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Sealing the dream deal. The merger is now on track. And associates on bond yields continue to creep higher. As finance minister arrives in london as part of the tour across europe to drum up the full support for a new debt agreement. And chinas official pmi unexpectedly contracts for other two years in january. Weighing on asian markets and the price of oil. And we begin pmi data over the past couple of hours. We got out of the eurozone pmi data for the month of december. 50. 6. January manufacturing forecasted at 51. 0. January pmi at 51. A look at Economic Growth. A good gauge, of course, of Economic Growth across the eurozone. German pmi which accounts for fifth of the economy come at 50. 9. The number out of december did disappoint according to surveys for purchasing managers. The eurozone economy picking up in january. As you can see the euro strengthening against the u. S. Dollar at 113. 28. Final manufacturing pmi coming in at a sixmonth high. Well have that has been predicated on the Lower Oil Prices. Many manufacturers are hiring more. Which is signal. Were starting to see the effect. On that note were keeping a close eye on earnings. Julius baer shares are trieding higher. The swiss bank introduced a Cost Cutting Program. Caroline is inzurich. Good morning. Shares are outperforming on the sm,000 morning. There are high advisement. 7. 7 this morning. On a couple of factors. Let me kick off with earnings. It wasnt so surprising. It wasnt the big surprise coming from julius baer this morning. The big surprise it was the dividend number. We got a one franc dividend and its much higher than many people expected. Its an increased 67 percent. We have the Cost Cutting Program 100 million swiss francs. As a district result of the shocked move by the smb. Theyre cutting 200 jobs and half will be affected through 2015. Is it going to be enough to counter the strength of the swiss franc . I put that to the ceo of julius baer. Take a listen. Decided to react swiftly. This is the package we believe is necessary for the time being. We would like to get the organization back to business entirely. So yes. You wouldnt rule out further cost cut and job cuts . I think its part of the daytoday discipline. We can never rule out more adjustments on both sides. For the time being thats what we think is necessary. Tell me how difficult 2015 is going to be for you given the shocked move by. We have not only got the transactional effect but the effect of the lower Interest Rates hitting margins. The knock on confidence. How much visibility do you have . I think the navigating site but thats the environment, francly, we like and thrive in at julius baer. I think we see it as a challenging environment for everyone and relative terms it should be beneficial for us. I see plenty of opportunities later on this year for clients. Increased volatility should allow them to make money. You speak about volatility. Im looking at the second half of last year. We saw there was a slow down in client confidence. A little bit of a dip in margins. I dont buy that from you that heightened volatility will lead to more confidence and trading. I think if you look at the second half, youll see the Third Quarter your observation is true but on the First Quarter volatility picked up. Margins and volumes picked up and the momentum carried on into 2015. I think were on the uptrend. You said now that you see plenty of opportunities for 2015. Is that opportunities in the m a because the shocked move theres a lot of pressure on the industry. Are you looking to snap up other player that are looking to snap up more than you. Or do you think theyre too pricey . I think if you look at the cost of the industry here, youll have several Smaller Banks in excess of 80 even 90 that dont have to that a bigger group like ours would have. Probably theyre looking at this year in excess of 100 . There will be plenty of opportunities this year, im sure. Are you looking at no. Were not. Were on the outside of the fence for once. That was the ceo of julius baer talking about opportunity maybe on the m a front to diversify the cost and revenue base. The shares at julius baer are among the top performers. 6. 5 . Its only a little bit of a bounce back compared to the losses weve seen since the smb move they have fallen a whopping 18 . Theyre among the worst performers here definitely on the banking side. Many analysts believe that julius baer is one of the worst affected when it comes to the mismatch between swiss franc revenues and swiss franc costs. The share price move as a result of the smp was overdone. Up better than 6 . Lets talk about the swis franc. It has fallen to the weakest level since january 15th amid speculation that the Swiss National bank could be adopting a new currency peg. The central bank is unofficially targeting a rate of 105 to 110 citing sources close to the bank the bank would lose up to 10 million francs. The bank has yet to confirm or deny the story. Were seeing the move in the chart as you see there in the currency. Joining us now to discuss more head of strategy at ing. What could it mean for markets . Well, if it is any credible if it is credible it might create somewhat more stability in markets. That is the key question. After making a announcement. Will they be able to have an increase in credibility and able to hold on to the new supposed peg of 105, 110 i think is highly doubtful. If really committed they could, of course. Weakening your currency is they are showing theyre committed. I have big doubts. Okay. If there is not a new peg. What does it mean for markets Going Forward . You seem to be skeptical . I dont think we have to exaggerate. All the news is out now. The Swiss Central Bank isnt the biggest or most Important Bank in the world. There are doubts about their future direction but the markets are mainly concerned about what the fed will be doing later this year. And whether or not indeed whatever it takes from the ecb which will signalled so loudly last week will continue to be in the marketplace. Thats more important than what the Swiss National bank will be doing Going Forward. Switch to cousin to the eurozone pmi data which indicated a modest growth in the month of january. Eurozone Unemployment Rate remains near record highs 11. 5 with a quarter of people out of work in some European Countries map is your reaction . I think you have to distinguish the state of the problem which are significant and the state of the imbalances in the eurozone economy and the direction of change. The level of the Unemployment Rate, all though it is coming down modestly, is still way too high. The direction of change if you look at the pmi even the broader indicator of jones consumer confidence. If you look at the latest numbers in germany. All are pointing to an improvement. All in all, i think were seeing a clear improvement in the europe. And remember, of course were getting additional head tail winds from the Falling Oil Prices and the weakening of the currency. I think the direction of change is positive here. But the problems are still significant. Valentine head of strategy at in ing. Stick with us. Were going to discuss more. But first, lets get a market update. And here we go. Take a look at the map behind me. As you can see on the first trading day of the new month, were higher but just ever so slightly. Take a look at the 600 Index Trading higher by a fraction of a point. Keep in mind the european stock index has been moving higher over the past one month. It is strading at sevenyear high. In fact interestingly enough if you take a look at european stocks versus u. S. Stocks. European stocks are outperforming about 7 over the past one month. Lets dive into todays trade. How are the european markets trading . Were looking at stocks off the high. Eurozone posting modest growth in january. A lot of focus on the german pmi data which came in at 50. 9. Cac 40 up 26 points. The ftse holding up in the green by 63 points. Well be getting that pmi data in an hour. Trading higher by around 24 points. Les take a look at points. The risk move can be seen across the bond market. Youre seeing investors gravitating as investors try to take a better gauge what has been happening around the world in terms of renegotiation with european policy makers. The disappointing gdp print out of the u. S. And the weaker than expected data out of china well be discussing in a second. Take a look at the bond markets and 10year german yield now yielding yielding. 3 . The 10 year has been trading at 1. 