Cnbc his company is open for business. President obama uses his state of the Union Address to call on the middle class. Asking them to workers a fair shot. Corporate leaders in davos taking a critical view on his policies. Russia does not want a cold war. He responds to obama saying his country will not be isolated by the west. They tell cnbc it remains part of the global community. We are bringing world investors into russia and russia needs to be connected to the world and the world will be a safer, and better place if it is. Turkish central bank boys for the first time in months but some say the move doesnt go far enough. Cnbc speaks to the turkish finance minister coming up here on Worldwide Exchange. A warm welcome to Worldwide Exchange. We are live at the World Economic forum here in davos. The theme this year the new global context. For a change its broad enough to encompass all the issues that inflate the global environment. A lack of trust. Geo politics. The relationship with russia. How does that change the rise in the islamic state. Problems on the economic front as far as the European Union is concerns. One of the Critical Issues is inflation too. And of course now the expectations or the anticipation is rising ahead of the European Central bank meeting tomorrow. What will mario draghi unveil . Will it be the Bond Buying Program at this point the market is expecting but mario draghi in the past has overpromised and underdelivered. The question is why do we still need stimulus six years on from the crisis . Why so much focus as far as Central Banks and their maneuvers are concerned. Well be talking about the prospect of qe. The global disinflationary environment another crucial issue but the oil price shift weve seen over the last four to six months another crucial issue. We have a great guest lineup coming up on Worldwide Exchange. Well be talking italian banks. Carlo hessina. Well be talking to the ceo of middle east, of europe and the americas for standard charters. Talking about that business too. The secretary central he cries go structural. I look at asset prices and say wheres the incentive. And also david harding. What we have seen from hedge funds has been a real struggle. What does that mean for the situation Going Forward . I did mention italy of course. Lets start there. A historic degree. Thats how the italian Prime Minister described the controversial banking reforms approved by his government. Shares in the largest cooperative banks are rallying this morning. Which obliges shareholders to become joint stock companies. I spoke to the italian Prime Minister late last night and i asked him if ial juan banks in the Banking Sector were seeing a revolution. In italy unfortunately we lost the opportunity to realize or former bank system three years ago. When crisis showed a lot of countries crew money. It was enough. It was too hard. I respect the decision but i believe if the in a good system, the first choice is about bank. I florence become an incredible city for the presence of the bank system and that created the possibility for the painters. So the banks are absolutely central but italy dont save bank. Dont create opportunities for bank. Dont bring money for the banks. The only one around europe. This is very strange because today the reaction is is the italian system is not solid and strong in the bank system. I think this is not correct but today, exactly today, we decided that in the board government and council some about popular banks. In italy there this is tradition of a system of popular banks. Very closed to International Market and from today we decided exactly that. The first time banks, very important some of our banks are forced to become Traditional Company and now they are open to International Markets and international investors. This is a very radical change in the traditional system. So article 84 jobs market. Fiscal system for the International Brand if you are International Brand you can apply the comply the compliance in relation with the physical system in italy. This is important because its very complicated and confused. So with the compliance and relation we change the approach the change of popular banks and the idea of finally if you invest in italy youre not worried about that but you have a possibility to invest. On this Tuesday Morning lets look at how european shares have been trading. We have been losing steam. Look at the stocks up 600. Which did close at a multiyear high. Right now trading flat on the day. Some traders i speak to this morning seeing a little bit of nervousness ahead of the European Central bank meeting tomorrow. The expectation is for full blown quantitative easing for a bond buying plan to be unveiled by mario draghi but theres still uncertainty on whether mario draghi will deliver the goods. In terms of equities where were seeing the gains and losses. The ftse 100 up about 35 points. We do get a read on the health of the labor market in the u. K. In about an hour. That can change that here in the u. K. Xetra dax down. It did come in better than analysts were expecting. Thats one of the reasons we saw it trade in positive territory. Italy seeing a gain of around 20 points as we were just hearing mateo renzi talking about labor reform. That helped the italian banks move to the upside. Taking a look at treasuries uncertainly over whether the ecb will be able to push through with its reform with its quantitative easing despite push back from policy makers. That resulted in system of this rotation out of equities and into treasuries. Take a look at the 10 year german trading at. 46 and as you can see how bonds in italy and japan are trading. We havent seen a big move in the yen given what the boj said earlier this morning. 