Transcripts For CNBC Worldwide Exchange 20141218

And some data just came out on german business climate. The ifo german bit climate coming in at the estimate 104. 5. The number coming in at 105. 5. Slightly higher than what we saw in november and in line with estimates. The German Ifo Business sentiment came in at 105. 5. Why do we care about this . Germany, of course, is europes largest economy. Given its high exposure to russia, German Economy has been showing signs of weakness over the past couple of months. The recent zew survey did come in higher than expected indicating a improvement in Business Sentiment. Were looking at the euro slightly higher trading at 1. 2332. Lets bring in simon, who is joining us now to get your reaction to this german ifo number. Does this surprise you . We see this, the zew and the pmi data lately. I think mainly the main surprise is that theyre shrugging off the surprise coming out of europe. The most open economy, 35 export to gdp ratio. Thats a little bit of a surprise. And is this one reason, given the fact that germany does have that relationship with russia and given the western sanctions that have been imposed on russia right now, does that show that Business Sentiment at this point isnt being impacted as much as we would expect given the challenges that russia is facing right now . I would say that Business Sentiment is fragile at the moment. Both on the corporate sector and the private household sector. And i think we need to see how this develops over the next three months. Mr. Putins address when he did the interview a few weeks ago after the meeting, about 6 million germans are watching it. Were going to discuss the european markets over the next two hours, of course. European markets have been staging a little bit of a comeback. European markets steadily in the green. Another factor investors will be watching will be russia. The russian president is due to deliver his annual end of the year speech any moment now. Vladimir putin will field questions from the thousands of journalists who are attending. Marcus will be looking for any response, reaction from the residents and the standoff with the rest over ukraine. Geoff cutmore has been in moscow for the last two days and is standing by with what to expect. Of course, given the financial crisis or stress that russia is under, it will be interesting to see if putin is able to address the economic challenges. This event generally tends to be a Public Relations exercise. You always get the state of the nation address in the early days of december and that generally sets the policy tone. There wasnt a great deal that the markets could run with. Now we have this opportunity yet again for president putin to speak and the germans are gathered in the room and i guess were just waiting for the president to walk in here. Hopes are high that he will Say Something that is supportive of the ruble and the economy here in moscow. Weve seen a much more aggressive intervention in the currency markets over the last 24 hours by the finance ministry, the central bank, of course, and the Prime Ministers office. Theyve gone out to the major exporting companies and said to them, you need to also do your bit to the russian currency. This will be an unusual event in the sense that he will take direct and scripted questions from the International Mead a ya and local journalists. And i hope the journalists in the room do their job and do ask him if he can be more specific about support that the government and the president ial office could provide for the economy here in the light of these cripping sanctions that have limited Corporate Access to western financial markets. Theyll also be hoping that there might be something new on ukraine. The president still enjoys very high public Approval Ratings here for what hes done on the ukraine story. We may not like it in the west, and clearly, it has been a very, very painful episode in ukraines history over most of this year. But there is the possibly after kerry and lavrov met earlier this week that he might Say Something that leads us further down the road on the reduction of tensions and involves that ceasefire. So we are waited with bated breath to hear exactly what the president will say when he rolls into this press conference within the next few minutes. And, of course, russias reevent move to move the ruble and support the banks has been welcome by investors. But there is talk that russian president putin will perhaps review his cabinet and make changes medvedevs name has been thrown around. What are you hearing on that front . At different times, there have been moments when the president appears to have lost confidence in his Prime Minister. But in spite of that, we havent seen Prime Minister medvedev removed from office. There are those here on the ground who think there will have to be a scapegoat for this rapid decline weve seen in recent years. The question is who will it be . The finance minister . The Prime Minister himself . When it comes down to it, if you look at why the ruble has declined, it hasnt been any of their fault. Its fallen more or less in line with the decline that weve seen in the oil price. Given that the russian economy is so dependent on energy and the oil price, no surprises then were seeing the fall. We saw the ruble detach itself from the energy price. We saw volatility. My understanding was that big hike in Interest Rates was approved by the president ial office. So im not so sure that there will be a removal of any key cabinet position. Having said that, its always financial commentators foley to try to predict what the president of russia will say or do in this press conference. But i have to say, expectations here in moscow seem to be quite low that there will be a major reshuffle of the cabinet because of whats happening on the ruble, seema. Well, we are waiting ahead of the address. We are waiting to hear from putin as he addresses the challenges that russia is facing. We will update you as soon as putin comes to the stage. In the meantime, headlines from the ecb, they will publish regular accounts of Monetary Policy discussiones from january and that will be released four weeks after each meeting. No specific movement in the euro that were seeing off the lows of the day. I think what we need to see essentially from europe, disinflation, what this needs to be is a wake up call for European Central banks, that they need to cut rates. Otherwise, the currencies are going to grow too strong. But at the same time, theyre benefiting from eu fund flows. So i think while its good to see that the ecb is presenting us with some sort of program we can make build into our expectations. But its much of a game changer. Earlier this week, downed gdp data weighed on investors. But at the same time, bad news seemed to be welcome as good news for the markets. Is that how you are interpreting disappointing data that comes out of europe . Were seeing the ecb starting to march of this year. Whenever it happens, whether its january to june or whatever, we are going into qe mode in the eurozone and from the ecb. Were in a liquidity trap at the moment. Thats something we need to work on. Were expecting full blown qe in march of next year. How should one position themselves . What specific sectors stand to move higher ahead of that announcement . On the bond side, its obviously the bond youre going to see long ends being pushed down further on the yield side. This is something thats very supportive for 2015. And, of course, the emerging market story has been a focal point for investors, just given the volatility that weve been seeing, not just in russia, but in brazil among others. Do you think Going Forward investors will question the whole concept of investing in these markets given the volatility that weve seen this year . Youve got the triple b minus stories, which includes brazil, south africa and russia. Were looking for brazil not to be downgraded by s p this year. Were looking for the potential for south africa in 2015 to see investment rates because there are no reforms, essentially. So there i would say invest in emerging markets. Plenty of issuance from emerging market sovereign. And with the fed going into patience mode. And russia president Vladimir Putin is making his address right now. Lets listen in. Translator the desire to ask questions. As we did last year, i will begin by telling you about some results of our work for the year. And then i will try to answer your questions. First, and the main thing is the economic parameter, the growth of the gdp for the last ten months has been 0. 7 or maybe 0. 6 . Yesterday we had a meeting with my colleagues and we made the figure more precise. And the trade balance surplus has groan by 13. 3 billion u. S. To be 148. 4 billion. Weve had some increase in our industrial production. For the last month, the growth was 1. 7 . The level of unemployment is quite low. It was even less than 5 before, now it is about 5 , 5. 1 . The agri Industrial Complex is continuing to develop. I think to yearend, its growth will be 3. 3 . And as you know, in year we had a record harvest, 104 billion tons of grains. And despite all the turbulence on the financial market, the federal budget this year will be having in it. That means that incomes will be higher than spendings by 1. 