>> the place to invest in the state of union address. president obama says the u.s. is more attractive than china. >> the fed chairman closes out his term. a bond purchases and the forecast for today. currency soars as it almost doubles its key interest rates. welcome to "countdown." 6:00 here in london

this wednesday morning. covering ben bernanke's last stand as fed chairman. top executives are coming together in frankfurt today to discuss the results. we have a look ahead. >> he has the details on the move to raise rates in turkey. it is a slow turnaround for yahoo!. are continuing to spend their money elsewhere. the ukraine is celebrating the prime minister resigning but vows to topple the president. we will look at the country's political and financial crisis. >> let's take you a little bit about what is coming up later. hans nichols will sit down with anshu jain. havee second hour, we will

joe jimenez. europe's biggest drugmaker novartis -- $1.20. analysts are asked -- are expecting a little more. $2.96 billion. sales are growing by four percent which is aligned with the custom is -- the company's estimates. it is the lowest single digits rate in 2013. low to midising single digits in constant currencies as well. the dividend put forward by the 2.45.y is

this is a company that is going very -- going through a transformation. es theyeathering the loss received on its medications. and a cancer drug are trying to offset the decline in loss of sales because of the loss of excluded he -- of exclusivity. the take away is earnings are in line with estimates. president obama wrapped up his state of the union address just a few hours ago. he urged congress to back to priorities -- two priorities. more authority for his administration to negotiate trade deals. to work together on tools like bipartisan trade promotion authority to protect our workers and are in firemen

and open new markets to new goods made in the usa. [applause] china and europe are not standing on the sidelines and neither should we. sticking with the u.s., it is the first fed policy decision of the year. it is the last time ben bernanke will cherry. -- will chair it. we are joined now with his take on the change of complexion of the fed. over that there is been a change since the beginning of this year. talk us through why it matters. is -- have a look at the pictures.

sandra can a lot of from cleveland -- they all get a vote this year. it is the complexion of how they view the world which i think will be janet's problem. werer and the others discenters. she is probably a little less the more accommodative in terms of perspective. by fivey raises rates percent last night, i wonder in the past 24 hours has the discussion moved to what is happening in the rest of the world or is the fed so immune to the reality? it is about growth and unemployment. let's be clear about the what the fed of -- about what the fed's mandate is. really fisher does not

mind too much about market corrections and that is from his recent record. he would not flinch to move. 500ging markets and the s&p have seen quite a start to the year. look through the noise of the economy in the unemployment. andis reading the situation as long as things don't change, they will go with it. >> what are the markets making of this? >> treasury aren't as high as they were. they peek out at the start of the year but we have seen treasuries go up. interest rates from spiking -- how to save that? there is a lot of data. there will based -- they will become the -- contemplating. confidence is running out of

despiter high expenditures on long-term goods. there is a lot to play for. the question is can they stay strong? >> the citigroup economic supply index which measures how much of a degree -- >> that is the point. >> they were at a two-year high in the middle of the month what it has come down -- but it has come down. bankst last week, deutsche reported earnings and they showed an unexpected loss. executives met in frankfurt to discuss that as well as new initiatives. what is going on there? to find outing later today. when you sneak out results on a sunday night before -- it is never a good sign for the overall health of a bank.

we saw that loss of 1.1 5 million -- billion euros. that would come down from almost 600 million from where estimates were. down about 16% and it is really the story of fixed income trading. it was down some 30%. these are the types of questions we are going to be probing. it is a two-hour press conference later today and that is why i am here. there are a lot of questions. when that news came out last week, deutsche bank's stock dropped five percent. they will try to arrest that slide intimates investors at the banking climate is better than the initial results would suggest. >> that was 10 days ago. what are we going to learn today? few numbers we don't know. we don't know what compensation is going to be.