10 year treasury yield in the u. S. Below 2 . Heres the move in the currency space which is so much of a focal point for investors. We saw the euro break 115 against the u. S. Dollar the first time in 11 years. In terms of putting that into perspective the euro lost about 18 against the u. S. Dollar since may of 201. But how are we trading ahead of that tomorrow . The euro is holding on to 115 strengthening against the u. S. Dollar. The big story really has been in the oil and commodity space. In fact wti crude yesterday closed down by 4. 7 hovering around its lowest level since april of 2009. Interestingly enough the u. S. Earning season kicked off and energy so far has been the weakest sector because of the significant decline in oil prices layering them on. Right now were looking at gain across the board. Wti crude trading higher by 1 . The international gauge on oil, brent crude also higher trading at 48. 67 up about 1. 4 but if you want to know where investors have been looking for safety it has been in gold. Right now at 1,299. A gain of 6 but keep in mind gold has seen a gain of 7 over the past seven days. The best sevenday run for gold since 2007 indicating a flight to safety among investors. Now of course as i have been saying ecb is the meeting everyone will be focussing on. The governing Council Member warned investors not to get too excited about the Central Banks meeting tomorrow. Speaking in vienna he played down the hype but said the meeting would be interesting. He said he didnt see deflation in the euro zone despite low inflation. Now, julia, you have been speaking to various executives as well as leaders on what to expect tomorrow. What has consensus been so far julia. Well, its interesting, isnt it . As you quite rightly said. Interesting is an interesting word to describe what were expecting from the ecb this week. You know around 50 of investors expect the ecb to disappoint. It will be interesting to see how the market reacts to this but Monetary Policy is dominating the discussion here at davos. Listen to what some guest versus been telling us this morning about what they think as far as Central Banks are concerned here. There was a question of doing it while the markets were open. It was extraordinary. I havent met one person that really understands how that was done and why it was done. Theyre going to be on the short end because its been a very drastic move and abrupt move and the businesses didnt have the time to atest to that in the short period of time. In the longer term one has to look for more efficiency and focus on the strengths of the country. The country and exports have always been driven by quality products and not by price. Its important to stay on top of the curve and continuing doing that and see where it ends up. Shortterm not very good and longterm, the strengths of switzerland is not superior. I dont know what these people do and of course the qe program is on the agenda but as we were discussing earlier also i dont know when monetary instruments are the only Instruments Europe should use for dealing with its economic issues. Right now youre gonna ask for my credit card so you can charge me on the down low two weeks later look, credit karma are you talking to websites again . This website says free credit scores. Oh. Credit karma yeah, its really free. Look, you dont even have to put in your credit card information. What . credit karma. Really free credit scores. Really. Free. Credit kari love you . Welcome back to the World Economic forum here on davos. Coming into this meeting one of the key concerns for investors is china. How do they manage the reform process . Do they find the balance between allowing further stimulus and allowing the composition of the countrys growth to change . It makes sense that theyre the keynote speakers here and were waiting to hear what they say about that reform process but the president declared a revolution on energy. How is china going to get away from the heavy use of coal and move forward and how is oil filtering into that. Im joined by the director for china energy. Lets just talk about the International Oil decline that we have seen. Theyll continue to grow as we push through 2015. Its Strategic Asset purchases that we see from china surely too. Its good for china. Theres no question about it because you can look at it. Oil price continue for one year. More than 100 billion u. S. Dollars. So theyre not going to use this opportunity to go abroad to buy oil and in other words the oil prices together was Commodity Prices was also lower. Its good for tentative reform. Its actually the idea of the energy revolution. The main idea is Energy Reforms and low oil price is actually good for Energy Reforms. Well come on to the ideas of Energy Reforms right now. Where does china cast its eye. Its not like we havent seen them acquiring assets over the last decade but if we talk about the u. S. Share boom we look at share prices right now for them and theyre really struggling. Where do you expect china to focus. Also that latin america. We present the opportunity for it to go out. You mention russia there. Weve seen two huge deals in particular. The expectation that russia can supply up to a fifth of chinas gas supplies by 2020. Its been obviously a necessity for russia to look elsewhere as far as the demand is concerned but also pretty opportunistic for china in terms of price. It is. For example it is the market at this moment. Desperation. Desperation. For china, its good that