Hiltons ipo, the second biggest offering this year. And facebook is joining the big boys club. The s p taps the newest member of the s p 500. Display youre watching Worldwide Exchange, bringing you Business News from around the globe. Its thursday, the 12th of december. Youre watching Worldwide Exchange and its good to talk. Well, not always. Coming up on the show a little bit later, 10 40, youve got to tune in as we talk to a car pooling company who puts commuters together based on how much they want to chat. How that works out, i have no idea, but well find out. Stocks in the u. S. Have had their worst day in more than a month ahead of next weeks fed meeting. Are we at a Tipping Point . Has santa disappeared . Well be over in boston for a view on what happens next at 11 30 cet. Ten minutes later, we take you for an interview with michelin, north americas ceo, pete sellick. Hilton worldwide is making its debut during 2013. But first, russian president Vladimir Putin is currently delivering his russian state of address. So far, putin says he sees no reason to abandon the spending he made last year. Hes also blamed the economic downturn on domestic causes. Joining us for the first part of the program today, charlie morris. Also with us is melenko, emerging markets economist at capital economics. Charlie, welcome. Nice to see you. Is putin right to say that despite the downturn, we shouldnt revise economic priorities or is he wrong . Well, its an interesting question because its russia. Its like the economy has slowed for reasons, it seems spending more is not going to solve the situation. But at the same time, zasz the fiscal policy would be completely impotent. There are ways he can use his policy to help the economy pick up. But it could be much, much more difficult than when the government and the economy helped. Its going to be much, much more difficult this time around. The economics reports, down to 2. 5 from an original 4 mark. Are they dont that to put pressure on other parts of the government . And what sort of reforms are necessary . I think its a combination. On one hand, you have the fed and the economy wants to draw attention to the fed that the economy has slowed. Its not going to anytime soon. At the same time, i think its a growing acknowledgement within government circles that we are now to get used to slow growth in russia. And aside from the concerns, its because the economy is there. Its going to be much more difficult this time around and if you look at that, investment is very, very weak. So what you need to do to this investment and website the Business Environment and the things we need to do to improve that. The problem is breaking through that wall. When they succeed. It seems me that thats really the government of the nation, isnt it . What recommendations would you make to the policymakers . Well, youre exactly right. Russia does have a great potential. The only limitation is that the environment is so difficult. So you need to look at things like investment. Thats whyvestors are so weak. Structuring protection for investors, property rights. So to make the investments more to encourage businesses and companies to invest. And do you feel theyre going in the right direction . Its difficult to say. On the other hand, of course, its yet to be seen whether theyre going to do something about it. Weve seen this in the past when the government says, yes, we need to change things, we need to structure property rights. So it is yet to be seen whether this is going to happen the. Just on this side, the president intends to sign an eu deal. President putin said he hopes ukraine finds a political solution to the Current Crisis in the country. And weve heard from mr. Azaroff that ukraine will be in the next negotiations. They are negotiate with putin, as well. Its important to get that information. I think the key is nobody really knows whats going to happen because ukraine is in a difficult position. The economy is very weak. They have a very large growing deficit. They need to do something soon, otherwise you would sign a joint eu russian deal, wouldnt you . The eu doesnt want it and russia doesnt want it. Difficult spot. Rock and a hard place. Thank you very much. It was nice to see you, joining us from capital economics. Now, a fight has erupted in georgias parliament this after lawmakers were urged to adopt a resolution in support of ukraines opposition. A member of the party stood up forcefully from his seat and kicking the other member of parliament in the legs. A violent brawl ensued. Its not quite like the house of parliament, charlie. Yes. Its very different than here. Okay. Thats democracy for you in some parts of the world. Right. Where are we with Global Equities . We have an hour and seven minutes into the trading day. Take a look at this hot of the heat map. You can see we are weighed below the flat line. In fact, decliners outpacing advancers here by a ratio over 8 to 1 on the Dow Jones Stoxx 600. Yesterday the ftse was down 15 points. We had the biggest onemonth drop in equities, as well. The ftse at the moment, down 0. 4 . Same with the xetra dax. The cac 40 fairly flat. Fortum selling a power grid to a consortium of investors, the price, 2. 5 billion. Metro shares are higher in frankfurt, up 3. 13 . It said its aiming for significant improvement in profitability, as well. Ribs down 1. 1 . This time to settle transactions with iran, sudan, burma and cuba. And we talked about peugeot. Stock down 7. 6 . One of the worst performers in europe. Stephane is in to tell us why. Hi, stephane. Hey, ross. We have three announcements from puto citron. The first one is a profit warning. Theyre going to take a charge of 1. 