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European central bank designed to help jump start the regions sputtering economy. Starting in march, the European Central bank will buy upwards of 70 billion worth of government and private bond. Every month for at least the next year and a half or as long as its needed. That aggressive stimulus that could total more a trillion dollars was even more than Global Investors expected which helped stock here and around the world move higher today. On wall street the dow soared 259 points with the utilities index setting an all time record high. Todays 83 points gain in the nasdaq and 31 points for the s p 500 were enough to wipe out all of januarys losses with those indexes. Steve liesman now with a closer look at whats in the ecbs bondbuying plan and how it will work. Reporter the European Central bank finally put its money where its mouth has been for the past months way back in july of 2012 mario draghi promised. Ecb is ready to do whatever it takes to preserve the euro. Reporter today, amid declining inflation and growth draghi sat before the worlds cameras and announced a sweeping bond buying or quantitative easing designed to shock europe out of its spot. Taken together, these factors should strengthen demand increase utilitilization and support money and credit growth thereby to return to inflation rates to 2 . Reporter at the heart of the plan is to purrchase 68 billion a month of bond of the 19 member governments and it will last for at least 18 months but draghi harkining back to his promise said it could last longer until the ecb said its sure its on the path to the 2 inflation. Looking ahead, todays measures will decidely anchor the medium to longterm unflags expectations expectations. It w further ease the monetary stance. Reporter the ecbs biggest economy, germany which worried about the inflationary effects of such large purchases and german chancellor Angela Merck El before draghi even announced the plan cautioned european neighbors wouldnt let them off the hook for acting important structural economic reforms. Despite telegraphing the move for us draghi managed to surprise markets. The euro fell to an 11 year low and italian ten year bond yields dropped 16 basis points to 1. 6 . Stocks soared around the world but theres skepticism. If draghi and ecb are out front, its the First Time Since the financial crisis began. For nightly Business Report, im steve liesman. From athens greece davos switzerland, and london england, we begin in frankfurt, germany, with annette. Reporter they have announced the quantitateyate easing program, meant to spur inflation in negative territory and also to have the euro zone in its economic recovery. The volume was a little bit more and also but positive heard from the European Central bank today is that there is a notion of open endedness in that program, so that means it could run longer than september 2016. For over all, its hard to surprise the European Central bank even though critics are saying quantitative easing will not work as well in the United States but euro zone banks are more important to the finance the economy than in the United States. For nightly Business Report, im annette visor in frankfurt. To Michelle Carusocabrera in athens greece. Reporter this is a massive rally for the sarisa party, the radical left. The leader of which could be the next Prime Minister of greece after the election held on sunday. This rally occurs on the same day the European Central bank anounlss that greece will not participate in the massive Quantitative Easing Program at least not at first. The head of the ecb, mario draghi said that greece has to be in compliance with its Bailout Program and right now, its not. And the leader of this party said he doesnt want the program. He wants to change and even the ecb to do the amount of loans theyve already extended to greece. A massive proportion. Large volatility in the market and not clear whether the people understand whats at stake. For nightly Business Report, im Michelle Carusocabrera athens greece. Seema mody has reaction from london london. R t Financial Capital cheer the massive stimulus move and we saw that play out. The investors rotating out of european bonds into equities. In fact investors setting the 100 stocks listed on the London Stock Exchange up by around 1 . But really had participants in london talking was the big move and best in seven years against the euro. The strengthening pound something the bank of england is watching closely since along with plunging oil prices have capped inflation in the u. K. Well below its central bank target of 2 . So what is a weaker euro versus a pound mean for the consumer here in london as well as the u. K. . Well it means goods in britain will be less expensive, perhaps making them more attractive another boon for the u. K. Consumer which is already enjoying low unemployment and a recent pickup in wages. For nightly Business Report, im seema mody in london. And Geoff Cutmore now with more from the World Economic forum in davos, switzerland. The reaction to the european centurl banks announcement here at the World Economic forum in davos has been broadly positive. I spoke to the chairman of alby who said it would help them do greater business in the United States a market theyre particularly keen to tap into. When i spoke to the head of oohni credit said he hoped it would stimulate growth not just in italy but europe as a whole even though it may put some pressure on their net interest lender margins. The Business Community here at the World Economic forum that mr. Draghi has delivered on his promise to provide more liquidity to the euro zone and lower Interest Rates. This is Geoff Cutmore for the nightly Business Report in davos, switzerland. And now lets turn to mohammed elerian for his analysis. Hes chief Economic Advisor with elyans. Here in the United States whats the significance to u. S. Here at home . Stock investors are better off today because of what happened. This is a confirmation that Central Banks is the markets best friend not by choice but by necessity and this injection of lickquidity is good for Interest Rates through a low level. The people should worry are the currency traders because this is going to cause further volatility in the currency market. We already saw the euro move by almost 3 since before the announcement to the end of the day. So the currency market and the businesses set abroad will find that its harder to maintain and grow market shares. Mohammed for europe is this in any sense curative and will it work . Question is will it work in ultimate objective of promoting Economic Growth and stopping the deflationary risk no its not enough. Its not sufficient. Will it work as appearn intermediate objective in the shortterm yes, it will. But ultimately if you want to get europe out of its funk youre going to need a much more holistic policy response and not just the central bank. What is the odds of that even though its the euro zone and supposed to act as one, theyre all the individual countries with their own selfinterest. Weve seen very little progress on policy reform. Yes absolutely right. And michelles segment from greece is really instructive. 