European ally stocks flying high Departure Time for aig standing down after more than a decade at the top. China confirms the vice premier will travel to the u. S. To engage the preliminary trade deal as washington and beijing coordinate closely over the arrangements for the signing ceremony welcome to the program, President Trump says tensions between iran and the u. S. Are easing and are standing down after it launched multiple missiles against the target and reiterated the demand other world powers should abandon the nuclear deal with iran its worth looking at how and where looking at the map of the region here, of course, youve seen the location for these attacks in iraq on the iraqi bases that house american soldiers weve had conflict in syria in many parts of the country. Youve had hezbollah here in lebanon in large part by the forces in tehran in terms of the palestine process with strong links to the iranian government as well a few attacks on the saudi facility weve heard in the investigation into the attach. The movement in yemen is not responsible. Now President Trump said he would take no further military action right now but impose fresh sanctions. By removingsoleimani, we have sent a powerful message if you value your own life, you will not threaten the lives of our American People. The ults will immediately impose economic sanctions on Iranian Regime these powerful sanctions will remain until iran changes its behavior this apparent easing in the tensions has provided a back drop for stocks. We have seen the stoxx 600 open hitting the highest level ever fresh level highs for european shares the dax up about 1. 3 but gains across the board here. You can see every region trading higher the ftse up the cac higher as well you can get some data out of germany over 1 in november. That was ahead of market expectation. All together, investors seeing reasons for green on the board today. Lets take a look at sectors and the split of the gains we have a few sectors trading in negative territory early on, the negative seg tore was in the green a little more cautiousness coming through telecom and autos up 1 as well. Yesterday, the big event for global auto investors and carlos ghosn breaking out with very heated words about the Japanese Justice system and the Nissan Renault alliance. News that chinese premier will travel to washington to sign that phase one agreement we have travel and leisure around the flat line, utilities, retail and real estate at the bottom airlines have been a focal point as Many Airlines have canceled flights to the middle east lets take a look at oil first, which is the key driver for so much of the reaction weve seen into what is happening in the middle east. We are seeing brent and wti trade higher but essentially stabilize and that comes after a 5 drop in 24 hours. Tensions seem to be easing and oil reactors to that gold around 0. 6 breaking a 10day win streak that risk on trade back in the fold putting money back in and take it out and benefitted over the last few days. Lets look at the airlines. We are seeing some support for the Airline Sector this comes alongside the pull back that means less cost pressure for the airlines we have the best performer in the morning including to be air france and klm delivered some december traffic figures. Investors seem to like what they have seen on that front. Lets get back to our reporters in dubai this morning. Dan, how much are geopolitical developments in the region seeming to drive the oil price certainly a lot look at the action we have seen in the past 24 hours after the attack, we saw wti and brent spiking more than 4 a huge move to the upside. Probably the biggest weve seen from this year also not really anything weve seen in terms of the middle eastern price cattist. As President Trump stood up and worked to calm tensions in the region and choosing to go down the sanctions path rather than the military action path, we saw crude Oil Prices Falling the only reason we saw them recover is perhaps investors buying off those lows and coming to realization tensions will be soothed. At the end of the day, you are still going to have a longterm issue between iranians and americans. This is a decades old, since 1979 issue i guess they are managing their anger. Weve seen a real opportunity opening up potentially for Donald Trumps administration and the european allies to bring them to the table and talk about the successor, if you will all of that as a result of the United States taking action when it came taking out qassem soleimani. After multiple attacks on assets whether it be tankers in the gulf it was interesting that was the Decisive Action that they took at the same point, when you look at what happened next, tehran striking those two bases and calling it a win win as well the tone different saying there were american casualties the white house has denied that repeatedly an attempt to maybe allow the iranians to save some face listen to what donald trump had to say yesterday u. S. Armed forces are stronger than ever before. Our missiles are big, powerful, accurate, lethal and fast. Under construction are many hypersonic missiles. The fact that