>> the government, policymakers do understand the need to reform the system including the financial system. >> okay. >> but at the same time, they do understand the need to maintain the high growth, 7.5% or something like that. >> well, let's move this along the panel. you can be brief. you don't have to -- your greatest threat for 2014, but feel free to pick up something else if you choose to. >> europe and china certainly

face a full set of challenges. i worry about complacency, governments that have never successfully forecast a recession a year in advance, that missed the 2007 financial crisis, that missed the 1987 stock market crash, t missed the latin american debt crisis and missed much more. i worry about how well macro prudential can really work on, though it's an attempt worth making. and i think much greater emphasis needs to be placed on making a system that is safe for ignorance can and court reportereporter error. and that means emphasis on capital markets, emphasis on liquidity, emphasis on strengthening the robustness of the system. the last time we had a great emphasis on macro prudential, it was spain's countercyclical

capital requirements that we were going to protect against the spanish real estate bubble. that didn't work so well. >> mr. tom bainny, briefly. >> yeah. i think one issue that hasn't been discussed so much lately is the fact that this exit is unsynchronized this time around. you see more advancement in the area. in the u.s. and in the uk. but then when you look at japan and europe, you don't see synchronicity from one perspective. we don't have a vacuum cleaner in terms of resources being attracted to the advanced world. i mean, you have areas still in the unconventional mode. but on the other hand, you might have more volatility in the exchange rate thinks those moves don't seem to be synchronized going forward. >> obviously, for us, europe will be key. but that was already mentioned. another key financial markets, suddenly we have a loss of

confidence again, with big flows in and out of safe havens, that obviously will put us in a very difficult situation. it's been a great pleasure to have you all with us here for this live cnbc conversation. i hope you've enjoyed it. and can we show our appreciation for our panelists. >> you've been listening to a fascinating policy chat on monetary policy on. george osborne making out that it's great that we're having this conversation about when we cut away some of the support mechanisms that low interest rates has been in the united kingdom. it's a sign of success, not failure in forward guidance in the bank of england, as well. might be pushing it a bit too far. mr. kuroda saying consumption will be robust and we will see decent in 2014. larry sumners made an

interesting observation. this has been nowhere near on the consequences from the period that has been used historic only to compare with, as well. mr. tom beaney said it's a net positive that we see tapering, as well. the brazilians have been critical about quantitative easing and tapering. just reiterate the point everyone needs their own path because he has been previously critical. what did you think, julia? >> i think that was one of the brilliant points. he borrowed one of our and shot thomas jordan right down with the point that 1:20 is the ultimate form of guidance and controlling where the currency is. >> they always set an exchange rate limit, of course. the speculators know historically they can challenge you in on that. let's listen in to a few more of the highlights for the future of

monetary debate. >> you set up this debate as a debate about exit from exceptionally supportive monetary policy. that in itself is a mark of success. that is a mark of a number of economies that have started to see the recovery take off. and we're not in the kind of gloomy debate that i remember here at davos and elsewhere a year ago. and that points to second observation i make, which is monetary policy works. >> there's nothing wrong with forward guidance. i just said that, in fact, every country has to choose a concept that really is appropriate for the situation of the country itself. in our case, i believe you have to have a simple concept. the exchange rate is at the moment at the center of this concept. and you have to be careful not to have too many conditions of forward guidance. >> i think brazil was one of the

first to say that at the end of the day, the beginning of tapering is a net positive for the global economy, for international trade, therefore, for emerging markets, including brazil. >> all right. very interesting. listening to some of those comments, as well. what i thought was very interesting was given the opportunity to talk about the euro scope and the ecb, george osborne said the greatest risk to the united kingdom is the concern over the disastrous performance of some economies and their unemployment. >> that's the underlying theme we've had of the last three days, the concern not just about unemployment, but deflation again and again. it's a shame we didn't have mario graggy on that panel. >> he had an opportunity. >> let's listen to what the panelists had to say on the state of the recovery right now. >> after nine months of

implementing the -- the economy is on track. currently, the economy is growing. and even after the first tax hike in two stages, takes place this year as well as mid next year. >> so particular thing worth highlighting, sort of the dog that didn't bark. if anyone had described how serious the economic problems were going to be, people would have expected much more of an outbreak of protectionism than we've seen in the world. and while there's certainly problems, we didn't see it over the last four years. >> businesses will invest when they have confidence in the future prospects of that economy and confidence that their investment is going to generate a return.

understandably, particularly in the european continent where we had a near death experience with one of the world's largest currencies, the euro, people have been very risk involved. >> welcome to "worldwide exchange." i'm julia chatterley coming to you from davos. >> and i'm ross westgate. here in the studios in london, these are the headlines. >> the policy has worked. policymakers from across the grove in the cnbc debate defend forward guidance and their extraordinary actions during the crisis. >> and you've set up this debate as a debate about exits and exceptionally supportive monetary policy. that in itself is a mark of success. >> and also at the debate, cautious optimism over the state of the global recovery. former treasury secretary larry summers says the u.s. recovery hasn't been what he hoped. speaking earlier to cnbc, prudential faces the futures

bright stateside. >> the u.s. consumer is back. business was excellent across the u.s. and that means that all the factories and all the companies producing goods for the u.s. markets will continue to do work. >> european stocks with china growth fierce and mixed u.s. earnings put the dow and the s&p 500 on track for the worst performance in six weeks. and a third explosion rocks cairo after two separate bombs kill at least five people and leave dozens wounded, according to egyptian reports. >> well, welcome again to "worldwide exchange." what a fascinating debate we've had here in davos. we heard from japan central bank governor saying there's going to be no problem with the consumption tax. japan is going to grow at 1% to

1.5%. and it was quite interesting to see larry summers stunned when pitchling against george osborne there. good point, fair point over his criticism of uk austerity, ross. >> he had a grow at macro prudential saying they didn't work in spain's case. that was the thing that george was talking about, wasn't he? he said we've got all these tools that the bank of england can use and larry summers having another go at that. i think the interesting point about the fact that we're talking about the -- he made this point, the fact that we're talking about exit means we've got a successive global monetary policy. it's an interesting thought. i mean, a lot of people who, of course, said we had to exit because it's not doing any good any more, as well. how much is kiwi in the states, for example, driven this recovery? could you have done something more effective in the third round of qe, which has bostoned asset prices and just clean up the banks and direct that money direct into business to help hiring? i don't know. there's a lot of debate around that.

