good morning, here is what we are watching at this hour, we are half an hour into the trading session, shares are lower along with the rest of europe. oil prices resuming their slide after the saudi and announced they would continue investing in energy products. , iran'sin rome president in rome to finalize billions of dollars in deals following the lifting of sanctions in europe. as twitter shakeup ceo announcing his departure -- announcing the departure of four key executives. shares continue to sink. ♪ let's head to the market desk where we have the latest on this decline. we got out of the snow in new

york. rami: out of the white and into the red. we are turning around from two days of gains last friday in of the red, but not so severe. the s&p 500 is the biggest lacquer, down by about half a percent. the nasdaq not too far behind. as betty said, part of the reason is because of saudi arabia saying that they are not going to hold back on moving head desperately ahead -- on capex moving ahead. that, there is a factor coming out of china, diesel demand dropping for a fourth straight month, that means that industrial activity could be falling down. let's take a look at what's happening with the s&p year to date. downtrend the general

from the start of the year when we saw that global route happen, all the way through about the middle of last week. that was when ecb president mario draghi said he could pull the trigger on more stimulus in march. out of china, we are seeing that led down -- leg down. it is a fairly broad selloff right now. materials are down by about 140 -- 1.4%. dupont and monsanto are all down by about one and a half or 2%. energy is interestingly not down the most for once, down by about a 10th of a percent. exxon, chevron and schlumberger were down by about 2%. it looks like they are in lockstep, today. ramy: with being down by about a

10th of a percent, not so much. they screwed down by about -- whend see this drop off saudi arabia said it was not going to pull back on any capex. with this happening, investors are looking for some safe havens. gold is up near session highs, by about 1%. this is now it's highest since january 15. let's take a look at u.s. treasuries. the 10 year yield is down by about 9/10 of a percent. now at about 2.3%. betty: let's check in on the first word news. vonnie: good morning. new video revealed by islamic state shows the extremist who carried out the terrorist

attacks committing other atrocities. all my militants seen in the video died in the attacks for the aftermath. seven of them were seen shooting or beheading captives. iran is emerging from national in -- international isolation -- international isolation. romney is expected to find contracts with a number of countries including airbus and rhino. the mid-atlantic is coming back to life after a deadly blizzard dropped the region to a standstill. in washington, the federal government is closed and the house has canceled all votes scheduled for the week. more than two feet of snow fell in some places. thousands of flights were canceled over four days. police in southern california are hunting for three escapees from an orange county prison. led 15ls think the trio hours before their absence was noted. the prisoners cut steel bars and

made ropes with bedsheets to break out. a powerful earthquake rattled alaska over the weekend. injuries, but for homes were destroyed by fire or explosions after the quake. swaying -- life lights swaying. betty: as you mentioned, stocks are snapping their today winning streak and investors are eyeing this that meeting that begins tomorrow. the decision hinges on a slew of economic numbers and how the market is doing. tomorrow we get consumer confidence and wednesday we get new home sales. , buty expects any action it does not stop there. thursday we get more with durable goods. it with a look at the market is all of a reading our markets

reporter and a look at what is expected from the fed. don't forget, we are still in the thick of earning season. all those economic numbers this week, how do you sort of categorize all of that? >> in most important is going to be the gdp numbers and we will likely see less than 1% in the first quarter of the year. yearmeans the year for growth rate is going to slip below 2% and when the economy slows down, it becomes more vulnerable to shock. it will be unwelcome news policymakers. i don't think they responded to forcefully in their statement, but rate hikes are out of the picture. betty: how do you think investors are going to factor this in? to bes essentially going

dismissed because nobody expects the fed to do anything. oliver: as carl points out, there is a to part her from the alluded rate hike that the fed has brought up, that will have any -- a material impact. arguably, some of the behavior has come from investors looking indicting and perhaps the fed in terms of the timing. the fed had to go at that point and they did, but there is a bit of an expectation that those four hikes are not going to happen. to move closer to where expectations are with the fed funds and at some point when those two come together into an agreement, that is usually pretty good for the markets. fed officials will it knowledge implicitly that their policy confidence is not as high as they would like it to be and understandably so.

