Either in northeastern u. S. And prepare for emergency. We have several hundred National Guard and will be stationed in new york city and long island area primarily. Welcome to countdown. I am mark barton. I am anna edwards. I am manus cranny. A warm welcome. We will be speaking to the new ceo following the companys firstquarter results breaking right now. We will be speaking to the philips ceo for his first interview of the morning. And their earnings are coming fast. Just into the bloomberg terminal. First quarter matched analysts estimates. Upset by gains in other divisions. Profit from socalled industrial operations fail 4. 1 to four point 8 billion euros and that matched the average estimate of six analysts. While some divisions provide at the live performance, Health Care Needs to step up is efforts and need a more comprehensive concept to return to historical margins longerterm. Kaiser has been expanding fossil fuel extraction and Energy Supply operations since taking the reins at siemens in august 2013. Lets get more details on the results which have just crossed at the bloomberg terminal. Hans nichols is in berlin. What stands out . Good old morning. Health care units had a flight deck and the Health Care Units had a slight decline but most see an increase. What we see and we expected this to get a sense of how costly the integration of dresserrand that this is a box for rollsroyce, heavy in the u. S. On shell and oil how much it will cost to integrate. When it came out, they paid 6. 8 billion euros. It looks like preliminary numbers. Through the cost of profitability the margins are a little lower and dresserrand. The decline of the oil price when they bought dresserrand in september since that time, oil is down 48 . An indication of how much that big bet may not be paying off and as we see some continued trouble in their Health Care Unit. Mark . We had joe kaiser saying he had resampled his board. What is behind that . It looks like they want to have more performance out of the Health Care Unit but also they want to give that Health Care Unit greater independence. We have seen them do this in the past and is a further step to make it i do know what to say right for p rechecking above more independent. For cherry picking but more independent. Spinning that off. When we continue to dig down in the numbers who want to look at profitability and it looks i they are confirming third 20 15 outlook has been for 15 profitability. In terms of margin and revenue, theyre expecting margins to be 10 11 in line with what we expect. Not a numbers, not great numbers. We see what extent it is costing and how lower revenue from that division and overall in the Energy Business may be difficult. Thanks, hans. Hans nichols and berlin. The breaking news doesnt end there. Numbers from phillips. Very dramatic. Q1 numbers coming from phillips which is the lighting and Health Care Business of monks other things. No surprise the broader number before tax of seven hundred 43 million and line of what analysts were expecting. We heard all about the kind of guidance, a little bit ahead of the estimate of 735 million for the Fourth Quarter. Away from the numbers lets look forward at the company said the ceo is saying 2014 has been a setback in their performance trajectory. They are one percentage off of their target of 2016. One percentage off of achieving their sales growth. They go on to stress that the company things the longterm potential is there to recruit. Recoup. We will get to the bottom of that 1 tracking away from target means for the business and we will talk about foreignexchange exposure, the future of Health Care Business and all of that when we speak to the ceo of philips. That is coming up in a few minutes. And three. Lets go for the third in a row. Novartis. One of the biggest stocks on the smi. They are raising the dividend by 6 . The top line news from novartis. A dividend of 2. 6 swiss francs. Their headline is a stable growth story. And portfolio transformation. The numbers that validate the statements. They said they have seen a solid Margin Expansion and margins rose by 1. 2 . He margin markets, emerging markets, pricing pressures and the u. S. From companies who buy the drugs from the drugmakers. Lets take you through the core earnings. Did he beat . Did it beat . In terms of core operating, it was a ministry it dropped to it came in at 3. 2 billion. The market was looking for something higher. Guidance the year ahead. They were doing the adjustments and some other businesses. Something over the portfolio over at novartis and that completed this month. The guidance for this year, core operating income for 2015. Those are the headlines coming from novartis. Bloomberg intelligence said it is the drug company with one of the deepest pockets. Their pockets are full of drugs at stage three. We will discuss all of that with the ceo a little bit later joe jimenez. Junk is russias Credit Rating. Russias expert right and chilcote is here. It was well flat. It was. You look at what happened with the ruble yesterday and thats extraordinary. It was not all priced in. Quite extraordinary. Concerns about sanctions and oil and by the end of the day the whole country was junk and the currency falls. I think we have to think about the ruble yesterday reached 70 two the dollar for a moment there. And the middle of december, we reached 80 rubles to the dollar. After that, we saw the ruble stabilize. And then, the narrative has been some of the worst of the crisis is behind us at least when it comes to the currency. And now we have a new reality of, the ruble stabilize a little bit since it went down to 70 yesterday and now 67, 68. Not a good place to be. It will be more inflation next year. One other thing i would like to talk about is stocks also. Something that was so widely expect did did not appear to be price in there either is russias largest lender has more outlets than any other bank in the world. Its stock fell 13 . One of a handful of a russian stocks traded in the u. S. And a good way to gauge what might happen in the open of moscow. 