welcome to "worldwide exchange." i'm karen cho. these are your headlines from around the world. markets fail to get a boost from wall street. most asian markets are closed today for the lunar new year holiday. luxury stocks pushed higher. lgmh the strongest performer in europe after post ago jump in sales. and forecasting stronger demand in china after stocks in the sector follow suit. amazon stock has clamd up as earnings near.

there's strong ad revenue. and bye-bye bernanke, the fed chairman checks in for his last fed work as his tenure comes to an end. janet yellen will be sworn in on monday. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> we saw plenty coming up on today's show. consumer goods lexolux misses demand in the fourth quarter. we're going to be speaking to the ceo first on cnbc in about an hour's time. meantime, amazon disappoint onned with earnings. we asked the online retailer if it can turn around. meantime, more evidence of japan moving away from

deflation. we're speak abe-nomics in around 30 minutes. and sports fans are gearing up to super bowl sunday this weekend. and the game is being held this weekend in an open air stadium in a very cold weather centre. we hear from one football player and see how he thinks players and fans will cope. this is how markets are shaping up. there's been quite a bit of selling on the market today. the cac has been trying to push into positive territory. but across the board, it is a broad space of red as the selling continues to accelerate. down 0.1% for the uk, 0.6% for the xetra dax. this picture is worsening as we progress into the session. some of the big luxury names are

giving the french market a bit of a boost. elsewhere, the ftse may be in negative territory in italy. in foreign exchange markets, this is how we're shaping up. incesters look at this trade and whether wonder they will be forced to take action. the euro is tripping up a little bit. welcome to gain some traction to that particular trade after stronger cpi figures and numbers today. the aussie trying to balance off some of the lows early on in the session. don't forget, volumes in the asian session are somewhat impacted by liquidity because some markets are shed for the lunar holiday. the poun is suffering today and peeling back from the 1.65 mark. in bond markets, this is how we're looking in what is

considered to be a safe haven today. u.s. treasuries, 2.68% on the yield. bund, a little below 1.7%. 2.28% in france and 2.73% on the gilt. how are some of the world's top business leaders feeling about the investment landscape? here is their outlook. ♪ >> we wanted to just put a stake in the ground and say, okay, assuming a worst case scenario of competition, relatively soon, what will the numbers look like? that's really the clarification on the outlook for 20 is 14. it will be a strong year for novartis. >> we are ready to lend money. i don't think it's like a -- it's lack of consumption, lack of nand, so in this environment

we have to abduct that. we cannot make magic. the growth in the market to go after, you may be a case in point. after 25 years of trying to sell you a box in a dish, many more customers continue to want that as you see in today's numbers. but you see there's a whole big market of people in addition to that. we might want to -- past the day all to come in from time to time. the market is 13 million how had households in the uk that we haven't been able to access before. but we as well as other competitors will go after that market. >> joining me on set is paul blain. great to see you. it's been a fairley volatile week and looks as though we're finishing off the week with how we started across equity markets. >> the em concerns are dominating all thinking at the

moment. and the concern is what kind of contagion might we get? as soon as people start to think that the anguish we've seen in the emerging markets is going to impact here, then it's going to happen. we haven't seen the kind of eruptions that we have seen. yes, we've seen stock markets come off on sentiments, but bond markets, of course, have got their safety bids and they're much stronger. if you look at all the markets this morning, they've done exactly what we said they would not during january. we got stronger bond yields, stock markets off, em slaughter and currencies everywhere. we weren't expecting that. >> what was interesting in this back drop? the commenced on the indian

central bank governor were interesting saying look back to the crisis. when you were in a behind, we stepped in. we were supportive of the developed markets. now when we're in a bind, thanks very much, you've given us policies, monetary policies. does he have a point? is it time for coordinating monetary policies? >> there still needs to be coordination of monetary policy, but i do think these comments about slowing the taper have an element of red herring about them. yes, emerging markets could do with support. but as i said earlier, it's not facts that matter. it's sentiment. and the reason merging markets are selling off are because of the same kind of concerns that we saw impact the banks in 2007 as the asset bubble started to burst there. the same concerns that we saw hit sovereign europe in 2009 when the sovereign crisis started. and it's the same thing that's now hitting the emerging markets. we're looking at the economies

and saying, well, what have you done during these years of easing money? not much in some cases. >> here, quantitative easing and policy is by the fed seem to step into the problems and at least you get to a former stabilization to stop the contagion. they lifted interest rates this week and haven't seemed to stem the tide. >> well, what we are going to see this year is a whole series of elections which will change some of the governments. that will give countries breathing space to make the needed reforms. i think what concerns me most at the moment is maybe we're looking in the wrong direction. what's going on in emerging markets is what's going on and to some extent was predictable. but are we missing the fact that we have got global growth now in the u.s., the uk, perhaps in japan there are clearly problems in china. but with that global growth, are we worrying about the wrong

thing? we've got a market that has gone very risk adverse this week and set itself up for a continuation of the taper where rates remain low. but if we start to see economic growth and rates could go higher, that will have major knock on effects that make the ones we've seen so far look small in comparison. >> is there a real risk of rates rising and you look at the economic growth of more than 3%, is there a chance there will be a ripple effect, as you put it? >>. >> they rise when bond market yields go up and that's what people expect. not what the central banks tell us. >> what's we're seeing all the toxic bad stuff. happy new year.

one of the prospects or the elements are on chinese new years, you clean out all the bad stuff so you can start the new year fresh. meantime, they're on their way to ring in the year of the wooden horse. now the chinese new year, which kicks off tonight, is considered to be the most important date in the lunar calendar. markets in china, hong kong, singapore, malaysia, korea, taiwan are all closed for the holidays. very little open across the asian markets today. we're going to go for a break, but still to come, we'll get the latest numbers from bank of popular and bpva. we'll be right back after this.

there's a fair amount of earnings action to show you today. bp shares are up for the first time since 2009 driven by constant need for broadband. the british television provider said it jumped from 2% to 4.6 billion pounds. meantime, a bigger move south by electrolux down 4.4%.

this is despite the firm raising its european outlook and saying it expects growth to grow slightly this year. the swedish home appliancemaker reported a bigger than expected fall in its fourth quarter earnings which came in at 1.22 billion pounds. the elect row lux ceo joins us on the line to talk about oh beganic growth and the new products they'll be going after. in spain, banco popular has reported a loss the previous year. bbva posted a smaller than expected loss of 849 million euros and you can see a very different fortunes on the stock markets for these companies today. stephane, we've seen a whole bunch of different earnings out this week. what is it telling us, are we seeing any improvement in the forchs of these companies?

