Shares in reverse. As continue martin warns the fullyear profits will have after lower margins make for a, quote, very disappointing year a wealth of change ubs reorganizes Wealth Management in the biggest overhaul later on the show, 15 days to find a compromise we talk digital taxes as french minister says he is working with Steven Mnuchin to smooth over tensions a warm welcome tostreet signs. We kick off the show we are in the midst of a global rebound. Yesterday, we saw u. S. Stocks engineer a turnaround as investors begin to reassess the real risk of further escalation in tensions in the middle east that positive sentiment has largely filtered over to asia. In europe, we are seeing trade kick off on a stronger foot. In particular with the dax up 1 youll remember this time, the dax was the clear underperformer on the day a chemicals heavy index. This bounce back we are seeing is alongside a pull back in the oil pros a little pause for breath and assessment for what lies in the middle east right now. I mentioned how the strong trade on wall street filtered through to a stronger session in asia. We can see green across the board. The nikkei 225 up. Yesterday we saw it underperform a reversal of that trade the mainland chinese indeices performing well. Seeing decent gains there up about a third of a percent shifting gears to the currency markets, i want to highlight for you as joumanna mentioned, weve seen some Strong Movement in the yuan we are seeing on shore set for the biggest daily gain since june big movement there you can see the dollar yuan trade at 6. 93. Below the seven level but big movement overnight really interesting move there. It has been going under a little of the radar given the Geopolitical Development we have started to see a complete turn around in how this currency has behaved particularly heading into the phase one agreement set to take place next week. Today, about half a percentage point firmer there was a lot of talk last year when we broke through that seven, that level as to whether or not chinese authorities would start going down the route to use their currency as one means to gain a bargaining chip. We dont have full details in the phase one trade agreement, one thing is that china will make efforts to brang the currency under more control. It is moring in the socalled right direction. The direction the u. S. Wanted to move and certainly below that seven mark now certainly something to keep an eye out for. We did get fresh data on the china reserves rising more than expected. That comes alongside the gain versus the dollar. You would think if they were actively intervening, the Foreign Exchange would be moving in the opposite direction. That is it for the yuan. The u. S. Has denied a visa to irans foreign minister for this weeks Un Security Council meeting. The submit that was organized before the killing of Qassem Soleimani was set to take place this thursday. The body of Qassem Soleimani has arrived in his home town of kerman for burial. Irans ayatollah led prayers and hundreds of thousands of mourners packed the streets with some chanting death to america getting out to beirut today. A lot of developments. Just talk us through the rhetoric that is coming out of iran in the last 24 hours. It seems the case for a diplomatic solution has now been completely closed. Reporter as you said, it is a very fast moving story in the last few minutes, weve heard some flashes from the news agency of the Iranian Regime one thing they mention is that the government is reviewing 13 different revenge Case Scenarios to avenge the murder of Qassem Soleimani. Another flash that suggested that the Foreign Ministry would be, quote, ready to come back to full compliance in the nuclear deal, end quote. That goes to show you that really, this is a regime that is seemingly scrambling to keep up with what is coming out of washington at this point President Trump has said again and again, mike pompeo, ryan hook, all of them sticking to one constant theme, which is that they do want to have a conversation with iran it is just about getting to the table and how that might actually be possible it is interesting that as well as all the other news weve seen coming out in the last couple of days, weve heard the United States has denied an entry visa for the leader scheduled to come to a un meeting. It is not the first time hes been denied access from the United States. When i spoke with the u. S. State department represent a couple of weeks ago, she told me, we dont consider zarif, the foreign minister someone who has the ear of the foreign leadership of iran, hes not someone we would sit down and negotiate with. It seems like iran they are issuing 13 different scenarios, they are not necessarily closing the door completely with regards to the nuclear deal. If you remember, the Trump Administration ended that early on he began to take steps to dismantle that this is something the iranians have tried to use as kind of a car carrot and stick scenario to kind of threaten again and again that they would step back if the europeans werent able to josle along the americans to come back into that deal not necessarily closing the door on things. That does speak to the fact that everyone in this part of the world is in wait and see mode. We are waiting here in hezbollah seemingly quiet. This is an organization as you know, is a u. S. Designated terror organization. This