>> 15 million iphones are not enough. apple shown -- shares plunge after hours avenue -- as estimates ms.. -- miss. setting aside more than 3 billion pounds for legal costs. >> from your's biggest nehring the money, -- from europe's biggest engineering company, breaking right now. >> welcome to "countdown." i am mark barton. >> is 6:00 a.m. this tuesday morning.

in berlin, hans nichols will give you numbers from the -- breaking. >> digging into apple's disappointing earnings as well as looking at the ikea earnings report. focusing on the turnaround out -- effort at rbs. >> we have a couple of big interviews this morning on "countdown." , someone fromes unilever. >> chief executive stephen stonehill will be joining us. -- ind us that in u.k. october that u.k. is far from a housing bubble. the biggest making of -- maker

of lighting equipment, philip. it looks like there beating earnings reports. that is including -- excluding items for the fourth quarter. 915 million euros. analysts were expecting 874 million euros. they were able to increase dividends 80 euro cents per share. the targets were to achieve a and 12%. of 10% its target to 2016 is to achieve a margin through 11%-12%. this is the company that is focusing on health care, lighting, on consumer lifestyle as well. i will be asking be coo frans figuresen all about the in 15 minutes time. don't miss it. >> we are getting earnings from

your's largest injured hearing -- europe's largest engineering company. continuing basis is 1.2 9 billion euros. it is ahead of estimates. weis the first quarter that are getting a full quarter from the new chief executive. an august. shares are up 17%. profit beating estimates largely helped by infrastructure demands. they say that short cycle margin -- market recoveries help with the full year. they're going to and their nyse stock exchange listing. currently less than five percent of their shareholders in the united states. they're going to be delisting their apr's from the nyse. seen sales we have overall it is a beach.

let's get more on those results from siemens. the first fourth quarter as a chief executive and it seems the company is doing well. >> he has something to show for it. he is the last that he is delisting from the nyse. he does have a plan to go ahead and increase the employee's amount of shares. i don't know if delisting from new york as part of that. is 5% trading that takes place in new york but it looks like these are overall strong numbers and strong on the income from. revenue is down a little from last year but i don't think we should get tied up in that. there's concern about potentially currency eating into profits that did not seem to happen. this was his first full year. stock is up 17% since he took over.

we haveit looks like particular strength in the infrastructure and city unit. they're making progress in terms of their trains. they delivered for trains. i know mark barton is a big train fan. they have 12 more to deliver. we will pick through the numbers and maybe get a more comprehensive explanation for why they are delisting from the new york stock exchange. they will stay listed here in several exchanges in europe. we will dig through the numbers and see how the stock reacts. overall if you are looking for a story of the recovery in europe, this could be a bellwether. this could be a good sign. >> thank you very much. newes up some 17% since the chief executive took over. >> i was certainly into hornby trains when i was young. not trains of the bigger variety. >> hornby trains is bringing back manufacturing.

>> i miss those hobby trains. it was bad news for the world's most valuable company. lots of hits and bob's here. >> i will give you three words very oftent to use and that is iphone sales disappoint. it is important because this is the golden cash cow. it is over 50% of their revenue. on the revenue side we see another disappointment. expected to come in low expectations for this quarter. you could have the first quarterly sales decline for .pple since 2003 if you are looking at the smart phone market where the majority of the revenue comes from, we see they're losing market share. one billion smartphones shipped last year. has loweredet share to 18%. you're talking about larger screens and lower cost.

apple do not feature in the space. >> they need to bring out a new team-changing product? >> this is what investors are saying. they have not entered a new product categories is 20 game. it is significant because they have not launched any product since steve jobs. can they innovate? can they go forward without him? that is a big question. we discussed lack of innovation whether they can go down the mobile payment through. tim cook commented that on yesterday -- on that yesterday. he said the fingerprint sensor had been into the iphone 5s with that in mind. he said that innovations have never been stronger. if you look at the stock price in after-hours trading, really, that is the investors voice in about what they think about what is going on at apple right now. >> the market saw 41% increase in smart phone sales in 2013.

thank you. >> world bank of scotland, britain's biggest government lender emma is on trial for its -- -- we will break the numbers down. is this legacy issue still continuing? >> that seems to be the sentiment from a lot of analyst. a lot of these figures are numbers without we would get over the next years. pages ofing the front all of the keypress. this is the "telegraph." takes the lead story there. the journal on the far left. what we are seeing is a clearing of the decks for ross mcewan. the overall figure is a potential loss of up to 8 billion pounds.

