that renzi
has not been able to accord with the eu. also with the slow growing economy and again with the non-performing loans that have grown at a slower rate but still growing. haven't fwon above the 200 billion level here in italy. so certainly a sector we will continue to watch and very significant the losses we're seeing in the sector again. back for now. >> good to see you. joining us live out of italy. morgan stanley and bank of america are the next banks to promote fourth quarter earnings before the bell later today. a closer eye on exposure to energy loans given the slump seen in the price of oil. wilfred joins us from cnbc headquaters. more banks. >> absolutely right. very good morning to you. and i think at that point you just mentioned that's the key focus as we continue through the banks earnings season. are we going to get any more write downs on commodity
exposure? jp morgan results last week which were good and got lost in the late sell off and will have one write down on the commodity part of the business. will that continue is something to continue to watch and of course at the moment so far we're not seeing too much contagion outside of the energy and commodity sectors but we need to keep an eye on it and the banks are one place where we can do that. second to watch is that debate between the retail part of the business and the investment bank part of the business. focus should have been on the retail bank given that we got the first rate hike only a month ago but have given the market turmoil, everyone is focused on the investment bank. fixed interest has been soft. bank of america has already worn down on its fixed interest business in december. but not expecting absolute strength. jamie dimon wasn't upset by
volatile where as black rock was much more concern sod we'll see what they have to say and we'll see what they have to say about the leadership changes. we have the imf's latest world growth forecast breaking at the top of our show and at the end of the show we're joined by their chief economist and we'll be discussing that in light of the recent chinese gdp data. >> hang on for a second. the next couple of stories i know that you're dying to hear them. >> apparently a quarter of all dogs are depressed. this is according to a study by pet charity pdsa. more than 2.3 million dogs are left on their own for at least five hours a day despite vets advising otherwise. on top of that, forget all the traditional vices like alcohol, smoking, laziness, fatty foods, et cetera, it's apparently
because you're glued to your cell phone all day long is to blame for your bad health according to various studies. it can give you a stained smile apparently, a scabby face, stop you from sleeping, disturb your concentration and all kinds of other things. so yeah, i don't know, what do you think about this wilfred? are we on our mobile phones too much? >> does it hinder my smile? i can only comment on that one. >> smooth. >> well, you just proved them wrong, wilfred. thank you very much. have a good day. you're still just waking up. so slap your face a little bit and wake up and have a good show later on. still to come later on in the show, netflix shares are down as much as 10% so far in 2016 but the movie streaming giant set to report it's fourth quarter earnings later today. will the result bs a smash hit
welcome back. you're still watching street signs. 11 people including five police officer us have been killed by a suicide bomber targeting a police checkpoint. that's according to multiple reports. at least 17 people were also wounded when the bomber rammed his motorcycle into the checkpoint. the u.s. national guard has deployed additional support to flint michigan to assist with the city's contaminated water crisis. tests of the water supply have shown elevated levels of led after city officials tried to save money by taking tap water from the flint river. a baffon, and demagogue and
wazzock some of the words used to describe donald trump. most argue that barring the gop front runner from britain would be counter productive and actually boost trump's presidential bid. >> the world's oldest man died at the age of 112. he was born in 1903. the same year that the wright brothers flew their first plane said that his secret to a long life was not to overdo it or drink or smoke. what a long life. 112 years old. fantastic. >> and book has launched a europe wide campaign to combat extremist commentary. they set up the initiative for civil courage online in berlin pledging over a million euros to support european mgos fighting online extremism. it is after they were criticized
for not doing enough to remove racist posts. >> netflix is set to report fourth quarter earnings after the bell today. analysts are looking for whether or not the movie streaming giant will top 75 million subscribers. shares are down by around 10% so far this year. she the global analyst and is with me. hi, neil. >> good morning. >> what do you expect from netflix? what should we be looking for? >> the key focus will remain on the subscriber numbers and the other will be on content cost and those will be the main two focuses. we're more concerned about the longer term prospects of the company but primarily the investment opposition on netflix good or bad is based around value and volume. we have issues with three things. three vs, value, volume and valuation so there's a lot of
head winds. >> what are some of the head winds? and what are the longer term prospects. >> the content companies themselves now if you look at the press reports coming out over the weekend and wall street journal and other publications are saying there is netflix good value for money. if you look in the past they were at a point of getting further distribution for their content. now they're seeing the fact that netflix is one of many different offerings that are out there. i've got 50 different kinds of channels i can get that through now and actually for all of those content companies, a lot of the age of netflix, 30% is actually coming from illegal channels effectively. so they're not getting paid for that access.
>> so why wouldn't netflix look at teaming up with one of the other many offerings that you're talking about? if we are looking at a long-term future that might not be solid for the company. should they be thinking about this now? >> they go along on their own path which is why i think they have chosen to expand to 130 countries earlier this month but many of those countries are allowing some form of access because it's quite easy to get access to the richest content on netflix in the u.s. market but netflix i don't think would be a partner with the biggest nemesis which would be amazon any time soon. it's cheaper than netflix so i can get not only my deliveries next day or even within two hours in certain u.s. cities i also get all of those streaming music services and all the content for movies and tv for less than netflix. >> so you don't sound like a
buyer right now. >> i cancelled my netflix subscription and the valuation 400 times pe evaluation of facebook that is a platform company. >> thank you very much. global analyst at av 8 global. let me show you the u.s. futures. a delighter greener open. green in europe today. we're setting ourselves up for catch up after the solid red close that we saw on friday. now this afternoon from 1600 cet, i'll be back. we're hitting the swiss alps as well. the world economic forum more importantly. steve, jeff, julia, they'll all be talking to the good of business and politics. a lot going on out of davos this
week. we'll be talking to the ceo and solar impulse founders and a lot coming up. on top of that you'll want to stay tuned for the rest of the week because we'll have extended davos coverage throughout the rest of the week as well. now the eagles guitarist and co-founder glenn frey died yesterday at the age of 67. known for take it easy, life in the fast lane, hotel california was inducted into the rock and roll hall of fame back in '98. many of us enjoying that music still and we'll leave you with a little bit of a listen here. the flu virus hits big. with aches, chills, and fever, there's no such thing as a little flu. and it needs a big solution: an antiviral. so when the flu hits,
call your doctor right away and up the ante with antiviral tamiflu. prescription tamiflu is an antiviral that attacks the flu virus at its source and helps stop it from spreading in the body. tamiflu is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. before taking tamiflu, tell your doctor if you're pregnant, nursing, have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confusion, or abnormal behavior. the most common side effects are mild to moderate nausea and vomiting. anti-flu? go antiviral with tamiflu.
good morning. breaking overnight, china gdp growth hits a 25 year low. >> asian stocks closing higher. major european averages off to a positive start and u.s. equity futures pointing to a strong open on wall street. >> and whatsapp. how there trying to change the way businesses reach customers. heres' a hint. money's involve. it's tuesday, january 19th, 2016 and worldwide exchange begins right now.