>> there is. and define the term exit there, as well, when you have the likes of the fed balance sheet continue to go grow and expected to continue to grow this year, too, ross. but we have a jump actually for you again. i'm going to be speaking to the french finance minister. lots of turbulence on the political and the personal side there. given what we've seen in the last 24 hours with china and concerns, too, about their banking sector, i'm going to be speaking to the former chairman of the bank regulator. so i'm incredibly excited about that, too, ross. another jam packed show coming up. right now, we'll bring you up to speed with where global markets are. weighted to the downside, we are indeed at a session low, as well. decliners outpacing advancers by around 8/2 on the dow jones stocks 600. the ftse off about 0.3%. the xetra dax and cac 4 down nearly off a 11% why he at the

close. xet kra dax down 0.5% and the cac 40 down 0.6%. ftse mib down 11.15%. nokia was rebound ed. 1.17%. they are handing over their phones, of course, to microsoft, who did fairley well after hours, up nearly 5% at the moment for microsoft. it beat with its second quarter profits, revenue up 14% with the likes of microsoft 1 and the surface tablets doing fairley well. nevertheless, stock up in frankfurt here up around 3.8%. the company failed to comment about the ceo, as well. now in the bond market, yield fallen quite a lot, actually.

ten-year treasury yields, now 2.75%. 2.759% is sort of the low that we've matched in yesterday's session. bond yields down to 1.67% and gilt yields down to a six-week low. we got down to around 2.775%, sort of just below that, as well. you have to remember, we were up to nearly 2.9% on the yield post that employment number just 48 hours ago. the reason we've got yields low is, of course, we've got a bit of a risk sell-off. that's interesting how that is playing off in the currency markets because euro/dollar has been perceived potentially more as a safe haven to the dollar. dollar/yen has come back down to below 103. basically seeing a sell-off across the board for the dollar. and terlg pretty much on the 2 1/2 year high that we hit during the session yesterday at 1.6625.

that's where we stand at the moment with european trade. sixuan has been patiently waiting for us in singapore. hi, sixuan. if thank you, ross. asian markets traded to the downside this friday. the shanghai composite added 0.6%. the shenzhen composite gained 11.3% and the china exports ended higher by 1.6% to a new record high. this small cap tech centered index is up over 6% for the week, over 12% year-to-date and let's not forget it values price percent last year. but in japan, the nikkei 225 tumbled 2.3% as the dollar/yen weak.ed to a two-year low. and in the region tech space samsung's q4 mobile profit tumbled 18% from q3 and shares ended higher by 0.6% after the company pledged a higher

dividend. meanwhile, lenovo paired down some early gains and gained 1.2% after the chinese pc giant agreed to buy the low end server business for 2.3 billion dollars. shares of this information and content service provider surged to near 14-year highs after alibaba said it would jointly control the company in order to enter the pharmaceutical data industry. so that is a look at the asian markets. ross. >> thanks for that, sixuan. still to come, blasts killing five according to reports. we'll be in cairo with the latest right after this. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas.

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a third blast has been reported near the cairo police station after two earlier explosions killed five people, according to reports. yusef is in cairo with the latest. yusef, what do we know?

>> well, ross, it's been a dramatic few hours. it started off with a large explosion that rocked the capital, woke me up, as well, really. it was felt across the city. basically, went up at the cairo police headquarters not too far away from our vantage point, probably about 3 to 4 kilometers. that is a symbol of state security. we understand from the ministry of health that at least four people have been killed in that explosion and 76 injured. leaving a massive crater and damaging not just the front facade of the building, but also some of the surrounding structures, as well. keep in mind that security officers and administrative interior have already taken additional precautions in anticipation of violence over the weekend. and that was followed by a section explosion just a few hours ago. again, here we understand from the ministry of health that one person has been killed and four

wounded. that was your metro station again. not too far from our vantage point in that direct. again, what's interesting to note is that the series of explosions, all three of them happening close to or near security stations or police stations, an ied going up in the pyramids area. that, of course, a clear escalation of the level of violence that we're seeing in the coming of a critical juncture for this country. saturday, it will good through the third year anniversary since the 2011 egyptian revolution. coming off the back of the referendum, some decisions, as well, supporters of ousted president mohammed morsi and the muslim brotherhood has said it would stage protests and supporters of the army-backed transition, as well. nobody has claimed any responsibility for these explosions, but we'll keep a very close eye as this story

develops. ross. >> yusef, thank you for that. plenty more to come from yusef in cairo. elsewhere, whether forthcoming elections can be delayed will be discussed in a thai court. a vote has been scheduled for february the 2nd which the opposition says it will boycott. meanwhile, street protests continue in bangkok despite a 60-day state of emergency. we're still digesting what came out of our cnbc debate earlier this morning. the brazilian central bank governor was one of the five panelists there. he made a few comments about the brazilian economy. he described it as being robust. given the growth estimates around 2% this year. he also reiterated the comments that he made last year about tapering being a net positive. it's a sign that the global economy is recovering. he also said trying to adjust policy, they're trying to

rebalance their economy and fight high inflation. that country is still significantly above the inflation target. he did say it's under control and they have been able to lower it. he was trying to put the positive sentiments across about the economy right now. but i did actually get to speak to the brazilian finance minister yesterday and in light of the moves that we've seen in some of the emerging markets overnight in particular. i asked him about the impact of fed tapering and tightening last year and whether we could see ongoing volatility this year. >> translator: i believe that as the international economy recovers stimulus will once again be in plague place for emerging economies, such as the brics. we only accelerated in the recent past. with the american recovery, which seems to be consolidate, some level of economic recovery for europe as well as for japan and the uk, you may possibly see

recovery. and probably also from china which will continue to grow by about 7%. india, which will grow by 6.5%. >> do he see both for further follow tilt this year? you're talking about a u.s. recovery, by that has not impacted tapering and tightening of u.s. rates. could we see a similar effect this year than we saw last? >> translator: tapering causes some volatility in exchange rates. hahas started and started in ma last year, i do want believe we will see a lot more than we've seen. >> you're fighting high inflation. analysts believe we could see rates as high at 1 1.5% this year. that's going to have an impact to consumer demand. that's going to have a huge impact, isn't it? >> actually, next month, we'll see the first tapering take

effect and subsequently it will depend on the performance of the american economy. and i think the market will get used to it because it anticipates thing and has accounted for this tapering for a long time. so i don't think there will be a lot of volatility and i think the market has adapted. >> we did also talk about the world cup. he did say that brazil would win. i think that's being a little unfair to england but, hey, we've move on. still to come on the show, unemployment is one of the key themes that has come out of davos over the last few days. after the break, we'll discuss given the improvements we're seeing in the u.s. and the uk, the have and the have-nots in the employment market. the ceo of adecco coming up after the break. stay with us.

the experiment has worked. bolzmakers from around the globe defend forward guidance and

their extraordinary actions during the crisis. >> you've set up this debate as a debate about exit from the exceptionally supportive monetary policy. that in itself is a mark of success. >> also at the debate, former treasury secretary larry summers says the u.s. recovery hasn't been what he hoped. speaking earlier to cnbc, prudentan stocks says the futures are bright state side on. >> the u.s. consumer is back. christmas was excellent across the u.s. and that means that all the factories and all the companies producing goods for the u.s. markets will continue to do so. >> european stocks, a fears of mixed u.s. earnings put them down on the s&p 500 for their worst weekly performance in six. and a third explosion rocks cairo after two separate bombs in the egyptian capital kill at least five people and leave dozens wounded according to local reports.

