brought to you live from n london, singapore, and around the world. this is "worldwide exchange." hello. welcome to the program. the headlines today from around the globe in the u.s. it's all about jobs. again, today's unemployment data is to show slow, steady, yet unspectacular hiring growth. well, official versus private. china's pmi released. worries over a hard landing dissipate. the government in spain cleans house in the financial sector with the economic minister asking banks to raise another $50 billion euros in

extra capital. panasonic warns of a record $10 billion loss this fiscal year on a long list of problems. the tv maker says it hopes to swing back to the black by 2013. a warm welcome to you. we have pmi out of the eurozone. it's the final pmi, 50.4. the flat was 50.5 so slightly weaker. 48.8 in december so we are at a five-month high on this. the final pmi new business 48.7. 48.5. so the final composite 50.4 comes in on the fast numbers, the manufacturing number on the final, slightly higher. it's evened it self out. but we have snapped a four-month

decline in january and expanded, albeit a very weak recording, to these january numbers. head of international european economics at barclay's capital. good to see you. what we have seen in the data is a sharp divergence between germany and the rest on pmis, on credit, on employment. and is that going to get worse over the next few months or not? >> probably it is going to get worse, yes, because we have been seeing, of course, substantial tightening in financial conditioning particularly to the banking secotor in southern europe are. to that extent it has been considerably what happened after the three-year l ittro but coule tighter. southern europe has a fiscal consolidation. if you look at the bank of italia, they recommend italy is going to tighten fiscal policy

by about 3% gdp. spain probably 4.5% gdp. so we should expect ongoing did i ver generals between north and south europe. >> is the ecb going to respond more to the weakness in this consolidation in italy and spain? >> i think the ecb clearly has to be very concerned about what's happening in southern europe because the problem there is the weaker the economy, the gre greater the challenge for debt sustainability and it's really important that although we're going through this greek debt restructuring process that doesn't spill over into other countries. it wants to really have greece as an isolated case. so to do that, then policies are going to have to be very much focused on helping southern europe. now the next ltro should provide some degree of support in that case but, nonetheless, we should be expecting ongoing differential.

europe needs germany to recover still. it needs a big recovery there. >> julian, hi, this is christine here in asia. how supportive is the latest china services pmi data? a little bit mixed but all in all it says china could possibly avoid or most probably will avoid a hard landing. is that your view as well? >> i think the situation for china is start to go get a little bit better. we have to be very careful about the numbers coming out for january because cheerily the chinese new year did happen at an earlier stage this year and that could definitely be depressing the activity related indicators and that was apparent in today's service data and also in the manufacturing data so, therefore, we are going to see china still showing moderate expansion particularly for the industrial sector as we go for this year. chinese economists would point out there is a new fiscal stimulus which they would estimate to be around 1% or 2%

of gdp coming forward. it really helps support the economy. at the same time i think western investors are going to be very concerned still about the potential overhang of construction investment in china which is suddenly a big issue particularly when property prices are starting to decline. so i would say it's a fairly mixed outlook for china. it shouldn't be a hard landing. there will be fiscal support there, but we do have to watch the data particularly the investment data very carefully. >> thank you very much for your invites. head of international european economics. of course joining us from barclay's capital looking at asian equities a mixed picture. investors are staying cautious ahead of the jobs data. also awaiting more details on the greek debt restructuring talks as well so that's keeping investors to the sidelines today but financials continuing to lead the way higher. the shanghai composite is up. we have that services pmi data.

coming in a little bit stronger than expected. so pointing, of course, dissipating all these concerns about a hard landing. the hang seng, remember, this particular market soared 2% yesterday so taking a little bit of a breather pulling back today. but pretty much to the upside, ending to the upside pretty much flat. the nikkei 225 earnings are in focus. we are watching panasonic very clo closely posting an annual loss. it could be the second biggest among japanese manufacturing companies due to sluggish demands of tv sales. a write-down for its acquisition. the kospi is down. taiwan weighted index up. australian market down 0.4. new zealand pretty much flat. the sensex trading to the upside. pretty mixed on a friday, ross. mixed here as well. just over an hour into trade. 5-4 advancers being outside weighed by decliners at the moment. the tou jones stoxx 600 completely flat.

some slim losses and gains yesterday. the ftse 100 is up. the ftse mib very flat indeed so no change there. we keep our eyes on the bond markets, on treasuries going into the employment year. the yield has been steady over the last couple of days. ten-year bunds yielding more than treasuries can he moment. a big data coming out from the uk. services pmi. now if that's a strong number it will take away fears that we could be heading for a recession after a negative gdp. it is also put the decision on whether we get more qe at next week's meeting. big number coming out. and here is the key thing. yields on italian btp continued to decline 5.5% and that's been a real indicator of stress and investor concerns. over the last few weeks as we've seen talkses go well in january, the pressure has eased undoubtedly on the italian debt.

keep your eyes on that. as far as euro/dollar is concerned, steady. the euro/dollar trading and we'll move it on and show you exactly where we stand. a slight bid. the euro/yen, flat. the aussie dollar firmer. not far away from the all-time lows. christine? hey, ross, the other thing we're focusing on is the jobs report out at 8:30 a.m. eastern. the dow jones forecast calls for an increase of 125,000 in nonforeign payrolls. seasonal factors could impact the january numbers as retailers and package delivery companies it typically let go workers hired just for the holidays. but the mild weather last month could lead to an uptick in construction work eers.

unemployment has seen holding steady and average hourly earnings are expected to rise 0.2%. let's go to julian for 0 some reaction. are we likely to see some stability creep back in? >> yeah, i think that is the general message. i think you're going to have to look at something like the three-month trend here. we obviously had quite a good set of numbers coming out for december. it may not be quite as good with the numbers we're getting out today or january. nonetheless there is traction arriving in the u.s. labor market. i believe we have positive momentum that is being reinforced by the jobless claims data, for example, that we had coming out yesterday so it does appear that this very, very aggressively accommodating policy is gaining in the u.s. it's gaining traction. momentum is improving. this should also be helping the consumer side particularly if we

start to see inflation rates come down. so on the whole we're still quite positive on the united states economy as we go into 2012. >> what kind of number -- what kind of jobs number do we need to see to increase chances of qe3 in the u.s.? >> okay, well, i think for the fed it is clear particularly for the chairman, he has said he's dissatisfied with the current pace of recovery so he's going to want to see we're all going persistent, steady decreases coming through in the u.s. unemployment rate. now, in fact, if you go back and look it at the previous episodes when the u.s. unemployment rate has been declining, the current rate of decrease of the jobless rate from the peak to where we are now, the gradient of that is actually steeper than the two previous recovery episodes which is, i think, quite an encouraging sign. it actually suggests that we are getting a real recovery at work but suddenly dealing with such

high unemployment and it's such a sensitive issue and such a lot of slack around that clearly the fed is leaving nothing to chance here, so i would say in response to your question, we are going to want -- the fed is going to want to see nonforeign payrolls really averaging close to 200,000 gains and see the unemployment rate falling on average 0.1 a month to feel the policy is working. >> what about the idea it might be to help the housing market, it my buy mortgage-backed securities rather than treasury securities, would that be a good idea? it. >> i think so, yes. when you think about quantitative easing you have to look at what is the best option and the fed is, of course, started off buying mortgage securities and then it moved into buying treasuries but it has treasury yields down very, very low. now if it wants to impose further stimulus, i think the mbs market would be a good place. the central bank -- there's no

such thing as a free lunch here. it is taking a lot of risk onto its balance sheet and these securities may be less liquid. on the whole we don't think there will be a third round of qe but we say the chance of qe-3 is perhaps as high as 14%. >> that's big enough for investors to want to take the position. >> a lot depends on what happens with the extension or not of things like the payroll tax cut due to expire at the end of the month. if value is extended then that lessens the target. >> all right. stick around, julian. we'll talk more about spain. tough new rules for the banks. will it be enough to convince investors the economy is it back on track. and later on the program $3.30i 5 million for 30 seconds of airtime. the biggest companies clearly think it's worth every cent to