6 . Thats the yield on the u. S. 10 year. The risk averse move weighed on the u. S. Dollar on friday dropping to a twoweek low. Weve seen a move in the which has been selling off this morning given the weaker than expected pmi data out of china. Oil continues to be a point for investors. Oil spiked on friday. Some traders debating about whether or not the bottom is finally in. It doesnt seem to be the case given weak global data. The lackluster gdp print of 6. 2 . And the china data and that is weighing on the oil trade. The wti crude down about 2. 5 . Brent crude trading at 51. 75 down about 2. 3 s. Asia has been one of the reasons weve seen Lower Oil Prices. Lets get out live to singapore. Thank you so much. As you can see behind me were looking at youre talking about the china pmi. Official are showing manufacturing pmi at 48. 8. Both of these twin reports telling us the same story. Chinas factory sies jobs being shared for 15 straight months. Now index coming through at 30month low. Youre looking at shanghai comp. You also had a weaker dollar factor those had to contend with. Despite, of course corporate results which look pretty good from the outset. Just keep in mind when it comes to china we have citi adding their voice. Penaling ing pencilling in a rate cut. A High Frequency data could be delayed for january, february to around march. And that could mean some aggressive policy action could be delayed to around march. The next risk event in asia. The Australian Central Bank decision. You can see the outperformance coming through on equity on that trend. Economists largely degree with the rate cut. We could see a surprise coming through from yet another central bank if stephens decides to cut Interest Rates to a record low tomorrow. Thats on the cards in terms what were watching. Back to you guys in london. Thank you so much. Coming up on worldwide exchange. Number four for brady and belichick. Were live in glendale arizona to analyze the big super bowl game. And to see how katy perry and the commercials went down with the fans. And earnings exxonmobil becomes the latest to report earnings. What to watch out for in the report. Plus Fashion Designer tom ford talks to us exclusively about how the ukraine prices is impacting his russian business and why hes bullish on emerging markets. Thats coming up. Welcome back. Greece continuing to be a big story in europe. Take a look at the greek bond market. We have been seeing a massive move as investors seek some safety but recently been moving out of the greek bond market following the syrizas party win. The focus has been on the bailout negotiations. Bond market as weve been talking about has been reacting. Record yields on the fiveyear german yield. The 10year 11. 2 . This is weighing on investors sentiment. You can see it playing out in the bond and the equity market. Greeks finance minister said the nation will not accept any new loans from the international partner. Speaking on a trip to paris the minister said athens must wean itself off the debt. Translator as we take another batch of loans no. Its not that we dont need the money. Were desperate because of certain commitments and liabilities that we have. But my message to our European Partners is for the last five years, greece has been has beening has been living for the next. We have resembled drug addicts craving the next dose. What this government is all about is ending the addiction. In an early boost for the greek government are likely to be tough negotiations on his desk. France is open to using greek debt but not cancelling it. Translator we will have dialogue with greece but in institutions that is the only Legal Framework with which we can work regarding the debt. Ive said so in so many words and my greek counter part says better than anything else. Anything in greeks debt will be welcome because 175 of gdp. But there is no question of its a busy week for greeces finance minister. It continues today. Joining us from there. Any sign of him . The meeting is not happening until 11 00 a. M. They will chat accordingly. Essentially hes in london to meet investors. Theres a series of Bank Meetings going on with institutional investors. Hes on a tour not just with policy makers but people investing in greece trying to calm the nerves. Since syriza took control, you saw the flight of capital from greece. 7 percent. You saw greek banking stocks plummet 30 . Theres a recovery this morning. It will be music to his ears this afternoon. Hell be wanting to apiece people. Now as you heard from the comments before. Hes a hugely controversial character. Very very kind of left wing ideal. Academic. Someone who described the Bailout Program as essentially water boarding. What hes saying is this plan doesnt work. And they want to reverse in austerity. They want to write down in the greek debt. They want the third thing, a reversal in the structure reforms. A lot of that is obviously opposed by germany. But the comments from the french finance minister will go a long way to reassuring the market that this plan to suddenly renegotiate the terms of the bailout will be achievable in the next couple of weeks. Thats what the greek finance minister will be trying to persuade markets today. It will be interesting to watch. It might seem like an uncomfortable meeting over the weekend between the two. Well be watching closely. Thank you for that. As the negotiations continue lets get more market perspective on how to position yourself ahead of a potential solution coming together. Valentine head of strategy at ing is still with us. Valentine, greeces bailout of 172 billion euros with, s witheuro that expires at the end of the month. The risk of a default should be a big concern, right . Obviously. But then we have been left with the greek defaults for some years now. We have gone through summits and intense negotiations procedures. Again, were heading into one. Clearly, this one is different in nature in terms of the language that is used. But at the same time we know people are positions themselves for a certain negotiation opening of the negotiations. And were starting to see sort of something of shape of a possible deal. Its early days. After the first knee jerk reactions last week maybe this week can be a little bit better. We need to realize this is human business, and the outcome which were assuming to be the best case, might fail if emotions take the upper hand. Right. I was speaking to another analyst earlier this morning at ufj he was saying the risk for a situation we saw a year ago in cyprus was possible and growing all the more likely for greece. What do you think. Are the chances becoming higher . Are we moving away from that possibility. I think it is too early to be telling. The risk is there. It is clear that greece is coming in more aggressively in tone and direction they want to move than in recent years. At the same time we need to realize this is part of the negotiation game. And they are taking a bit of a different approach than what weve seen so far from them. In the end, has been expressed clearly over the weekend by the greeks themselves they are committed to staying in the eurozone. They are committed to paying back the loans to the ecb and the imf, and clearly, also acknowledged even earlier today by the greek finance minister they are looking for the ecb to provide additional equities to the next weeks. All in all, i think there is an underlying tone that is seeking some kind of a more pragmatic deal. In the meantime theres talk about greece forming up to russia especially it leaves the eurozone. What will the political consequences be if greece in fact, does wampl up to russia. Given it would be in the e. U. Which means greece does support the western sanctions in place well you know, this is allic very speculative. First of all you have to wonder whether or not russia has a lot to offer in terms of finances to greece. Of course, that situation is very different from even a year ago in terms of russia being able to offer, you know, substantial Financial Support to other countries. Secondly, this is really your risk scenario. For now i think were a long way off the set. Greece will try to stay within the eurozone. If it happens well have a significant problem. There is no doubt. And it will create a lot of volatility in the markets. I have absolutely no doubt about it. But i think as i said it is the risk. It is not a base case at this point. In the meantime do you think greece will weigh on the bullish sent around the european equities. So far outperforming the u. S. Markets. Do you think it will move higher despite the uncertainty around greece . Obviously thats one of the other interesting things