2 trillion rubles. Thats about 1. 9 of the gdp. The minister of finance is calculating the precise figures. But it is for sure that the budget would have prospect. The main outcome of the year in the social is a positive demographics. The natural growth of population for the last ten months was 37. 1,000 people. The death rate is decreasing now and the birth race is increasing, which is a very good trend. And, of course, we must do everything in order to keep it. As we promised, we are continuing to index the capital in 2014 is it was 429. 429,408 rubles. We have achieved and even overcome the target parameters of the categories of employees for the 2014 we are speaking about the social teachers, teachers at school, professors at university, senior and medium and junior medical staff, cultural workers, doctors, etcetera. In 2014, we have index potential twice. Since the first february by 6. 5 . We have worked to increase the combat capacity of our armed forces. I will not name all the things here. I will just nake you the social parameter. In 2014, 11,700 military service men of the minister of defense have received permanent housing and 17,300 service men have received their corporate housing. That is 100 of our annual plans. These have been some figures and now some words about the Current Situation. I believe all of us understand that the main question of today, which is of interest to the citizens of our country, is the state of economies, the National Currency, and the future development of the situation in the social sphere in this regard. And i will try briefly with several sentences to describe the situation to you and to say to inform you in my opinion on how it will develop. After that, i believe the press conference will be finished. But if you have maybe some questions to guide me, i will try to answer those. Of course, this situation has been provoked by external factors for first and foremost, but we believe that a lot has not been done by us of which we planned since our economy for the last two decades. It was quite difficult to do everythi everything. Especially taking into account the favorable Economic Situation when the money was invested by business to the areas with the maximum and quick profit. It was quite difficult to rebuild the mechanism. Today, the situation has changed, as you know. And foreign economic factors are influencing it, first of all im speaking about the oil price, which is followed by the gas price, as well. I believe the central bank and the government are taking adequate measures in the Current Situation. There are questions to the central bank about the time frame of these measures, whether they are timely. But on the whole, the direction is correct. I hope that the yesterday and todays rate and the growth and the cost of ruble will maintain. Is that possible . Yes. Whether oil prices will continue to fall down and influence the National Currency and inflation, that is possible, too. What are we going to do about this . We are going to use the measures which we use quite successfully in 2008 and in this situation, we will have to focus our attention on assistance to people who do need it. And id like to highlight that we need to keep or maintain all our planned parameters on social issues and problems. First of all, im speaking about the pensions, the salaries of the budget employees, etcetera. Of course, the situation will develop in an unfavorable manner, we will have to make some adjustments to our plans and, of course, well have to reduce something that of course as experts Say Something to plus then for the growth and favorable solutions to this situation is unavoidable for two reasons. First, the growth of the Global Economy will maintain. I am speaking about the rates of growth are slowing down, but the economy will grow in itself and our economy will overcome the Current Situation. How much time is needed for that . I believe about two years in the worst scenario. And i repeat that after that the growth is imminent because the foreign Economic Situation will change. The growth of the Global Economy will need Additional Energy resources, but for the time, which i have no doubts about, well be able to do a lot in diversifying our economy because the life itself will be making us do that. We wouldnt be able to function and survive otherwise. So on the whole, and i repeat this is imminent, we will fulfill our social obligations basing on the existing reserves, which we have, thank god. And they have even grown this year. Ill remind you that the Central Bank Reserves are 419 billion and the central bank is not going to waste them. Which is correct. And the reserves of the government, the National Welfare fund and the Resource Fund of the government have groan this year by about 2. 4, 2. 5 trillion rubles. The total amount of the reserves is 8. 4 trillion of rubles and i believe, basing on these reserves, we will solve the main social issues, well diversify our economy. And it is unavoidable and imminent that the situation will become normal. With this, id like to finish the introduction. Well, we may finish the press conference, as well, but if you have the questions, i will answer them. Okay. You know, this year id like to begin with those who have been working for the whole year together with the president. I would like to begin with the kremlin pool. And first ill give the floor to terakov, the of the kremlin pool who has been working with the president for many years who has been going to him with him to all the corners of our of our planet. That, i believe, is well, i like to ask you, mr. President , the situation in the country shows that theres a deep foreign currency crisis now. How do you think for the two years which you have mentioned, will we go through a financial and economic crisis . And there has been a lot of criticism with the government. Do you agree with the criticism . El with, i said that in the most unfavorable scenario for the Economic Situation, the situation would last for about two years. But i believe that it is not a necessary scenario because the situation might improve earlier. It might begin improving in the First Quarter in the middle of the next year, although at the end of next year, no one could tell that for sure. A lot of factors of uncertainty exist there. As far as the Central Bank Activities are concerned well, i do not think i could call the situation the crisis or you may call it whatever you want. But i believe that i said quite clearly that the central bank and the government on the whole are acting correctly and adequately to the situation. Existing. I believe some things well, the criticism is voiced from the experts, as well. I believe some actions could have been made quicker, but i believe that the quickness must be the pragmatic approach which actually the central bank and the government is doing. What are they doing . They have risen the key Interest Rate and i believe that this rate would not be raised for all the periods of those difficult circumstances linked with the foreign Economic Situation. But in this or that way, i believe, the economy will adjust. Why am i optimistic . Because the economy will adjust to life and work in the conditions of the low fuel prices. Low oil prices. This will happen. The question is how quickly such adjustment will take place. If the prices will remain low or will build even lower, maybe even 60 per barrel, even 40 per barrel. The figure doesnt matter here. The economy will structure itself. How quickly it will do so is hard to say, but it will happen. What is the central bank doing . It raised Interest Rates. What does it have to do and what is it doing, what else is it doing . In order to stabilize the National Currency, we might squeeze out the liquidity a little bit. Give access to the currency, foreign currency liquidity and the central bank is doing that. Its rate on the currency, is 0. 5. The Central Bank Must seal it themselves, how exactly themselves to act. This is a this is returnable money, which gives participants to the Economic Activity to use the currency resources. It is done correctly. Of course, i see and hear the criticism towards the central bank. The criticism might not grounded or not, but the government must not forget about its responsibility, either. You must work with the at the same time same exporters which have good currency. The chairman of the government met the leaders of our Largest Companies and there are some results that have come from this meeting. Of course, some of them or many of them need to face their loans. And need to think about the situation in their companies. Because the Companies Just as a citizen always thinks about how to save something for the worst time. It is a correct economic behavior or not. We see there are still positive results from that. And is we need to take some other measures. I mean the government. What am i talking about . I am talking about fighting deflation, but there are some things which we have mentioned by the way publicly. I mentioned that when we met with the government which must be matched by the government. For example, the fuel prices, i mean, the gasoline prices, the food prices, this has to be tackled with by the government. And you must work with that manually, you must need the producers, the market participants, the