you're watching "worldwide exchange." i'm ross westgate. and turkey's exchange continues to lose value. we'll ask what the next policy steps should be. we'll be joined by the turkish finance exchange minister in just a few minutes. and following a difficult day for the japanese markets, the nikkei now in correction mode after dropping another 2%. lloyd's bank shares need more cash to cover insurance claims. investors are not impressed with

news that the bank will resume dividend payments this year. and the party's on in the emerald city today as the seattle seahawks win their first super bowl title in dominating fashion over the denver broncos. >> you're watching "worldwide exchange" bringing you business news from around the globe. we'll have more coming up on the stunning victory for the seattle seahawks over the weekend. it was a bit of a shutout, really. first, the your roe zone factories based on 2014, the strongest growth since mid-2000 with a bounce-back in spain as well. the pmi is stronger at 52.7 for december. the output index up 56.7, higher

than the flash number and the employment number was 57.7 in the flash. france is still struggling a little bit, but the region as a whole exceeding the earlier flash estimates. the report is from the manufacturing in the spanish number also ticking higher into expansion territory. with more on that, first we'll go to turkey's finance minister. we have michelle cabrera. >> i am not the turkish finance minister. >> i'm sure you could give the answers if you wanted to. you just flew in from istanbul. >> yes. i was there all last week. joining us from istanbul is the finance minister of turkey. minister, thank you for joining us. great to have you here. first question, your assessment on the rate hike from last week,

did it work? >> good morning. it will work because the downward pressure on the currency is primarily driven by domestic retail portfolio shift as well as corporate ethics demand. we have not seen significant capital outflows, and therefore the central bank independence and its credibility is going to be very important. and i think the rate hike has helped restore credibility and will improve obviously the perception. of the central bank because there were some unjustified concerns about the unorthodox policy. the return to unorthodox policy should happen. >> when you read the minutes from that meeting, they will be aggressive. they are willing to invert the slope of the curve. you're an economist, you know

what that means, that means being willing to push the economy lower, maybe into a recession. is the prime minister on board with that considering how much he's been against rate hikes in his concerns about whether or not they would hurt growth? >> well, we have to live with more moderate growth. partly because of global efforts and part of it is efforts domestically. as you may remember, in 2012, we engineered a substantial slowdown in domestic demand. and that was on the back of policy shift. so i think this year we may face similar outcome and we will have to live with more moderate growth. now, as far as elections are concerned, as you may know, the opinion poll suggests that the political party is not at stake.

the ruling party has substantial support at 47%, 48%. therefore, i think a short-term slowdown in growth is not going to hurt political prospects. and you have to be pragmatic. and therefor, i think, for us the most important thing is the central bank credibility and its independence because it's a challenging global backdrop challenging domestic environment and we have to deal with that. >> the prime minister has said if this rate hike doesn't work and there could be another flare-up if there are concerns within the emerging markets, that there is a plan b and plan c. could you give us more details as to what plan b and plan c are? >> well, first of all, i would like to highlight or underline what is plan b and c and what

they include. there's speculation that turkey could have six-year capital movement, that's completely out of question. there's been talk of transaction chance or tax on financial instruments or capital. that's also completely out of question. i think the core policy framework will remain. turkey is a small open economy. we are integrated toward the economy and we have to be realistic here. therefore, we will maintain sound, monetary and fiscal policies. we have a strong fiscal opposition. our deficit loss was one-fifth of the average, so we will maintain that. as far as monetary policy is concerned, central bank is independent to do what is necessary to achieve economic stability as well as when going

forward, we need to continue to improve investment contact because that's going to be a relatively healthy social economy for the deficit. secondly, we need to enhance transparency, democratic status to ease concerns domestically following the recent developments. so clearly my plan b and c and i'm sure that's what the prime minister means by it will do more reforms, structure reforms, but maintain also our basic pro-market pro business famework. >> prime minister, when you talk about attracting fdi, what's at the top of the list? >> well, the main thing is for the past decade we have been successful somewhat, but clearly more progress is needed. techs could improve

profitability and make turkey more attractive. we have a tax at the parliament and we need to push that through at the parliament, so that's one priority. enhanced predictability. secondly, overall, we need to continue to eliminate competition. we need to create a level playing field and we need to continue basically enhance competition. because that's really essential for international investors as well as economic investors in terms of profitable environment. so more reforms, more micro-level of reforms are needed. we need to make sure that inflation stays in single digits. and clearly that's why the central bank has responded. and if needed, more response should be coming, too. now even though our gross gdp ratio is down to 25%, 1/3 of eu average, we still need to make sure we continue to maintain our

investment grade rating, so we will continue to maintain prudent fiscal policies. but in terms of tax reforms, they are really broad. that goes from making it easy to do business, to as i said, trying to create a better level playing field for everybody. and so more work needs to be done. and also we need to enhance transparency. these corruption investigations have raised some question marks. >> that's where we wanted to go with this next question. the biggest perception concern i hear from international investors is considering what's happened with the judiciary, considering how the tax authorities have been used against people that are perceived to be enemies of the state, it feels like the biggest issues are rule of law and corporate governance there. how do you handle that and are there any changes or how do you make it clear to investors that it is an area that doesn't

necessarily lead to stability? >> that's a relevant concern even though it may not fully reflect the reality on the ground, but we respect those concerns. and that's why we need to respond. during my government term, if you look at transparency internationals ranking, turkey back a decade ago ranked 65th among 200 countries, so corruption percentage was very high. if you look at 2013, turkey ranked 53rd in 177 countries. so we have made a significant improvement, but obviously we are not where we would like to be. and that's why reform of campaign finance to strengthening the oversight of public spending, we may also review the public procurement law, so there are a lot of perform areas we need to work on. and my government is committed to that because we've benefited

from enhancing the standards of democracy in this country, we have benefited from better standards in rule of law, and eu access is an important anchor and we need to continue to revive that. as you may know, politics have not been very favorable in recent years, but the prime minister was recently in brussels, so we will revive that process as well. so overall we understand the concerns. we will address those concerns. and it's a process but most important overall, i think, march elections will show that political stability is not at stake and more reforms will have to ease the concerns. >> the prime minister frequently refers to the interest rate lobby. what is the interest rate lobby do you believe in the existence of an interest rate lobby? >> not in the way that is perceived internationally. let me just give you a little bit of backdrop.

in 2002 when the prime minister took the office, 86% of tech revenues were ear marked for interest payments. so government interest payments amounted to 86% of tax revenues. essentially very little was left for research and development. i think the prime minister, when there is political instability and the risk of financial market turmoil, he refers to those times when really the country was in a dire state, the country was on the brink, and that's what he refers to. this is the same prime minister who frequently when i say follow direct investments in turkey, he says don't use foreign. foreign has a negative connotation. this is the same prime minister.