so far is that the disagree of contagion into other markets would certainly into european equities as a whole has been far less than during previous periods of tense negotiations between greece. Maybe here it could be the ecb is playing an important role. Of course the announcement of the ecb protects to some extent the degree which contagion can take place. I think europe will continue to do well and will continue to outperform the u. S. Equity market. Because it has a lot of tail winds related to the currency oil prices and earnings momentum in europe being significantly better. It also has qe. Well see if that kicks in. Thank you very much for your time. Well moving on in spain we are going to go a greg and ill tell you up what is after as beijing. Are there down sides to deappreciation . Well discuss after the break. And welcome back. Lets get you your headlines. Share . Julius baer jumping to the top. Also unveiling a costcutting program to counter the rise of the swiss franc. Said would react swiftly. This is the package we believe is necessary for the time being. We would like to get the organization back up to business. Saling the deal and wholesome asset cementing the position in emerging markets. Shares in all Companies Rise in the swiss and frerj firm say their merger is now on track. Lets talk about greece. Greek bond yields continue to creep higher. As the finance minister arrives in london as a part of a whistle stop tour to drum up support for a new debt agreement. And chinas official pmi unexpectedly con contracts for over two years in january. Weighing on asia markets and the price of oil. We just got a read on ukpmi. British manufacturing grow slightly faster in january. Uk manufacturing pmi 53 versus 52. 7 in december. The expectations was 532. 6. Sterling trading at 115 against the u. S. s dollar. Figures suggest that manufacturing is rising at the quarterly pace around. 2 . Only a slight improvement on the. 1 growth seen in the last months of 2014. Its coming in after eurozone factory orders position a modest growth. Lets take a look at european markets and how theyre trading now. Focus has been on the german pmi number which came in slightly above expectations. Given the manufacturing makes up a fifth of the german economy, the fact it came in higher than expected reaffirms some bullish sentiment around german equities which gained 9 in the month of january. The outperformer when looking at the market. Xetra tax trading higher. Youre see inging you saw the u. S. Gdp came in below expectations. But some of the manufacturing helping to risk sentiment a little bit. Remember, youre competing with the chinese twin pmi numbers which were disappointing. Showing contraction in the manufacturing sectors. This is how were looking in the fixed space in terms of greek bonds. It has been a rollercoaster since the new leadership took power in greece. As the new Prime Minister and finance minister toured the region to talk about negotiations with the ecb. As i was mentioning Chinese Markets ended the session lower. Factory activity shrank for the second straight month in january. The Market Survey final pmi reading of 49. 7 was initially lower than the reading of 49. 8. It comes on the next day of chinas official pmi showed contraction for the first time in over two years. That was yesterday. The data weighing on the price of crude. A senior economist at lom bard research. After the disappointing numbers out of china. Youre hearing more calls for more aggressive policy easing. We had a triple archive. We had fine tuning. Weve had the secret stealth stimulus. Nothing seems to be working. How is china going to lift growth. Most importantly for employment. Thats what they care most about. I guess the pmi numbers reinstate the precarious position is the chinese economy is in. Its overleveraged. It lost huge amount of competitiveness. It needs to reduce the debt and move toward a more consumption lead economy. At the same time it needs to regain competitiveness. Its a tough task to say the least. Positively, the chinese authorities have sort of stayed away from to the extend we saw the Global Financial crisis. Thats a good thing. China cannot afford to pump the economy. Weve seen the consequences of that. What can the chinese authorities do . Well, for starters it can let Market Forces determine the course of its economy. Specifically the Interest Rate. Were also talking about the currency and that also just let the Foreign Exchange markets open up. Move toward a more capital account. A greater flexibility of the currency. Youre talking about reforms . Right. Its the big push to implement the reforms at the cost of implement growth. At the same time they see the danger of doing that. Youll have unemployment rise in china. Thats one of the most worrying points. There was no avoiding the consequences of the chinese economy put itself through for a long period of time. I mean, in no way are we going to see the double digit growth rates that china experienced in the last decade or so. Its more about accepting the new normal so to speak, and in a way fine tune the move toward a new normal rather than artificially supporting the economy. It need to embrace the fact it can no longer keep the way it has. I hope investors our audience can appreciate how fascinating the moment of time is. How Central Banks are weakening their currency to spur growth. Is that a responsible act among the central bank . Its not just china. The same is happening in europe and japan as well. Were in a deflation their world, so to speak. Global demand is quite insufficient. When economies find it difficult to stimulate actual growth actual domestic demand. Theyre trying to undercut competitors. Thats what the currency was, so to speak. The dollar continues to strengthen which weighs not only dmod i dids but other Global Markets. Absolutely right. In the so called deflation we see the u. S. Economy as the only game in town. That is reflecting in a strong dollar. Which might start it does have an impact on commodities, which to be honest its not really its a net positive for the world overall. I mean, obvious its negative for net commodity exposures. Thats a small chance of the global economy. Its a nice tail wind of sorts. A stronger dollar impacts. It has to some extend the multinationals in america that sell their goods oversea because it makes them less competitive. The question is if that will continue. Lackluster gdp print on friday. Nothing to get excited about. We see the strong dollar as a threat to the u. S. Economy. Thats a likely to be reflected at least until the end of the year. Now Lower Oil Prices have a negative impact in the short term which were seeing reflected in the gdp numbers, but a few quarters down the line it will have a positive impact on the u. S. Economy through consumer spending. Right. As you sigh the divergent monetary policies. Who is next . We have the meeting tomorrow. Who else is on the table do you think could ease the policies . Well, i mean, apart from the fact that u. S. Have not really moved higher as expect eded. It has a deflation impact on markets and Lower Oil Prices have impacted that to a great extend. As you said india already moved and might cut Interest Rates further tomorrow. We also see potential Interest Rate cuts in turkey. Because its highly dependent on oil prices. Inflation is already coming off. We might see impact we might see reduction in malaysia and thailand. Thank you very much for that. Diverging monetary policies around the world. Japan likely returned to growth in the quarter of october through december. This according to private Sector Research. We have the story live from tokyo. Thank you. The release of official october to december gdp is still two weeks away. Private Sector Research substitutes have already revealed their estimates. Among the ten research substitutes the average real gdp came to a 4 growth. It marks the first growth in three quarters. Private consumption accounts for 60 of japans gthddp. Gdp growth for the april to june contracted by 7 and july to september it was down by 1. 