trade network, the retailers, the Oil Companies which have our markets a lot. Our federal antimonopoly service will work well. The order active and should not intrude with the inner participants of the central bank and the government, but the coordination must be there. It should be timely. Of course criticizes are all, but on the whole, we mustnt forget that their policy is adequate. And it is not only the central bank which is responsible for the Economic Situation in the country. Another man from the president ial if you have a question, of course. Translator mr. Putin, i think a lot of us have been waiting for your press conference now and everyone was thinking what was the mood of mr. Putin because these have and thank you for your optimism. We hope that everything will be as you said. Now to my question. Since 2008, we have been speaking about going away from the oil needle, rebuilding, restructuring our economy, that the Current Situation shows that we are still on that oil needle and we do not know how long we will remain there. What do you think . Will we be able to use the Current Crisis for good in order to restructure our economy . Of course, i understand that this wouldnt be done quickly, but still and second, in your address to the federal assembly, you have mentioned a number of a number of benefits for the business and for economy and you understand that the main danger in russia is bureaucracy and like stalling of the implementation of correct decisions including criticisms of the president. Are you sure now that your decisions that you expect will be implemented this time and with optimism will be concerned with real steps . Thank you. You know, we can only be sure when we have an assurance, but in this case, we can only assure ourselves by mentioning the Economic Policy and having the right reserves and in the economic issues. This is good insurance. There must be some for example, if you ask them about directors. Youll realize that in our country, bureaucracy is nothing compared to the european in our country, bureaucracy is not the main problem. You know what the main problem is . At the very beginning when i said the introduction and the press conference could be over, it does not listen to their joke. The thing is, that the main problem is not the decision. The macroEconomic Situation in the Energy Sector or the chemistry or the sector, then no of the government is to ensure the tax to regulating the noncommodity sectors. It is a difficult process because we do not have enough basic resources. To implement those reforms. For many years now, weve been trying to improve the business climate. And to facilitate the development of the situation in the oil sector. But the process is a difficult one. When you can get much more profits invested into the Energy Sector about reserves of a request to the government are not related to invest in higher tech logical areas. For a chance to for a chance to produce energy resources. And to have that fulfilled. But you know when the Economic Conditions get different, to invest into other areas. And this is what makes to a stranger. Yes, we will have to face some difficulties and well definitely have to address some social issues. And to fulfill our social obligations that contends may decrease signed by the president in 2012. But still, i suppose we can benefit from the situation in order to diversify our economy and create beneficial conditions for businesses. I do hope that todays Economic Situation will help us. Let us continue with the colleagues. Could you please make your questions shorter so that we could listen to mr. Putin more. Andre, your question, please. We cannot proceed without you. Translator mr. Putin, at the beginning of 2012, in one of your preelections articles that then transformed into the president may 2012, you cannot right the Current Situation and growth of mr. That russia is focusing . Well, i just want to pick up here for a moment. Weve obviously all been listening to what president putin has said. I think its worth having a look at some of the key points that hes already made on the economy because they have moved markets a little bit. And it seems to have been taken positively. He did talk about the economy achieving 0. 6 growth, the full year 2014. A lot of analysts have been talking about this year as being a flat year for growth. Then we potentially go negative next year. The president is still positive on the economic message. He also talked about how government revenues will exceed costs this year. We know the government has moved quite quickly to freeze salaries and also bring down some expenditures. So, again, that will be seen as positive, i think, for the fiscal condition of the government. And the other thing that i think was quite interesting here, he talked about the criticism that the central bank has faced. Now, a number of commentators have suggested there might be a government reshuffle that potentially the central bank could go because he didnt move quickly enough to stem the decline in the ruble that weve seen. Mr. Putin, i think, giving her measured support in his comments was saying, look, the central bank has responsibilities for the whole economy for maintaining stability not just dealing with the rubles decline. And he pointed out that you can track the rubles fall in decline with the oil price. So i think what he said gives some support for that dramatic Interest Rate hike that we saw from the central bank. And i think he was broadly supportive for the measures the government has taken so far in propping up the economy against the sanctions and providing support for the russian currency. So weve got a little bit of market moving activity here. Hes keeping, of course, elsewhere will be what the president has to say with regard to the situation with ukraine and the threat of further sanctions. So we will take you back to the speech, i think, and listen in and just see whether theres anything key that we need to tell you about with regard to ukraine. Lets listen back in. Restorations and due to your insistence, russia was even close to achieving the free regime. This is an anniversary year. Building a new wall, it is not crucial, but it is a wall of mutual criticism, mutual execution, and what is your forecast . Where do you think this trend can take us . Do you think we are going to live in a divided world or do you think we can do anything to restore that . Youve just mentioned that the wall fell and what we are witnessing at the moment is building a new wall. I am going to answer your question and i hope that you will agree with me. It is not what we are at the moment. You yourself are an expert in relations with germany. After the berlin wall fell, didnt they tell us that this would be expression . There were two ways of expression. Isnt that a wall . Dont you think it is when they started building the wall . It is a virtual wall. And what about abn system near or borders . No one talks. This is the problem. Our partners did not talk. They decided that they were they believed that they were and all other countries were a vessel. And what they had to do, exercise more pressure and i mentioned that in my assembly. They did not Start Building new walls in spite of argue our attempts. We are going to Work Together, but we wanted to Work Together in europe and in the world. And i hope the situation like the crisis and we want our partners to understand that the best way is to stop building those walls and to Start Building a united, a single human Current Space in the economic liberty, a economic freedom. Id like to give the colleagues to the ukraine, agency. Id like to ask two short questions, please. The first question is about the punitive operation that you organized in the east of our country. This operation was intended against the russian population. It is not a secret that russian militants are fighting there and the system organized it. How many of them did you send there . How many russian militants did you send . And what about and the person that you send there . How many people died . And you being chief in commander of the russian situation, what do us to the family of those who died . The president whose name was victor, hes fighting in the territory of the russian federati federation. At this time, he put in prison tymoshenko. And at the moment, victor boot, who is and the number one in tymshenkos prison, and 30 more ukrainians are prisoners are serving their terms in russia. Let me start with your second question and then i will definitely answer your first one, as well. Speaking about poroshenko and in terms, our position on the issue is absolutely the colleagues of the journalists who died fulfilling their professional duty in the ukraine are here today. Let me emphasize that the journalists did not take part in any military action. They were unarmed and it is a responsibility of every state structure, including the military structures, to provide for their health and security. And to give them a chance to fulfill their professional duty in order to disseminate the information, the reliable information. It is what is accepted everywhere in the world. It is a standard practice. However, those people were murdered and according to our loan agencies, it was who targeted them. And if the investigation will find