hello. you're watching "worldwide exchange." i'm ross westgate. >> and i'm julia chatterley. >> sony warnings investors it's going to post a $1 billion loss. the firming spinning off its struggling pc business and cutting 5,000 jobs. european markets tick higher as policymakers prepare to unveil their latest rate decisions. will they make a move back to deflation? troubling times for twitter.

user growth is slowing. and german carmaker daimler posted jumping quarterly profits, telling investors to expect significant growth this year. we catch up with the chairman first on cnbc in just over an hour. >> you're watching "worldwide exchange" bringing you business news from around the globe. >> the countdown into daimler, also on today's show, danish lender bankia bank has plans to pay out a dividend in seven years. we'll speak to the firm's cfo. >> and animated hit movie "frozen" helps disney serve up hot profits sending shares

higher in after hours trade. can the giant continue to outperform? >> good movie. if you haven't seen it, go and see it. also, he's known as the man who invented glass art. we meet up to find out about his smashing exhibition in london. that is all blown glass. extraordinary. but first, policymakers at the european central bank face a challenge after falling inflation brought the eurozone closer slipping into deflation. on the lawn outside the ecb headquarters in frankfurt, jeff and annette, plenty of calls today from analysts, journalists, all sorts of people mainly in the anglo-saxon world saying they're going to have to think about ecb fairley soon. >> i'm sure they've been thinking about it for quite a long time, ross. the problem is, it's not within

the purview of the european central bank just to go out there and start buying up government debt. giving the impression if you like that it is monetizing the debt crisis that the eurozone has had. so as usual, they are caught on the horns of a dilemma here. but i don't think it's all bad for the ecb at this stage, is it? >> no, not really. if you're looking at the pmi, they're surprising on the up side. we have some surprising signs that growth is picking up there, but it still needs time. and that is what mr. draghi is saying, as well, all the time. and it's an uneven recovery, isn't it? >> clearly, but evidence of a pick up. and you only have to look at that pmi number yesterday. i think it was the fastest growth rate since june 27.

that will give some cause for comfort here. particularly in the wake of this emerging market wobble which will cause some concerns, because these are economies that have been major export markets for the eurozone. and mr. draghi won't be that please the for the likes of india, turkey and china admitting slower growth because that would away a door closing, if you like, for this green shoot recovery. >> another big topic, of course, is deflation and the risk of the deceleration of inflation because the recent numbers, as well, have shown that wasn't just a glitch in december, that it's a trend, probably. but as well, market expectati expectations, in march, we will see a lot of people. but it's like last year thinking

that the ecb will wait, but we don't really know, do we? >> as we were pointing out on an earlier conversation here on "squawk box," the analysts would probably have a clear he sense of what was going to happen if it wasn't for the november meeting where everybody said there will be no action, no movement, and then we got a surprise rate cut. so in terms of communication, i think mr. draghi is in the old fashioned central banker school at the moment just leave them confused and that way you won't get it wrong. back to you. >> yeah. they call it draghi ecb, right? >> draghi ecb, yeah. >> i do like mr. draghi, actually. thanks for that, guys. plenty more to come from geoff and annette, of course. we've got that rate decision coming up at 12:45 london time and then, of course, the news composite at 2:30. >> and the global head of asset allocation at ubs now joins us

on set. he's going to leave the market confused. that's not the policy of a good central banker, surely. >> yes. you have to remember that the ecb will publish the data forecast next month. probably that's a very good tool to communicate problem of deflation if you believe there are deflation issues. and then that's a good avenue to do something and probably another way. that is very simple, but probably what happened. but i don't think there will be a big -- and are there disinflation issues? january 7, he waved away the last printers of 0.8 and said it was a problem with german data throughout. >> it's true. just to give you one example, the cpi is a hundred components. you have 15 components in deflation right now, which is more or less a long-term average. so you don't have the sign of broad deflation in europe.