>> you have to dig a little bit to know what is really behind these numbers. if you look at bbva, for instance, the bank posted a loss in the fourth quarter, but that was expected. it's due to an exceptional item. on the full year, the bank beat expectations with net profits of $2.2 billion euros. and if you look at something which is a key metric, the net interest income, the difference between how much the bank charges for loans and how much it pays for improvement, there is a significant improvement, up 6% in the quarter for bbva. that is the reason the stock is funding well today. for bbva, it remains well below the range of the spanish banking sector. 6.8% for bbva. more than 13% for the spanish banking sector. in terms of outlook, the chairman of the bank is positive

that 2014 would improve significantly as the demand for credit is rising. both banks have announced this morning a sharp increase of the net profit. more than double and that was below expectations and that's the reason the bank is trading lower. for banco popular, the bank returned to profit after massive loss last year. net interest income for the core business of the bank was below expectations and also the bad loan ratio surge towards tend of the year 14.2% for banco popular, up 11.8% in the third quarter and that's the main reason why the stock is trading lower. >> stephane, bill blain here. these bad loan numbers that have come out of popular this morning, that used to be the top spanish bank at one stage.

and these numbers, are they going to be reflected across the rest of the spanish banking sector? and could we see further weakness, i wonder? >> well, so far, all the banks are very cautious when you talk about the outlook. in the case of banco popular, remember, two years ago, this bank -- factor and that's how the bad loan ratio increased significantly. so for most of the spanish lenders, they have to deal with all the acquisition that they were forced to make over the last couple of years. and that is the reason why they now have a bad loan ratio of both the average, which is 13.02% for the spanish banking sector as a whole. but, really, what we have to remember from that earnings season in spain is that there is a significant improvement in terms of net profit, but also the core business of the spanish banking sector is improving. there are more loans, the net interest income is improving for

most of the banks, even if for some of them it is below the average forecast. definitely we are seeing an improvement in terms of business conditions for the spanish banking sector. the next step, of course, will be the new round of stress tests with the results later this year. >> stephane, thank you very much. meantime on the earnings front, lvmh is impressing invesers. they're forecasting a rise in cognac sales this year. shares are trading higher to the tune of 6.45%. you can see christian did i or, 4.6% high. the second highest performer on the stoxx 600. kering up 2. 9%.

joining us on the set, nick sanders from btig is with us. it's really interesting because many people were cautious around luxury after what we've seen from burberry. lvmh has made us do an about turn almost and say, well, em isn't dead after all. >> even diageo talked about the slowing at the high end because of the anti-corruption measures in china. someone is going to be wrong, whether it's lvmh being too optimistic or diageo being too pessimistic. >> people are still buying handbags, they're still buying fashion goods. is this just a matter of getting the product right, that lvmh perhaps has the right logo, it's the right marketing and people are still buying this product, and they're buying lv? >> i think there's a good bit to do with that, the higher end brands. and, again, you've seen good growth in their luxury brands,

but you've seen slower growth in the watchers side of things, which has been hit by the anti-graph measures. >> what's most interesting about the fact that we're having this conversation today? after what we've seen all week where emerging markets have been an absolute strife, i know it's knot not exactly your patch, int but does this seem unusual that we are seeing such a strong story on the back of lvmh. >> no. in fact, i think it's a matter of some concern that companies at the top luxury end of the market, the kind of place where you can spend 10,000 pounds on a handbag are doing so well. i think that talks about the massive income inequality that i think is going to be one of the next crises that comes up. when economies start to suffer because most -- i nkwill be the next phase, whichs consumers running out of cash to consume. because income inequality means that so much is now concentrated

and people care about spending 10,000 -- and people like lvmh do very well in targeting them. but when the rest of the economy doesn't have the cash to buy the 5 pound knockoff with a gap in premark, that's when we start to see problems. >> 10,000 pounds in that lvmh mark. i think -- >> i bet there's a 10,000 pound lvmh bag. >> you are probably not incorrect when you say that. the reaction across earnings season is interesting. their reaction, the commentary didn't seem overly bearish. the big effect risk day is to trade. what do you do around the earnings? >> i think it's all about where you are exposed. you saw the other day, they're all heavily exposed to brazil.

electrolux mentioned it. if you've got exposure to the emerging markets, unless you're at the high end, then you're going to be in a fair bit of trouble. >> do you think january shares are -- the s&p 500 just managed to get into positive territory yesterday, which meant we looked okay for the course of the week, but not necessarily for january. what do you think b across the overall space? are we looking at a terrible 2014 because january hasn't been great? >> i think this will be the year of catching people out. one of the mantras i always used is that the market rejoices in catching the maximum number of people on the wrong side of a trade. and it does that by creating surprises. so everyone went into this year thinking, okay, we had a great stock rally last year. it will continue this year. it's going to be negative for bonds. the em problems are behind us. currencies, not so much to worry about. you know what? every single one has come back and spanked us.

and everyone has now positioned themselves for the other side of that trade. that continues. my concern is that we move back again and we will see continued volatility and bond markets. all we need is a couple of really strong numbers. i'm not sure where they're going to come from. i think next week's jobs number will be weaker. but some strong numbers from the state and the treasury market backs off. but it will be constrained because people will jump in and start buying because this thing is going to go on. >> i just want to get to this reason why because ben bernanke will punch the time clock for the last time today as his ten-year is coming to an end. his replacement was will be sworn in on monday. cutting interest rates to historic lows and implementing three rounds of quantitative easing measures. most recently, bernanke led to an eventual tightening of rates down the track. you spoke about this where the

first 1 00 days of a new february chairman can caught a -- is this what's going to happen? >> it's funny because i -- i just thought about, you know, when mr. bernanke came in, he was handed the financial crisis bond. when mr. greenspan started, it was the asian crisis. in each case, you've had a wobble within first 1100 days. whether it's the moral hazard being passed on or just some she sheer coincidence i think it's interesting that the least fall was in the early '70s. >> what's the legacy here after the first rounds of qe? some say the second and third round on were a mistake. do you think his legacy was one where the markets will celebrate his tenure or say it's an absolute disaster? >> no. i think he's going to go back with fairley positive -- i think

long-term we're going to go back and say very difficult circumstances handled well. i'm not sure he's made any mistakes in qe. i think the adaption to new strategies and new policies were grabbed and were used, yeah, we're finally getting -- at the end of the day. i think he'll go down with -- by his name. i'm very concerned about what happens the next few weeks. because i suspect that yellen is going to get thrown some difficult -- as the americans would say -- curveballs. >> an alphabet program is -- >> please don't ask me to name them all. >> a whole bunch of different programs. but if you look at the task now for yellen, the market is saying, will she taper it to the tune of $10 billion a month right up to the end of the year or does that program start to get delayed because there is volatility in markets and there's a change at the helm? >> i think the -- i think they tapered at this week's meeting

because, otherwise, it would show really bad -- send a really bad message in terms of their confidence and what they're doing. the fact that they didn't even mention yellen in the room of emerging markets i think is a bit wrong. but do you read all the press that they've said is that, you know, it only has happened, the emerging market sell-off has only happened in the last week or so. but what you've seen, the build up to this, has been the weakening of the currencies over the past six months. so it just finally boiled over into equities. the equities always seems to boil down to what's going on in the world. >> let me get a final trade for you, bill. you said there's volatility to come. you said interest rates are going to spike in the states. that means it still has to be the only trade. is that correct? >> i'm trying not to be uber bearish. because i'm not. i think we're going to see economic growth and that's a good thing. ting markets have overreacted.

and that means there's opportunity there. certainly i think the dollar should be there. i'm thinking about japan. but to be honest, i'm not sure why i'm thinking about japan at the moment because the signals are so mixed. but there are certainly opportunities in the emerging markets. markets have overreacted. every single emerging market economy is not turkey, it's not argentina, it's not south africa. .i think you've got to look and take care of spots in these markets quite carefully and quickly, because the markets will quickly correct. >> guys, we're going to wrap this up. thank you very much, bill blain and nick sanders. still to come on this show, india's central bank governor says the u.s. are running selfish economic policies. what is the falter of economy in developed nations? we'll discuss it, up next.

markets fail to get a boost from wall street. most asia yap markets are closed for new year. electrolize le lelectrolize

bigger than expected loss in the fourth quarter. lvmh posted large earnings and other luxury fashions follow suit. amazon stocks get slammed after hours. google impresses with strong ad revenuelux. across markets, we are seeing a further decline now. down 0.3% for the ftse. the xetra dax down almost 1% now. the cac in frabs was trying to hold on to some green, but proving very unsuccessful. and no relief on the periphery, either. the italian markets shedding 0.6%. let's see how this is impacting foreign exchange markets. because i think there's a bit of

relief in some em currencies. but we actually saw a bit of a move back into the u.s. dollar as a result. so dollar/yen rates has been one of the exceptions because of strong data out of japan today. the likes of the cpi rate finally moving in the right direction as authorities try to get into that 2% target. the euro has been under pressure today. sterling sliding 0.2%. the dollar/swiss one of the safe havens in positive territory. you can see the australian dollar drifting lower. is panic, we've spoken to a number of chief executives and asked them when this sell-off could settle in for the long haul.