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the spanish government is set to approve new rules for the

country's banks. lenders are being forced to raise an extra 50 billion euros in capital to protect against losses and bad loans. stephane is in madrid. where are they going to get the money from? >> reporter: that's the question. 50 billion euros is a lot of money in a short period of time. the banks will have ep the end of the year. two years but still it's a lot of money in a short amount of time. banks already anticipated this announcement. if you remember last year set aside lots of money and since 2008 in total the spanish banks have already taken 66 billion euros in provisions so they will continue and speed up the process and now some of the banks might not be able to raise capital n. that case they can turn to the restructuring fund for the banking sector in spain. they will buy some convertible bonds and inject liquidity into the troubled banks.

the spanish finance minister thinks it will restore confidence in the banking sector. >> translator: we believe this is going to make it easier for the spanish financial institutions to access the resources of the markets which, for its part, will make it easier for the financial institutions to get credit in a much better way than we do so far. currently the credit of the banks is contracting between 5% and 10% depending on the banks. >> reporter: will it be enough to restore confidence? that's the question. if you remember the banks 173 billion euros to the spanish real estate sector. it's very hard to assess the real value of these assets. even if it's a step in the right direction, probably this announcement is the cheapest option the government could have made but it's not an option because it would have been too expensive for the spanish

government, $173 billion euros, 18% of the spanish gdp so it was impossible for the government to create and take all of this exposure, ross. >> i want to bring julian in here. not just the banking sector but the option went well yesterday. spain's jobless rate up another 4% in january. how much worse does it get before it starts to turn around? >> i'm afraid to say it's going to get quite a lot worse because you look at spain, real estate prices are falling. the construction still hasn't fully adjusted from the excesses of a few years. hasn't seen the scale of adjustment in the united states. as well you have the fiscal consolidation that's rallying at over 4% of gdp this year which is truly extraordinary. in the uk and here the fiscal adjustment is running at around 2% of gdp.

and this all suggests that the economy is going to be very negative this year and when you have negative gdp and you have flat gdp that unemployment tends to rise. all that can be hoped for is the government does push ahead with the structural reform measures and that might then encourage firms it to take on new workers because still in spain you have this big issue -- there's a very, very protected labor market and then there's the unprotected temporary workers. it's the temporary workers don't get enough training, they don't go to fund specific capital and really it's not operating very efficiently. >> stephane has a question. >> yes? >> reporter: julian, after the reform of the banking sector the spanish government is going to announce at the end of next week a reform of the labor market. what do you think is the most urgent decision that the government has to take regarding the job the labor market in spain? >> well, i think what investors

will want to see is evidenced that some of the protection on those workers who are in a labor market actually is in spain, one of the most protected labor markets and, therefore, it's important that the government does create an environment where businesses feel they're happier to take on permanent workers because they're not so scared about the cost of firing them in the middle stage if things don't work out right. that's really what we need to be looking for. >> okay. all right. let's move on. the lower house voted in approval to re-enact the softened bad bank but are they going to need it? patricia has more in frankfurt. patricia? >> reporter: it seems the head of our financial watchdog doesn't seem to think so. she actually says the german bank could do it by themselves, whatever the capital requirement of the eba is, i.e., whatever

the capital shortfall is by individual banks. they may not need to go to the german government. something we've been kind of talking about for a few weeks now giving us also quite a bit more positive momentum in the entire banking second is tore. so if you look at today's trade, deutsche bank still suffering its own numbers from yesterday. however commerzbank has turned around nicely up 0.1%, up as much as 0.3% early on. definitely bucking the trend of the banking sector in general. what was interesting to see was actually what they had to say in terms of regulation as well. first of all regulation is necessary. on the other hand solvency, too, is far too complicated. one thing to have regulation. the other thing is to have regulation which is easily understood and, "b," also easily implemented and that does not necessarily seem to be the case. in terms of commerzbank specifically, of course a

capital gap is huge. already at the beginning of january, we heard from commerzbank that there are about 57% into getting some capital and only at the beginning of this month they actually started to market their new bond, their corporate bond worth about 1 billion euros ahead of unsecured funding at commerzbank said sentiment is good. sentiment in 2012 seems to be positive. are we finding it easier to get rid of or sell our corporate bonds, i.e. the funding environment, raising capital environment is looking good. of course they have to pay a hefty premium in terms of the actual interest. however, important is they have about 6 billion euros worth of capital requirements for 2012 alone and if the sentiment is good that makes it easier to close that gap, the financial gap. >> patricia, thanks for that. julian, was the eba forcing the banks to raise capital a good idea or a bad one bearing in mind the time scale and what it's done in terms of making credit companies worse as banks

sort of scale back their balance sheets? >> that's a difficult one really because something had to be done here and i think at least what the eba did, it did focus minds on the issue and to be fair the eba has published a lot of information. so everybody is much more aware of the situation than earlier on. perhaps the timing could have been a little bit more staggered here. of course what the eba said is you have to reach these ratios but then the banks started sending out a lot of signals they're going to do so by cutting lending and that's not what the government wanted. now a lot more pressure on banks to do it. buy capital issuance. it's going to be a difficult process. it is a manageable one. eurozone banks have been growing their international assets rapidly in recent years and they are likely to be cutting back it particularly on those assets and then i think we'll start to see

other banking sectors, the chinese banking sector, the japanese, maybe the american, south american, maybe middle east. and i think globally there will be enough liquidity around but we have to deal with a situation where the eurozone banks are clearly going to be forced into some retreat. >> thanks for that. christine? well, some of the other big stories we're following here in asia. german chancellor angela merkel met with wen jiabao today. hu vowed to strengthen ties and adopt, quote, a are more open attitude to its bilateral operations t. it came a day after wen jiabao said beijing is mulling a deeper involvement but failed to give any failed commitments. on the earnings front we're watching panasonic. the can company saying it is bracing for a gigantic $10 billion record loss for its current fiscal year. the current loss would be the second largest ever recorded by

a japanese manufacturing company. the firm said it swung to a net loss in the third quarter because of weak demand for its tvs, supply problems, and the strong yen. panasonic said results factored in a hefty write-down to smaller rival sanyo. ross? the u.s. justice department has indicted on charges it helped wealthy americans evade taxes by setting up secret offshore accounts. the news comes a week after switzerland's oldest private bank broke itself up by selling the nonu.s. part of its business. the united states is investigating ten other swiss banks including credit suisse and julius beyer. they don't consider tax evasion a crime. still to come is britain heading for recession or not? we might get a key answer with the results of services pmi after this. wñwñwñwñwñwñwñwñwñososososvycyíy

this is cnbc's "worldwide exchange." the headlines from around the globe and the u.s., it's all about jobs. expected to show another month of slow, steady, yet unspectacular hiring growth. official versus private. two different readings of the growth in china services, pmis are released. china stock surges after worries

of a hard landing dissipate. and in the eurozone the service sector shows the first sign of growth in five months indicate the slowdown is easing. here in the uk a very strong pmi number better than expected. january services pmi 56, the strongest since march last year. in december it was 54. it was to be 53.5 so that's much better than expect ed number an sterling not having a huge reaction on the bank which is unusual. anyway, business expectationses index 70.73. the highest since may. essentially means recession looks increasingly unlikely when you add in the manufacturing and construction. a pretty good number, julian. does that mean we can breathe a sigh of relief there will be no recession? >> it's perhaps a bit too early to be that confident but nonetheless as you say this is a very good number.