out that she was not guilty, we will release her immediately. If we find out that she was guilty and she took part in the murder, the russians will take decision and she will serve the sentence according to the decision. At the same time, in advance, no one can claim this person is guilty of committing any crime. Especially keeping in mind that the presumption of innocence is in force in our country. So we will see what the investigation will discover. With respect to the other prisoners you have mentioned, they are serving their terms in prison and there is a pretrial on their case. They are suspected of activities. This is the answer to the second part of your question. Now lets come back to the first question about who is responsible for what. In our country, in russia, and frankly speaking like any other president ial republic, the president is held accountable for everything. As for the troops, as for their destiny, the commanding shift is responsible for their let me draw your attention to the country it is one and the same person. All the people who, by their own will, want to fulfill their duty or voluntarily take into some merger action, including the action in the east of the ukraine are not mercenary. They are not paid for those military actions. In our Public Opinion what has taken place in the east of ukraine is definitely of operation, but it is organized by the ukrainian authorities and not by anybody else. This were not the militia of the southeast who send their military units to give, but those were the Ukrainian Army who move their system and their talent system to the south of ukraine. Lets talk about what the problem is and how we can find a way out of the situation. The problem is after the coup detat and no matter what you say about it, it was definitely a coup detat that happened in kiev. It was a instead of starting a political dialogue. The new authority started to use the Law Enforcement agency and when it didnt work out, they sent the army. When it didnt work out, either, they started to apply other methods. For example, the economic blockage. And the economic crisis and the cutting off of the economic price with the saudis. I suppose that it is unacceptable for the ukrainian nations. We are ready to participate in the process as mediators and intermediaries and we hope that youll be able to start an inclusive political dialogue and to restore the united political space. Let us continue. Channel 1, please. Translator mr. Putin, what is going on in our economy . Maybe this is the price we have to pay for crimea, maybe theyre trying to say that frankly no, it is not the price you have to pay for crimea. This is how we have to pay for our real to preserve our nation, to maintain our state. And the question of your colleague, i mentioned its after the fell and the opportunity dissolved and i would like to mention that in my direct federal assembly, we were totally open to our partners, but it was that they directly supported terrorists in the caucus. Im not going to go into details at the moment, but do partners act in such a way . Everyone is very well aware of their actions. And no matter what we do, theyre always against our actions. Theyre always contracting us. If we recall, the separation process for the Olympic Games, remember how they basically were about the olympics . We wanted to make a holiday not only for and sense in our country, but what we saw where the coordinated efforts to jeopardize the process for the Olympic Games. And the Olympic Games themselves. I dont know who wanted to do this and why, but that is what they are witnessing all the time. You know, speaking in front of the i quoted an example and i mentioned the bear who got forest. You know, the thing is, that if we go on with such aanalysis, sometimes and this thing even comes to my mind is that probably our should just relax and sit quietly and just instead of counting animals. Maybe then they will leave the pay in peace. But no, they will not. What theyre trying to do is to change the bear and when they manage to chain the bear, they will just and clause. This is how is working at the moment. And we could even hear that from officials saying that it is not just the siberia belongs to russia, but how can they say that it is unjust . If they take our other territory, it is ridiculous. If they take the they will not be able to do anything. What we are trying to do at the moment is to maintain our sovereignty and our independence. And if you do this, theres the problems we are facing in our economy at the moment. As a result of the sanctions and it is really partially true because, you know, about 25 of the problems theyre facing at the moment, 25 are due to the sanctions. But what we have to realize is that if we want to maintain our sovereignty to fight and to reprove the situation in the country, to benefit from the Current Events in order to restructure our economy, to go through all the difficulties and to improve, if we want to do that, we have to do we happen to achieve that or do we happen our to become just a stuffed animal . This our choice and it has nothing to do with the crimea. The. Translator the russia channel is responsible for our broadcast today, so lets given the floor to our journalists. Good afternoon. Russia 1. While its quite understandable as far as crimea is concerned, the question is how much money will we have to put into development after the difficult ukrainian past . So let me just come back in here for a moment. I think the president has now addressed the economy and has talked extensively about ukraine. I think there are some key talking points that are worth picking up on. Again, a restatement, i think, president putins position that nato expansion is not acceptable as far as moscow is concerned. He talked about nato being responsible for building a new berlin wall. That has remained a consistent position as far as moscow is concerned. On ukraine more generally, he we obviously had some quite impassioned questions asking about the involvement of russian reservists in ukraine itself. The president s point of view, again, i think robust in his defense of why he feels russia needs to be involved and his concern about the fallout following what he described as the coup detat, whichever side of the fence you sit on this, putin is effectively restated the view that he thinks it is in russias National Interests and in the interests of those russian speakers in the east to be protected. The president did, though, i think, put out an olive branch of sorts when he talked about moscow wanting to be involved in negotiating a settlement or a resolution. But, again, just coming back to his comments on ukraine, so much of it is about National Pride and about russia taking an active role in being seen to defend russian speakers in the east of ukraine and just to quote what he had to say, and he used this bear analogy, should a bear just sit quietly and eat honey, it would be perceived, i think he said, as a stuffed bear if it didnt act. The comments clearly on the ukraine have had a negative impact in the direction for the ruble. Weve seen the ruble come off on these remarks after more positive gains, after he talked about the adequate response, as he described is, that weve seen from the government and the Central Banks decline. Lets step away from the speech at the moment and hand it back to you, seema. Well carry on listening in to see if theres any market moving or important. Thank you so much, geoff cutmo cutmore. A very interesting speech from russian president putin. Markets are respond to go what put yun says. Lets bring in simon, ahead of em research of the commerzbank. Also with us, alexander bremens. Simon, i want to kick it off with you. What do you think was a major take away from putins address today . Actually, his first comments were relatively calm and relaxed and quiet and there werent any sort of aggressive turns. So i think thats very positive. And i agree with that, hes saying that there is some sort of an olive branch going out here. And weve been seen in the last two weeks on both sides an olive branch being reached to the other. The only thing is, the reaction on the ruble, and i think the first reaction came because he said that they shouldnt waste the Central Banks reserve. He said the central bank will not burn the cash reserves right now of 419 billion in russia. Correct. I think the market would expect and continue to expect the central bank to intervene massively if needed in the next two days. We saw the finance minister to be possible anywhere up to 7 billion. The central bank needs to continue to react because its local households who are now losing confidence in the Central Banks policy and in the ruble. And, of course, a major take away from pultins speech, he said moscow is ready to mediate in the ukraine crisis and to resolve the situation via political gains. I think hes been consistent. The russian government has not saying similar things for weeks now. They want ukraine to remain neutral. They want ukraine to the authority of russia has always been attacked from the west, and they remember that. So i think if someone thought they were more aggressive than that, i think there was a misunderstanding. He talked about how unemployment is low and that growth over the last ten months has