hole low. you're watching today's edition of "worldwide exchange." i'm ross westgate. here are the headlines. central banks tackle emerging market fears head on as investors now awake to tightening out of turkey's emergency meeting tonight. european banks confirms its full year targets, banks do an aggressive cost cutting program. >> i would not be overly

optimistic about the european environment in europe, the emerging economies are still pretty strong. there is economic growth. the ukrainian prime minister resigns as the parliament opens an extraordinary session. but u.s. and european leaders urge kiev not to declare a state of emergency. plus, apple loses its shine. first quarter results top forecasts, but iphone sales and the company's second quarter outlook are quite a long ways short of analyst expectations. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and a warm welcome to you. plenty more to come on those stories a little bit later. jules is in brussels.

jules, what's coming up then today? >> morning, ross. as you quite rightly said, i've been talking to some of the heads of the business boys here in europe. we spoke to the cbk, we spoke to the french medev to see what businesses can do to hire and invest. later in the show, i'm going to be talking to the head of the bdi in germany to find out what they're thinking, what were investors thinking as far as the german spending plans this year are concerned. remember, it comes off the back of that ifo that was the best reading we've had in terms of business confidence since 20111. so good signs there. and in a big contrast, we're going to be speaking to the head of the business body in poland, too, to get what they think about businesses and, of course, given what we've seen in emerging markets over the last few days, how concerned they are

about potential contagion and being dragged along with the rest of the sentiment as far as emerging markets are concerned. so plenty of things. business europe here saying that manufacturing contributes around 15% of gdp and if we could raise that to 20%, it would create an additional 400,000 jobs a year. yes, it's a drop in the ocean as far as unemployment rates are concerned in europe, but it's a start and that's the message here. so plenty to come on the show, ross, and i'll check in with you a little bit later. >> we'll look forward to it. plenty of other things besides jules, as well. the turkish lure into a nose dive. in 20 minutes, we'll speak to an em specialist who sat in on turkey's central bank meeting. also, yahoo! reports fourth quarter earnings as pressure continues to mount on marissa

mayer. then, u.s. and european equities have been suffering because of emerging market sell-off. we'll analyze the ripple effects on global currencies at 1100 cet. if that's not enough, president barack obama is expected to take a more moderate tone for his state of the union address today as congress entered an election year. we'll discuss the politics as 11:45. all that coming up. but first, fourth quarter revenue was up 4.6% and the outdoor advertising giant said its european operations had shown positive signs in the second half of last year. the ceo said the company is planning further takeovers. and philips had better than

expected fourth quarter ebita. it's still warning of a tough year. and st microstock flat, posted worse than expected fourth quarter revenue, just over $2 billion with an operating loss of $11 billion. europe's biggest conductormaker had to revamp after a joint venture with ericsson last year. and siemens, the stock up 1%. first quarter profit up 15% after the ceo said he was satisfied with the firm's progress as it wooshgs to cut costs. for more on that, annette is with us in frankfurt. what are the analysts saying, annette? >> actually, investors are pretty happy. the shares gained 17%. so for now, it looks like he's actually doing a good job to restructure siemens. he's going through the whole

portfolio to identify those units which are not profitable enough and there is also restructuring the whole operational setup. first on cnbc early on during quarterback quarterback, take a listen to what he said about the outlook for the company in 2014. >> we are focusing more on our activity and cost cutting programs as if there is going to be some tailwind along the way. we certainly appreciate it. but for now, we focus on productivity, we focus on our opportunities. with that, i believe we are on the right track going forward as i look forward to the next quarters to come in order to make good on what we have to promise. >> the tailwinds he was mentioning is actually referring to huge charges for delays and certain products like the trains here in germany. also problems of wind parks which don't have access to the

land, actually. so there is still a lot of problematic areas but there is, as well, light. for the infrastructure project and, of course, infrastructure product extremely good selling in emerging markets. that's what we were asking about his take on the emerging markets. take a listen. >> i would not be overly concerned as i would not be overly concerned about the european environment, the emerging economies are still pretty strong. there is economic growth. the world needs energy as well as health care china takes a bit longer. output is around 8%. so we are patient, we have the

market in focus and we would not be too surprised if we see an uptick anytime soon in the chinese economy. >> so he's displaying a very different attitude than his predecessor who was overly optimistic. mr. kaiser now is more cautious, but nevertheless is restructuring the company in quite a successful way. of course, we have those cost cutting methods and cost cutting, as well, will dominate the company or siemens as well during the next quarters. they're trying to restructure their charges and looking at their infrastructure portfolio. with that, ross, i'm sending it back to you. >> annette, thank you.

here we are, just over an hour and eight minutes into the session for the european equities. 3w8/1 advancers outpacing decliners. the dow and the s&p down at six-week low hes, but a bit of a bounce back today. we're up about 211 points, about 0.3% higher. the xetra dax and cac 40 up 0.6%. the ftse mib currently up 0. 8%. bond rates have just come off their lows. u.s. treasuries hit a two-month low. we're currently back up at 2.77%. we started rising during yesterday's session. oats just narrowed the spread a little bit with bunds. in 20 minutes, we'll get the fourth quarter gdp. we could see the fastest rate of

growth since 2007. we might be seeing annual growth rate advance 278%. gilt yields higher ahead of that 2.811%. the dollar has bounced off its seven-week lows against the yen. 101.77 is where we hit yesterday. maybe we'll come back to that in a few moments. let's kick off with li sixuan with an update on the asian markets. sixuan. >> thank you, ross. it's a mixed day in asia. many markets stabilized after yesterday's sell-off. chinese investors avoided big betts ahead of the week long lunar year holiday as the shanghai composite ended higher by 0.25%. the hang seng index ended lower, but soy sauce and cooking wanmakers, the company's name is huang world jumped with its ipo.

meanwhile, australia saw sell-offs across the board dipping to a 1 1/2 month low. india's sensex in action now trading lower by a modest 0.2%. this after the rbi's surprising rate hike. meanwhile, worries over the health of china's financial sector eased a bit on the news yesterday that its firm has averted default. the agreement allows investors to recover their invested principal, by not the final 7.8% interest payment that's originally promised. we still don't know who contributed the last minute bailout funds. while the new swiss market positive and icbc ended higher in hong kong to date, some analysts say it's just a matter of time before some major shadow banks default. ross. >> sixuan, catch you a little bit later. we'll show you where we stand with those currency markets. the dollar just bounsding off the seven-week lows, currency

trading at 102.99. euro/dollar, 1.3660. last friday, we were 1.3640, which was a three-week high. keeping our eyes on sterling, last week we hit 11.6655. business conditions coming in today, 2 1/2 year high. we keep our eyes, of course, on emerging market currencies. this one is in asia today. and the dollar doing a little better after surprise rate hikes today after the indian central bank. and we'll keep our eyes on the lira, as well. we hit that all-time low on the turkish lira overnight. we expect to see the overnight rate going up to 2.25 basis points later tonight. the kushgish rate, 2.2670 is where we assistant at the moment. real down to 2.42. the pace is a little stronger,

as well. we'll take a short break. still to come, india is taking on inflation in a surprise rate hike today. we'll have the latest from mumbai right after this.