is a country in the middle of an economic crisis. They dont have a government they failed to form a government hezbollah has been part of that process. They want to look strong and not loose support in this country. A lot of folks looking at what is happening in the persian gulf saudi arabia, the uae issuing statements calling for calm and discourse. Saudi arabia for several years now banging the drum when it came asking the United States and european allies to be tougher on iran and what they call irans maligned behavior. Everyone seems ared to step back and see what developments will come it is not a question of if retaliation comes from iran, it is a question of when and how. Well continue to update you an interesting distinction between the language coming out now say from saudi arabia now than six months ago. That was coming to us from beirut joining us on the phone, the uk former ambassador to iran, sir richard ba Richard Dalton iran in the last 24 hours said this he will no longer adhere to the commitment of jcpoa. In your view, is this deal as good as dead thats not what iran has said they remain bound to the commitment and to the unique monitoring by the International Atomic energy agency, which they committed themselves to in the agreement theres been a lot of sloppy reporting on what it is that iran has said they will no longer do. What they have actually said is they will no longer necessarily be bound by the limits on the your y uranium enrichment theyve given themselves freedom to enrich more uranium and in different places but giving themselves the freedom to do that and actually doing it are two Different Things theyve not committed to any time table or infractions of the jcpoa, which would be seriously worrying with respect to proliferation of Nuclear Weapons. I take your point on that can i ask you in your es steamed experience what the uk priority should be here and if they should go down to attempting the solution even though it could cause some friction with the u. S. Of course they should, this is an International Agreement endorsed by the security council. Weakened severely by the United States and now by iran for retaliation including the United States totally unjust tied economic war this agreement is still vital for the security and the interest of important United States allies. Of course, the British Government, germans and french should be working to try and restore implementation of it by all parties including the United States thats a very big ask given the positions of the United States government last september, president macron on behalf of a number of countries advanced a temporary arrangement which would help halt deterioration that would involve some small concessions in return for iran no longer withdrawing from the implementations which we have already discussed. That attempt failed but it has got to be started again. It has to be added to because of more resolute, more comprehensive approach to massive security which have emerged in the middle east and accelerated by the unwise, unthought through assess nation of general Qassem Soleimani. You mention how this new stance from iran gives them more freedom, you havent said that they are going to execute some of the things they can now do under the a 2015 nuclear agreement. How quickly could they actually increase enrichment levels President Trump has said iran will never have a Nuclear Weapon how likely is that everyone says that. Chiefly iran that is backed up by their religious law. There is not sufficient trust in iran to keep that promise, which is why we have this agreement. We have to come back to it to ensure that iran keeps its promise. Sir, to bring it back to Something Else weve been discussing the last 24 hours, there is a bit of confusion whether or not the u. S. Military were looking to withdraw troops from iraq again. Multiple reporting going on there. What do you think the British Government should do here and what their focus should be on the british troops stationed in iraq today and are providing support and equipment to iraqi and kurd fighters. Tit is impossible to get out of the bases and do any serious training of iraqi forces or any serious counter Islamic State operations so the effect of the assassination of soleimani has been temporarily very damaging to the counterterrorism mission. My view is that the writing is on the wall and that thats recognized by all involved from london and washington to baghdad that iraqi parliamentary sovereignty which we worked so hard to build up after 2003 has to be respected. Everybody recognizes that the withdraw has got to be done in an orderly manner and in ways to ensure that forces really can oppose the reemerging Islamic State groups which remain a danger even though without the ability to command large waves of territory i believe there on their way out but as a matter of months and years, it remains to be seen thank you very much we are going to squeeze in a short break. Coming up, as continue martin shares shrink after a warning of sharp fall in fullyear profit more coming up after the break janine i used to be a little cranky. Dealing with our finances really haunted me. Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great vo get set up right with a live bookkeeper with intuit quickbooks. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back daimler has been sued for almost a billion euros by a group of investors who claim the carmaker hid the use of emission software daimler said it would fwiet it with all legal means as continue martin shares are under pressure after the company warned full year adjusted profit is expected to nearly half after weak demand in europe led to a fall in wholesale volumes. Blamed challenging trading commissions. A call 2019 a very disappointing year the company says it remains in talks with potential strategic investors. Royals Royce Motor Cars has posted record sales. The bmw owned automaker reported a 25 increase in sales boosted by rising demand for the new suv model. Speaking to cnbc this morning, rolls royce said despite the increase in sales, the carmakers refuses to sacrifice exclusivity for volume the price strategy is important. We will never offer any car or product below our current existing price range we are not lowering prizes for the sake of pure volume. We are in the highend exclusivity, we are luxury goods. Our clients see us as luxury goods and it is to be maintained like that. Bentley returned to profitability in 2019 as the british carmaker saw growth in europe and america the company did not reveal its exact profit figure and said annual sales grew by 5 thanks to Strong Demand for the new conversable model. Really interesting updates from carmakers this morning a mixed bag one Common Thread you can pull out is the success of the suv range, which is interesting. It has been an incredibly tough run for Austin Martin who would strive for consideration by ferrari and they is said, no, you are not the luxury carmaker that ferrari is. If we can bring out the price chart for Austin Martin. Retreating 75 below that level now. It has not been easy for this carmaker one thing i thought was interesting, for the whole year, 2019, they have recorded a profit of 135 Million Pounds or so guess how much they paid and spent to get the listing up and running in 2019 . Similar amount about 130 many illillion pounds. They spent a lot of money to make it public but at what cost. Anyone who would have bought this on day one is down 75 . It has not been a very positive source that is in contrast with the likes of royals royce as you said doing very well on the back of their suv and their leadership saying they wont sacrifice exclusivity for volume going into the autonomous driving world and people using fewer cars, there could be increased demand for that high end part of the market because they are viewing very, very differently. This leaves the company a little bit in the lerk. On the look out for potential external investing leave the luxury area there now and look at the oil markets. Wti and brent have pulled back a little bit from the killing of the top general. Trading around 63 a barrel. With he saw crude climb to 73 a barrel that was the highest level weve seen since september investors seem to be investing in escalation in the middle east reflected in the pull back in the oil markets. Lets look at the safe havens. Gold in particular you can see gold down slightly today hovering around sevenyear highs. Gold is the key beneficiary of trade. Weve seen them come together in the dollar strengthening another major gainer when it comes to the safe haven there. Have them putting their money in the recent risk of trade that has come together. Lets bring in our next guest. Collin hamilton, weighing in in particular on the movement weve seen on gold this morning, gold pulling back and still hovering around sevenyear high. Still the investor sees it as an attractive place if you think investors are looking for ahe hedge it is interesting both oil and gold havent had that ability. You are starting to see them, january and february are typically good months anyway you get the asian allocation back we are seeing that amplified gold tends to move in ranges broken out of the upside, weve been minus 1,500 it will hold here a little while. Well see things rotate a little more put a little more in the portfolio at the moment. You talk about how gold tends to trade in these tight ranges talk about the down size if you see a reversal where could gold go if we do see that risk come back on the table. Last year, we started to see Industrial Metals going very well you are looking at trading back down to 14, 15 we are not seeing in that risk on scenario again. It will be interesting, coming out of the Chinese New Year will be an important time we have seen a decent rally in the industrial economy and equities over the past two or three months probably a little ahead of fundamentals it is the case of whether we see china which tends to lead the cycle back up. 2019 was a good year for gold on the back of two factors one central bank easing. That correlation still holds especially in that quarter of the year 2019. This year, it looks like Central Banks will be pausing. It sets the tone for everyone else can the Central Bank Purchase those. If both of those elements change, it looks like the upside potential is capped. I agree it looks like we are in an easing environment the aggression we want is the Third Quarter for gold because you have the strong etf flows and Central Bank Purchases Central Bank Still trying to dedollarize. Russia, china, that will still be a purchase of gold. Like an annuity for the gold market thank you all that glitters is gold. The head of research at bmo Capital Market tweet us at strestreet signs. Stay