been around and they also with the crisis . This is backward looking data. But therefore, i think we are going to see stabilization and we are going to see a Strong Economy because it is going to quickly, simon, would you buy russia here . Were overweight russia local currency. I agree that the ruble is under valued. Simon, thank you for your time. Alexander is sticking with us. More coming up on Worldwide Exchange and reaction to russia, thats coming up next. Welcome back to Worldwide Exchange. Im seema mody. I do not think i could call the situation a crisis, or you may call it whatever you want. But i believe that i said quite clearly that the central bank and the government on the whole are acting correctly. Christmas comes early courtesy of the fed. Global stocks get a boost after janet yellen promises to be patient with hiking u. S. Rates next year. The Committee Considers it unlikely to begin the normalization process for at least the next couple of meetings. The German Economy also receiving its own holiday gift. Business sentiment reducing the fall in the oil price as well as the weaker euro. And president obama opens the door to a historic visit to cuba after the u. S. Vows to normalize relations with the country for the first time in over 50 years. The story has been russia, but in the mean time, take a look at u. S. Futures. We did see a solid reaction in the u. S. Perhaps a little dovish, as you can see the rally could perhaps continue. Right now, the Dow Jones Industrial up 155 points in premarket trade. The nasdaq and the s p 500 posting gains in premarket. But as i was just telling you, it was a strong day for u. S. Markets. U. S. Stocks posting their best day of 2014. As you can see, that helped the s p 500 close back above 2,000, a psychological level that traders watch. Up just about 2 . The nasdaq up about 2 , as well. And the dow, a triple digit gain for the dow, up 1. 6 . We did see volatility move lower, down about 17. 5 . We will focus on what janet yellen has to say, that they will raise rates, but they did take that considerable time clause out of their statement. Lets move on to european markets, how are they responding, not only to what Vladimir Putin has to say, but also that ifo index which came in better than expected. The xetra dax, german markets outperforming up 175 points. Some big gains in germany, france, italy, were seeing a triple digit gain in italy, as well. 239point gain. And in the u. S. , were looking at the ftse 1 00 up just about 36 points. Uk retail sales did come in higher than expected. But lets get back to the big story. That is russia. How are russian markets respond to go what Vladimir Putin had to say during his National Address . Of course, his address coming during a critical time when russias economy faces a laundry list of challenges. But he did try to reassure investors as well as citizens saying that the economy is on track. But it will take two years to get out of this crisis. Right now, we are looking at the russian ruble weakening against the dollar. Putin did say the central bank will not thoughtfully burn the reserves that it had, about 419 billion in reserves. Look at the micex index, investors responding positively to what putin had to say. Up about 4. 6 in todays trade. Now, russian president Vladimir Putin has been delivering his annual speech in moscow. Lets get back out to Geoff Cutmore who has been following the eventes and what people have been saying. Jeff, what has been your biggest take away . I think youve covered off most of the major comments that we heard on the economy. I think what will interest the markets, and i suspect thats why we are a little bit higher on equities and the ruble has seen some reasonable twoway trade here is that actually the president was very measured in the way he talked about the governments response to this rapid decline in the ruble. He acknowledged that much of what is going on is about the concentration of energy in the makeup of russian gdp. And he did go on to say, well, maybe its something that we need to move a little faster on when it comes to diversifying the russian economy away from this energy dependance. Its something that economists and analysts have been urging the government to do and its something that the government has said it wants to do, but its been slow in going in that direction. I think there was some positive noise there in terms of where we go next on that program. He also said he supported the Central Banks actions on Interest Rates, but this spike in rates will not last forever. So a message to the russian people, he thinks well see an improvement of growth in about 18 months to two years time here. Lets park the economy for a moment because i think it was broadly positive what he had to say on the economy on the ruble. And lets just focus on the ukraine story. And i think, yes, there was a lot of classic putin posturing here. We have to do what we have to do for the russian speaking minorities in eastern ukraine. This was directly affecting russias National Interests, this is why we needed to be involved. But alongside that, we also got, i think, a slightly more constellatory tone. Russia wants to be part of the negotiation for a settlement here. President poroshenko of ukraine wants to resolve this crisis. I think that was a more positive message than weve heard of late on the ukraine. The talk of a prisoner swap, again, something that means there will be more negotiations, more discussions, and hopefully that leads us down the road to a deescalation. What i think will be interesting as we over the next few hours really let these comments sink in is just how the americans and the europeans respond to what theyve heard here. We know president obama has a third round of sanctions bills which he can ink which will allow lethal aid to be provided to the Ukrainian Government and the europeans have talked about another round of actions with regard to crimea. So, seema, i dont want to sound too excited because as always, with mr. Putin, you have to look at the shades of gray here. But it does seem to me hes trying to strike a more constellatory tone over ukraine than weve heard of late. Back to you. Geoff, thank you so much. Lets talk to alexander bran, director of prosperity capital. Tim, i want to kick it off with you. Given the fastmoving developments out of russia, how closely do you think investors in the u. S. And as well as in europe are continue to go watch what putin has to say about the state of the russian economy . Right. I think were watching very closely. We also have to remember that russia makes up only about 1 of Trading Volume with the u. S. However, we certainly need to Pay Attention to russia in a very Strong Economy. The other items that mr. Putin said is the need for additional private investment in the country. Which has not been occurring. And while the commentary were made about the ruble and perhaps missteps by the central bank, he also believes that the central bank itself should not be held purely accountable and that there needs to be better diversity. So i think those are the major themes. And, of course, very anemic growth. 1. 06 as far as gdp growth and the sanctions. The sanctions were not mentioned expansively on the impact, the negative impact theyve had on the country but all those additional factors need to be considered. So when he was asked about the tensions with the west, mr. Putin struck somewhat of a harsh tone. He accused the west of speaking to subdue and disarm russia to gain control over its natural resources. Do you think those that comment or that tone used by putin was basically in an effort to use a nationalistic, i guess, message to his citizens . Perhaps. But mr. Putin also said that russia is too reliant on the oil industry. Therefore, there is a connection there. It might have been a deflection. I really i cant really read further than that. Okay. Now alexander, i want to get your thoughts. What do you think aside from what we discussed in the last hour, what do you think is a major take away when it comes to his comments around ukraine and the geopolitical tensions which have been blamed for one of the reasons investors have become more bearish our cautious when it comes to russia . I think the main take away is that russia has and is ready to negotiate. They want to agree with the western world that ukraine remains neutral. And if this is successful, then there is a deal. So as soon as both parties are ready to accept this, which i think is going to be mutually beneficial for both eu, u. S. , nato and russia, then everything will be quiet up with that. Okay. And how are you positioning yourself in russia, given the comments that putin just made . These are critical times, given the free fall we have been seeing in the russia ruble . Well, markets sometimes could get volatile. Its not the first time weve seen Something Like this. So i wouldnt say we are too concerned. We are disappointed that the share prices have gone down that much. But now we consider that they are recovering. We are not positioning ourselves in any way to what putin just said. I think it is quite clear that Russian Companies are improving, operating at more than 50 discount throughout the emerging markets today. Theyre very, very cheap. Valuation alone is perhaps a reason to get bullish. Of course. And we are. And actually, when you compare russia with other emerging markets, some people talk about capital control in russia which i think is out of the question as mr. Putin just said, also back up those are the emerging markets which trade at more than twice valuations as russia do have that control. And people tend to ignore it. So i think the market is very, very nervous right now. As people go into new year, its fundamentally attracting markets right now. Well see if youre right. Alexand alexander, director of prosperity capital, thank you for your time and to get your instant reaction. That was great. Thank you. Just want to get you some headlines coming out of the Saudi Oil Minister naimi. He said opec sought cooperation from our Oil Producers but that those efforts were not successful. He also said the slide in oil price residue to Global Economic growth. Keep in mind, we have been seeing Oil Prices Rebound over the last two days. Once again, in todays trade, were looking at brent crude well above 52 a barrel. Up about 2. 