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we've been having inflation meeting with the turkish bank governor. it's been said that the midnight meeting is because of an absence of one member. they have a meeting tonight where they're expected to raise the overnight rate by 25 basis points to 10%. that's the reason they've got that meeting so late. he says the lira pressure is putting inflation and it's raising the cpi target as a result to 6.2% from a previous 5.3%. inflation will help above the 5% target, therefore, in the short-term. this midnight meeting takes steps to ensure price stability and they will use all policy tools to convert inflation to that 5% target. they won't refrain from

implementing a permanent policy tightening. so at this meeting tonight, they may evaluate funding. and january results are supposed to exceed expectations. there we are. it's been down a fresh record lows, the lira got down to 2.39 against the u.s. dollar. it has bounced off those lows ahead of this meeting in ankora a little later. now, still on the emerging markets, central banks can focus the fed begins a two-day meeting today. ben bernanke's last as chairman before he hands over the reigns to janet yellen. the federal reserve is expected to announce it will continue to taper its bond buying program, reducing it by another 10 billion to 65 billion a month. fed watchers don't believe the central bank will change its view or comment on the recent sell-off in emerging markets. cnbc will have all coverage of that meeting on wednesday starting at 2:00 p.m. india's central bank isn't

waiting to find out what happens with the fed. the rupee, of course, has been under pressure. and as a result it's decided to raise interest rates in a surprise move to stave off inflation threats. the rbi says its inflation hike should set india's economy on a disinflation path. as long as that happens, they see no need for any more inflation hikes in the future. kopika is in mumbai with more. what's been the reaction to this rate hike? >> clearly, this is the third time the new rbi governor has taken the market by complete surprise. clearly, you can imagine how the markets would reality to that shock from the new rbi governor. as you had mentioned, the 25 basis points is lastly -- on the premise that inflation has eased or declined after the

projection. however, cpi inflation continues to be in double digits. that means there is a need to increase interest rates at this point in time because there are a lot of sticky elements even with the inflation which needs to be controlled. and be within the rbi's comfort zone. that is the reason why this is the end of tightening by this cycle. one can certainly expect no hike on monetary policy going forward. they're therefore, expecting inflation to drop by 8% by 205 and if everything goes as per expectation, the rbi believes they could turn -- going forward on growth. the rbi continues to be cautious. the government is going into significant tightening in q4.

they expect growth to be around 5% to 6% level by 2015. and that gives them the confidence to go ahead with the rate hike at this point in time. this rate hike in this quarter, chooerl a shift in stance. the tradeoff between growth and inflation is a mistake and one needs to tackle inflation if one has to bring back growth to the potential levels. so that is the kind of view coming from the rbi. clearly the market has not taken it quite as likely. back to you. >> thanks for that. profits of china's central company isn't growing by the same leaps and bounds as in the past. that is slower than the recent trend in october. recent trends are posting to a growth slowdown.

we'll have more on that in a few moments. meanwhile, it was a mixed bag for apple, which reported positive first quarter earnings last night, but left analysts with lots of negative items to pick over. josh has more from silicone valley. >> apple reports and disappoints. the company beat the street's forecast reporting eps of 14.50 on sales of 57.6 billion. apple's cfo saying that no tech company has ever generated that much revenue in a quarter. gross margins at 37.9%. also besting forecasts. so why did apple stocks sink in the after hours. a couple reasons. one, a disappointing guide for q2. apple predicting revenue between 42 and 46 billion. analysts had expected to see 46 billion. apple sold 51 million iphones, an all-time quarterly record. but again, not good enough for analysts who had thought apple would sell about 54 million

iphones. on the conference call, talking about the iphone business, apple's ceo tim cook saying business was strong in the emerging markets and in china, but in north america, business actually contracting. cook pinning at least part of that blame on carriers which changed their upgrade policies, restricting customers who were used to upgrading earlier. josh lipton, cnbc, silicone valley. >> and we'll be talking about apple a little later on in the program, as well. meanwhi meanwhile, the u.s. government has reached an agreement with internet firms regarding how often they have to turn over data. companies will have to wait six months before releasing information about data requests. and the disclosures will be in very general terms. meanwhile, google glass is about to get more stylish, but also more practical. the firm is adding prescription

frames and new detachable sunglasses. the framed will cost $225. the shades, $150. and they're only being offered now to a select group of people who are testing and creating apps for the device. google is working with vsp to subsidize the new frames. they're expected to make glasses available to the general public later this year. we'll see what happens. still to come, bank of england governor mark carney has played down the unemployment rises. gdp just changed his thinking. we'll have the latest fourth quarter figures when they come out. that will be around about seven minutes time. we'll talk more about emerging markets, as well. see you in a few moments. ok, here's the way the system works. let's say you pay your guy around 2 percent to manage your money. that's not much, you think except it's 2 percent every year. does that make a difference? search "cost of financial advisors" ouch! over time it really adds up.

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the headlines from around the globe, central banks tackle emerging markets head on. turkey has an emergency meeting tonight. european firms tough market continues. philips cites headwinds. siemens enjoys benefits of a cost cutting program.

>> i would not be overly optimistic about the environment in europe. the emerging economies are still pretty strong. there is economic growth, industrialization. >> and the ukrainian prime minister resigns as the parliament opens an extraordinary session. but u.s. and european leaders urge kiev not to declare a state of emergency. there's plenty of action from emerging markets, central banks today, india surprised with a 25 basis hike. inflation is going to be higher than we expect and there's an expectation that a meeting will raise the overnight rate by around 225 basis points. joining us with his thoughts is charles duma, chief economist at lombard street. nice to see you. what are your thoughts on -- emerging markets, they complained when the fed had

policy too loose and now there's a tiny bit of tightening, one could say it like that. >> yeah, you could say it like that. you've got the sort of argentine end of things, the situation is desperate, but not serious. and then you got the sort of intermediate group of countries who mostly are suffering from supply side snafus of one kind or another. but in either case, they managed to get themselves a thoroughly competent central bank governor which means the monetary policy holds back the flood. and then you got the underlying issue, which is that china is growing more slowly and going to grow more slowly, too, still, because of its huge debt problem and that affects those world trade in general. most obviously, commodity prices and commodity countries. >> how big is the chinese slowdown or threat? >> in the good old days, we

always used to think that the u.s. brooms and busts were the main drivers of the world economy. chinese trade is now equal in size to the u.s. in dollar terms. and u.s. trade, as we all know, is heavily concentrated in canada and mexico. so its influence on the rest of the world is muted. and so china is huge in terms of this. >> you talk about, you know, you read a management debt crisis now a massive one later. what's the answer to that? >> well, i mean, it's up to them, isn't it? if they liberalized their finances, then the money will come trotting out from the chinese savings rate at 51% of gtp, which is vastly more than they need to invest. if that happens, the yuan will go down and the economy will start to rebalance. but in the process, of course, the money will be coming out of the banking system and, therefore, provoking a need for recapitalization of all the bad loans they've been making for the last several years.

