>> a bloomberg exclusive. the chair at the european central bank supervisory board tells us greek banks are strong enough to survive market turbulence. he says the bank's focus must be on liquid did i. >> they new to manage in a conservative fashion their liquidity position. that is the main focus right now, and they are doing it. there is no doubt about that. >> mark zuckerberg plans to spend big to chase growth. facebook reveals its strategy for investing in messaging advertising and new technology. patience is still the word for

janet yell enand the fed. it is not enough to prevent the biggest two-day sell-off this year as the oil market plunges investor confidence. >> change under the golden arches as mcdonald's chief executive quits, to be replaced by a brit. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org >> hello and welcome do "countdown." i am mark crumpton. >> and i am annie edwards, and i am mannus cranny. we are hope to go get the numbers for deutsche bank. we are waiting on those numbers. it is going to be all about litigation costs of course whether they have been reduced to some 885 million. when we get those, we will put

that all in context. the debate on investment banking, and how much of a hit. >> let's look at some of the other stories we are following. patience is still the word for janet yellen and the fed. patience remains the fed's key word on raising interest rates. the fed's statement noted that economic activity in the u.s. had been expanding at a solid pace, and that inflation would rise gradually towards 29% in the medium term. >> a renewed vow of patience from the fed could prevent the biggest two-day sell off in the dow in a year. weaker oil prices took energy stocks lower and multi-nationals, p & g, dew point and pfizer cited concerns about the strongest dollar in a decade. >> another central banker the bank of england governor has

been more effusive in his language talking about the euro and the eurozone. he says the european central bank's ban on stimulus package will not be enough on its own to solve the problems. he suggests action is unfinished. >> there is mcchange at the top. that was terrible. mcdonald's is replacing its c.e.o. as the u.s. chain's sales sunk to a worst in a decade. british born executive steve easterbroork will step up after the current c.e.o. leaves. shares jumped as much as 3.5% after trading on the announcement. >> we got a little bit of mcdonald's mix inside there. >> a bit of a mcdonald's-bank

of england shake up. there is carl icahn. he says apple stock is understralled. he says the company is one of the best buys in the last couple of decades. >> it is four minutes after the air here in london. facebook's mobile advertising business has helped the social network exceed analysts estimates. 69% of all ad sales came from mobile, up from 66% in the previous quarter. all this helped net income rise to $701 million up 34%. >> but the company said it planned to spend faster this year to chase further opportunities in mobile, messaging, even after branching out last year. let's bring in caroline to discuss facebook. big numbers and big investment

plans? >> perhaps that is why shares dropped off, or perhaps it was the general sell-off in the dow. these numbers are big. they are impressive. for the first time we have more than $10 billion in sales for the entire year. they posted $12.5 billion. they beat sales, up almost 50%. that is nine out of ianetta quarters. profit is up by three quarters, and adding users 40 million more people coming on actively each month. however, it sounds like good growth, but it is actually slowing down. it is the slowest growth we saw in sales for the year on a quarterly basis. sales are ramping up. he is taking a leaf out of google's book. spend big, diversify your company. amazon getting into droughns. companies getting into cloud computeing that isn't their core business. facebook is looking outside the

realms of social net working overall. they have now 87% expenses rising this year because they bought oculus and virtual reality and whassat. they spent more this year. it is all about messaging, all about advertising across any device, particularly on mobile. they are hiring and creating new technologies. mark zuckerberg himself said look, we are building new products, but profitting from them will take time. take a listen to what he said. >> 2014 was also a year of big investments in our future. this year we made big bets on the next generation of communication and computing platforms. we focused on serving our community better, raising the quality and relevance of content news feed, improving search and video products and

improving the performance and efficiency of mobile apps. >> the spending has been working. he actually -- mark zuckerberg spelled out what his 10-year plan for the company is. that should give investors some confidence. it seems to be he is knocking them off already. he said in the next three years i want to build out my advertising business, focusing on videos. three billion videos were viewed a day in quarter. that is triple what they said back in june this. is clearly already paying dividends. their advertisers can already be tracking who is view their adams, what defiles they are viewing them from, and if they work they can track if you see one particular video and if a similar group of people saw the video, did they go out and buy products. they can show they are better than potentially amazon and google. then they say in five years

they are going to monetize the big businesses such as instagram, and what's that is and the others. that is when they are going to see money from other apps. in 10 years, it is world domination. that is when it is internet and the rest of the world. that is when it is all going to be about virtual reality. the only area we focused on is the dollar strengthen thing. >> caroline with the latest detail on facebook. eight minutes past six in london. the chair of the european central bank advisory board joined bloomberg for an exclusive interview. she said greek banks are set to survive. let's get more. we spoke to her in frankfurt. hans good morning. >> good morning, anna. difficulty was the used she used to strive the situation that greek banks are in. she may have been understating a bit. but she went out of the way to praise the work they have done to restore their balance sheet.

she says they are in a much better position than they were from pre-crisis levels. >> the greek banks are facing a difficult situation right now because of the recent elections but they are pretty strong. they have a lot of -- a lot of good work has been done to strengthen their balance sheets over the last few years. i think they will go through the crisis like they went through the previous one. >> while we were talking to her, it was reported that some 11 billion euros, their outflows from the greek banks in the monday of january leading up to that election. you see the stocks have been reacting. they are down some 40% to 44%, greek bank stocks since the election. a remarkable story. you look at the credit default swaps, they indicate a 70% chance of a default in the next five years. that is up from just 59% before the elections.