with us, another twist in the tale of ghosns escape as japanese authorities issue an arrest warrant for his wife. Well have more after the break. Im really into this car, but how do i know if im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Welcome back to street signs. Im Julianna Tatelbaum and im joumanna bercetche. These are your headlines Risk Appetite returns chinas yuan looks for the best day since june the u. S. Denies the iran foreign minister a visa to the country as largescale funeral processions take place ahead of the burial of Qassem SoleimaniAustin Martin warns the profits to be had after lower margins make for a very disappointing year a wealth of change, ubs reorganizes its Wealth Management business in the biggest overhaul sending shares higher in zurich we are now about one and a half hours into the european trading session. Europe has certainly joined the glob Global Global rally we saw a reversal of early Global Markets overnight, the Asian Session benefitted from improvement in the risk and the dax leading higher up about 0. 9 yesterday that was the clear underperforming region investors really reassessing the profile of the middle east and the likelihood of the direct confrontation of the u. S. And iran a little pause for breath there and investors putting back money which they took off the table and into safe haven assets we mentioned there, the keynotabke key notable mover has been the yuan it is a key currency to watch. Sterling strengthening versus the dollar around 1. 3188 while the euro pulls back slightly down to 1. 1182 looking at u. S. Futures. The key for trade globally was the turn around we saw on wall street the return of the risk on trade. We are looking like we are in for another positive session in the u. S. All three major indices are looking at a stronger start to traderly on this morning let me take you to some live pictures of the funeral procession for the Iranian Military commander Qassem Soleimani. His casket has been brought back to his home town of kerman to bring you some flashes from the Iranian Press saying a number of people have died in a stampede during the funeral ceremony in his home town. We are looking at pictures of that procession take place according to the Iranian State tv, there have been millions who have turned out for this procession that number has yet to be verified we are waiting for further reports on the stampede which has allegedly led to the death of other people in attendance. Well keep you posted on that. Tokyo prosecutors have issued an arrest warrant for the wife of carlos ghosn had he is accused of, quote, lying to investigators during an investigation last april she is currently with her husband. Nissan has renewed charges against ghosn. The carmaker still holds ghosn responsible for financial misconduct ghosn continues to deny any wrongdoing more details about the escape saying he used a bullet train to travel from tokyo to osaka where he later allegedly boarded a jet to lebanon via is stan bull. Well go back now to hadley. I think the Key Development over the last hour has been news of the arrest warrant for Carlos Ghosns wife what does this mean for the situation now . Does this mark an escalation of what is going on with ghosn. No doubt about it this marks an escalation here. Youve got to remember that carolghosn holds american citizenship. That might have serious implications whether shell be able to answer that warrant. There is a wait and see mode happening over whether or not interpoll will be able to intercede with regards to an attempt to get ghosn back to japan to answer questions there. We are less than 24 hours away from a major press conference. It is an invite only press conference according to a spokesperson for the family, theyve called the move to issue that arrest warrant for carol ghosn pathetic and say it is directly linked to the press conference hes planning to give tomorrow in beirut this is something that is the latest in the series of incredible moment and incredible case the great escape the multimillion dollar, multicountry, threemonth in the planning escape which has folks on the ground here in lebanon hailing him as an international bad ass, if you will he went from over a year incarcerated at home in japan, the ability to escape and come to lebanon now to tell his story. All eyes will be on that french tomorrow the latest details involving multiple hotels and train stations, a highspeed train, a box with holes drilled in the bottom so he could breath. You cant make this stuff up you certainly cant we are all waiting for tomorrows press conference at 3 00 local time. 1 00 p. M. London time. Well be watching that closely when ghosn speaks out. A ubs staff memo marks the first major shakeup since the joining of the unit by coheads last year. The communication did not detail job cuts with the move but certainly the stock we have been watching closely in the last couple of months lets bring in alex who is the future fund manager. At the end of the day, we are still beginning the year in january. Many people are thinking of putting money to work. When you are putting together your portfolio, what are some of the major themes you are trying to tap into in 2020. We are all about taking a very long turn via 2020. Part of the story and hopefully investing in three years time, five years time the crucial thing at this stage is not to be drawn into one