so that's the minor to major recap and crisis now. >> for the money to -- >> oh, yeah, they have. yeah. if they did that and wrote down all the bad loans the government debt would be 100% of gdp, but that's terrible. if they wait, probably they get very slow growth for a couple of years and at the end of it, much bigger banks. >> we'll pause there. we're about to get uk data out and the uk economy is growing at the fastest rate in six years in 2013. currently, fourth quarter gdp as expected up 7% quarter on quarter versus the third quarter 0.8%. that means the annual rate of growth is 2.8%. again, what we were expecting, the high since the first quart every of 2008. 2013 gdp, as a result, is at a preliminary 1.9% in 2012 with growth at 0.3%. q4 services sector output up

0.8%. industrial output up 0.7. construction 0.3%. the level of uk's gdp is still 11.3% below the peak reached in the first quarter of 2008. those numbers pretty much as expected. sterling is just weakening a little bit on the back of that. coming in as expected, they might have been priced at something potentially coming up a little bit better. we're only a basis point away from the threshold. what do you think? >> well, i don't think they're going to raise rates this year, let's put it that way. >> there are some houses who do think they are. >> yes, there are perfectly good arguments why they might.

the global argument is not particularly promising. the pound is -- it may have come down a little bit as a result of what we've just had. but i'm looking at 1.6570. that is a high level. and that represents quite a significant down flow in and of itself. the -- obviously, it's a function led growth at the moment, but with the jobs growth being vigorous, it may not necessarily be at the expense of credit and less savings than people might have feared. so for the time being, it's -- >> let's bring in melanie baker, as well, who is with us. melanie, just to remind you, as expected, fourth quarter gdp, set the annual rate 2.8% 2013 we grew in total 1.9%.

at this point, we're just talking about rebalancing the economy, as well. what's your view here? because we've got growth. growth is improving and inflation coming down. how long is that going to last? >> yeah. i think it could last a while, actually. i think another couple of antics, the inflation number yet. sterling is helping a bit. we'll have some gas cuts to come. it will be a little lower in inflation in the next few months. on the growth numbers, i think i would expect a little bit of maybe a calming down, arguably we've seen that after '08 more like a '06 pace over the next couple of quarters. >> what's your thought on the bank of england action in the future? >> i still think that the rate rise will be more of a 2015 than

a 2014 story. i mean, if there's an inflation target, it will always come down to what's the medium outlook for inflation? the point at which they start to get more about that, it's probably more a 2015 than a 2014 picture. >> so carney was suggesting last week, you know, when we start hiking rates, we're only going up to a 2% to 3% range. is that fair? >> yeah. i do think there's a likely peak in this cycle is going to be below where it would have been in a normal cycle previously. credit conditions are still tightening. spread of mortgage rates to the base rates, for example, is higher than it used to be. these kind of things will make a difference. >> okay. thanks for that, melanie baker, uk economist at morgan stanley. charles, stick around. we'll get a bit more for you on china. china's industrial companies aren't growing by the same leaps and bounds in the past. a lot slower than the 10% jump

in november. a healthy 13%. analysts say recent trends point towards a growth slowdown in the country. at the same time, rising -- more than doubling its write-off on nonperforming assets hurt by the troubled steel industry. the 160 million write-off may cut the bank's tax liability but still highlight a major risk. the loan ratio remains rising. china's big banks are exposed to more politically bending and have even higher ratios. let's go back to the point you were making a few minutes ago. >> i couldn't have said it better. you've got wages -- >> how do they -- what's the right way to manage this? >> well, i mean, the thing is that they desperately need to have a lower exchange rate. as the current exchange rate, which is, in our estimate, 30% overvalued. the only way of getting growth is to boost this capital

spending. they've got the savings rate of 51% of gdp and nowadays they're wasting their money at home instead of -- they're wasting it in america. but that's 48% investment rate. now, if you leave it to the market, that investment rate is going to plunge and the economy will go down with it because it's just too big to be ignored. and so if they wanted to, if they wanted to go to market orren tated policy, then they have to let the money flow out and let the exchange rate come right dow and soften the month in terms of profits. so their margin res squeezed, real interest rates are really high. the real inflation is on 6%. real interest rate, 8%. it's a killer. >> what about inflation? >> well, they'll have inflation, this is true, but an interest

rate of 6% when you have minus two, they're anticipating inflation, anyway. there is so much to get real, it's bound to he dedisruptive. a senior ministry official has been shot dead outside his home in cairo. it's the latest action of violence. yusef is in cairo with us once again. yusef, this latest incident, how does it play into what's going on? >> well, ross, a police general was killed in a drive by shooting early this morning outside his house. and this is yet another incident that specifically targets the country's security forces. you recall that on friday, a series of bombings targeted the country's security structures, as well. the police station specifically.

and the organization that has claimed responsibility in the past for these kinds of actions is a sinai based fundamentalist group by the name of ensar betamoxis. that may happen in the next ten hours or so. tensions are running high for another rope, as well. the trial of ousted president mow ham he had morsi is currently continuing. security forces and additional soldiers are on duty to secure the whole perimeter. there have been sporadic skirmishes. tear gas has been fired. we have to see whether that violence can be contained throughout the day. no decision is expected on the front of the trial. this will be the continuation of proceedings. ooets he's being charged with prison break among other charges, as well. there are 130 defendants that will be on trial, as well.

now, we did have the decision from the military council giving the military chief a green light to go ahead. and in all this flurry of activity, rod ross, traders feeling upbeat. the market is trading at the moment 1% to the upside. >> thanks for ta that, yusef. meanwhile, the turkish lira is continuing to recover against the dollar. amid speculation the central bank could hike rates by up to 2.25% later today. the central bank governor said he will take steps and later this evening, an emergency meeting is expected to be held. joining us on the phone, timothy ash. timothy, they have upgraded the inflation target. how permanent is that going to be? >> well, they upgraded the inflation forecast. that's quite different from the

target. so they pushed that up by 1.3%. i think the message was pretty clear. he needs to tighten. the only question is how he does it and whether it's permanent or temporary. unfortunately, the central banks have this unorthodox policy. it's confusing for the market. i think there's a real reluctance to tighten on a permanent basis. there's a political context. elections are coming up, very key elections. local elections & in july and august. so i think the market is focusing. they want an aggressive move. they want a permanent move. if it's too little, then i think the lira will trade off again. >> when he says this statement will use all policy tools to converge inflation into a 5% target, what are the other policy tools he's referring to? >> unfortunately, the market doesn't really want that. the central bank of turkey has used too many tools in the past and the policy has been far too complex to be absolutely confusing to market participants. they have a reserve option