so i think investors are welcome. i think investors know it. i was in london a week earlier, in new york, and met almost 400 to 500 investors. i met them on a one-on-one basis. i think the understanding is there, but unfortunately a term that is used for domestic audience referring to back to 2002 when the country was on the edge, unfortunately sometimes it's conveyed or understood in a very different fashion, so we really need to be -- i've clarified this on numerous occasion, but i understand that it's probably something we'll have to work on. >> finally, you talked about the progress that turkey's made over the last five years or so, but what about the next five years? because as much as you talk about reforms, as much as you talk about the progress and the needs of things that you must address at this stage, you're still perceived as a government that cracks down on the media, that interferes with the central bank, that instead of addressing

some of the crucial structure issues of the country, michelle says you talk at the interest rate lobby and say it is a foreign conspiracy. how much you talk is the prime minister on side and are you going to stock some of those measures now? >> first of all, i mean, let me make it clear, prospects for turkey for the next five years are even if the emerging markets don't do that well, i'm sure they will do relatively better with one factor, and that's turkey benefits tremendously from low commodity prices. now, keep that in mind. secondly, eurozone, which is our made trading partner. it accounts for over 40% of our exports, is pulling out of the procession. that's critical. and the fact that our region is now stabilizing, that's also going to be beneficial in terms

of external demand. now, we will address concerns about the low flow and the business community. unfortunately, we've had a few experiences that doesn't reflect well. and we are aware of that. the prime minister, if you go back a few years ago, you will see how progressive platform my party has and prime minister is progressing, i mean, he's in favor of that, he's a reformist leader. unfortunately, in recent years domestic issues have been taken out of context, and that's reflected negatively on the understanding of where we stand. so i think the external environment is becoming more supportive with the exception of course of tapering. but fundamentally what really matters is eurozone recovery and some sense of stabilization in our region and softer commodity

prices. keep in mind that we have a healthy banking sector, we have some fiscal position and also we've created almost 5 million jobs since the end of 2007. so fundamentally i think turkey is in good shape. and the next four to five years, i think with more reforms, the prospects will further improve. the prime minister is fully behind us. without the prime minister's blessing, we wouldn't be able to do these reforms. i think if you ask anybody in the city of london, they will recognize that in the last decade turkey has made substantial progress but work is certainly not finished. more needs to be done. and we need to address some of the worries and concerns. >> minister, thank you for joining us live from istanbul, the finance minister of turkey. >> he had a lot to say. joining us now, are you persuaded or not? >> he certainly said all the right things talking about central bank end pep dense,

ruling out capital controls and placing an emphasis on the need for structure reforms. i think the problem turkey has now is that if its finds itself in the situation where credibility is difficult to win, very easy to lose. and the question mark is over the last 12 months, that really undermines that credibility. >> he said we're going to have to tolerate low growth. how low is it going to get? >> i think there's a real risk and an underappreciated risk over the next 12 months. if you look at the relationship between credit growth and real gdp growth, that imply that is the hikes and rates we have seen the last couple of weeks would be enough to tip the economy into recession. of course, much of this depends on how or where we go from here, but certainly at the very least we'll have growth a couple better this year. turkey could see growth much

weaker. their numbers have been low for too long now. >> he was saying the right things, but i'm not convinced the prime minister will go along with it in the end. how do we know they are on the same page? >> the finance minister is doing a great job in incredibly difficult circumstances. he placed an emphasis on the incoming debt being low. the private second sore growth is really the big issue in turkey. to suggest the banking system is stable for now, we have seen such a large expansion that it wouldn't surprise me to see one or two banks and possibly the financial system run into trouble the next couple of years. it's not about the fiscal position, but the credit growth and the very fact that the finance minister has to say, you know, has to kind of clarify what plan b or c may be and almost interpret the prime minister's words without necessarily saying this is what

it is. that tells you enough about how -- >> the climate has set a higher up nation, but he also talked about the corporate fx exposure because that's a critical element that we don't always talk about when we talk about the deficit situation in turkey. he said that the fiscal situation is solid. >> i think the fiscal situation is reasonable at this stage. the issue is we have the private sector credit. as you suggest, a lot of the corporate debt has been in foreign currency. the biggest increase in external debt. historically, we know that can be unsustainable. big increases in private sector credit, particularly in foreign currencies, can lead to problems further ahead. the public finances, that's what you're seeing here we numerous emerging markets and economies over the past five years.

>> michelle made the point, have the rate hikes we have seen done enough? my question would be, if higher rates are the answer, then brazil would be fine because they have achieved that over the last 12 months. that's key question about growth, isn't there, about turkey as he was eluding to especially. >> i think the fate of turkey now is on what happens on a global level with the global markets selling off and the return against it. this raises the prospect that the policy is starting to struggle to defend that currency, even if they react unexpectedly to the strength of the currency it. kind of raises this prospect in the second phase of the crisis. that's when i think things in turkey start to get to the upbeat. >> thank you for that, neil. michelle, it is just like old times. >> it is so nice being on the set with you.

>> stick around. >> i love anchored "worldwide exchange." >> i always said i would come and help. you are too far away. are you here for the rest of the week? >> no, i leave for moscow tomorrow and will be in sochi for the olympics. >> can we speak to you from there? >> i would love it. that would be great, sure. >> you need to wax your skis. cut your blades. i don't know, whatever they do. whatever it is they do in the olympics. polish your runners or something. that sort of thing. really great to see you. thank you, michelle. still to come later in the show today -- >> u.s. auto sales due out later in the session. we check in on how the carmaker is faring. plus, 6 million are unable to place their vote. we'll tell you what means for the southeast asian economy. and it's about the ads. budweiser's top puppy love was a

favorite. 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.

good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that parker. well, did you know auctioneers make bad grocery store clerks? that'll be $23.50. now .75, 23.75, hold 'em. hey now do i hear 23.75? 24! hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and .75! 25! now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter - sold to the man in the khaki jacket! geico. fifteen minutes could save you...