how might a project that? carl: it'll don't want to signal any buyers do more -- buyer remorse, so the bed will be showing a stiff upper lip in that regard. can signal fewer rate increases this year is by downplaying the economic assessment so that first paragraph of the statement is really the assessment of economic conditions. they won't turn it down too far because that would cause further indigestion in the financial market, but instead walk it back a little bit and that is a subtle way of saying we will do less, later this year. betty: outside of these economic numbers, are we going to hear from any fed policymakers? oliver: the first fed speech we hear is on friday. bit in aed a little

hawkish divert -- direction and seems to be backtracking that divergence and also some of the more notable talks on the committee like bullard have also become a little more concerned about downside risk. betty: oliver, you are mentioning sentiment. let's look at one chart that kind of shows you the investor sentiment right now, not only here in the u.s. but around the world. let's pull up the chart that shows that basically, investors around the world are loading up on defensive shares, that is the yellow line and the orange line is the rest of the market, just a general index. thisows you that outperformance of defensive stocks, they are no longer piling into growth shares, people are scared. oliver: that reflects a bit of the shift we had since the market started selling off in january. a lot of high-growth names where the market is going up and up and they have a strong output

and will be level of it more, people came out of those and these are companies a lot of people like. when you have some of those favorites breaking down, it makes you wonder if investors don't want to be there and are not going to put their chips on the table for something that has been reliable, then there must be some cause to worry. move was a vote of confidence on the economy and that was important and why stocks tarted selling off in september when the fed did not go. now we are at the point where that is out of the way in the economy to move it one point, but as we go forward, i think -- will see more -- state rates will stay low and there will be easier policy not just here, but it will be a boon to stocks, just because the fed does not go does not mean a huge indictment of the federal economy. carl: if the fed is moving slower, people are piling into those dividend paying stocks. betty: what about the dollar?

the dollar has continued to strengthen. carl: even if the fed is going slower, it is the only game in town in terms of central banks raising rates so the dollar strength that is clobbering u.s. manufacturing, this is been the story for 18 months and is likely continue into the indefinite future. janet yellen can minimize that i raising rates more cautiously and be more sensitive to this. remember, that is what she did last time. deleteriousbout the effects of the stronger dollar. betty: do you think she is move?ointed by the carl: i think she is cautious that the dollar would move if the fed is moving, so they are being careful not to get market expectations too hopped up on an aggressive fed because that would be an even more aggressive dollar. betty: all right, good to see you. speaking ahead and about the former pimco ceo and

he will be sitting down with me, tomorrow and he has some news for you, his new book, the only game in town, central banks, instability and avoiding the next collapse is out and that interview with him at 1:00 p.m. eastern, tomorrow. ♪

betty: good morning and welcome back to bloomberg markets. it is time for the business flash. some of the biggest business stories in the news. ford motor's is pulling out of japan and indonesia. iny say market conditions each country have made it difficult to grow sales. last year, ford sold only six to

100 cars and trucks in indonesia -- 6100 carsapan and trucks in indonesia and 5000 in japan. --johnson will allow to theological to ireland with a tax rates are much less expensive. shareholders of johnson will on about 56% of the new merged company. federal health inspectors have found deficiencies at the fair blood testing lab in california according to the wall street journal. it's another setback to the company considered to be one of the darlings of silicon valley, valued at over $1 billion. bloomberg business flash. a company that is losing billions, let's get back to one of our big corporate stories. shares of twitter bell as much as 6% after the trading open, now bouncing off the low of the

session. the stock, take a look at that crushed in the last year, down more than 55% and more bad news this weekend, the ceo announced the departure of four key executives. bloomberg tech reporter sarah frier has been covering the development extensively and joins us now from san francisco. clarify these executives, less voluntarily or were they ousted? sarah: jack dorsey says this was voluntary. you hear different things from different sources, but the point is, they decided to announce it all at once because they knew it was going to look bad. so the executives we know have been in conversations for other jobs for a few months now. this is something where they thought how can we do this with the least pain and just

announcing it on one day was one way. betty: just rip the band-aid off and deal with the consequences. jack dorsey tweeted out numerous tweets on this announcement and -- he said alle four will be taking some he iseserved time off and personally grateful for everything they have continued -- contributed to twitter. how is he going to fill this void? sarah: it is something that twitter has had to go through before. in 2014, the year after their ipo, they shuffled through and got a new cfo. they shuffled through their head of engineering and products a couple of times, they have had quite a bit of executive turnover. they have gone through -- kevin will fold was the fifth product executive in five years when he was appointed.