it has been, i think, clear for some time that this is can ha confidence in the uk has been holding up really very well particularly given how much it had fallen in mainland europe. here i think that if we are going to see some better numbers coming through out of germany, for example, and the united states continues to get some traction, we are going to see some improvements, still. >> what does this mean for bank of england? there's a big thought -- there's been a sizable thought about they would extend quantitative easing. what does this week's data do for that discussion? >> makes it a lot more difficult. i think the is services pmi is carefully watched by the mbc, perhaps one of the most important readings really and it is a kind of reading that is likely to make them want to reconsider really whether they should be going ahead with an extension. they are likely to be going ahead with an extension of asset

purchases but it's going to be suddenly an interesting debate here and, of course, as well i think if you look globally there were signs inflation isn't falling quite as quickly. commodity praisys prices such a in the energy markets here as well we are looking at some stronger momentum in the economy there are question marks about how fast central banks should be easing at this particular stage. i mean, i think the dallas fed president was making this argument recently. >> christine? >> all right, julian, we'll leave it there. let's talk about the january jobs report, of course out at 8:30 a.m. eastern time. we've been talk iing about this. most economists expecting another month of modest hiring. the dow jones forecasting calls for an increase in 125,000 and nonforeign payrolls since december.

seasonal as package tlifry companies typically let go workers hired just for the holidays but mild weather last month could lead to an uptick in construction workers. average hourly earnings are expected to rise 0.2%. let's get more talk now about the u.s. jobs numbers. the chief international economist of ing, rob, good to have you with us. a lot has been priced into the markets but what sort of number could we see that could see -- that could spark a rally in the equity markets? >> well, i think people are going to give the payrolls the benefit of the doubt today whatever happens and i think to bear in mind these january numbers are subject to annual benchmark revisions, industrial classification revisions. nobody really even knows whether the 200,000 number that we saw last month will be 200,000 or something completely different and will be focusing on other things like what's happened to the overall level. it typically the bureau of labor

statistics underestimates the jobs created in an upturn and although it's been an insipid upturn it has been an upturn and we'll probably see the level of jobs raised, all sorts of revisions very difficult to get on top of these numbers and, furthermore, people are very bad at forecasting these january numbers, overestimate them. there's all sorts of stuff to take into account. >> will it have any bearing on whether the fed takes on qe-3 or not? >> i think the hurdle for qe-3 is extremely high. we need to see a real deterioration in the growth outlook, the unemployment rate heading back up towards 10%, something like that. so where we're sitting right now is the unemployment rate could nudge up a little bit this month. this is a very noisy bit of the labor market data so i don't think even that would have too catastrophic effect on markets. the thing that's really driving markets and market sentiment at the moment is what's happening in europe and the positive

effect coming through from the constant easing like properties of the long-term refinancing operations. while they keep going, we have another batch of those coming through at the end of this month. i think it will keep sentiment fairly upbeat. >> what do you think the next figure will be on that, rob? some people are talking about a trillion and i don't know if that is good news or bad news. >> i suppose a trillion euros heading out into the eurozone economy is a good chunk of it remained out there started chasing assets would be very positive. but you could equally take the opposite view the smaller the amount, the less the banks really need so that would be positive. it's hard to know. i think i remember reading the article that talked about the trillion dollars. and in a recent survey of traders they expect 350 billion to be bid for. so i don't think anyone really knows at this point but any amount going out now i think is a positive amount as far as the asset markets are concerned. the real question, is this going to have an impact on the real economy if it's only a sort of fairly temporary stocks boost

like qe was. >> rob, the japanese are very nervous. is the boj or the financial authorities in japan very close to intervention at this point? >> well, it sounds like it. you get these fairly sort of stock phrases being used by the ministry of finance officials when they're getting close talking about speculative moves in the currency, things along that sort of nature and that's basically your indication that their finger is on the trigger. i think we're very close now. >> just going back to the fed here, i asked this of julia, do you think if the fed were to do anything they should target -- because the housing market is lowered. should they target that with mortgage asset backed purchases if they are going to do anything? >> yeah, that's certainly one of the areas where the u.s. economy has the greatest impediment for

further growth or to 0 picking up from this 2% insipid rate of growth they're stuck in now. a combination of all sorts of measures would be useful. i think one thing i've said in the past repeatedly which only very half-heartedly ever seems to get progressed is some real debt forgiveness on the housing market. in the absence debt not repayment by the housing sector. that's how they're getting the debt down by walking away from the debt damaging for the housing market because we end up with a whole bunch of sort of foreclosed properties thrown out into the market, damaging to the banks which means they don't tend to be that keen on lending any mortgages. so some proper debt. the mprb rather than foreclosing on a default property would be as good if not greater. i don't know why this isn't being done in greater amounts. >> rob, good to see you. thank you for joining us. chief international economist at ing.

ross, a mixed session in asia. pmi data we were talking about showing a slight dip but showed an expansion. however, all in all these two data points to the fact china could avoid or will avoid a hard landing. so that's pushing stocks higher 0.8%. the banks leading the way higher. the hang seng pretty much flat. this market soared 2% yesterday. a breather holding on to the key 20,000 level for the week. up 1.3%. fifth in a row. over in japan, earnings continue to be in focus. we had panasonic forecasting a loss of $10 billion for the current fiscal year. that's weighing, of course, on sentiment earnings. 0.5% lower. the kospi down. taiwan weighted index moving a little bit to the upside 0.3%. the australian market is down. new zealand pretty much flat. and the sensex up 0.9%. all in all a mixed session, a lot of caution ahead of the u.s. jobs data and await more news of that greek restructuring talk.

ross? >> is that the same statement today as yesterday? we should have an agreement by monday. he said that exactly the same time last week. just copy and pasted it and put it in again. that's three fridays in a row we've had statements out from officials saying by monday we'll have an agreement. i wouldn't hold your breath. here we are stocks firmer in europe than where we were half an hour or so ago. advancers outpace d decliners b 6-4. it's the other way around a short while ago. after being pretty flat, just slim gains up a third of a percent. undoubtedly helped a little bit by the services pmi. 56 was the number on services pmi for the uk. 53.4 is what we're expecting in december. a very good number, a stronger number, bear in mind where we were in october. xetra dax. the ftse mib is flat as well. as far as the bond markets are concerned, gilt futures did come off pmi.

g gilt at 2.096%. treasuries are steady ahead of the employment report. yielding 1.84%. the key thing is to actually btps are 5.6% is where we stand. we're down at 5.5% earlier on this morning and euro/dollar ahead of the employment report ticking slightly higher further above 131.61 is where we stand at the moment. christine? hey, ross, well, here in asia we have two chinese services pmi numbers today. one official, of course the other pray vat. they appear to contradict each other. the figures may be telling two sides of the same story. tracey can tell us why. pmi dipped to a 52.9 from 56 in december. plagued by weak real estate investments. the softening is due it to beijing's aggressive tightening measures which have crippled property growth. but the data also pointed to

improved performance in transportation and retail thanks to a pickup in demand. of course a separate private survey conducted by hsbc paint add different scenario. there was a steady expansion in service this month, even as employment dipped to a three-year low. it's very telling that china stocks finished in the green today for the week. the shanghai composite closed up half a percent, its third straight weekly rise. investors remained confident growth may not be near a hard landing. enough to have more pro-growth policies. >> it tracey chang, ross. leon panetta isn't disputing a report that he thinks may attack iran's nuclear facilities this spring. he was asked to respond to an he had corial in "the washington post" saying he believes an attack may happen in april, may or june.