we'll look at the earnings out this morning. investors are not happy with the amount of money lloyds bank is putting aside to costs related to insurance policy selling, but they expect to restart dividend payments in the second half of the year. there as you can see, investors are taking that down to 2.6% in trading not. not appeased by that dividend. and now elsewhere with banks, banki missed its profit forecast for the year posting a net profit of 12 million euros. stefan, you made an important point early on this morning, we'll look at the net interest income margin there, so tell us a bit about that and what the key numbers are. >> yes, the lending business improved by 7% between the third and the fourth quarter last year. i'm talking about the net interest income, which is the

difference between how much a bank charges for the loans compared to what it pays for deposits. and it was 690 million euros for the fourth quarter. that was higher than expected. and it shows that this business is recovering for bankia, but that's not the case. most have announcing improvement for the last part of the year, but not a lot of dividends. that's why it's a good signal from bankia. but you mentioned the profit, it was blue expectations. on a good note, we have the ratio at 14.7% of the year. this is higher than the fourth quarter. and this is also higher than the average of the spanish banking sector. so it's a mixed bag that we have been responding to. >> thank you so much, stephane. we'll check in with you shortly in the show. now we'll look at julius baer down 3.68%. missing profit expectations and

it could hit the lower end of its target. carolyn is in zurich, can you explain these numbers, because i saw they are seeing a 34% increase in asset management. so they are seeing a re-shifting and re-focusing of the business. can they justify the premiums still based on these numbers? >> reporter: well, interesting question, this morning i talked to steve about evaluation of a stock, and goldman points out that this stock is trading at a premium to the sector, but goldman says it is justified because of good capital levels, it is very good longer term growth outlook. and key to the growth outlook, of course, is the acquisition and the integration of merrill lynch's international wealth business. that was introduced a year and a half ago, and julius has the work cutout for them in the

process of transferring all the assets. as you pointed out, julia, it will be transferring fewer assets from merrill lynch than originally expected. now, this is of course a concern to investors this morning. also, keep in mind that the business that's coming from merrill lynch is lower margin business. and i asked the ceo when will that trend reverse. >> the drag was the temporarily result of the transfer in the banker. we are seeing in asia where the margins are picking up. 2014 very clear road map transferring the rest of the assets, increasing profitability on the existing assets and hopefully the whole organization is back to business mode 100% this year. >> that was the ceo of julius baer talking to me earlier. he's not concerned about the margin side of the business, but he was mum on one issue, and that's the solution of the u.s. tax investigation. analysts are forecasting a

settlement north of 300 million dollars. the economy still hasn't said anything in terms of provisions that analysts are expecting, but this settlement will occur in the first half of this year. back over to you, julia. >> thank you, carolyn. we have the latest now from the u.k. manufacturing with evidence by the pmi at 56.7, so slightly weaker than expected. new exporters, 57.5, that's the higher since february 2012. and the pmi output, 59.1. that's a smidgen below 60.4 in december. so still a very good level of activity. and the new orders component very good indeed. still at 163.71. we'll have more reaction on that right after this short break.

you're watching "worldwide exchange" bringing you business news from around the globe. >> the headlines from around the globe, the turkish lira is lower than expected.

we ask the turkish finance where it needs to be. >> the most important thing is the credibility and its independence because it's a challenging global backdrop challenging domestic environment, and we have to deal with that. eurozone manufacturing data picks up in january with german activity rising to the highest level since may 2011. we'll look at this post-recession. and lloyds bank shares drop as the company puts aside more money to handle misselling claims. the investors are not that impressed with resuming dividend payment this is year. and the party's on in the emerald city today as the seattle seahawks win their first super bowl title in dominating fashion over the denver broncos. four turnovers in the super

bowl game, you talk about the defense of seattle and it swamped denver. we'll talk about that later. right now, our focus is on the pmi easing slightly. new orders essentially easing some, 56.7 and it was 57 in december. november exports, sorry, new exporters, 57.5. that's the highest since february 2011. output, 60.4 in december. joining us is james nightly, economist at ing banking. and chris williamson is here from market that compiles those numbers. what's your overall takeaway from these numbers? >> these are good numbers. sterling is falling below expectations, but the level that we're maintaining, and the consistency that we've had over recent months, so this is the best prolonged period we have

seen in 20 years of data collection. >> where are the new orders coming from? >> the new exporter values are rising -- it is pretty broad based. it is being led by europe, increase from continental europe and the u.s. and some emerging markets, but they are much less frequently cited. the key growth is really reflected in the pmis from earlier. the growth is being dominated by the emerging markets that are really lackluster. you have the russian pmi coming in at the fastest contraction since 2009, and very modest growth rates in other asian countries like indonesia and south korea. the only big bright light in asia at the moment despite the stock market is japan where pmis are near eight-year highs. contrast that with somebody in china. >> it always seems to me that

exports haven't kept pace with elsewhere. is this the change given what we have seen in the new orders in this statistic? >> i certainly hope so. we have seen the exports pick up again and falter. but we are hearing they are whipping demand with a lot less uncertainty around the euro crisis. the global demand is picking up. but i think one of the really interesting things here about sustainability is companies that produce investment growth, that's i.t. equipment machinery, best growth in 20 years in the recent months, so this is business investment in the u.k., they track official data very well. so it could be a last chance at an investment. >> we'll bring in james, do you think we are seeing an uptick in investment and implications for policy? >> yeah, investment has been a real area of weakness for the u.k. economy down 22% or so in

real terms from the peak in 2008. and today's survey really ties in with the evidence we got from the british chamber of commerce and the likes of surveys from the chief financial officers that suggest that boardroom sentiments is as high as well. so it looks like we can finally start to look for the turn in investment, which i think will drive the recovery and give us this broadening out of the recovery story to lead to the eventual policy timing from the bank early this year to next year. >> they are already scrambling a little bit, the bank from where they were six months ago, and what's your global forecast for when they will move on rates, and is that likely to accelerate? >> remember, we still have february 2015 as the most slightly point, but as you say, all the data is pointing in the direction of possibly earlier timing around the december/november meetings. i think that we still should be perhaps looking for some macro

prudential tools, and the bank is looking in that area. so they are looking to canada where they restricted mortgage based on affordability or restricted it outright in new zealand. so that's something the bank can consider earlier. suddenly the prospect tightening for the year-end is increasing. >> you made the point that the bank of england is caught off guard with the pace we have seen over the last 12 months. what's the likelihood that this momentum continues and they find themselves in the position where they are actually ahead of the fed as far as a tightening policy and pulling back to some extent is concerned? >> yeah, i think it is down to the investment and the employment numbers. as i said, the surveys of boardroom sentiment are really pointing towards a dramatic shift in momentum toward a time of expansion in the corporate sector. if that's the case, the employment sector will continue and that could lead to gdp growth in excess of 3% this

year. and the bank of england could be left playing catch of up. >> isn't the important thing getting some inflation? just because we have growth doesn't mean we'll have inflation, particularly on wages, is it? >> i think that's what they could use to change the forward guidance in the inflationary report. the rates have barely risen 1%. as we start to see that change, employment is expected to rise and the pool of continued labor will continue to shrink. so you expect wages to start to be up this year. and if we start to see a slight uptick in wages with the strong growth figure, the bank of england looking two years ahead of course for inflation could be seeing an uptick toward the end of this year. >> yeah, i think we are already seeing some of the wage pressures, that's going to be seen in the official data, certainly by midyear and the mpc is a committee, it is not just mark carney, and i think you're

