welcome to the show. the program and the headlines today from around the world, facebook sends a friend request to wall street. the social networked site is ready to file for its much anticipated ipo today. manufacturers crank up better than expected output in january, but stocks tumble amid the worry that policy may not come. and higher than expected

revenues put a squeeze on amazon's outlook. it's an upward start for outward stock stocks. eurozone manufacturing activity confirms decliners for six straight months in january. germany is failing to offset weakness in some of the peripheral countries. the final pmi number a little stronger than the flash. it's 48.7 in the flash. the final manufacturing index above contraction at 50.4 with 50 in the flash. a seven-month high for that. manufacturing pmi new orders indecked, 46.5, 46.4, a six-month high, still contracting. but i think the point is that we've proven that december was an awful lot percent than october. euro/dollar hitting a session

high at 1.3088. eurozone banks credit standards tightening surged in the fourth quarter. standards tighten amid worsening economic sovereign crisis and eurozone banks expect more tightening in the third quarter. let's combine that into the discussion. richard joins us now. richard, it's clear from the data that december we sort of hit the low it looks like in october. but a large part of the peripheral is still in recession. combine that with the bank lendilen lending data, credit still tightening into the first quarter. we've got a recession in which banks are lending even less. >> yes. i don't think this is necessarily a big surprise.

most of the information that we've seen coming out has been pretty much the same. although we've had a little bit of stimulus with what the ecb did before christmas. it looks as if a lot of that hasn't gotten into extra lending. so i'm not too surprised about the bank figures. i think that the european economies look as if they're slowing. so i don't see these figures as being terribly surprising. >> let's put this into context. we've got another lpo coming up this month. some people talk about a trillion% depending on the rules of the collateral. is that going to filter through into a wider economy and greater buying or do you think banks are just going to hold on to the money? >> no. i think this is a roam amount of money, that it will filter through. if you have a little bit, you're going to keep it to yourself. a little bit more, keep it to yourself and pass it on. but if there is a big bazooka,

then i could see that start to trickle through. i don't think that the measures they've taken have necessarily been bad or have not necessarily worked. i just think that these things take time and they need to be of some size sxp europeans really haven't put a bazooka in yet. >> and speaking of taking time, we have china's forecast leasing activity paradox pushing activities lower today. apparently investors are now worried that the slight improvement in output will prevent the government from implementing policies. they remain in contractionary territory for the third straight month. we have two cop flikting data, but we're not going for a hard landing. what does this mean for policy easing? >> well, first of all, you get a bit of bad news and the market goes down. i think investors are looking at what the chinese policy is

likely to be doing. and policy hasn't been easy. it's almost been trying to push the chinese economy down. as we heard reports from the central government, inflation is still a problem. i think the growth rates are still fine in china. i think although we saw a bit of a pick up in the pmi, the data is probably not as reliable as it could be because probably most of us have been on holiday in january with the new year. i think the general feeling is that china isn't going in for a hard landing. it will be a soft landing. >> how closely do you think policymakers are watching the situation over in the eurozone? do they have tools they can use to spur growth if they need to? what are some of the things they can do? >> i think they're watching europe like a hawk. europe is very important for

china, certainly as an exports market. and i think china has been helped by the fact that the u.s. has held up its end, its side of the bargain. but europe has been a problem. and i think as europe goes into recession, as we see the furthest territory in europe, that is going to hit the chinese economy. so somewhere down the line, inflation is going to slow and the policymakers will relabls lax. but it looks as though we're not there yet. >> thank you, richard harris, you continue to stay with us. we are mostly green on the board. advancers outpatsing decliners by more than nine to one. slim gains yesterday for european stocks. ftse 100, xetra dax up over 1%. we started february up 1.2% higher. 1.5% higher on the xetra dax. another 1.5% gains on the cac

40. banks are a little firmer today. utilities with, crux and materials, financial services, they're all on the upside. a little weakness elsewhere. in fact, there are no sector losers at the moment. as far as europe is concerned, we saw a session high post that pmi data. a deaf sigz, we've got the first print of manufacturing pmi out of the uk in around 20 memberships or so. euro/yen, just below the 100 mark. euro/sterling at .83. stocks up, ten-year treasuries now yielding 1.82%. it looks certain we might get more qe thursday. here is the key. ten-year btp, 5.78%.

so that's something that we've been concerned about, of course, indicating a much better appetite at the moment. christine, back to you. >> the eurozone, of course, data coming up in the u.s. kept trade cautious here in asia. today was all about china and the pmi data coming in stronger than they expected. in the end, investors took it in with a little bit of salt. in the end, that kind of drove equities lower. investors should be celebrating that data did not point to a hard landing in china. the hang seng is off 0.3%. nikkei 225 is pretty much flat. at this point in time, we had earnings again. that kind of put the nikkei to the down side, capping any upside in this particular market. the kospi up marginally. elsewhere, taiwan weighted index up two days. stabilizing just a little bit, up 0.4%.

australian market continuing to push lower, 0.9%. sensex trading to the upside, 0.5%. so overall, mixed picture, trades pretty cautious, ross. >> facebook is going to file for its much anticipated ipo, we believe. reports suggest that the social networking site is looking to raise $5 billion, half of what was previously thought. reports suggest the company has chosen five underwriters with morgan stanley taking the lead. morgan stanley, of course, has led several high profile ipos, including zinga. most people think we'll get a valuation of around $100 billion. is that possibly justified? >> oh, it's tough, isn't it, to

think that a company so young which produces a lot of interest but no real product where revenues do at the moment seem to be relatively thin, it seems a tough valuation. one can't help thinking that this is maybe the stage of the market where perhaps investment bankers are saying, let's see if we can't get something away now. prices aren't too bad. let's see if we can get something away now while we can. but it does seems a pretty risk valuation out there. >> it reminds me of the time where there was a huge dotcom double and then it started to burst. are we at the start of that now? >> you know, it reminds me of the same thing. in the year 2000, i was thinking, we may get a small dotcom take over coca-cola. things were crazy. this harkens back a little bit to the day of craziness. but facebook is a darling.

everybody loves it, all the kids are on it and that's one of the reasons why we're looking at valuations like this. but if you ask me, it has fundamentals in terms of valuation behind it, i would say it's a tough task. the european commission is announcing its verdict on the po posed merger to anti-trust regulators are expected to block the deal. they're worried. we look at the situation in the market and we see that a merger will create -- from the competition point of view. we ask for remedy and if the remedies are not on the table, we need to grow our accomplishment. >> also, at davos, he said he

could not understand the commission's reviews. >> it's european only, not the euro. two, they are excludeing the over-the-counter business from the scope of the market. the counter overall is 90% of the derivative market. so, of course, on this market, we look like a monopoly. but if you put our merger in the real market, in global, it's just a fraction. do you have any sense with deutsche bourses that the commission are just looking at the exchange risk in this market and that's a small chunk of the entire global platform? >> actually, i do have some sympathy with them. but i -- it's a very complicated one. if you're an anti-trust person, you have done exactly the right thing with the european anti-trust authorities. you've looked at the markets in europe and that's the job that these guys in brussels do.