>> emerging markets used to grow some 5%. but we have seen a significant slowdown of growth and major markets like india, indonesia, brazil. >> i would not be overly concerned as i would not be overly optimistic about the european environment. the emerging economies are still pretty strong. >> there is going to be currency fluctuation, but this is something that we're going to live through because if we pull back in those markets and then try to get back when currency goes the other way, it's just not going to work. we have to have a consistent strategy and continue to drive our business in those emerging markets. >> the emerging markets are a mixed bag. we've had good performance in places like india, brazil, russia, south africa, but we have challenges in the china/buy

baidu business. >> the u.s. and other developed nations have been blamed for adopting selfish monetary policies. speaking just days after surprising markets by hiking rates, the former imf chief economist said industrial countries were focusing on their own recoveries, despite the fact that emerging marke>t had helped pull the -- out of the 2008 financial crisis. the rupee recovered after jumping against the dollar after falling to a two-month low on wednesday. joining us now is david hanas. bank of america/merrill lynch, david, great you have to on board. this is right in your basket of currencies. the comments we just heard from the central bank governor suggesting that developed markets need to intervene and take a wider approach now

because they're seen as meltdown across. do you think there's any truth in that? >> i think it's right that some more policy cooperation could be helped for markets. at the end of the day, what's happening you no is a normalization. we have had the biggest financial crisis in history. developed markets central banks have reacted by providing unlimited liquidity to the wall. emerging markets have been recipients of liquidity and we're very happy to some extent because we could use it for funding. now it's coming out of the markets and what we are seeing, in my view, what we are seeing is a big normalization in all valued currencies and in all valued rates markets and policy rates which were low fundamentally thanks to the global liquidity. so it would help if the fed and emerging market and central banks could reassure markets. i don't think it could do much different effectively -- >> do they slow monetary policy

exits because of what's happening and critics would say first hand that these countries had many years to get the deficits in order and there are particular countries that had bad economic fundamentals that have been targeted and hit the most. what exactly can developed markets do? >> i think you're totally right. at the end of the day, it is policies in some of these markets are primarily to blame for their problems. i think we should also -- we should not generalize too much. some of the markets have recently had the biggest problems, like argentina, turkey, ukraine. they have come out of any vulnerability announcements and stands for the last few years at the very top. i think we need to bear in mind that the likes of brazil, south africa, indonesia, india, they have corporates but in a different class in a sense that, yes, they have had rates low but these currencies have normalized and these are going to have some adjustment ahead, but it's different from 1998. we are not going to see a long

emerging market debt crisis. >> we saw very strong actions, 4.25% difference in the lending rates. erdowan has raised the point that he does have a policy, he does have a strategy and he's prided over very strong growth since he came to power in 2002. why is the market running scared now when he has had success during this economy and had his foot on the pedal? >> i think the market is scared now because it's becoming apparent that a lot of the -- in turkey has indeed been built on cheap credit. we have had a bit of a slowdown in the performance in the last few years. the market ready needs to see a return of stability. there's a lot of uncertainty about the standing of the governing party in the last several weeks. third, the market needs to see

nominalzation of monetary policy. so the last thing was advertisest to do. we think the central bank has done the right thing and central bank policy in turkey has been not any more the source of the problem. the source of the problems remain tess political uncertainty and that is unfortunately the same place for the better part of this year because they have elections coming up in march. they have elections in august. and they have another round of elections next year. >> so if you look at this chart on the boards, you can see a dollar/lira had a mild recovery. it hasn't held very much over the course of the last day or so. what do you do now given the political uncertainty and the elections coming up? do you continue to sell? >> we think we look at the experience of the previous rounds in the lira after which the central banks raise rates. i think the experience has been that the lira rebounded quickly as it has done this time and ultimately created on the weak side. you have still a current account deficit to fund, which is sizable. you are going to have -- going up, rates going down and you

will also continue to see the concern about rising euro interest rates. plus political uncertainty. so i think for the time being, the lira is going to feel the strength. >> look at the chinese new year. how does this impact liquidity across markets? >> i think it's very bad. in my view, the chinese new year is a key part of the problem right now. basically, we have had this weak pmi, which in our view is from a statistical perspective. we wouldn't reach too much into it. we think growth in the first quarter is going to be 8el% year on year. however, in the meantime, while everybody is on holidays, the bears globally are able to affect markets more in low liquidity conditions. and then you also have the absence of policymakers. everybody is on holiday. no one comes out and says anything reassuring. the bullish economy is on holiday, as well. so the bears out there are able

to take the lead. we will think for things to do in the emerging markets generally, we're going to have to see better data out of china. for that to come, we've had to wait at least weeks. >> better data to get the 8% numbers rather than the 7.5% that the government seems to be aiming for. david, thank you very much for joining us today. head of eeua fixed income bank of america/merrill lynch. millions have set up to ring in the new year. the chinese new year, which kicks off today, is considered to be the most important date in the lunar calendar. markets in singapore, asia, hong kong, taiwan and vietnam are all closed for the holidays. one market that is open is is japan. the engineering electronics giant hitachi is gearing up. we're being joined from the nikkei and has the story live for us. take it away. what's the latest on these earnings? >> hi, karen.

the nikkei is reporting that hitachi is likely to report a 21% drob drop in operating profit to 4.9 billion dollars. most of its business units expect higher profits, especially rail infrastructure and its auto parts business. this is a big comeback for hitachi. in 2008, it posted the worst number ever for a zap niece manufacturer. the firm has been working on reorganizing its business by undertaking structural reforms and cutting profitable businesses. it turned five companies into holy opened subsidiary. hitachi succeeded in rebalancing its earnings base, forecasting more on infrastructure business which includes elevators and overseas rail systems rather than electronics segment. it's working on taking advantage of growing demand in emerging markets. hitachi's shares surged right after the opening bell in the

tokyo market, but ended flat as a rise in the yen took a toll on exporter shares. karen, back to you. >> thank you so much for that. elsewhere, bitcoin trading platform btc china will now allow customers to buy bitcoins with the yuan in exchange accounts. this after the platform halted deposed deposits back in december. last month, china banned services companies from bitcoin transactions. the ceo told the dow jones news wire that after studying the pboc's memo, they have decided to resume deposits. btc is the largest and the longest standing bitcoin trading platform in china. japan's shinzo abe era is heading straight for its target as inflation rises at its fastest pace in two years.