going to see increased pressure on wages beating through with the sentiment coming through with the rate hike by the end of the year. >> chris, thank you for that. chris williams, james nightly as well from ing. london prices now cost an average of 11 times -- this is interesting, the bank of england, he was saying we'll try to squeeze down affordability. it is not affordable, 11 times the individual income in london. this represents numbers last seen before the financial crisis 6.5 times of britain as a whole. many are concerned ability a housing bubble. >> 11 times the income of londoners or those buying houses in london? >> i think the average income of the u.k. so it's expensive. london is a safehaven. european equities fell last

week reand they are down a .10% today. the ftse is looking to be down .20%. the nikkei is down 2% despite the yen was firmer against the dollar. kospi down 1%. and the other markets are closed because it is still the lunar year celebrating the horse. let's get a quick look at the ten-year bond years, the ten-year bond is trading just above 1.67. the ten-year treasuries is 2.67. plenty of data from the u.s. this week to focus on. ten-year gilt yields 2.73% unchanged. >> an amazing month for treasury. they had the best month for two

years or something. >> incredible. incredible, isn't it? >> no one forecasts that. >> interesting. we'll take a quick look at the u.s. dollar rates, dollar/yen near 102. euro/dollar near 135. and the sterling/dollar is down .40%. the rbs is busy being written about in the press. and they are considering a shake-up of the management team as they refocus on the retail business. they say jamie dunn has made personal pictures to rbs. and finally a telegraph reports that rbs officials have been

called to talk about their u.s. capital position. the press is busy with this. lloyds bank is releasing earnings ahead of the 2013 full year results. the bank is disappointed with the rising amount of money it put aside to cover costs related to insurance policy misselling. lloyds added it expects to restock payments in the second half of the year and the work on sales of shares to the public has also started. joining us with his thoughts is edmond southson, nice to see you. another ppi provision, 1.8 billion, now to 9.8. >> approaching 10 billion, isn't it. >> was that more that it just doesn't seem to stop? >> we seem to be feeding through. last week we know they have 465 million further ppi. they thought the ppi bid has come off, and it's not tailing

off as someone expected, so another provision made. really disappointing news for shareholders because it is still looking back at past demeanors. people want to look at the dividend. >> coming up, it doesn't seem to help. who wanted it first off? >> investors were beginning to assess if there was a possibility next week? >> so this extra misselling aside costs us in earlier dividend. >> yeah, i think the p recross examination a is when they will stop. and they have been in negotiations since december. we knew that was the case. and the rest of it is it could possibly come in february, really exciting news. then as the retail sale to general investors and they'll have a dividend on the table ready, that's the disappointment for us. that's why shares are down today. the slight delay. and the modest wording of it. you look at the statement and it says there's a modest dividend.

and that will upset some. >> are we there yet then? you hope that investors are saying we are over the hit as far as ppi insurance policy claims go. this is another pandora's box. >> i think we should hope that we are there. the this is a year's worth. >> hope? >> hope. i know, i think it is another year's worth of payments going forward for provisions made. and i think the assessment is this should be one of the last. management will be very -- will want to make sure this is the line drawn. this is it. and we thought it would be given the large provisions made in the third quarter and in barclays, large provisions were made in ibs, but we are not there yet. >> can i drag you into ibs as well and what you thought of their 2.86 billion. >> yeah, ibs was again

disappointing, but they put a number on the u.s. rmbs litigations charges. generally they have been looking at that way off with this charge what some have given to ubs and jpmorgan. i don't think the market is over the moon with that number. it is not there as the definitive process. >> they have this structure. >> they want the focus to be on the strategy. they want it to be on what the business will be. >> do we all like ibs? >> once we get to this presentation, there's going to be a lot of attraction. how is it going to look and where will it be in three years? >> interesting. right now focus on the european banking system as we return to the spring stress test. the european banking authority released the key outlines for the tests.

the banks will be tested under the normal working environment or the -- a 5.5% in the ad verse one. meanwhile, the ecb is due to release more details about its test on the european lenders. the central bank is due to carry out a so-called asset reviews on the top banks to assess the risks on their balance sheets. edmond, the first thing that stands out to me is that we have the ecb on a different page here. that's not great for investors and the banks. they need to be on the same page, surely. >> it loses credibility when you have different requirements and different stress tests. that's not something investors will focus on. they want this to be a strong task and there are reasons to believe that this is slightly easier than maybe thought

before. so that 5.5% you mentioned, the general consensus view, there will be 6% on a stress market basis. and the differences, they are losing a slight degree of credibility when it comes to the stress test in our opinion. >> you actually put in your notes that investors currently see little impact from the stress tests. and is this announcement likely to change that? you contradicted yourself. >> relative in the u.k. with ibs and lloyds, we know that the pra is going to be quite a bit stricter than others. with some of the peripheral banks, a stress test will be much harder on, this is a real focus for them going forward. do we see potential capital raising? it depends on the type of banks we have. >> today what should we be looking out for? >> i think it's more of the same. i think it is just the wording of it. i think you'll be down to no specific numbers there for us, and we are slightly cautious in

what -- if they kind of relax it, we will be slightly disappointed. >> edward, thank you. still to come, protesters in thailand blocked 6 million people from casting their votes this weekend in their election. we'll have the latest from the southeast asian economy after the break.

welcome back to the show. we'll give you a look now at what is happening in asia tomorrow. china's markets are closed for the new year holiday. we'll check on japan's car market. and also in japan, first retail reports on spain store sales. in australia, they will announce their rate decision. and in hong kong, we get retail sales. >> we're going to get to the chinese pmi in a second. that was official, the six-month low is where we are on the holiday today. >> i think we are too concerned about interdata points in china.

we look at the individual ones, they are still above 50, we are expecting a slowdown. >> they are not above 50 in the manufacturing. that's the point. >> it is, but i just -- how much can you believe chinese data points like this? i'm not sure. i'm not sure. >> okay. >> are you china bear? >> i don't think things are as good as the consensus. you have to decide, is it going to be better or worse than the consensus? i think worse. >> $3.5 trillion in reserves. >> yes. the report is said to be inaccura inaccurate.

sony and lenovo are in talks on possible pv business alliance according to nhk. and novarts to cut and transfer up to 4,000 jobs. shares are up 15% over the past 12 months. also the telegraph newspaper suggests that glaxo smith kline has trials of ten new drugs over the next two years. the drugs not yet detailed are looking into medicines for cancer and respiratory diseases. a delegation made up of representatives from more than 100 french companies is visiting tehran today in what will be the biggest western business showing in more than a decade. french finance ministers say they will have considerable opportunities in iran and hope they keep their word about their

nuclear program. it's so long for the frankfurt afe skyscraper as it came crashing down. they decided to destroy the building in a controlled explosion after the noisezy destruction was agreed upon. 950 kilos of explosive brought the high-rise down. >> that's fantastic. julius baer says they have been approached in the fx probe. and thailand's election was marred by protests in bangkok and the south. the election commission said 6 million registered voters were affected by the closures.

see, my concern with this thai election is it does not get us any further forward. we are not going to be into parliament. there's still going to be concern about growth. what does this achieve? >> it does not matter if you can get to the polls either. we can't we can't do that. it doesn't appear there will be a huge report. 95 seats is a start. parliament can be rather difficult. >> they've also got a 65 billion infrastructure plan that was meant to take place in the first quarter this year. and they have not had time to do that either. we are seeing tours of industry. the congress in the economy is worrisome with thailand. >> let's check in where we stand with futures in a few moments time. if you have thoughts on

commodity, e-mail us worldwide@cnbc.com. and we have all things super bowl as well. that's coming up in a few moments' time. did you see -- you can't stay up that late in the u.k. to watch the super bowl, right? >> right. >> but i saw this before, more canadians watch the committee than the actual game. >> some people say the game was not that exciting because seattle crushed denver. it is about winning the top prize in the ad meter rating. we'll show you the very expensive commercials and which ones are worth the money.