strictly speaking, they're exactly right. but i do have some sympathy with do you ha deutsche borse. of course, there are mergers and exchanges in asia with which they will not compete. so i do have some sympathy. the problem is the conflict between anti-trust policy and industrial policy and the two often don't meet. >> let's look at that point. if you're in europe and you wanted to go somewhere owner that deutsche borse nyc, where could you get? >> you can't go somewhere else.

you could go to your rival a, b some people see that as a distraction it hasn't got much volume. if you happened to trade these other products somewhere else one probably couldn't. and somebody coming in and trying to compete with this merge merger it would be extremely hard. as i say, the anti-trust folks looking at it from a european perspective are technically right. >> jeremy, it's richard in hong kong. why can't we trade 24/7? surely this is part of the steamroller that we're seeing of maybe we're going to have two or

three major markets, maybe it will be specialized. and it may well be that we'll have one derivatives market in asia and one in the states. >> that may be where we're moving. but what's really interesting about this and the fact of it has crept up and caught the exchanges globally unaware is the increasing muscle airty when they look at getting bigger for the sake of being bigger. the banks, which are the largest customers of these exchanges around the world and which are among their biggest competitors because they keep launching these bigger platforms to compete against them, you have this dynamic which is very interesting. it's hard to see that the anti-trust authorities aren't going to be even tougher going forward. and there is a question mark over in canada right now where you have the tmx canadian exchange which some viewers

might remember was trying to merge with the london stock exchange and that failed. they're about to opine as to whether that should be -- a canadian transaction should be let through to create a big national champion there. it's quite questionable. >> jeremy, regardless of what may or may not think, presumably, it's going to get blocked because i can't imagine anyone is ever going to go against the wishes of the competition manager. >> i agree with that. i think people often underestimate the power of the anti-trust commissioner in brussels. and each the chief executive was on the air admitting that he had misjudged certain aspects of this. i think it's probably over. >> skrarmy, thanks for that. good to see you. >> now, you can tune into cnbc

at 15:15 eastern time for closing bell. amazon talks about its loss. we'll look at the impact on profits.

welcome back to "worldwide exchange." amazon is warning of a possible first quarter loss. first quarter profits fell sharply, down 57% as the online retailer continues to spend heavily on technology as well as expansion. operating expenses jumped 38% in the fourth quarter outpacing a rise in revenues. soft european sales and flooding in thailand caused supply problems. amazon wouldn't say how many kindles it sold during the holidays. analysts estimated about maybe 6 million of the new kindle fire tablets. we'll check amazon shares and see how that is shaping up. down about 7%. $137. >> thanks very much for that, christine. the market broke i cap today. now they expect to make a top

profit of 258 million pounds compared to forecasts of 390 in november. the weak trading outlook had been anticipated, though, because that new forecast was towards the top end of expectations. so it was a weaker performance overall, but it was about what has already been priced in. elsewhere, spain's fifth biggest banks has posted fourth quarter profits above expectations. it set aside less cash. net profit up to 75 billion euros. that's a rise of 10% for the full year. profit was down 19% and the stocks are picking up higher by 1% in spain. hi, with patricia. >> hi there, ross. isn't it interesting that the market is really looking for the positive in the numbers and also in the outlook? stabilization at the moment is a good thing.

we had comments about the guidance. we increased the price target to 1850 euro on infineon. that is after a rally since the beginning of the year. revenue slightly above expectations and still above a drop of 9% in the earlier numbers. operating margins down by 2.14 %. and the forecast for the second quarter at least sales could be flat or slightly lower and also the operating margins should be a little bit below what we perceive for the first quarter. however, here is the outlook of a stabilization in the market has taken. positively. we know that the auto motive sector has been doing well and that the outlook in that particular sector is good. and if the outlook is good in the automotive market then the market is good for infineon.

another reason why we are just currently trading at a session high is our pmi data, final manufacturing and pmi data for germany, again, being revised to the up site. 51 well into extension for the manufacturing sector. it's taken a while for the german economy to get there. sxavengz is also giving us a little bit of a tailwind. the market right now, ross, up about 1.7%. >> trisha, thanks for that. aviation has been selected as the preferred bidder to provide 176 war planes to india. the other runner in that race was the uk. stephane has the reaction in paris. >> the contract is not final yet. it's good news for the french industry. it would be the first time that the company managed to export

its jet fighter. this reveals appear important contract in terms of the amounts. we're talking about $50 billion including the trainings and dimensions of the contract. the contract would come as a price. the company expected an important media technology on the planes. a remaining 100 would give trade in india. french officials want it to remain kosher and was very close to signing a deal with brazil. that is the reason why we'll have to wait until the end of march before the official -- in france. the stock is down 2.7% after an 18% gain yesterday on the share price. christine, i send it over to you. >> stephane, thank you very much for that.

stephane pedrazzi. coming up next on "worldwide exchange," looking at a japanese company getting sharp about its earnings report. the japanese giant will make history by posting its first ever full year net loss. and after gdp readings in the fourth quarter, today there are concerns of a technical recession. we'll have the data right after this.

headlines from around the global, manufacturing activities are contracting in the eurozone except for germany. domestic demand helps china's manufacturers crank up better than expected output in january, but stocks tumble and investors worry that hopes for a policy boost may not come. and facebook sends a friend request to wall street. the social networking site is set to file for its much anticipated ipo today. amazon's spending habits hurt profits as costs are higher than revenues, putting the squeeze on the online retailer's results and its outlook. >> manufacturing activities in the uk has rebounded, somewhat surprisingly.

returning to growth in january. its orders have prison for the first time in six months. manufacturing pmi, 52.1. this is the market services forecast. it was forecast at 50 in january. that's the highest level since may last year. the new orders index is 2.2 in january. it's 49.7 in december. the manufacturer's report increase willingness to spend among some uk clients. and it's the first rise in stocks to finish goods since april 2008. another bit of good news here. it's the drop in input costs accelerated. joining us for more, richard harris is in asia and chris is with us here in london. chris, that suggests the low point was sort of october, november, and we started off the year in better shape.

do you think that continues? >> yeah. i mean, it's great news, a big surprise to everyone, i think, especially the output index which rose to above 55. signaling the rate of growth and manufacturing output of around 25% quarter on quarter, which is a big change for the 0.9 decline from last year. so big turn around. will it last? it's difficult to say. output is going faster than orders. orders are still too weak to cause job growth. the backlog of work is still falling. so it's good news, but we're cautious. >> where do you think this comes from, this jump? what do you think is behind it? >> there seems to be an element of stock building here, replenishing their warehouses to state costs. there is some thought of domestic demand picking up again. we've seen some other pmis that the global conditions are stabilizing in asia and grieving a bit in germany.