we have this great military and equipment, however, does not mean we have to use it. We do not want to use it american strength both military and economic is the best deterrent. Of course, this is a story you and i have been covering here and in beirut and in the United States. It was a fast moving and fast developing story no doubt, well continue to see developments over the next weeks to months to years when we think about the winners and losers here. Big win for President Trump. Big win for tehran theyve been under severe pressure we saw iranians out in the streets, thousands in massive protests you havent seen anything like that since really 1979 this is an opportunity for tehran to save a bit of face and open the door to get sanctions lifted exactly iranians have been able to claim this as a window me domesticall. The United States choosing not to take that military action and instead go for sanctions the question is how can you sanction the iranian economy any further . About 90 of irans economy is under heavy sanctions. What happens next . That is up in the air. Clearly, irans economy really hurting from this. The capability to push back against the United States certainly have been hit hard absolutely. Something nobody is talking about right now, impeachment that can only help this white house going to 2020. Guys, back to you. Thank you for the latest there out of dubai, hadley and dan. Back in the studio, we have ceo and founder of global strat to weigh in on the latest we heard from our colleagues that call this a victory for iran and President Trump that is how both sides are portraying it. Is it really possible this is a victory for both sides i would disagree that it is a victory for tehran this is the First Response from the west the americans had a complex since the Carter Administration after the take up of the embassy and the corporation that ensued to ever strike iran. That is the first time that west has retaliated against the war that has been going on 40 years. We were all talking about world war iii. There has been an attrition versus the u. S. , france and the uk talking about the situation where the u. S. Has decided to retaliate. He has decided to step back. What do you think is the calculus inside the administration so far. We have seen that President Trump has been extremely prudent after the u. S. Drone was taken down after the attack on saudi arabia everybody thought it would retailate but it didnt. The red line was the loss of american lives and the image of the embassy in baghdad that was a big no no for him and it pushed him to strike at iran. Why not go further given the missile attacks on u. S. Facilities inside iraqi bases . I would put to you that this was a calculated move from both sides. The americans had three hours to go away for them to avoid any loss of lives. This was a harmonized, hollywood, style attack there for the regime to save face. The big issue Going Forward for iran using its main weapon, terrorism. That is the big joker and the big question if there is an attack against American Interest in london or paris tomorrow it has been less than a week since this kicked off. It may be premature to draw conclusions. This morning on iranian tv, a Senior Commander said iran will take harsher response soon clearly there is still some division in iran in terms of what comes next. How confident can we be that this is the end of the line . For sure it is not the end of the line iran takes its time to retaliate. We were surprised to see they responded so quickly usually, they take their time. There is no really action that is not going to be taken by the regime whether you think there is division, there is no division between khamenei and the national guards. They see President Trump is extremely forceful when it comes to the loss of american lives. Both sides do not want war theyll avoid this at all costs. But a protracted Terror Campaign is in the works. European Terror Services are extremely concerned about the heightened scare and hezbollah in europe. Leaving aside the military action and look to the nuclear deal President Trump said he would like to see it replaced. Do you think the behavior of iran over the last few days after theyve heard comments, do you think that is dead in the water and cannot be revived . If you see, trump is pushing for renegotiating the deal time and again during the g 20 and the un general assembly, he asked to meet with the president and the iranians refused trump is a businessman that wants to make a deal for him, he wants to make a deal with iran still today. Thank you for joining us. Appreciate your time the ceo and founder of global strat. The airlines that crashed on wednesday, caught fire while still air born according to a record just to bring you details from the secretary of the ukraine secretary council. Theyve been looking at this and say the investigation includes experts that invest gated the shooting down of mh 370. The fragments of russian parts involved here. They want to search for debris from a Russian Missile at the site including there is a possibility there is a terrorist act involved in this incident. There are a number of