1 billion euros because of the negative currently effects in russia on latin america. Second announcement is regarding the existing partnership with gm and peugeot have decided to scale down their alliance in order to make room for future partnerships. Theyve decided to disrupt them together. Although they will continue the two existing projects. As a result, the synergy results have been revised to prepare for a target of 2 billion. And last but not least, peugeot is concerned that its negotiations with a chinese carmaker, including capital hike, that should lift the share price. But theres a question mark about the price of the operation. Peugeot will probably launch a Capital Increase of 3. 5 billion euros. And according to reuters, the price should be below 7 euros per share, which is significantly lower than the lowsing price yesterday, about 40 lower. Thats a reason why we have such a negative reaction on the share price. Profit warning, a deal with General Motors and still a question about whats going on with dongfeng. Stephane, thank you very much. Tenyear treasury yields, 2. 849 . Well see what happens with that. A big auction on the 30year. Euro dollar, still around 1. 3781. Were not far away from the 1. 3830 high of the year on euro dollar. Dollar yen, back below 103. The recent month high is around 103. 40. And sterling, just still on this 1. 64 mark, as well. Just off the twoyear high around 1. 6440. Thats where we are in europe. Only one person to bring in right now, here is sixuan. Thank you, ross. The shanghai composite ended just a tad lower and the spike in november social financing raising heightening concerns. And the china export outperformed today on reports that beijing is making plans to lift restrictions of refinancing for these tech startups. And do know that the index is up by about 80 so far this year. While hong kong markets slipped by 0. 5 to a poor weak flow due to weakness in financial stocks. But a very different story for two pharmaceutical groups, both priced their shares at the bottom of the range and shares still down by about 6 and 19 respectively from their issued price. Elsewhere, the nikkei 225 lost 1. 11 today, dragged lower by future selling, while the dollar yen was trading about 102. 50 in asian trading. South koreas kospi hit a threemonth low down by 0. 5 . Australias asx 200 lost 0. 5 despite november jobs data. The u. S. Was seen as paving the way for an early fed taper. Thats where australia metals and gold miners tumbled in todays trade. Down by 4. 3 and bhp billiton lower by 1. 7 . Thanks for that, sixuan. Catch you a bit later. We talked about a tax bill earlier this week which had gone from 340 million to 3. 4 billion for nokia. Back to the uk, royal bank of scotland has agreed to pay 1 million to settle u. S. Probes into illegal transactions with iran, sudan, burma and cuba. Rbs shares today, lloyds 20 odd million, as well, for poor selling. Meanwhile, the coop group has appointed paul myners to the board. And helia is with us in the studio to talk about that. I was shocked at how much lord myners is asking to do this job. I know. Its a big paycheck for him, a whole one pound. Relief. Im not sure how hes going to invest it. A savings account. It will sit along the 30 odd million that hes already earned famously. He was citi minister, he was very critical of ethics through the Banking Industry throughout the crisis. And he left the government to say that he was actually leading spiritual development, he was going to study theology, going to find god. So out with one methodist minister and in with a former citi manager who did find god. I think it is a bit of good news today. Lord myners is going to lead this review into governance. Actually, there is a new Management Team in place. And it is problem is one of perception rather than he said the hold isnt that big financially. So they just need to make sure savers keep using it, right . Yes. Theyre lucky in that most of us are incredibly sticky bank account users. Even when things go wrong, very few of us knew. But i think theres been a lot of reputational damage and theyre going to have to convince people to stay with the coop banks. But hopefully this is the beginning of a new chapter. Yes. Until we get all the results and all the reviews. Also, you mentioned numbers. Its not clear that coop bank is heading for a very easy 2014. We all have to pay our christmas bills in 2014. For now, helia, thank you. China mobile is beginning to take preorders. But a deal between the company hasnt yet been announced. What on earth is going on . Well head over to beijing to find out. [ male announcer ] the new new york is open. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. You can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping wi. Unfreezing nokias assets through india, its come with a demand. Theyve been requested to pay around 160 million. The indian court says nokia would be jointly lible for its taxes that are due. Nokia is down 1. 25 at the moment. To china and china mobile has apparently started taking preorders. Apples iphone 5s on its website. But as yet, a deal between the carrier and the smartphonemaker hasnt been announced. After being contacted by cnbc, the website offerings has mysteriously changed. Eunice is with us in beijing. Does anybody think is deal is being discussed, being negotiated . Weve made the calles and youve done your best. What is going on with this website today . I know, ross, it is very, very curious that china mobile on its website said its taking preorders for iphone 5ss today. Customers were able to get online, get a deal on data now that china mobile has a fast speed 4g service. Also on the website itself, there are pictures of golden apple, pictures of what appears to be iphone 5ss and what was interesting was the link. Because the website link actually specifically says iphone 5s. Now, we contacted the company, china mobile, and after we talked to them, the link changed. It changed to a generic term. So the company itself says officially theyre still in negotiations with apple, but a deal is not done. Its a very curious situation, ross. Yes. So