we will be watching this closely. but so far, the regular lator is professing not to be concerned. >> and you also talked to her about the effects of quantitative easing and what that does to the banks. what did she have to say about that? >> well, she said it cut both ways this. is a really interesting answer. remember when the e.c. been jumps in and buys up sovereign debt, they are going to be competing. she said yes it is going to hurt profittability, but quantitative easing could lead to stronger corporates. have a listen. >> it may have been a different effect certain positive seeing more growth and improving the credit quality of the corporates, for example. it can also have other less good effects like effects from the profitablity. but as a matter of fact

profitablity is a matter of concern for the banks. it was during the previous months. this is something we have been following, and we will go on following the profitablity of the banks. >> and profitablity has been a concern for the european banks. we will see just how much of a concern here in a little bit when deutsche bank reports earnings. u.s. banks had disappointing earnings. throughout the morning, we will be bringing you more from our interview with her. >> thank you, hans. he is live in franc further -- in frankfurt. we will get more from danielle mouy later. man us has more. >> it is worth parking up on hans' point from nouy. the market has a slightly different perspective on the

equity value of the greek banks. the national bank of grease three of the four players. they raised $11.5 billion of capital in 2014 in four trading days. wiped out, that capital is down. it is down by 44%. liquidity and gots are the critical issue for these institutions. 14 billion euros has left greece since this election was called. 11 billion left in january we understand. and then a big outflow, the biggest outflow since may of 2012. you have to look at the kind of performance in one or two of these stocks and you begin to understand the actual momentum. 26%, 25%, and again 26%. but look, whether you believe that greals has to actually pay out on its booneds or pay interest on its booneds through 2020 is it a red harig to talk

about the bond market? well it is, and it isn't. bond markets tell you about risk and the perception of risk. right now what the bond markets are telling you is that there is a 70% probability that greece will default in the next five years. that is what these markets are actually telling you. if i press it often enough it is come up. to protect yourself on $10 million of debt, it would cost you $4 million to do that. that gives you some sense of the scale of cost of trading greek and italian debt. you saw that deadline in price and rise in yield yet. likewise on the spanish and the italian yields there. is to a certain extent a moderate amount of contagion in the bonds. it is not about what they are doing, but the perception of

how that is going to play out with the eurozone. back to you. >> thank you very much. join the conversation on twitter. tell us what you are following, what you are thinking, the stories that have grabbed your attention, what is trending today. ghost busters. it is trending. are we back in the 80's? >> it is never out fashion. >> as a -- as is the super bowl and as is ericsson, who scored last night. there we are. >> coming up on the program, where is the value of a great brand. we will tell you about the licensing deal that has earned richard branson's companies $ 2 million over 10 years. details after the break. ♪

>> time for today's company news. samsung has raised its dividend and post add fourth quarter approach it's that beat estimates, earning $4.9 billion in the year ending in december. losing sales to apple and others. the extra car sharing service is targeting los angeles and singapore as the next locations for its international expansion. that is according to the company's owner, the french billionaire. he told bloomberg the company will stop losing money this

year. >> we should have already this year some months break even. it is a long-term plan, and it is much earlier than expected first because the batteries are absolutely perfect. we have no problems at all. secondly because we have much more users than expected. we have roughly 400,000 a month, 200,000 people have subscribed in this service. we will be ahead on our forecasts. >> and richard branson has proven once again the value of a great brand. it has been revealed that branson's companies charged virgin australia about $82 million in licensing fees in the decade after 2013. that is more than the airline has made in profits since its i.p.o. in 2003. >> a little bit of breaking news. eventually the germans have license to be late.

it is deutsche bank, their fourth quarter numbers. net income comes in at 438 million euros. the estimate was for a loss. quite a considerable turnaround here on the estimates. there was a loss estimate for the quarter of 341 million. they will be pleased with this. there is the securities part of the business that he is trying to focus on. whether he scales up or scales down. debt trading beat the estimates at 1.15 billion euros above the estimates of 1.08. equity trading beat the estimates. loan losses are down 369 million francs. that is beating the estimate. you are seeing debt and equity businesses doing better than estimated. loan lowses are down relative to what the mark had estimated. a nice beat there on the net income versus this time last

year. they made a loss then of over 1.3 billion. we break them down in more detail. we will see what the opening calls are later. >> let's get more news on the federal reserve has boosted its assessment of the u.s. economy playing down low inflation and repeated a pledge to stay patient on interest rate raises. a pleasure to see you this morning david. >> thank you. >> in notice rush to raise rates, is that the message you got from the fed? >> absolutely. i have to say my colleague in the u.s. has been consistent that the fed would first raise rates in december of this year. what he saw yesterday sort of reconfirms that view. wore inflation if you strip out shelter in the u.s. is actually printing below some of the core in the eurozone. that was one of the surprises. but yes, the fed will raise rates, and the u.k. may do it slightly before. >> i was reading an article

about jeffery, who we call quite often. it is a big oil company. he said that the fed will be forced to raise rates because of philosophical beliefs, but that the market believes that inflation is going to undershoot in the next five years, coming in at 1.35%. he said the fed is going to shoot themselves in the foot, raise rates and recover. >> that is possible. we are going through all these problems in other parts of the world. it is possible that they raise and either have to go on hold or cut rates. but our view is effectually the fed and the bank will be moving through this process and slowly normalizing over the course of the next 12 to 18 months or so. >> it did take international developments into account? >> yes. >> that was new. in october when the markets plunged unexpectedly that in the fed meeting after that they would make a reference to international developments

which they didn't. why did they choose to make reference to it this time? >> you have the greek debt, and the e.c.b. the dollar is going up. even though the u.s. is not a very open economy, the exports aren't a particularly large share of the g.d.p., they do worry about the dollar exchange rate. all these things they throw into the mix. but at the moment the u.s. is recovering and the water has been pretty consistent about the rate rise. >> you mentioned the greek story. let's get your thoughts on that. we have been treating this very much as a financial and economic story as many news outlets for a long time, away from the social aspects of it. all of a sudden it has gone into the realm of geoapplication? >> it has. >> how will this play out in brussels? >> ultimately, nobody knows. what we did know was 2015 was the year when the bolders would roll off the balance sheets.

the debt dine mike schneider simply don't add up. also know that greece last year moved into primary surplus. the money supply was beginning to recover. all these things were encouraging. the banking sector seemed to be in a stable things. then we had the backlash. so not surprising, g.d.p. has fallen over 25% since the peak highs. we are now in this game where we don't quite know where we are going. we also know that the system as a whole has reduced its exposure enormously to grease. so french banks in particular were really exposed. they have cut their exposure entirely. the system as a whole thinks it is probably safer. moreover obviously the e.c.b. has the back of the cren of the system. so that gain is important. i think the greeks will have to roll at some point. >> part of the point was they talked about cash, cash leaving greece $14 billion since the election was called.