it has been rollcall of misdemeanors that really come up here litigation, payment protection, and ms. selling our key issues. >> capital is now very important, isn't it? the estimate at the end of last year's coming down. >> it is. payinge bank has said is for our misdemeanors is expensive. it is the buffers of capital will let you have, it will some -- it'll come in somewhere around a .5%. you will catch up with mr. wheeler later. been a force, rbs, to accelerate the process of selling their assets. their -- inosing of connecticut. will they have to go for a sale? capital is going to be critical, critical issue. >> clearly a measure of financial straight -- strength.

what about the executives? they are taking a hit on their financial accounts. >> the executive board of are going to take no bonus. in many ways they're trying to take the demonstration of take no payment for historical issues. the good when era. -- fred goodwin air is when a bunch of ms. selling one on. went on.ling in other words, your base salary plus 100% of that again. >> does that remain competitive if they're going to keep talent? >> as someone who used to receive bonuses and work in a competitive environment, there is no doubt about it. the ability to pay your staff market rates so you don't leave and go to a competitor is paramount. --y need to remain images,

remain committed, and competitive in the marketplace. david cameron has recently said if there is any proposal to increase the overall pay, and paid being pay and bonus, we will veto it. i think there are a number of issues. areery quickly, the shares 20 sit -- 20% below the government breakeven level. what does this news mean for plans to possibly get rid of the stake. >> it was it further and further away from george osborne's grass. potentially before -- grasp. mentally before the next election. i've seen someone delivering a note saying that they will deliver capital. that they will move forward, but for now those plans look further and further away. i will leave you with this -- i know that people in london and the connecticut office and they say the at mr. within rbs is fairly turgid.

people are not in good form and there is a sense of foreboding around the institution. >> thank you very much. we will be spoken to chris wheeler and much more about this going forward. >> we are going to check in with the chief operating officer of phillips and we will get reaction to earnings that broke just a few minutes ago. ♪

>> time for today's company news. stmicroelectronics reported a $36 million fourth-quarter loss. company racked up more than $1.6 billion in losses over the past two years. comcast is nearing a deal to buy cable assets from charter communications. but if charter's takeover makes the time warner cable, it goes through. cable assets are in stake in new york, north carolina, and new england. general motors is sticking to its plan for a european plan.

the chief executive officer confirmed they will build an all-new car in germany. the company is investing $4 inlion in -- 4 billion euros an effort to restore earnings in the region. >> welcome back to "countdown." i am mark barton. >> and i am caroline high. -- hide -- hyde. >> prime minister david cameron said that the economy is recovering but there is further to go. how sustainable is this recovery? >> that if the question. you will not get the same trajectory you got in 2013. that is the notes coming through to me. sweet in a suite spot -- spiritut this animal

that we have in the economy will be hard to replicate in 2014. if you will see a continuation of growth and i think that is the critical issue for the marketplace, here, what we have got is the view from -- >> analysts have been changing the recommendation on the gdp. >> let's go straight to that. >> wehner we going to see a rate hike? but theree job growth is no immediate need, which means wants to months guidance bringingmpc, they are it to the fourth quarter of this year. there were three big calls of the end of last week. there are out there by 1% at the end of the year. there is the growth figures as well. you will see that slight slippage in terms of performance of the economy.

let's get back to the rate discussion. as for the market -- >> the key piece of data, the bank of england has been focusing on is approaching 7%. this is the time where the team has to make big decisions. >> phase 1 -- forward guidance was inextricably linked to the rate of unemployment. the debate is this -- as to whether they change that linkage and some say that is no longer tenable. what we are going to look at is a little bit later, in february, -- --they're not going to they're going to look at a myriad of data. >> i think that is a good thing. not that i'm a fervent supporter of george osborne, but i concur that when you are talking about the ability to change the ability to look at raising interest rates, you are dealing with an economy that is healing. it question is not -- is

healing widespread? that is the critically important issue. >> many are saying that we are seeing unemployment having down, but wages are rising and business investments are not rising. >> it should begin to rise coming at the end of this year. president barack obama will be delivering his state of the union address tonight. you can see that at 2:00 a.m. london time. >> india has unexpectedly raised rate to fight inflation. ♪

>> welcome back to "countdown." time in london is 6:22. let's talk about phillips. we had earnings at the top of the hour. the world posture biggest maker of lighting equipment. van houten joins us now. did you see improvement in all three of your divisions?

yes, indeed. we saw 7% wrote overall for phillips. it is strongly driven by the consumer segment. that it wouldght be more back and loaded in the year -- back-end loaded in the year. andad our midterm targets improved operational results by 20%. ourre well on our way to accelerated journey to unlock the potential of phillips. >> you reached your targets for 2013. that is a positive. you use the word cautious for your outlook on 2014. tell us about that. why did you experience a softer order intake at the back end of the year? >> well, we see that the world is still an uncertain place.

