The only performing as in in the stocksector today is oil , what a move weve had in oil in the last hour, as speculation firstly arrives that there might he and opec, nonopec meeting, and of course it is denied by various opec delegates, showing the skittishness of the market. Yesterday we talked about europes secondbiggest drug maker. It derived more of its earnings from companies that high high that have countries with high levies. Europes secondbiggest clothing retailer, also down by 5 . Weve had unusually mild Winter Weather here in europe. That has prompted discounts as well. The company said it will get no wrists bite from the strong dollar in the first quarter. From the strong dollar in the first quarter. Johnnie walker whiskey, smirnoff, captain morgan rum, you know this Company Betty what are you talking about . Mark you cant kid a kidder. Basically earning speed, but they underwhelmed analysts. Its all happening, and earnings dictating the move of the stoxx 600 today. Betty also in the u. K. There were economic numbers that showed the economy has got some good momentum behind it, right . Mark we, the u. K. I am the u. K. We grew by 4 . It is a very unbalanced company, principally the driving factor its services. We have sluggish manufacturing as well. They are going to push back any chances of an eminent hike in interest rates. The big risk are the upcoming referendum, of course. It could hit employment. Unemployment has fallen to its lowest level in a decade. We have real wage growth, consumers are benefiting from all those factors varied the economy is in pretty good shape as we headed into 2016. Betty we are about 90 minutes into our trading session here and we are mixed right now. Bloombergs julie hyman has the latest on how we are trading here. Julie the big data point in the morning was your level goods. We are looking at a positive picture for u. S. Stocks right now. We been vacillating between gains and losses, particularly poor the for the s p and dow. You will see bouncing around between gains and losses. We have got Energy Stocks and tech higher. We can thank facebook for that. Energy shares higher, health care lower. Drag in terms of groups on the s p 500. Oil prices still hanging onto gains. If you look at oil prices, were seeing them come off of their high but still hanging onto the gains of the session. Coming off the highs but still gaining by about 3 , betty. Betty where Energy Stocks . Julie health care, the drag theyre having to do with a couple of Earnings Reports. That company gave a firstquarter profit that trailed analysts estimates, talking about the effect of currencies and that could persist. In addition, we have for techs. Vertex. We are seeing this decline spread to other biotechnology pharmaceutical stocks in the health care as well, regeneron, mellon caught, all seeing declines today. Betty lets check in with courtney donohoe. Courtney good morning. The u. S. s Health Agency today said there could be 4 million thes of the zika virus in u. S. Today. The World Health Organization will meet on monday to decide if the disease causes a global emergency. In 23 been found countries. Donald trump and fox news are standing their ground, which means tonights president ial debate on fox will go on without trump. The accused fox anchor megyn kelly he accused fox anchor megyn kelly of bias. Respect will be live from des moines, iowa. 5 00 p. M. New york time. The spotlight on the flint water crisis shifts to lawmakers in michigan and washington today. The state legislature is expected to approve 20 million or more to address the lead contamination problem. In oregon, the jailed leader of that armed group has urged his followers to leave the federal wildlife refuge they have been occupying. The other bring leaders other bring leaders were arrested tuesday. Only a few members of the group remain inside the refuge. 70 years agoay, today, the challenger exploded. Memorials near houston and Arlington National cemetery. News 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. Im courtney donohoe. Betty . Betty american automaker for delivering a record annual to its all thanks aluminum body pickup truck. Suvs a really popular. Welcome back to Bloomberg Markets live from london and new york. This is the european close. Bloombergfor the business flash, a look at the news. T is this arecompanys pretax profits more than 8 in the Fourth Quarter. H m gets about 80 from asia, where clothing prices are often linked to the dollar. Takataef executive of may designed to implicate shareholders unhappy with the way he handled the massive airbag recall. That person says the resignation is the only way to gain the support of japanese automakers and lenders to may bailout the company. French carmaker and its a rainy and partner will spend 435 million to upgrade its factory in tehran. Thats your business flash for this hour. Shall we talk cars . Betty we shall indeed. You wanted to talk liquor before. Today,good day for ford the company posting a record profit of 10. 8 billion, the most in the companys 111 year history. Ford seems to be in the driver seat right now. But analysts are concerned that earnings may have. Lets get to matt miller and the ford cfo, bob shanks. Matt thanks for joining us. Let me ask about the numbers that ready just a betty just gave. Yet the stock is down. Why do you think after beating on every metric for the quarter and the year, the market chooses to sell the stock . Bob when i was a kid my mom used to tell me that the lord works in mysterious ways. I did not realize she was talking about the stock market rat. Growing business, its profitable, margins are expanding, the risk row file is improving. We added onto that in january. Believe thato ultimately through the big macro Market Sentiment there watching over equities around the world, people appreciate and realize the value that ford is delivering. Stock is down 18 in this month alone. Does it hurt your ability to do business