i know these aren't staggering amounts, but this is where a political crisis could turn into a banking crisis. >> absolutely. the balance sheet in greece is 395 billion in december. we know before that they had 150 billion in december of domestic deposits outside the government sector. we know that funding from the euro system was running at about 65 billion euros. that number is going up. we know that the claims -- the rest of the system's claims on greece will rise. the bundesbank claims will rise. the bundesbank's balance sheet will be more exposed to a greek exit because they will be giving money over. this is very interesting. politically, the backlash has been developing. there was a very good speech by ben friedman last year that

germany has experienced periods of debt forgiveness, and that didn't go down well in certain quarters. but that is developing. you can see certain letters going into certain numbers. a well-known commentator in germany yesterday talking about them being a serial depor torre. you can see they are in a bit of a mix as well. other people are saying well, actually you have defaulted before, and we have forgiven your debts. so cut greece some slack. this is to me politically very interesting. >> greece could trade in one of our bloomberg columnists said yesterday, they could trade in their vote against russian sanctions for debt forgiveness. >> that is a threat. >> does that have credibility? >> it is a real threat. >> people have picked up on this, the finance minister his expertise is game theory. you have someone who has a

p.h.d. in organizational behavior, has written books against behavioral theory. he is going up against german politics. they are saying we are bakely out of here, but at the same time they know if they leave, the banking set cuts off the funding and they go into a major down turn. >> they i think if the greeks think they may go to moscow looking for assistance, they may want to ask others who went to moscow and came back empty-handed. >> yes. there will be some form of pretend extend. think about the eurozone. is it actually recovering? we think eurozone growth is here. it is a surprise on the up side. >> david, thank you for joining us. chief urine economist at jeffery's internal. >> coming up, the c.b.a. chair, danielle nouy.

does she think thing greek banks are strong enough to survive a market crisis? stay tuned for that. ♪

>> welcome back. let's check in on the foreign exchange markets. the fed are concerned about the international issues. that was the message from janet yellen. there is a wonderful article it runs like this. asia policy makers, get your rate cuts in early. credit siu said the window for rate cuts is closing.

what you are looking at is the malaysian ringgit. at the lowest level since 2009. they kept the rates on hold. what you have got here is ing saying the ringgit could fall further. 378. that would be the color rising and ringgit falling. the asian currencies under pressure. the message from the reserve bank of new zealand, they have been on cause mutual stance since 2013. they will be on hold for some time and possibly into -- this is a nice little shift which is taking the dollar lower, the new zealand dollar higher. a change in the phrasing from the reserve bank of new zealand. let's see where they go.

a shift in the australasian continent. >> thank you very much. the chair of the european bank says greek banks are capable of surviving turbulence. an inclusive interview, she says they have done a lot to strengthen their balance streets. >> the greek banks are facing a difficult situation. because of the recent elections. but they are pretty strong. they have a lot of good work that has been done. i think they will go through this crisis like they went through the previous one. >> facebook planning to spend big in order to chase growth.

he says his company will invest in messaging across the web. sheryl sandberg sees potential for growth and mobile. >> we have made great progress on our streaming priorities, capitalizing on the shift to mobile. making our ads more relevant. we believe the market increasingly understands we have these leading mobile app product. >> patient is still the word for janet yellen. the focus was on the language used by the fed. patient remains the keyword on raising rates. the statement noted economic activity and the u.s. has been expanding at a solid pace and inflation would rise gradually toward 2%. >> with violence still raging in

eastern ukraine, foreign ministers will meet in brussels where they are expected to extend sanctions against russia. ryan chilcote is in brussels for us this morning. good morning. >> eu officials are watching what is happening in eastern ukraine and are concerned. it started over the weekend. now it has extended to other parts of the region, including one area where ukrainian troops are encircled by rebel forces. the last pocket in the eastern part of the country. there is the foreign ministers meeting. they would like to introduce new sanctions, focused on defense industry. the oil industry. and the banking sector. taking the existing sanctions that exist against those three areas. taking them a step further. they would like to explant --

expanded the blacklist. they can roll over existing sanctions. the way it works, the sanctions the eu approves come up for renewal every six months. the next are those introduced following the annexation of crimea. those are due for renewal by march. yesterday the ambassadors met to try to agree on some kind of new sanctions and rolling over the old sanctions that come up for renewal in march. they failed on both fronts. they have kicked it up to the foreign ministers who meet at 3:00 p.m. brussels time. those guys will to lie -- will try to come to some sort of arrangement. then it goes to the heads of state. >> what are the obstacles? >> there was a lot.

one we have discussed is greece. greece can effectively veto any of the decisions. they make decisions by unanimity. it they need greece on board. greece has said they do not consent for the most recent measured. they were upset they were not consulted. it is not only greece. germany as well seems to be cautious. the vice chancellor of germany, giving an interview saying it is perhaps premature for new sanctions. the issue here is everybody wants the violence to stop and read the sanctions have not been effective yet. meanwhile there is concern about the severity of the economic situation in russia itself. you have g.m. shuttering a plant. carlsberg announcing they are closing two of their 10 plants. some people saying, maybe we

have already pushed the russians along with the oil price far enough. we should wait to see what happens. >> thank you very much. ryan chilcote live from brussels. >> breaking news to do with the french steel manufacturer that supplies the oil and gas industry. an asset write-down of 1.2 billion euros. d percent will be in their brazilian unit. -- 50% will be in their brazilian unit. they say this is due to recent -- they have been affected by the challenging conditions. they have experienced substantial levels of turmoil. a situation that has led oil and gas companies to -- that is a 1.0 2 billion euro write-down.