13 down is extraordinary. Greece is saying the russian complex as well. What about the Foreign Ministers . They are meeting this week a you mentioned yesterday the ability or desire to raise sanction levels. That is right. The mitigating factor has been in alarm by some countries that the sanctions have already done quite a lot especially with the recognition it is coupled with what is going on with the oil price. I have not heard anyone really shedding any tears over the downgrade. We talked to friends frances finance ministers and they are more accommodating when it comes to russia. Yet, the finance minister pretty much blamed all of russias problems on russia. Have a listen. Russia is angry to difficult to be. Is responsible for the most part. His sanctions exist in russia because of admissible attitude in ukraine. I do not know of consequences russia will draw from the ratings cut but if they draw discussion that would be a good thing. I do not think anybody can take what what happened on thursday at the meeting. What i will point out is with had this conversation before sanctions and sanctions. Economic sanctions would be a pretty big step. Expanding the list at some of the new countries of talked about it to include more of the separatist and more russian individuals it seems like that would be a pretty good facesaving maneuver for the eu after this point. They have to do something. And the oil price . Not helpful. Brent is down. Wti is down. We had a guest saying that theres no investment in oil oil could go to 200. One of those random comments. I tweeted after that. And the gas price could also go to 25. You know, inventory in the u. S. Is what you have to watch really high. Highest since 1982. We will get the number tomorrow. Analysts think inventory in the u. S. Increase and theres a lot of oil. Thank you. We will speak to the ravens company that rated russia to junk. Hea of s p to talk about russiad and also greece and what would seem and as at 7 40 a. M. U. S. Time u. K. Time. Chris the first full day in office for greeces new leaders. Alexis tsipras calls antiausterity within hours of his victory. None of the members of the eurozone are calculating their response to the victory. For more, lets get to athens predict guy johnson. Standing by. How is it looking . It is going to be an interesting few days i suspect. It was fascinating to watch mr. Tsipras sworn in. No bible involved. He had to explain to the archbishop why he was not going to do it. That set an interesting town, rather unorthodox tone quite literally for the new greek Prime Minister. She has a big day ahead of him and we expect a cabinet to be announced. We were watching last night for the First Response is and we heard from sapin talking about his view from paris. And with had mr. Juncker inviting him to brussels and others have invited him to paris as well. Both of those gentlemen giving a fairly warm welcome to the arrival of mr. Tsipras. And mr. Hollande talking about not only russia but greece. He said after the election, france a europe need to treat greece with a more respectful tone. There is a lot of suffering in greece. This is the suffering they expressed. It is not a defiance against the eurozone because the new government has won majority by saying they wish to stay in the eurozone. It is not against the euro but to find growth again. They want to remain in the eurozone and it will be tested over the next few days as we begin to get into the process of negotiations. Time is incredibly short here to get a more money into the Greek Economy in terms of the bailout funds available. They have been on hold since september. The process needs to Gain Momentum very quickly. While the tone from brussels sounds positive and the town from paris sounds positive, the northern capital, that tone is different and greece needs to deliver what it promised and that is the message that needs to be heard loud and clear. Again, we heard from another or of capital representatives a number of capital representatives yesterday. The belgian minister making it clear that is what needs to happen now. I expect from them as they will work with us to strengthen the Greek Economy which is crucial, of course. We fully understand a lot of work has to be done and we stand ready to support it down. Membership of the euro means you comply to all we have agreed with. On a databases on that basis that was not the minister. Lets not worry. We start to get the cabinets announced. A finance minister. Mr. Tsipras has indicated he will go with 4 super ministries and dismantles on the architecture here in terms of the way the government has been structured. 4 main ministries and the one people want to know is who will be finance minister . Atoms get that, we will bring it to you. Thank you for that round up. Chris a quick look at some of the other stories we are following. A turnaround plan and microsoft. Sales in Software Licensing is it down. Revenue fell to 10 billion. Curbed by flops in china and japan and one of the you stronger u. S. Dollar. A strong storm of the east coast of the u. S. And is expected to dont to be the snow and dump 2 feet of snow in the u. S. In new york. Ok, those are your main headlines and stories of the day. Join us on twitter. What are your thoughts the snowstorm in new york . I am manuscranny. We was big to be chief executive of phillips we will speak to the chief executive of phillips and stay tuned for that. Welcome to countdown. Lets talk to phillips about their numbers. We will speak to the ceo, frans van houten. Thank you for joining us. How is the