whether or not there will be a dividend and what pretax income is. we only have some of those numbers. we will get a better picture of what is happening and then after that press conference, i will be sitting down with one of the co-ceos. i want to know what those capital ratios will be. what are they going to be to a bank like them? will they be under more pressure and more stress? >> thank you. just a reminder, he will be sitting down with anshu jain later today. the turkish central bank nearly doubled its interest rate. that is a big move. >> they have moved hard. what they call their benchmark has gone from 4.5% to 10%. 7.5% to 10% but

numbers aside, we were expecting a move, but we weren't expecting a move this big. 3.5% and that main been sparked, you are looking at a 5.5% rise. this is real crisis stuff. you see the biggest pop in over five years, not only against the dollar but the euro as well. >> what about the lack of credibility ahead of this and if it -- have they gained any? >> you have the prime minister -- a lot of people were saying he was leaning on the central bank not to put rates up. >> he said just yesterday he had always opposed higher rates. >> whether he wanted this or not, he knows that a political and economic crisis can bring down a political career. his career is built on the

foundation of an economic crisis. 2001 when the imf crashed with turkey. he will be well aware this. you don't raise 5.5% percentage points you don't think something is seriously wrong with the economy. >> the economy raised about five percent under his tenure on average a year. >> a lot of businesses had debt. as well is going down like turkey focusing on interest rates. they want to focus on growth as well. >> not quite drastic numbers. inof the central bank came to intervene and they sold about $3 billion against the lira. it's loaded down. -- slowed it down. is this enough? >> i think at the last count there are five levels of

interest rates. >> benchmark repurchase rates and this one was at 10%. >> the analysts were certainly confused. >> it seems to be catching. thank you. >> we are going to talk yahoo! and the ukraine. we have caroline hyde. >> we will be digging into yahoo!. marissa mayer managed to increase users at yahoo! -- 20%. not so with sales. she is not managing to bring in the advertisers. they are going to google and looking to facebook to advertise rather than yahoo!. what is she doing wrong and what is she is trying to do to turn this thing around and why she is not employing -- operating -- a new operating officer. we get more concerns about ukraine. investors itells

is now a good time to buy ukrainian debt even if protesters are celebrating the prime minister's resignation and promised to push on with the campaign to topple the president. >> thanks. >> more on yahoos latest earnings. we will see if your a semi or can turn the company around after more than a year and a half at the helm. ♪

>> time for today's company news. mercedes-benz has left the company for personal reasons. andad the job for a year was in target to meet the 2014 2 billion dirt -- 2 billion euro target. a former foxconn detective -- executive was detained yesterday. he was the second former employee held in investigation for brought -- bribe. allegations. ao.com is sleeping an initial public offering evaluation.

that is according to the financial times. that baidu asian -- that valuation has three times the annual revenue. >> it is sick 16 a.m. here in london. earnings from london -- earnings from yahoo! came out. they fail to get more advertising dollars. here with more is caroline hyde. still no growth? >> 18 months in and she is managing to get more people visiting the website. they got more than 80 million average users per month but advertises a not responding. more andike google facebook. even though in july, young will actually eat google in the amount of users it's got, advertisers are still not being leeward -- lured. their share over to digital

advertising business is not good -- much slower than the market is growing. they are expected to increase the digital advertising business by four percent this year and that is about one third of the pace of the entire market. i think the key line is that concern to many those of selling the shares was the concern is -- it will take years for yahoo! to reach a desirable level of growth. stagnant sales in the fourth quarter -- growth of less than three percent. sellt is up but having to -- it is all down to their holdings and their holdings in japan. -- they are seeing sales up 21%. months in, marissa mayer has been in the job, tell us about

the other management figures. >> she actually brought over the coo from google. we know there were tensions inside of yahoo! and she claims in a conference call that he was not a fit for the company. he will be replaced. she is take -- he won't to be replaced. the head of asia-pacific will report directly to her. she wants to get a grip of this country -- company and drive growth for self. ways businessil to better target already insists appeared they offered -- target audiences.

they were on a spending spree. 19 companies they bought. she spent $1.1 billion on tumblr. site andall blogging that is the entirety of what their sales will be in the first quarter. >> they are spending on buying businesses, new advertising. >> recipes and trends in cuisine. yahoo! foods channel is what they launched. they also are trying to attract more users by offering a new service about consumer technology. if they want to know about the latest tablet or iphone or ipad. eatn't know if you should it at this time in the morning. itthey are trying to fix with acquisitions.