we are also looking at the price of crude trading at the lowest level in six years. going back more than three decades in the next half hour show is going to report their -- shell is going to report their earnings. fantastic to have you with us. this is a small write-down in the scheme of things. they are all going to take painful write-downs, even the big players. >> he expects the whole industry to write down between 10-15% of their assets. cut production. >> what are we going to be looking for in shell today? that is the first of the big majors that launches the earnings season. >> the most interesting thing is how will the low-price environment play out for shell?

what will their guidance before this year? how does production work out? where are the efficiency gains most likely possible? >> where are the key projects right now? the projects we are most interested in? >> the gulf of mexico. also some in southeast asia. offshore nigeria. large deep-sea offshore projects. long-term. it is important that these projects right now are being finished on time. that is the most important thing. >> have we started to see that come through? is show going to be tented down that road? >> the lower oil price brings down valuations. it is expected that mna will

rise. show is among the lower of the oil companies in europe. the low 15%. -- below 15%. >> it was the sunday telegraph. it is always the wrong time for bp and shell to get together. is that a pipe dream? where are we in the big story of grand coalitions. >> the overlays between bp and shell are not as interesting. shell might be more interested in brazilian assets. >> there is a petrobras name that could come in. will not say names. >> from an analyst point of

view. >> the sort of assets could be among -- >> one of the more compelling reasons to buy the stock is the dividend. are they safe? the dividend, with cash flow? >> the last time the oil price crashed, as it did now, the most sacred things with will countries are dividends to read even though cash was lower at that time, went down a lot, dividends were held at all costs. >> that is very interesting to read is that something the sector does? >> a lot of people by oil companies because of the dividends. >> you were mentioning nigeria. there has been untold, dreadful violence. much of their operation is offshore, not in the north of the country.

are they untouched by the balance? >> offshore projects are more or less untouched. of course, you always need onshore operations. especially international oil copies have been concentrating on offshore assets in nigeria. >> thank you. later in the show, 7:30, just under 50 minutes, we will be joined by the shell executive for his first interview of the day. don't miss it. >> that is going to be the interview. you get oil, the hot topic. >> and a gets toothbrushes. >> join us on twitter. -- and ina gets toothbrushes. >> join us on twitter.

>> on ghostbusters, i heard there is going to be a female "ghostbusters" film. >> up next, we speak to the cfo of the largest commercial property company in europe. stay with us. ♪

>> let's check a gauge of the health of the european real estate sector. the cfo of the biggest listed commercial property company in europe. good morning, sir. you released results last night. you see underlying earnings of 6-8%. medium to long-term earnings the outlook has been increased. what is the drive behind the outlook improvement? >> we have been focused on the largest shopping centers. we want to create dominant shopping centers. we have been selling a lot of assets. last year, we agreed to sell $2.7 billion worth of assets. only drive to generate shopping centers that attract international premium retailers.

customers. allow us to create a place where people want to go not just for shopping but to have a good time. do more than just run it in and out for daily groceries. >> does that do more to put you in a place to withstand weaknesses in the economy? >> very much so. we are focused on the large metropolitan areas. that is where the money is and the most people are. we focus on the four-star malls. it is not about height end delivering service. leisure. entertainment to the people. with 54 malls and more than 6 million visits each, i think we can say the model is working well. >> the assets you sold, i am curious, isn't the americans that have bought them? what is the appetite for the

people you're talking to on the sell side? ask a wide range of -- >> a wide range of people buying these assets. we have sold to the european operators. 850 million euros worth. in spain, we sold a small shopping center to an american. a wide range of people investing. the low interest rates and the search for yield is driving the demand. >> how has mobile technology affected shopping? within these shopping centers? how has it changed the retail landscape within your portfolio? >> one of the elements that is important in terms of the technology, people have gotten used to being connected all the time. wi-fi is an absolute must. we have increased our presence online. mobile apps.

the increase of mobile app downloads, 43%. people are continuously connected. it allows retailers to connect. downloading the app it means we can to indicate with the customer. it used to be we were reliant on billboards and flyers. we did not know what would happen. now we can send messages directly to the customer. the relationship with the customer has increased. this has forced us to create more rest areas without let's. -- with outlets. >> can i ask you about your business in france. the regulatory environment. the economic minister has been presenting to parliament a new bill. permission granted for

construction of shops and malls. is that something you are focused on? >> we have an 8 billion pipeline. it is to be very much encouraged these steps to deep regulate and create a dynamic feel for the environment that has not succeeded in terms of liberalism. >> do like the bill? >> we like it overall. i think we are positive. you look in the u.k., it works. because people want it. >> the huge mall near me -- how do you look at the u.k.? i looked at your geographic distribution. 10% of your business in spain. 7% in central and eastern europe. where is the u.k.? >> is very much where we would like to be.

>> are you going to do deals in the u.k.? >> seeking deals just to do deals is not the right thing. can we do make money for our shareholders as the important thing. >> where could you expand? x we have it across continental europe. we are opening a mall in stockholm. the mall of scandinavia. there is a mall in france. across the world. in europe, a large pipeline. we have been awarded by the city of brussels eight project -- a project. the mall of europe. hamburg, 90,000 square meters with the city of hamburg to grow and build a new tourist -- >> you are not in greece. >>doesn't appeal to you or not? >> one of the things you want to

do we operate in countries in which we should be sure of the rule of law. >> in paris the triangle project has run into legal hurdles. there have been rules on not building skyscrapers and paris. -- in paris. and yet you want to build a big skyscraper. >> what you see in what has happened, we have not been subject to review of the project. the mayor of paris has been very much in favor of it. the socialist party, they see the benefit of the investment in an area that has not received a lot. politics sometimes tends -- but we have confidence it will get done. >> thank you for getting -- joining us. >> mcdonald's, the restaurant

chain shaking up senior management. what went wrong? we took a look at five numbers behind his time at the helm of the fast food restaurant. >> time is up for don thompson. having failed to turn around the lackluster performance of mcdonald's, he will be stepping down in march. here are five of the worst numbers from his tenure. 13, the number of consecutive months mcdonald's domestic same-store sales did not increase. in november, 2014, sales dropped 4.6%. the worst in more than a decade. eight, the number of items mcdonald's plans to cut from its crowded menu and attempt to speed up service.