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. then go to e*trade and find out how much our advice costs. spoiler alert. it's low. really? yes, really. e*trade offers investment advice and guidance from dedicated professional financial consultants. it's guidance on your terms not ours that's how our system works. e*trade. less for us, more for you.

welcome to "worldwide exchange." >> i'm ross westgate. a recap from the headlines. >> the turkish lira is expanding at the fastest rate ever expected. we'll have an exclusive interview on what the central bank's focus needs to be. >> the most important thing is central bank credibility and its independence because it is challenging domestic environment, and we have to deal with that. european stocks are negative territory despite pretty good manufacturing numbers from germany following a difficult

day for japanese equities. the nikkei in correction mode after dropping another 2%. lloyds bank shares drop as the len dor puts aside more cash to cover misselling claims. investors not impressed that they will receive dividend payment this is year. and the party is on in the emerald city today as the city wins the first super bowl in dominating fashion over the denver broncos. >> you're watching "worldwide exchange" bringing you business news from around the globe. welcome again top "worldwide exchange." if you are just joining us, here's a look at how the markets are faring ahead of the u.s. open today. and it's red here across the board. as you can see, we have the dow futures indicating being up 15

points. we lost 5.3% in january. over the last 35 years, the january performance has indicated just what happens for the rest of the year on the dow, 18.3% of the time. so ouch as far as that's concerned. the nasdaq is low by around five points. the s&p 500 is indicating here they are around 2.5 points. let me give you a look at what's going on as far as the 300 biggest stocks are concerned. the real focus was on the nikkei now in full correction territory. a 10% drop we have seen since this last trading day in december. we get started in positive territory despite the stronger pmi readings from the likes of spain and germany, in particular, the ftse 100 indicates that they are off by .50%.

the italian markets are down .80%. >> a little dip down there. with the bond markets, thank you for that. that was the lowest number we have seen. we are still down near tlaefl. the ten-year bond is also slightly lower. the pmis today, manufacturing pmi up to 54. the flash is 35.9. french numbers were okay. and a short while ago we saw u.k. pmis softer and in well expansion mode.

on the currency markets, the ftse is slipping at the dollar, $1.63. post that number. it is still pretty sustainable. the dollar/yen, 101.83 at the moment. we are still down near the low we hit last monday. because of em fizz. >> 130 is the number out. we'll get more later this week. jules? earlier this morning turkey's finance minister told the show that the move is key to restoring market confidence. >> a rate hike has helped restore credibility and will improve of a city's perception of the central bank, because there were some unidentified

concerns about the unorthodox policy. i think the return to policies they should have. >> we are joined now with mark, where do i start as far as turkey is concerned? the key point was the inflation amount out this morning, yes, they are raising rates but the real rate is not enough high, is it? >> real interest rates, that's notal interest rates are still too low in the world, and the fab is transferring global liquidity in -- they need to offer investors higher rial rates. so fully respecting what the finance minister said, china has not restored credibility to the chinese central bank. they pass on rates one week and

raise them the next wun, that indicates too little, too late. >> what can they do now? some in the market are saying actually they are taking on the action needed. how much more is needed here? >> i can't tell you the -- the companies have to raise interest rates further, but it is high inflation. you get up nation at fault, but there are things they can do within their own country. subsidize crisis and knowing the ad min administration wants to grow. >> i have always liked london

for yield. >> the current deficit that turkey has, roughly 7.5% gdp say says they are dependent on imported energy. they slow down the economy to help that but also at a human cost. in the combination, it's a myth. you are making something, you need, water, milk and eggs, so it is not either/or. we could see falling inflation without that. >> you can be misled by the ten-year down to 2.66. and yet we have some significant pickup in dollar funding at the curve. >> it's amazing to me, two weeks ago when the stock market began

to melt down, the u.s. treasury was off 20 basis points. partly because we have a debt ceiling issue that is coming to the forefront and we fried it. what's interesting to me is that here in our -- >> which is a tightening. >> look, the base -- the federal reserve can give the dollars to the european central banks but the european central banks are using money that no one is using. >> stick around, martin. plenty on the agendas today with the manufacturing index down at a half point from december. also we get construction

spending, that's expected to rise .2%. and sisco is reporting earnings before the shopping bell as does general growth properties. after the close we'll hear fryo. thailand's election was marred with protest in bangkok and in the south. the election commission says 6 million voters were affected by the closures. now, head of the portfolio management at singapore is joining us now on the phone. darrell, can i ask you just where this election gets, if anywhere, because it seems to me we can't form a parliament. the protests are still going to be ongoing. and there is still judicial interference. where are we now? >> well, there is still political impasse.

the management has managed to block the proper formation of the parliament simply from a week ago when it had the registration process. as far as the jurisdictions and the bangkok area, there's still a -- the events over the weekend be still be -- this is just continuing on in thailand. >> what does this mean for policy? it was a $65 billion finance bill they were hoping to enact over the next couple of months. there's concern about the growth and tourism industry. so what impact is this going to have on the economy? >> well, basically the gdp will come from thailand. a lot of these projects will be on hold. so it is quite a mess right now.