this is a company that has not really been able to keep people at the top are very long. has the founder background, he is not going anywhere whether he is ceo in the future or not. i think the rank and file is going to be very used to shifting bosses. is a fast-growing company so to some extent, it is not surprising, but it is not good news at this point. they are under a lot of pressure to improve their growth people looking at these moves and saying that it will turn -- slow down their turnaround. betty: it sounds like they are looking for a cheap marketing officer -- chief marketing officer. what can you tell us about that? sarah: they have been looking for a chief marketing officer

for a few months now, but it looks like they are getting crowed -- close to announcing one into our resources and to the board, they might add two members. jack dorsey made a former google executive the executive chairman of the board in october and he is helping reshape it. the face of the board could really change over the next few months. betty: sometime soon. none too soon or for the twitter shareholders. thank you so much. continue the conversation on twitter's turnaround and its competitors with an early innovator in video klein, theion, jon founder of cap tv. a company in turnaround mode seems to be successful at this

point, mcdonald's saw sales jumped 5% in the last three months of the year. it was the best result of the year. their comeback has investors missing the boat. much more. ♪

betty: welcome back to bloomberg markets. let's head to the markets desk where we have a check on some of the company movers because there is a lot moving. ramy: i'm looking at halliburton and the sphere of oil. halliburton is up by little more than 1.1%. this is interesting despite it missing both it revenue and earnings for the fourth quarter. a fourth-quarter net loss they recorded was $28 million. the interesting thing here is it includes a one-time impairment charge of 192 mayan dollars so

investors are looking to the upside of that. kimberly-clark also on radar, down by about 3.9%. forlso missed its cue estimates but the reason they are talking about is it's because of strong dollar headwind. it gets about 50% of its sales outside of the u.s. looking at some food stocks. mcdonald's as well as from -- grubhub. mcdonald's fourth-quarter and its beat estimates same-store sales around the world were up by 5% in the fourth quarter. interestingly, $120 right now. this is their record price. we will see an all-time record not since 1980. betty: all day breakfast. ramy: not so good for you,

healthwise. betty: thank you. let's bring in shelly banjo. it seems like finally, this turnaround is happening. thee are about a year into new ceos tenure. breakfast, iday think that is what is turning the company around. betty: why? >> sales are definitely great, but it's also bringing in customers for the first time who have never been to mcdonald's or haven't been since they were kids because they're thinking, oh coffee, and it mike matheny, that is not mcdonald's or fast food, that's the same thing i would get anywhere else -- and the egg mcmuffin, that is not mcdonald's or fast food, that's the same thing i would get anywhere else. betty: a large chunk of their

sales come from breakfast. shelly: to not have that throughout the rest of the day, you lose all of those folks who may come in later, but it brings in -- betty: it brings in millennials who had never set foot into a mcdonald's. do we see that trend happening? shelly: you will start to see it even more. what is interesting now is to see how much further can they bring this because they recently just launched it, so how much of this is putting out a bunch of coupons and marketing and a bunch of deals to get people in for breakfast, but as each quarter goes by, are people going to stick with it and make it part of their daily routine? this any of this have to do with the fact that maybe this whole asked casual trend is on the wane, and in particular you see all of this bad news around chipola. fast casual is going so

high, but now you are seeing the exact same thing flops of it is interesting to see how burkert chains are possibly catching up. betty: thank you so much. -- more best commentary from still ahead on bloomberg television, we look overseas. iran's president in italy after european sanctions were lifted. how the visit could impact global business and the energy market. ♪

betty: live from bloomberg world headquarters, you are watching bloomberg television. let's check in with first word news. the un's special envoy