they also bought many mobile applications. a teenage man who set up the news reading site. she is trying to get growth but it will take a few years. investors have to bear with her. 70% but it was about was about 45%. she is still outperforming her peers for now. thanks. ahead, protesters in ukraine celebrate the prime minister's offer to resign but are still pressing on to topple the president. we will go inside the political and financial crisis next. ♪

>> welcome back. president has failed to quell nationwide protesting calling for his resignation after days of concession at including the departure of his prime minister. more with the aftermath. >> most of the action was in the parliament. we got two big moves. one was rescinding that anti-protest law that sparked the most recent violent protests. that is gone. the second thing is we got the offer from the prime minister to resign. the president has not accepted the resignation yet.

the protesters celebrated both of those moves, however, they intend to push on with their campaign to topple the president. the turmoil is not over yet. >> what is the story in the debt markets? >> if you look at ukrainian bonds, they are the worst-performing bonds this year in eastern europe. fourth worst in the world. investors care about not the protests and the turmoil, but the likelihood that the government will pay its debts. paymentstop for that was russia's offer of aid back in the middle of december. what if the opposition does get power? president putin was in brussels talking to the european union and the bass and he says even if the opposition takes power, they will stand by that eight. aide.

iny saw the biggest drops the ukrainian ten-year year bond since he first made that offer back in december. >> many people were asking questions at the time the aide was offered about what conditions might be attached to that. let's talk about europe. could there be a position for the eu to write another backdrop? >> if ukraine does not find that association agreement, that trade deal, with the european union -- he is operating practically here, not ideology. they do have the prospect of a bidding war. they are talking to e.u. countries about sweeping its financial assistance to the west. you might have a recognition in the european union that if they want to win over the government or help ukraine, they have to also give him some cash.

>> president obama wrapped up the state of the union speech a couple of hours ago. he covered the nation's growing inequality. stay tuned to hear his comments next. ♪

>> these are the bloomberg top headlines. barack obama delivered his annual state of the union address. they needed to narrow economic disparity. >> i am eager to work with all of you but america does not dan still in neither will i so go withoutcan legislation to expand opportunity for more american families, that is what i will do. >> they raise their interest rates and the move to hold the lira. they raise the rate to 10%. it raised the overnight lending rate to 12%.

deutsche bank will hold a news conference later today. they're -- we are expecting more details about the reason behind the warning and the banks outlook for 2014. man,l be speaking to this the co-chief executive of deutsche bank. welcome to "countdown." >> it is 6:30 a.m. here in london. president obama wrapped up his state of the union address just a few hours ago. he called on congress to join him on tackling income inequality and warns if they don't help, he would do it alone. hans nichols joins us now. he has much experience covering

the white house. what are your thoughts? >> my first thought is i was finally able to sleep there tonight. the substance of these speeches are quickly forgotten. what is important is the tone he struck in the tone was clearly a defiant one. this is a president who was fed up with dealing with the republican opposition that he has had to interact with for the last three years. and ite was any news really captures what the president is trying to do which is increasing the minimum wage for federal contractors to o $10.10. those are only a couple of hundred of thousands workers. it was the theme of income inequality that he struck throughout. >> after four years of economic growth, corporate stock prices have rarely been higher and

those of the top of never done better. average wages have barely budged. inequality has deepened. upward mobility has stalled. even in hard fact is the midst of the recovery, too many americans are working too much just to get by. too many still aren't working out all. speech asthink of the framing up the debates for the 2014 midterm elections, here is one fact. if you look at the 2010 midterm elections, 64% of voters made more than $50,000 a year. compare that to her presidential election, only 59% of voters made more than $50,000 a year. what you see in midterm elections is a richer and older, whiter electorate. that could mean that obama could have more opposition in his last two years of his presidency.