but we're very close. so a central case scenario is deflation will start to pick up gradually from where we are. but the risk is -- >> it's self-fulfilling deflationary. that is certainly not helping, you know, the indebtedness as the peripheral. >> that's a very important point. one thing we look at is inflation expectation. the real problem in deflation is when you're, like, in japan expecting price to go down, etcetera. that is not the case if you look at -- so what at the central market, but that's not the case for the time being. 0.7 is not a very big number. so we're very, very close to the borderli borderline, i think. >> stick around, stephane. more from you. some of the biggest corporates are reporting today in europe. but first, let's take a look at one of the main corporate stories in asia. sony is once again awash in

regulation. the electronics business now expects a $1.1 billion loss for the year instead of the $300 million profit it had previously forecast. care horry enjoji joins us now. i know you'll take us through the numbers, but can you explain just what's going on and what was said about the restructuring plan. from what i understand, even if they sell off the the pc business, we're still talking about 4 billion to $5 billion worth of revenue. >> i really think, julia, that you have to put this into context. when you consider the cultural difficulty in laying off people, getting rid of businesses here, selling unprofitable businesses, this is a huge step for sony inc. and it's breaking a lot of cultural taboos. so i think it goes to show how much the restructuring process needed to happen at sony. there are a lot of things happening at sony.

first of all, this is the pc sale. there will be no vaio left to sell in sony after this spring. i think that was well expected move by the markets because there was so much speculation earlier on in this week. the other big move is that they're basically spinning off their television operations into a separate unit, kind of like the separate unit that they have, the first sony play station, which is sony computer entertainment. kas serai, now entering his third year, this is by far the boldest restructuring move that he has made in his tenure as ceo. to quote, he said, i he hope that this kind of scale of restructuring i will not have to do again. however, it might be be on the scale, but we have to continuously re-examine our portfolio to see if it's the

right mix and readjust as times warrant. i think he's trying to adjust to the concerns that maybe these moves were long overdue. because the tv business and the pc business were always the trouble spots at sony. >> kaori, how much is this shift in strategy do you think is down to investors like third point and shareholder activisms? it's not what they were pushing for, but how much is that activism actually made them think about they need to do something? >> i think that would be a nice story to tell that one shareholder came in and changed everything, but i would think that that is too much. that would be an exaggeration at this point. i know you're referring to dan loeb and the meetings he's had recently in particular and the letter that got a lot of media attention. but this is a company that has thousands and thousands of employees. the deal to sell off their pc business like this would have

been months in the making, possibly even before these overtures were made. i think more important is the television business has been losing money for four quarters. it's basically an admissimissio the company that they're never going to be able to turn that program into the black. and, you know, a net loss of 110 billion yen is not insignificant. but i think you have to give this restructuring a little bit of time because the cost savings aren't going to kick in until a few years later. when they do, it will be saving the company about $1 billion a year. >> kaori, thanks for that. more to come later. meanwhile, here in europe, we're just over an hour and 10 minutes into the trading day and we are up for european equities

and doe jones stoxx 600 just about 8/2 advancers currently outpacing decliners. ftse, very slim gains. this morning, up 17 points, about 0.3%. the xetra dax is up 0.5 %. the cac 40% up 0.3% and the ftse mib up 0.75%. the nikkei just down 25 points. dollar/yen, not huge movements in the currency markets. we'll get to that. the hang seng is up 0.7%. the kospi up 0.8% and the asx in australia is up 1.2%. keep an eye on treasury yields. 2.58%. a little higher on the yield, 2.66%. we did nudge up on the session yesterday. ten-year bund yields, 1.674%. let's talk about the currency market. still below 1.63 for serlg. the move below that yesterday

was just a nudge weaker than where we thought he were going to be. aussie -- slo aussie/dollar, still around the lows at .8949. euro/dollar, 1.3524. 1.3477 was the two-month low that we hit at the beginning of the week. jules. >> stephane is still with us from ubs. you've mentioned in your note this week that investors are still very concerned about what the impact of emerging markets will be. on developed markets, you say there's not going to be a big issue, there's not going to be contagion effect. everybody is saying that. >> first of all, i do agree that it's a consensus view. again, to make it clear, we do not think it's big enough to

contaminate dm. but let me give you two numbers. if you look at the size of the yen in the '90s, it was a third of the world economy. now it's about half. so problems are much bigger. but the exposure and the link to the yen is much bigger than it was before. so we all look at this story and say, look, digestment is not big enough. but again, that's my central case scenario. but i don't think the confusion is that straightforward. >> based on what you're saying there and what other analysts are out there saying right now, this is a great opportunity to buy u.s. equities, to sell u.s. treasuries and to sell gold. >> yes, definitely. that's exactly our position. unfortunately, we had this position a few weeks ago. >> did it hurt? >> a little bit, to say the least. but i do think that the right position -- we do have that confirming the yen recovery.