unanswered questions. He filed this report late on wednesday night. Reporter in the predawn darkness, the ukrainian wreckage the question, could an iranian fired missile have brought it down the flight left tehran at 6 12 local time it disappeared from the radar at 7,900 feet this video appears to show the plane on fire shedding pieces as it streaked across the sky among the dead, 82 iranians, 62 canadians. Not leaving time for any confrontation. Authorities suggested a technical failure caused the crash rolling out a missile strike withholding judgement and telling reporters we will command this investigation is conducted. Both black boxes had been recovered but they will not go to the u. S. For review the plane was a threeyear old 737800, not a max boeing and the ntsb would normally assist in the investigation. That is highly unlikely given the recent hostilities and sanctions on iran. Boeing says, heartfeltquestion,e commercial planes allowed to fly hours after iran fired missiles. Coming up on the program, carlos ghosn breaks his silence after a mysterious break from japan. Well hear more from the man next i recently spoke to a group of students about being a scientist at 3m. I wanted them to know that innovation is not just about that one aha moment. Science is a process. It takes time, dedication. Its a journey. Were constantly asking ourselves, how can we do things better and better . what we make has to work. We strive to protect you. At 3m, were in pursuit of solutions that make peoples lives better. I reand wondering if athat was the last time i was going to do that thing. I thought. Im not letting anything take me away from my family, that loves me and needs me, without a fight. When i came to Cancer Treatment centers of america, it felt. So different from any other hospital that wed ever been to. Whether it be spiritual, physical, emotional. They take it all into consideration, in healing you. Infusion, imaging, everything is here. I dont have to go anywhere else. They create a treatment plan thats for you. They cared about my victories. They care about me as a person beyond just being a cancer patient. Theyre my second family. 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 street signs. Marks and spencer has seen the worst day. Clothing and revenues fell almost 4 . M s faced a challenging environment in the buildup to christmas. Tesco shares are in the green after the group said it performed well despite the subdued christmas periods. It rose 0. 1 and missed forecast during the festive season. And shares of sodexo slightly lower. The french food group hoped its partnership with the Rugby World Cup would help despite the disappointing quarter, it will stick to the 2020 guidance at 4 organic growth the moment so many in the auto space were waiting for, carlos ghosn broke silence for the first time he gave a News Conference in lebanon yesterday that lasted more than two hours. During it, he denied all charges of financial misconduct. He attacked injustice in the japanese legal system and demanded what he called a fair trial. He spoke to cnbc contributor after the conference and during that conversation, ghosn claimed he was a victim of a conspiracy that involved the former nissan ceo. Look what theyve done. Look at the statements made after i was arrested look at the corporate operation, the support from the japanese government it doesnt make sense. For me, it was obvious they got what they wanted except nissan today is run to the ground the only thing they didnt think about is could they run the company. The answer is no the growth has disappeared the market cap of nissan went down by over 10 million everything went down if people were to read all the press reports. Payments to imman, the situation with versailles. Whether it was poor bookkeeping, the question of commingling of your personal finances and the corporation. Nissan has built a very good case with the other people that are specialists with this kiechbd of things. They built an image. They attacked through media. They are doing all of these things while i was in prison, i couldnt defend myself i couldnt talk. I wanted to make a press conference in tokyo. They came back with new charges immediately. When the new prosecutor was named about two months ago the president was complaining why wouldnt you let him talk to the press. No, no he can talk to the press in the meantime, we are free to bring new charges, which is a thinly veiled threat if you open your mouth, you are going to go back i want an end to all of this i want to be able to speak where the attack and defense have the same rights. And it is balance. I was in a system where it is not about the truth. Its about winning, confession i think you are guilty, so im going to prove you are guilty. I dont care everything else, im going to reject it. Japans Justice Minister hit back and insisted he should return to tokyo to face trial. Translator at the press Conference Held by carlos ghosn, he presented various criticisms. Most abstract. Baseless and they were carried live around the world. We fear this could spread the wrong idea about japan around the world. E brexit, it might be an Impossible