there are signs that demand is picking up slightly. >> chris, it's richard in hong kong. it says these little patches of growth here and there, are we actually seeing this develop further out? is it likely to get into some of the more stressed parts of europe? >> certainly what we are seeing is in the eurozone periphery, there's still contraction there. but the rate of that decline is easy and quite markedly so. so that's good news. germany, you're showing a powerful rebound in january. that could feed through to demand in those peripheral countries to fuel exports to germany. hopeful le we'll see rebalancing within the region there. >> do you think we'll nevertheless get more qe in the uk? bearing in mind that there's a weak money supply data we had out yesterday? >> i don't know. i think there's some -- in the works for mpc members.

i think there's increased caution there. i don't think they're cop vinced at how effective qe is. it may encourage them to hold off for another moment or two. >> chris, thanks for that. food industrial says it beat 2012 revenues of 25 billion euros and 2012 trading profit of 2.1 billion euros. the stock was up 2.8% after we got results out earlier, as well, this morning. so i'm just trying to get a recap of what the actual profit was. it says the 2012 car market has called for a rethink, but i think the reaction has been fairly good for the outward looking statements, as well, chris teen. how did we fare in asia today? >> trade was cautious here in asia. not to mention what's happening over in china. that kind of dominated trading sentiment today. with regard to china, we had

official pmi data coming out stronger than expected. but investors took that with a pinch of salt because we had a private hsbc survey which showed a contraction. that put markets lower, why? because investors are now saying, that means that policy may not ease in the near term. the hang seng is holding on to the key 20,000 level. we had the hong kong today. we had rebates for companies, individuals, electricity subsidies and to stabilize the property market. the property stock pulled lower after the budget announced it was going to increase land supply. the nikkei earnings continued to dominate trading. the kospi is up 0.2%. marginal gains show the taiwan weighted index. today we're seeing a modest kind of gain, as well. up 0.4%. continues to extend gains. australian market still pulling lower. 0.9%. new zeeland is up marginally.

a little bit of an up and down trial. >> so it's a surprise in that manufacturing pmi data out of the uk. and we've got stocks today, the ftse 100 up 1.28%. the xetra dax up 1.7%. the cac 40 up 1.6% and the ftse mib up 2%. we've seen yields and italian debt firmly below 6%. 5.78% the last time we checked. banks, utilities all doing pretty well. but even the defensive end of the market is firming up, as well, today. so the weaker sectors, health care, telecom, media, food and beverage are still up. 1.31 is where we stand on euro/dollar. euro/yen, 99.7. we expect some pressures on the bond market.

the gilt rising a little bit after that. the ten-year gilt, 1.99%. we are getting support from banks for this yield here, the ten-year btp, 5.76%. continue-year treasuries, 5.782%. now yielding slightly more than treasuries. that should be supported for euro/dollar. christine. >> over in south korea, this is what's happening in the country sporting a surprisingly sharp drop in exports in the month of january. inflation dips as the eurozone debt crisis continues to hurt the local economy. but investors are slugging off the data. banking on china to support global demand. on the earnings front, south korea's lg electronics seems to have lived up to its mantra. apparently life is good or it's getting better. >> that's right, christine.

lg electronics, the world's number two tvmaker had a profit of $21 million in the fourth quarter. the outset came from its hand set union after turning to the black for the last six quarters. this firm, which runs on google's android passport sold more than 1 million units since october. the tv business surged by 17% to 35 million this year on high hopes of premium lineups such as 3d tv. meanwhile, trouble for samsung electronics. there is a formal investigation looking into technology patterns and anti-trust regulations. the probe is based on a concern that samsung is using a special

pattern to -- the eu started this on its own accord. the commission can eventually impose fines or suggest remedies. >> thank you very much for that. let's get you some of the top stories coming out from japan. we're following around the world, of course. pmi cranking output at its fastest month in january. there was a sharp rebound to 57.5 from 54.2 in december. helped by new data growth, the data will likely settle fears of a fullback. rio tibto has accepted a bid for kalahari shares. kalahari's main asset is its 42.5% stake in australia's access resources which owns one

of the world's largest uranium deposits. let's do a quick check on shares and see how rio tinto in australia is down. down 0.6%. in london, up 0.9% and kalahari minerals up 0.2%. angela merkel is flying to china today. she's expected to explain the decision made by eu leaders in brussels. merkel will attempt to persuade beijing and others financial institutions to invest in germany and the wider eurozone. russia has post posted a pr drop, roche down 1.4% after missing fourth quarter outlook. the swiss with drugmaker is banking on new drugs releasing this year. they're plannin to acquire u.s.

company lumina which will strengthen their position in the market. and a former boss of the royal bank of scotland has been stripped of his nighthood. fred goodwin can no longer be called sir because of his role of the collapse in the bank of 2008 which led to a taxpayer bailout. he joins a motley crew who have lost their honors in the past. that includes rocketer mugabe, the zimbabwe president, and a british double agent an thopny wlunt. around half of what we thought they were going to get for facebook, no final share price will be set for a while. that's left the door open for facebook to invest more money if

they see investor demand. the company has chosen five underwriters, morgan stanley will take the lead with goldman, bank of america, jpmorgan, the others. morgan stanley has led several high profile ipos, including groupon and zing ya. 100 billion, no one has explained that to me, christine. >> no one has explained that to me, either. 100 billion. i don't know what the calculations are, but it sounds lofty. >> the key thing there is -- and we'll get into this a little bit later, how they rate an active user as opposed to someone who has just opened an account. >> i'm just a big question mark on facebook right now. might say a lot of things, might not say much. ross, investors eager to hunt for bargains in japan. blue chip exports on the back of

a strong yen. makiko utsuda has more. >> hi, christine. the yen continued to gain reaching a three-month high against the dollar. it hovers and remained top heavy as japanese finance minister june asamine warned yesterday that the government would not hesitate to intervene in the market if necessary. there is a massive yen selling operation last october when the yen hit the 75 yen range against the dollar. meanwhile, electronicsmaker sharp said it expects the fall into the red for the year ending march with a net loss of about $3.8 billion. it will mark the firm's biggest annual loss on record. the firm suffered from slumping demand for lcd tvs and plans to slash panel production at its main factory in western japan to about half its capacity. shares ended more than 4% lower. nomura holdings met for nine

months totalling $136 million. however, its trading business had improved during the last quarter, leading to a $234 million net profit. and the firm has also been implementing draftic cost cutting measures aimed to reduce about 1.2 billion dollars in expenses. and that's all from nikkei business report. back to you, christine. >> utsuda-san, thank you very much. and president obama is expected to announce details of his latest housing initiative today. he's speaking in virginia at 11:00 eastern. reports suggest the plan will aim to help people to lower interest friendly insured loans. the white house proposed funding the efforts by taxing large banks. something the republicans say they oppose. so mitt romney can add florida to the win column. the former massachusetts

governor took the state's presidential primary with 46% of the vote. former house speaker newt gingrich finished second with 32% in his victory speech romney turned his focus to president obama says saying he's failed the economy and it's time to get out of the way. gingrich says it's still a two-man nomination in the gop nomination. up next, the nevada caucus on saturday. richard harris is still with us. how much a distraction is the u.s. presidential election, richard? >> well, the u.s. presidential election is always a distraction. but actually, probably quite a welcome one because we are talking certainly last year about confidence in the economy. if you've got a distraction like this that takes away some of the worry about the economy, i think that's important. we're seeing quite a bit of good news coming out from the economy, but as you saw with the announcement there, patches on the u.s. economy are weak still.