9 . Meaning the technical definition of a recession. Many say japan is on an expansion trajectory. Also there has been accelerated growth in goods and services. The weakening of the yen has been especially good for u. S. Bound exports. The economys expansion seems, for the most part due to external factors such as the drop in oil prices and the weaker currency. Wage increases are yet to be seen. Thats all. Back to you. Thank you very much for that. Were seeing a lot of different pmi around the world. Its interesting you see the diverse between the eurozone and china. China was supposed to be the fast one. China is contracting and eurozone is all right. Here is coming up on the show. We see what could be on the radar for the Airline Sector as ryan air becomes the latest to reap the benefits of cheaper oil. Well discuss that next. For those that stayed up last night to watch the super bowl. As you know it did live up to the hype with the patriots and the seahawks battleing until the end trailing late in the end. Pats Quarterback Tom Brady hit julian juliand Julian Edelman for the touchdown. And Russell Wilson threw a long pass. And with the ball bouncing in the air. A lot of big moves in this game. But, of course katy perry also stealing the limelight with her big performance. Even if you werent a fan, you had to be impressed by the prop that was used. There was a dancing lion, life lifesize shark and beach ball and Live Performance from less than y missy elliot. Were seahawks fans. A tough one to swallow. You saw a robotic tiger. She sang many songs. I like it. The fact she didnt try to push her new songs. She stuck to the ones people liked. She played it safe. Would that be called playing it safe . In those situations when you want to have the appeal . . And the ads, right. A lot about the ads. Super bowl is all about the ads as you were pointing out. 30second spot cost you 4. 5 million. Companies went light on humor opting for more serious commercials that tugged on the heart stringing. The viewers weighed in. According to usa todays annual ad meter budweiser came out on top for a second straight year. What stole the show for you . It was katy perrys halftime show, the seahawks final play or the advertisements . I think we have a look at one of the budweiser advertisement. Take a look. That had a good thing going. We were confused. It was a continuation of last year. We cant see the commercials because were watching from london. Thats true. Which is one of the down sides of being over here. Thats okay. We got to watch the game and katy perry. Weve been asking you what do you think is the best part of the super bowl . It was katies performance, the advertisements, or the game . Weve been getting your tweets. Commercials were great the bud ad was good. Who doesnt like a puppy and four horses . I think they should add a bunny next time. Why not. Go all big. I tweeted and said it was the catch and someone obviously patriots fan tweeted back. You mean that call. There you go. Fierce debate online. Emails online. Tweet us. We want to get your reaction to last nights big game. Coming up as weve been talking about. Irish Building Supplies crh agreed to a 6. 5 billion euro deal. The two cement Companies Need to offload parts of their business in order to secure approval for their merger. To get more is joining us now is stephan live in paris. Good morning, girls. That was a last of the merger. As part of a deal they have to sell their businesses crh the irish Building Company agreed to pay 6. 5 billion euros to buy this significant business. They agreed on this last year. We knew it was coming at some point. They made a agreement saying they will finance the acquisition with cash. And almost a 10 equity placement. The deal phased away. The stock is trading a little bit higher. Thank you very much for that. Watching the m a action. Were looking at earnings and european airplane stocks. After the irish carrier warned that Profit Growth could be modest next year. It did raise full year guidance for 2015. Joining us now is john strictland director at jls. It seems the markets are being a little bit unfair to r ryanair. I guess the problem is next year they henled their oil cost. Their fuel cost. Theyll be paying higher prices for some time to come. Its two stories. The quarter has been strong from last year in terms of a significant profit this year. As i think caution in terms of as you said the hedging is what seems now a high level and pretty well locked in on over 90 of that. They have indicated that will bring a lower unit cost per passenger. Theyre saying some competitors were not able to and will benefit from the daytoday price much lower. Thinking about it, i cant really think have many competitors who are in that position. Most of the big guys the legacy groups who have weaker in the short haul space of ryanair. It would be norwegian which is a specific area of geography versus ryanair. Time will tell. This is europes largest lowcost carrier trying to reinvent itself or become more attractive to the business traveler. Opening new routes including new Services Offering Fast Track Services to some of the customers. S. Customers. Can it compete . Terms of the carriers they already beat them hands down in terms of total volumes of passengers and in terms of making money out of the customers. Weve seen it in air france canada. Particularly wrestling trying to cut losses. They have pilot programs. But ryan air still way ahead. I want to ask you about the parent of British Airways making another bid for air lingus. If that goes through what are the implications for bigger picture. Will we see more consolidation. There are so many options here. Back in north america it seems much less choice. We have the same consolidation here in europe in terms of a numbers. In the states you u talk about five. Here in europe its the market share is much less. Probably 90 accounted for. Maybe 65 here in market. Theres more consolidation to come. Ling lingus is in good financial health. It would look more secure in the future to be part of the group. I think it is a natural fit. The two big issues back to ryanair. Will they sell out their shares . They might be forced to soon anyway. It is a good chance to do so and get reasonable recovery. The Irish Government is more intangible. Dublin is a great market. They call them cast iron guidelines. Not little ones but big ones. Cast iron. Thank you so much for that. John strikeland. Lets switch from airlines to fashion. Legendary Fashion Designer tom ford has admitted the crisis in russia impacted his business but said he remains bullish on emerging markets. We spoke to him in a upcoming conversation. There are so many. Tom is a fantastic interviewee. Open honest candidate. Hes been through so many ups and downs. He famously left the gucci group in 2004. He had a midlife crisis. He come back with his own brand. I went to meet the great man himself. I think like everyone emerging markets with china and china is still very very important market. Theres been a bit of a downturn in the China Economy lately and middle east. Terrific Customer Base in the middle east. Right now our next Stores Opening are in america. Were opening miami, were opening atlantic were opening houston all this year. Were opening a few new stores in the middle east as well this year. But, you know, south america is important. But globally its interesting because africa in certain places has become important and africa has become a powerful Luxury Consumer. So its, you know, fashion is global today. Everything is global. If you dont think globally i dont think you can really be in business. What about the current geopolitical inability. What is going on in russia and the middle east . It is definitely affecting business. Absolutely affecting business in the luxury sector. I think we have been affected less than other brands because our Brand Recognition is growing every day. So more and more customers are understanding what were about and coming into the store. Which is offset a bit the downturn in Luxury Consumer Shopping Habits of Luxury Consumers. And were not as, you know i think when youre in every major city and your sales growth youre a mature brand. You can feel the hit. Were in the process of growing. Were not as exposed because we dont have as many stores. There are two factors that are helping us. Were affected by it. I think everyone in the luxury industry is. Youve got four stores i believe, in russia. With the downturn of the ruble. The interesting thing is our russian customers are not traveling as much. Our russian customers are not spending as much. But in russia our sales have gone up. Theyre staying home been theyre shopping in russia. Its interesting. You can see the full conversation that i had with tom in a couple of weeks. As i said before he was so open and candid. He talks about his midlife crisis he had. He talks about overcoming drink. He talks about his relationship with Richard Buckley who hes been with 27 years. And who he quietly married a couple of years ago. They also have a son together. An icon in the fashion industry. Thank you very much for the interview. Still