Mission as the European Commission president seems less than optimistic about the llfu meeting at the deadline 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 willem marx here are the headlines the stoxx 600 hits an alltime high after President Trump suggests iran is standing dwo down and indicates he will take no further military action against tehran marks and spencer shares on marks for the worse day in two years. A tough Christmas Trading period European Airline stocks are flying high as crude prices stabilize. It is Departure Time for aig ceo who stands down after more than a decade at the top. China confirms vis premier liu he will head to washington as they closely coordinate on arrangements for a signing ceremony weve got some fresh numbers coming through for mercedes. Their latest Sales Numbers for the period the mercedes brand remains the top brand in 2019. Sales were down 0. 3 year on year in december in terms of the 2019 as a whole. The sales were up 1. 3 to 2. 3 million vehicles so those are the latest numbers from mercedes. They achieve unit sales for the ninth Consecutive Year this is a long run and a little more detail in terms today and all three of their markets remain in china, germany and the u. S. They were able to confirm for the u. S. The largest market, China Remains the high drive err with a 6. 2 increase and a new record year china has been a difficult market for many, many brands there has been a slow down in the auto space china, mercedesbenz with high growth looking at european markets in the green as tensions appear to ease in the middle east and the conflict between the u. S. And iran the dax is the clear outperformer up about 1. 3 this comes as weve seen the oil price retreat now nearly 5 . So a calm coming over markets, as it seems according to President Trump, that iran is standing down for now. Looking at currency space, the euro trading slightly higher against the dollar around 1. 11 the bound down 14 basis points to 1. 31. Yesterday, a strong day gaining 0. 3 overall looking at u. S. Futures where we saw major turn around yesterday morning. Futures indicating a sharply lower trading session and throughout the day we saw stocks trading higher and end in positive territory with tech leading all sectors. Looking at u. S. Futures, we are in for another positive trading session. The s p, dow and others indicating a higher open looking back now where the eu chief said the time frame to come to an agreement over the post brexit is posing a huge challenge. It would take more than 11 months to work out a deal. The period set to end december 31 this year his boss, European Commission president said the changes that britain could reach a full trade deal by that date are, quote, basically impossible our colleague knows all about impossibility in brussels. At a crowded event in brussels was this a warning shot from the Commission President as far as you could see . In a way, yes she clearly laid out the position she said that the uk wants a full comprehensive agreement with the eu and that would take the study. That is the argument from the europeans. The head of the Commission Said yesterday, they are ready and wants to negotiate a deal with the eu based on zero tariffs that will be a challenging task. Lets take a listen. With every choice comes a consequence. With every decision comes a trade off. Without the Free Movement of people, you cannot have the Free Movement of capital, goods and Services Without a level Playing Field on environment, labor, taxation and stay date, you cannot have the highest quality access to the Worlds LargestSingle Market. The more divergence there is, the more distance the partnership will be. Without an extension of the transition period beyond 2020, you cannot expect to agree on every single aspect of our new partnership. You will have to priorities. As we approach the next session of brexit. She made it clear if they want to deverge, it would be hard to access the Single Market and take longer to negotiate that second agreement lets take a listen. European Union Negotiations are clear. We will work to uphold the integrity of the union, Single Market and its Customs Union there can be no compromise on that but we are ready to design a new partnership with zero tariffs, zero quotas, zero dumping. A partnership that goes well beyond trade and it is unprecedented in scope, everything from Climate Action to data protection, fisheries, energy, transport, space, Financial Services and to security we are ready to workday and night to get as much done within the time frame we have none of this means that it will be easy. But we start this negotiation from a position of certainty, good will, shared interests an purpose. From what we have heard from the european side over the last 24 hours, it seems like we will be witnessing a lot of tough discussions between both sides, london and brussels. You will be an intense second face we are approaching. Lets remind our viewers according for the eu and for the uk to leave the eu, that means building 600 International Agreements thank you so much one of the men leading those would be the uk leader barkley you can see him