6. 5 years after the Global Financial crisis people within the euro southern cannot agree on the past and present of the crisis. The president to hold things together to buy time to it rate some common vision. Can it hold it together . Will the euro be around in five or ten years . I think the euro will be around whether all the members will still be in the euro thats the decision that the greek voters have to decide. I think the big test is going to be the currency market. Ive said this before. Whenever you move the major currencies in a major way, you tend to break something. Weve seen this with switzerland. We saw how close denmark got to breaking something there. So worry about whether the system can support major moves in the currency market. That is the key. If it can, the ecb bought the equity market longer one way. If it cant, volatility will come back. For u. S. Investors who may be holding bank stocks overseas or banks that have large currency operations and w other day to some of them when the swiss frank made its move should they lighten up on the holdings perhaps or avoid those type of stocks if the volatility is that . Some call it a currency war. Yeah if youre holding that sort of rotate into exporters. You heard about how exciting and should be. Its much more competitive than six months ago. So if you want exposure in europe focus on those companies that have large export activities. They are benefitting enormously from a dramatic move in the europe. Thank you, mohammed elerian with ai lienz. Defended its currency against the euro and china injected 5 billion into the naxs money markets today keeping commercial banks flushed with cash after chinas economy grew the slowest rate in more than two decades last quarter. More International Economic news today. But this time from cuba. Where talks kicked off today between u. S. And cuban officials aimed at normalizing relations and opening up commerce. Eamon javers has more from havana. Reporter a historic day here in havana as the highest level of american delegation arrives on the island in 38 years. Theyre talking about normalization of relations between cuba and the United States and possibly reopening the u. S. Embassy which was closed in the early 1960s. So far, weve seen positive statements from both the cuban side and from the u. S. Side. The cubans spoke on camera a bit on what they had to say. The talks had been carried out in a very respectful flexible environmental way. I would foresee that we continue to work in the same spirit. This first round of talks has been a positive and productive dialogue. We just got real and concrete terms, the required steps for the reestablishment of diplomatic relations between our countries. Reporter as you might expect fairly positive and upbeat signal from both sides here but fairly vague on the specifics of what exactly has been agreed to as of now. One of the big issues of su course in the u. S. For people coming to cuba has been what if anything are you allowed to bring back to the country . There are new rules in place as of last week on that. One of the things american visitors to kuba will be able to do is bring back cubaen rum and cubaen cigars. Said thats going to make a real difference for them and family and friends back home. In havana, im eamon javers for nightly Business Report. Still ahead, google reportedly plans to offer a Wireless Phone service but why woul it want to enter an industry that already is under pressure . Two dow components out with earnings before the opening bell today and the results were poms apart. Profits rose at the Insurance Company because of fewer catastrophic claims meant fewer payouts to customers. In the meantime verizon reported net loss of more than 2 billion getting slammed by pension and severance cost even though it did add many more wireless and fios subscribers. Up 3 . Shares of verizon went down about 1 . Another concern for verizon is google after reports that the search giant plans to begin its own Wireless Phone service, potentially disrupting the entire telecom industry. Josh lipton has more on how it could look. Reporter google could be the next player in wireless service. Internet giant cut deals with sprint and t mobile to offer mobile phone plans directly to consumers according to published reports. The established carriers would still own the networks but lease a piece under a google branded name. Some small wireless carriers already function as these socalled mobile Virtual Network operators. Google would set its own prices and deal directly with customers but wouldnt have to take on the expensive time consuming task of building and maintaining a network. Piper jaffrays munster said thats ideal because he doesnt see this as a longterm play for google. We believe the big goal for google is to motivate existing wireless providers like verizon, at t to lower the price of data. If data prices go down google wins because people consume more data like youtube and do more Google Search and the way that this initiative can influence data pricing is they can go in and influence and start to come out with plans that are lower cost. Analysts say google can attract wireless customers by offering lower cost plans, if its willing to lose money and could gain market share based on its name. Sprint and t mobile are the third and fourth largest wireless carriers in the u. S. By subscribers, according to fierce wireless behind verizon and at t which may recollects them the logical partners for google. T mobile and sprint have a lot of capacity unused in their network. Sprint loses customers every quarter more specifically. Any incremental customer on board drops almost straight to the bottom line so they have very little to lose in this situation. Reporter sprint lowered the risk by the right to renegotiate the deal if google gets a lot of customers according to the wall street journal. Google sprint and t mobile are talking about these reports leaving a lot of questions still to be answered. Where google would offer the service, how much it would charge and when it would be available. In Mountain View california im josh lipton for nightly Business Report. We begin tonights market focus with late earnings from starbucks. The coffee chain reported earnings and revenue that matched wall streets estimates. Stronger than the Holiday Season but full year guidance still light. Shares did pop initially after the close, before the close, the shares were up nearly 2 to 82. 