but it's the old adage that if 80% of the people feel okay, 20% of the people are in trouble, then confidence is usually fine. it's been confidence that's hit by the 80%. so i think the president election will probably mean that confidence and sentiment will stay reasonably comfortable in the u.s. this year. >> yeah. and do you think that the uk economy is going to perform better than many were predicting at the beginning of the year? and there is this projection that that gdp number was weaker than many think. dare i say as we head towards the election gdp numbers might get increasingly better? >> it's difficult to say because we didn't think gdp numbers would be as good as they are now. we had a big shock last year about some of that pain coming

to a head. now time has gone on and i'm still concerned about the impact of austerity in europe. that is going to obviously be an issue. but if we're looking at knocking maybe 1%, 1.5% off growth, then that's not going to be a crisis. certainly it won't be much of a crisis in the states. so there are headwinds out there, but generally it does look as if confidence is picking up along with the numbers and that can't be a bad sign, certainly for the first quarter. >> richard, do you think the u.s. is going to see another downgrade this year? >> it's difficult to say. i would say we like to see downgrades in europe more. i know we had a big one just a month or so ago. but i would find it quite difficult to see the u.s. at a lower rating than much other countries in europe. so i kind of think the u.s. will be okay this year. we may see more downgrades in europe and then, of course, we'll create more of a crisis

there. but i think we're okay for now. i'm not so worried about the u.s., actually, in this cycle. it's maybe the next cycle in about five years time i'd be more worried about now. so i wouldn't be too concerned on that side. >> does that mean you would buy the dollar as opposed to the euro? >> i think at the moment i'd probably favor the dollar. but, you know, these two are always trading punches, anyway. so from time to time, you're going to have a little bit better on one side or the other. the next move, possibly, is if we see some kind of resolution, a positive resolution of the crisis in europe -- and i'm talking maybe on a two or three-month view, that we could see a pick up in the euro if only because people breathe a sigh of relief and say, hold on, the euro is not dead. so i think, really, these -- the two currencies we're going to be trading punches now for the rest of the year and i tell will depend on kind of what the news flow is going to be. >> wait a minute. we do see greece lead the euro.

wouldn't that be bad news for the equity markets or would that have already been priced in somehow? >> yeah. i thought that went into the mix. i think that there is a chance and certainly as we go through the process, you know, greece leads the euro when everyone is terrified. that's a problem. if things start to look as if they're working out and there's some kind of orderly withdraw, then i think that's certainly on the cards. it does look on a long-term basis that some countries like greece, maybe perhaps portugal, the long-term solution really is to leave the euro and sort their balance sheet problems out to devaluation. it's much easier to do that when people aren't terrified of the prospect. so i think that there's a possibility that maybe looking further into the year, that may well be a solution in the long-term. but in the short-term, i think they're going to try and muddle through and say everyone is going to stay in for now. >> richard, thanks for that. good to see you today, rimp ard harris, chief executive of

investment management. we're going to take a short break. still to come on the program, is the recent numbers a fool's rally? our next guest thinks so. find out why when we return. wñwñwñwñwñwñwñwñwñososososvycyíy

it's february, of course. let's recap what happened in january. not a bad month. the dax had a much better time of it, upper around 9% for the month, as you can see, 9.5%. the cac 40 was up over 4% during that period, 4.39%. so a sharp difference of opinion. looking at the ee tallan market, you can see the drop of bond yields had a beneficial impact, christine. >> not a bad month for asian bourses, too. we had japan posting its first monthly gaim gain in thee years, hong kong with its best january showing since 1996. and australia, the first monthly

rise since october, not a good -- pretty good month. but bear in mind, ross, we had a whole week where china was closed for the lunar new year holiday. so some months were off and we need to factor that in, as well. let's get some reaction from richard harris. richard, we had a pretty good month for the month of january. is this likely to continue? what will february look like, in your opinion? >> what goes up must come down. and although generally i'm bullish on the equity markets, i wasn't exactly this bullish. we've had some of the big moves and i think we could see that come back. the news generally, though, around the world is pretty good. the economic news coming out. so it's not really a surprise that these markets have moved on ahead. but i think as we go into february, march, we're going to have more discussion about debt issuance in europe. the chinese economy, i think, has a number of problems still

to work there way through. so i think as we go on, there has to be a bit of a headwind. so i remain still bullish. i think we're looking a little toppy for the six-week view. >> so give us some sectors you would like to be invested in. >> well, i think if you're looking at some of the sectors that were hit hard last year, those are maybe some of the ones you want to be looking at. these are the stocks that are very hard hit when the markets do down, anyway. i think there could be some good opportunities in select stocks there. certainly i was quite bullish on the chinese banking sector for most of the laugh year and i think that's going continue, as well. i think what we're going to see throughout the rest of the year is a few small stops and certainly the big sectors of the market doing particularly well.

>> being in hong kong, we have properties pulling back. would you be a buyer of property counters in long coming or would you kind of hold on for now? >> well, i think the property market is probably due a bit of a slowdown. they're one of few people saying property in hong kong is maybe facing a bit of a pullback. and i think i'd probably go along with that. but, you know, there are lots of people in china who still want to buy property in hong kong. we're a little bit lot of a pressure here. it's a nice place to live. i think it's tough to bet against hong kong property. i wouldn't be surprised to see a bit of a pullback, possibly in reaction to some of the concern we've seep elsewhere in china. >> we've got some news coming out of do you have yo boerse. they have rejected the merger

with nyse euro net. they say it would impede competition and it was incompatible with the common market. it has been confirmed, it has been rejethed by the eu commission. christine. >> yeah. i mean, i thought for a while that, really, as i said a moment ago, it seems crazy that large stocks around the world aren't traded 24/7 or merely 24/5. i think we will see the rise of the global stock market. it may be centered around other markets or derivatives. i think really here, the nyse and the germans probably need to go back to the drawing board,

work out what the commissioner doesn't look and maybe do a work around. because i think the future for these markets is global. there are going to be a whole lot of markets dealing with a lot of stocks. maybe that's the forecast, but that's the way i think the world is going. >> thank you for talking to us, with richard. love it. ross. >> thanks for that, richard. we still have another hour of programming to go. jackie joins us as she does from the united states every day. hi, jacks. good to see you. what's coming up? >> good morning, guys. still to come on the show, the world's largest social network is going to the market with facebook reportedly planning to raise $5 billion in its preliminary ipo. we're going to discuss whether strong demand could push that number even higher. plus, mitt romney secures the lead in the race to be the republican presidential candidate. but as newt gingrich vows to fight on, how many more months

could this battle continue although last? as always, keep your e-mails and tweets coming in and we'll put your questions to our great lineup of guests on the show. stay with us.