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japan reported a 1.3% annual rise in inflation for december, the fastest pace in more than five years.

this brings the economy one step closer to the to the bank of japan's 2% target and the abe-nomics plan. japan saw unemployment saw to a seasonally adjusted rate to 3.7%. that is a six-year low for the country. and the ratio of jobs to job applicants increased, showing a surplus position for the first time since 2007. join onning us now is dr. shetescka. lovely to see you again. >> thank you. >> we've been talking about abe-nomics and how to get to these targets and finally these numbers start to show direction to the 2% inflation target. do you think the authorities are on track? >> yeah, definitely. especially after the earthquake back in 2011, we have the year activation reactors right now. obviously, l&g and crude oil imports are very big, weakening yen accelerating that situation. obviously, a price rise has a lot to do with energy.

even if you could exclude food and energy, it's still rising at a steady rate. things are on track from that point of view, yes. >> we were just talking off-line about japan about how it's part of the west and the central developing country at the top of the asian region. but it can't receiver the ties with emerging markets and the demand story. this has been a very interesting week, showing us what lies behind the currentan in many of those countries. will the expectation necessary japan, which have been strong for a good, solid japanese recovery story pay out when you've got so many deep seeded concerns about em countries this year? >> well, the fact of the matter is, unfortunately, you're right. the thing about japan is we do have a lot of domestic event coming up. all the demand we saw before correlates very strong with the consumption demand coming up in japan and due to the fact that the public information increase is taking place.

that said, the biggest anxiety is external factors. we're not competing with china and the rest of the world. especially with these ee mermging nations, we're complicating each other. >> we mentioned the job numbers before, that record low, 3.7%. but i wonder how much the headline number tells us. abe-nomics and the policy by the prime minister is to try to bring more people into the workforce. if anything, he's going to drive up the participation rate. >> i would say the next step is wages, for the wages to increase. but to see that, we have to see the expense come back. and then the investment will start kicking in and then finally wages will start to rise and then we'll see the consumption. so we still -- i think the

market expectation is three months to six months too early about this. so we'll gradually see this, but the first sign of a comeback is definitely capital expenditure. as you just reported, job applicant ratio has improved significantly, so the exporters, the domestic side, as well, so in that sense, the track of unemployment as well as job ratio is progressing very nicely. >> what do we look for in terms of the wage hikes in japan? because many countries are different. you see unions pushing for high wage demands in some places, there's been a big discussion here in the west, the top end ceos getting a big extension in wage packets. but if you look for an increase in japan, is it going to be widespread because you have many big companies that employ a lot of employees? how will that play out? >> that's a good question. in japan, we have a totally different type of human resource management from the rest of the world. especially the larger the company, it the enends to be lifelong.

>> you want low wages for as long as possible. >> yes. unfortunately, it goes higher as the seniority kicks in, meaning that the older the generation, the higher you get paid. so it's very difficult for them to make this transition. that said, of course, we are going through, leaving out the deflation staigs stage for the first time in 15 years. so, yes, if they don't do it now, when will they do it? so i think this is a year that you will see, especially in the second half of the year, these corporations making the decisions. >> so they do a basic percentage increase so, what, 1%, 2%, 3%? i would say 1%, 2% would be wonderful. so far, they've basically complied by increasing bonuses. but, again, the most important part is basic wages. it was negotiated around the springtime in japan. >> basic wages are more of a certainty than just a bonus.

thank you very much. in the states, microsoft is reportedly close to naming nadella as its ceo. nadella runs microsoft cloud business. the announcement may come today and as part of the move, company co-founder might step aside as chairman. microsoft shares have been drifting higher in frankfurt today, up 0.16%. and you can see double digits over the last six months. yahoo! says its e-mail service was recently the victim of a coordinated cyber attack. and an undisclosed number of accounts was compromised. it's taken immediate action to prompt users by resetting their passwords. there's no confidence yahoo! e-mail was attacked. the stock, though, is falling in trade today.

amazon's fourth quarter revenue, earnings missed analyst forecasts. sales rose 20% during the holiday period. the company is warning it may record a first quarter operating loss due to higher shipping costs. and amazon says it's considering an increase of $20 to $40 in the annual charge users of its prime two-day shipping and online media service, which has been key to driving both online purchases of goods and digital content. amazon fell 5% in after hours. and you can see in trade it's down 4%. google shares are rising in after hour trade as the company reports mostly positive forty quarter results. cnbc's josh lipton has more on those numbers from silicone valley. >> google reports, beats and pleases the search giant missing

on the bottom line, but beating handily on the top line, reporting revenue of $16.86 of billion. the street had been looking for revenue of $13.6 billion. paid clicks jumped 31%, more than anticipated. although cost per click did drop 11%, which was worse than analyst forecast. google making headlines saying it will sell its motorola mobility unit to lenovo. motorola mobility reported an operating loss of $384 million in q4, which was worse than the loss it posted in q3. on the conference call, google's cfo says this company remains committed to hardware innovation, specifically in wearables and home markets. josh lipton, cnbc, silicone valley. >> every week, cnbc has asked you to talk the trend by taking part in our online poll. this week, a tiny question we're asking you, which nasdaq stock

would you prefer to own? apple, amazon, facebook and yahoo! were the choices. apple was the one that -- the biggest vote that was cast with 49% there. amazon coming through a 28%, actually, some of the best numbers from facebook this week. 15% of you going for that stock in yahoo! right at the bottom of 7%. i guess depends on your trading window. you can see more than 7,000 of you voted online for that choice. head to traderpoll.cnbc.com to cast your vote. you can see the trend and add to these numbers. have your say in twitter using #traderpoll. the biggest sporting event is this sunday when the denver broncos and seattle seahawks face off in the xlviii super bowl. it's the first super bowl to be played outdoors in a cold weather environment.

i'm not sure cold weather quite describes it properly. more than $12 billion is expected to be spent on super bowl wear, snacks and merchandise. ahead of the big match we sent ross westgate off to talk to a current nfl player and someone who has played in a super bowl. that is brennan deed diedrich. we asked who he thought would have the edge this weekend. >> i think the real matchup is between the seahawks offense against the broncos defense. whoever wins that battle will win the game. >> how about peyton manning? we're now in a cold open air stadium. does that make it harder for the quarterback? >> it can. in this anytime you put the elements to the game, you know, the receivers catching the ball, cold hands, if the field is sloppy, footing and things like that. but i mean, these guys are the best of the best. they worked hard to get to where they're at right now in the nfl

and it's the biggest game of the year. so i don't think they're going to worry too much about the elements affecting their game. i think it will be a pretty competitive match. >> what is it like as a player just before you get into a super bowl? what is it like when you run on to the field? >> it's amazing. it's kind of a surreal feeling in a sense, you know, i've actually made it here, in my experience. it's the biggest honor you can achieve in our field. so those guys are probably going to be on cloud nine going out there, really jacked up, really geeked. you know, it's going to be a tough game. it's going to be an interesting game. there's never been a super bowl like this. i'm interested to see how it's going to play out. >> just because there's a matchup between offense and defense on each on side? >> no. because of the weather. that's what i'm interested in seeing, the weather. but i don't think this is going to affect the game. it might affect the game plan, but i don't really feel like

it's going to affect the guys mental state of mind going into the game. >> what's it like in the weekend before the match. are you just trying to kill time? >> yeah, you know, it's hard because you're champing at the bit to go and play. at the same time, you have to relax, take it all in and enjoy the ride. there's 32 teams in the league and only two get to make it to that game. >> very much looking forward to the marathon that the super bowl this weekend. still to come, how markets will do based on january's performance is predict ago gloomy 2014. we'll ask if that is a fair assessment, next.