coefficients. they have a multitude of policy rates. they have an interest rate corridor, reserve -- i mean, it's utterly confusing. i think the market just wants a plain vanilla rate hike. it wants to know exactly what the policy rate is. i think they've implied that it should be the boss istanbul rate. it went up to 9. i think the key is where that goes. if that goes up 200 basis points plus, then the market will feel a bit assured. if they do something minimal on that and they widen the interest rate corridor hike the lending rate, i think the market will be disappointed by that. >> yeah, okay. if they have the overnight rate up 25 basis points, 10%, what will the impact of that be? >> well, if it is the -- remember, be very careful what happens. you know, if it's the international rate, istanbul rate that goes up 200 basis points, plus that fine, if it's the lending rate, the market

will be disappointed. >> right. spt lira will go back down to record lows again, presumably. >> the pressure will be back on and we may end with another pajama party at midnight with the npc meeting. >> there's one member that can't make it. is that right? so they have to do it at midnight? it's extraordinary. >> yeah. the story is that one npc member is in the states and needs to return for the meeting. i think it implies that this is a key policy meeting. they understand. they had an mpc meeting last week that didn't do enough in terms of tightening. the lira got smashed and they recognize that their credibility is on the line and this is a really, really important decision. so i think they want all npc members present. you know, cabinet responsibility altogether. so i think that's really important. >> timothy, good to speak to you. thanks for that. we'll know more. this time tomorrow, timothy ash,

head of research at standard bank. the ukrainian prime minister nicola has offered to step down. he says he hopes his resignation will promote a social/political compromise. ukraine's parliament is deciding today whether laws should be repealed or not. nbc news ian williams is in kiev with more details. >> the barricades here in kiev are quiet this morning. and the action, at least initially, is political. an emergency session of parliament which is expected to scrap harsh anti-protest laws which were introduced just a week ago and were partly responsible for the flaup of violence here. catherine achuthan will be in town today. overnight, there was a telephone call from joseph biden, the u.s. vice president urging a negotiated settlement to this crisis. now, the opposition, for their

part, also being cautious today. last night, protesters withdrew from a justice ministry building they've been occupying. the government threatened to introduce a state of emergency and many fear they may still do that. but as of today, things here in kiev are quiet. all eyes are on parliament. but the situation remains extremely tense and volatile. ian williams, nbc news, kiev. >> we'll have more on what's going on in the ukraine. also still to come, what contribution can industry make to the competitiveness? after the break, we'll be back in brussels where julia is putting a key industry record in just a few moments.

european equities just bouncing back this morning. 130 points on tuesday's session. here we are up -- sorry, on monday's session. here we are up on tuesday. ftse 100 up 0.3%. xetra dax up 0.6%. cac 40 up 0..% and the ftse mib up 0.8%. treasury yields, 2.78% after hit

ago two-month low of 2.70. gilt yields, 2.81%. gdp we had out this morning as expected in the uk, fourth quarter gdp, 0.7%. the annual rate 2.8%. growth as a whole for 2013 came in at 1.9%. that is the 0.3% we saw in 2012. the economy still 1.3% below the peak that we hit in 2007. this is also the fastest growth we've seen since 2007. sterling just dipped down a little bit because that number came in as expected. there might have been a little bit of hope that it would be slightly stronger. it wasn't. 11.658.6585. we're not too high from the high we hit at the end of the last week. meanwhile, we've been looking at the emerging market disruption and we want to know what you

predict. can these economies survive tapering out of the united states? let us know. join the conversation. e-mail us, worldwide@cnbc.com, tweet @cnbcwex or direct to me @rosswestgate. shares in european apple suppliers arm holdings are falling adais pointing numbers in apple. in tokyo, supply shares were similar. we have more from tokyo. >> hi, ross. that's right. one of the major losers was tdk, falling 5.2%. the cell phone parts segment has been falling for this fiscal year. other partsmakers suffered, as well. sharp is also down 3.4%. but the componentmakers managed to keep their share prices only slightly to the downside.

many japanese suppliers have been marketing to others in china to offset risks. some analysts say they can stay competitor in the weaker yen. ross, back to you. >> thanks for that, sachiko. japan earnings season is in full swing with results due for names like canon, mitts so he suey financial group. and in india, icici, bharti airtel. in hong kong, hk electric investment debuts. business confidence, meanwhile, is on the rise in germany. it's hit the highest level since mid 2011. jules is at the conference in

brussels. confidence is good, jules. >> absolutely. and that is one of the crucial issues that's being addressed here at business europe. what needs to be done by european policymakers to address one of those critical issues as far as german business is concerned is the price of electricity. now i'm joined by the director general of the bdi, the industry body in germany, mr. marcus kerva. thank you so much for joining us. ross was just mentioning there the electricity prices and the impact that's having on businesses. is that the crucial issue for germany here attending this conference? >> well, at this conference, it's one of two crucial issues. the first one being, yes, electricity prices are an increasing worry for all of us in europe. and the second one is the low investment rate that we have in europe. if we can tackle those two things, get the electricity prices under control, and bring

new investment into the economic equation, then i think we can be a lot more -- in the months to come. >> okay. we understand that the electricity situation, the energy situation is trying to be addressed by european policymakers. but what can be done both by european policymakeres and by germany itself to boost investment? >> well, to start with germany, the funny thing is if you solve the electricity problem, then the investment will come in because the electricity riddles industrial people not knowing where the price of electricity will go in the next 12 to 16 or 20 months is the biggest obstacle for them to do any investment. so what needs to be done is we need to find a solution for combining renewable energies, which are relatively expensive in being fostered together with the sources that we have in germany and find the solution with the french, with the dutch, with the polish and the danish

neighbors. if we combine our networks and production facilities, i think we can get the cost of electricity down further. >> another challenge of what's going on, the volatility that we're seeing there, germany over the last couple of years has tried to focus exports on emerging markets. >> well, it may be surprising, but it's less of a concern than anything thinks. if we look at the growth figure of last year, we look at the one we expect to have in the currency in germany which is 2%, the surprising feature is it's not export driven. it's driven by domestic consumption. if we have more domestic investment, then we might have a higher degree of domestic demand and less dependency on what we have in exports.

and i really, really worry that we overlook the fact that it's dropped too sudden in some of the emerging countries might cause huge political problems. hence the situation in germany and other political markets. we need to balance our economic growth around the world and i hope that the new g-20 initiative by australia will help a little bit. >> so what about monetary policy here? some of the jitters you must put down to restrakz of liquidity in the u.s. in particular. that is not something other countries can control. >> yes. i know a lot of people are worried about the tempering that we see in the united states. but that is not the root cause. i think what has happened in some of the emerging countries is exactly what we had in the run up to the euro crisis which is a monetary driven overinvestment in some very unproductive areas of the economy and now the political

deregulatory forces in labor markets, in investment markets, in these countries, i.e. domestic policy initiatives are lagging behind. so if the money is coming back, they will only expose them for having done nothing. >> talk about the 2015, there's been reports suggesting up to two-thirds of people that could be eligible in terms of the money that they receive aren't actually going to qualify. what's going to be the impact on businesses overall? >> overall, i think we will have a relatively, relatively low impact if and ohm if we can stick to the 850 and if we realize that some regional problems, i.e. eastern germany and some rural areas might not benefit from a minimum wage as much as we think. overall, in an industrial country like germany where our

minimum tariff wages are way up 850, it's less of a problem than people think. if we're not careful with some of the french groups, i.e., relatively underdeveloped areas in eastern germany, then we might have a problem, but less than we think. energy and investment is a far bigger problem. >> markus, thank you for speaking to me. again, investment is the key there. >> thanks, jules. nice to be inside, isn't it? >> it really is. although i still vice president warmed up from davos last week. i'm still freezing. >> thawing out. that's the way to do it. >> thank you. >> we have some comments coming out from george osborne post that uk gdp number. he says the fourth quarter gdp shows the recovery is broadly based. the greatest risk group abandon the economic plan. up 0.7%.