>> darrell, what does it mean for investors in thailand? what do you do with them? >> fine. i think with a stock lower, just like the number of blue chips and severely hit, we are taking opportunity to build up oppositions in subquality. >> darrell lou, great to talk to you this morning. still to come, strategists are buying towards a more stable outlook. that's what our next guest says. you'll find out why. 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. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

you're watching "worldwide exchange." >> recap of the headlines, turkey's finance minister tells us in an exclusive interview that the rate hike is restoring market confidence. european stocks follow asia low despite strong manufacturing numbers out of germany. and the seattle seahawks are super bowl champs for the first time ever beating the denver broncos.

let's talk market strategy now. we are joined by martin fritzer. great to have you on the show. can i ask whether we have seen enough shine off some of the optimism we had coming into january of this year and where the sentiments have adjusted appropriately now. >> well, we are certainly making an adjustment. remains to be seen whether it's enough because there -- the emerging markets, people in the market not well anticipated. and there's still some question about companies capital spending. that's an issue i see emerging more and more. investors would like to see companies directing more of their cash toward capital spending, less toward buy-backs. and that adjustment is still in

the process. why aren't they doing it. ? just because demand is too soft or they think investors won't want the cash. what's is your explanation, martin? >> yeah, i think the demand is really the issue. there's talk about businesses holding back because of regulatory uncertainty. that's the explanation that i think has political overtones to it. the fact is that the compareson is slightly below historical average. so it is not at a level where you expect companies to be expanding to add productive capability because we are not there yet. but investors are also concerned about technology getting out of date because they have been reluctant to spend. and the incentives, i also

learned acquisitions, particularly when getting acquirers and acquiree stocks benefiting from the number of actry sigss. >> you were just talking about the volatility in emerging markets and we have been talking about where the potential spill-over effects could be. what about corporate credit and the high-yield market? >> corporate credit and the high yield specifically has been rich for some time. the pressure to put money to work at yields that are scarce have pushed a lot of money into the high-end market that no real concerns about default risk, but default risk is not the only consideration there. there's liquidity risk of the market. and on the whole, the bio reckoning, the risk premium over treasury should be about 5.5% points and slightly below 4.

it's a little above 4 now, but still a fair amount of vulnerability. >> this is mark chandler. maybe you can tell me, i see in the emerging markets a lot of people focusing on the sovereign bond market, but a lot of the corporates in the emerging market, that's where the excess is now. a lot of the foreign debt by corporates in emerging markets becomes an achilles heel. how do you see it? >> we have same issues in the market for the europe and the u.s. investors globally shift given the risk, and as that capital moves around, of course, we've seen a lot of -- because of the fed expansion, not a lot of

capital flow to the emerging markets area. >> martin, good see you. have a good month. elsewhere in the u.s., and time warner is up from the current 1.37 share bid. they say time warner is worth $37 billion. the charter could wait to sweeten their bid. time warmer able up 1.7% today in frankfurt outperforming. yellow will be sworn in at 9:00 eastern after officially taking over ben bernanke on saturday. he'll be testifying before the house financial services

committee. she hasn't spokesen publicly about monetary policy about the economy this past weekend. punxsutawney phil predicts six more weeks of the season. he saw his shadow in the groundhog ceremony yesterday attracting boos from the pennsylvania crowd. if he sees his shadow, winter will last longer. if he doesn't, spring comes early. while the groundhog predictions have been called into question, the winter weather is expected to continue today with a storm warning for new york and new jersey is currently in effect. >> i'm just glad i didn't have to pronounce his name. >> punxsutawney, what do you think of that mark? do you agree in the -- >> i think the groundhog does better than currency strategists like myself. >> i tell you what, if you can crack euro/dollar we would be on to something. that's impossible to predict.

still to come, we are live in zurich to hear from the ceo to hear his hopes on cost-cutting. as we do that, here's a view of where the your pane stocks are at the moment.

now, u.s. futures are ticking higher as well as a number of earnings. we are looking at julius baer this morning. carolyn is in zurich with more details for us. what's been the reaction? >> well, if you look at the stock market this morning, shares in julius baer are down more than 4% and close to the bottom of the stock 600. why? because profit missed expectations. on top of that, you have assets under management and gross margin not too convincing. and then the bank announcing this morning that it's going to be transferring fewer assets

from merrill lynch's mismanagement than expected. and also a big concern for investors and analysts over the last couple of months. the business that is coming from merrill lynch's international wealth management unit, that's low margin business. i put that question to mr. colatti this morning, when will that trend reverse? take a listen. >> the drag was a temporary effect on the way bankers had to be transferred in asia. we are seeing where the transfer is down and that margins are picking up in 2014. a very clear road map transferring the assets and hopefully by the end of the year the whole organization is back to business mode. >> guys, i also asked about the ongoing yield tax investigation. remember, julius baer still

being investigated for tax evasion in the past. still no news on that, no provision set aside for julius baer, but we expect a settlement and a hefty fine worth more than $300 million u.s. dollars. back over to you. great to chat to you. mark, what should we be doing here because investors wanted to see a pull-back, and now they have a little bit of it, but have they got enough? >> a lot of our fund managers anticipated a pull-back and didn't get it. some chased the market, but most of our clients are waiting for the dust to settle. when is this a sign that the momentum has slowed? it is naive for them to do so. and ahead of the u.s. jobs data, which is at the end of the week, sitting on the sidelines, the dust will settle. later this month will they make a new commitment. >> do you see a pull-back? >> a further pull-back in the

coming days, but i feel optimistic that the growth prospects are better an the monetary growth is easing and the ecb can surprise us with more help. >> the euro/dollar, i think that it is very frustrating and our view is like the dollar is stronger like a lot of people. i think what's happening is a lot of money is coming to europe. many fund managers when they saw it turn last year in the pmis, the hedge funds like the most distressed assets, greek banks and stocks, best performer from last year. but then a lot of real money moved into spain and italy. and we are still seeing spreads compress there, but a lot of the large fund managers are seeing that the value is gone. >> they are saying there's cash on the sidelines. when people do decide to invest -- >> it comes back. >> exactly. marc, good to see you. we'll take a short break, still

to come -- >> we'll preview today's auto numbers and ask how the freezing number could affect the road to recovery. and after a pretty poor january, this is where futures are currently down 5.3% in the first month of the year. right now it right now the s&p is currently down four points. g is th it's given me time to reflect on some of life's biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call? see, the only thing i can think of is that you can't get any... bars. ah, that's better. it's a beautiful view. i wonder if i can see mt. rushmore from here. geico. fifteen minutes could save you fifteen percent or more on car insurance.

then a little time to kick back. earn double hilton honors points with the 2x points package and be one step closer to a weekend break. doubletree by hilton. where the little things mean everything.