specific theme we are trying to invest in everything from cloud to wind and fish to chips. What we mean is sustainable salmon farming, and cloud computing, alternative energy as well really, the starting point is the very, very simple idea it is about the allocation of the course we have a growing population we have to reach 11 billion people by 2011 we have the resources in terms of land, food, water and energy. It is all about how do we we Harness Energy and leverage the opportunities available to us. Technology clearly at the heart of the future trends you just highlighted that is fairly it is a truth we all can accept now. It is harder to accept hype from reality when it comes to the Technology Trends there. How do you separate the hype from reality and determine which are the ones that will prevail sure. I think it is having seen the environment for a long time is incredibly helpful i started looking at the futures from the boom. A lot of the stories and trends there still valid today. You dont want to invest in businesses which operate in areas which i think are very highly kmod tiesed you take Something Like alternative meet would be an interesting example, you take cannabis these are future trends, people would be excited about it is very hard to identify today. Technology is incredibly proud we want to see businesses establish themselves before we invest in them none of them seem to be particular Technology Companies per se youve chosen one of the largest producers of farmed salmon in the world can you walk us through in light of the trends and why you are honing in on those specific stocks . It speaks to the point of trying to separate hype of reality and investing in the less fashionable business particularly given valuation and what both of those have in common the idea that you have growing demand and constrained supply. You are going to have about 2. 5 billion more people to feed within the next 70 years salmon licenses are awarded only by regulation. There is only a finite amount of salmon that can be farmed. The case for eating salmon relative to pork or beef is much better it uses less water and less Carbon Footprint relatively speaking, we arer undereating salmon compared to other protein sources. The owner of what i call big boxes, warehouses globally you think the world is changing and going to the Shopping Habits and our expectations of shopping are changing particularly and highly urbanized city centers in the bay area and san francisco, new jersey, new york area. You need Strategic Sites it is not just a warehouse but you need space for the trucks. There is a shortage of supply of that that gives the business incredibly strong pricing power. Lets talk auto this is a sector undergoing huge transformation one of the Big Questions is whether the pioneers are Going Forward or adapt at the question those being the ones to lead the charge i think there is a general confusion in a lot of experts and investor minds two trends are occurring one is the move to the automated cars automation is really being driven by regulation more than anything else. Ele elect if i indication is more of a trend. Again, how do you separate hype from reality and addressing kmodization it is a crowded market they are established businesses. We try to take a step back our favorite way of getting expose your from the auto sector, it is not a name i was specifically planning to come on and talk about is a dutch business called tom tom. They effectively have one of the largingest mapping databases in the world. For any car to get from a to b either in elect world or autonomous world, you need a map, a brain, they are the only independent player out there you have position in that stock . We have a position in that stock in our fund. Understood. Thank you for joining us fund manager of future trends. Also coming up, tech giants take a gamble of unveiling their latest gadgets at the ces. What can we expect from the event in las vegas we get a view from the ground after e eathbrk. Ore they need i. With esri location technology, you can see what others cant. Of course id love to take an informal poll. I used to be a little cranky. Dealing with our finances really haunted me. Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great hey you got the burnt marshmallow out delivery man he slimed me. janine tissue . vo get set up right with a live bookkeeper with intuit quickbooks. The easy way to a happier business. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to the show French Economy minister has agreed on a compromise of the digital tax in 15 days saying he will meet mnuchin in davos. Joined by the trade commissioner who described the digital tax as a major source of contention with the United States elon musk is cashing in on china. In shanghaito mark the first delivery of chinese made tesla vehicles it will make future models in addition to the model 3 and model y. The announcement comes as market cap capped 80 billion for the first time within the last year, tesla was facing huge skepticism from investors around the future of their Business Model now it feels as though things have totally turned around for the carmaker id say, there is a bit of caution around the carmaker. Certainly a lot more optimism. You saw a profit turn in the Third Quarter and recently announced Fourth Quarter delivery estimates that has contributed to a bit more of a top view and excitement