at all . Or can you continue to meet your goals for 2016 regardless . Bob it does not hurt the operating performance of the business. Its disappointing. Im sure investors are confused as it is delivering all these great results. Its a whole sector and many other companies outside the sector. In terms of the view that somehow we are peaking, we are at very high levels of operating performance and industry in the u. S. We dont see the industry declining a time soon. When you think about the opportunities for ford, we delivered on that in the Fourth Quarter. Its around the improving Business Performance outside of north america. Thats the big opportunity for us. We delivered on that in the Fourth Quarter and in the full year. record asiapacific results. You are back to profitability in europe. At you are not forecasting climb in profit or a boost in margins for the u. S. You could see singledigit margins in 2016 at home. Why is that, since you are selling so many of these highmargin vehicles . North American Business has been operating on what i would consider to be benchmark levels of those absolute profitability and margins for the past number of years. In three of the last four years, our margin was over 10 rate we delivered 10. 2 in 2015, and our guidance for 2016 is to sustain that performance in terms of traffic ability and to be at 9. 5 or potentially higher in 2016. We are about in the same space and we see the industry in the u. S. About the same as last year. We dont see the u. S. Business as materially changing as we go from 2015 and 2016. Very strong. Matt you did say on the call that you receive less benefit from rising sales in 2016, and the marketing is offering less in terms of tailwinds. What did you mean by those two things . When you look at the rise of the u. S. Industry sales 2014, it was up quite sharply. As i just mentioned, we think it will be about the same, maybe higher. You think about our own business, in 2014 we have a very large and long an extended a complicated launch of the f150. 2015 we were largely pass that. We dont get the benefit of the year over year recovery from that that we had in 2015. It is those two factors that are changing our view in terms of the benefits we will get and what we call market factors. Matt when do you think we will start to see a benefit for your lincoln brand . When are we going to start to see that pay off with ford . B financially its going to be medium to longer term. This is not going to happen overnight great what were doing we are doing this methodically, relentlessly. We know what the factors are that will create a strong brand but also great products and extraordinary customer experience. We are already seeing benefits from that in terms of various metrics, such as customer satisfaction. U. S. D grow sales in the last year and we had over 10,000 units of sales in the first full year, the fastest at any new premium brand going into china to ever achieve that metric. We are on a really good track. It will be there in the medium to longer term in terms of the benefits. Bob it is an emerging market great it is a big company that is transitioning largely based investment in infrastructure to one that is more consumeroriented. It will be bumpy, and clearly we have seen that. But we did see last year was a pretty robust industry. It is in part by incentives that the government provides, particularly on purchase taxes. In 2016, that will continue. I think we will see an industry that will probably be as large, if not larger by the time the year is over. Matt you are going to run the gt this weekend at daytona. Any predictions . im pretty bad forecasting, unfortunately. Its a fabulous product, and guys are really excited about it. Certainly the consumer interest in that for those who can afford that supercar is extraordinary. Matt have you gotten into one . Bob no. Im the cfo. Matt you need to ask your boss for at least a run around the track. Bob lets do it together. Matt i will hold you to that. Bob shanks, cfo of ford. Daytona has a 24 hour race in the u. K. It is very important to motorsports and they will race the ford gt this weekend. Mark can i be in the passenger seat when you try the ford gt . Matt only bob and i will fit. Its a twoseater. Mark you can put me in the boot. We will, big news hear from the cfo about the banks next big move. Betty youre watching the european close. There is one problem area that people are really turning their focus on. The company is losing ground in and in turn,nesses the firm is making big changes to the bonus structure. The Deutsche Bank ceo sat down with Bloomberg Television and discussed just that. Quarters three and four of 2015 in both these areas have not been great. In contrast to the first half of the year, where the businesses performed quite well. Clearly there will be some answer, which probably has cause the drop innt activity. We have admittedly also operated in a market environment. What we are doing now is we recognize we need to reinvest into our equities business on the research side. Secondly, we have to strengthen our corporate finance. Weve made some investment as in hired some additional people. And we will keep trying to look for some additional selective addons to the team. Are you losing people in those areas . Generators in those people, because of the outlook . John was pretty clear on bonuses. Is that having a Ripple Effect into the fact that people will be stepping away . In a way i would say its too early to tell. This is something that is still yet to happen. The message is clear, and yes we have lost some people, and as always some of them, you regret that you lose some of them. We have communicated, we overall need to reduce staff. Look, we think we will have a big differentiation sense of how we play out the bonus side. Those people that we really want to keep will be paid at terms, and others probably will have to accept a much lower and sometimes zero bonus. Mark the cfo of