5 . Light crude, up just about 2. 4 . So is the selloff in oil over . We will be discussing that with our next guest and also fed reaction. Still to come, the feds patient pledge gives u. S. Markets a boost. But is the grinch waiting in to steal christmas . We discuss. Welcome back to Worldwide Exchange. Vlad mreer putin lays down fierce over the ruble saying a russian recovery is, quote, inevitable. Global stocks getting a boost as fed chairman janet yellen promises to be patient with rate hikes next year. Amid reports the fbi has linked north korea to hack attacks on sony. Lets focus in on the u. S. They intend to tighten Monetary Policy next year, dropping rates low for a considerable period of time. In a new twist, the fed adds new lincoln to their experience saying they can be patient before starting to raise rates. The fed says their new stance is consistent with the considerable time pledge. Fed chair janet yellen says the patient language all but rules out a rate hike until april at the earliest. With the Asset Purchase Program having been wound down in october, it seems hopeful to continue to communicate about the possible timing of our first rate increase with reference to an event that is receding into the past. Instead we have shifted to language that would be more appropriate. Going into 2015 with tim, chairman of the personal Wealth Advisers. Tim, patience and gradual . That seems to be the way the fed is intending to slowly raise rates. When rates have gone up, they have come fast and furious. Right. The commentary is going to be a slow and focused process and its probably not going to be until, at the earliest, probably into the First Quarter, into the Second Quarter with respect to any resolution. And it can could go longer. There seems the be no anxious level to increase rates. Thats true around the world. Oil prices are remaining low. So we have those low rates and low costs of energy in the contact of oil here. And the u. S. Stock market reacting very positively yesterday. Futures were up 148 points heading into this mornings opening. When we see the type of vshaped recoveries in the dow, the dow gaining triple digits yesterday, what does that tell you about how investor are trading this market and what theyre focused on . Is it just all about the fed . Thats a great question. I would say when we talk to our clients in relationships, its a good point, but its much broader. Looking at unemployment rate, looking at Interest Rates, looking at inflation rates, most investors that we deal with are looking at things very wholistically and certainly overseas activity, as well. So i would say theres multiple factors that investors will be focusing on here at end of year, but then going through 2015. Investors might have a lot to digest, but oil, russia, the slowdown in china, none of those headwind s seem to be worrying janet yellen at this point. Does this mean the u. S. Can continue to to shine deexcite global weakness . I wouldnt say its that way. The asian markets, the close yesterday, even the russian markets this morning coming off of president putins commentary. The economies are more linked now than ever before. Its really just a function of policies that each country will adapt so that they can be most effective global and economic collaborators with each other. And i think low rates globally, as i mentioned, is going to continue to be a common link. The do you think there is a disconnect between the fed and the stock market . Yopgs. Look at whats happening. Again, we dont predict or forecast rate changes or stock valuations or particular instruments. But you see the reinforced low Interest Rate environment here in the united states, and you see very positive reaction coming out of the equity markets in the u. S. Certainly theres more reasons why the u. S. Equity markets are increasing. But certainly a determining or important factor would be this environment of low rates. And the low rates, it looks like theyre going to continue until june of 2015 given what janet yellen had to say yesterday. Tim, thank you for your market perspective. Tim snee, chairman of person Wealth Advisers at eisnoramperes. Coming one, president obama extenting an olive branch to cuba. Find out how the island nation is reacting after this break. Cute little guy, huh . This guy could take down your entire company. Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. Welcome back pb president putin says said the central bank is taking the right measures to put forth a currency, but they could move a half a step faster, i says. Lets take a look at how markets are respondsing. We have been seeing a lot of volatility in the russian ruble. Down about 40 against the dollar this year. Piet yun reiterated, it would ensure social open investigations are met. In terms of how russian markets are responding, the micex is currently up. Take a look at markets on the back of what jan eft yellen had to say. The Dow Jones Industrial indicating a 228 move to the upside, the nasdaq up about 64 points in premarket trade. The s p 500 seeing a gain. Energy stocks have been rallying. That helping markets move higher in yesterdays trade. But what about europe . The ftse 100 up about 0. 9 . That ifo german business number came in higher than specd. France, italy, showing 1. 2 gains across the board. Europe is picking it up. Asia was strong. Lets take a look at oil because that has also been a big part of the story. Brent crude, up 2. 5 , 62. 79. Is the selloff over . Well have to say. Despite the moves that weve been seeing over the past couple of days, oil still trading at a multi year low. Chervon has put on hold indefinitely. Chef ron has been planning a well since 2009. Lets take a look at shares of chevron and how they are trading, right now up about 2 in frankfurt. Keep in mind, down just about 10 over the past three months. Mark potter filed this news from havanna. Cubans welcomed todays news, overenjoyed that the three agents held by the u. S. Will be coming home. Theyre National Heros here. But it is much more than that. We are very happy, this man says. Weve been waiting many years for this. More than 50 years, in fact. Fidel castro swept the power at the height of the cold war, but hes 88 now. Last seen publicly in july in failing health. His revolution is showing its age, too. And havanna, known for its charm and vintage cars is on life support, its economy crippled by the long standing u. S. Embargo. People here now hope that will change. Lets see if the embargo can be lifted to our quality of life can improve, so we can get more food, more things from other countries, this man says. The potential for u. S. Economic investment here is enormous. Even cubas famous cigars, now restricted in the u. S. , could see a booming market. If travel restrictions are lifted, millions more american tourists could visit this island nation so close to the united states. And many cubans and cuban americans, friends and relatives could soon be reunited, much further than now to travel between the two countries. That could be a revolution. And over the years, the cuban people have been through many ups and downs in u. S. Cuban relations and many worry here if these changes will actually occur. Many others believe they are much closer today than they have been for decades. Thats the latest. Lets get you a look at how russian markets are trading. Because, of course, thats where we are seeing the action and reaction to what president Vladimir Putin had to say about the economy, trying to reassure investors and citizens that the economy is on the right track. But that it will take some time before theyre able to get out of this crisis. Putin still fielding questions from journalists. Well be getting you those updates or those headlines as we get them. We also want to take a look at other news. Were going to be watching earnings. Oracle did deliver a win for investors by keeping its head in the clouds. We break down the stronger than expected forecast and earnings, coming up next. Its 5 30 in new york. Youre watching Worldwide Exchange. Here are your top headlines. Christmas coming early courtesy of the fed. Janet yellen promises to be patient with hiking u. S. Rates next year. The Committee Considers its unlikely to begin the normalization process for at least the next couple of meetings. Vladimir putin says a russian recovery is inevitable in the long run playing down fears in its annual address. I do not think i could call the situation a crisis or you may call it whatever you want. But i believe that i said quite clear that the central bank and the government on the whole are acting correctly. President obama opens the door to a historic visit to cuba after the u. S. Vows to normalize relations with the country for the first time in over 50 years. And sony pulls the plug on the interview as u. S. Government sources say north korea is behind the cyber attack on the movie studio. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. Lets take a look at where we are trading right now. It was one word that led the dow and the s p 500 to their best day of the year. The fed saying they will be patient when it comes to raising rates. It was seen as less hawkish than anticipated. The Dow Jones Industrial seeing a move around 200 points in premarket trade, the futures in nasdaq and the s p 500 also higher. Take a look at how u. S. Markets ended yesterday. A stellar rally, in fact. Take a look at the Dow Jones Industrial gaining 1. 7 . The s p 500 seeing its best day of the year. Boosted by that 4 jump in energy stocks. But it doesnt stop there. European markets right now are rallying, take a leg up after german Business Sentiment improved more than forecast in december. The think tank said the Falling Oil Price and lower euro had been seasonal gifts for the economy. Take a look at the german markets right now, trading higher by around 171 points. It was up as much as 2 just about 10 minutes ago. The ftse 100, the cac 40 and the italian markets firmly in the green. Over about 9 . Thats boosting sentiment. Its still down 40 over the last three months. Lets put todays move into per expect i. Fed chair janet yellen did address the recent move in oil saying the plunge in oil prices was good for the u. S. Economy as it put money into the pockets of families and households. However, she noted the negative impact it was having on russia. Listen in. Cleerlt, russia has been hit very hard by the decline in the oil prices and the ruble is depreciated enormously in value and this is posing a series of very difficult Economic Conditions in the russian economy. Of course, we discussed what the potential pull ofs are to the united states. Which could occur both through trade and Financial Link aemgs. But these linkages are actually relatively small. And russian president Vladimir Putin has been delivering his annual speech from moscow. He suggested that policymakers are taking steps to prop up the ruble and reject its suggestions of a crisis. But he also warned that the current problems could linger in the foreseeable future. Lets get out to Geoff Cutmore who is live in moscow. Help us understand what the reaction has been from citizens, from russians in response to what putin had to say, geoff. Yeah. Well, i think its interesting. Lets look at the markets for a moment, seema. This rally were seeing across the board is clearly about the fed. But the president here has the potential, maybe, to knock off some of those gains and the fact that that hasnt happened suggests, i think, that the market reads his comments in a broadly positive light. And he did come out and say the russian economy will achieve growth. He thinks this year 0. 6 . The government revenues will be higher. Spending will be positive. The government finances. And he also talked a lot about the central bank and the intervention. He said yes, intervention could come a step quicker as far as the central bank is concerned. But he is supportive of the response thats been taken. I guess if there was anything disappointment for those who would like to buy the ruble today, it was that he didnt come out and say we think that this 400 billion or so of reserves should immediately be put in place to start tackling the rubles weakness. But he did make the point a number of times that were not just going to fritter away this money lightly. And i think maybe something the market isnt focusing on enough but is worth reemphasizing here, the president said he would use his, quote, influence to encourage exporters to work on behalf of the ruble, effectively selling their foreign currency holdings. And that is the very pointed message directed at the oil and gas sector and the Mining Industries in particular who, of course, earn their revenue in dollars. Just very briefly, before i wrap up, no real news on ukraine that would kick markets lower. In fact, if anything, a slightly more positive tone, it seems, in some areas about lets get negotiations going, moscow wants to be involved, and i will be talking to president poroshenko in coming days ahead of a meeting in kiev to talk more about a resolution on this issue. Seema, let met send it back to you on that. Thank you, geoff opinion some encouraging comments coming from president putin about what he had to say about the geopolitical institutions when it comes to the instability in ukraine. Weve been keeping our eye on the price of oil. Putin about mention oil as one of the external factors that has been negatively impacting the russian currency. But hes not the only one talking about oil today. Saudi arabias oil minister is dodging blame of the recent free fall in oil prices. Speaking earlier this hour, he said opec sought cooperation from proout producers outside the organization, but admitted those efforts were not successful. Naimi took aim at speculators citing their negative role in driving volatility. All right. So fed and russia, a focal point for investors. Earnings being watched closely. Oracles Second Quarter profit fell 2 when adjusted earnings and revenue beat forecasts. That breaks of string in which three quarters beat estimates. The coceo says acceleration in that business bodes well for the future. On the conference call, larry ellison, who stepped down in september, said oracle may book more Cloud Business than rival sales force next year. Oracle shares were rallying in after hours trade and right now, up just about 6 in frankfurt. Lets get market reaction. George oconnor, senior analyst, thank you for joining us. What do you think is the main catalyst behind the big moves were seeing in shares of oracle right now . Theres two issues here. First off, a good set of results. And secondly of course is that macro back drop coming out of in the u. S. Expectations are very low going into this quarter set of numbers. As you said, they missed three times. So theres a bit of relief in here, as well. When it comes to break out the eggnog and go easy on the egg. But is oracle beating estimates by cost cutting or actual Revenue Growth . So its beating on the back of good execution on the cloud. One of the big concerns in the tech sector at the moment is weve got a group of legacy vendors. Hewlett packard, oracle, ibm, s. A. P. In that group. Theyre selling old stuff. And, you know, interestingly enough, old tech has been a winning trade this year. A lot of these names we have, specifically their dividend yields. Will this trend continue in 2015 if the fed does raise rates . Very good point. These would have been the victims in terms of the nature of tech in the sector. As you said, its been a good trade this year because theyve used their balance sheets. Basically, whats the return story . What they havent been able to do, though, is generate growth. Theyre always looking for growth and thats what the new guys are delivering. Tech, in fact, does tend to outperform in a rising rate environment. Which parts of tech do you think could perhaps do well in 2015 . First of all, we must remember that tech is not just for christmas. And what were seeing from oracle is a story around this is a most critical time in the tech sector to be making your sales, for all of them right now would be rushing to be winning. We still see, for example, last week on that the back of the strong ipo, important work. There are new Technology Companies making strong games. And juneau is i believe going public on the nasdaq which is backed by amazons jeff bezos. George oconnor, thank you for your time. President obama could step foot in cuba before the end of his term after the white house struck a deal to restore diplomatic ties with the communist country after more than 50 years of frosty relations. Lets get out to nbcs tracie potts live in washington with the latest. Tracie. Well, president obama said that its time and after a 45minute phone call, after a year and a half, weve now learned a secret meeting not here, but in canada, as well. After influence from the pope, both leaders have decided to reopen that relationship. Thats get something mixed reaction here in washington and around the country, in cuban communities where cuban americans, some of the younger ones think its time they dont even remember what started all of this. Some of the older ones who have come here are concerned that the regime in cuba may take advantage of this. What is going do happen next . First, the state department will take a look and review its list of terror states and likely will move cuba. That would open the door for things like sending money back and forth more easily between the two countries. Travel would be easier between