we'll have the latest updates from cairo later in the show. right now, european equities are down. not quite as heavy as they were yesterday at the close. right now, the ftse 100 is off about 0.25%. 0.3% for the xetra dax. 0.5 percent off for the cac 40 and 1.2% off for the ftse mib. there seems to be a delayed reaction to the chinese data. european investors took it in stride. it seems to have impacted u.s. investors an awful lot more. that weak pmi number that we got on thursday. as far as bond markets are concerned, yields are lower. there has been a flow of money back into yields. u.s. treasury yields, 2.75%. ten-year gilt yields, 2.76%. we're down at the lowest since the end of november. when you bear in mind the unemployment report, gilt yields are up 2.9%.

let's show us where we are on the currency markets, as well. the dollar has been weaker nearly across the board today. down to below 103 against the yen. euro/dollar is up to 1.3677. cable is pretty much on a 2 1/2 year high, 1.6620. the aussie is down a fresh 3.5 year low. but euro, more of a safe haven currency at the moment than the dollar is which in itself is very interesting, julia. >> thanks very much, ross. well, we've been watching, obviously, our debate on the future of monetary policy. i want to give you a recap of some of the highlights that we saw. george osborne defending forward guidance, dvenlding mark carney given what we heard overnight about the potential for relaxing some of that forward guidance. he was saying qe has worked, forward guidance is part of the policy. we highlighted macro rules particularly around the corner with cyclicals.

we have kuroda of japan saying abe-nomics is going to continue to work. we're going to see growth between 1% and 1 is. % of the years. a positive sentiment from here, too. pick up on brazil, based on a robust economy, they acknowledge that the retracement of some of this qe is a good sign for the global economy. we also had larry summers reiterating that he doesn't preclude the possibility that we could see a slowdown on perhaps some of the cautious optimism that we're seeing here, too, that he did say we're coming out of it, we're coming out of the slowdown that we've seen, but it's not quite what he hoped going back to the idea that we heard about yesterday that we're in an innovation glut.

>> you've set up this debate about an exit of monetary policy. that in itself is a mark of success. that is a mark of a number of economies that have started to see the recovery take off. and we're not in the kind of gloomy debate that i remember here at davos and elsewhere a year ago. and that points to the second point i make, which is that monetary policy works. >> there's nothing wrong with forward guidance. i just said that, in fact, every country has to choose a concept that really is a appropriate for the situation of the country itself. in our case, i believe you have to have a simple concept. the exchange rate is at the moment at the center of this concept. and you have the be careful not to have too much conditions. with forward guidance. >> i think brazil, the central bank of brazil was one of the first to see that at the end of the day, the beginning of tapering is a net poof for the

global economy, for international trade, therefore, for emerging markets, including braz brazil. >> so i think everybody here in davos accepts it's one of the risks to the economy going forward. but what else? we've got tun employment picture, too, and that is at the forefront of people's minds. take a listen. >> the most important thing is jobs, jobs, jobs. we are still in the stage where, you know, we choose everyone else, but the part of the job has to be addressed and that requires specific policy. it's not going to happen simply because there's some recovery in the growth. >> the biggest crisis facing the european union is the scale of unemployment among young people

and the potential of those young people. >> job creation, we have seen an amazing increase in jobs in sweden. but we need more because there's a lot of people would want the jobs. so that will be the main item i think for the election. >> jobs, in a sense, are the gorilla in the davos living room. we've seep last year, despite the real talk of economic performance, stepping back from the brink of crisis, global unemployment was up 5 million. and on current trends, it's going to continue growing for the next five years. when we talk about exits from crisis, let's not forget the most people out there, the crisis ends when they've got a job. that's the way people lift the crisis. >> so let's draw down into a bit more details on the outlook for the jobs market. i'm joined by the ceo of adecco. patrick, you were talking to us about the end of last quarter about a pick up in temporary highs and that was a good sign

for the recovery. has that moment on yumm continued? and what's going on with permanent hires? because we need quality, don't we? >> definitely hiring continues to grow. we said we would be back to growth in the fourth quarter and this will be the case. we're looking forward to a good year for 2014. since we are ahead of the economy at least six, nine months, i think it's a good sign of the economy, as well. if we look at the different markets, italy, spain, portugal picking up. this is kind of surprising. manufacturing in germany very strong. the uk coming back. france is still under pressure. france is still in negative territory. we expect france to come back to growth in the first half of the year. not a lot of reforms have been done there. all if all for europe it's a very good picture. for eastern europe, very growth. we are looking for a strong momentum in the year. >> and in terms of temporary hiring and permanent employees, there's a crucial difference here, isn't there? >> it's going to be mostly semp rather hiring.

you know the environment is volume title. customers are still relaxed to really invest for the longer term. there is no scarety. so you can find any skill set in a temporary way. why would you take long-term commitments? it's more costly. a lot of the markets like france that i mentioned are still very lidgy. very difficult to let people go. there is no out flow, there is no inflow. it's going to be done by mostly temporary hiring. >> what changes that? what changes that mentality? >> it will change if we have a couple of quarters of very good growth, more scarcely if unemployment numbers go down. for example, in the u.s., over time you will see more fixed hiring. but in europe, i don't see happening for another year or two. the real a time of fixed hiring because the unemployment is at 12% and the market is still -- the environment is still too volati volatile. >> so that's pretty desperate

for the youth unemployment situation, particularly in europe. are you expecting that to remain pretty much as it is for the next year, also? >> it's stabilizing. indeed, it's sad that youth unemployment is so high. we're talking about 24%, around that number in europe for people below 25 years old, especially in southern europe. if you look at spain, 56%, 57% of youth unemployment. it is very sad. what we have to do is get these people into flexible jobs, even if it's for a month or two months, we have to get them some experience so that they can build up something on their cv and i'm finally will end up in the fixed jobs. but i don't see that turning before 2015 because it's only from 2015 thanks to the demographics that they're going to be less people flowing into the workforce and people flowing out of the workforce and then the youth will have a chance again. >> eric schmidt, yesterday we were talking about the impact of technology tech logical advances

and that that sends need to creating and adds to hiring. do you think that's part of the reason why we're seeing a jobless recovery here? >> i don't think it's already the reason. the reason is that we don't have enough longer end industrialized jobs, the lower end manufacturing jobs, the construction jobs or whatever. but it's mainly amongst the unskilled people that we have a problem. it's not with people with higher degrees that can go to technology. you also don't have to forget that besides 35 million people being unemployment in europe and in north america, there are still 7 million jobs in both regions that don't get filled in. so there are jobs out there. it's just that there is a mismatch between offer and demand. >> very quickly, about adecco in particular, there's been rumors about haze in the uk. >> no, we clearly said that at least until the end of 2015, we won't do any acquisition. we are focusing on organic growth. we will do this for two years and we will do it for another