welcome to "worldwide

exchange." i'm ross westgate. these are the headlines today. the turkish lira continues to lose value with the inflation expanding at a faster rate than expected. we ask in an exclusive interview what the central bank's focus needs to be. >> the most important thing is central bank credibility and its independence because its a challenging global backdrop, challenging domestic environment, and we have to deal with that. european activists talk about a difficult day for japan. the nikkei in correction mode after dropping another 2%. lloyds bank shares drop as the lender puts aside more cash to cover insurance policy mis-selling claims. investors not impressed with the news that the bank will deliver dividend payments later this year. and the party's on in the emerald city today as the seattle saw seahawks win their first title in dominating

fashion slamming down the denver broncos. >> you're watching "worldwide exchange," bringing you business news from around the globe. welcome to "worldwide exchange." if you are just tuning in, thank you for joining us on the show. here's how the markets are faring ahead of the u.s. open. red across the board. behind me, the dow futures indicating 25 points lower this morning. the nasdaq down by around 8% 5 points. and we have the s&p 500 down by three points so far in trading this morning. interesting, if you look at the dow over the last 35 years, over the last 35 years, it indicating the performance in january 8.3% of the time. so let me give you a look at the top 300 stocks across asia and

europe. in asia we have the chinese new year lunar holiday. and a weaker performance for some of the european stocks this morning. that's despite stronger manufacturing from the likes of germany and from spain in particular. we'll look at the individual performances of the stocks. we have the ftse 100 down .30%. the german market is down just shy of .70%. the french market also down by .60%. and the italian market is underperforming down by .90%. ross? thank you for that. here's the other stories we are following today, janet yellen will be sworn in to take over for ben bernanke. she will take her new role on february 11. she will testify before the senate banking committee on the 13th. she has not spoken publicly about monetary policy and the economy in over three months. snow and freezing weather conditions across the u.s. last

month could hurt auto sales figures, but the slowdown caused by january's polar vortex is expected to be a minor speed bump on the auto industry's road to recovery. forecasters say 1 million cars were sold in january, which is a jump from last year. joining me is the head of the automobile sector research at keplar, how much has the weather interrupted us? >> good morning. i think the weather in december played a small part in the mideast and along the west coast. the extreme weather conditions probably took 2% to 3% off from the figures. so we expect the month to be again on the slow side. >> fleet sales down because of

decline in tax incentives, is that going to be a more permanent feature? >> it's always a guess in the start of the year. you get slower sale that is have been fairly strong before, so overall we expected this in u.s. late registrations. they erased 90% of what they found with three consecutive years of growth in 2012. 7.5% growth last year. we think the growth this year will be between 3% to 4%. you have strong support for pent-up demand for the age vehicle fleet, but we think the demand is okay at this rate. >> can i ask you about the assembly lines, because they are running them at the fastest pace in years.

>> chrysler probably had the highest in the industry. so we think production could be slightly down in q1 if an adverse happens in the softfall. >> what about price declines, we have seen from cars.com that there's been a slump in prices paid in january. is that what you're expecting, too? >> we expect the pricing to continue to deteriorate in q1. this is the first time we have reported negative pricing in nine months. and we also see automakers going back to offering financing to non-prime customers and being aggressive on easing. so we think that the demand will

continue to be relatively strong. we start getting all the market numbers to sustain -- >> thank you, thomas. we'll watch for the numbers later today. still to come, the super bowl was a blowout but was it a hit for the ads? we'll find out what you're paying for an ad in the game and if it will translate to big sales. welcomehow 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.

good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

[ male announcer ] introducing fedex one rate. some brokerage firms are but way too many aren't. why? because selling their funds makes them more money. which makes you wonder. isn't that a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for you.

e*trade. less for us, more for you. the fund's prospectus contains its investment objectives, risks, charges, expenses and other important information and should be read and considered carefully before investing. for a current prospectus visit www.etrade.com/mutualfunds. welcome back to "worldwide exchange." turkey's finance minister says their rate hike is helping to restore market confidence. and the seattle seahawks become super bowl champs for the first time ever beating out the denver broncos. it's a tale of two takeover

bids this morning involving a potential cable hookup and another to come off the discount clothing rask. kayla toush is here from cnbc headquarters. good morning to you. >> good morning on this monday morning. we are busy here as we start with charter communications that could raise their bid for time warner cable over the next few weeks. reuters says charter is considering an offer in the $140 a share range up from its current bid of $132.50 a share. that currently values time warmer at $37.3 billion. the likely increase for flex speed back charter received from shareholders during its two-week road show of meetings with investors. reuters say charter could wait to sweeten the offer after it nominates a slate of director to time warner cable's board. the one-month window to nominate board members expires this month ahead of the company's annual meeting in may. charter could also hold out until it reaches a deal with comcast. the owner of nbc universal, the

parent company of cnbc, about how to carve up time warner's markets. comcast is interested in owning time warner cable systems in new york city and parts of new england, but little interest in los angeles. some charter-run systems may go to comcast if charter succeeds in buying time warner cable. shares of both companies right now in frankfurt are up slightly. time warner cable up nearly 2% in early trading in germany. meanwhile, over to retail, joseph a. bank may have fired the next shots in the rival with men's warehouse. they are in talks to buy eddie bauer in the price range of a billion dollars. last month joseph a. bank made a bid for mens warehouse which was rejected. and eddie bauer could complicate the mens warehouse bid much more

expensive. right now in early trading, they are both up a tick. men's wearhouse is slightly better up 2%. >> great to see you, kayla. brace yourself, after what seems like an already brutal winter, groundhog punxsutawney phil is predicting six more weeks of the season. he saw his shadow in the traditional groundhog ceremony yesterday attracting booze from the pennsylvania crowd. legend says if he sees his shadow, winter lasts longer. if he doesn't, spring comes early. what's the validity of groundhog predictions? they have been called into question. the winter weather is still expected to continue today as a winter storm warning for new york and new jersey is in effect. joining us for more, jen carfagno, meteorologist at the weather channel from philadelphia. punxsutawney phil has spoken, jen, do you concur? >> reporter: well, i was there yesterday, ross.

actually, i was there in punxsutawney. it was raining there just like it is in philadelphia today, but amazingly when he came out of his burrow, i think there was a chance he saw his shadow. he did, obviously. but i tell you what, it is a great, fun event. you need that hope by early spring or not, or just looking ahead to something in the winter like we've had here. philadelphia, new york city, it has been such a snowy january. philadelphia where i am this morning had their third snowiest january on record. and we are about to get more snow today. it is raining right now. and it's a steady cold rain out here, but the snow is moving in. it's coming in now already starting in some of the western burbs here in philadelphia. and we're expecting a tough commuting type of day here in philly and new york. as the snow comes down heavy, it's different than the kind of snow we've had, too, that we're expecting. i tell you what, it's been a cold january and it was sort of a cold, fluffy dry snow in january. this is going to be a wet snow.

and so a good snowball making snow kind of day for all the kids off today. tough for travelers, yes, airports canceling flights. schools are out so kids will get to enjoy the snow once it starts to changeover in about a couple hours here and lasting through midday. ross and julia, back to you. >> good stuff. jen, how old is punxsutawney phil now? he's been going for some time. >> reporter: yeah, a little over 100 years. late 1800s, i think, he dates back to. they give him a special elixir or something every summer. >> next year try to grab some of the elixir. you don't need it but i do. >> i will share it. >> thank you for that, jen. good to see you. thank you for that. now, on paper this year's super bowl looked like a dream match-up. the nfl's top offense and the top defense, but then the game

started. on the first play the ball snapped over the head of peyton manning into the end zone for a safety and seattle never looked back. manning's pass was returned here for a 69-yard touchdown. smith was named as the game's most valuable player adding to denver's nightmare punt return in this second half kickoff, 87 yards for a touchdown. what a great run that was. seattle whipping its first super bowl title demolishing the broncos as a result. 43-8. celebrations are still underway, but it isn't just about the game. no, no, no. >> i actually think you missed a calling as a sports commentator there. i was watching the pictures listening to you talk, it was brilliant. >> sometimes it works. it is not just about the game, though, it is also about what goes on in between the play on the field with the tv ads.