and we've got some comments coming out from the egyptian finance minister. it will announce details of a second stimulus package within days acourting to the finance minister. egyptian dollar/pound fairley steady. if you have any thoughts or comments, e-mail us, worldwide@cnbc.com is the address. we're going to take a short break. still to come, will the fed emerge from its meeting with any -- to ease market jitters, particularly emerging market jitters? we'll be over to new york to find out if the 10 billion a month tapering will continue. the second hour of "worldwide exchange" coming up right after this.

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welcome to "worldwide exchange." i'm ross westgate. central banks tacking emerging markets head on. turkey has an emergency meeting tonight to reveal another upward shift in rates. philips cites currency headwinds. siemens confirmed full year targets, but it's thanks to an aggressive cost cutting program. >> i would not be overly

optimistic about the emerging el pretty strong. economic growth, investigation. >> the ukrainian prime minister resigns. kiev is not to declare a state of emergency. and apple loses its shine. first quarter results top forecasts. but iphone sales and the company's second quarter outlook are far short of what was expected. >> you're watching "worldwide exchange," bringing you business news from around the globe. and a warm welcome to you. not the best session for european equities. six-week lows with that, in fact, five-day losing streak for the dow since april 2012. this morning, things look

slightly better if you're long in the markets in terms of futures. right now, the dow futures around about are nearly 100 points above fair value. three-day losing streak since june 2012. and the s&p is around 9.5 points above fair value. european equities have been ticking higher during the course of the day. the cnbc global 300 was rel itchly flat. but here in europe, the ftse 100 is up 0.4%. it's up from 20 paints yesterday down 11 13 points. bond markets, yields just bouncing off the lows. ten-year treasury prices have sold off. yield is up to 2.77%. remember, we were down at a two-month low. 2.706% during the overnight session on monday.

bund yields are higher. gilt yields just a nudge higher. 2.81%. quarter on quarter growth, 0.7%. the annual rate, 2.8%. and 2013 as a whole came in at 1.9%. it was 0.3% in 2012. but the economy is still 11.3% below the peak that we hit in 2007. so still a smaller company than we had six years on from the start of financial crisis. dollar/yen off the seven-week lows that we hit yesterday. the aussie -- dollar has bounced off it. australia, the best in 2 1/2 years. sterli sterling, 0.8796. euro/dollar, 1.3649. that's where we stan right now in europe. let's recap that asian session.

sixuan joins us out of singapore. sixuan. >> thank you, ross. it's a mixed day in asia. many markets stabilized after yesterday's sell-off. chinese investors avoided -- ahead of a week long lunar holiday. over in hong kong, the hang seng index ended lower by just a tad, but china's soy sauce and cooking winemaker huang world jumped by about 15% in its ipo. in japan, the nikkei 225 lost a modest 0.2% ahead of the fomc meeting. meanwhile, australia, some sell-off across the board. the asx 200 dipped to a 1 1/2 month low, ending lower by 1.3%. and the sensex ending lower by just a tad after the rbi's surprising rate hikes. the reason apple suppliers took a beating today after missing

wall street's target for iphone sales after the holiday shopping season and offered a disappointing forecast in some of the -- over 5% in today's trade. ross, that's a look out of asian markets. back to you. >> thanks for that, sixuan. let's remind you where we stand with emerging market currencies today. we'll kick off in asia. the dollar is lower across the board against the korean juan ahead of the philippines pace. the rupee is one that had the biggest move. that's because the indian central bank surprised by hiking rates by 0.25% basis points. the turkish lira just bouncing off the all-time low of around 239. that's what we hit yesterday. currently at 2.26. it's widely expecting turkey will raise rates tonight. they said the inflation outlook is going to be higher than we thought. so they've got a meeting.

10:00 london time. i think there's a member of the central bank who is going to fly back from the states. that's why it's a pajama meeting, if you want to put it like that. and the brazilal real, we hit 2.42 in august and we're at that point at the moment. now, peak concerns to these emerging markets is what the fed will do on wednesday. it's likely to continue to taper its bond buying program. everybody expects it to reduce by another 10 billion. fed watchers don't believe it will comment. cnbc will have full coverage of that decision on wednesday. it starts at 2:00 p.m. eastern on street signs. so what are these emerging market people to do? steven, nice to see you. if you're in ee merchlgling markets, you don't like it when

the fed is pumping in liquidity. you don't like it when they're withdrawing it. too much of an excuse, is it? >> well, i think you say you don't like it when they're pumping it in, but the reality is it's a little better when they're doing the pumping than when they're doing the withdrawing. i think it's even scary when last week in davos, the bank of japan found they were pretty happy with what they were doing and have no intention of augmenting their stimulus. some of the comments, you're sort of looking at a bunch of g5 central banks, all of them going in the wrong direction from your perspective. >> what are you supposed to do to counter it? >> well, self you can. liquidity is terrible, so most people can't get out. i think many investors and, you know, i would admit myself the kind of volatility that we're seeing was completely unexpected at the beginning of the year. there is this deep fear that i

keep encountering that basically the fed will have to back away from its forward guidance at the end of the day that there's not as much excess capacity, there's not as much slack in the labor market and that the fed tightening will come sooner than they're saying. and that is cascading back into asset markets. they'll have ko to convince markets that they'll have to stay the course. >> if you get a meaningful correction, a 10% correction in equity markets, a lot of volatility around the globe, i mean, of itself, would that be enough to make -- how would the fed react to that? >> well, i think it's enough to make the fed comment. i don't think it's enough to make the fed act. they will put some sort of indication that they're watching what's happening in global asset markets to make sure it doesn't derail the u.s. recovery. but the fed is very careful to say that they don't make monetary policy for turkey or

brazil. and they won't go anywhere near that. but saying that they're concerned about asset volatility, i think they could slip in a sentence or two. >> backing up u.s. rates, but of course what's happened is that fear meant that money market rates have fallen and bonds have cleared outperformed equities at the beginning of the year. there was a -- clearly investors on the whole were position wrongly. >> well, there was a dynamic that what is happening is that once the fear of tightening becomes intenz, equity markets pull back and they drag down the bond market with it. what you were seeing earlier in the bonds before the turmoil emerged is that money market yields, say, in 2016 and 2017 were beginning to back up sharply. so the market was kind of hedging its bet and saying maybe they'll keep the forward -- keep the path suggested by the forward guidance. but once they start hiking, it's