two years. some other people are responsible for that. >> thank you very much. the ceo of adecco there, ross. a bleak picture and outlook on the jobs situation, particularly in europe. >> yeah. no surprise, i suppose, that. thanks, jules. n on monday, the bank of japan releases minutes from its meeting, the real focus will be on corporate earnings, including lg electronics from korea, taiwan's au optronics and adani in india. cnbc caught up with the governor of the bank of korea and started by asking about the outlook for the economy. >> competitive devaluation of foreign exchange would result in a grave -- and i still believe so. and i'm sure that all countries of the world are fully aware of

the problems of competency variation. and we in korea will never resort to such policy. and now one year has passed. i don't want to make the comment on other central banks, but it was appreciated relatively to the japanese yen substantially. but we somehow were able to manage such adverse situations up until now and i do hope that we continue to manage the situation where -- and one thing i like to note is that unlike what we expected in the past, our products now possess some price competitiveness and so i think we will somehow manage the situation in the -- in the

coming months and years unless there was a drastic change in variable. >> but you actually did say in a recent bok report that yen is going to hurt south korean skillmakers, automakers and machineries. how do we or in korea, the government or the central bank, plan to protect their damage? >> it's a good question. actually, there are certain investments that we have already made. machinery industry and automobiles and some part of electrical appliances. and as the japanese yen by more than 20% and in the past year.

japanese noi now enjoy price competitive. what i'm saying is that yes, there were industries that were damaged by the japanese yep, but overall, we somehow managed the situation so that as you know, we have recorded historical high in the last year. and for those industries which are injured or disadvantaged by the japanese policies, i think what we have to do is they will have to think of some microeconomic policies rather than macro policies which apply across all industries. we verified certain specific instruments to help certain industries. >> all right. shifting now to china, concern over the country's shadow banking system has been a growing issue, especially after

a high yield investment trust ran into trouble. china credit trust has made progress in avert ago default. but the head of china's icbc told us the incident is a lesson learned. the bank, which helped to market the trust reportedly takes some responsibility and will decide the next steps next week. icbc's chairman told geoff cutmore that investors shouldn't expect a straight bailout. >> the icbc will not rigidly pay out funds to the investors. we do not assume that kind of ridgy responsibility. ble this incident has been a good opportunity to educate the lenders, the trust company and the icbc. >> i'm joined by a fellow at the fund global institute and the former chairman of china's banking commission. we heard in the reports before christmas that china's local government debt is reaching level of almost $3 trillion, 40% of which could come due in 2014.

you've been warning about this since 2011. how dangerous is this situation now? >> we announced it twice about that figure in two years. the first time is about the s&p 111. and the second time it's about 20 trillion something. it's 18 trillion. >> you're talking about the shadow banking secretary here, too? >> it's not just shadow banking. it's local government and borrowing. i can it's a remaining issue and people should be concerned about that. it's to increase the

transparency. so they are monitoring the changes. and the popular figures. this is good. and we are nourishing some legislation for each province according to that ability. and the repayment ability. also carefully monitoring the system attached. >> we're seeing the term instruct rise and two things are effectively balance, you're trying to walk a tight rope

trying to achieve this. >> yes. we have to keep the balance. we need to pump fresh -- into the markets to keep everything running instead of the credit fielding fixed assest investment and exports and the manufacturer, mass production or something like that which leaves a very bad pollution, as well. but to get to the pressure to keep pushing to climb up along the value days. >> what is the significant default this year particularly in the banking shadows where regulators can't reach?

>> on yeah. i think chinese government mentioned overcapacity for this year. we were well focused on this. we have to do something to curtail such overcapacity. so in that area, and influence asset would be rising in that area. >> how painful? are we talking about the potential for a financial crisis in china in the next six months? >> i think it will be a witness. in terms of capital, structure and the levels of capital. and left to them as provisioning. so i think they are able to

fight against overcapacity in line with anti-pollution campaigns. >> so the message here is that no matter what damage, no matter what -- >> you can digest that and move on. there are no alternatives. >> brilliant. thank you so much for talking to us. now, coming up after the break, everyone is talking about ways to monetize mobile. but how about china mobile more ethical? we're going to see up to 10% of each customer's bill going to charity. how does that sound? to me, it sounds complicated. >> not sure if the mobile -- would go for that. plus, we'll interview bank of america's ceo brian moynihan

together with bono. you2 has reported a new song with bank of america that will run during the super bowl. you can catch that interview at 6:00 a.m. eastern.

welcome back to "worldwide exchange." now, if anyone talks about monetizing mobile, there's one man out there who is trying to make mobile more ethical. the co-founder of wikipedia is taking on the cochair role of the people's operator phone network which ames to give 10% of each customer's bill to charity. joining me now is jimmy whales. great to have you on. >> thank you for having me. >> explain to me how the people's operator works. >> so we take 10% of your bill and give it to your choice and take 25% of the company profits and donate that to charity. our rates are as low as anybody's. how do we do that? we have to have very, very low marketing. so it has to spread by word-of-mouth and virally online. which is something i know a little bit about. >> and what has -- so far?

>> it's early days. the company has been around for about a year doing test marketing in the uk market only. but i've joined the company to take it global and they're really to go big. it's very exciting. >> so you're not going to charge anyone any more to use your phone system? >> you do k3k9ly what you always do. use your phone. and it costs the same as anybody else. but instead of us spending part of your money on more tv commercials, we give it to the cause that you care about. >> what is the response? what kind of growth are you expecting for this? we hope it's going to be really strong. people have to switch their sim card. easier than it used to be. >> are you operating any kind of phone? right now, we're sim only. but i'm here in davos talking to people looking to make some

deals. you know, we've got a lot of interesting ideas, like you can buy a phone and give a phone in the developing world, something like that. there's all kinds of cool stuff. davos is so full of so many people. >> i read a story about you dance on the floor and you said it was to moves like jagger and mick jagger was next to you. >> i don't think i can top that one ever. >> you see this is the best place to communication your message and to advertise what you're doing right now? >> absolutely. and davos remains the place i've probably spoken to a dozen telco ceos while i'm here and that's something you can only do at davos. >> one of the new panels here in the new mobile context, what do

you see is going to be the defining change in the next five years? >> i mean, mobile is huge. of course, from wikipedia, a lot of my interest, a lot of my work these days is related to the growth of wikipedia in the developing world. mobile is having an enormous impact there. as the next billion people come online, they're coming online with mobile devices. it will be completely transformative. >> ethical mobile on the way forward. jimmy wales, thank you so much. ross, back to you. >> interesting stuff. ask him whether he's going to be jigging around again tonight. now, some of the corporate stories we're following, samsung posted quarterly profits weaker as a result of shrinking global demand for smartphones. its fourth quarter profits are in line with early guidance. but the electronics giant is warning its facing earnings challenge next quarter. that helped to keep shares up

today about 0.6%. microsoft revenue rode 14% on strong holiday sales in the new xbox 1 game consoles. sales doubled from the previous quarter. the firm hasn't said much about the phone business from nokia, which it's in the process of buying. the company didn't comment on its current search for a new ceo which is now running from month to month. shares up in after hours, about 4.5% in frankfurt. starbucks first quarter profit was up 25%. that beat forecasts, although revenues missed. same-store sales came in light. consumers spent more time shopping online during the holiday, which is a visit to two starbucks stores. the firm is boosting its full year earnings outlook. shares up more than 1% after hours. european equities, meanwhile, ahead of the u.s. open today have been softer, not the sort of falls that we saw in the u.s. we bounced off the session lows, the ftse 100 off 0.2%.