>> what does this mean for the president's legislative agenda? >> there is one point with the president was less defined and that was the issue of immigration. if there was one part where his tone clearly departed from the the fine tone was on -- the defiant tone was on immigration. them to come together on a comprehensive immigration reform. that is the one place where he held his fire, created some space, and was muted in his criticisms of the republicans. he knows he needs them for this legislation to reach his desk. >> thank you. >> that is up to the israeli networks security firm reported earnings that beat estimates. a big week for israel and cyber companies.

elliott has more. doctor whoned by a is corporate vice president at enc. good morning. we are talking about this making $1 about billion in the university. what is that money for? >> of this money is for research and development at the university in the areas of cloud computing and cyber security. areas --n why those this is where the information technology is migrating to. that is the need. the university is very strong -- bigber and they gav - data. >> earlier this week, you met

with the prime minister and -- the prime minister of israel. did you see anything that took your fancy? any cyber companies take your fancy? >> i think a lockheed martin, enc, i would say the prime minister -- we were looking together at the venture capital community and many of the companies and there is great strength year. here. israel is built on acquisitions and a part of a security division is a result of the acquisition of toyota. speaking of the prime minister, we were speaking with

them the other day talking to them about the strength of the israeli currency. it's the best-performing currency in the world over the last few months. how painful is the currency? allt is very bad for exporting companies because our currency makes everything done in israel much more competitive in the cost performance area. that is a killer. if the local industry, multinational, electronic industries, we are all pledging for the government and the bank of israel to take the right measures to put us back into the competitive zone. it has been an attrition. >> the prime minister actually exportershe tells

that ultimately you have to adjust. >> there is always an adjustment. there are some adjustments we don't like to see and that is shrinking. we do see occasional shrinking because of the adjustments. >> are you laying off people because of this? >> we are not shrinking at this moment because we have some very critical technologies and we are scaling the mountain other markets. always the question comes up regardless of the talent in israel, the cost is a major issue. >> would prevent you from investing more? >> it will cap the investment because you always look at the return on the investment. -- return on the investment if the key element in the high-tech area is human capital

and human capital is out of range relative to productivity than you cannot work that way. tarnishedf israel has the high-tech sector and there are almost as productive as they is in the united states. think about people working and still not as productive as the united states. it is all about the currency. they are watching and listening. thank you for joining us this morning. back to you. >> thanks. next, turkey central bank raised all its main interest rates in an effort to stop the lira from sliding. ♪

>> time for today's company news. barclays is planning to cut hundreds of jobs at its investment bank. the cuts will include directors and managing directors. they are also reporting that the uk's second-largest bank plans to cut parts of its branches

across the country. a drugmaker says fourth-quarter profits have weakened against the dollar. earnings fell three percent of missing analyst estimates. we will be speaking to the company ceo later. least $2could fetch at billion for its commodities unit after receiving several bids. jpmorgan has decided to sell the business as regulators review a decades-old ruling. welcome back. >> we are taking a look at turkish debt. surged afterira they raise all of its main rates in an emergency meeting last night in efforts to boost the currency. bank of, let's bring in america strategist john. them, local

currency debt is rising the yield to about 10%. it has fallen in the last couple of days to 5.6% would you dig into either of those markets are not? >> the move in interest rates has been very large and i think we will need to see how things settle down once everything has been recalibrated. is at theally, turkey epicenter of emerging market worries and word was starting to spread and contagion was becoming apparent as well. the fact they moved to so dramatically to try to shore up the currency, address inflation concerns is generally welcomed and that is the reaction we are seeing. >> other trying to fight that? >> that was one of the issues of tapering and tiptoeing towards conditions in coal markets.

that means spilling over into the emerging markets. the money that has been flowing into those markets have been coming out. they will need to react as they see what impact the feds decisions and moves have on their economies. part of the reason that turkey was in a position they had to react like this was an indirect consequence of what is going on in the united states and that is a reminder the central banks try to remove themselves from these policies. it will be a different -- >> how do they differentiate between the emerging markets spaces in 2014? turkeyl this move it was that was the weakest point in the chain. i think people still try to look at the underlying dynamics. there has been a massive increase in reserve accumulation

over recent years and a lot of these emerging markets and that gives them a much greater ability to defend their currencies and to react when there was excessive weakness. it is being done on a case-by-case basis and that is the right way to do it because when you had such extreme policies, when they spread far and wide, there will be some unpredictable changes. >> should the fed take note and not taper? >> they will take note. anything that happens in emerging markets will have consequences into the u.s. as prospect of recovery because it impacts the global situation. moveately, the fed's will be predicated on what is going on in the u.s.. although data has been a bit mixed and people are suspicious about how much that is played a part in that, it will take that course.