taking questions there. Almost his opponents raising questions to the uk brexit secretary inside the house of commons taking questions on the state of negotiations with the eu the world bank has cut Global Growth forecast for 2019 and 2020 the latest report states that the downgrade is due to slower than expected recovery despite a reduction of trade tensions between the u. S. And china. The bank also said it is too early for any escalating conflict between the u. S. And iran Christine Lagarde has been speaking as well she has she believes the most significant fall out from brexit has not been felt. She argued that the finalization of the uks departure from the eu should be a priority she said it should not be underestimated how difficult it will be to reach an agreement and stressed that in 2020, the eu will have hart work to do to compensate for the loss of such a wealthy powerful military state. On the data front, european economy showed growth growing 1. 1 the rise offset by a drop in exports that fell by 2. 3 . The senior economist from ing joins us down the line thank you for tuning in. Lets pick up with the latest data out of germany and we can widen out to broader europe. Some conversation coming through. Government an output better than expected you are not concerned about the shortterm prospects it is the short term that gives you worry. Absolutely. It is a relief that production bounced back a little from the october decline. This recession is likely to linger on. Germany would need a massive 6 increase in december to actually see quarter on quarter growth. That puts things into perspective as to where we are currently standing we are seeing green shoots those things will increasing it remains the case that germany has structural problems. We are seeing relief and working towards the signing of the phase one deal between the u. S. And china is favorable for germany and other big trading nations. You have to keep in mind that is not the only thing germany is struggling with. The car sector is just getting back up on their feet after a dismall year and hopefully 2020 will be better that is something we should forget as we look to 2020. The upside is not fantastic. We are not looking for a v shape recovery for germany you mention the structural changes and challenges germany is facing. Looking across europe, the three main policy components monetary, fiscal and structural reforms. How much appetite do you think there will be in 2020 to move forward and what will the policy mix look like this year . The policy mix will be interesting. From a monetary perspective, we are not expecting all that much. We had a spectacular french from Christine Lagarde. We are not expecting all that much to happen in 2020 we are looking at strategic. For that policy to occur the modest improvements in the fiscal stance will likely push on and help growth recover from the some what lack luster numbers. This is not the package some of these companies are hoping for the packages rumored over the past months. If there is a structural reform, there the april tide remains weak we can see some amount of france as he continues to push through the agenda we are not expecting that much to happen over the year. Talking at the moment im reading comments here talking about the idea that the bank of england should resist calls for policies not related to Monetary Policy in terms of the environment. I want to ask you, do you think that based on the recent data, would you say the transmission of the policy right now is having the affect that the ecb intended thats a very good question the question what did the ecb instead. We saw them start back up in september. A lot of that was signaling to markets that the ecb was not played out the expectations in the market were falling quite significantly and concerns anchoring about inflation around 2 . If this is the ecb, 20 billion a month package they are pushing through having significant affect on inflation. That is still quite modest well leave it there. Thank you to the senior economist for the eurozone weve been watching some action in cable what are you seeing there . The pound has sold off rather dramatically down now 0. 4 to 1. 3041 quite a steep drop you mention there the governor has been speaking. One line that sticks out said the rebound forecast is not assured. He said raising the inflation target works better in theory than in practice ear early indicators prices a limited number since the election suggests a reduction in brexit related impact. So some comments there from the governor and investors in the pound are selling it they are selling cable down half a percentage point well be looking for more comments there carney saying the boe should resist calls not related to monetary policies related to the environment. Well keep you up to date on the latest coming up, the inflation dilemma. Is the pboc worried . We have analysis after the break. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. 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 64. 