xetra dax off 0.2%. kakt 40 off 0.4% and the ftse mib off 1%. around the globe, we have seen bund yields fall. ten-year treasury yields down 2.75% today. we're on that mark. gilt yields, 2.75%, the yield on that. that's the lowest since the end of november. and after the unemployment later this week, we are up around 2.9%. we'll take a short break. still to come, markets and business leaders have cautiously welcomed to reduce unemployment and cut taxes. we'll talk to the man at the heart of the finance reform, finance minister pierre moscovici.

welcome to "worldwide exchange." i'm julia chatterley. >> and i'm ross westgate. here are your headlines. you set up this debate as a debate about exit from exceptionally supportive monetary policy. that in itself is a mark of

success. >> also at the debate, cautious optimism over the state of the global recovery. former treasury secretary larry summers said the u.s. recovery hasn't been what he hoped. and european stocks extend losses with spanish markets leading the way south as u.s. stocks push the s&p 500 down on its worst performance in six weeks. and a third explosion rocks cairo after two separate bombs leave dozens wounded according to egyptian reports. well, huge focus on our policy debate this morning on the future of monetary policy. of course, you had the uk chancellor george osborne

defending forward guidance while the economy needed its course. we heard a hint from carney yesterday suggesting that perhaps they'll look to move away now from the focus on the unemployment rate in particular. you had to expect a bit of a pushback from jordan of the s&p. he said that a forward guidance, that kind of information can be dangerous, interesting abe style suggests towards him suggesting that actually the euro/swiss flaw is an absolute forward guidance said it best during the future prediction policy. but listen in to what the policymakers had to say about forward guidance. >> there's nothing wrong with forward guidance. just that in fact every country has to choose a concept that really is appropriate for the situation of the country itself. in our case, i believe you have to have a simple concept. the exchange rate is at the

moment at the center of this concept. you have to be careful not to have too many conditions with forward guidance. >> i completely reject the forward goois guidance is a failure. i think while the bank of england has done is provided clear communication, supportive monetary policy, that has assisted alongside the government's efforts a very strong now set of data in the united kingdom. >> i think another key message that came out of the debate, the message from policymakers there was that qe has worked and it's got us back in the right direction heading towards the recovery. listen to what they had to say about that, too. >> after nine months, all for implementing the qe, the economies on track. current economies growing growth at 10% and even after the sales

tax hike in two stages takes place this year as well as mid next year. >> so particular thing worth highlighting, sort of a dog that didn't bark. if anyone who described how serious the economic problems were going to be, people would have expected much more of an outbreak of protectionism than we've seen in the world. while there's certainly problems on, we didn't see it over the last four years. >> businesses will invest when they have confidence in the future prospects of that economy and confidence that their investment is going to generate a return. understandably, particularly in the european continent where we had a near death experience with one of the world's largest currencies, the euro, people have been very risk event.

>> now, one of the underlying keep themes at davos 2014 has been concern still about the eurozone being youth unemployment, about the potential risk of disinflationary trend, particularly in the periphery. i'm now joined by the french finance minister, pierre moscovici. thank you so much for joining us today. i want to cut to the heart of some of the issues that have been brought up particularly in the global media. you have the most unpopular president, now in a sex scandal. is that getting in the way of the message that you're trying to promote? >> let's have private life in the private life of the president and things are not worrying at all. in france, people can separate easily on that point of view. we have also very strong institutional systems. the president is elected for five years. he has a majority and he has a very strong will which is to reform this country.

and i think that he will be more and more popular if the economic and social results. and this is why he's implementing now a set of reforms which is unprecedented. we did that in the last 20 months. we reduced our deficits. we reformed our markets. we reformed our preparation system. we reduced the cost of labor. about her reforming the system. we are also improving the situation in the eurozone. but now we need to grow faster and we need to go further and this is why hollande launched a back -- responsibility back which forms to strengthen the capacity for the firm to invest and hire in order to create jobs. that is our policy. and i think that the french, they improved the policy. 75% of the people asked in the poll said we are in favor of this responsibility back. this is getting the right way. and the country is improving. >> they've been saying that for a while, actually.

they wanted you to introduce these kind of reforms. the public has been ready for longer than you've been willing to do it. do you expect some of the criticism or is that even a bit slow? >> i think you might be wrong there. the french economy is an economy which needs reformed and that can be reformed and that is reformed. that would need to do that respecting social model. and the french are very attached to that. we don't want to destroy the social model. we want to adapt the economic and social model in order to have it more efficient, more performance and to get more investment, more growth and more jobs. that is our program. and that is why president hollande is committed to -- i can tell you that it is involving that program that he will be involved in saving on public expenses, which is absolutely necessary and that we will lead until 50 billion for the next thee years. >> still, the message from the

business community is that you can't force them to hire people. how are you going to get around that? and how quickly can you take action? >> we don't want to force anybody. but let's be logical. the cost of labor is too high. okay. let's reduce it. they tell us the level of taxation is too high. let's discuss it. they tell us the taxation system is too complicated. let's simplify it. they tell us the cost of labor is too high. let's do it. but if you do all that, now they are capable of investing more and to hire more. it's not something as an obligation. we're not in the soviet union, but we are trying to build a social and economic compromise of high quality and also of high ambition. and this is what it is all about and this is what you are committed to and it's key from now to define the conditions to

find hopefully a -- between as well the trade unions, which want reform, too. some of them and the business and then we will have a hiej set of new legislation including, of course, next budget. >> can you implement action before the european parliamentary elections? and do you think that's going to make a difference to the number of votes that the national front get? that's another issue, isn't it? >> the decisions will have to be made, of course. before the parliamentary elections. but before we present our national plan for reform and our program to become issues because we are european. we are dedicated to europe. and one thing we want to do furthermore is to take new initiatives alongside with germany in order to have more growth in europe, to work on energy in europe, and to improve the governance of the eurozone. because if we want to have better results in the european election, people need to feel