they are considering military action against iran. that's one of the subjects of suggestion in moscow. the geopolitical tensions in the middle east are of plenty of interest to the guest becky has been speaking to. hi, becky. >> reporter: hi, ross. thank you very much. we have a guest now to help us what's going on in the energy markets in russia and worldwide. we are joined by the chief economist of the international energy agency. thanks for taking the time to speak to us. there's been a lot of talk here about diversification. still very much an economy based on hydro carbons. do you see evidence of that happening? >> first of all, it is true the economy is very much dependent on the oil and gas revenues. perhaps i should say too much relying on oil and gas ref gnaws and when i look at the russian government's policies i don't see any signs this would be weakened even though

diversification must happen because if oil or gas prices go down, this is a major implication for the russian economy so that is a must. >> reporter: there's still a great deal of oil and gas in this country. i know you believe there's a lot of inefficiency in domestic use of oil and gas. what impact is that having on the economy? >> for russia, as we said, the oil and gas revenues are important. the russian government every year puts about $300 billion in the pocket which is very good. but the pocket as a has a hole, a small hole. they use energy in a very inefficient manner. it is lower than mid african countries. so if srussia would solve this problem, the hole would be closed and russia would save an additional $70 billion in energy

which can be easily exported to the other countries. >> reporter: let's talk about the dynamics of the international gas market. >> i think it is a revolution started in the united states and now in australia and china, has a double effect for russia. on the one hand it is good because gas is becoming more and more important and russia being the largest exporter and producer is the good news. but on the other hand if shale gas in the united states remains so cheap and so many volumes are coming into the market, may very well be an exporter in the future and at the same time if china potential new major client for russian gas may also increase its shale gas production and, therefore, its need may be less.

russians have to read the markets very, very carefully. >> reporter: oil prices are still historically high. what's your outlook for oil prices and how do you see the global chick recovery feeding into this? >> i think the last time we talked in this very forum i said that oil prices are in a danger zone for economic recovery and maintain this again and especially for europe. the part of the global economic chain is a major problem. in 2008 the very awful year, the financial crisis, europe had the oil import $350 billion and in 2011 europe's oil import will n increase to $400 billion which is a major problem for the trade finance for europe and also it has the implication to slow down the chinese economic growth which was crucial for us to take us from the financial crisis.

>> reporter: thanks for taking the time to speak to us. i know you've been busy at this event. fitah birol. christine, back to you. >> beccy, thank you for that. great stuff. to tokyo stocks snapping a three-day winning streak. investors say it was a struggle to keep momentum up as the yen hovered near record highs and corporate results continued to disappoint. the highlights live from tokyo. >> reporter: hi, christine. panasonic has a net loss for the year end iing march. it's its biggest deficit ever. they said it swung to a net loss in the third quarter because of weak demand for its tvs, supply problems and the yen. panasonic clarified that its

results factored in a hefty write-down related to purchase of sanyo. but panasonic says it can swing back to the black at least for its tv operations by fiscal 2013. panasonic faces tough competition from the likes of samsung electronics. in other news, the nikkei report says a three-star japanese restaurant is planning to open its first overseas branch in london this june. it is a century old upscale restaurant that will team up with a middle eastern front to establish a new firm and is aiming to open more restaurants in the uk and asia. and that's all from the nikkei business report. back to you. >> makiko utsuda, thank you. still more to come on the "worldwide exchange." into super bowl frenzy this weekend. madonna will be the star of the halftime show. as promised there will be no repeat of that performance by janet jackson. how can you guarantee

against a wardrobe malfunction given your history, and is that something you're thinking about? >> oh, yes, great attention to detail has been paid to my wardrobe 0. there will be no wardrobe malfunction. promise.

welcome back. hutchison will buy orange, austria, and a private equity fund for $1.7 billion. hutchison will buy over 100% from france telecom and what would make the third biggest mobile phone operator. hutchison belongs to hong kong tycoon whose previous purchases include britain's water group and edf in france. over 11 people in queens land have been trapped by flooding in the region. officials say thousands have been evacuated. flooding has impacted coal mining and agriculture. they are still feeling the impact of last year's floods. ross? >> and a siberian cold front has led to a death toll of 163

record lows recorded in some countries with temperatures as low as minus 32 degrees celsius in poland. 29 people have died since the deep freeze set in last week. forecasters are saying it's the coldest in 27 years. 41 of the 101 regions were on alert for snow or deep cold. the snap has pushed up gascon summation, too. now at a ten-month high. being 18% above the seasonal norm. so far what had been a pretty mild winter. despite continuing concerns about the world economy, a profit climbed 22% to 5.26 billion euros for lvmh boosted by rapid growth in asia and at the company's louie witt ton

brand. they hiked its dividend and said it was can haonfident for 2012. and that's maybe a good point to finish with, julian. the global growth aspect. luxury goods tapped into global growth tapped into the sector of, i suppose, a consumer that has been unaffected. how is global growth going to hold up this year, and i'm wondering about the commodity prices haven't come down as much as we thought. i'm wondering what it's like. >> commodities, the main risk is oil prices rise steeply. if you do get a 50% rise in oil prices here then that would probably spell the global economy. i think the global economy is making some headway. we're in a situation where we're no longer having to be so concerned about down side. the ecb's ltros are a

masterstroke. >> it's remarkable to see btps in italy hitting 5.5%. >> if you look at spanish two-year yields, they've fallen to below 3% here, well below 3%, in fact. they're half of where they were back in november. if you look at eurozone bank senior debt yield that has come down very sharply. so it's been a brilliant move by the ecb and we can expect we'd be more the 350 billion mark. so i think there are some reasons to be relatively optimistic as well the united states economy is certainly looking better here. still a bit of concern i would have about the chinese situation, probably it's going to be okay but you do need to watch the investment numbers very, very carefully there. japan, it's interesting it came out a few days ago that mitty is talking about industrial production rising sharply in january and february and that means, in turn, japanese ip should have a strong recovery of

4% or 5% in the first quarter. >> the annual comparisons will look fantastic, aren't they because of the disruption. >> this is a quarter on quarter comparison. so despite the strong yen, i think the sector level we will see some improvement. i would expect to see a little bit more positive news out of the u.s. data today although the u.s. payroll report will be cloudy because there was some cold weather as well in the united states and that could affect the workers. >> they get laid off. you're cautiously optimistic. >> cautiously optimistic, yes. that's the title of the note i'm going to write today. >> you heard it here first. good to see you today. thank you for joining us, julian callow at barclays capital. till one hour of programming to go. jackie joins us from the u.s. apart from the employment report, i don't want to diminish the importance of the employment report, jackie, but there's

something much bigger and better coming up on sunday. >> absolutely. all eyes are focused on the super bowl and whether the giants will be able to pull out a win against the patriots and i have to tell you even though we're new york-based i am rooting for tom brady because i think he looks better in his tight pants than eli manning does. but, meantime, get this, because you are going to find this interesting, did you know that on super bowl sunday in terms of food consumption, it gets really outrageous here in the united states, 1.25 billion chicken wings consumed, and pizzas in the millions. so we can clearly see if i'm eating all that food why mr. brady has chosen giselle over me. >> that's an enormous amount of food. and it's probably the reason why after eating that you need to do what the first lady has been doing which is this --