on syria says he hopes to start peace talks between the government and opposition groups. friday invitations will be sent out tomorrow. the sides will not talk to each other directly, but negotiators will move between the groups. the priority is creating a broad cease-fire, stopping the threat from islamic state and clearing the way for humanitarian aid. a demonstration in the netherlands demonstrates the urgency of the european refugee crisis. the protest was intended for european justice ministers, discussing the crisis -- the crisis today in amsterdam. a new study says that record warmth is due to humans. 15earchers say 13 of the -- the years on record studies in the new issue of --

one in detroit, a judge will hold a hearing with public school teachers to end their so-called sickout. they have closed schools repeatedly over the last two weeks with teachers upset about low pay and bad working conditions. the blizzard shut down some major movie markets in new york and washington. the revenant stays number one with an estimated $15 billion in its third week of wide release. star wars the force awakens was second. betty: finally got to see that movie over the weekend. iran is emerging from international isolation now that sanctions have been lit did.

president rouhani arriving italy today on the first stop of a european tour. he will be off to meet with the pope at the vatican later. we are in rome following his trip. what does the rainy and president hope to accomplish businesswise -- what does the iranian president hope to accomplish businesswise? >> is being called the rouhani roadshow and he is bringing six ministers and 120 businessmen. he is aiming at finding some s in various fields, energy, infrastructure, behold rain -- the whole range, machinery and food. fields to create a new relationship with italy in particular. italy was iran's biggest european trading partner before sanctions were tightened. betty: our their prospects that

it could happen again? -- are there prospects that it could happen to again -- happen again? rushing toy else is tehran. the italians think they have a good starting point and they are also making a point that americans were penalized by the existing sanctions which stop american businesses from piling in. betty: how is he being received right now in italy? what is the feeling on the ground? >> imperial red carpet treatment. he has received by the prime minister on the original capitol hill about the roman forum at 7:00. he will be taken on a tour of the museum and then a big dinner with ceos and businessmen in attendance.

meetings with parliament and the italian president and the pope. is certainly having the red carpet thrown out, he will be moving on from there in visiting france as well. is there a potential that he deal ininking as big a other countries or is it believed the highlight? -- or is italy the highlight? accords that will be signed, they are agreements, not contracts, that the italians are hope will that they can get the 17 billion euro total which would be over five years and then there will be more business by dozens of italian businessmen to tehran to try to drum up more business. betty: thank you so much. for more on the impact of iranian president's trip, let's

bring in several hunt. -- sarah hunt. sara, you heard so much about iran opening up and cranking up production of oil and the impact on the markets, how do you think -- how significant do you think that is. it would probably have some significance, but not much right now. you are seeing some big numbers from the saudi's and also discussion about not cutting production from anyone at opec and you layer on the fact that the arabians will now be in a position to export more and that is part of the combination of things weighing on the oil price. betty: are you saying it would be even more or less of an impact if it weren't for these factors? sarah: is more of an impact right now because you have overproduction and adding more production to that.

we don't know how long it will take for demand to catch up to the supply. right now it is adding to what is already a pretty bad take for oil. betty: between the oil price in stock markets around the world, let's bring up that chart that shows the correlation. it is now at the highest level it has been in four months. debate, ise is a big oil tracking stocks, is stocks tracking oil, what is up with this correlation, what is your view? sarah: if you track the entire commodity index, you will have a similar reading. commodities are also cross, it is not just oil, there is also the influence of the stronger because a stronger dollar usually means a cheaper oil price. right now, you may see a lot of that's'm not sure if

putting positions on, but i think there has been a higher correlation and if the oil price settles in, it will settle down and something new will come to the floor in terms of what is driving equity markets as a whole. i find it hard to believe that it is just oil price but you do see that correlation right now. betty: so you have some doubts. sarah: i have doubts it is a long-term correlation that will stand. there have been some data coming out of the beginning of this year and we have seen equity markets so weak that everybody's are looking for a causality and right now because oil has been so weak, it is easy to show that correlation. what a that shows that holds up in the long-term i am not certain. we are very dividend focused as you know and we look at energy stocks, we are looking for companies that have dividends that are what we think of as sustainable. if the oil markets start staying very weak, -- you will see questions about the majors and

who can keep their dividend and who can't, whose spending 10 be cut and who can't. becauseho would they be it would seem to me that for a lot of the u.s. oil producers, they are having a hard time keeping a dividend. sarah: u.s. producers certainly are having trouble. limited at companies like exxon and bp that have a bigger ability to dial back that capex. for a variety of reasons, we think that there is an ability right now for somebody like and bp to look to their -- like a bp and exxon to hold on to their dividend. betty: it has been more than 12 months. let's see how much longer, how much longer are we talking? sarah: i think people were expecting a v-shaped recovery.