hello and welcome to "worldwide exchange." i'm karen cho. these are your headlines from around the world. markets fail to get a boost from wall street, sliding lower into the trading session. most asian markets are closed today for the lunar new year holiday. a tale of two giants, amazon stocks gets slammed after hours. google impresses investors to strong ad revenue. and bye-bye bernanke, fed chairman bernanke checks in for his last day at work.

janet yellen will be sworn in on monday. reports suggest that microsoft has a new ceo despite month-long speculation over candidates. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. if you're just tuning in, thank you very much for watching here on this show. this is how markets are shaping up ahead of the u.s. open. as you can see from the color on the charts, we're anticipating a negative start. from the selling that dominated in the beginning of the week, looks to dominate at the back of the week, the s&p 500 showing gains yesterday, managing to turn positive for the week. we may, in fact, be extending the selling we're seeing over the course of january. speaking of which, let's look at some of these other indices. the cnbc ftse global 300 index drifting off by 0.25%. modest declines so far today.

european markets very much on the back foot. we've seen acceleration throughout the course of the morning session. concentrating on the german stock market in particular, if we can switch over to the charts and show you how we're shaping up, we're down 0.5% for the ftse, similar losses on the cac. 1% down for the xetra dax and the italian market down 0.75%. this risk off trend is causing some safe haven buying. we've seen a real drive lower on some of these core european bonds. some of the safe havens in particular. bunch, 1.67%. now the yield. we're down about 1.8% on the yield today. also forward too on the gilt yield. 2.71%. this is how we're shaping up on the u.s. bond market, 2.67% on the u.s. treasury yield. foreign exchange markets, there had been somewhat of a pick up on those em trades. that's been destroyed with some

of the negative sentiment. euro is under pressure. the u.s. dollar is failing to get some traction against the japanese currency today. because there's been some very strong data out of there. cpi numbers have increased. this is right on track with abe-nomics. the jobless numbers showing some positive momentum, as well. australia, weakening again. it's seeing the absolute ramifications of the em trade, one of the more liquid currencies. and the pound is softening up today, as well. markets have stalled this week on emerging market volatility. but how are some of the world's top business leaders feeling about the investment landscape? here is their outlook. >> we wanted to just put a stake in the ground and say, okay, assuming a worst case scenario of competition, relatively soon, what will the numbers look like? and that's really the

clarification on the outlook for 2014. it will be a strong year for novartis. >> we are ready to lend money. i don't think it's lack of funds which is out there. it's lack of consumption, lack of demand, lack of investment. so in this environment, we have to adopt that. we cannot make magic. >> you may be a case in point. up 25 years of trying to sell you a box and a dish, many more customers continue to want that as you see in today's numbers, but there's a whole big market of people in addition to that who might just want to come in and rent a movie from time to time. the market is 13 million households in the uk, but they haven't been able to access before but we as well as other competitors would go after that market. >> as january goes, so goes the year. that's the logic behind the

so-called january barometer who told us stock performance this month predicts how we will do for the rest of the year. the s&p 500 is currently down about 3% for the month. the january barometer has been in 62 of the past 85 years or 73 % of the time. but a bit coming up today and perhaps this will impact how we see the trading day pan out. this is what's on the agenda today. december personal income and spending is out at 8:30 a.m. eastern. income is forecast to rise 0.1% and spending over 0.2%. so that's going to be key. but also in terms of some of the other independent numbers on the agenda, we have got january chicago pmi. well, dan morris is present and chief investment officer at morris capital advisers. january, does it count? do you think the losses have had on the s&p 500 this month is indicative of what the rest of the year holds? >> well, i think the reason we

don't want to necessarily pay too much attention is that we're still in an unprecedented time when you look at monetary policy, so how things worked in the past is not a good indication of how things are going to go in the future. we're still optimistic, certainly at more modest levels than what we saw last year. overall, we think the environment is relatively benign. >> i have to wonder what the driver is because we have an em meltdown. many of the globalized companies are listed on the major u.s. exchanges, deriving growth for these parts. we're going to change the helm at the fed. what is it going to come down to? where is the capitalist for the markets to trade higher? >> well, we do have an overweight for you. it's equities. partly for the reasons you just mentioned. it is going to be a difficult year for emerging markets. but we've looked at the overall demand. in terms of global demands, it's still not a big percentage. we're going to have a pretty good recovery in the u.s. that's going to help a lot. you're going to have less strong but still a recovery in europe,

as well. so on the margin, i think the potential is probably more in the developed markets this year than in emerging markets. >> there's been a lot of cause out there in the markets that large caps will be the place to be and a more stable ship. that's going to outperform because some of the stars have been the small cap in recent times, but it will switch over to the large caps to close the gap. do you think that's the right space to be, as well? >> if you compare earnings expectations and earnings growth, small cap has done so well. the multiples on a lot of the small cap indices are quite high. if you calculate what you think your medium turns are going to be based on that, it is hard to come up with positive numbers. so that actually is our view, as well. it is going to be a better environment for large caps relative to small. primarily good earnings on both sides, but better valuations with large cap relative to small. >> as i mention dollars, the em story is one of the big impacts on these globalized companies.

many of them are foraged deep in markets. they've been trying to add strong levels of growth on to their existing businesses. how do you arrive up? you're seeing strong impacts because of negative headwinds. >> any company that had been focused exclusively or too much on exclusive markets is going to be challenged. >> over the last week or couple weeks, growth for gm, i think companies are probably going to -- you know, are going to have to look for the sources of growth. at least in the short-term. but i think the fundamental long-term story that we have for em in terms of rising middle class aspirations and all that,

i think that's the case. we're going to have a period really because of monetary policious of the u.s. that markets in particular are not going to let them really get that return right away. >> and, dan, last day for ben bernanke after guiding us through thecrisis, what of his legacy? do you think the markets will say job well done? >> market investors, i think economists will be trying to evaluate what the real impact of quantitative easing was, three rounds of it, how much was good, how much was bad? we're not going to know for a long time. but if you consider the environment that we were in and the decisions that had to be made, i think it would be hard to fault a lot of what he and the central bank did. >> we're going to come back to you in just a moment and talk about another big event over your way. that is the super bowl. the addverts played out more

attention than the game itself. now, the price of a 30-second super bowl spot has reportedly reached $4 million. yes, it's $4 million. and ads often feature big name stars. this you're, scarlett johansson is selling soda stream. david beckham is selling h&m. 80% of super bowl ads fail to actually lead to real purchases or even build brand awareness. so tell us what you think. do they influence your buying decisions? if you want to join the conversation here on "worldwide exchange," get in touch by e-mail, worldwide@cnbc.com, you can tweet us, as well. you see all those catchy ads. people love them. they all have their favorites. but do they go out there and buy the actual car or whatever has been advertised? back to the earnings, swedish appliance group electrolux supported a wider

than expected loss for its fourth quarter. after the break, we'll speak exclusively to the term's ceo about the challenging road ahead.

these are your headlines. amazon's christmas discount hurt

earnings, but over at google, ad revenue saw strengths. microsoft's long search for a ceo is reportedly at an end. and federal reserve chief ben bernanke arrives for his last day of work today after eight years at the helm. electrolux has dropped right to the bottom of the stoxx 600 after the swedish appliance group dits appointed with fourth quarter numbers. they reported a wider than expected net loss in the final three months of 2013 as stronger demand in north america failed to offset dwindling sales in europe and brazil. the company said unfavorable currency headwinds dented profits. we're now joined by the ceo of electrolux. great you have to back on board with us, keith. you must be disappointed at the reaction today given that you see organic growth sales of 4.5% was above your overall target.