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nyse. and next, there's a tooit tie-up would impede competition. and here in the u.s., facebook sends a friend request to wall street. the social media giant is set to file its much anticipated ipo today. domestic demand helps china's manufacturers crack up better than expected output in january, but stocks tumble. investments worry that much hopeful for a policy boost may not come.

>> in the last few mirchbs, we heard from deutsche boerse. the eu rejected the planned merger with the nyse euronext. >> we should have been well prepared for the month. deutsche boerse took a little bit of a knock. it was trading to the up side ahead of the announcement. it's all about the derivatives market. euroneck, you have

euronext, you have to consider the opc, over the counter market worldwide. if you did that, you would have not 93% of the derivatives market in a combined session, but you would have about 15% in europe and below 4% on a worldwide basis. these arguments did not set aside the european commission. i think the market needs clarity now. what the companies could do, they could appeal that decision. they could knock at the door in luxembourg and say hey, we don't like what we are hearing and we want to take this further. whether this is going to happen or not, i don't think it could get any better or softer if they

did that. it would take at least one if not two years. >> thanks for that, patricia. we had some inflation numbers out of the eurozone, as well. january pci, 2.7% ppi forecast was 2.7%. there are those that think the ecb could launch full quantitative easing if there is was an inflationary scare. >> meantime, ross, we are watching shares of amazon after fourth quarter profits fell sharply, down 57%, as the online retailer continues to spend heavily on technology and expansion.

amazon wouldn't say how many kindles it sold during the holidays. analysts are saying it sold about 6 million of the tablets. shares are down more than 7% in frapg further. meantime, allison deans joins us. she's senior adviser at barret and a cnbc contributor. allison, your take on the numbers? >> both the revenue and the bottom line side. if we had seen revenue growth and management had said, we're investing for the future, i think people would have felt more comfortable. but i think you need to see revenues being delivered in the fear term as well as investment spending. if you're still uncertain as to whether or not they'll deliver on your future growth, you're not willing to pay more than the stock is trading at. >> when it comes to valuation, i think that's what investors are definitely worried about with this one and also what we're watching in frankfurt right now. christine. >> jackie, the other thing we're

focusing, of course, china's forecast beating factory activity for the month of january. par docksicly pushed equities lower today. why? because the slight improvement will prevent the government from implementing policies. allison, let me the me get your take on that. what do you make of that mixed picture come out from the u.s.? what's your take on that? >> i think in looking at china, most people have been very worried about there being a hard landing and it looks as if china is doing a better job than expected as managing a slowdown and trying to put a damper on inflation. if anything, i feel more optimistic that we're going to start seeing improved trends come out of china this year and next year. so the bigger fear had been that they wouldn't be able to maneuver this quite well and it seems as if they're doing a

relatively good job. >> now put aside the manufacturing data. we are seeing china grow at a rate of near 9%. so everybody should be celebrating that china is strong at a time like this. what sort of growth figure in china would worry you? 6%, 5%? >> probably below 5%. my sense with we're not going to see that anytime soon. >> the situation in china is certainly an interesting one. what's your perspective when we look out in terms of china? i'm talking about 2013, 2014 and managing its growth. >> my sense is if they're able to maneuver managing growth and maybe getting some of the excess out of the system that people have been worrying about, that people's confidence in their ability to grow at a healthy pace would improve and that's been because china has been such the driver of global growth and

it's pulled things down recently that people feel they can manage it well. i think it helps overall views of the market as well as global growth and helping europe manage some of its way out of these problems, as well. >> that's a great point. we're going to get more perspective from allison deans throughout the program and she'll continue to give us her insight on some of the other topics, as well. coming up, mitt romney secures the lead to be the republican presidential candidate, but as newt gingrich vows to fight on, how many more months can the battle last? it remains to be seen. stay with us. all energy development comes with some risk,

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welcome back to "worldwide exchange." let's pick up the futures. it looks like it's going to be a higher day on wall street. we've seen the picture turn before. right now, the dow will be up by 86 points. the s&p 500 to the up by just under about nine points. this is after a mixed session yesterday. but really staggering, despite the fact that we saw some los angeles losses yesterday. we came off the session lows. in fact, the stock market in the u.s. closed with its best gain in 15 years.

how did the picture look over in europe? >> it's not a bad month for january. we started the first day of february up while advancers outpacing decliners here by more than nine to one. just to recap, surprise going strong figures out of the uk just a few moments ago, 52.1 in january, expectations of 50.4. xetra dax, off at 22%. we have pmis in germany and credit expanding. that contrasts with the rest of the eurozone where those two measures are still contracting. the ftse mib up 2.1%. reacting to yields on tep-year bdps.

there are no sectors today in negative territory. the best of them have been banks and autos, construction and steel doing pretty well. even the defensive end, health care, food and beverages are still up, as well. as far as euro/dollar is concerned, we're not far away from the best offices of the day. euro/dollar, 1.31. stelg, 83.36. it certainly got a boost elsewhere from the pmi. gilt actually still below the 2% mark. there has been an expectation we'll get more qe next week in the banks of england particularly after the money supply data yesterday. one wonders whether that pmi data on manufacturing may cause some support about whether more qe is needed.

and here t ten-year btp. it mentioned it yielding firmly below 6%, now 5.74%. christine, what kind of day have you had in asia kra? >> you mentioned manufacturing data in the uk. it was a mixed picture. we had official manufacturing data we showed stronger than expected. but on the other hand, we had a private hsbc server which showed a contraction. it was a mixed picture. on the whole, both data pointed to the fact that china will avoid a hard landing. that pulled this particular market lower. we had the hong kong budget today. there were some rebates for companies as well as visits. but the policy for property was a key focus. this pulled the market down 0.3%. nikkei 225, earnings continue to be a key focus. pretty much flat at this point in time.

the kospi up 2%. shrugging off any sort of chart data for exports in the month of january. elsewhere, we had the taiwan weighted index up with modest gains. new zealand is up 0. %. sensex trading to the upside, 0.6%. we had pmi data, manufacturing data coming in stronger than expected in india. overall, in terms of equity markets, it's a mixed picture. that's it for me. i'll be back tomorrow with the news that's moving markets here in asia. >> in the meantime, mitt romney can add florida to his win list. former house speaker newt gingrich finished second with 32%. in his victory speech, romney turned his focus to president obama saying he failed to fix the u.s. economy and it's time to, quote, get out of the way.