for example, currency movements like an ardent sheet -- argentina last week make customers cautious. it is not just us that is cautious. in north america we see health care reform going on with hospitals consolidation -- consolidating. nevertheless, i want to portray a confident outlook because with our innovations, they are playing into the trends of the stuff that the world needs. i was in france last week and there was a lot of interest in our energy-efficient led lighting. city mayors who want to replace their streetlights such as when its areas are upgrading in order to save 60% off their electricity bill. hospital systems are lining up to use our know how to improve the delivery of health care. on friday last week i signed a contract with the -- with a group in russia in order to help equip a series of right clinics to -- private clinics to extend

better health care to the russian people. we announced a business group that will unlock big data for hospitals in order to help doctors and new -- nurses to take care of more patients at lower cost. phillips is changing as a company. we are becoming more of a solutions company more and the lighting in the health care space and that will help us to to higher growth. it is just that the year all-star in a modest way given the uncertainties in the world. >> q expand on your assessment of emerging markets as you have seen in the news in recent days? you mentioned argentina. we have seen declines in ing market bonds. how worried are you by the recent flareup in emergent marching -- emerging market concerns? to say. hard i know that is not an answer that you perhaps want to hear.

phillips grew 15% in the fourth quarter in the emerging markets. overall phillips is now 36% of its revenue achieving that in the emerging markets. currencyme time, when moves by 30% any week we need to see how that will recover. i think we will see swings up and down. therefore we need to adapt ourselves to be locally relevant with our innovations. also, look for new business models. with that i mean, for example, we can sell light as a service rather than selling the equipment. we rent the equipment, we sell energy-efficient lighting often supported by financing institutions like development banks or the ifc and this can help us to grow in emerging markets regardless of the swings. chatting withor

us today. frans van houten, the chief executive officer of phillips. >> the company that makes the apple iphone -- ♪

>> and these are the bloomberg top headlines. after setting aside 3.1 billion pounds for legal compensation plans. the provisions include 1.9 billion pounds for law fees and fines. and apple are among the tech companies that have won permission to disclose more about u.s. government requests for data under a new agreement with the just apartment. companies are allowed to say how many accounts are covered by the request and whether the content of user communication was stored .

from mainlandd china tested positive for the avian flu virus. this comes shortly before the lunar new year celebration. >> welcome back to "countdown." i'm caroline hyde. central-bank -- india's central-bank unexpectedly raised rates. for more on the unexpected hi ke, talk us through the increase. since the time that they have -- septemberto the 2000 13, almost every time he has managed to surprise with decisions. , 42 out of 45

economists polled thought that he would continue with the rates. he has gone ahead and increased the rate to 8%. does not come as a surprise to several of the economists. one said that this is a good, cautious step. they will continue to address the inflation risks resolutely even if the gdp slows. quarter -- and concerns regarding the economy will continue. inflation atmain this point in time. they have also clarified that keeping in mind the current -- off the inflation they see,

there may not be a need to it again increase the rate in the near term. he is taking a hike right now but he is also indicating that for now, maybe they are done with hiking rates and it will be a longer pause in the future. what else have we picked up from them? that is going to be a key concern for the reserve bank going forward. >> thank you very much. the indian rupee getting a bit of a boost this morning. newonn is looking to set up factories. talks to talk -- in set up manufacturing plants in the united states. in would foxconn want to be the u.s. where wages, where taxes are higher? >> you're right. wages and taxes are higher. so the talent pool am especially

in areas such as it fans the engineering, robotics. those are areas the u.s. is very good at. there's a deep talent pool there. if foxconn sets up there they will be able to tap that. while there is a good countable in china, they don't have that special knowledge that the u.s. engineers have. that would be a really big advantage or foxconn to set up there. they could tap into advanced engineers from semiconductor lcd, robotics software. areas that foxconn wants to move into. the other thing is that the clients would like them to be there. dell,ies like al -- apple, hp. they want to show that they are doing more and the the -- more in the u.s.. coveney seth taken heat that -- after outsourcing jobs to china and elsewhere.