to come our next guest says 2015 will be a volatile year for equities and currencies. Find out how to navigate the turbulent waters after the short break. The first trading day of february. World to worldwide exchange. These are your headlines from around the world. U. S. Futures indicating higher open on the u. S. Trading day of the month. As major turn in their second consecutive negative month in january. G reports suggest it has set aside enough money. Julius baer in focus after a 22 jump in 2014. The swiss banks a unveiling a Cost Cutting Program to counter the rise in the swiss franc. Its a very dynamic environment. We decided to react swiftly. This is the package we believe is necessary for the time being. We would like to then focus the organization back on to business entirely. And what a game. The new England Patriots on top of the world today beating the Seattle Seahawks in a nailbiter to win the super bowl and the fourth time in team history. Announcer youre watching worldwide exchange. Bringing you Business News from around the globe. And welcome to the show. The big trend or focus last week was arguably the stronger dollar the impact it will have on the american multinationals that do business overseas. It will be interesting to see if investors will pivot the discussion to oil, which at one point last week investors were talking about whether it found the bottom. Clearly today given the lackluster data from china as well as from the 2. 6 from the u. S. , Oil Continues to fall. Yeah absolutely. You saw it could be a bounce. Some people are saying last week it wasnt encouraging rebound. One we hadnt seen in awhile. A lot on the substantial for the big horse. The nonfarm payroll at the end of the week. Which is a huge risk. And greek negotiations continue. Im not sure what to make of them. One day theyre up. One day theyre down. We have the earnings from the big oil produces which will highlight how bad its affecting their bottom line. Take a look how theyre trading ahead of the wall street open. The dow indicating a higher open. The s p 500 the bench market indicating a higher move. Just by around 1 point. The focus will be on earnings. Exxonmobil the Largest Oil Producer in the world by market share will be reporting. Well be discussing with an analyst what to expect. On the note take a look at the ftse global 300 index. Investors are digesting a combination of softer than expected data out of the u. S. China also falling weaker than expect. A lot for investors to digest. On top of that Falling Oil Prices and a euro that is strengthening against the u. S. Dollar. The Index Trading flat at the open european markets as weve been telling you have been trading higher interestingly enough european stocks outperformed the s p 500. Trading at the sevenyear high. Pmi data out of germany the index is trading higher around 40 . And the ftse reversing their gains down about 135 points. The focus here in europe has been the pmi data. Mix but all though the eurozone pmi coming in slightly higher for the month of january. Absolutely. And all eyes on the greek finance someone minister and the Prime Minister. Well find out how hard their stance is. Their antiausterity stance is. It seems they want some help. Lets take a look at the bond market. Here is how were seeing. We have seen over the last few sessions more risks actualliless risk. But were seeing it come back. In in the german 15010year were seeing the risk. Its a safe haven play. Greek yields have been all over the place. Yielding more than 11 . Certainly if you were looking for yields that is one place to get it. Some of this risk aversion comes from, of course the finance minister making rounds through the eurozone as well as that meeting over the weekend which seemed a little bit uncomfortable at times. How its playing out with fixed income space. Lets take a look how they are playing out. Were seeing the euro u. S. Dollar 1. 13. Coming away from the 11year lows reached early last week. U. S. Dollar japanese yen holding at 1. 17. Not a lot of movement there. This is an interesting one to look at. Speculation seems to be growing that the reserve bank of australia, the strankcentral bank is going to cut rates. Economists are saying something different. Australia could be the next central bank to ease policy as we see a growing number of Central Banks do so while the u. S. And the u. K. Going in opposite directions. Were going to commodities. I almost forgot. But we want to take a look at this. We did see the price of oil rebound quite significantly on friday. Were seeing it give back the gains. Wti crude hasnt fallen down too much. 47d. 30 and brent crude at 52. 28. Were seeing some weakness. Holding above the earlier levels. Some people were willing to last week. Absolutely. And central bank intervepgs will lead to a pick up in consumer demand. Weve been getting comments coming from the European Central bank. Bond buying is expected to begin in the first of march. He says the central bank will start buying bonds in the first two weeks of march. The governing Council Member in the European Central bank saying the impact of quantitative easing should be seen by the summer. That has been the big question. Lets get to our next guest. Jim, you know, given the ecbs announcement two weeks ago they are unveiling the massive quantitative easing program, the big question is, when will it be implemented . When will we see the benefit of qe. Do you think it could be the summer when we see the impact the european economy . Yeah. We would look for it maybe a little bit later than that. They dont begin buying bonds until mark. As you mentioned, i think theres going to be a little bit of back and forth with the greek element of the particular program. We dont think that monetary easing in europe will really show up in the macro numbers. Maybe even into the fall. Were starting to see a little bit of deflation in europe as youre well aware. On a headline basis. We think that perhaps that continues to slide just a little bit down. Monetary easing always acts with a little bit of a lag. So we dont really see it being effective and shows up in the economic numbers until the fall. Now that being said we think it will have a market lift and lift the pe multiples of europe sooner than that. Thats probably an operative right this second. Do you expect european equities to move higher despite ecb not quickkicking until the fall of this year. Where do you put your money . Its a great question. We do see european stocks continuing to move higher. Quantitative easing program, of course, at a dramatic positive effect here in the United States. We do see it having a similar effect in europe. What gives us pause is that europe has yet to really restructure on a company by company, country by country basis. That does give us a pause a little bit. We see some repair work still needed in the Banking System in europe some capital race s raises et. Cetera. We can see maybe the Financial Sector and other sectors working pretty well. Lets switch focus to the u. S. The weaker than expected gdp print, do you think it gives the fed one more reason to in fact not raise rates come 2015 . Its a close call. The fed is making noises they would like to go ahead and remove emergency accommodation. Understand that. But i think your point is well taken. We are having almost doubts of deflation here in the United States. Were seeing very weak earnings of guidance for early 2015 because of the stronger dollar. We have big parts of the globe, china, europe japan really at recession levels or close to it. Russia represents a little bit of an economic and military risk. So we do think theres less than certainty around where the fed goes. We think that the fed is on record indicating mid year on the liftoff for rates. I think they gave themselves some wiggle room in the last fed statement indicating that perhaps that move to the fall and we think its a close call. Either june or september and possibly even longer because of low inflationary trend here in the United States and borderline deflation trends across the globe. The fed has a dual mandate. The question is, can they raise rates . They say theyre going to. Of course, the jury is out. Well leave it there. Jim russell, thank you for your time. Let get you a rundown what to watch the trading day. December personal income and spending numbers are out at 8 30 a. M. Eastern. Income is forecasted to rise while spending expected to drop. At 10 00 a. M. We get the january Manufacturing Index and construction spending. Fourth Quarter Results before the opening bell as sysco the food service