>> so, yes, we were quite pleased with the growth of the company, both in the quarter and for the year. and, again, above the target, aus mentioned, of 4 had%. and it was broad. it was every business unit and every region having that kind of growth. of course, the impact on the earnings of over 400 million directly due to currency, you know, that hurts. but you've got to work your way through that into the marketplace and that's what we'll do. >> keith, do you think you're suffering from a bit of bem slaughter, you have an exposure there, so do you think that's what we're seeing? >> if i understood the question correctly, are we being impacted by the devaluation of the currencies in the emerging markets, absolutely we are. so whether it's the brazilian reao, the p he so, we get impacted by that because we're in 150 countries. so when currencies move around

as rapidly and as quickly as they have, they impact us. you know, over time, you have to adjust to that, either on the supplier side or the marketplace side. >> so what is the strategy, keith? because you've been speaking in your press release today about increasing the range of new products, expanding your market coverage. what does that mean? are you putting new products out there to the market or are you steering clear of further em exposure? what's the next 12 to 18 months going to look like on the strategy front? >> so our strategy so to bring more relevant innovation in our appliances to the marketplace to your point. so, yes, it's about -- we have a pipeline, a very rich pipeline of new products and innovation that has come from increasing our r&d investments by over 50% over the last couple of years. so that's the primary strategy is bring innovation to the marketplace. obviously, get paid for that innovation and continue to be a

highly productive operating company. so that is the simple but not easy solution to being in the appliance business. >> it sounds like you're going after the high margin businesses. we've spoken before about some of the kitchen appliances you've been installing across the world. what sort of extra products should we be looking for? >> so we've got actually new products coming in all key categories. in multi door fridge rarefriger have new products in dish washers and in laundry. and then i think the next big wave is going to be around smart dream connected appliances. i think that's going to be the next wave of technology that comes to the appliance market and into a consumer's home. >> before you go, let me ask you about italy because there's a lot of attention there with the italian government which suggests you might be looking at closing a plant down. do you think that time is long

past because the cost space is just too high and you can source products more cheaply out of emerging markets in europe? >> so we've communicated, as you mentioned, a study and analysis of our manufacturing footprint in italy. we've got several plants there. we've just concluded that analysis and have begun discussions with the respective stakeholders. so including, in addition to our employees, the union representatives and government officials. so we're right in the middle of those discussions to see what can be done to make sure that while we're in italy and being in italy, how do we make sure that we're competitive versus the rest of the marketplace? so too early to predict those discussions, but they're certainly under way. >> the chief executive at electrolux on the back of earnings today. well, there is a developing -- let me dive into this and tell you a little bit more. a nuclear reprocessing site in

northwest england detected elevated levels of radioactivity. just in the last few minutes, they said there is no risk to the general public. the site is still operating with reduced starting levels. the uk energy ministry says it's in contact constant with the plant, so they're going to keep you updated on the events if there's any more to tell pup. still to come on this show, a string of results of spanish financials conditions with banco popular and bbva. after the break, has spain's banking sector finally turned a corner? and as you can see, we're down 0.9% on the overall benchmark. earnings are having a run at the top end with some of the luxury names.

banco popular returned to profit in the fourth quarter. are spanish financials timely out of the woods? stepha stephane, the bpva numbers show

us bad loans are still increasing. we haven't exactly turned the corner just yet, have we? >> it is still below the average ratio of the spanish banking sector. 6.8% at the end of the year for bbva. that's to compare with 13.08% for the whole spanish banking sector. in the case of bbva, there were some good news this morning because the net profit beat expectations, but also the net interest income, which is the difference between how much the bank charges for the loans and how much it pays for the deposit was higher than expected in the fourth quarter with a 6% increase. so bbva looks like the numbers were rather strong. it's not exactly the case for banco popular but i guess we're going to talk about it with our next guest. >> indeed. staying with us, dan morris, global investment strategist for tia crest. we got your introduction wrong the last time. you haven't just changed firms

while we were on air. so let's just dive in. first of all, can you tell us your take on the spanish banking sector this week? do you think the spanish banks are out of the woods? >> well, what we're seeing is the improvement in the spanish economy over the last quarter. starting to feed through for some banks in terms of lower provisions or lower rates of deterioration of mpls. having said that, profitability levels are very, very low at this stage. and i think the key question is if there is going to be a recovery in the spanish economy and, therefore, spanish bank profitability, how fast will that recovery be and what's already discounted in valuations? >> stephane, come in here. >> yeah. do you think that the core business lending of the spanish bank is picking up? because this is something that we've seen for bbva, but it's not so clear for smaller lenders like banco popular. >> well, there's always a timing

difference between asset quality trends and flows and the situation in the wider economy. so while the economy has emerged from the fashion, we're still seeing mpls increasing for all of the spanish banks. i think what's important here, though, is what is the outlook for 2014/2015? is that rate of deterioration looking to peak? and will we, therefore, see an improvement in the level of provisions that the banks have to take over the next couple of years? certainly when you listen to the spanish bank management teams, they're all quite confident that loan loss provisions will start to improve in 2014 and by 2015, they're expecting to see a significant improvement. i think really it will be a question of will growth be strong enough in the spanish economy? will the real estate market bottom out and start to improve and allow them to book those lower provisions? >> dan, you used to cover european banks this side of the water. speak a lot about them.

it doesn't sound like much has change. what do you hear? >> well, i think if you look at how europe is recovering as a whole and in particular credit growth and the difference in the recovery between the u.s. and europe, you still have overall negative growth, not just in spain, but in germany, as well. so one of the economies that you think is one of the stronger ones, still negative growth there. but it's getting better. it's not as negative as it was. it's moving towards zero and then positive. i think ultimately equity prices are going to reflect that. but it's just the rate of that change, the rate of that improvement and we think it is going to be comparatively slow. >> one of the positives about the likes of bbva and santander were their diversification to emerging markets. now we've had this melt yao. has a positive become a negative for the spanish banks? >> the emerging markets are absolutely critical for bbva and santander, generating significant amounts of profitability. so we've seen a lot of ups and

downs in fx rates over the last few weeks and that is important for the outlook for further earnings. but perhaps more importantly is is the volatility a sign of harder times to come for latin american economies and maybe some economies more than others. but we've seen this over and over again in emerging markets. and given their exposures generating 50% of profits in the case of santander or even higher in the case of bbva, the market's perceptions of those risk and the outlook there would be key for investments. >> thank you very much for that. appreciate your time today. and thanks to our correspondent, stephane out of madrid. plenty more coming up including amazon may charge a premium risk buying service shipping costs even to its bottom line.

welcome to "worldwide exchange." if you're just joining us, i'm karen tso. these are your headlines from around the world. european markets fail to get a boost from wall street, citing lower trade. asian markets are closed today for the lunar new year holiday. european luxury stocks close higher. lvmh highest in europe after forecasting stranger demand from china. other stocks in the sector follow chusuit. amazon stocks get slammed

after hour as earnings miss. but google surprised investors with strong ad revenue. reports suggest microsoft has picked a new ceo from within despite months long speculation over external candidates. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. thank you very much for joining us today. hear how markets are faring across coming up to the early open. you can see we're anticipating another negative stoart. don't forget the s&p 500 with the gains yesterday just managed to push the index into positive territory for the week. but it has been vary bearish month. some people say that could be indicative for the trend for 2014. not everyone agrees with that, though. the ftse cnbc global 300 index

in negative territory, sliding 0.3%. european markets providing no comfort today. you can see we're getting further sell-off. the further we move into this trading session, the worse the picture has been. we're down about 1% now on the italian markets. the dax down 1.3%. so the big question for investors, how do you make money in these markets? here is what some of the experts have been telling us this morning. >> there is a sell-off up to an extent. it is fed tapering. at the same time, we get mixed data in the united states. weak data in china. altogether, but some of them i think are not sustained. eventually, this will become a buying opportunity, but we're not there yet.