around what is happening in china let me recap what elon musk was saying about an hour ago he said that the company will continue to make significant investment in china. They will continue to increase that investment and announce that model y will begin production in the shanghai factory as well. One interesting announcement he did make was that he was hoping to open a design and Engineering Center in china with the view that one day soon, tesla would be able to make a chinadesigned car for the global market. So clearly elon musk talking up the Chinese Market and teslas future there it is a credible part of the story Going Forward. Teslas commitment does come at an interesting time here in china. When they announced that factory, you saw electric vehicle sales skyrocketing here in china now, the sales fell quite significantly. That is because this is a market propped up by government incentive and subsidies. Those have become scaled back now. That has hurt the market for now. Tesla really excited about the opportunity it is given the market and the fact that it is still a number of consumers willing to buy electric cars a few challenges remain and tesla is very expensive versus the competition. A lot of excitement around this story. If you look at the premarket action it is up over 1 given the excitement not just around the improvement but also this china story as well back to you. Thank you for keeping us up to date. Hyundai aims to take flight with uber. Looking at flying taxis able to carry up to four passengers with a pilot but eventually will be fully autonomous traveling at speeds up to 60 miles an hour. Making its debut at the consumer electronic shows in las vegas. The goal is to launch in 2020. Ces sees the likes of google, microsoft and amazon this year, signs that the trade tensions in beijing are having an impact with few exhibiters from china getting to our analyst who joins us now thank you for joining us so early. Let me ask you as well about one specific surprise this year that i think a lot of people are watching out for apple have decided to show up. The first time in more than 20 years. They will be discussing data privacy. How much of a headline grabber is that going to be and about people siege apple at this ces event . Thank you for having me on the show it is one of the big headlines when you have one of the big players at one of the biggest trade show of course, related to that is information and sharing of data. One of those big areas that is placing a lot of trust and data you are sharing with the provider when you hear a lot of these products being powered by ai, Artificial Intelligence and data you are having to share, you are making sure that is used in a sensible manner. One of those things is around 8 k tvs. They will still prove to be expensive. That is one of the key things around the products emerging at the show it sets the tone for the year ahead. Much of the tech is shown to be commercially viable let alone making it into peoples homes. Even though chinas presence will be smaller than in previous years, china still represents the largest nonu. S. Delegation here whachlt do you think the main goal is at the event this year for sure. There is no shortage of companies exhibiting still from china. If you look at some of the whacky products. One of the trends is around robotics you have products from the rouge category designed to carry plates of food to restaurant customers and some other whacky things around in terms of disposing of rubbish in a clean way. So for sure, they are going to be grabbing those headlines as well lets put this in the context of how Technology Stocks did 2019 was a stellar year for nasdaq is moral pretty high going into ces this year . They seem to be optimism and a huge return given some of these products, the amount of time it takes to become commercially viable. Some of the crazy stuff weve seen emerge. Still in prototype and the Huge Investment it could be a couple of years. Another taken into account is can people afford these. There needs to be an element of reality in bringing these companies into check thank you for your time tech media analyst from pp for sight. Before we head out, we want to take you to final look at live pictures for the funeral procession for the iranian leader Qassem Soleimani. His casket has been brought back to his home town of kerman it is reported that a stampede has taken place that has taken the lives of some people in attendance m umnat is for us today. Ijoan bercetche and im Julianna Tatelbaum. Worldwide exchange is coming up next. Looking to get your business off to a fast start in the new year . Its go time switch to comcast business and get fast internet on the nations largest gigspeed network. Plus, complete reliability with 4g lte backup. And, cloudbased security to help protect the devices on your network. Greenlight your business in 2020 with fast internet and voice for 99. 99 per month. Act now, and get 1 year free of wifi pro. Call today. Comcast business. Beyond fast. It is 5 00 at cnbc Global Headquarters here is your five at 5 00. A 200point turn around in the dow as wall street looks to put tensions in the Rearview Mirror for now. Big moves at boeing as it prepares for the 737 max shut down making a major deal with another airline on the way 80 billion and counting what tesla is doing to push their stock to alltime highs. No james bond breakout