gingrich says it's still a two-man race for the nomination and he's fighting on. up next in the nevada caucus, it will be interesting to see what happens there. allison, i want to come to you with some perspective on this. that was quite a solid win for romney yesterday. in terms of how romney is looking at this, do they want gingrich to get out of the way already and let romney take over so that we can have -- we know what we have and see what we're stacking up against president obama? >> absolutely. first of all, markets don't like uncertainty. this battle about the future, republican candidates is a problem. but romney is a solid business person. he did have good experience when he was the governor of massachusetts. so i think the market would really like to see it being clearly him and him coming out with a focused agenda and compete with obama on that front. >> and they're really attacking each other with some of these ads we've seen of late. if gingrich continues to attack

each other in terms of credibility, once it comes down to one person, and it potentially could be romney, does that affect his credibility in any way? >> interestingly enough, i think one of the reasons why romney did so well in florida is people were afraid he wasn't enough of a fighter. and the fact that he came out swinging going into this state's vote made people feel more comfortable that he could be an aggressive competitor against obama. >> and say he does clench it and he goes up against obama. what do you think his chances are? there's been a lot of commentary about his background. it's great in some sense that he was a ceo and he has this business experience. but at the same time, he's being attacked for that at the same time. >> and i think it will be a very tough battle. he does have good business experience. his time in police office, dea very good job, as well. my sense is if he comes more centrist, he will be an even tougher competitor for obama.

my sense is if he moves more to the middle, he could be a stronger competitive for obama. >> and in the short time that we have before the election, what does obama need to do to clench it on his end? obviously employment has been a huge issue. we're going to get some numbers out on friday, as well. i think he needs to sort of dramatically bring it down if possible even more. what's your take? >> you have to see employment improve. you have to see economic growth starting to pick up meaning people think employment will improve. so not only employment improving, because it doesn't happen that quickly, but if people feel we're on the right tra track, spending will improve. i also think him going after a

no lame duck congress is an interesting tactic. and mark zuckerberg probably never figured that facebook would ever become a partner in the world of publicly traded companies. we're going to update facebook's status right after the break.

welcome back to "worldwide exchange." it's 5:20 on the east coast. let's take a look at the futures and see how we're poised for trade today. we're going to be higher, but we've pulled back slightly here. the dow would be higher by 76, the nasdaq higher by nearly 10 and the s&p 500 higher by 8. this, of course, after the s&p 500 triggered that critical mark yesterday, the goalen cross, signaling an up trend or potentially a psychological uptrend for the markets. of course, january closing out with its best year for the markets in 16 years. so it looks like we have some positive momentum as we move into the trading day today. meantime, the january ray dp employment survey, that's out at 8:15 a.m. eastern time. forecast calling for appear increase in 70,000 private sector jobs last month versus

325,000 in december. at 10:00 a.m., we're going to get the january ism manufacturing index. analysts there looking for a reading of 54.5, up about 0.5 points in december. philly fed president charles plosser gives his latest outlook on the economy at an event at 8:00 p.m. eastern time. in terms of earnings, we have etna, aol, hershey, marathon oil and northrop. after the close we'll hear from qualcomm, chipotle, electronic arts, green mountains and las vegas sands. automakers are going to be out with january sales. those sales are expected to be up 4%. sales typically drop off sharply

in january after the holidays. facebook is expected to file for its much anticipated ipo. reports say that the social networking site is looking to raise $5 billion, half of what was previously thought. reports are saying the company has chosen five underwriters with morgan stanley taking the lead. goldman, bank of america, barclay's capital and jpmorgan are amongst the others. morgan stanley has led several ipos, including groupon and zinga, as well. still with us is allison dean and dan, i want to start with you on the facebook ipo. when we look at facebooks coming to market, looks like they're taking it cautious, looking for 5 billion, not necessarily the 10 billion that we were looking at, leaving that door open. what's your take? >> my first take is i've seen headlines this morning saying

facebook downsizes ipo. they never sized an ipo in the first place. there were leaks out, there were suggestions. but look, when companies buy on s1, which they're going to do today, it's often a place holder. they're going to go on the road and talk to investors. my guess -- and it's only a guess -- is that the numbers won't be close to 5 billion. >> do you think $75 billion and $100 billion is justified for the company? >> you happen, justified not based on technical financials and p/e ratios and the way people usually value companies. but if you look at the way the social networking companies val value, i think whether it's justified or not, i think that's probably what it's going to get. this is by far the --

>> our apologies. we seem to have crossed wires there with dan. we'll try to get him back. let's get back to allison. he's making the point there, allison, that it's about what people want to pay rather than necessarily the metrics. >> my sense is, it is the biggest player out there. it has such a strong share of the best demographics for advertising, sales purposes, all of that. and it's something everybody thinks is kind of cool. so people have been paying up for these types of businesses and quite frankly, people thought when google came out they were paying a lot and they've continued to grow and come up with creative solutions. if anything, because of past experience, i think the market is more likely to give them the benefit of the doubt. >> dan, sorry one got interrupted there. just on that point that allison made, the difference between google is we can see where the

revenues are and we can see the growth of the revenues. i suppose the key problem with facebook is where are the profits and how sustainable are the revenues going to be? what is an active user is one of my questions. >> and we'll see some of that today. when google filed for its ipo, the numbers were higher than what people expected them to be. it would be interesting if facebook followed a similar strategy. we're seeing billions of dollars of revenue for facebook. this isn't a fly by night company. it's become a real platform for others. i think it's sustainable. the question becomes, do people believe it's that 100 billion company as opposed to a nice 30 billion dollar number. >> and what do you make of morgan stanley being the lead

here? this is a pretty big win for them, no? >> it's a huge win for them and more importantly, perhaps, it's a enormous loss for goldman sachs. goldman sachs had thought to be the front-runner to get this, in part because they were chosen to be a secondary offering of private stock last year, which kind of went into the haywire. you wonder if that's why goldman went down a peg. apparently this is a continuation of the last few years. >> thanks so much, dan, senior editor from "fortune" magazine. coming up on the rest of the program, u.s. stocks put in their best january performance in 15 years. can the rally continue or will the competent ruin the party? we'll discuss that after this break.