company, and hartford financial. Breaking news coming across headlines. And the new greek Prime Minister is in cyprus. Hes speaking saying that we as in greece will support cypresss efforts for a just solution. He also says that messages greece has recently received show that logic cooperation for common european good is returning. Youre seeing him make nice after a lot of bold statements after his party syriza was elect the. Weve seen the walking back from those the harsh language especially over the weekend after you heard some words from the new greek finance minister. Cyprus talking about cooperation. It doesnt look like greece wants to leave the eurozone. Whether it has to be seems to be a daily rollercoaster. The bigger concern it could take up to four months to agree to a new contract with creditors. Do investors have enough patience to wait out. And do they have time . Greece has bills to pay. The debt expires a the end of the month. Lets switch focus. Continue to talk about greece but for now lets take a look at the automakers. Recalling more than 2 million older model cars for deeffective air bags that may deflate while the vehicle is running. U. S. Safety regulators say the action comes after automakers attempts to fix the defects did not work in some vehicles. This weekend was the deadline to file claims with the gm over accidents that may have been caused by the faulty ignition switches that were recalled last year. The wall street journal reports it will not exceed the 400 to 600 million gm set aside to pay those who were killed or injured. It will take weeks to sort out a late rush of claims filed this weekend. Gm shares in germany are trading lower. Kent fine burg, the lawyer overseeing will be on squawk box at 7 00 a. M. Eastern. You wont want to miss that. Fords cfo said he sees ongoing problems in russia weighing on the companys market share. In an interview he said 2015 does not look good. Russias currency and economic woes were cited by ford last week as major reasons its cutting expectations for the European Businesses this year. A number of competitors are aggressively cutting prices. He said ford is looking at several options but pulling out of russia is not only the table. Take a look at the stock for trading down by around 1 in frankfurt. Its interesting to see over the last couple of weeks many executives and ceos have been voicing their concern over russia. We were speaking to tanya and tom ford saying russia of course, a weak spot for the company. And others including from the auto sector saying it will be a concern for their bottom line. Well get a taste of exxonmobil earnings out, too. Yeah. Well see how it plays out. Coming up well talk to the ceo of julius baer. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. These are your headlines. U. S. Futures indicate a higher open on the first trading day of the month. Gnc compensation for the faulty ignition switch recall. The patriots beat the seahawks in a nailbiting final to win the super bowl. Julius baer shares are trading higher after a Bank Reported a 22 rise in 2014 profits. The swiss banks ceo told cnbc he sees great opportunities this year thanks to increased volatile till. You can take a look at the stock its up about 7 . Lets get to carolyn ross who spoke to the ceo in a first on. Shes live with the beautiful background. Tell us what do you think are the main take aways . It seems like investors are cheering the Cost Cutting Program of 100 swiss tankfranc. Theyre cheering a number of things. Second of all, much higher than expected dividend. That is a 67 percent increase from last year. And no one was expecting that given the pressures that is coming from the smb and the markedly higher swiss franc. And the numbers were okay. Not a huge miss. In fact, net new influence of 13 billion that was a little bit lower than i expected. I wanted to know from the ceo how much of his ability he had left for the year give the higher swiss franc and the lack of predictability of the Monetary Policy action. But thats the environment, francly, we like at julius baear. I think we see it as a challenging environment for everyone. And in relative terms it should be beneficial for us. And i was just in the call and listened in and he reiterated the good level of volatility. That is very positive for us and thats also continued into this year. Theyre seeing pretty positive momentum there. He said that 2015 will hopefully be the year when they finally strike the Tax Settlement with authorities on the tax e vision. Now weve been expecting it for many years but the problem is they havent provisioned for it yet. Why in . Because they have no reliable basis on what they should be provisioning for. So expect more news flow from jewel us baer and many other swiss banks in this regard this year. Such a big story given the economic ramifications of that Unexpected Movement from the Swiss National bank and how the banks are reacting. Thank you very much for bringing us that on worldwide exchange. Coming up after this break, were going to stick with the super bowl. Crossing live to glendale arizona as we assess the big game. And check out the commercial winners and losers. Thats coming up. Super bowl 49 lived up to the hype with the patriot and the seahawkings battling until the end. Sara dayloff is in glendale arizona for us. Good morning. Like you said a very exciting game epic game going to be debated for years to come. Fans just winding down the celebrations. Cleanup crews just Getting Started this morning. And of course, the has been of the night tom brady, the First Quarterback to lead his team to six super bowls. A fourth championship and a third mvp under his belt. A lot of people not necessarily watching for the football but the halftime entertainment as well. And katy perry, this year did not disappoint performing alongside Lenny Kravitz and missy elliot. She came inside riding a puppet lion and the excitement and the show didnt the excitement didnt dip during her 12minute show. Now for fans heading home today. The Patriots Fans heading home. It wont be an easy trip home. Theyll have a lot of tlas. A lot of cancellations. We have bad weather in the midwest and the northeast. And thousands of flights so far have been cancelled. Back to you. In the meantime the fans can sit at the bar and drink whether youre happy about the winning or sad about the seahawks losing as i am. What stole the show at super bowl xlix. The halftime show . The seahawks final play . Or the commercials. Lets us know join in on the conversation here on worldwide exchange. I have to say it was a good move on the super bowls behalf getting katy perry. She has the most twitter followers out of anyone on twitter. 64 million and counting. I noticed sara said she floed on a lion. There was a debate whether it was a lion or the tiger. The song was eye of the tiger. But roars like a lion. The president revealed the thinking on a number of other key issues including offense and defense or chips and wings. He was pressed on the views on two president ial nominees clinton or biden. Football or basketball . Im still a basketball guy but i love football. Offense or defense . Offense. Wings or chips . Thats tough. Im going to go chips and guac. Hillary clinton or joe biden . Love them both. Nice try. I had to try. Sticking with the president , president obama will release his fiscal 2016 budget today at 11 30 a. M. Eastern and speak about the plan before noon. White house officials said the president will propose a 478 billion. That will be paid for with a onetime tax on companys foreign earnings. The plan also includes a 19 tax on all foreign earnings as theyve been accumulated. Which companies can reinvest in the u. S. Without paying additional taxes. Still to come on the show exxonmobil becomes the latest oil major to report earnings amid the plungeing price of crude. We preview what to watch out for. A quick look at futures. According to a higher open on the first trading day of february. The nasdaq bucking the trend down about 2 points in premarket trade. It is 5 30 a. M. In new york. Good morning everyone. Welcome to worldwide exchange. These are your headlines from around the world. Well start with markets. U. S. Futures indicate a higher open on the first trading day of the month. After major indexes turn in their second consecutive negative month in january. Wti on the slide after having the best day in over two years. Exxonmobil expected to become the latest oil major to slash spending. General motors sees a late rush of claims as a deadline passes for compensation related to the ignition switch recall. Reports suggest it set aside enough money. And the patriots on top of the world today beating my poor Seattle Seahawks in a nailbiter to win the super bowl and the fourth title in team history. And it is the first trading day of february. Lets take a look at u. S. Futures and what theyre referring to in terms of wall street open the s p 500 indicating a higher open by around 1 point. The Dow Jones Industrial up about 15 points. The nasdaq bucking the trend down about 2 points. And digesting a combination of lackluster growth data out of the u. S. On friday. That 2. 