they have already removed some of the quarter powders and wraps in certain markets. 10 million, mcdonald's was not able to sell 10 million pounds of chicken wings it bought for its promotion. they were forced to sell them at a 3% discount until supply where and out -- ran out. 15%'s -- $.15 the price for a nugget during the burger king promotion. they have been aggressively challenging mcdonald's. .3%. the total amount mcdonald's stock has gained during thompson's tenure. compare that to shares of chipotle, which has gained 90%. >> he was in charge for three months -- three years, not months. . >> let's stick with the subject

of mcdonald's. let's have a look at the digital output. we have a great story about mcdonald's on the website and why it takes so long to change things. basically talking about mcdonald's as an industrial wonder. the biggest restaurant chain in the world, 14,000 in the u.s.. 36,000 globally. more international than the u.s. executive talk about the system. guaranteeing what you are going to get. when they are conflicts, the system wins. thompson is leaving. he is a product of the system because he had been therefore 25 years. the new ceo, he did step away. maybe that gives him a little bit of a different perspective. >> all the burgers are the

same,. >> it is a large property. a property company. you can own a banksy 450 $300. they had an auction last night. 33 pieces of his works. one has changed hands seven times. it went for 40,000 pounds. he is a -- for all the sort of rebel in banksy, this is a man who was commercial. his screen prints, $190,000. >> the australian open final. serena williams winning. the man to watch is andy murray.

the semi finals, any minute now. >> we will be joined by the shelfl ceo. coming up at 7:30 u.k. time. ♪

>> the chair of the european central bank advisory board tells us greek banks are strong enough to survive. >> the need to manage any conservative fashion the liquidity position, that is the main focus now. no doubt about that. >> mark zuckerberg plans to spend big to chase growth. facebook reveals its strategy for investing in messaging and new technology. >> deutsche bank swings to

fourth quarter profit. >> and a shakeup under the golden arches. the ceo quits to be replaced by a brit. >> welcome to countdown i am mark arden. -- barton. >> news from europe's biggest oil company. shell is cutting more than $15 billion of potential capital spending. that is the big news from shell, just crossing the terminal. other companies are slashing capital expenditure in response to the having of the oil price

since last june. fourth quarter profitability, 4.2 billion. that is net earnings. excluding items that the oil industry likes to look at. interesting. 3.3 billion. estimates were estimating $4.1 billion. it is up on last. interestingly, it's expected to be deal me large oil company to report a rise in earnings because a year earlier, it had such a terrible quarter. trimming earnings to a four year low. profitability, yes, it is up. adjusted profit, 3.3 billion. what is it saying about the oil price? we mustn't overreact.

the average price of crude was $77. a drop of 30%. the last time they released earnings, it was $87. since then, it has fallen 44%. that is why we are getting a slashing of capital expenditure budget. well the company cut jobs? these are the big questions going forward. the dividend remains unchanged $.47. one of the key questions is is the dividend safe? that is why investors are drawn to oil companies. even when revenue sinks covers like shell -- companies like shell tends to pay revenue.

the company has sustained the dividend at $.47 a share. is that sustainable going forward? the big news is the profit miss and the cutback slashing of the budget. $15 billion over three years. coming up, i will be speaking to the chief executive officer of shell. 7:32 here on bloomberg. ben van beurden joins me to discuss those results. >> also getting numbers from the biggest distiller. giving an update on the performance of their business. coming in below estimates. the estimate was 1.9 3 billion. when they talk about cash flow cash flow was 699 million. that has moved in that

direction. they are talking about the restructuring activity they have been doing at the business. they are speaking positively about the restructuring they have done. they say the company has delivered planned savings in the first half of the year. there was a lot of talk about what impact the lower in price -- oil price was going to have on the consumer and on a business like theirs. the company's ceo has been talking about expanding prod ucts in the u.s.. they come in he giving m -- the committee giving further color on the numbers. one of the headlines from the

biggest distiller. >> let's go back to our top story. the chair of the european central bank and pfizer he board joins us for an exclusive interview. despite surveillance -- turbulence greek banks are expected to survive. >> difficulty was the word ms. nouy used. she said she is confident the banks have done a lot of work on their balance sheets since the crisis. >> the greek banks are facing difficulty right now because of the recent elections. they are pretty strong. they have a lot of good work that has been done to transfer their balance sheets during the last years. they will go through this crisis like they went through the previous one. >> greek banks down almost 40%

since the election. while we were speaking with her that is when it was were ordered that outflows had been 11 billion euros for the month of january. we have seen the credit default swaps up to 7 percent. there could be some sort of default up from a few days ago. we will be watching the stoxx all day to see what happens in athens when the banks open up again. >> what did she have to say about qe? >> she had a nuanced and interesting answer. it could affect the profitability. they will be competing with the ecb. 45 billion is what the ecb is going to buy starting in march.

they could also benefit from corporate's been in a stronger position. -- corporate's being in a stronger position. >> it could have a positive effect. improving the quality. it can also have a less good effect like effects on the profitability. as a matter of fact profitability is a matter of concern for european banks. it has been during the previous month. this is something we have been following and will go on following. >> on the profitability question, we will be digging into the deutsche bank numbers. that is one bank that surprised on the upside. >> live in frankfurt, see you later.

stay with us. let's go over to menace. -- manus. >> is anybody needs to be reminded what the impression is of the system. that is a spooky system. the equity index down 9%. this is the number i showed you. 25%. she may save the greek banks will survive and they are strong, but the market shows you something else. the banks raise $20 billion in capital. that it was a wipeout. down 44% in value. liquidity and deposits in question. the greek financial system after the election. nearly 11 billion taken out of greek banks in the past month alone. that ratcheted up in the last couple of days.