performance of the business doing . You are sad and you are 1 behind achieving yourselves growth you said it you are 1 behind achieving your sales growth, tell us a more. Our 2014 results in my view were disappointing. We had internal issues and also the outside world where the growth is slowing down in china and russia and emerging markets was a lower currency. And we are going to unprecedented transformation of philips separating out the Lighting Division and making it a self standing company. That is a lot of movement. It leads us to wanting to inform our shareholders we are currently tracking above one percentage point below our growth rate crawford ability. Profitability. We look at the future very positively. Yesterday obama said he want to go to a Health Care System that is much more focused on quality and output at a lower cost. That is exactly our strategy. We are looked where focusing on partnering with hospitals. We want another six big deals in the Fourth Quarter. Those are the highlights. We are on the right path but we have a lot of work to do as we move forward in creating 2 Standalone Companies with a great future. Lets talk about the medical part. Some analysts said you will be measured to deliver to hospitals. What defines success for you and striking some of the longterm deals with hospitals . Obviously the more you can sign up, the better it is. You will see consolidation in the hospital market. Hospitals struggle to drive productivity in this complex world of more patients, in an aging population. What we offer to hospitals is to actually have definitive diagnoses help with minimally invasive treatment where you do not to cut open the patient and why we want to acquire the smart catheters. And help transition patients out of expensive hospital beds and to their homes where they can be supported through tailored health. And we are the Market Leader as well as home care. It is a great strategy. I think we are really on the move to become strong in that area. In 2015 with a lot to do to improve quality in separate the company and offset some of the headwinds such as in russia and other markets which are turbulent. You talked about selling the lighting business. Dutch newspapers were reporting that kkr may make a joint bid. Can you confirm what bids you have had or is an ipo in your desired path . Where there is a rumor, there is a sign of interest and that is always good. I noted that. There is some confusion and the market but caused we are running a process to standalone our automotive business. That is the component side of lighting and that process is going well. You several interests and expect to close a deal in the first half of 2015. Separately, we said we will make phillips Lighting Solutions the Application Side of lighting, standalone and take 1218 months to do that. As you can imagine, lighting was the start of phillips and theres a lot of relationships inside of the companies that we have to undo. As we progress with the separation of phillips Lighting Solutions later in the year we will come with a Market Update and that would be the right time to comment on ipo versus other ways of giving lighting access to capital markets. I am happy to see people are already lining up to express their statements of interest. Has anybody bid for Lighting Solutions . No, no, this is just people gossiping while this is a great business and i agree. [laughter] you mention some the headwinds. Tell me about the european part of the business. Last time we taught you said you thought we needed more integration across the European Union. Do you worry about what we see in greece politically and what that might do to europe . I was in davos last week and i could speak with many politicians and economists and other folks and colleagues from other businesses and i think the share of worry around the long list a geopolitical issues whether russia or the middle east or the vote in greece are upcoming vote in the u k, the world is not short of challenges. We should keep our i on the prize. Europe is 500 Million People and should really close but to create one very strong region. Like the United States and china is. And that is the way forward and less focus on making europe more competitive and continue with further integration. In the contest it is good what mario draghi has done to build a stronger europe and we need to put and lets make this work rather than standing there whining on the sideline. Does European Business worry about grexit and greece leaving the eurozone . In you know, we can worry about a lot of things but we should focus on driving the business. May an upside is that i can share is that the orders for health care, we are edging up in the Fourth Quarter. Some European Countries have started to buy a again. Ok. A grexit as not the forefront of my. Thank you very much. The phillips ceo. You are watching countdown. Lets check on the Current Exchange market. Dollar strength. Rank of america and citigroup are saying the European Central bank and bank of japan to will ease Monetary Policy and make a late the fed and may allay the fee. Fed. We have a survey. Tomorrow, you get a statement. 6 said july. 30 said september. Year end forecast for the dollar, that 10 year high on the dollar. Your end forecast is rising. Year end forecast is just below 97 for the dollar index. In the middle of the month. The trend is your friend as they say. The dollar is up. Also sterling is going to be very much and focus. Dollars sterling as we go to the gdp, the flashing number. The health of the u. K. Economy a looking for a number of 0. 6 . A statement yesterday that productivity is rising. Inflation expectations coming on mored. A nice little bit of lift through the air. As ryan was saying, you should keep an eye on the ruvell. Liquidity comes in. What you have is the dollar up and the