if you've just joined us, a very good morning to you. headlines from around the globe, no surprises. the commission blocked the proposed merger between deutsche boerse and nyse. it says it would impede competition. and facebook sends a friend request to equal street. it's expected to file for its

much anticipated ipo today. manufacturing pmi and credit still contracting to the likes of france, spain and italy. but not so in germany. in the uk, risk of recession eases after a surprise return to manufacturing growth in january. and amazon's spending habits hurt profits as costs sore higher than revenues, putting a squeeze on the online retailer's results and its outlook. >> and if you've just woken up stateside and joined us, a very good morning to you. this is where european equities stand, near the best levels of the day. ftse 100 up 1.4%. after over 9% gains for the month of january. the ftse mib up 2%, as well. just going to get the results of a ten-year bund auction, as well. pmi for germany have come out pretty well today. they're back in expansion

territory compared to the rest of the eurozone, although the final pmis were better than we might have thought. and a surprisingly good number out of the uk. that continues, jackie, it means the uk will avoid a several dip recession last week in the fourth quarter. >> yeah. and that's certainly good news, ross. and that positive momentum is translating here in the united states, as well, as we take a look at the futures. looks like the dow will be up by 83. the nasdaq higher by 10 at the open and the s&p 500 higher by 8 and change. this is after the stock market closed with january being the best year in 15 years, which is a pretty staggering stat when we look at it. let's take a look at our markets there. you can see we're doing quite well when the dow up, the nasdaq outperforming, as well, with a nice month to date gain of 8%. let's take a look at the vix because that's a measure of fear and volatility. a good gauge of that in the market.

we're sitting just below 20 at 19.44. seeing the vision up about 0.2%. joining us now is craig mcdaniel, president of the mcdaniel korpgz. still with us, our guest host, allison dean. craig, i want to go with the to the markets. obviously, the s&p 500 hanging out over 1300 and that is an important point. we also had the gold.cross, which you really signaled double digit gains for the market. what's your take on the market so far and the performance that we've seen? >> jackie, locally, i do see some good things happening. i'm on the front line and i meet with my cliepts every day. and i see their competent increasing. but i'm just not jumping on that bandwagon yet.

i think it's still fragile. amazon reported a loss last quarter. the holiday sales were not as strong as we hoped. and the debt out there, the public debt, the private debt, i think it's acting as a bit of an anchor on our economy. and solo we're doing real well now and i hope we do well longer, i'm not as optimistic for this year. i'm still a little bearish on the market for this year. >> and you bring up a lot of great points there. but i want to stick with tech for a moment. we did see those amazon earnings. and i mentioned month to date, we saw the nasdaq up 8%. are we seeing a bubble in tech here? and is this something we need to be worried about? >> actually, i don't think there's a bubble yet. and i think that one of the strengths of our economy, really, is our technology and also our american developed technology. so i don't see a bubble there yet.

>> would you even consider amazon tech? wa do you think will happen in the consumer sector of the market? >> well, i -- rather than pick individual stocks, i tend to pick the stock pickers. now, we like amazon. in fact, here in south carolina, amazon has recently started -- opened a large distribution and call center. we think that we do see more people moving toward the -- using the online retailers. >> and, craig, i want to get your take on gold here. we've seen some staggering moves in gold as of late, but you are a bear on the pressure metal. tell me why. >> well, you know, gold is one of those things that we don't have a huge opinion on. it's one of those things that we're not in love with, but we don't hate it, but we just don't get too excited about it at this level. even though it's gone down from its highs, it's still very high historically.

and we think that since we don't feel great about the economy for the year, we feel like as one of the other commodities, that it's probably going to go down more. there's a chance that it will go down more this year versus going up. >> where are you telling your clients to put their money if you're concerned about the markets? >> that's a good question. right now, we actually are a little bit contrarians. we do like the idea of treasuries. we think that there is a lot of confidence there. we actually like some of the fixed incomes right now. not with the longer durations, and we also like the -- we like the municipal bonds. we're a little -- we also like dividends. dividend paying stocks. we're just -- we're just being cautious about our picks and trying to do some good research on the stock pickers and municipal bonds. >> craig, a lot of people got

burnt last year forecasting the end of the treasury bull market. we had another one yesterday that came on and said i'm a big bear for treasuries. why might they be wrong again? well, you know, i simply think that the government is going to do everything they can to hold down interest rates. and i think the -- i'm less worried about -- i'm really less worried about inflation. i think because it all draws back to the big picture of how we feel about the economy and we think that interest rates are not going to go up. and even as low as they are, they still may go down a little bit more. and we think that the governments do everything possible to keep them low. and, you know, there's some real problems with that. keeping those interest rates low, it takes a tool away from my clients. it's hard for my clients to plan for their retirement when they get a 3% return on treasuries, yet that's not going to allow

them to reach their retirement planning goals. but we feel like there's probably less interest rate risk out there than most people perceive. >> at least in the short run. >> yeah. i was going to say, is that a six-month view or a one-year view? what briefly. >> briefly, i would say that certainly a one-year -- a one-year window and maybe a little bit longer than that. >> okay. >> and, you know, everybody is trying to go with a shorter duration on the bonds. that does give you less risk. but you also will get more bang for your buck with a little term duration. >> great. stick around. we'll come back to you. more from allison, as well. we've had a ten-year bund auction. the second lowest yield ever in that auction since we created the euro. the yield is set at 1.82%. we sold 4 billion. they were looking for 5

essentially. the bid to cover ratio, 1.4. they've received 5.68 billion bi bids. so not a bad result. bearing in mind just how low those yields are, extremely low yields, with as well. just to confirm, the -- as we were told in davos last week, he wasn't going to suggest this merger go through. commissioners have met this morning and they've agreed with him, so the merger wasn't happening. and probably the most expected decision of week. jackie. >> yeah, and of the month, as well. president obama isn't the only one singing a happy tune. mitt romney is singing one, as well. ♪ oh beautiful for spacious skies

for amber waves of grain ♪ ♪ for purple mountain majesty ♪ romney takes florida towards becoming the republican presidential nominee. a breakdown of what we've learned from the sunshine state and what lies ahead, coming up next.

together, we will build an america where hope is a new job with a paycheck, not a faded word on an old bumper sticker. >> mitt romney adds florida to the win column. the former massachusetts governor took the state's republican presidential primary with 46% of the vote. former house speaker newt gingrich finished second with 32%. in his victory speech, romney turned his focus to president obama saying he failed to fix the u.s. economy and, in fact, it's time to, quote, get out of the way. joining us now, we've got kasina grier and allison dean still with us. christina, i want to talk with you first. of course mitt romney wants president obama to get out of the way, but i'm sure in the

short-term he wants newt gingrich to get out of the way, as well. newt is continuing to vow to fight on. what is your take on this? >> i don't think newt gingrich is going anywhere anytime soon. even though in february there are several caucuses and primaries coming up, the actually numbers for mitt romney to take away a huge win just aren't there. we're going to see several states in march that can lead and newt gingrich knows that he's not going to step aside anytime soon. >> and how long before it becomes very clear one way or the other? >> i'm thinking mid to late march, to be honest. if mitt romney continues to win, then we'll probably see suppressed turnout. for instance, the next primary and caucus coming up is nevada. now, the last day for people to register as republicans is january 20th. the day before gingrich won south carolina. there were many people who may be excited about gingrich but they haven't done the due diligence beforehand to become