>> you guys count. >> one, two, three, four, five, six, seven, eight, nine, ten, 11, 12 -- >> i don't know how long they go for. are they going for 100? we could be here for a while. i think ellen gives up actually. so there you go. i know that's what you do every morning, christine. >> yeah. a lot of that. can you see? can you see? >> little amounts of fat on chr christine. >> ross, are you going to be eating the chicken wings and doing the push-ups to have sympathy pains for me? >> do 0 you do the push-ups to eat the chicken wings or do you do the push-ups because you've eaten the chicken wings?

it's a conundrum. which comes first? you could have had the new york giants 80-1. >> i could have. what i do is eat the chicken wings and then do the push-ups so that we can equalize it a little bit but it doesn't always do the trick. still, ross, christine, coming up on the show, there's a lot more, of course, on the big game to discuss. we're also going to find out how a super bowl ad can make or break a company. stay tuned to hear from a marketing veteran who explains why. and it's all about jobs, jobs, jobs, but we'll talk to a guest who says that the numbers can be deceptive. are you anxious to protect your family with life insurance ... but afraid you can't afford it? well, look how much insurance many people can get through selectquote for less than a dollar a day. selectquote found, rich, 37, a $500,000 policy for under $18 a month. even though dave, 43, takes meds to control his

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good morning and welcome to the show. the headlines from around the globe this morning, in the u.s. it's all about jobs. today's employment data is expected to show another month of slow, steady, yet unspectacular hiring growth. the eurozone services sector shows the first sign of dprogro in five months. a ten-month high raising hopes the economy will avoid recession. official versus private, two different readings of the growth in china services. pmi released. worries of a hard landing dissipate. plus, the new government in

spain cleans house with the economics minister asking banks to raise 50 billion euros in extra capital. you're watching "worldwide exchange" with christine tan, ross westgate. i'm jackie deangelis. great to have you with us this morning. let's take a look at the u.s. futures and see how we're set to open on wall street this morning. although it is early, it looks like an up day for the markets. the dow getting set to be higher by nearly 28 points. the nasdaq higher by nearly six and the s&p 500 looking to be higher by three. this was after an uneventful sort of choppy trading session yesterday. of course it's jobs friday so everyone will be focused on that report as it comes out this morning. the january jobs report is out 8:30 a.m. so make sure you're watching for that. most economists expecting another month of modest hiring. now the dow jones forecast calls for an increase of 125,000 in nonforeign payrolls versus 200,000 in december.

seasonal factors could impact those numbers as they let go the workers hired just before the holidays. the mild weather also last month could lead to an uptick. unemployment is holding steady and average hourly earnings are expected to rise about 0.2%. joining us now to discuss a little bit more is j.j. burns, president of j.j. burns and company. let's talk about these numbers we're expecting this morning. first of all, just give me your general take in terms of the 125,000 we're expecting. >> i don't think it matters too much. we're in a slow growth economy. last month came in expecting 150, i believe. came in around 200. the market rallies. it's wonderful. and then it's back to reality. if we had such good job creation then where are consumers spending? it takes a consumer 75% off price tag at our major department stores to get out to go into their personal savings

and then to spend some money because consumers aren't stupid. they really understand that, hey, if there's a really good deal, i'm going to get it and i'm willing to spend more manny or take more out of the bank to do it. >> that leads me to my next question. what about the people who stopped looking for jobs altogeth altogether? these numbers are skewed in some sense because we're not looking at the entire landscape. where do you think the unemployment rate would be? >> i think when you look at the under employment rate it's up beyond the 20% level when you factor in those people. i would probably even look at what college students are not being employed with. so the average college student i think about a quarter of them are unemployed. so i think the rate is up around 20%, 22% when you factor in unemployed that are not in the payroll or under employed. that's a daunting figure. and, you know, another thing that we tend to look at as

economists or people in portfolio management is the fact look at each state. look at nevada, one of the worst unemployed states in the union, 13%, 14% unemployment, even in parts of new york, new jersey, way upstate. there's business that is are completely defunct, out of business. furthermore, and this confirms for me last night, i was with a friend of mine, he's an engineer. he has not had a wage increase since 2009. so we are in a jobs recovery, a wageless jobs recovery, no raises the last three or four years. where are consumers going to get the money to spend a little bit more to get back to prerecessionary levels? >> it's a great question. >> even if they did have extra money, aren't they going to say, aren't we in an environment now where most realize the future is a lot more uncertain than it was and the temptation is spare cash, save it? >> yes. actually you are seeing that. we saw the consumer in 2011 take

money out in personal savings and then from there they spent it. but in december we actually saw even with the 200,000 jobs print, we saw personal savings go up to the end of december. so isn't that interesting that personal savings is starting to go up with people starting to be employed which is good. the problem is that the jobs being replaced are not the jobs that are lost. if you have that engineer laid off who was making $80,000 ordersed 90,000, you say he's going to make a job $25,000? that's not going to help. >> even the people saving, they're not getting anything in the bank for the money they're saving. >> we just have some data out of europe i want to recap. retail sales are contracted minus 0.4% on the month. forecast to rise. it's a worse number than we

thought. down 1.6% on the year. down 1.3%. it's no doubt outside of germany the contraction that we've seen elsewhere having a bigger than expected impact on the consumer. this comes as the spanish cabinet is set to approve new rules for the banks in a bid to revive the economy. raise another 50 billion euros in capital to protect against losses from bad loans. stephane is in madrid. stephane, where are they going to get the money from? >> reporter: probably the banks, the large one, will use the international operation which generates some cash to increase the level of provisions. it will be the case for the two largest spanish banks and it's what they've been doing so far. since 2008 the spanish banks in total have taken some massive provisions. 66 billion euros. they have to do another significant one, 50 billion euros. it's a large amount of money in a short period of time because the banks will have to comply

with this new reform by the end of the year. an emerging process will have a bit more time, probably two years. it's still a lot of money in a short period of time. in case the banks wouldn't be able to raise enough cash and then they could return the spanish restructuring fund for the banking sector which would inject some liquidity. for the spanish government it's the cheaper option, the most expensive one is the creation of a bad bank. this one won't cost anything in terms of public moneys. the spanish finance minister said yesterday evening, luis, says it will restore confidence into the spanish banking sector. >> translator: we believe this is going to make it easier for the spanish financial institutions to access the resources of the markets. which will make it easier to get credit in a much better way than we do so far. currently the credit at the bank

is contracting between 5% and 10% depending on the banks. >> reporter: of course plenty of reaction in the newspapers this morning. in spain at last the government is doing something that is the most common comments we can see because of the november elections. since that day we were expecting some reforms so this week is the reform of the financial sector in spain and next week the government is due to announce labor market in spain to make it more flexible. ross? >> stephane, thanks for that. spanish unemployment, though, is at a new high. youth unemployment 50% in spain. i'm wondering now since november we were worried about a collapse of the european financial system. we got the l it tro money from the ecb, more from this month. i think the u.s. and international investors are now relaxed, the worst case scenario of a euro breakup isn't going to

happen and if that's not going to happen we can just deal with a recession and get on with other things. >> it's interesting because you saw in the eurozone that p/e multiples have come back to some extent. and as interesting as that is, we're discounting more of a mild recession when you look at eurozone prices but globally we continue to more kick the can down the road and that's not going to work longer term. certainly in the united states we've got more of the lame duck session in congress coming up which investors have no idea what they're going to be in store for in december of 2012. and that is the end of the bush tax cuts and if congress does nothing because we are in a do-nothing congress, well, i believe that a potential arm g m armageddon.