look, i mean, what do we think is going to happen, eunice . What do your analysts say . I mean, is a deal a certainty or how much of a ratings certainty is it . I think its very close. Thats what a lot of people have been telling me. A deal is going to happen. All the signs are pointing in that direction. And this particular situation with the website is the latest sign. Weve had some other we had another situation in shanghai where we saw one of the websites for china mobile. We are talking about preorders for the iphone as of today. And because of all of this chatter, some believe that a deal between apple and china mobile is very close coming. The question is how many sales for apple will be generated once this deal is done. So far today from the preorders, its looking pretty good. Already, there are over 14,000 preorders. Thats okay. It would be deeply disappointing if we dont get something. Eunice, thats about the clearest shot ive ever seen behind you. I mean, i can actually see something in the background. No smog today. I know. Its miracle of miracles. Its finally looking quite crisp. I was checking the beijing air monitor and it said that its double the amount that the w. H. O. Pollution that the w. H. O. Actually not recommends, but says is a limit for most people. Most maces would be upset at that level of pollution, but here in beijing, its like blue skies, sort of. Thanks for that, eunice. The iphone market share in china has soared. Head to cnbc. Com for more on how apple could its market share in mainland china. Follow us on twitter, as well. As the Holiday Season continues, one company which is expecting its busiest festive period, its long sharing service blah, blah car. The Company Expects to transport 1 Million People over the Holiday Season. But the business pairs drivers and passengers based on how talkative they are or arent, as the case may be, im get guessing. Frederick manuella joins us at 10 40 cet. So we want to know what drives you mad . Do you get enranled with a chatty back seat driver or is there Something Else that makes you want to slam on the brakes . Meanwhile, its down over 25 this year and some believe gold could dip further in 2014. What is your view now . Well, the bull market ended in 201112. There was a very clear top in late 11 in dollars. It was a sort of double top. It happened again the following year. Were now in a very clear bear market. We continue to believe that gold is going down. I think the last five gold bond markets, the average correction is 48 . So that takes us down to the 950,000 level quite easily. But the average time is about two years, just a little over two years. In fact, late next year, late 2014, 1,000 is approximately the time fresh target. Is this sort of evidence to it up . Last night, we saw the first big outflow. Actually, the gold is seeing many institutional rather than priorityist investors selling. It is by working that slowly they start to sell. So i think etf outflows are very important. Physical demand on the coincide is down significantly. And yes, china is very strong. But the shanghai premium is interesting to watch there. The difference is the price of shanghai and here is very low. And its finished 30 or so. Thats usually a shortterm. Maybe some people who were buying global are selling. And switching over to bitcoin. I dont know. What do you think of bitcoin . If you think about bitcoi bitcoibitcoin you think about bitcoin in the market. Gold is not money. The currency is designed to depreciate. Gold is not designed to depreciate. There is bitcoin, for that matter. It has more in gold than anything else you can compare it to. Its a very interesting space. If you mention the genetic engineers created a new species and its in the amazon jungle, this species has in no time thrived and become the king of the jungle and its there to stay. Really . I would expect a painful readjustment at some point. Im not going to get into the price because i couldnt have a clue. But i think the concept is a done deal. Charlie, stick around. More to come from you. Still to come, no change from the snb. Well discuss it against currency markets in just a few moments. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. Announce headlines from around the globe, russian president Vladimir Putin insists hell not pull back on Spending Plans despite a Bleak Outlook for the economy. An Indian Court Order has ordered nokia to pay a 360 million down payment in response to a tax bill. Peugeot citron has been downgraded from the Gm Partnership and plans for a Capital Increase all weighing on investors. Hilton worldwide returns as a Public Company after pricing its ipo, the second biggest offering this year. European equities are down. We had the worst day for months for u. S. Equities last night. The ftse 1100 down 0. 5 . The xetra dax down 0. 3 . Cac 40 is fairly flat and the ftse mib is down 0. 2 . The tenyear auctions yesterday, treasury down 2. 84 . And on the currency markets, euro dollar, not far away from the highs of the year at the moment at around 1. 3774. The high for the year just around 1. 3830. At the same time, the Swiss National bank has decided to keep its cap on its currency at 1 euro 20 francs. It maintains rates near zero as analysts expecteded. Joining us, paul robson. No surprise from the snp. How long do you think theyll have to keep this peg in place for . Well, i think while growth in the euro area remains weaker and its all about nominal growth and the problems about repaying and servicing debt in the periphery and also in the semi core, theres always renews in switzerland. I think from the snbs point of view, they would have hoped swiss would be higher by now. The fact that it isnt, i think, means that its very watchful and very not wanting to move away for the foreseeable future. What does this tell us, bearing in mind that euro youre not far away from the year high against