>> does that mean that made in the usa will still be stamped on the apple iphone? >> the chairman and founder of foxconn said a few days ago that in fact they will not the labor intensive work being done in the u.s.. it will be capital-intensive. you are not likely to see made in the usa on the back of an iphone or ipad. components such as lcd, semiconductors, and all the other parts ago inside the device that are much more advanced manufacturing type of work, that will be done in the u.s.. the benefit to that is that there is a much better profit margin in the kind of area. >> thank you. >> let's bring it back home. continuing after discussing u.k. gdp. we get figures out later today. we're going to look at why the investment picture is changing.

talk us through the growth recession. you are expecting .8% growth for the fourth quarter. general consensus is about .7% or thereabouts. how balanced is the growth and how sustainable is the growth? thehe figures we got today, big question is whether the service sector is going to rebound after a weak start in october. what we won't learn today is the expenditure breakdown. we do look for the expenditure breakdown, the reality is that a loss of growth so far was concentrated in consumer spending rather than investment or net trade. incentiveed to see an -- when will we start to see businesses getting confidence to invest? with that pick up in 2014? week iswe heard last that they see investment as being something that picks up in the late sector of the recovery.

that is a view i have a lot of sympathy with. i think that the confidence factor is key for investment. the confidence that we have seen from transaction volumes in the housing market picking up and associated spending with that is the sort of thing which continues uninterrupted for a few months or helps create more investment later on in this year and really -- >> the export outlook, according to one economist, it says is the only misgiving. it will remain that it is his investment picks up? is that the only missing piece? >> i think i would be more hopeful for an outlook and -- a pickup in business outlook. from the bank of england's perspective, the the pound may be somewhat of a concern of the depreciates further although it is helpful in terms of keeping their inflation forecast down. since forward guidance was introduced there have been as much as 7% stronger.

modest expectations for that trade. >> phase one is overburdened mark carney basically admitted -- mark carney -- phase one is over. -- phase two, what does it mean? >> phase one was unemployment and i think phase two will be underemployment. i think the theme of the inflation report will be the bank of england demonstrating that a range of measures that show a lot of work as you would work more hours if they were made available to them. market isin the labor measured that way, i think the bank of england will be able to demonstrate that it is not a case for raising rates anytime soon. that is my message. soon.e say any time when you see interest rates being increased -- >> you say anytime soon. when do you see interest rates being increased? are force cast is that the

first hike will be late in 2015 in november. -- our forecast is that the first hike will be in late 2015 in november. we are a little behind the market. i think that is a combination both of the fact that we think the recent pace of growth will not continue under interrupted during a. but also the justifying that the bank of england will want to make sure that they don't choke the recovery. be surenk they want to that market expectations don't run away from them. >> i think the speed at which the employment rate has it that forecast versus what they originally said back in august means that it probably might be that much harder for them to contain the market expectations if we continue to see very strong data. i certainly think that the coming inflation report in two weeks time, they will make a fairly robust attempt to deliver compelling a fairly

phase to forward guidance which attempts to deal with expectations of rates and getting too carried away. it won't want the market to price the first hike this year. >> once again it is carney versus the markets. thank you very much. >> rbf posted its biggest loss since 2008. our next guest says the new chief executive needs to make some bold moves to turn the bank around. ♪

>> time for today's company news. two men were charged in a that allegesrt they try to sell bitcoin to traffickers. foxconn technology group is in talks with u.s. states to bands -- build advanced manufacturing facilities. it is also part of the plan to move closer. foxconn makes the apple iphone.

africa is the source of 70% of global supply of platinum. >> welcome back to "countdown." >> 6:44 here in london. it is set to report its biggest loss since the financial crisis in 2008. tois setting aside billions handle legal and compensation claims. our next guest says there are a few bold moves that he needs to make. we're joined by christopher wheeler. good morning to you. is that it? is the slate clean? as he wiped the get -- as he wiped -- has he wiped the debt? >> i don't think they are clean

yet. in the wording of the release they said that the estimates of the mortgage to go change with united states is a sickly dpi dpi swipesing -- is on going we have a foreign investigation going. i can't believe that we won't have further one-off charges. there is no such thing as one-off charges these days. i can't believe we won't have a few more charges which will claim earnings in capitals over the next two quarters. >> it is been the capital that is your key concern. is about 8.5% if you are looking at -- and above. what are the measures they have to do to boost that? >> 8.1% to 8.5% is the estimate. that's an issue. there are two things they can do. they can either place capital which means coming to us, the taxpayer, which i think is highly unlikely.