going to come fast and furious. and ultimately, that worried the market because there's a lot that's dependent on low rates and accountability. >> presumably, the fed will go out of its way to reassure that tapering is tightening. and carney tried to say the other day, even if rates move when they do, they're not going very far. in that's true. but after he had said something that suggested maybe there was room rates for rates to back up, you know, i think one fear, if you're at the fed, you probably wouldn't mind the equity market being flat for a while and long rates coming down and helping the mortgage market. so i think, you know, the fed really wants equities to do anything like they did last year as opposed to having a more

stable asset market on the equity side, i think the fed would actually prefer that. >> steven, good to see you, as always. thanks for joining us this morning, steven englander joining us with g-10 fx strategy. december durable goods are out at 8:30 eastern. at 9:00, we get the november case-shiller s&p home price index. at 10:00 a.m., consumer confidence. and comcast, the parent of cnbc reports earnings before the open. we get figures today from the likes of dupont, ford, pfizer, and american airlines. and later tonight, president obama gives his annual state of the union address. he's expected to high lie the issue of income equality. the president will promote his health care law four years after its rocky launch and urge

congress to approve free trade deal with pacific rim partners. ahead of his speech, the latest poll shows 51% of americans disapprove of the president's job performance. and you can catch the state of the union here on cnbc tonight from 9:00 p.m. eastern. still to come, robust results from siemens. we'll get more of the full picture right after this break. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection.

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italy raised 2.5% in december. but the yield here, 1.031% is a new euro era low for two-year funding costs. so if you want to know where we stand with the eurozone crisis, there we go. italy, right now, has got fresh euro all-time euro era lows for two-year money. that as ireland is trading below the uk and the u.s., as well. meanwhile, a recap of the headlines today, emerging markets in focus. central banks takes markets into their own hands speaking out the raising rates. philips reports solid earnings.

and apple supplies see a bite taken out of their share pries as the iphonemaker's earnings face to impress. and more on that now, apple's third quarter earnings revenue topped analyst forecasts, sold a record 51 million iphones during the holiday quarter after launching the 5s models in september. sales were down in north america. allel is now forecasting revenue at 42 to 44 billion in the second quarter. the first deal with china mobile. but analysts had been expecting 46 billion and that raised concerns about the chinese demand and a weak global market. as a result of that, apple is down 8% in after hours. it's currently off 6% in frankfurt. we'll talk more about this, coming up. elsewhere, the stocks we're looking at here in europe, fourth quarter revenue rose 4.6%. the tigz giant said its european

advertising giant showed positive signs in the second half of the year. swede bank down 3%, weighed down by write-downs in its portfolio in real estate. software argea is up. but the company said it's planning further takeovers in the year ahead. philips up 1.5%. it's warning of a tough year ahead. sd microis up 0.7%. it had worse than expected fourth quarter revenue and an operating loss of $111 billion. siemens is up 0.5%. the new ceo has been telling us that he was satisfied with the progress as it worked to cut

costs. the company has been warning that negative currency hits had a major impact on quarterly new orders. what have you feel about it in frankfurt, whether the stock trades, annette has the answers for us. the analysts have had a bit of time to dig into siemens now. what are they saying? >> they're saying it's pretty much in line with what they had expected and also that the cautious tone they're striking is something which they already know from siemens. so we have a cautious outlook despite the fact that it looks as though mr. kaiser is managing the turn around of the company looking at net profits beating expectations. also, he's saying that he's extremely cautious on cost product aum all over the company. so what he does, he looks at all different units and looks at how profitable they are. they are identifying areas to deinvest. so it's a good sign also that new orders came in better than

expected. of course, seemen sess very much depending on infrastructure spending worldwide. those infrastructure spendings are the highest in the emerging markets. and that is why we were asking him earlier on during a first on interview with "squawk box" here of how he is take or what he is thinking about the emerging markets situation right now. take a listen. >> i would not be overly concerned as i would not be overly optimistic about the is european environment in europe, the emerging economies are still pretty strong. there is economic growth as industrialization, the world needs energy as well as health care. so i'm satisfied with the development of emerging economies over the china takes a bit longer that we have all wished for. but then between, output is about 8% and gdp could be up as

much as 8.5%. so we are patient. we have the market in focus. and we would not be too surprised if you see the uptick anytime soon. >> so ever since kaiser took the position as ceo of siemens, the shares rallied roughly 17% as well outperforming the general market. so a lot will depend when it comes to the share price development how he is actually doing in 2014, whether he can stick to his profitability goals for 2014 and really turn around the big giants, seemen hes. with that, ross, back to you. >> thanks, annette. good to see you. that's the latest out of frankfurt. still to come, as ukraine's prime minister resigns, could the crisis spread to other central emerging eastern european nations, including the economy of poland? julia will join us for the

polish confederation of private employers. see you in a few moments.

poll left-hand has had nearly two decades of

uninterrupted growth. but could the current prices in the ukraine affect that country's performance? jules has been talking to the polish federation of private employers. jules. >> thanks very much. i will add to my guests, henrica. can i ask you about the ukraine and sentiment in the region? how much of a concern is it for polish people and polish businesses? >> i think this is the problem that we are watching very carefully, not just watching, we are not just observing. because for us, our -- of the ukraine from every aspect. they used to be very close and are still very close. poland was the first country to recognize ukraine and from the beginning of our -- with the eu and then becoming a member it was always high on our agenda to make ukraine, you know, close to

europe. that's why in combination now it's -- i mean, we are afraid. we are watching. it was very painful and the fact that finally looks like their president is trying to find a way to compromise with the opposition, i think this is the only right thing to do. and whatever it can be done on the polish side, first to make europe maybe better understand and then helped to reach this compromise. it's important, not just for poland, important for europe. >> i also want to talk to you about what we're seeing in other emerging markets. how much of a concern is it for poland from an emerging nation as part of the eu? how does that impact business sentiment in your country?

>> we had such strong economy now. it's not accidental that we used to be a green island because the consideration of this term. you know, we predict for this year, i assume about 50% of gdp growth. for the next year, more. and you see that there's huge potential in this country. so i think that if anybody is looking at the investment opportunities, they can see that this is big country, big size of the market and with wonderful, well educated people and it seems to me that, you know, in poland should be under others and we are right now in europe for the outsourcing numbers, number one, right? we are competing with india. and it seems to me that people, they say this is very predictable. in well developing economies. so we would like to be emerging markets because, again, it means

that there's something ahead of us and now our independence are proving they're all looking ahead. >> your wage costs are a third, i've read, of germany's right now. some would say the fact that you weren't in the euro has helped your economy progress. but there's been a lot of reform and changes at the business level, hasn't it, during the financial crisis. what can other european count countries learn from what poland has done and achieved? >> i think this is a very good question. i would love other countries to look at our example and, you know, answer the question why we are doing so well from for so many years. and it seems to me that the fact we didn't have the ur euro, this is a short time. for the business community, becoming a member of the eurozone is still very early goal. we want to be a part of the upper row zone. we don't want to be, you know, somebody which is sitting, you

know, just watching. we want to be a major player. second, i mean, the fact which to me is the most important is the familiar spirit. i don't know how it happened that after so many years of the system, you know, people, they went on their own and they decided to establish their businesses and they don't have conflicts, you know? it's wonderful. so that's something that european countries, other european countries can learn from. henryka of the polish confederation of businesses. ross, back to you. >> good stuff, jules. thanks for that. still to come on the show, yahoo! reports fourth quarter earnings as pressure continues to mount on the ceo. we'll place a spotlight on marissa mayor's leadership. six-week lows for the dow and the s&p. right now, the s&p is called heighter by 8 points.