looking at the eurozone, there's mandatory spending they continue to do. there have to be acts, a congressional committee getting together and lawmakers getting together saying, no, we are not going to give these entitlements out. that's going to take a lot more work so i believe that the slow growth environment is going to persist indefinitely. >> j.j., this is christine here in asia. all the news coming from the eurozone having any sort of impact in the way you strategize and put your money? >> it's a great question. i believe that there's probably more opportunity when you look outside the united states. looking out in a year or two years or three years or four years but what the average investors who listens to the show i think really has to pick up is the fact that you can make a whole bunch of money just taking small chunks of money each and every month and back to the fundamentals. that kind of behavior with volatility on your side reads

well for good, solid investment fundamentals and that's where the longer term aspect will be capitalized with the individual investor. is looking at volatility and making it your friend because if you are in global equities, if you are investing in stocks, you must consider having at least a three to five-year commitment and i'm going to actually go out ten years so baby boomers listening, you are still going to be around. if you're planning on being alive and around, then you're going to need some level of stocks in your portfolio. global investors are going to work, i believe. >> that's a good point being flexible, rolling with the environment and fundamentals. that's what the experts always, always say, focus on those fundamentals and you can't go wrong. coming up, of coarse, $3.5 million for 30 seconds of airtime. some of the world's biggest companies think it's worth every cent to advertise during the super you bowl. so what are viewers going to see this weekend? we'll have a sneak preview. >> i'm not sure what it is.

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welcome back. you're watching "worldwide exchange." it's time for your global markets report. let's start here in the united states. take a look at the futures. how we're setting up for trade on wall street today. it does look like a higher open before we get those jobs numbers out. if the markets were to open now the dow higher by 28.5. the nasdaq higher by 6 and change and the s&p 500 by three points. this after a mixed session yesterday. a little bit lackluster, ross. so going to be really interesting to see how the numbers, the job numbers, affect the market this morning. >> modestly higher the last hour or so after a fairly mixed close last night. some slim gains, some slim losses. around about 6-3 on the dow jones stoxx 600. pmi just over 40 minutes ago for the uk came in at 56. we were looking for 53.4. so much stronger than expected. and probably in conjunction with

other data last week means we can rest a little bit easier, the uk maybe won't be going into an official recession after contraction in the fourth quarter of last year. xetra dax up a third of a percent. the ftse mib up about a quarter. the key thing is what's going on here with italian debt yield. yielding below 5.6%. down to 5.5% during the session. so the pressure continues to come off peripheral debt and that has been the sign where the crunch has been so the h itltro money. after that services pmi data, the yield and gilt puts in a knife edge to whether the bank of england extends its quantitative easing at next week's bank of england meeting. remember, the qe runs out in february. ten-year treasuries 1.82%. yund yields higher. euro/dollar drifting higher, above 1.31 up towards 1.32.

christine, what kind of day have you had? well, it was a mixed session here. a lot of caution ahead of the jobs report and, of course, greece restructuring debt talks seems to be weighing on 0 sentiment across the region as well. shanghai and china financials it continue to lead the way higher. pmi data coming in lower than expected. we also had a private survey showing expansion. a mixed picture but all pointing to the fact that china will avoid a hard landing. this particular market pushing higher 0.8%. the hang seng taking a breather after yesterday's surge of 2% up marginally 17 points. over in japan the nikkei 225 down. earnings continue to weigh on sentiment, of course. a lot of focus on panasonic after the company reported a loss of $10 billion or expecting a loss of $10 billion with the current fiscal year. that would be the second biggest among japanese manufacturing companies. the kospi 0.6%. foreign investors out of this particular market taking a

little bit of profit out of this market. taiwan index marginally higher. awaiting a jobs report, a lot of caution there. new zealand pretty much flat to the down side. so very mixed picture here in asia. that's it for me. i'll be back tomorrow -- i'll be back on monday, that is, with news making headlines in asia. have a great weekend. thanks for that, christine. have a good weekend. some news out concerning ubs and the uk the financial services authority regulators started a formal enforcement probe against swiss bank ubs over last year's $2 billion trading loss which happened in the london arm in the swiss financial supermarket -- have announced the launch of an independent investigation.

of course the trader at the center of that. ubs stocks up 2% at the moment. ubs saying they will continue to fully cooperate with the regulators in that investigation. also, talk iing about regulator the u.s. justice department has indicted swiss bank on charges it helped wealthy americans to evade taxes by setting up secret offshore accounts. it comes a week after wegelin broke itself up by selling the non-u.s. part of the business. credit suisse and julius bayer, they don't consider tax evasion a crime, jackie. treasury secretary timothy geithner says the key parts of u.s. financial reforms will be coming this year. these include releasing detailed plans on overhauling the housing finance market and unwinding lending giants fannie mae and freddie mac. regulators will identify, name

the first nonbank firms this year that could be systemic risks subjecting them to tighter oversight. geithner is also warning that other countries, they shouldn't poach financial business while the u.s. is implementing tighter reforms. and up next, just two days until the super bowl and the anticipation is growing not just for the game itself but for all the big ads that are going to air before, during, and after the broadcast. does the super commercial always turn into a super payoff for advertisers? we'll ask a top expert right after the break.

and that's one of the two commercials that volkswagen is going to be running during this sunday's super bowl game putting the new york giants against the new england patriots in a rematch from 2008. now the super bowl is the biggest day of the year for advertising. a 30-second spot costs an

estimated $4 million. are companies going to be getting a real bang for their buck? of course the question is what are those dogs barking about? we have david johnson co-found er and ceo of strategic vision, a pr and advertising firm. let's talk about some of the ads in terms of getting a bang for your buck. $ million is a lot for 30 seconds. volkswagen is releasing commercials ahead of the super bowl. how does that impact things? >> well, it really -- i mean, people know with the social media and everything are demanding a sthneak peek so we' seeing it on youtube, on facebook, other social media sites and everything, too. the whole purpose for a company like volkswagen or pepsi or coca-cola to be on the super bowl is to be seen and it reinforces their branding n. this day and age you have to have the social media component and that demands the ads have to be out earlier but it also kills the shelf life of this super bowl. in fact, what we're hearing now

from some of the advertisers is, well, this is a sneak peek and we might change up the ad from facebook and youtube. >> and, david, is there any way to gauge the impact these ads have, whether they're being prereleased on social media or coming out during the super bowl, any way to see a direct c conversion into these ads and then sales for companies? >> well, what the advertisers are trying to do right now is convert them into followers on facebook, on twitter, and that's where they're looking for the bang for their buck. but the one thing this year, too, is there's more celebrities in the ads than in previous years and what's interesting they're doing this to capture the celebrities, followers on the social media sites. but what's also interesting is if you look at the conversion rate of sales and everything, advertisements with celebrities are 9% less effective than advertisements on the super bowl with noncelebrities and if you

really want a winning ad it's to have an animal in your ad because what we're seeing is that people respond 21% more to the super bowl ad that has an animal in it than one without it. >> that last one will do well. it's ross here in london. it's very well having ads people love, that people remember. at the end of the day it's about people going from an ad and buying dwoodz, isn't it, purchase intent. has anyone actually cracked that side? i can make a memorable ad. it may not make me want to buy the product. >> oh, exactly. reebok had one of the most memorable ads in the past but people forgot who the ad was for and reebok did not see the return for the investment. go daddy has probably been the most successful as far as seeing a return on the investment, but a lot of that advertisers do it to reinforce their brand name and they're not expecting the sales from it. if you're a smaller, newer company, the super bowl probably isn't the place you want to be

seen. it really takes up most of your marketing budget and you may not see the return in investment. a super bowl ad best serves in reinforcing branding rather than being your entire marketing budget. >> david, hi, i'm wondering what message the advertising campaigns you've seen say about what type of demographics the advertisers are trying to get to. >> oh, did he haefinitely. though we know the super bowl is the most watched event in america, what we know, also, is the demographics are to men. when we see the ads on television, that's who they're aiming for. be it the honda ad, the acura ad, they're skewering these to that demographic. you know these males are going to respond to that and that's who they're trying to target in

these ads. >> thank you so much for that. for those of you who weren't exactly sure what the dogs were barking about. they're telling me it was the imperial march from "star wars." coming up on the show, a lot more great programming to come. but the question is where the jobs are. our 0 next guest says that silicon valley may be the best place to send your resume but not the only sector hot for hiring. we'll drill down today's jobs report next.