now, a 30-second commercial this year cost an estimated $4 million. advertisers kept the humor light. many pulled on the viewers heartstrings in this budweiser ad which topped the annual usa today ad meter survey. joining me is ryan pompley. it was such an easy win for seattle in the end, does that mean that advertisers towards the end of the game were losing out? >> oh, yeah, it does. it really is an unfortunate circumstance. and it's always a gamble. you never know what you're going to get, and this was kind of a blowout. so i suspect that the advertisers towards the third and fourth quarter really didn't get their money's worth this year. >> because a lot of their preamble around these ads in the run-up to the super bowl has made the testing more important in this situation as you get more bang for your buck by doing the testing beforehand and

raising expectations. >> well, absolutely. testing ads in any kind of environment, especially a digital one where you can do it very easily and cost effectively is a great way to figure out which super bowl ad is going to be the most effective at driving what's important to your brand, which at the end of the day is sales for most brands. >> but is it really worth $4 million for 30 seconds? >> i think that depends on the brand. so i can tell you that a lot of the brands absolutely got their money's worth. and there's definitely some out there where the creative didn't have a strong message or a strong call to action. and there's some examples like mozaradi, i thought it was a great ad reminiscent to apple.

and then i went to their website to find out the vehicle was only $60,000. why wasn't that in the ad? there was no additional information or no way to figure out how to purchase the car or get a test drive. i saw a lot of brands make the year where they were driving people to a website that just had the commercial i watched and didn't sort of push me through the purchase funnel. so in that case, hopefully the brands can see this and know better for next year. >> that's extraordinary because everyone now talks about multi-platform strategy in the fallout. that can't be done by accident. someone must have decided there wouldn't be an ability to fallout, wouldn't they? >> it boggles my mind. i have no idea what these guys could have been thinking. they are dumping $4 million per spot, and this isn't the only brand that made this mistake. i saw a handful of other guys do this as well. and i feel like they are leaving a huge opportunity on the table. on the flip side, there's a lot

of brands that did have the multi-channel strategy together. they had teasers leading up to the super bowl commercial. and i really liked the whole teaser concept, because it doesn't ruin the element of surprise. and it makes me still want to watch the game and see the commercials live. the guys that put the commercials out there a week ahead of time, i don't think they are thinking fully and that really is hurting viewership actually overall in the super bowl. >> that just reminded me slightly of the milky bar gig. good to see you, ryan pamplin, joining us from san francisco. i don't know whether you stay up when you're in san francisco and then go to bed or do you go to bed and get up early when you speak to us, but anyway, we appreciate it. coming up, will february be just as frosty for investors? we'll get to your first take from the floor of the cme coming right up. first the cookie at check-in...

then a little time to kick back. earn double hilton honors points with the 2x points package and be one step closer to a weekend break. doubletree by hilton. where the little things mean everything.

then a little time to kick back. earn double hilton honors points with the 2x points package and be one step closer to a weekend break. doubletree by hilton. where the little things mean everything.

ahead of the u.s. open, european equities are softer today. we've had pmis come in better for the eurozone. slightly better than expected with a big pickup in orders, the ftse 100 is down .16%. turkey, meanwhile, went to all reforms necessary to restore confidence. that's what the finance minister told us earlier today. the government will not be resorting to controversial policies. >> there has been some speculation that turkey could have residual capital movement. that's completely out of question. there has been some talk of, you know, transaction tax or taxing financial instruments or capital, that's also completely

out of question. i think the core policy framework will remain. turkey is a small economy. we are integrated toward economy. and we have to be realistic here. >> let's give you a look at what is on today's agenda in the united states. the manufacturing index is out for us at 10:00 eastern with forecasts calling for a reading of 56, down a half pint from december. in december we get construction spending expected to rise 0.2%. we've got cisco, the food distribution company reporting earnings before the opening bell and so does general growth properties. let's take a quick look at the u.s. futures. as you can see this morning, we are 24 points down on the dow. the nasdaq is down 8. and the s&p 500 is low by 3.5 points. now ben is here, president at

tradersauto.com is here with us, we have the ecb this week or turbulence in the merging markets. >> everything is combined in addition to the markets that we started out with a dismal january, if you will, which has brought about a lot of concern. but for the most part, this could have been expected. there were a lot of people, all investors if you will, and traders alike were talking about the fact to see some sort of correction. i thinks the just unfamiliar, if you will, for the most part. we are not used to seeing a pull-back over the last year. if you look at the s&ps, we saw a mid-runup to the mid 1800 level. so this is a pullback. if it doesn't continue to deteriorate in terms of the price activity, i think at this point it is healthy to see the market pull back. anything above the 1750 level is a bit of a concern, but the focus is broad-based. as you mentioned, we just had

fed talk. the announcement, we have fed speakers this week in addition to the jobs that you mentioned. so central bank activity, yeah, i think it's everything combined, but the major focus is on the dollar. as we have seen the dollar catch a bit of a bid, stocks are coming off a bit. >> very briefly, everything last year was it didn't matter where we go with jobs, it was good and bad, the markets were going up. now i wonder if we have the reverse. a good number means we get less support. a bad number means it is not as good as we thought. i'm just wondering now if we are in a negative mood. >> well, i think that you contribute most of that to the fact that the fed is starting to take their foot off the gas pedal, if you will, and the markets are just kind of reacting normally or as they should to that. so nothing major again, just a bit of a pullback so far at this point. >> to good to see you, ben, joig

us from chicago. >> that's it for today's snow. >> "squawk box" is next. 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. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

good morning. investors say good riddance to january. the dow and s&p 500 having their biggest percentage loss since may of 2012. also the justice department now reportedly taking a closer look at financial markets in their dealings with libya. and for the most of you who stayed up last night, the seattle seahawks are super bowl champions. paul allen is a happy man. they beat the denver broncos 43-8. but with the second half ad buyers, the real losers of the game. i say in the first 14 seconds or after you were probably a loser. "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. joe is out today, but first we have today's top stories. january ends with a sharp decline sparked by the recent sell-off in the emerging markets. the dow finished the month with a decline of more than 5%. that's right. more than 5%. in factors it was down more than 1% just last week. the s&p 500 dropped by 3.6% to start the year. the dow and the s&p both having their worst month since may of 2012, and the first january drop since 2010. the nasdaq was down only 1.7%, but that was the biggest drop for that index since october of 2012. and overnight the nikkei officially entering correction territory. that index is now down by 10.3% since the start of 2014. so a rough start no matter how you look at it on the equity