that europe is not constrapd, that europe is not a pain, that europe is not a punishment, that europe is hope. and what is hope for the people when a country or a continent is in crisis is jobs, jobs, jobs. and that is what we are working on. >> are you misjudging the amount of disenchancement with the government, with francois hollande in particular and the pain that the people of france have already been through? it's going to be tough at this point, isn't it? >> again, the french, that pain is about improvement and they consider that this president and this government are legitimate. the opposition is weak, the opposition is divided. top sigz continues some of them somehow that what we are doing is in the general interest of the country. so we have the strength and we are entering into a process of social dialogue. i am very confident that this new set of ambitious reform will be implemented and will be

adopted as well by the parliament and by all the social partners. it's a new method, it's a new ambition and you'll see new results. >> and what's the biggest risk to this government? is it the result of nicolas sarkozy or is it the national fund? >> the main problem forhis government is unemployment. because we have elections, general elections in 2017. i don't know what nicolas sarkozy will do. i don't care about that. i care about france. and how can i -- france? by economic results. so we need to focus, to concentrate on our jobs and our jobs is to have better economy, more investment, more growth, more jobs. that's our only concern. >> thank you. thank you, the french finance minister there. pierre moscovici. >> there was slightly better data yesterday in france. pmi is still in contraction, but

better than we thought. but services are still not expanding. after the sell-off we saw yesterday, the dow down 175 points and the s&p is down 16. today, we are once again below fair value to the tune of around about 50 point on the dow at the moment. five-week lows, we're on track for the worst week in six for the weekly performance for these markets. the nasdaq at the moment is some seven points below fair value and the s&p 500 is about 5.5 points below fair value. as far as european equities are concerned, 0.5% for the cac 40, xetra dax down 0.3% and the ftse 100 off 0.3% was as well. ten-year treasury yields getting down to a six-week low. currently below 2.75%. 2.74%, the yield on the on ten-year. yields lower in bund, as well. and gilt yields down the lowest since the end of november, 2.75% also the yield.

we were up to nearly 2.89% was the yield post the unemployment number that we got just 48 hours ago. on the currency markets, interesting here, we have sort of a risk off move. but the dollar hasn't benefited. it used to get risk off, you used to get dollar up against through. euro/dollar has moved up to around 1 is.3674. on monday, a two-month low at 1.35. dollar/yen has come down to 10 2.74. further away from that 2 1/2 year high around 105. aussie/dollar is weak again, down at fresh 3 1/2 week lows. sterling against the dollar is currently up 2 1/2 year highs at 1 .5628. on the agenda today, plenty of earnings. we'll hear from bristol myers, honeywell, procter & gamble, kimberly clark, state street and xerox all before the opening td

bell today. still to come, becky will be speaking to brian moynihan together with bono, u2's front man. bono has recorded a new ad which will run live during the super bowl. george has plenty more for us in the next 50 minutes. that's right, ross. jobs, growth, disinflation? the question is, is the united states of europe? well, my next guest thinks so. that's coming up right after the break. and later in the day, we'll bring you an extended version of closing bell. that from 6:00 p.m. cet. "worldwide exchange" continues right after this.

the headlines today, world leaders defend extraordinary measures taken during the crisis in a special cnbc debate from davos. the dow and s&p 500 are on track for their worst week in six as china fears and mixed earnings weigh. and at least five people

reported debt in cry row after three explosions rocked the egyptian capital. not a moment to lose, i'm going to introduce my guest immediately because we're both freezing. vivian eredi, justice for fundamental rights and citizenship. the dutch prime minister said to me yesterday that banking unions, that's fine, we needed that, but we don't need a fiscal union and we don't need a political union. how does that fit with your core that we need to see a united states of europe? it doesn't, does it? simply, i do not want to discuss what the prime minister has said. i'll just say we are in the creation of a very strong banking union because it is a central control of the decentralized system. the fiscal union we have already half created it with the control

of the national budgets before they go to the national parliament. so that no budget goes best and has a negative influence on other countries. and the political union, we are in the creation of it because we need it. we need europe to speak with one voice outside and to defend our positions in an efficient way. that's all we want to do and that's what we're going to do. >> but we don't stick with one voice. we're going off in different directions and we're denying things that have been achieved as you made the point about potential fiscal union. . we're all going in the opposite ion, aren't we? >> but it is a real one, which we have started. so i think a lot of information has to be done, even with the prime minister. >> you communicated with david cameron, but i look around europe and i see a lot of the common sentiment there. how damaging are the european

parliamentary election he going to be at this stage, do you think? >> well, we are certainly going to have from the extreme left and from the extreme right more to the europeans coming to the parliament, but no parliament takes decisions by majority. and there is going to be at least 70% majority in order to continue with the banking union, to continue with the fiscal union, and to deal with the political union. >> you also spend a lot of time in the ukraine talking with both sides of the parties there. where do you see end game there? are fresh elections the answer? >> i am very worried. the worst thing which can happen to a country, i hope that the common sense comes back and that the two sides manage together to create a common country in the interest of all ukrainian people. it's going to go

ahead to civil war? >> i don't think anything. i keep fingers crossed hoping it won't go there. >> crisis, such a word in this case. >> it is for the ukrainians to get this done. we do all the helping we can do. our responsible leaders are going to ukraine, are speaking with the opposition, are speaking with the president and try to calm down the situation. but it is for the ukrainians themselves to get their hoe house in order. >> you have a very important person here in davos. you're negotiate b data protection with the u.s. what progress are you making? >> well, i think there was a wake-up call in the united states where some months before still nobody thought that privacy was important and we have seen with the latest speech of the president obama that privacy is in the forefront. we have seen and to hear it everywhere in davos, that

companies, american companies are very nervous because they are losing business. without trust, you cannot have internet world functioning well. people do not entrust their data any more to the companies. i think that that example was microsoft coming out and saying it is really now also to hope the data of its companies and of its clients on non-american clouds. so that shows that data protection is a selling argument. and it is not appear argument which keeps things -- but trust is gone. and we have together to try to bring back this trust and that is why i am very happy that the american leaders stop now the negotiation with european leaders in order to be capability to have both sides of system of c trust regulation so that people and companies can entrust the data. >> the direction is right.

eu commissioner vivian reting, thanks souch for talking to us. >> thanks for that. let's take a short break. still to come, the death toll in cairo rises as a second blast hits near a metro station in the egyptian capital. we'll be in cairo when we come back. [ male announcer ] this is the story

of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪

the egyptian capital of cairo has been rocked by three explosions now. yusef brings us the latest. >> ross, as you mentioned, three explosions and rocking the capital here this morning. it was important to point out the first one, which was the largest one happening at 6:30 a.m. local time hitting the politic headquarters, not too far away from where we're standing right now. this is a symbol of egyptian government power. again, at least four pooed people dead and 76 injured. if you look at some of those images, a large crater was left just in front of the building and much of the front facade and the surrounding buildings including an islamic museum have been damaged extensively.