>> emerging markets will only change the speed at which the federal reserve starts to taper if they start to look at damaging u.s. growth. andll central banks governments have to set policy and make decisions in the wider context. >> let's learn a little more about what we are going to see from the fed. this is ben bernanke's last meeting at the chair. research about in 2006, alan greenspan left on a high in history has not been that kind. is ben bernanke going to be judged by the markets as he steps away? thatthink in some ways jury has to remain out because we only started on this road of tapering, nevermind trying to normalize rates which remain at historic lows. and the fed will be

glad they have managed to get onto the road of slowing down asset purchases. they hope they can stick to it over this year because as a very unconventional monetary policy with some of these consequences we have been discussing, they will be relieved to no longer be using it. they can then start to focus on rates. i think he had to repair a lot of damage and address a very bad situation and it is coming out. >> the new one of coleman rate -- 6.5% unemployment rate seems to be pushed to the side. inflation is still too low. it is half of what it should be. >> even though growth has been robust and been improving to a large extent over the past year,

the fed of members expectations about the long-term level of fed funds, they have been getting pushed further away and pushed lower. that is partly because there is still some feeling -- they are feeling their way about where inflation is and when it will merge. they are below target and falling. this is why the taper is a relief to them. they are getting away this policy of asset purchases so they can firkin -- focus on monetary policy. they will move from a really -- original unemployment rate to something more qualitative and it will improve price pressures and inflation. unemployment and the u.k. is falling more rapidly than most economists have been predicting. what do you think we will hear from the bank of england that this week? >> going into next week, there will be another meeting.

we have heard from the governor understandably given -- they will be involving forward guidance. --hough we have had this much better labor market performance, there are still plenty of reasons for them to be concerned and cautious about the outlook. real wages are still negative. the labor market story is a more detailed one and i think they expectations.n whate returns of 2014 -- is the best case scenario? >> we are defensive of these core markets. we've seen the corrections to lower yields at the start of the year because of these emerging markets. it is not going to be a smooth road we think the u.s. recovery, the u.k. recovery, the eurozone recovery are widening.

they are coming back from the to low levels to healthier levels superabundant master, that means shorter durations, not exposing yourself to what the impact of high yields will be. >> thank you. coming up, a new study -- >> people of the u.k. are nicely making money in new age hospitality. what is that? you will find out next. ♪

>> welcome back. >> it is newspaper time. about an hour away from the u.k. equity session. >> the wall street journal has weighed into when it is appropriate and how to diebold a secret. -- divulge a secret. 95% of the people they polled have secrets. five percent think they were lying about not having secrets. we have to tell her secrets. we are driven to tell our secrets guys we have the purge that stress. we must tread carefully and be careful -- if you are going to hurt someone or if there was going to be no net gain in telling your secret, the word is to not tell it.

>> not all secrets are crated equal. -- created equal. >> what is your biggest secret? >> he is not saying. >> in china, it would seem that still advertising when you go for jobs, it says men only. they have the first win for gender equality case. becausehas won money she was told they could not hire her and they needed a man. 90% of female students in the 2011 poll feel they have been discriminated against. this is something the communist party is trying to push for -- hire more women. >> giant leap for women. this is the rise at a b&b

taking off in the u.k.. the average people are making on 800 pounds a year. but that is averaging out for 33 nights -- renting rooms for an average of 33 nights. this money allows them to stay in their homes and some even pay bills. keep your eyes off that. discovered in new faces which was the equivalent of britain's got -- britain's got talent in 1975. he is a tv comic and he was named best actor at a big award ceremony last night.

what a transition. comic to serious actor. >> we continue in the next hour. ♪

>> president obama the u.s. is more attractive than china. >> last call for ben bernanke as he closes out his term. today.ecast later lire soars up to the central bank hikes interest rates. a drugmaker has profits dropping in the fourth quarter. we are going to be speaking with the company's chief executive.