6 print on gdp. Keep in mind we got weaker than expected chinese pmi activity plus a dip in oil prices. All weighing on investor sentiment. Interestingly enough when you take a look at europe. Markets mixed pmi data that came out across the eurozone. We did see a modest pick up of growth. The focus has been germany. Manufacturing makes up fifth of its economy and pmi data. It came in at 50. 9 slightly higher than expectations. Keep in mind in the month of january, germany, the best performing developed market of about 9 . The question is can the rally continue . Especially now we got the ecb announce announcement. Now investors will want to see a proof whether it is in fact helping the economy. Lets switch over to oil. Because friday we did see a big spike in crude prices. Up by around 6 . Some traders debating whether oil found a bottom. Given the weak global data that u. S. Gdp number on friday and todays china pmi. That suggesting weaker Global Demand for oil. Were looking at Oil Prices Lower in todays session. Wti crude trading at 47. 47. Brent crude holding on to the 52 level. Exxonmobil is set to report earnings before the bell. All eyes on the call tal spending plans. Analysts expect revenue and earnings to come in lower than 2014 Fourth Quarter level. The shares are trading around 5 over the last 12 months. Joining us now is ian reid. Thank you very much for being with us. Throughout the show were talking about the russian effect. Its hitting Luxury Brands to automakers. Well see that effect with exxonmobil through the business. How do you think its going to play out in the earnings cycle . They dont have a huge bp has a big shareholder. That have a big project put on hold because the sanctions. It will certainly upset exxon medium term value. Its not going what we have estimate of 11 . Shale has a 15 billion. We know declining oil prices will hit. Its bottom line. Do you think the oil giant could surprise to the upside . I was looking at my notes on average earnings forecast for exxon have come down around 5. 5 . Yes. Exxon is probably less than the others. It has more downstream. It has the biggest downstream in industry. Is that priced into the earnings estimates . It seems like it is. Im pointed in their upstream division which is the biggest division in the company. I wouldnt expect them to be a little bit light on the consensus earnings numbers. Looking for a little bit of disappointment today probably today. You talked about the dividend yield. Its been an attractive stock looking for yield. It yields about 3. 57 . If Oil Prices Continue to decline. Do you think theres a chance that the oil giant, the worlds Biggest Company by market value. Do you think theyll take their dividend off the table . No. Why . They have the most important priority as well as spending concerns. Exxon is certainly no different than anybody else. They have the biggest Share Buy Back in the world. They can easily go on the Share Buy Back. Like chevron the other day theyll do that. The yield is good. 4 . Its not anything like as good as the european. Shale is 6 . Its good in u. S. Terms but not necessarily global terms. Lets talk about opportunity and shale. Analysts say that though exxon is a little late to the shale party theyve been interesting and its on the radar. Now the opportunity as some of the shale assets and Companies Get cheaper and cheaper. Are you going to see exxonmobil get in there and make some purchases . They have to try that. A few years ago they spent a lot of money on that. It was gasrelated shares. It didnt work because gas prices fell. I can see exxon running the rule over medium sized Shale Companies given the huge decline weve seen in the share prices. Some are in financial distress. You step back and looking a the energy sector. The worst performing sector in 2014. The second worst this year. Financial is the worst performing. Evaluation wise many say it looks cheap. Do you agree . Its certainly getting cheap, yes. It depends. Absolutely. Now is the time to buy. If i was going to be getting in i would be buying the small thank you for joining us. Well get the exxonmobil reports due in a couple of hours. Ford cfo said he sees ongoing problems in russia weigh on the companys market share. In an interview he said 2015 does not look good. Russias currency and economic woes were cited by ford last week as major reasons it is cutting expectations for the European Business this year. Ford is looking at several options but pulling out of russia is not on the table. Take a look at the share of price down about 4 10 of a percent. Legendary Fashion Designer tom ford said russia has impacted his business. He explained why he remains bullish on global emerging markets. I think like everyone emerging markets with china and china is still very, very important market. Theres been a bit of a downturn in the China Economy lately and middle east. Terrific Customer Base in the middle east. Right now our next Stores Opening are in america. Were opening miami, were opening atlantic, were opening houston all this year. Were opening a few new stores in the middle east as well this year. But, you know, south america is important. But globally its interesting because africa in certain places has become important and africa has become a powerful Luxury Consumer. So its, you know, fashion is global today. Everything is global. If you dont think globally i dont think you can really be in business. 2015 is just a month old. But already there are millions of cars being recalled in the u. S. Adding to the giant list from 2014. The latest issues to catch the eyes of the safety regulators. Thats up next. Xkc more trouble for the big automakers as u. S. Safety regulators announce another major recall this weekend. This is affecting a number of them. It is. More than 2 million older model Toyota Chrysler and honda vehicles are being recalled because of deflengtive air bags that can deflate when theyre not supposed to be. The ntsb said there have been about 400 cases of air bags deploy deploying. The action is being taken because previous attempts to fix the problem didnt work in some cars. About 1 million toyota and honda vehicles affect bid the recall are being recalled for the faulty t aka air bags. This week the deadline to file plans with gvm over accidents that may have been caused by faulty ignition switches. It wont exceed the 400 to 600 million to pay those that were killed or injured. It will take weeks to sort out a late rush of claims filed this weekend. The lawyer overseeing gms compensation will be on squawk box at 7 00 a. M. Eastern. Be sure to tune in. We will. Thank you very much for that report. At this hour lets get you updated on the headlines. U. S. Futures indicate a higher open on the first trading day of february. Gm seeing a late rush of claims for companiation related to the faulty ignition switch recall. And the super bowl final the patriots win over a nailbiting finish to the seahawks. Welcome back. President obama will release his fiscal 2016 budget today at 11 30 a. M. Eastern time. White house officials said the president will propose a 478 billion increase in funds for rebilling u. S. Infrastructure. That would be paid for with a onetime 14 tax on u. S. Companies earnings theyve already made overseas. The plan includes a 19 tax on all foreign earnings as theyve been accumulated. Companies will be able to reinvest in the u. S. Without paying additional tax. U. S. President obama has appeared to express sympathy with the newly elected greek government. In an interview with cnn barack obama said the Growth Strategy in order to pay off the debt. It comes as a greek finance minister arrives in london as part of a whistle stop tour across europe to drum up support for a new debt agreement. In the meantime the focus has been on the bailout negotiations between greece as well as the european policy makers. The finance minister said it could take up to four months to agree to a new contract with creditors. Greeces bailout expires at the end of the month. So the prospect of a default. That is the big concern. In the meantime investors have been getting out of bonds greek bond. That results in yields to threeyear bond. You can see on trading at 19 . That is the yield. You talk about record low yields when looking at the german. The u. S. 10 year at 1. 