>> you're buying tae weaker exchange rate and a very good evaluation point. you need to have some sort of visibility with respect to the politics. >> we have a billion gtp, 50 for countries, thousands of languages. and the opportunities are really spec toral. consumer, financial services, telecom, banking the unbanked, as well as infrastructure, interest rates. >> amazon's fourth quarter earnings and revenue missed analyst forecasts. although sales rose 20% during the holiday period. the company is suggesting it could report a first quarter loss due to shipping costs. its prime members and two-day

shipping has been prime to shipping cob tents. also in frankfurt today, trading lower to the tune of about 5%. daniel, the amazon numbers, they're disappointing. a lot of people had high expectations coming into the holiday season and all the commentary around this has been paused. even starbucks saying, hey, we didn't get much foot traffic. why has amazon been so disappointing? >> well, i think the company called out a couple of reasons for the disappointing results. there's less seasonality in the business right now due to the evolution of the business overall. they did have some good results in apparel. so i think net-net, you know, look, there was an aggressive discounting environment domestically, but paid unit growth was still up 25%, albeit down 4% sequentially. i don't think it was as bad as everybody was making it out to

be. i think expectations were very elevated. >> the cost increase that amazon is also discussing, $20 to $40, charges some of its users, what's the ability for amazon to have pricing power in this environment? because it does seem to be very competitive back drop. >> well, i think if you look at what happened to amazon during the -- during december, they had to halt prime membership subscriptions because of overdemand. i think amazon has a great value offering to consumers. i think a $20 to $40 increase given the fact that they haven't raised price owes amazon prime in nine years is fairley reasonable given the increase in shipping costs and the fact that they're spending so much on digital content. it makes sense to us. >> amazon has been focused on reinvesting the money it's been making in recent years. and investors and analysts have been fairley comfortable with that strategy. do you think that remains the case? the money is going to be

reinvested or do you think it's time to start paying out more funds to investors? >> i think we've seen for several quarters now that profit has increased. the margin was up 90 baits ba 9 points. last quarter, they exceeded income operations. you're seeing a fundamental shift where internal margins were improving. i still expect amazon to invest aggressively. overall, we should see organic improvement in the long run. >> thank you very much for the perspective there. you have a buy on the stock, price target $500? >> that's it. >> thank you very much. daniel kunis, senior analyst at benchmark company. meet the new boss. microsoft may finally be ready to announce it's found someone to replace the ceo steve balmer. morgan, there's been so much chatter about the company

hunting elsewhere outside the company for a new ceo. but it may actually be internally that the promotion comes. >> that is what we're hearing. microsoft's board is reportedly set to appoint thachia nadella as ceo. nadella is a native of iderabad, india. he was promoted to run the company's fast growing cloud business last july. if he's named ceo, nadella would become the most powerful indian-born tech executive in the world, putting him alongside pepsi's ceo as the head of a well known fortune 500 company. so analysts say nadella would be a solid choice. however, some investors had campaigned for an outsider such as ford's ceo alan mulally who might have been more inclined to

shake up microsoft. earlier this month, mulally took his name out of consideration to remain at ford. as part of the move, microsoft's co-founder bill gates may step down as chairman and would be replaced by ron thompson who led the ceo search. some called for gates to step aside, believing he is getting in the way of the company's restructuring. gates would reportedly remain on the board and focused on technical innovation in a new role. it's unlikely microsoft will name a new leader until next week at the earliest, saying some people may be distracted by the super bowl, which matches up to denver broncos and the seattle seahawks. microsoft, of course, is based in washington state. checking shares in frankfurt today, they're up a little bit. about 0.69%. back to you. >> morgan, who are you going for in the super bowl? do you have a team you're supporting? >> new york is not in it, so i'm

not rooting. i'm just going to jump in for the chicken wings. >> sounds good. thank you very much for joining us today. well, you may have noticed that i'm sitting in for ross westgate today. it seems as though he had a very taxing assignment yesterday. check out what he's been set up to cover. it is coming your way. >> we're going to take a short break. when we come back, we're going to dig into the super bowl in a very special way. right, girls? >> stay tuned. we'll be right back. i need proof of insurance. that's my geico digital insurance id card - gots all my pertinents on it and such. works for me. turn to the camera. ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know that when a tree falls in the forest and no one's around, it does make a sound? ohhh...ugh.

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for a current prospectus visit www.etrade.com/mutualfunds. these are your headlines. amazon's christmas discounts surge earnings. but over at google, ad revenues beat the street. microsoft's long search for a ceo is reportedly at an end. and federal reserve chief ben bernanke arrives for his last day of work today after eight years at the helm. the biggest event in the u.s. sports calendar is this sunday when the denver broncos and seattle seahawks face off in the 48th super bowl. the game will be in new jersey and it's the first super bowl to be played outdoors in a cold

weather environment. more than $12 billion is expected to be spent on super bowl wear, snacks and merchandise. ahead of the big match, we sent ross off to talk to a current nfl player and someone who has played in the super bowl. ross asked the big defensive tackle deadrick who he thinks will be the edge this weekend. >> i think the real matchup is between the seahawks offense against the broncos defense. whoever wins that battle is probably going to win the game. >> how about peyton manning, he set all sorts of records in the course of the year, but we're now in an open air stadium. does that make it harder? >> it can. anytime you have the elements, to the game, you know, the

receivers catching the ball, cold hands, if the field is sloppy, footing and things like that. but i mean, these guys are the best of the best. they worked hard to get to where they're at right now in the nfl and it's the biggest game of the year. so i don't think they're going to worry too much about the elements affecting their game. i think it will be a pretty competitive match. >> what is it like as a player just before you get into a super bowl? what is it like when you run on to the field? >> it's amazing. it's kind of a surreal feeling in a sense, you know, i've actually made it here, in my experience. it's the biggest honor you can achieve in our field. so those guys are probably going to be on cloud nine going out there, really jacked up, really geeked. you know, it's going to be a tough game. it's going to be an interesting game. there's never been a super bowl like this. i'm interested to see how it's going to play out. >> just because there's a matchup between offense and defense on each on side? >> no. because of the weather. that's what i'm interested in seeing, the weather. but i don't think this is going to affect the game. it might affect the game plan, but i don't really feel like it's going to affect the guys mental state of mind going into the game. >> what's it like in the weekend