something come from russia for two reasons. One is for security reasons. Theres a border that connects both country and china has the market and russia has the resources. So its quite complimentary for russia and china. Theres good cooperation. You can see even better deals coming. You were talking about how they now move. Theyre owned by the state and heavily criticized for corruption and inefficiency right now. Its linked to what happened for International Oil prices. While oil prices are high theres no incentive to reform. Will it really . Economy grows very fast. Demand grows very fast. Its always something to do. Also happen to be low oil prices. So its two things. Its the slow down and also dont separate those two things. Right, right. Doctor, great to chat to you. Of course the director. Back to you. Wonderful interview. Thank you so much. Now president obama sets out an ambition agenda for his final two years in office telling republicans in congress to turn the page by supporting proposals aimed at helping middle class americans. In his 6th state of the Union Address the president took credit for the improving u. S. Economy. He asked lawmakers to pass programs to impose new taxes and fees on high income earners and big banks but also noted areas where democrats and republicans can Work Together such as trade and Corporate Tax reform. We accept an economy where only a few of us do spectacularly well or will we commit ourselves to an economy that generates rising incomes and chances for everyone that makes the effort. Now on Foreign Policy the president is vowing to continue his push to combine military power with strong diplomacy. He called on congress to lift the more than 50 year u. S. Trade embargo on cuba and authorize use of military force by isis. President obama also called for bipartisanship in Congress Although he took jabs at the new republican run congress. I have no more campaigns to run. I know because i won both of them. [ applause ] of course state of the Union Address a lot of americans watching what president obama had to say. If you have any thoughts on the state of the Union Address, his 6th address email us at worldwide at cnbc. Com or you can tweet us at cnbcwx and julia is also on twitter. Now lets get out to julia who is live in davos. Julia, are you keeping warm over there . Im doing my best but a hand rubbing going on right now. But wait and ask me again when we get to 10 00 london time because then it starts to get quite chilly. I spoke to the Prime Minister of italy yesterday. We talked about the banking reform that he announced yesterday. Crucial reforms that have seen the cooperative banks in italy rally some 6 or more in trading today. Its attacking the corporate government structure and hopefully going to revolutionize the Banking Sector and enable Smaller Banks to raise capital which cuts right to the heart of qe. There isnt going to be the filter through to the economy and one of the other issue is the president ial election coming up shortly. Obviously in italy as far as i can see, no one there is really talking about the prospect of mario draghi taking the presidency. I did ask whether we could rule draghi out as far as the presidency is concerned. Listen to what he had to say. I think mario draghi is a great man and the leader of ecb and in the next years hell be the leader of ecb, the president of ecb. Im now joined by the ceo of one of the two largest banks in america. Carlo, great to have you on this morning. The Prime Minister of italy said to me yesterday this is a revolution as far as the Banking Sector in italy is concerned. Do you agree . Yes its a revolution because it is looking at the market and the Banking Sector was not looking at the market with a friendly approach. Now it is open to italy. Thats a broader structure. It is also related to the ability of the government to deliver perform or something not made in the past. Its a move very important for italy. Also italian banks are still overloaded with nonperforming loans and that goes to judicial reforms. Were addressing one. It was also a reduction with a former government. In any case it is a long time. We are recreated so in order to work with them and are not interested in that structure. This goes back to the point for the ecb and you look at the largest 15 banks in italy but what about the others. It comes back to qe. You have been arguing we need qe for more than six months. What do you expect from the ecb this week . In reality were already in the qe mood. It comes from the expoint of view. They reach the evaluation of the euro which is the real target to increase real economy. So these will be the formal decision on quantitative easing and im sure they would take this decision in the next meeting. Theres a lot of questions over risk sharing. Whether we see risk sharing between the ecb and national Central Banks. The imf have both come out and said there shouldnt be risk sharing. Where do you stand on this . Absolutely. There shouldnt be a risk because otherwise you have not unity. It would be crazy. I think that it is not good idea. Why are germany continually undermining the european project. A gain here if they say we don want to only tally in risk. Why should investors only tally in risk . This is the problem, isnt it . But you have to consider the zero rate environment for the german economy. In the end, the institutional investors, the Big Insurance Company are investing in zero rate and in three years times theyll not pay pensions in this country. Its very important that we come out and we recover in all of europe because in the end all the European Counci