between the 19th and 23rd of january. we have not seen outflows like this since may, 2012. banks losing deposits. they need to turn to their central bank for support which in turn much turn to the ecb. hence why you need a program to have the taps turned on. we are not so much concerned about the interest for bonds. that's the message coming through from people we are speaking to. default insurance. came back into the market last year. it is telling you that creek on's have about a 70% probability -- greek bonds have a 70% probability of defaulting. the yields moving a little bit on it. more so for five years.

more of that when the trading day begins. >> thank you very much. >> the facebook mobile advertising business has helped the network exceed expectations. fourth kill -- quarter sales rose, beating average estimates. 69% of sales came from mobile. up from 66% in the previous quarter. as helped net income rise. -- and this helped net income rise. they plan to spend faster to chase opportunities in mobile and messaging. >> 2014 was a year of egg investments in our future. -- big investments in our future. we made big investments in the next generation of platforms. we focused on serving our

community better kvitova raising the quality and relevance of content and news feed. improving the performance of mobile apps. >> let's bring in caroline hyde. good morning. big numbers. >> big spending as well. the numbers are impressive. maybe that is why shares fell overall. certainly, there were 11 digit figures for what they hold in in terms of revenue. beat estimates by 49%. they are adding monthly users 40 million for review have 1.3 one billion people checking in on our profiles every month -- you now have 1.3 billion people checking in on our profiles every month. expenses up.

it is about sales and marketing. this sort of spending -- they are going to add 70%. the focus is clear. this is what investors have got to buy into. making yourself larger than what your original business is to read it no longer just about social networking. this is about thinking big. the future. mark zuckerberg says, we are building new products. profiting is going to take time. they are betting big on the fact of messaging. advertising across all devices. this is a company betting on artificial intelligence. mark zuckerberg has try to paint the picture clearly. he said, three years, we are building our business especially in video.

>> 3 billion. >> triple the number were viewed in june. are they actually watching or is it playing and you are not paying attention? they have to show advertisers whether it is working or not. they made brilliant moves. they have a network where you can see who is looking at the advertising. across which devices? they are helping other small apps grow their apps. their advertising. this is a committee that is making leaps and bounds in terms of innovating. -- this is a company that is making leaps and bounds in terms of innovating. 10 years world domination. we will have internet for the rest of the world population.

we will be focused on artificial intelligence and virtual reality, but we need to see this actually working. maybe they are worried about the investment. will it pay dividends? >> caroline hyde with the latest on facebook. >> the world's natural gas exporter that income has fallen to 1.7 5 billion rubles. that is ahead of the estimate but down on last year's 276 billion rubles figure. the company cited weaker european experts. -- exports. that is the big news. from shell as well. still to come, we will be joined by the chief executive officer

of shell. he is of course ben van beurden. first -- that is a first. stay with us. ♪

>> welcome back to "countdown.

" let's turn our focus to the earnings estimate. let's get a closer look. james bevan, chief investment officer. great to have you with us. dow, biggest two-day drop in more than a year. reporting season is underway. 70% in the u.s. have surprised. >> when people think, what lies ahead in terms of the next steps. everybody is trying to read statements. they are about cost-cutting. his finds -- it is fine in terms of the short-term numbers. the headline number was fine. but it was secured through cost

cutting. we see the emerging economies move again. they will have trouble making real progress. >> is there a dynamic between the u.s. and europe? we heard yesterday from a number of multinational businesses about the headwinds the dollar is giving them in the international sales. where we could see the u.s. businesses moving out. european businesses gaining. >> it is an interesting dynamic. why has the u.s. been so successful? they never had real estate ready. we have a very early move by the fed. because of the regulation, -- deregulation. what will happen to the 60 billion euros a month. there is a risk it will not

shift to the poor free but goes to the dollar. we get a further strength of the dollar with destructive consequences to u.s. companies trying to export. >> show is an earnings miss. -- shell is an earnings miss. they are cutting by 15 million over three years. dividend stays be same. is that good enough or you, james? >> i think they have done well with the dividend. i think we are going to have to pencil in 180 eight cents to the year. sustainability of the dividend is important. why are companies cutting costs? what do you do if you do not have enough -- from a european point of view, having a dollar denominated dividend is great.

the strength means we have a great dividend in our currency. that is good news. i think shell is doing all right. big oil companies can only be scaled back slowly. they have an excellent underlying business mix. they moved to liquefied natural gas, which i think is a smart move. ifif shell is healthy -- having trouble with numbers, the doesn't bode well for the rest of the sector. >> eu talk about how the rest of the sector is reacting. they stuck to their dividend commitments. >> i think this is different. we are looking at a headwind in terms of the prices that will persist several years. i'm not expecting us to go to the prior highs anytime soon. i don't the cool cd oil price --

cd oil prices tame levels. i think you many companies will need to grade their levels lower. the worst scenario is they pay hide evidence and then have rights issues. that is bad news. >> deutsche bank this morning, they did a double take. 430 million euro loss for the quarter. they delivered a profit. their equity trade -- i would need to look at the notes. this is a stock that dropped 28% in the past 12 months. trading at 60% of tangible value. would you touch any of the european banks? books i would. i think -- >> i would. i think there is real value. in the context of the eurozone,

germany clearly is doing well. the benefited from the chief value of the euro. the benefit that germany receives as an exporting economy , they have a lower economy. that is great long-term use for comedies like siemens. s.a.p.. -- for companies like siemens and s.a.p.. >> the chart highlights how tough it is to outperform the market. at this present moment. >> ticket from your system. >> it is a great chart. >> the number of stocks outperforming is very small. your capacity to outperform is very limited. >> it is the 50 you are looking at. >> there are issues that are

important for investors. if you can buy dividends that grow, you are outgrowing. decent yields is backed by quality, you're doing well. this resonates with the premise we are going to see low bond yields. and yet quite difficult growth. the kind of companies that will continue to positively surprise. the question is, how long will we continue in this extraordinary environment of central banks being supportive? governments not deregulating? this is what mr. carney was talking about yesterday. the big focus for markets. >> another big focus for you. you mentioned it as soon as we saw you. mcdonald's. >> i love corporate change.