90 per month. Switch now and get a 100 prepaid card when you add comcast business securityedge. Call today. Comcast business. Beyond fast. Welcome back chinas consumer inflation has steadied due to signs of easing food prices. The same as november and slightly lower than anticipated. Food prices in september grew 17. 4 compared to 19. 1 in november pork prices rose 97 after more than doubling in november as the country continues to grapple with an outbreak of african swine fever. Confirmed that chinas vice premier liu he will travel to the u. S. The two sides remain in close communication regarding particular details for the signing. A revolutionary guard founder has contradicted President Trumps statements that the tensions are easing comes off President Trump said iran was, quote, standing down we have this report. Reporter the u. S. And iran stood on the brink of war after iran launched shortranged missiles at two iraqi bases housing american troops. Revenge, they said, for the killing of a top general claiming this was the moment the missiles were fired. Iran threatened to unleash war across the middle east if the u. S. Dare to strike back the stakes were high when President Trump approached the podium to outline the american response i am pleased to inform you the American People should be extremely grateful and happy, no americans were harmed in last nights attack by the Iranian Regime we suffered no casualties. All of our soldiers were safe. Only minimal damage was sustained at our military bases. The president revealing he would only retaliate with sanctions. It was an offramp p. No u. S. Counter strike for now no conventional war today. Iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world iran has been consumed by a dangerous mix of humiliation and rage that the u. S. Picked off the second most powerful official with a drone immediately claiming victory making false claims that its attacks killed dozens of american troops, destroyed equipment and crushed american bones. Saying he dealt america, the great satan, a slap in the face. The reality was far more modest. Five missiles hit the base no casualties, no crushed bones. I would call it a slap on the wrist. It was really pretty minimal that was clearly the intend was not to kill americans. Tonight, defense secretary and chairman are crediting an Early Warning system to get troops to time to get to bunkers before missiles hit. Meanwhile, we are joined by the Vice President for defense from the cato institute. Thank you forgetting up early to talk to us has the trump policy of maximum pressure on iran caused any deturns do you think no, i dont i think it has been a complete failure. Thats how we got to the situation even before the killing of qassem soleimani, which i think was a horrible mistake. Before that, the campaign imposing harsh sanctions on the iranian people, even though iran was complying with the nuclear deal and even though all the other parties with that deal agreed with that assessment. Government officials told President Trump that iran was complying. He was determined to pull out of that deal and go in a different direction. Everything that has happened with the relations since the president left and imposed these maximum pressure sanctions everything since then has failed the president said hes not going to take any further military action for now. We have heard from some members of the iranian government. This morning, one of the News Agencies heard there would behar shall harsher actions soon should we expect further harassment, further retaliation down the road . No. I am concerned i think that qassem soleimani, however we in the west see him, in iran and in the region, he was seen as a hero killing him while he was visiting in iraq has turned him into being a marter. It is so important for the United States and the other parties to the jcpoa to try to restore diplomacy with senior officials and to try to build on this pause which i think is the best way to describe what has happened in the last 24 hours. We cant rule out the possibility of individual smallscale attacks by individuals or others in the region briefly, 2020 is an election year, to what extent is this a Campaign Tactic for President Trump . If it is, i think it is a horrible one its quite clear the American People are tired of the wars in the middle east and adding another enormous conflict is not in President Trumps political interest and not in americas strategic interest if thats what he had in mind, i think it would certainly backfire and perhaps part of the reason why he decided to not escalate further thank you for your time this morning. The Vice President for policy studies at the cato institute. Thank you. Thats it for this show. Worldwide exchange is 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 64. 90 per month. Switch now and get a 100 prepaid card when you add comcast business securityedge. Call today. Comcast business. Beyond fast. It is 5 00 here is your five at 5 00. Stocks rising to new records as middle east tensions cool down for now. Can nothing keep this market down deal or no deal . China speaking out over the phase one trade agreement. We are live with the details there. Speaking of speaking out what ousted nissan ceo told cnbc after more than 400 days of silence. Crude oi