good morning and welcome to the show this morning. the headlines today in the united states it's all about jobs. today's employment data is ex inspected to show another month of slow, steady, yet unspectacular hiring growth. here in europe the eurozone services sector shows the first sign of growth in five months, an indication the slowdown is easing. in britain a ten-month high raising hopes the economy will avoid recession. and official versus private, two different readings of the growth pmi released. china stock surges as worries over a hard landing dissipate.

a very good morning to you. if you've just woken up in the united states and joining cnbc ahead of the employment report la later we have slim gains on the board here in europe, advancers outpace decliners on the dow jones stoxx 600. after a mixed session at the close yesterday we were seeing the ftse up. this follows a better than expected services pmi number earlier on this morning. we came in at 56. expectations for 53.4. if that continues the uk will avoid a recession for the fourth quarter. it may also put the bank of england on whether it has an extension to qe next week into further doubt. xetra dax up a third of a percent. the ftse mib up about a third as well. what's key here is we've seen yields on italian debt fall down to nearly 5.5% during the session today but, of course,

the employment report, jackie, what are the futures like at the moment? >> yeah, when we're looking at the futures, some of your slip gains are definitely adding to the momentum here and it will be a higher open, ross, if the markets were to open now. the dow would be higher by 34 1/2. the s&p 500 higher by nearly four points after a lackluster mix and a choppy session yesterday. >> just a quick recap of what we're expecting out today, the dow jones forecast of payrolls is up 125,000. i've seen a forecast that is a lot higher than that and there may be an expectation in the market we get a higher number than that. december up 200,000. we are expecting the unemployment rate to stay steady at 8.5%. jackie? >> yeah, and joining us now, ross, to talk more about that is the ceo of dice holdings and still with us our guest host swrchlt j. burns. i want to start with you in terms of the numbers we're expecting to see today. where do you think we're going to see the most hiring come from? is it, in fact, from technology? >> i think it technology is one of the hottest areas but if you

want to look more broadly it's professional and business services, maybe a little bit more in health care. and we'll probably still see weakness in construction and some of the manufacturing areas. >> yeah, and we were talking about this during the break. j.j., you brought up a fantastic point. are we seeing people move from sector to sector, so you are a ceo of a recruiting company, are seeing it happen, talking to the folks unemployed. are they staying within the same sectors and going on to work in fields that they're comfortable with or are a lot of people changing and switching around into new professions? >> it's really interesting. a lot of people are considering jobs more broadly but, in fact, really the hiring is going -- hiring is really happening for people who are staying in the same sector. te technology in particular is a very hot sector today. a lot of job growth. a lot of intense competition with people with skills in silicon valley. >> you also say there's a new hot, emerging sector in oil and gas. what are you seeing there?

>> oil and gas is one of the strongest job growth sectors in the u.s. and actually outside the u.s. it was the best area for job growth for the last decade. >> what challenges do you see with people who are maintaining their same occupation going forward and getting a new job? >> well, you know, it really depends upon whether you're in the skilled part of the market or the less skilled part of the market. if you're in the college educated part of the market, your prospects are very good and there's a lot of opportunity out there. unfortunately in some of the lesser skilled areas especially in the u.s. you'll have a bit more of a challenge. that's why continuing education is very important especially for that group. >> what would you advise people who have been unemployed for more than a year, who want to get retrained or they just want to get a job, to get employed, how would you advise them to say, well, there's technology,

there's other areas, there's oil and gas, what could they do? >> well, i think probably the most important thing to do is to stay active, to show you're still in the game and that you're keeping current with your skills so even doing nonprofit volunteer work is very, very important in terms of building your resume, building your capability for new employers. and then if you're in an area that is more depressed like construction or real estate is a good example, you want to get that additional training. so community colleges and courses, they do a wonderful job in retraining people. >> that's great advice. >> scott, can i jump in? it's ross here in london. two questions i want to ask you. first of all, there have been some forecasts that we'll see jobs offshore start to come back to the united states as wages rise in china and india. i want to know whether you think that's likely to happen. and the second point is whether

the u.s. will create more jobs in energy bearing in mind there's a big shale gas development going on and they're trying to sort of reduce reliance on foreign energy. >> well, it's very interesting. many companies are now bringing positions back from offshore to the united states. we've seen it in the technology world and in the service world and it's really driven by two things. one is a little bit better customer service and better operations support by having your people closer to you. and then the second is the cost differential is not as large as it used to be. when you get to oil and gas, it's a very hot sector. we believe we're going to see tremendous job growth in the united states for oil and gas. the interesting fact here is there are more rigs operating in the united states today than at anytime since the late '80s and that shows there's a lot of exploration going on 0, a lot of

opportunity and the great thing about these jobs, you'll read more detail about this. the great thing is they not only create a single job but there's a spillover effect into the local communities in which the exploration has happened. >> are we over the gulf -- what long-term impact is the gulf oil spill last year had on the job creation in that sector? i'm not quite sure right now whether there is offshore drilling or not going on and whether they're going to get around those bands? what's happening? >> the number of rigs operating in the gulf today is actually higher than it was before the incident but there's less deep water drilling than in the past. we see very active drilling today and i think as we move on and get further away from that crisis we'll see more rigs operating. >> okay.

good to see you. thanks very much indeed for joining us. scott melland. ubs in focus. the swiss regulators saying they're beginning a formal enforcement against ubs over the trading losses from last year. ubs says they're going to cooperate as fully as possible and the stock, nevertheless, actually just hit a session high. jackie? >> yeah, meantime vladimir putin says that russia's investment climate is disgraceful. after the break we'll go live to moscow to discuss the opportunities in the country. there's nothing worse than going to the post office and waiting in line. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com, you can print real u.s. postage for all your letters and packages. it gives you the exact amount of postage you need the instant you need it. can you print only stamps? no. first class. priority mail. certified. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial

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good morning and welcome back. you're watching "worldwide exchange." let's take a look at our top headlines. u.s. defense secretary leon panetta isn't disputing a report he thinks israel may attack iran's nuclear facilities sometime this spring. he was asked by reporters on thursday to respond to an editorial in "the washington post" saying he believes an attack will likely happen in april, may or june. he wouldn't comment but did note that israel has said publicly it's interesting military action against iran. the u.s. senate has passed the stop trading on congressional knowledge that would ban members of congress and their staffers from insider trading. it requires lawmakers to

disclose their stock transactions within 30 days. the bill impose 0s the same rules on more than 300,000 u.s. government workers. the house is considering a similar measure and could vote on it some time this month. and also china's nonmanufacturing pmi slipped three points hurt by a lethargic property sector. separate data from hsbc paint add different picture. according to that survey they expanded in january at a steady pace. in india the country's services sector expanded its fastest clip in six months in january as new businesses swelled. ross? eurozone pmi out today. the first sign of growth in five months for the final reading of pmi regarding the region was in expansion territory. follows a similar pattern earlier in the week. as i said in the uk that came in much better than expected,

raised hopes britain will avoid a recession. 5 56.0, a big improvement from the 54. the highest reading since march of last year. panasonic says it's bracing for a gigantic $10 billion record loss for the current fiscal year. the forecast loss would be the second biggest ever recorded by j japanese manufacturing company. the electronics firm said it swung to a net loss in the third quarter because of weak demand for tv supply problems and the strong yen. panasonic said it factored in a very big write-down related to its april purchase of smaller rival sanyo. that was because of the goodwill write-down. now in just over one month russia heads to the polls to vote for the next president. vladimir putin will be seeking a third term in office but it won't come to him that easily due to a surge of recent uprisings and approval ratings. yesterday pugh at this point addressed the forum in moscow, an annual event. he said the russian business

climate is disgraceful and the company needs to strive to move ahead. we were hoping to hear what mr. putin had to say but we haven't got that. we have got beccy who has been doing a lot of talking by the sounds of things. hopefully we can hear you. and what was the reaction to putin's speech? >> reporter: everyone was picking up on these points putin made about trying to make the investment climate more favorable to foreign investors in particular. many people we've spoken to here said they buy into that and do think things will improve. of course russian investors already here at this event. the people he has to win over are those that aren't already invested in the russian market. there are investment opportunities to be had. growth is at a fairly good clip. it looks like that growth level

could slow down so lots of talk about didversification. we spoke to the chief economist at the iaea earlier who said that diversification just isn't happening yet. this is a hydro carbon economy and that causes risk for economic growth in the future as we see. lots of people talking about the investment opportunities across the spectrum. bear in mind, too, the state here plays a huge part in enterprise, too. we have lots of stakeholders for some of the biggest russian companies, an extra layer of risk into all of this as well. we spoke to the governor of the central bank here. and that's what he had to say about the potential for growth and the risk. >> domestic risk and reforms we mentioned before. and, i mean, the global recession, if any, in the euro

in the united states. >> reporter: the meantime, the governments are doing a lot of talking about the prospects for the country and the prospects for inward investment but capital outflows last year of $85 billion, part ly from that fiscal. back to you, jackie. >> thank you so much nor that, beccy, great to see you live from moscow. next on the show, the trading day on wall street. aside from the much anticipated jobs report, what else should investors be focusing on? we have lots more after the break.

ahead of the u.s. open, european stocks have been inching higher today after a pretty flat close yesterday, nearly half a percent for the ftse and the cac, the ftse mib up 4%. the key thing is that bond yields have continued to fall. the ten-year italian government deal 5.58%. below 5.6% today. spanish government bond yields below 5%. to the ltro looking ahead to another one the end of this month, certainly had a beneficial impact. how are the futures looking, jackie? >> absolutely, ross. taking a look at the futures this morning seeing we're poise ed for a higher open on wall street. at the moment if the markets were to open the dow would be higher nearly 38 points, and the s&p 500 higher by 3.7 and that's before the long awaited friday

jobs report. interesting to see how those numbers come in. to talk about those numbers we've got todd horowicz, chief strategist, the trading group and of course j.j. burns is still with us. todd, let's start with the employment number today, looking for an increase in 125,000 jobs, 8.5% rate to stay unchanged. do you agree with those figures? anything you are looking for today that may change your view? >> first of all, good morning, jackie. thank you for having me. i think the numbers will be better than expected. we're pricing in a better number. so i think the numbers are going to be actually better. the unemployment rate itself, the headline number i think is really meaningless on its own because it's a number that you look at it in truth it's 15% or 16%. the increase in jobs, i look for a bigger increase, for a more bullish number. the market is reacting well

looking for better numbers. i think we will get one today. >> you are absolutely right in terms of that 8.5% rate. the traders certainly do look at that number. but i also want to get your take on other data we're expecting today. ism services and factory orders as well. anything to watch for there? >> i think the markets are indicating to us they're expecting good news. we're getting to a point where market expectation, can the numbers actually meet it? and i think we're rising to a point in the overall markets we're going to have trouble maintaining the rate of change, the rate that is going up right now with the news. so i think the numbers will be better than expected. i think the market is built in better than expected numbers and i think that's where the rubber is going to kind of meet the road here. we're getting fairly topee against old resistance off last april's highs. i think up there we should create probably a little bit of

a slight pullback in the market. >> j.j. burns in new york. whether we come in, does it ultimately matter to you in the long run where jobs are going because we clearly need job creation of around 400,000 to 500,000 a month to even get back to where we were prerecession. what's your take on that? >> for me as a trader the number is just the number that comes out and i get to react and trade off of it. obviously i would love to see -- get jobs back. i would love to see growth back in this country. i would love to see them get the jobs back and, of course, unfortunately there's that group of unemployable people that are not educated enough to do the new job and they came off the old job and we haven't quite created the war effect here of which we could put those people back to work and do it. we would like to see the growth.

for me as a trader, the number will be out and ten minutes after it's out i'll be looking for a spot to trade and invest and make my decision on what's happening now. >> we were talking a lot about the geopolitical tensions we're seeing globally as well. we're still focusing on the debt crisis in europe. jim cramer was out with a tweet. he says iran/israel, one more reason to buy gold. do you agree? >> no, i don't agree. i think that gold is just another commodity that right no is going to its upper level. gold at $1,800 is a sale. >> okay. and who are you picking for the super bowl? >> i'm picking the new england patriots. >> all right, fair enough. we're on the same team. we are on the same side of the trade there. but meantime speak iing of the super bowl, j.j., you were just telling me about your highlight for the weekend, your chili recipe. >> apple smoked bacon but, more importantly, with ross telling me about the italian bonds, i've

decided just here right now cutting edge news i'm going to put elbow macaroni inside my chili. >> that sounds like a plan. >> i don't know what elbow macaroni is. >> they're an elbow macaroni pasta, ross. that's why you have to get out of london and come to new york. >> i was in d.c. once. this is extraordinary the amount of food that's going to be -- we have some snacks earlier, didn't we, jackie. >> yeah. absolutely outrageous. >> 11 billion on super bowl spending. what's going on food? >> in terms of food, ross, and i will be contributing to this personally, 1.25 billion chicken wings on sunday, 70 million pounds of avocados and pizzas in the millions, literally. it's just outrageous and that's

going to mean a lot of exercising and aspirin for people on mondays. >> go giants. go giants. >> are you going to be following the first lady, after super bowl sunday, is most of america going to be following the first lady and doing what she did with ellen? look at this. that's quite impressive. i don't know how many they did in the end but that's what everybody needs to be doing on monday. don't do it on sunday because you'll have a heart attack. >> very impressive indeed. we will all be doing our push-ups on monday to make up for the eating. thank you so much for joining us on the program. that wraps it up for "worldwide exchange" on this friday morning. i'm jackie deangelis in the united states. >> i'm ross westgate here in europe. up next, of course, "squawk box." the countdown to the release of the jobs data coming up on that. whatever happens we hope you have a profitable day and if you're watching a very enjoyable super bowl sunday. just don't overdo it. ♪

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good morning. there may be a big football game this weekend, but the markets super bowl is today. the january jobs report. it is friday, february 3rd, 2012. and "squawk box" kicks off right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the economists polled by dow jones say that about 1225,000 nonforeign payrolls were likely added last month. they call for 150,000 new jobs