the other option is to accelerate disposal of assets. clearly what you'd want to do is to shrink back to business as me u.k.. i think the obvious thing is to decelerate the sale be citizens u.s. business and sell the business to get it off the balance sheet. also to look closely in terms of markets, which he is doing a few of and possibly getting out of the securitization business which is based in the u.s. >> that is a lot of stuff. can you do anything else to boost the bank's by the way shin? is trading below the --ernment's level of >> they will be posting high returns in february. u.k. corporate business is not doing bad but he has got the non-core business which is going

to see $4.5 billion of charges in the fourth quarter. in the markets business, unfortunately etiquette has cost space which massively exceeds the revenue opportunity. they have been forced to push back hard in that division. >> the other big news is that the news that the top executives will not be receiving bonuses. ross mcewan said he would not receive this one for this year or 2013. you think rbs can stake a -- to stay competitive in salaries? is is going to sit with the government or not? >> there are a couple of points to make. i think that does say something to his credit.

i think in terms of being competitive, look, this has been an issue for the bank since it was taken over. the big problem is that if it is not competitive they will lose people who are revenue producers. already tooce is big for the opportunity so increases the downward pressure on earnings. it is a battle but when we are here in february, and one of the statements to get out is to clear the decks because they will have to tell us about the review of markets. they want to talk about strategic stuff then and then we want to hope that we have all absorbed the enormity of the charges they've taken. i think -- holding onto people is always golden the circumstances. >> thank you. christopher wheeler joining us on the phone from london. >> let's look at ukraine. it is on the brink. the country's parliament is set to meet in over an hour for what may be its most important

meeting. >> the emergency meeting happens after the president met with the opposition for several hours yesterday. what are we expecting in today's chapter? quest one of the opposition leaders met -- left the meeting with the government officials yesterday it says it looks like they have the makings of a deal. it is threefold. the government would agree to for the protesters, to annul the so-called anti-protest law that was enacted last week that sparked the protests, and finally they're supposed to be ofe sort of discussion government responsibility which many analysts say could set the stage for a reshuffling of the government. it is important to note that the tally clinch co. -- vitali part --o says he has no integer to be part of the government. not on the table is

that the -- is the president stepping down. as one of the demands the oppositions has asked for for some time or early elections which are scheduled for march of next year. >> what are we expecting today, then? the parliament reconvenes? what is the most and least we can expect? >> the catch in all of this is the expectation for the protesters. the government says they will agree to this if the protesters, one, it looks like they would like them to stop around the clock protests on independence square. two, give up control of government buildings. what they don't want is what you see on your screen right now which is protesters storming a building in the city. it is in central ukraine, a city of about a quarter of a million people. and these battles -- this is the night before last -- have been going on around the country. they want to get away from that. in order for them to do that,

for the government to annul this, they want to see the protesters leave the buildings they have already stormed and not barricade those that they have. when you take the temperature of this thing, one good way to do is to look at bond yields. there exactly where they are today on december the 16th. on december 17th is when ukraine came in and offered ukraine -- when russia came in and offered ukraine billions of dollars. can get back there, maybe there can be a way forward. >> thank you very much. >> coming up, our women any more ruthless than men when climbing the corporate ladder? ♪

>> welcome back to "countdown." i am caroline hyde. >> and i am mark barton. today's picksk at of the newspapers. hans is in berlin. kick it away. >> we have the highest skyscraper coming to germany, coming to alexander plotz. 300 apartments. the entire project will cost them 250 million euros. this is another sign that your -- real estate is kicking off in

berlin. my advice is high and by early. early.and buy >> another related stories said the u.s. men's obsolete team has not won a medal in 16 years. they're going in with bmw technology. put the designer into bobsled two years ago. he said the ride was unbelievably chaotic. he had no idea was like that. is focusing more so the bobsled or scan and the turns. >> i want to know who is making the jamaican bobsled. >> who has his fingers on the future? >> a young briton has his fingers on the future. 400ust coined in some million pounds by selling his

company to google. it is google's biggest acquisition in europe. he has had quite a career. 37 years old. he is a chest progeny. he is a renowned videogame designer, expert computer programmer, and in just a few years he acquired a phd in euro signs. 400 million pounds he has just acquired. of women would climb over their friends and work colleagues to get to the top, a new study shows. to annaonder to happen this week, caroline has climbed over her to get to the top. i am kidding. >> the provocative story of the day. >> 1000 women were survey. 80% of them said they were ambitious. 67% said they would knock over colleagues to get to the top. >> physical? >> were to they get these women?

>> what an ambitious bunch. >> the average age was 30 years old as well. ♪ . . .

>> when 50 million iphones are not enough, apple shares plummet as revenue projections miss estimates. >> the biggest loss since the financial crisis. it is setting aside more than 3 billion pounds for legal costs. >> europe's biggest engineering company says that the prophet at the infrastructure unit nearly doubled. welcome to count down