Deutsche Bank speaking with us. Theworrying is it that chief executive is losing market share in businesses that he wants to expand . Reporter one quarter trend does is make, but the big issue how these crimes pivot away or reduces focus on capital intensive super costly debt trading business, when at the same time what he would like to pivot to, the cash equities ink, the equity trading general, but large parts of the business such as sale of equity and bonds for clients, those areas are showing some of the weakest trends. The kay, the heart of these challenges is that shift, being crippled by these market developments. Betty how is the bonus season going to look for Deutsche Bank . Ter probably not so good. We dont have the exact numbers yet, but we did hear it clearly that we will see a decline in bonuses from a year earlier, then we will see Deutsche Bank paying not as competitively as International Peers for this specific year. And further, we have the board saying they will not be taking bonuses for last year among the top executives. As you heard also from mark now, that will extend to some underperformance in the bank as well. Its not going to be a pretty much for Deutsche Bank employees. Mark will the bank after raise capital because its financials strengthened at the end of last year . The core of people who say Deutsche Bank needs to raise capital is not going any quieter. Today he reiterated those two analysts and the press in frankfurt that he does not currently see any to raise capital. The big question there, the wildcard is whether they have to with u. S. Settlement regulators in the residential mortgagebacked securities scandal, is that comes along as expected and billions of dollars, you cant rule it out. Betty thank you very much. We will be back. Betty im betty liu with mark barton in london. They tried to come off the lows, right . Mark who would have thought a more dovish fed would have been overshadowed by weak earnings, the oil prices pushed up oil companies, miners also rose, those were the only gaining groups. But it was earnings that dominated todays session. Inopes biggest drugmaker the news today, down by 3. 7 . Shares falling the most since august, europes biggest drugmaker reported weaker than antiicpated profit. Duringcipated profit really quickly, i want to show you shares of h m. Shares almost down by 5 . The Dollar Strength adding to purchasing, because we had this unusually mild Winter Weather which caused it to add on a few discounts. A lot of earnings disappointing. Betty not disappointing was the u. K. Economy at the end of last year, right . Mark it rose for the 12th consecutive quarter. What a run. Economy,opsided manufacturing sluggish exports, sluggish services is where all the growth is happening. The risks are still global. That is why we will not see a rate hike for a long time. The referendum is an upcoming risk as well. We are benefiting from prices, higher wages, and unemployment, which is at a decade low. Lets not scoff at 812 quarter of growth. Theres one chart i was looking at great it indicates the fear that we have in the markets. Eye on the fix index. According to Goldman Sachs, the average fix for this month is at 24, which they say is outside the red zone. If youre at 25 and above, the red zone essentially indicates that eventually we will see gross thomistic product in the i. E. Aat or negative, recession. We are so below that level. Even though it seems that weve had fear and there is all this recessionary concerns, we are not at that level yet according to Goldman Sachs. A big part of that volatility has been in that fear has been the plunge in oil prices, which has affected economies around the world, including russia. On energy for more than 40 of its budget and the countrys oil output is heading for a postsoviet record. Ryan, what happened here, and whether or not russia and opec will be meeting. He said russia would be open to meeting with opec in february, and it is possible they would discuss a 5 cut. Theres a lot of questions about exactly what he said, whether the reporter put words in his mouth, but roughly that was a thrust of what we heard out of st. Petersburg. That sent oil through the roof, then we heard opec say there is no meeting planned. If you look over the last couple of days, the russians have increasingly been talking about how maybe they would be prepared to talk to opec. The Energy Minister in opec met with the big oil producers. No decision made. But it is something we have been hearing a lot for. It all kicked off with the rocky saying heil minister thought the saudis were more prepared than ever before to discuss the cut with nonopec countries. Mark is russia really able to arabia in engineering some Oil Production cut . Not its probably feasible. As the price of oil has fallen, the russians have only ratcheted up their production. The second point is, russia gets very cold. Even if you wanted to turn off thetap, you might lose whole field. From a technical perspective, its difficult. Therussians, the saudis, venezuelans, the mexicans, they tried this november 2014. Meeting. The opec the russians came out and they said basically no cigar, we agree to watch prices. The russians and saudis do not trust one another. The russians think the saudis habit in for them. They want to steal their market share. They think theyre in cahoots with the United States to punish russia. They saysaudis do, were prepared to cut if other countries are prepared to do that with us. Some may say that the russian Energy Ministers comments today are a bit disingenuous. Mark the price of oil intraday went up 7. 5 . Now its up 2. 6 . Ryan volatility is extraordinary. Standard deviation is 7 . These are not big moves anymore, are they, which is extraordinary. It tells you theres not a whole lot for the oil market to move on right now. Yesterdays u. S. Oil inventories, they indicated the glut is only continuing. Ever since then, there has not been a whole l