in,le thought the worst was i think right now, the question is how much longer are we going to see an oversight i was demand going to look like. betty: get you just do the math? sarah: you can, but the matthew exchanging. -- but the math just keeps changing. onshore production has not come down much because the efficiencies have been much better than rate drops so you have onshore production that is down only a half million barrels in the u.s. i think you will start to see that market bounce, but you are looking at a supply of 95.9 leanne barrels a day -- 95.9 million barrels a day. betty: it looks like it is pushing it toward the end of the year. sarah: if you see it's faster

drop in u.s. production will start to look a little better. betty: thank you so much for stopping by. much more ahead on bloomberg markets. let's talk about something a little more fun, super bowl 50 is set. we will look at what are pairing of the panthers and the broncos is going to be profitable for sponsors and what about the ticket prices? ♪

betty: welcome back to bloomberg markets. it is time for the business flash. former pharmaceutical executive orton's rally will have more time to appear before congress.

lawmakers held the hearing on u.s. drug prices because of a major snowstorm the blanket the east coast. he was supposed to a heat -- upload -- supposed to appear tomorrow, but they will hear from him on february 4. films officials have high hopes for their new low-budget hotels. worldwide has more -- says more than 100 locations are set to open. that is your latest bloomberg business flash. let's head to europe where mark barton is seeing a decline in european stocks. energy producers and banks heading lower, we are now at the lows of the session. mark: we are at the mercy of the oil industry. the banks are at the mercy of concerns of italy. those are the two industries driving the slow but what an end to the week. last week.

stoxx 600, biggest to hunt -- biggest to gain gain in over four years -- biggest two-day gain in over four years. boj, new zealand and russia, today but a few will be listening to their every utterance. and it seems like a distant memory friday, buried in the snow and i had to dig myself out. we will see you in an hour. let's get to abigail doolittle from the nasdaq. we mention we are at the low. -- mentioned we are at the low. >> the nasdaq is down by about are a percent but two likely trading higher. amazon expected to put up a strong fourth quarter after the bell, but michael packard says the first -- amazon has been

having a tough 2016 so far, down more than 10%, could make investors wonder whether or not it could reach raise its record high from last year. facebook stock is up, also in bullish comments, these firms expect the company to put up a strong fourth quarter. outlook couldter be a problem for the company, calling it the biggest risk. facebook was a top winner in 2015. investors may wonder whether or not the stock can recover that record high. is setsuper bowl 50 after this weekend. the carolina panthers beat the arizona cardinals on sunday. not much of a game.

a big day for peyton manning as well, rockers -- denver broncos defense beat the patriots. fourth peyton manning's trip to the super bowl and possibly his last. evan, is this a matchup that is going to be generating lots of money? you cannot do better than peyton manning, he is the face of the nfl in a lot of ways. the story writes itself. he is the ultimate competitor, but for the nfl's perspective, they love having the broncos there. denver is fairly close to san francisco, fans can drive or fly very quick. we. talking ticket folks last week, they really wanted arizona to be your lineup. another fan base that isn't there all that often, fairly close to san francisco. carolina fan wise in ticket wise is kind of a mystery.