6 . Were looking at megahigh yields. Yields. So of course ongoing negotiations between greece and european policy makers. In the meantime investors flee out of greek bonds. On to the super bowl. Super bowl xlix lived up to the hype. End trailing late in the end. Pats Quarterback Tom Brady hit Julian Edelman for the touchdown. And Russell Wilson threw a long pass. And with the ball bouncing in the air. A lot of big moves in this game. But, of course, katy perry also stealing the limelight with her the legacy seems to be set now. The game wasnt the only action going on at the super bowl. Katy perry rocked the halftime show. She sang her hit roar on the back of a tiger or a lion. She performed a medley of other songs. Perry enlisted the help of a few special guests. Yeah, if you werent a fan of her music, you had to be impressed by the props that were used. Costumes diamonds were talking about that large lion tiger. That was a show. The super bowl is also about the ads that ran during the game. A 30second spot cost 4. 5 million this year. Companies went light on humor. Opting for more serious commercial that tugged on the heart strings. The viewers weighed in. According to usa todays annual ad meter budweiser came out on top for a second straight year. What stole the show for you . It was katy perrys halftime show, the seahawks final play, or the advertisements . Joe tweeted in to say the bud ad was good who doesnt like a puppy. Some went too far. The insurance said it wasnt light enough for the super bowl. I think its a good thing. I think its okay not to just have fun and games try to use the opportunity to relay message. A good message. We can get your tweets in over the next half hour. Lets take a look how european markets are trading. Weve seen a little bit more risk creep into the session. We were higher earlier on. The ftse 100 come in negative despite a pmi manufacturing number that came in above expectations. We also received a number for the rest of the eurozone coming in in line with expectations. You have a lot of events going on that may be stopping some of the risk appetite. Chinese twin pmi shows that the economy continues to slow. Lower oil prices and the lower than expected gdp read out of the u. S. And jobs report due later at the end of the week. Yeah. Despite the mixed reading day in europe european stocks are out performing u. S. Equities so this year. And the stocks 600 up versus the s p 500. And futures indicating a higher open. The dow indicating a higher open by around 38 points. Nasdaq up 4. S p 500 up about 5 points. Keep in mind weaker than expected gdp print on friday. Some investors say it will give the fed one more reason to perhaps not raise rates. Something well discuss with the next guest. Personal income and spending numbers out at 8 30 a. M. Eastern time. Income is forecasted to rise while spending is expected to have dropped last month. At 10 00 wpm we get the january construction spending. And take a look at this. It was hard not to mis. It was a big mover on friday going public on the New York Stock Exchange gaining almost 120 . A big move for the giant. Lets get out to the chief option strategy at bulls eye option. Alan, shake shack 120 gain in one day. Do you think theres longterm value here . Im not sure. They have an interesting model. They sell liquor. They sell beer. So maybe mcdonalds will wake up to the chicago chicago. How should investors read that latest. Is it a sign that the u. S. Cannot grow at 3 to 4 when the rest of the world is in fact slowing down . Well, i think you have to smooth out the numbers a little bit from quarter to quarter. Its close enough to the 3 . I dont think its a major concern. The spill over is what affect is that going to have on raiseing rates. Obviously they will. Its only going to happen when the economy is strong enough. I think that tables the near term rate increases. The two pmi numbers out of china were disappointing. The official number calling into contraction territory for the first time in more than two years. Youre seeing investors here in europe and the u. S. Judging by futures really shake that off. Have the Market Investors become comfortable with the slow in china . Yeah i think its an old story. For me its all about price action. Its the important. It reflect everybodys opinions. We get data out of china. How value is it and how much have we discussed before . If you look at the price action here in the states. Weve seen a series. Its been amazing. We havent made new highs in the s p in more than a month. Weve been seeing a series of lower highs and higher lows. Last week we got to the lows of the month and bounced. Well see if we can hold that level. Were in a precarious situation spaced on the technical pattern. Something has to give. Yeah. Volatility simply seems to be back in the game. You were pointing out data. This is a big week for the u. S. Markets. We have the jobs report on friday. Economists looking for 235,000 and Unemployment Rate on 5. 6 . What are you expecting . Well, the employment rate i dont think has as much impact. We talk about if for a day. What is more important. Getting to the midpoint of the earnings season. Weve had about 225 in the s p 500 stocks announced so far. If you look at the half waypoint 80 have beat their earnings per share and 58 , which is lower than usual, beat on revenues. We havent seen much of a reaction to that. Apple, obviously, and amazon had blowouts here. That hasnt supported the market that much. We havent seen any follow through buying and thats somewhat of a concern here in the near temple. I think the Lower Energy Prices and like you talked about the low Interest Rates. We have 1. 6 in the 10 year and 2 3 4 in the 30year. I think it sports the market in the longterm. Talking about earnings season ace head. The estimates being vised down on profit and revenue. What is driving u. S. Stocks this year . Well, but the revised down in growth. Lets talk about that. The growth estimates are being revised down. Its still growth. We have to focus on that. Its not as fast as we were. I think the market has a lower bar to overcome which can be viewed as a positive. Will be important to see how things react this week after the action weve seen in the last two weeks. A lot of gains gave back last week. Weve seen poor price action. The way the market sold off the last hour and a half on friday. It plbwill be interesting to see how things respond. Thank you so much. And keeping an eye on greece. German government spokeswoman said she sees no need to abolish the role in the greek program. This as we awake the greek finance minister due at 11 00 a. M. Eastern at 10 downing street for talks with the u. K. Counter part George Osborn any minute now. A lot of focus on the bailout negotiations between greece and other european policy makers. In the meantime weve been seeing investors get out of greek bonds. Thats resulted in greek yields spiking the threeyear at 189 . The 10year at 11 . Big moves there. That does if for us on worldwide exchange. Thank you everyone for watching. Squawk box is up next. Good morning. A major storm slamming the northeast today after dumping more than a foot of snow on the midwest. In washington were watching as president obama is set to unveil a 4 trillion budget plan today including an opening sal vow on corporate profits and Corporate Tax yags from overseas. And super bowl champions the patriots edge the seahawks in a dramatic ending. Its february 2nd 2015. It is groundhog day. Squawk box begins right now. Live from new york where business never sleeps. This is squawk box. Good morning everybody im becky along with joe and andrew. It is a wintery mess in new york city this morning. So we are hoping for the best from punxsutawney phil. Hell come out of the hole for 129th groundhog day. Its a tradition we look forward to every year. If he sees his shadow and returns to the hole it means six more weeks of winter. If he doesnt, well take it as a sign of an early spring. Were hoping for clouds rain snow, anything that will keep him from seeing his shadow today. We have calm of other big stories were watching. President obama officially proposing a 10year budget. A 14 tax on u. S. Companies overseas profits to finance a public works program. Well talk more about the plan in a moment. Also on the earnings front, h

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