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welcome to "worldwide exchange." i'm ross westgate. the headlines today from around the globe, central banks tackle emerging market fears head on. india's rbi announcement of rate

hikes surprises. tightening out of turkey's emergency meeting later tonight. the ukrainian prime minister resigns as the parliament opens an extraordinary session. the u.s. and european leaders urging kiev not to declare a state of emergency. and apple loses its shine. first quarter results topped forecasts, but iphone sales and the company's second quarter outlook fall short of what analysts were hoping for. plus, the president gets his annual state of the union address tonight. it's expected to highlight income inequality. >> you're watching "worldwide exchange." bringing you business news from around the globe. u.s. stocks finishing down six-week lows on monday. the dow down 41 points. the s&p down 8. the worst three-day losing

streak since june 2012. right now, futures indicate we have a bounce going on this morning. the s&p is currently up 9 points above fair value. the nasdaq is still below fair value to the tune of around about 6 points and the dow at the moment is showing we are just over 100 points above fair value. the cnbc ftse global 300 doesn't yet exhibit u.s. prices. it's just up 2 points. a bit of a weaker session in asia. but the european equities are responding along with those u.s. futures. we're off about 0.3% for the ftse 100. a little earlier today, fourth quarter gdp came in as expected. quarter on quarter growth up 4.7%. the annual rate of growth, 2.8%. the economy is still 1.2% smaller than it was back in 2007. the xetra dax is up 0.75% along with the cac 40 and the ftse mib up around 0.8%. that's where we stand right now ahead of the u.s. open. the fed starts its two-day

meeting again today with its emerging market sell-off. here is a few of the thoughts we've had on the channel today. >> clearly, in reaction to the emerging chaos, people were covering their longs in the dollar, selling them and going long the euro. so we've seen the dollar not really in the last few days having any safe havens. but once that washes out, the dollar should be the safe haven. >> be careful about how yield because the relationship with emerging markets is quite a close one. and the liquidity issues for high yield investors are really quite acute. so we're seeing some sort of turn within the environment in emerging markets or indeed in moving yields in the high yield space. then i think you will be aware high yields investors in the premiums in that.

>> overtly, china takes a bit longer than we have all wished for. but then again, output is about 8% and gdp could be up as much as 8.5%. so we are patient. we have the market in focus. and we will not be too surprised if you see an uptick in china's economy. >> stay tuned to "worldwide exchange." we'll hear from the country's finance minister about the state of the nation's economy. that's coming up in around about 20 minutes time. now, there is a mixed bag for apple. a reported positive first quarter earnings last night. josh lipton has more from silicone valley. >> apple reports and disappointeds. the company beat the streets

forecast on sales of 57.6 billion. apple's cfo is saying that no tech company has ever generated that much revenue in a quarter. growth margins at 37.9%. also besting forecasts. why did apple stocks sink in the after hours? a couple reasons. one, a disappointing guide for q2. apple predicting revenue up between 42 .46 billion. analysts expected to see 46 billion. apple sold 51 million iphones, an all-time quarterly record. but again, not good enough for analysts who thought apple would sell about 54 million iphones. on the conference call, talking about the iphone business, apple's ceo tim cook saying business was strong in the emerging markets and in china, but in north america, business actually contracting. cook pinning at least part of that blame on carriers which changed their upgrade policies, restricting customers who were used to upgrading earlier. josh lipton, cnbc, silicone

valley. >> that's the outlook on apple. joining us from new york is darren. darren, is the reaction after hours overdone or justified? >> that's a good question. the numbers are certainly disappointing. the north american decline in iphone sales is something to be worried about in the longer term. but, you know, this is a company that generated $12 billion in new cash for the year. $22 billion in new cash flow. i still think the company is performing quite well, given some of the head wins they've had in terms of some of the carier upgrade issues, the inventory issues and overseas some of the stronger dollar issues, as well. >> on the iphone 5, presumably get their heads around. are they losing market share?

and is competition growing, particularly in asia? >> there is no doubt. the cheaper phones, in particular. android and samsung are doing quite well. so they would have to continue to innovate in the space and continue to create new and exciting products that people want. no, there's no question the market share is falling overseas, but this is a company that has done so long for so well, that's to be expected. they're going to continue to have to find new ways to come up with nur price points. they tried that in the quarter with ic. it didn't do nearly as well as they had hoped for. so i'm not 100% sure what the answer is. but, again, you've got to kind of look at the bigger picture here. the company sold over 51 million phones for the quarter.

under expectations, but still a record for them. >> very briefly, the last one on apple, should they generate some assignment by increasing the stock buyback program model or not? >> i think so. i mean, i don't think there's any reason why they shouldn't. they've obviously increased that number significantly. thanks in my view to some of the pressure they're feeling from outside investors. but they have so much cash on the balance sheet, over i think $150 billion worth of cash. there's really little reason that the stock trading at pretty much less than ten times this year's expected earnings that they shouldn't continue to invest in their own stock and, really, reduce the shares outstanding even further. >> all right. just pause there. that is apple. let's talk about yahoo!. pressure mounting on ceo marissa mayer on earnings which comes after the bell. as a cnbc panel last weekend,

marissa mayer explains the firm's strategy. >> for us, 2013 was the year of investment. we made more than two dozen acquisitions. they were all small acquisitions and in most cases with the exception of tumbler and so that the value for us is, you know, two dozen or more entrepreneurs who are bringing new ideas, fresh technology to the problems that we work on each day. and so that was 2013. i can't really comment on 2014 because my earnings will be released on tuesday, as well. >> dan, what's going on with the core business? clearly, trends are declining. i mean, first of all, are you approving of this move to make yahoo! a content business? >> i am. i think the strategy is the right one, moving more to mobile and more towards media and they certainly have begun through acquisitions and through some strategic hires to pursue that

strategy more aggressively. i do, however, wonder about some of marissa's most recent moves, for instance, the hiring of katie couric. is that really the best use of capital? i would rather see some success in furthering their strategy and moving more aggressively and then spending the money on talent. katie couric didn't do much for the network news business in the u.s. despite a lot of hoopla. and i don't think she's going to do much for yahoo! as well. and that is just one example. certainly you mentioned the ceo leaving the company, one of the more disastrous hires in u.s. corporate history. so there are things she's doing which i fully endorse.