then that was followed by a second explosion near a metro station and a third explosion which was an ied also in that direction. another tren here, perhaps worringly trend is that these explosions happened near or at police stations. today is friday. egyptians are preparing for friday prayer and marches and demonstrations are preparing for both sides. we'll keep you posted. >> yusef, thanks for that. we'll take a short break. as we do so, u.s. futures are pointing to another negative start today. currently, the s&p 500 called down seven. more from davos coming up right after this.

welcome to "worldwide exchange." i'm julia chatterley here in davos. >> and i'm ross westgate. here in london, these are the headlines from around the globe. >> the experiment has worked. policymakers from across the globe in the cnbc debate defend forward guidance and their extraordinary actions during the crisis. you've set up this debate as exit from exceptionally supportive monetary policy. that in itself is a mark of

success. >> also at the debate, former treasury secretary larry summers says the euro's recovery hasn't been what he hoped. speaking earlier to cnbc, prudential faced the future stateside. >> european stocks, meanwhile, extend losses with spanish markets leading the way south. the s&p 500 is on track for the worst performance in six weeks. but microsoft earnings get a big holiday boost with sales of the xbox and surface tablet, although the company is no longer to naming a new ceo. >> and geoff has joined me fresh from his monetary policy debate. there are some brilliant moments in there. >> there was a lot in there.

it's going to take a while to unpack all the statements. we have some good commentary about why the sell-off in assets shouldn't really be affecting brazil. obviously, mr. kuroda talked balt the japanese situation. of course, we also got thomas jordan, who was reluctant to be too critical about forward guidance, but is on the record about being quite negative about forward guidance and it's all for shaping monetary policy. as we went into the conversation, we had mark carney overnight, report that the uk perhaps was moving away a little bit from this idea of an unemployment threshold at 7%. and, of course, that was then my opportunity to bring this up with chancellor george osborne who appointed mark carney and say to him, well, are we going wobbly on forward guidance in the uk? is it fair to say that maybe forward guidance isn't the useful tool many thought it was projected as?

let's listen to what he said. >> i completely reject that forward guidance is a failure. i think while the bank of england has done is provided clear communication, supported monetary policy that has assisted alongside the government's assets a very strong now set of data in the united kingdom. >> so a staunch defense there of his central banker, inevitably, that's what you would expect, i guess. but it does bring back on to the table for the markets this idea of actually what did mr. carney want too chief by suggesting it's maybe not as important as some other measures of uk economic success at the moment? so we moved on in the conversation. of course, former u.s. treasury secretary larry summers was with us on the panel. and he's been quite an outspoken critic of the way that money from qe has found its way into financial markets, but perhaps not into infrastructure projects. so i was asking him, julia, where he thinks qe on that basis

has been a success or not. let's just listen to what he said about spending on infrastructure. >> i would just ask you the question, it's a moment where we can borrow money for 30 years in the 3% range in a currency we print ourselves and the construction unemployment rate is in double digits, that is not the moment to fix kennedy airport, when will that moment ever come? and you laugh. you laugh and it's at one level funny, but at another level, it is tragic that we are bequeathing to our children a deficit in the form of massive deferred maintenance. >> now, in these kind of discussions, there is a -- i guess a sort of -- that takes place between panelists who are in the same kind of area in the

economy and they're very reluctant to criticize each other, to be too public about spats that they may have had about economic theory. but we know larry summers sits in that kensian camp. he has been quite critical kal openly in the past about the uk's policy path and whether there was too much austerity in the uk. and, of course, we have the uk chancellor. so i pressed him and i said, but larry, you've been criticizing the uk. surely we need to represent that view here. this is what he said. . >> it is a fair comment that i have -- that is an entirely fair comment. i think the difference would be that the chancellor highlights the similarities and the ricks associated with the other countries in europe.

and i would see europe's difficulties in those increases in bond yields as centrally related to the fixed exchange rate, the absence of a central bank and the uncertainties that would be created if, for example, a u.s. state were to pursue a massive fiscal expansion. >> and did you see chancellor's osbourn's eyes glaze over, hang on a minute, mr. summers, and then he then came back and said, you know, well, look at the uk. growth is actually better. we had a very serious pullback. we have come back from that now. so let's not be too critical about the policy approach that's been followed. >> i think one of the key positives about forward guidance is expecting which thresholds in the communication policy. this is a point that george made that transparency can have the reverse effect. it's a problem of having a

number of people that can make comments about your policy. we saw last year the ecb going and perhaps suggesting that there's an extended period meant not six months, maybe more than 12 months. it's the talk and they have the same positive. all the chatter around it, also, blurs the message, doesn't it? >> it does. but what i thought was interesting, i mean, there's so much different central banks now that are different, at different stages on this monetary policy journey. but i think what we did draw out of this is don't think about the central banks as a permanent supply of cheap capital. and everybody, i think, had that view and i put it this way. look, the central bank is like the fire brigade. they turn up when the house is on fire, but they're not going to stay and rebuild it brick by brick. that's why government ves to step in afterwards and the private sector. and i think that's probably a useful way of thinking about it. let's not get carried away by taking on this view that central banks have to be forever

stimulating. as mr. draghi will tell you, and no doubt he'll say again tonight, we do not do the structural heavy lifting. that's down to the governments and the private sector. >> and the message here is don't take your foot's off the pedal just because we're seeing a kick up in various different economies and a cautious optimism here. there's still a lot of work to be done. thanks, geoff. great to wrap up the panel there and good work this morning. ross, we'll send it back to you. >> it was a very good panel. well worth getting the highlights, as well. now, if you've just tuned in this morning stateside, u.s. futures are not looking great. dow is on track for the worst week in fixed u.s. connects right now. the dow is tracking some 74 points below fair value. the nasdaq at the moment is nearly 13 points below fair value and the s&p 500 at the moment is around 8.5 points below fair value. microsoft did beat last night. this stock outperforming, but

not looking great elsewhere. as far as european equities are concerned, we're down on the session lowses. currently down 42 points. xetra dax, cac 40 down 0.8%. the ftse mib down 1.5%. we haven't got spain on there, but it's worth mentioning, the ibex is down heavily because of that latin american sell-off that we saw last night. spanish stocks have a lot of latin exposure. some of the other stories we're following as well today, samsung posting weaker quarterly profits and slippinging global demand for smartphones. fourth quarter figures and sales results were in line with earlier guidance, hit by a billion dollar payout to employees. the electronics giants is warning that it faces an earnings challenge over the next quarter. it's promise to go boost payout to investors around up to 0.6%. microsoft posted better than expected second quarter figures. revenue rose 14%. that was on strong holiday sales

of the new xbox 1 game console. sales of the surface tablet doubled from the previous quarter. microsoft is not staying much about nokia's hardware business which it's in the process of buying. sales up 4.6% in frankfurt. and first quarter profit at starbucks was up 25%. that beat forecasts, although revenues mixed. same-store sales came in just a little bit light. consumers spent more time shopping online during the holidays, reducing their visits to starbucks stores. starbucks is boosting its full year earnings outlook. shares up around about 1% in after hours, up 2.25% in frankfurt. jules. >> thanks, ross. well, the stars are alive lining for the u.s. economy. that's been the message that we've heard in davos over the last few days. but just what is the impact going to be of the u.s. health care, the affordable care act,