registered republicans. >> christine, it's ross here in london. i'm wondering if newt gingrich is good for mitt romney. doesn't he need it? it means he has to react to him and it shows he's a fighter. >> well, yes and no. i mean, you know, we're always weary of having a primary season that's really drawn out and it turns into mudslinging and not necessarily about the issues. so mitt romney has to do an interesting dance to keep his eye on the target, which is barack obama, but making sure that he let's his guard down because newt gingrich definitely wants to stay in the race. >> and i was reading in your notes that romney is a little bit of an indifferent candidate. how does he start to shine even more as we get closer to that critical nomination point? >> i think that's the question that every single top level republican is trying to figure out right now. you have a man who has been running for about two decades, yet still no one knows who he is is and what he's about. so that's something that romney

is clearly -- needs coaches and clearlies has some new blood on the team and they're going to help him develop a strategy that is not just a candidate for the -- i guess romney. and they want to make it so people are galvanized for him. once you get to the general season, it has to be, well, he's not obama. you know, you really have to have moves there. >> and that's a really good point. alley sop, we were talking about uncertainty before and the markets don't like uncertainty. they want to see a strong republican get into this race and take auto president obama. what happened to the markets when we do whittle it down and we get one nominee that goes head to head. are the markets going to start feeling confidence coming back into the u.s. and what we see going forward? >> it depends. then you wind of having, again, uncerta uncerta uncertainty. so my sense is if people get a clear sense of his agenda, they'll feel better about the markets.

interestingly enough, if you look back in history, the market goes up 51% of the time when it's democrats. the market doesn't often have a bite between republican and democrat. >> i think they just want clarity. >> knowing the agenda and clarity i think will be a difference. >> and, of course, you can't count obama out. he is very, very charismatic and he's done a fantastic job. what does he need to do in the short-term to rise his star a little bit more, to get him feeling more confident with the american people? he didn't bring the changes that he necessarily promised. >> well, one of the things he's doing right now is trying to point out that congress has stepped him every step of the way and that congress has tried to do things. but also pointing out that, you know, we were coming out of the one of the worst financial crises in history and these numbers aren't so bad. people don't like hearing that when you're one of the unmroit employed, but maybe if you can focus on that and use that as a way of leverage before the

election, it will help them. >> november is a long time away. there's so many things that can happen, in the housing market, in the job market. and i think change for 2008 is what jobs will be for 2012. as long as obama and the administration can really sort of elevate the number of job creation, start to suppress the significant numbers of unemployment which are hovering around 8.5% for the nation. but in some communities, you know it's much higher than that. as long as it's jobs, jobs, jobs and looking at the capital for mitt romney instead of his past practices that aren't so squeaky clean, then i think the democrats have a great shot. >> and that's an excellent point. thank you so much, christine agreer from fordham for joining us with those insights. ross, over to you. >> thanks for that, jackie. and, perhaps, the biggest nonsurprise is the commission has confirmed it's blocked the

merger of exchanges deutsche boerse and nyse euronext. let's recap that, patricia. >> i've just been to the press conference history of the deutsche boerse. it was interesting what he had to say. they're going to go on with their stand alone strategy. we expected that this deal may not have gone through, they expected it, as well. i thought it was very interesting to see that he said we made consuggesticessiononces could not go beyond what was justified. the second thing he said, we also we also said from the beginning, this is a merger that we want, not that we need. it would be good to see some consolidation, however, we don't need it so we are set to do it. i thought it was interesting that he was saying all the regulation coming up, it's only positive for the business.

in terms of numbers, they will come out in a few days time to see exceptionally good numbers for deutsche boerse. stay tuned because "squawk box" will have an exclusive interview with the head of nyse euroneck, duncan niederauer. there's another exclusive interview with bob greifeld. to that point, you need to watch cnbc. and coming up next on the program, with facebook has pretty much taken over the world's social ads with 800 million global active users. but with the ipo looming, will it be as successful on wall street? stay with us.

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okay. ahead of the u.s. open, the cac 40 up 1.4% worth pointing out, yields continue to fall now firmly below 6%. we're down at around 5.75% level. remember, it was only a few weeks ago, we were back over 7%. so that really gives you the best indication that sentiment has turned around somewhat ahead of the next big ltro we have coming up this month, jackie. >> and that will be interesting to watch for. meantime, ross, the positive momentum that you're seeing, that is translating here in the united states, as well. looks like we're going to have a higher open. the nasdaq higher by 12.4 and the s&p 500 could be higher by

8.6. that is at this early time. meantime, the january adt employment survey, forecasts call for an increase of 170,000 private sector jobs last month versus 325,000 in december. at 10:00 a.m., with we're going to get the january ism manufacturing index. analysts looking for a reading of 54.5, up about half a point from december. also at 10:00, december construction spending is out, forecast to rise about 0.5%. philly fed president charles plosser will be out at 8:30 to give his economic outlook. among earnings, before the opening belt we have the aetna, aol, hershey and after the closing bell we'll hear from qualcomm, chipotle, electronic arts, green mountain and las vegas sands. the other thing we'll be looking at is the expected facebook ipo

filing. we still have craig mcdaniel with us and allison dean to talk about that. alley sop, i want to start with you on facebook. highly, highly anticipated ipo, raising about $175 to $5 billion. do you think it's worth it? >> you know, i have to see the numbers in greater detail, but based on how big they are in the market and the sweet spot of the market, i think it could be worth it. my background is financial, so i'm looking at low pe multiples. but i look at some of the companies that capture what's going on in the markets and the trends and my sense is they probably are worth it. >> meantime, craig, i want to get your thought on today's adp ahead of the unemployment report on friday. what are you thinking? >> well, you know, we certainly look at the jobs report. that's the last couple of months. they definitely have been moving in the right direction. that's probably one of the biggest factors in helping us continue in this recovery if we can continue to have our jobs

market improving. >> okay. thank you so much, craig mcdaniel, joining us, president of the mcdaniel corporation. thank you for that, your time this morning. of course, allison, just a quick look today, as well. a lot of earnings on the docket. what do you think is going to be the standout? >> i think the standout is going to be that they're all doing relatively well. i don't think you'll see amazon because it's company specific. my sense is we're going to see incrementally positive news coming out on the earnings front. >> so more of the same in terms of the earnings front there. >> yes. >> allison, thank you so much for joining us on the program this morning. that wraps up "worldwide exchange." >> and don't forget, of course, to keep watching "squawk box." they're coming up next with that exclusive interview with duncan niederauer. we hope you have a profitable day.

good morning. no deal. european regulators are blocking the deal between the nyse and deutsche boerse. a social offering, facebook set to file for a long awaited ipo as early as today. and your money, your vote. mitt romney decisively wins the florida primary. but newt gingrich pledges to keep fighting. but whoever says, yeah, i might drop out it's not usually in the cards. it's february 1st, 2012. "squawk box" begins right now.