the success of alibaba has given her some time and a longer than usual honeymoon period. but i think this year is going to be very important for them to continue to show that they can increase that core business. >> yeah. don't use anchors too much. we're referees. look, clearly, there's a lot in the price because of alibaba, right? and we've got an ipo, we might get investment in yahoo! japan, as well. so how do you strip that oshg and work out the valuatiovaluat? >> it was tough. alibaba, that's the most important number you'll see tonight. last quarter, 61% year over year. but that was down from 71%. and so that is the key number for investors to worry about this quarter. clearly, the value within alibaba and with yahoo! japan makes well over 60%, 70% of the

value within yahoo! total. so the core business right now is trading probably only at four times ebi dey this year and that is well under most of their peers. even though you have low growth, maybe no growth, those kind of multiples i think are very attractive for investors. but, again, a lot of expectations are being based into the success of alibaba. >> darren, thanks for that. we'll take a short break. still to come, the next few hours spending the final touches on his annual state of the union address. what major themes and policy initiatives will be highlight? we'll look at what's on the president's agenda. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.

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ee mentaling market central banks take markets into their own hands, speaking out and raising rates. last year, it was immigration, guns and the environment. the u.s. will find out what's on president obama's agenda tonight in his sixth state of the union address. and apple's suppliers see a bite taken out of their earnings share prices as apple fails to

impress.

president obama will deliver his state of the union address this evening to a joint session of congress, a practice that dates all the way back to george washington in 1790. but the president will take the podium with his public approval ratings at some of the lowest levels for his term in office. hi, morgan. what's on the agenda tonight? >> hi, yes. president obama gives his annual state of the union address tonight at 9:00 p.m. eastern time. he's expected to highlight the issue of income inequality calling for, again, a boost in the u.s. minimum wage and creating jobs for those at the lowest rungs of the economic in some areas. he could announce executive action that's don't require their approval. president obama will also promote his health care law four months after its rocky launch and urge lawmakers to approve

free trade deals with pacific rim partners. ahead of the latest nbc/"wall street journal" poll shows 51% of americans disapprove of president obama's performance. nearly 60% are concerned about what the president will do in the rest of his term. but after half of the public support -- about half the public support some of the program and policy moves the president will outline tonight. about three quarters say the government should play a role in reducing income inequality. as for their wallets, the poll finds 61% of people are satisfied with their own financial situation but 71% are somewhat dissatisfied with the broader u.s. economy. many believe the president should make reducing the budget deficit a top priority. but that's an issue he's been down playing in recent months. congress continues to suffer from approval ratings than president obama. more americans want to see capitol hill controlled by

democrats, then republicans after the midterm elections. but just a slim 45% to 43% merge. there are always special several guests in the house chambers during the state of the union. among the people sitting with michelle obama tonight, mary barra, gm's new ceo. you can catch full coverage of the state of the union here on cnbc. it will be anchored by carl quintanilla and kelly evans tonight at 9:00 p.m. eastern. back to you. >> thanks very much, indeed, for that. good to see you. now, keep our eyes on emerging markets. the turkish lira is just bouncing off its record low. 2.39 against the u.s. dollar yesterday. colonelly at 2.26. the strlt bank came out and said inflation is going to be higher than we expected. they're going to have a meeting

midnight tonight. it's predicted policymakers will raise rates by 2/225 basis points to 10%. now, the argentine peso is unchanged. supporting its currency this week after loosening currency controls on friday. that was a move to help flock broader emerging market sell-off. the cup's finance minister said louisa that it's still strong. >> you don't have a large current account deficit. the debt is low. our banks are quite strong. we have much stronger banks in

mexico. and i think the market acknowledges that. >> now, the emerging market sell-off fuels speculation of whether the fed will change course and hold back on further tomorrow. looks like we'll get a reversal of the dollar. the nasdaq is still around 6 points below fair value. a senior market analyst at trading advantage and joins us now. allen, a bit of a bounce today. what will you make of it? >> well, it's important that we're looking at things in percentages. not so much at the dow. but i am somewhat encouraged by

the market. up 0.5% here this morning. for me and the big picture, we've been looking and talking about the market needing a bit of a pullback. we had a 12% move from october 9 lows up to 1850 which is a january 15th high. right now, we're approaching that 5%, that halfway retracement. but i am somewhat encouraged that things didn't get that much worse. we did sell off at the close yesterday. >> that's significant, isn't it? selling in at the close. >> right. it did feel a little bit heavy that people were very worried about the apple earnings. it had a major impact of the nasdaq futures yesterday afternoon. we were down about 35. now we're down 8 points in the nasdaq future. so things have come back. bonds did not make new highs. we used to look at that before

they invested the vix contract. and there wasn't emergency buying yesterday in bonds. bonds did not make new highs versus last week. that was an encouraging sign. that's usually what you like to see before the market turns and hits the bottom. >> that must be what everybody else thinks. >> right. and that is what the market is telling us. we've talked about this before. i think you're going to bring up turkey. but i don't think the market cares. i think these are just issues that people focus on, obviously. we want everyone to succeed and the central banks to figure things out. but i don't think the market cares and the price action is telling me it's not that big of an issue. the focus here has to be on

earnings. a quarter of the s&p earnings come out this week. and we're right in line about what we've done in the last quarter. but the best number is the revenue. revenues are better than they have been at 10% versus 8% so the last since measure. >> allen, have a great day. we have news ow of the ukraine. the parliament has voted in favor of repuning all the anti-protest laws which triggered that unrest that we've seen over the last week or so. we'll take a conclusion to the program, president obama gives his annual state of the union address tonight at 8:00 p.m. eastern. catch that on cnbc. otherwise, coming up next, "squawk box" and the countdown to the opening of markets stateside. whatever happens, have a profitable day. good-bye for now. to manage your money. that's not much, you think except it's 2 percent every year. does that make a difference? search "cost of financial advisors" ouch!

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good morning and welcome to "squawk box." futures are higher this morning, but they were higher yesterday morning. so far, it's the worst five-day losing streak since 2012. apple shares slide late yesterday as iphone sales -- that was the problem -- missed expectations. 51 million. it was lower than people thought. that was what was sold last quarter. analysts are worried about a weaker forecast. go over there and do your lines. and it's tuesday, january 28th, 2014 and "squawk box" begins right now.

good morning, everybody. welcome to southbound. i'm becky quick along with joe kernen and andrew ross sorkin. we have an exclusive interview with lee cooperman. our guest host today is former citigroup chairman dick parsons. mark mobius and thomas per easy, those two will be joining us during the 8:00 a.m. hour. this morning, we start with the markets. the dow closing at six-week lows. futures at this hour are indicated higher. dow futures up by about 100 points. the s&p futures are up by just over 9. yesterday, it looks like things were starting out strong. they gave that back by tend of the session. this is a pretty momentous