obamacare. a key person to ask is my next guest. he's the chairman of alliance boost. you've said about the u.s. health care system, i've got a quote here, quite rich, quite fat, and not particularly efficient at all. so what's your assessment post the introduction of obamacare? where are we? >> well, i have to say that the start of the obamacare has not been great. but i recognize that this in effect to make their -- more equitable. of course, these should be done in a way which is more efficient than probably all the system in the u.s. should change. and if that's so, this kind of things are complicated and if we

have the concept and the idea that things have to change, sooner or later, they will change. >> moving in the right direction with it? >> concept, yes. practical? i'm not sure. >> a big question mark remains. how will it pay out for walgreen? you obviously have instore clinics which many others out there identified as potentially being a benefit to you and that you can bring on people that have lower forms of health care cover aemg. do you see that as a profitable potential for the company? >> well, i believe that all in all, if we extend the coverage to most people, the pharmacy group, and walgreens will not be an exception. and we are really thinking of extending our services and our care in order to play our role in these new health care. >> to assist the health care

program or just to kind of bridge the gaps in the system right now? because -- >> there are faults, a matter of cause. walgreens cannot change an american ward. but of course to assist and also to offer new services in order to -- and to make it more pral pragmatic and more efficient. >> shareholders in wall greens have tried to take steps to limit your power should wall greens decide to fully take over alliance group. how does that pay out? will you fight for your 16th% if that happens? >> well, i believe as a result of this has been that the public domain that i am the director with more -- so i believe that the large majority of the shareholders don't believe that i will exercise and influence,

if anything, i will try to bring my experience and my know-how for the development of the company. >> and if it's not a problem, they can push off. >> of course. but this won't happen. these won't happen. i know exactly -- i have been working in public company for decades. i know exactly how to be -- >> can i ask you quickly about italy. what's your latest thoughts there given the political movement and move away from perhaps mr. berlusconi and mr. rhenni come up in the wings? >> well, something is moving in italy. we need a new wave of reforms. until now in the last 20 years, the practical reforms have been done. let's hope that this time italy will do the right thing. for the time being, the

situation is not particularly policy. but let's see. let's see and let's hope. >> thank you. you heard it on italy, i think, not particularly great, but better than it has been, yes. ross, back to you on that note. >> yes. i think that probably sums it up. don't forget, of course, you can head online for more from our covering of davos. you can stay in touch with the week's events online. also diop line, a special report from what experts in davos think could be the biggest risks. still to come, authorities are warning u.s. retailers may be at risk for the same type of hacker attacks that struck target during the holiday shopping season. more details right after this. plus, later in the day, an

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a recap of the headlines today, world leaders defend extraordinary measures taken during the crisis in a special cnbc debate from davos. the dow and s&p 500 are on track for their worst week as china fears mixed earnings continue to weigh. and at least five people have been reported dead in cairo after three explosions have rocked the egyptian capital. it's ban month since the massive data breach at target was discovered and the threat of further cyber attacks at u.s. retailers remains high. let's get more on this want courtney reagan is with us stateside. morning, court. >> good morning to you, ross. the fbi is warning u.s. retailers to expect more credit card breaches after discovering about 20 cyber attacks in the past year involving the same type of software used against target.

reuters says a confidential report was sent out to retaile last week describing memory imposed malware. now, when a customer swipes the card, the machine grabs the transaction data from the mag t magnetic strip and send it to the retailer's payment processor. while that information is encrypted, hackers can get it while it briefly appears in plain text. the fbi says the availability and affordability on the underground websites makes this type of crime attractive. target's attack ran undetected for 19 days resulting in the fastest credit card and debit card information from as many as 110 million customers. congress is wrapping up its investigation of the breach. john mulligal will testify on the 24th. neiman marcus says about 1.1

million cards may have been exposed during a data breach at the luxury department store between july and october. so on before the holiday season. in a statement, the ceo says about 2,400 cards have been used for fraudulent purchases, although she says customer's social security numbers and birthdays weren't compromised. neiman marcus says pin numbers never got into the hands of thieves of any kind because they don't collect them at the point of sale. ross, back to you. >> that's good to know, court. have a good day there. carl icahn continues to build his sales in apple. icahn's stakes now $3.6 billion. his investment firm published a letter to apple shareholders making the case for the company to increase its buyback program. apple stocks right now in frankfurt, flat. and it was 30 years ago today that steve jobs changed

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sglurpan equities down. u.s. futures after the sell yau yesterday, the dow down 175 points right now are suggesting that it's going to open down some 80 points. the nasdaq is currently being called down 14 and the s&p 500 at the moment is down around 9 points. that is the situation as we enter the final day of discussions here on cnbc in davos. jules haas a pretty good week. the highlight for you? >> i think the focus on jobs. we talk about it a lot in europe, but i think there's a huge push here. the other key take aways is the level of optimism. cautious, yes, that there is a level of optimism of crisis over. now let's get down to the nitty-gritty and solve individual issues. so the question is can we do that over 2014? >> absolutely. and i enjoyed the spat between between larry summers and george as born. it was nice to see larry summers had to take it on the chin a bit

and say he got it wrong, but then came back with macro prudential rules not working. >> but he did say a couple of times, fair assessment. so there was a bit of thinking time going on there, certainly. >> very important to have to think. and look, last year, there was still quite a bit of pessimism in davos, jewels. what's the take away on sentiment? >> definitely sent a big shift between the conversations we were having a year ago here in davos versus the sentiment that we got today. yes, there's acknowledgement that work still needs to be done. there's a lot of things that we need to focus on. but a deaf in the shift, i think. optimism about pushing forward this year. >> all right. don't forget, of course, later on the day we're going to bring you an extended version of european closing bell. for live coverage, morrow draa 6:00 p.m. others, jules, well done. i'll let you say good-bye.

"squawk box" is coming up next.

>> announcer: this is a special presentation of southbound b, a big lineup of banking giant ubs, eric cantor and sir richard branson. everyone is squawking davos and it all begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. we are live in davos, switzerland, for the final day at the world economic forum. i'm becky quick along with andrew ross sorkin and joe kernen. we have a huge lineup for you today including the ceos of ubs. eric cantor just came from a panel, right? >> and glenn hutchins. >> and we have two contenders for the top 25. and we caught up with bono and the george soros. we'll hear from this em in a moment. but first, to today's top stories. microsoft posting better-than-expected earnings after the close. the results were helped by strong sales and software for services and businesses and a solid holiday season for its new xbox game console and surface tablet. also, a slightly lower tax bill helped out, too. no word from the company on its