the two countries, boosting tourism likely in cuba. Its only 90 miles away from the florida coast. But one thing that the Obama Administration cannot do is lift this trade embargo that was put in place by congress, and theyll have to miss it. Youre hearing some back and forth from lawmakers here about whether or not they want to do that. There are democrats and republicans who party the president s policy. There are some conservatives who are concerned it may put the country at risk. Well likely hear more about that when Congress Comes back in january thank you so much, tracie potts, from nbc. And coming up, a corporate story has been getting our attention. Sony silencing the interview as the studio faces mounting pressure from Movie Theater owners not to release the now controversial film. Will it ever see the light of day . Those details, coming up next. Welcome back. Russian president va lood lad mere putin is still fielding questions from journalists. He says the russian economy will rebound and he wants Political Solutions to come together in ewe crepe. Well get you those headlines out of that press conference. In the meantime, a corporate story, sony decided to cancel the Theatrical Release of the interview as the u. S. Government decides to hone in on exactly who might be behind the attack on the hollywood studio. Land jon dowdy joins us live. Sony pictures is pulling the release of the movie set to come out on christmas day. That follows the decision by several major chains to star the comedy of two journalists hired by the cia to kill north Korean Leader king jong union. The group threatened violence at theaters that showed the movie and sony says it will not release the film on demand. In a statement, sony says its deeply saddened at this brazen attempt to suppress the distribution of the movie and it stands behind the filmmakers and its free expression. North korea is behind the cyber attack calling it a statesponsored act. The white house is deciding whether or not though make those findings public. North korea has denied any responsibility. The government is working tirelessly to bring the perpetrators of this attack to justice. Some of those emails hacked reveal Business Strategies as linton is on the board. Spiegels desire to turn snapchat into a revenue generat generator. And a memo to snapchat he said people who try to build up up and break us down get a glimpse of who we really are. Back to you. And i just want to point out that shares in Warren Buffett backed chinese automaker byd went slightly lower in hong kong. This is due to foreign rivals and lower oil prices. A spokesperson for byb said they did not think the selloff had anything to do with links to berkshire hathaway. Before we go to the break, here are your headlines at this hour. Vladimir putin, as weve been telling you, has been playing down fears over the russian ruble route saying a russian recovery is inevitable. Global stocks getting a boost as fed chair woman janet yellen promises to be patient with rate hikes next year. And sony canceling the release of the interview as if fbi has linked hack atakdz and threats towards the studio. Stamps. Com is the best. I dont have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps. Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail man picks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Welcome back. Russian president Vladimir Putin has been delivering his annual speech from moscow. He suggested policy measures are taking steps to prop up the ruble and reject a crisis. He also struck out against the west saying it was crucial for russia to defend itself. Listen in. Translator a bear should relax and sit quietly, eating honey instead of hunting animals. Maybe then they will leave the bear alone. They wont do that. They want to chain the bear, take out its fangs and its claws. This is how Nuclear Terrorist is working at the moment. If they take out the bears fangs and claws, it will be usele useless. It will be a stuffed animal. What were trying to do is maintain our sovereignty and our independence. Love that mention of the pear. Lets get a look at how markets are respond to go what putin has been saying about its intervention in ukraine, how hes trying to reassure inve investors that the economy will be back on track, but that it will take some time. Interestingly enough, we are looking at the russian ruble which hit a record low against the dollar on tuesday. Its been exposed to a significant amount of volatility. Right now, t weak bing against the u. S. Dollar, trading against the u. S. Dollar. The micex index up about 5. 5 . So at session high toes what putin has been saying. For more market reaction, jeff bennet at ubs. Jeff, thank you so much for joining us the. Good morning. What are some of your main take aways from what russian president putin has been saying . I think the issue is that he had many audiences here. He was talking to the locals. By definition of the country, he was talking to the financial markets. The fkts markets are a little bit reassured. He was reasonably constructive. I think everyone would like to see something over the ukraine. Its going to be hard to get that. But i certainly think that was not thrown away as a prospect as a result of this press conference. Is there widespread fear in investing in russia or is there something salivating thinking that if russia can get its act together, that this might be a good buying opportunity . I think investors are genuinely split. I think people have been trying to buy the market over the last few weeks, broadly unsuccessful until 24, 36 hours ago because valuations have indeed gone very well. The Earnings Growth story next year is going to be very poor, indeed, in russia. But i think on balance, most have wanted to wait to see the Oil Price Level out and the ruble level out before stepping in. There will be some opportunities, no doubt. Which are trading. After that big rally in yesterdays trade, the Dow Jones Industrial indicating a move higher. Do you think the rebound in oil shares are improving russia Investment Case given that 50 of its government revenue comes from oil services . Yes, to a certain extent. The rebound in oil is compared to the huge decline that you had. I think its simply a little bit of optimism that perhaps youre going to see some stabilization of the oil price around this level. Emerging markets have come down heavily in the last few weeks because oil prices have come lower. And i think what you need to see is what youve seep in the last 36 hours or so. After this big selloff, that will bring investors back in. Until you really know how bad the economy will be next year, and also how poor Earnings Growth could be. And in reaction to what janet yellen told us about the future of rate hikes next year, how would you trade emerging markets . We actually argued on monday evening that we thought this was probably a good tuesday evening, im sorry, a good buying opportunity for the emerging markets. We still believe that to be the case. We dont think janet yellen said anything particularly new. Our view for a while has been rates move around 2015. I think shes preparing the ground for that. The market was relieved with the use of the word patient. After this selloff, a bit of value opened up in emerging markets. We also believe the drop in oil prices is pretty good for growth in emerging markets. Well still be fairley well protected. So all of this makes us feel that theres certainly a buying opportunity here as we go into 2015. Thats good for those net importers like india and indonesia, two markets that have been on the move. Jeff, thank you for joining us early in the morning. Of course, some moves today have been all about russian president Vladimir Putin, what he has been saying, reassuring the economy is going to be back on track. It will take some time. Also mentioning that theyre willing to find a resolution in ukrai ukraine. That is going to do i tell for us on Worldwide Exchange. Squawk box is next. Ps. Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail man picks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Good morning. U. S. Investors are waking up to a Global Market rally. Feels pretty good after the last week and a half. Stocks soaring in europe and asia and u. S. Equity futures point to go a sharply lower open. 20 1 up by volume yesterday. This all follows the feds promise of rate hike patience. They lose their nerve . Happening now, russian president putin speaking in moscow, blaming external factors for his countrys current economic crisis. And pulling the plug, sony cancels the christmas release of the interview. After a tacking attack on the studio that u. S. Officials say north korea ordered. Wow. Thursday, december 18th, 2014, and squawk box begins read now. Good morning, everyone. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen. Andrew is on vacation this week. U. S. Equity futures this morning, check this out. They are on fire after a strong day for the markets yesterday. Right now, the dow futures are indicated up by 216 points above fair value. S p futures are up a whooping almost 29 points. The nasdaq up by 60 points. At the same time, europe is on a steady climb in the early trading there. If you watch whats happening, youre going to see the indexes across the board