74. Union pacific sue shares rumble after reported Fourth Quarter earnings that passed estimates on stronger prices and volumes. Crude volumes increased despite oils price plunge. Shares rose almost 5 there at Union Pacific to 119. 83. Three Airline Stocks soared today. United continental and alaska air benefit from low fuel cost. Southwest beat the both top and bottom lines. Alaska air saw its profit nearly double and hiked dividend by nearly 60 . United missed but gave a bullish 2015 outlook. Shares of all three airlines rose. Southwest rose the most up 8. 5 . United and alaska up about 4. 5 . Shares of Avon Products spiked on deals with a private equity firm about a possible transaction. Thats according to the report. The speculation comes after a six year investigation into whether avon bribed local officials in china. The stock was 14. 5 higher to 8. 66. Shares of land said the Fourth Quarter profit and revenue would come in below estimates. Blamed disappointing sales of cold weather apparel during the Holiday Season. Stocks plunged to 41. 97. Theres a new stock, sue expected to trade tomorrow. The Cloud Storage provider box. But what is box and how does it make money . Julia boorstin explains. Reporter box charges companies monthly fees for its Cloud Storage sharing collaboration and security. Since in 2005 when ceo aaron levee was in college, Cloud Storage has been commodityizedcommoditized. Its focused on consumers and moved into boxs business but levy said box is distinguished by its collaboration too manies. Boxs basis premise is storage should be easy and be able to share those files with the people you work with should be very easy. But from there, they now want to be like a development platform. Reporter box has a business model. Basic tools are free but has a Premium Service for which it counted over 44,000 companies as paying customers at the end of the Third Quarter including nearly half of all fortune 500 companies with a total of 32 million registered users. Boxs client list include General Electric the process of rolling the product out to 300,000 employees and companies diverse as proctor and gambill, as as troe seneca. And health care one of the Fastest Growing and media and entertainment. With more categories in the works. Having these specific delineated relationships in the industry it can add an extra layer of value and then start charging more money for the extra layer of service, going the extra mile for the Health Care Industry for the media industry. Thats basically boxs play. Reporter with all those clients box grew its revenue 80 to 154 million, the first three quarters of last year but one concern for investors, the cost of that revenue isnt really shrinking with net losses of 121. 5 million in the time period. Just a hair lower than a year earlier. One reason box is investing aggressively in sales and marketing for the new industries and the box local collaboration tool rolling out this year. For nightly Business Report, im Julia Boorstin in los angeles. Coming up gridlock. No not in washington. But at the nations west coast ports and some Business Owners find themselves stuck in the. Good news about jobs today. First time jobless claims fell for the first time in a month down by 10,000 backing away from a seven month high just the week prior. Most of those claims stem from seasonal hires being laid off by the holidays. And update on the six month labor standoff at west coast ports with talks between unions and management stalled, theres container gridlock from san diego to seattle. Which side is right and is there any end in sight . Jane wells has more now from the port of long beach. Reporter it was a banner 2014 for the nations largest port complex with a surge in traffic. The problem is getting the cargo on to trucks. The terminal since early november has been operating with 60 of the people they need because the operators are not being dispatched. We had over a thousand members checked in to work last night. Were here to work. You copy . Reporter west coast contract talks between management the Pacific Maritime association or pma and the labor, longshoremen have gotten increasingly bitter as congestion has gone so bad in l. A. And long beach, the pma ordered no unloading of ships at night until things clear out. The pma said dock workers intentionally provide half the normal labor. Dock workers say the op. Its refusing. I can tell you as a matter of fact the ilw stands ready to work any vessel called into this port. Reporter the problem is that once those vessels are unloaded you need more crews to move containers on to trucks. Were getting less than half of what we need to operate the facilities today and those are working at a less than normal pace. Reporter to help relieve congestion and get more unloaded the port of long beach offers an empty lot capable of Holding Thousands of containers. But whats the point, not to find more storage but to get the cargo moved out of here completely. This is literally an international incident. Reporter stuck in the middle is john dimsky one of the largest exporters of oranges. He would like to get them to china but delays are rotting fruit. We have a huge mess. Customers are upset and want to pay the fruit that was lost. Reporter the fear is there will be another lockout like the tenday action crippled west coast ports in 2002. The rumors are flying around this port around these docks. And that gets to be stressful for the men and women of the waterfront. Reporter but progress on a new contract appears to be slow as the traffic here. Forreport. Thats really a terrible situation. Lets hope they resolve it quickly. That will do it for nightly Business Report tonight. Im sue herera. Thanks for watching. Thanks from me as well. Im tyler mathisen. Have a great evening everybody. And we hope to see you right back here tomorrow night announcer the following kqed production was produced in high definition. Calories, calories, calories wow, it rocked my world it just kind of reminded me of boot camp. I dont know what you had but what i had was great. It almost felt like Country Club Food to me. Dont touch. Its hot i gotta tell you, you people are getting me all e

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