why should share prices move very much? when i see what mcdonald has done, two import moves. he had a very successful tenure for the u.k. operations. i think he is very attuned to what we are expecting mcdonald's to do to the menu. more natural ingredients. fewer additives. more healthy. great news for the consumer. the other change moving from the chief financial role. i think this is an mcdonald's looking at two things. more focus on cost control. trying to make sense of their opportunity to use the digital revolution to drive profits. this is arguably from the most -- >> the first voice of mcdonald's change. great to have you with us. >> thank you very much.

we had earnings from shell. after the break, the reaction from the ceo. right here on bloomberg. ♪

>> you are watching countdown. let's see how the foreign exchange markets are shaping up. with the interest rate markets are sane, december this year. maybe a rate hike by a january of next year. the market is moving them further out. get your rate hikes in early. asia policy makers, the window is closing according to credit suisse. get your move in before the fed.

the malaysian ringgit, this is a currency which has dropped to the lowest level since 2009. oil dropping by more than 2%. that is important to the malaysian economy. they kept rates unchanged. but this is a currency which could trade lower, according to ing. they are saying you could see a level -- seller traveling up, ringgit traveling down. some pressure in the asian and australasian currencies. let's take you to the new zealand the dollar. -- the new zealand dollar. you have a bank remaining on a tightening bias since 2013. he says there is a shift to neutral. a hint that they could counter rates. the sins something -- canada did

this. singapore. nine central bank so far. you could see a change from them. anna, back to you. >> the top bloomberg headlines. the chair of the board says greek banks are capable of surviving. she says the banks have done a lot of work to strengthen their balance sheets but faced difficulty. >> the greek banks are facing difficulty right now because of the recent elections. they are pretty strong. a lot of good work has been done to transform the balance sheets during the last years. they will hold the prices. >> facebook planning to spend a big in order to chase growth. mark zuckerberg says his company

will invest in messaging technology across the web. >> the main priority is capitalizing on the shift to mobile. making our ads more relevant. we believe the marketing the market increasingly understands we have the leading products and are the only platform that delivers people-based marketing and scale. >> patients is still the word for janet yellen and the fed. patient remains the fed's keyword. the statement noted economic activity in the u.s. has been expanding at a slower pace and inflation would rise gradually towards 2%. >> first. bloomberg. >> europe's biggest oil

committee reported fourth-quarter results. the chief executive officer, ben van beurden. thank you for joining us. >> good morning. how are you? >> very well. if i could start with the earnings, adjusted profits in the fourth quarter. $3.3 billion. analysts were looking for $4.1 billion. why the gap? >> you will see in the fourth quarter, the lower oil price in our upstream earnings. the downstream earnings were strong. we had a strong year in totality. we delivered what we said we would do. a stronger underlying performance. a much improved financial performance. more capital discipline. we completed a day vestment

program. -- completed a divestment program. we are entering a time of volatility with a stronger position than we were a year ago. >> on the capital discipline front, you are going to cut capital expenditures by 50 billion over the next three years. what projects will be affected? >> a range of projects. when we look at what is going to happen in the next few years, we are not immune to low oil prices. we see pressure on the investment program. we see it as an opportunity to take out cost from the supply chain. we will be working hard to produce capital costs. given the opportunities we see as well. we felt we needed to cap the investment levels that no higher than what we had last year.

we have deferred or canceled $15 billion with a projects. that is about 40 projects. we are now at an investment level. we know we can come down further if the oil price outlook warrants. this is also a time where we have to preserve our midterm growth. in my mind it's a game of being prudent. at the same time, not been overreacting to the oil prices we see. we need to preserve midterm growth. >> you said you could cut further if the oil price continues to go lower. let's get to the elephant in the room. the oil price. will it continue falling? >> if you will forgive me i will not do any predictions on the oil price. we typically get that wrong. we see a transition in oil markets among producers.

the balancing of the market is not only going to be done by opec it is going to be done by what will be the highest cost marginal producer. this will be a more difficult process, volatile. there is overacting as well. motility is going to stay with us for some time. in the long term, the fundamentals of supply and demand will reassert themselves. supply will drop even from existing fields. we have to extract as an industry investments to close the glowing -- the gap oil prices will revert back to higher levels in the long run. >> give us some sort of duration. you say, it will take time for the supply demand balance to take place. give us some sort of time.

are we talking about higher prices at the end of 2015? or is this multi-year? >> it will depend on many factors. it will of course depend on what opec will do. let's see how their stance will develop over the quarters and ears. it will depend on geopolitical events. how much the industry cuts back capital. there is a saying the best remedy is low oil prices. we are prepared for every eventuality. we entered this time with strength. we always knew that all was going to come back. we were looking to preserve our flexibility out of both cutting back and preserving can read we

take a long-term view in our industry. typically projects take years. we have an investment cycle time of 10 years. that is the kind of outlook we need to have. in the short run, we will deftly get things wrong. >> the opec secretary general said if the industry cuts aggressively, we could -- if they do not invest in production -- we could see a $200 oil price. is that high in the sky? feasible? if companies like yours do not invest in production? >> as i said, it would be foolish to predict where the oil price will go and when it will go there. what is absolutely true, the more vigorously we hold back investment because of lower

oil prices, the more vigorously it bounces back. we don't think anybody is served in the end. it would be better if we had a more moderate response. that is often driven by sentiment as well. the lower the price goes, the better the chance it will bounce back vigorously. >> talk to me about the dividend. for the seven cents a share. -- 47 cents a share. what would it take for the dividend to come under threat at shell? >> indeed we have said we will not change it. certainly not this quarter. we have an outlook statement for the first quarter. we have a very conservative and

predictable long-term dividend policy. i'm not planning to change that. what will need to happen priorities with which we will use our cash. return money to our shareholders. invest. if there is money left we will see what we can do with it. that order of priority is there. we have a strong balance sheet could $20 billion of cash on the balance sheet. we can weather the storm better than anybody else. the dividend is an iconic item for shell and i will do everything to protect it. >> will you do everything to protect jobs at show? other oil companies are cutting jobs. will you becoming them? when will you see write-downs on the value of oil and gas assets? >> let me start with the second one. as you know, we have been restructuring in areas we said we had weakness or poor

performance. unconventional's, resource layers in north america. the oil products business. we have been restructuring that business in 2014. if you go back to the earlier part of 2014, we did take write-offs on these businesses. we are extending that program of restructuring to international resources. looking at more mature upstream engine businesses. we have seen cash flows dropping . restructuring may be required. there may be write-downs coming and that area as we restructure. the bigger restructuring we started with early. therefore, we are anentering this time with strength. there will be pressure on the industry. many of our suppliers are responding.