before the match? are you just trying to kill time? >> yeah, you know, it's hard because you're champing at the bit to go and play. at the same time, you have to relax, take it all in and enjoy the ride. there's 32 teams in the league and only two get to make it to that game. it's still a big honor. >> also the adverts played in the super bowl, the price of a 30-second super bowl spot has reportedly reached $4 million. and ads often feature stars. this year, scarlett johansson is selling soda stream. but are these ads worth it? a new study says 80% of super bowl ads fail to build brand awareness or lead to purchases. tell us what you think. if you want to join the conversation here on "worldwide

exchang exchange", get in touch e-mailed worldwide@cnbc.com or by twitter @cnbcwex. one saying no, it doesn't encourage them to buy the products. on that note, though, carmaker hyundai is paying two separate ads during the big game. joining me from new york is the vice president of hyundai motor in america. i guess it's fair to say you're spending at least $8 million this weekend. >> that is true, yeah. of course, when you include the production, it's a little more than that. but we think it's a terrific value. >> the surveys we're just reading out says it doesn't encourage people to buy the products. why spend the money if you're not confident you'ring going to get the return? >> well, you know, they don't call it the super bowl for nothing. if you take a look at the entire audience of 130, 140 million people, about 40% of which is women, you take the engagement in the advertising, which is three to four times what a normal tv show is, you look at

the social media involvement all around it. and i know in our case, in our business, if we look at the traffic to our website, hyundai.com or you look at the traffic to all the other big automotive sites, every year we do a thorough roi analysis at the end and we think it more than delivers and that's why we're back for a seventh year. >> steve, the target this year is on two separate autos that you have. but you're pushing the safety features and innovative design. a couple of messages coming through. but as you just said, 130 to 140 million people, all of them have diverse tastes and interests. how do you get individual messages across? isn't it just about brand awareness? >> it's partly about brand awareness. but the key thing has to be a very simple message. if you take example of our commercial for our all me genesis, it is a very simple idea which is about automatic braking which is a great new

safety feature, we set it up with a feature that that is parents have a way of knowing just when their kids mifth into trouble. we have a line that is almost like parents have eyes in the back of their head. but sometimes he'll be driving on his own and that's when the car's safety features come in. so a very simple message, very basic little insight that we think parents, when they see the spot they'll say, oh, yeah, i remember examples where would i have had to do that with my kids and we have a beautiful shot at the end of the car. done a lot of testing on it, pretty data focused. we think it will be a hit. if we look at, for example, number of youtube views, here we are a couple of days before the game and we're the number one automotive right now in youtube views. a lot of good indzcation for a good game for us. >> there's been so many hittes and messes on super bowl ads. some of the more popular ones, budweiser, "brotherhood" is the

name of their title. how do you ensure that you have the ad that works? because i guess in some ways, enormous -- for your company, your job must be on the line if you get this right. >> well, it's a pressure thing. you know, some ways every year we say never again and we always come back. you know, i would say, karen, it's equal parts art and science. as i mentioned, we do a fair amount of research. so we show concepts to consumers. when we have a rough cut, we show that to consumers. but there's still a little bit of art in magic. it's all about simplicity. it's all about a little story that's engaging. but then there's some come with a totally different approach. if there's a simple formula, everybody will be joining us. we think after having done this for a while, we'll be ready for sunday. >> we'll take a look out for that ad. thank you very much for joining us, steve shannon, vice

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welcome back. european markets pretty close to the session lows of the day. autos, banks, construction is the worst hit across the european space. one bright spot has been household goods. with best news out of lvmh, household goods bask. just a little bit of green across on one sector. but overarching theme is to sell today. let's give you a look at what's

on today's agenda in the states. december personal income and spending is out at 8:30 a.m. eastern. income is forecast to rise 0.1%, spending slightly more at 0.2%. also same out ought at 8:30, we get the employment cost index. later on at 2:00, it is the january chicago pmi. and the final read on january consumer sentiment, chevron, mastercard and mattel are due to report before the opening bell. we're chasing some of the amazon numbers and reaction down. nasdaq, s&p 500, futures suggesting a weaker start stateside today. as january goes, so goes the year. that is the logic behind the so-called january barometer which holds that stock performance this month. ho we'll predict how we will do for the rest of the year. the s&p 500 is currently down 3% for the month. the january barometer has been right in 62 of the past 85 years

or 73% of the time. let's get to mark sebastian, director of trading and investments. mark, do you put much in your january trade? >> you know, historically, sure. but i don't think you can look at this year against all the other years. we had kind of a crazy last half of december. but i think we're just kind of making up for. i don't think there was a good reason for us to rally as hard as we did out at the end of 2013. we're just kind of making up for that as people re-evaluate the effects of fed tapering on the marketes and how it's affecting the emerging markets. >> it hasn't been a great week for demand for emerging markets. in some ways, perhaps the domestic consumption story in the state is going to be relevant. how key do you think it is going to be in confidence? are the numbers going to be strong enough? >> doubtful. i think that it's all about the -- the whole story right now is emerging markets.

i think the s&p, we continue to get very, very close to the 1 is 00-day moving average. i think that is a key level. we tested at about three times last year. every time we tested it, we went through it and it bounced right off. if you look at the volatility index, it is not pricing for us to break through that 100 day moving average and to continue down towards the 200. if we break that 1768 level, we don't bounce, as many traders are expecting. i think that's where things could get really ugly. so i think a key number is 1768. are we going to be able to bounce off that number once we test? if we do, then it could be right back to 1800, 1825, 1850 for the s&p. >> one of the big change for investors is at the helm of the fed. every time they've got nervous, we've been able to reach out and ben bernanke has held our hand the whole way through.

we're not going to have that after bernanke closes off today, his last day after eight years at the helm. is it going to spell a change for markets? >> well, you know, yellen has kind of been bernanke jr. but one thing you have to wonder, if you told the if he fed they were going to taper $20 billion and the ten-year treasury would be trading lower, they would think equity markets would be rallying and everything would be great. right annoy, we're not seeing tapering effect because everybody is so afraid of this emerging market contagion, which is an interesting dynamic. so we could fully see the fed taper, ten-year treasury yields continue to fall and the s&p sell off, which is completely the opposite thinking that many traders had going into 2014. so i think we're -- again, we're at a very key level here. the emerging markets will be able to pull themselves together? if not, it could be ugly. >> it will be an interesting day. mark sebastian, director of trading and investments wrb

thank you for your time today. that is it for today's show. i'm karen tso. thank you very much for watching "worldwide exchange."

good morning. today's top stories, the tale of two tech titans. google earnings missing the mark, but other key metrics were strong. meantime, amazon results disappointing the street and the company may increase the cost of its popular prime subscription program. it's the last trading day of the month, and u.s. equity futures pointing to a less than stellar start on wall street. the big game is sunday and joe is visiting super bowl boulevard this morning, catching up with owners, leg officials and business leaders. it's friday, january 31st, 2013 and "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin. we're both here at cnbc headquarters. joe, however, is reporting live from the nfl house in "new york times" square today. he's going to join us with today's game plan in just a moment. but first, today's top business stories. we start with the markets this morning. look out. u.s. equity futures at this hour are indicated sharply lower. you're looking at the dow futures down by 137 points below fair value. s&p futures are off by about 16 points. and the nasdaq is down by 30 points below fair value. this is all coming after some volatility this week. yesterday, you saw the markets up pretty sharply. the dow was up 109 points. the s&p saw its best day since december 18th. but this is par for the course these days. a little bit up, a little bit back. we'll see where things take us through the course of the