they have been there once in the franchise's history, no one knows how quickly they will travel. disaster happened last year with short-sellers getting's lease in the final couple days. betty: i think we will see -- for their bankruptcies? -- were there bankruptcies? evan: the whole thing fell apart. was a lot of concern about the ticket market last year and this year -- people are going on more cautiously which is why ticket prices are so high. betty: who do you think will win? evan: i would love to see peyton manning go out on top. --ty: you think they will? do you think they will ? evan: i don'tevan:, the panthers have a really good team. betty: still ahead on bloomberg

markets, a media veteran who has disruption in his dna, jon klein, weighs in on everything from twitter to snapchat's mobile video juggernaut, 7 billion video views on snapchat. ♪

betty: let's get back to twitter's turnaround, trying to turn around. one-way jack dorsey has trying to jumpstart the company is by integrating another program like periscope. the challenges facing jack dorsey let's bring in jon klein, the founder and tv.of cap tv -- of tapp you ran a little network called cnn.

there is a lot of mobile video. right now. it is not twitter but snapchat seems to be that -- that seems to be winning against facebook. jon: we are living in a visual time. millennials don't care nearly as much about words as they do images. they will ease on images and they want to upload their own, but that puts twitter and a huge disadvantage and i think jack dorsey's credit, he has taken the bull by the horns and says we need to reset this whole product and only the founder and the original visionary can do that so although the markets are punishing him today, i think in the long run, it is the smartest thing you can do. betty: what you think twitter hasn't been able to figure out video -- why do you think twitter hasn't been able to figure out video? jon: periscope is an exciting way to get access to the people you care most about, whether

they are famous or not and it has really capture the imagination of a lot of young to beand what jackson's doing is trying to eradicate any internal inertia around integration and think fresh. it is the hardest thing to do for a company that is an old company. they have been around for 10 years. the lesson for any of your viewers today as you look at twitter or net likes or donald trump is to say the things we took for granted disappear very quickly. that is what this represents. jack is saying we have to start again. snapchat, facebook, instagram. who will win out on this mobile video? jon: anybody who is able to into the interactivity

visual equation, so the ability not just to sit and watch a tv show, but actually talk about it with all your friends and by tv shows i mean a clip that could be eight seconds long. far as those viewers are concerned, you have to embrace that and work with it. even including netflix who are simply giving you a one-way experience, here are the shows, go watch them, they will not fare as well in the long run because television has become a two-way community-oriented experience. we see that in there -- in data around the channels we launch and i'm sure that anybody in the over-the-top space, amazon, net likes, they would see it if they allow themselves to because that is what the uptake of video on facebook and snapchat says. if the people don't want to just watch, they want to participate in the process of watching, they want to communicate. betty: they want a community.

out at theome news end of last week about verizon focusing on this nine the product. they are working possibly with somevic put together vice-light channels. is this them being at the forefront of this? that can be local less content or something different and enticing, they have to take advantage of it. the key to it is going to be not simply offering the one-way experience, but how do you invite your viewers in because that makes you step. if you are part of a community, you are less likely to leave then if you are just a viewer of a show. critics have all bemoaned the fact that even of their creating

more shows than ever, it is harder than ever to gain traction with an audience and that is because the audience knows they can find great shows in a lot of different places, but you can't hang with your friends anywhere. friends and connections and communication and community become essential to any media company equation. betty: how does this work for advertisers and sponsors? jon: with trepidation initially --ause there is no set system of measurement of all of this engagement but in the long run, it is a phenomenal opportunity for advertisers to penetrate the community and show that their values and product are in keeping with the values community.f the it is eventually going to be a better filter for advertisers to get their message across. of this content is out there for free, but you are such action based. proposition?value

jon: more and more these days, consumers pay for the content they want the most. that is the direction everything is going, but if in return to get a better experience, better content and ease of use and a sense of belonging to something, you will much rather pay for that than for unknown -- an anonymous video. betty: thank you so much. jon klein, former president of cnn. our politics show will be live from des moines, iowa all this week ahead of the iowa caucuses on it were a first -- february 1. ♪

betty: or it is 11:00 here in new york and good morning. welcome to the european close of "bloomberg markets."

mark's join me live from london. we are snapping our winning streak in europe. : appetite for risk is diminishing with oil the climbing. the european close starts right now. betty: we are going to take you from new york to london to milan. mark: we are at the mercy of the price of oil. it is declining after that rally last week. oil follows today. the oil and gas industry is down. financials are down. we will talk about italy's