that is what you expect. for us, we will be looking at trimming the operating costs. more than half the operating costs are in the downstream. that is not affected by oil prices. we will have a consistent and considerate approach. we have announced some job cuts but that is part of the normal program of taking advantage of opportunities. >> i'm going to be very naughty. with the slump of oil, the decline in oil assets, many are talking about the possibility that the oil majors we could see big m&a. is it impossible that two of the

big five could come together in the slump? >> we have a policy of never commenting on m&a in this is nothing moment to start changing. >> could oil fall as low as $36? which it fell at the height of the financial crisis, yes or no? >> again, i would not one to put my credibility on the line by making predictions. it will depend on so many factors. geopolitical. the global economy. what opec will continue to do. it can go up or can go down. i leave it to the trading organization to understand the dynamics better. take advantage of it where we can. my focus for the investment program and the company is on

the mid-to long-term. where supply and demand fundamentals tell us the same story as i told six month ago. >> thank you, ben van beurden. it has been a pleasure talking to you. >> anna and i have been tweeting away. that is the longest answer to no or yes i have ever heard. well done. >> it is 7:45. you are watching "countdown." up next, mark comes out with his bar chart -- bart chart. ♪

>> the greek bank selloff. value has been wiped off the greek rank stocks. that figure matters. the nation's banks raised 11.5 billion dollars in additional share sale. the most and least a decade. now that capital has been completely wiped away. take a look at the chart. it includes the biggest banks.

national bank of greece. it is a one-year chart three the red circle is the time. -- is the time you need to look at. a 44% decline. the biggest weekly. the biggest four greek takes trading at a fraction of their height. of the bank, 94% below the high. -- elf ofalpha bank, 94% below the height. the greek bank selloff. >> that is it in numbers. the chair of the european advisory board joined us for an

exclusive interview. she told us despite the market turbulence, greek banks are set to survive. let's get to this with hans nichols's. she is confident. she has confidence. the bart chart tells us differently. >> the point of the chart, is to draw people into how dram atic the decline has been. her job is to be reassuring to read while we were talking to her come of that is when it was publicly reported they had 11 billion and outflows in euros in january. she said the banks have done a good job to strengthen their balance sheet. >> the greek banks are facing

difficult situation. because of the recent elections. they are pretty strong. they have a lot of good work that has been done to strengthen their balance sheet. i think they will go through this crisis like they did the last one. >> that is a regulator putting on a brave face. she says she is not overly concerned, but there is difficulty. we will let viewers whether to decide -- decide whether to believe the bar chart or dani elle nouy great interview by the way. more later on bloomberg. >> i think hans is accusing mark of sensationalizing. let's talk about what is happening in another corporate

share carita if mcdonald's, a shakeup at the biggest restaurant chain. the ceo is out. a brick is taking the helm. -- brit is taking the helm. don thompson is going. >> after 25 years at the company. the first black ceo. less than three years at the health. patient -- at the helm. profit was down 21%. the issue the biggest market is the u.s. and that had the worst sales drop since 2000 one. shares of just 1%. the dow jones up by a third. a fresh look, a new ceo. one of the most quintessentially american firms gets a u.k. top

of the realm. and the chief brand officer is to become the ceo. he started in 1993. manager in london. he has a bit of flavor from other brands. pizza, asian fusion. those brands, only there for a short amount of time to read he is not as institutionalized as the other ceos have been. the cfo will be a newly created administrative officer. change of plenty. -- change aplenty. >> there could be lessons and chipotle. keep it simple, fast, and transparent. the business is facing challenges. >> you only have to step outside

and look at high street. coffee sushi, mexican. all of which are deemed healthier than mcdonald's. eating in on the berger trend, burger king and five guys, shake shack coming to the u.s. it -- u.k. five guys has the feeling it is healthier, handmade. 43 grams of fat for five guys. mcdonald's basic hamburger, eight grams. >> so they need to change the message. >> when he was leading the charge in the u.k. and europe he engaged in a tv debate against the person who wrote fast food nation. he tried to set up web sites to educate people that they are not

as bad as you thought. he is about digital. focus on menus as well. he did try to do a new program, create your taste. a menu about building your own berger. we need a man who can take what he did for 1200 stores in the u.k. how do you make mcdonald's relevant? how do you get the millennial's to start thinking you are cool? how do you start changing the enormous juggernaut? >> i wonder how many big macs are eaten? >> you know the issue about the debate, the desire of the nike ticker. you have that golden m. maybe it is time to get rate of the golden arch. >> you are feeling radical.

>> thank you very much. we are going to discuss the merits of that. "on the move" is next. ♪

good morning and welcome to >> "on the move." i'm jonathan ferro. moments away from the start of the trading day. crude reacts. oil slips back below $40 a ba rrel. shell slips. eu foreign ministers meet in brussels today as violence escalates and eastern ukraine. if officials are expected to consider imposing new economic sanctions on russia. greek banks get hammered. down 44% and three trading days. outflows accelerate in the month

of january. the ecb's bank supervisor tells bloomberg that greek blenders are strong enough to survive. i am looking at future markets lower this morning. euros stocks off by 19 points. dax futures down by 44 points. >> you're right. supervisor has got to be confident. stocks having a bit of a tough time in greece. 44% has been wiped out. all the capital that they raced in those banks last year, poof gone. equity markets are opening lower. the fed remains patient. oil prcices dropped by 2% percent. money going into the yen. a definite sentiment of moving away from risk. royal dutch shell d