again, it should be a central case scenario, in which case yes, i agree. and treasury are very expensive from my point of view. >> yes. cheap doesn't mean they get more cheap or more expensive, do they? >> no. i would agree. >> fair enough. more from you. now, up next, fast cars in the slow lane. aston martin recalling nearly all the cars that it made in the last seven years because of a part that was made out of counterfeit plastic. why is there plastic in there, anyway? it's an aston martin. we'll have all the details, next. [ park sounds, sound of spray paint ] ♪ we asked people a question, how much money do you think you'll need when you retire? $500,000.

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all right. the bank of england is meeting today. they're not far away from their unemployment threshold of 7%. so what will they be talking about? helia is outside the headquarters. hi, helia 37. morning, ross. how are you? yes. today we're not expecting a rate hike change, but what we could get is a statement later today from the bank of england alluding to the inflation report next week. and it's all about how fast is

the uk recovering because it's recovering a lot faster than our canadian bank of england governor and resident has expected. so far, unemployment has fallen, as you said, very close to that 7% threshold. so he may have to eat humble pie as he widens the scope for forward guidance and waits for productivity to return, whether he looks at wage inflation. but what is sure is that he does want to keep interest rates low, historically low. wait until next year, we think. and yesterday, we had a warning from think tank, the institute for fiscal studies about the fact that even despite the recovery in the uk, we've got a lot more pain in terms of austerity to go. however, they were saying in terms of their macro outlook, that it could be possible that the recovery has gained enough pace that the cost of living

crisis that labor has held on to would recover would be sick much faster than expected. i spoke to the director of the institute of fiscal studies. let's have a listen. >> the economy certainly does look like it's recovering nicely at the moment and the best estimates are that that will continue over the next few years. what's really uncertain is about how long that can go on for before the economy hits its capacity. if the budget of responsibilities is right, then you would need to do everything is government is saying it needs to do to fix the problem. but if some of the other independent forecasters are right, you probably need to do less. the problem is we won't find out who is right for some time to come. >> what should the final take away be inspect on one hand, we might not need austerity quite to that point. there's still a lot of spending cuts in the pipes.

on the other hand, there's still an awfully long way to go in terms of spending. >> another thing we had from the institute of fiscal studies yesterday was about the kind of recovery. remember, much of the growth that we saw last year in terms of gdp was fueled by consumer spending. and they were predicting that actually that might slow down this year. we might get a bit more of those balanced recovery this year. a lot of corporate spending. so interesting news from the ifs yesterday. might be a bit interesting, finally, with a statement. but the big news from the bank of england will be next week, ross. back to you. >> helia, thanks for that.

plenty more to come from helia. we'll have that bank of england rate decision at 13 o'clock cet, 12:00 london time. given what we've seen in the markets in the last few weeks, the outflows, in emerging markets in particular, you've seen them flowing into europe and to japan. >> yeah. i was very surprised. we wanted to see -- going back to your question, contamination, etcetera, obviously one of the usual suspect is japan. very high cyclical market. the japanese market went down a lot. we thought it would be flowing from japan. the second highest from europe is -- >> that's foreign inflows? >> that would be foreign,

essentially. so, again, that is actually an encouraging signal because it tells you you don't have a broad based sell-off. it's very much an em story for the time being. >> given what we're seeing with the nikkei over the last -- what is it, two weeks? the correction that we've seen there. and it is talking about all these inflows, foreign inflows by etf. >> well, the foreign inflow would not be big enough to counterbalance the sell-off in the nikkei, for instance. but the point, i guess, is that we have a debate on whether it's a global problem. >> and if etf flows out of em products -- >> central pm?

>> yeah. >> equity, yes. but what is very interesting is investors and fixed income in em has been very sticky, much more than we had expected. just to give you a number, about 15% of yen debt was held by foreign. now it's 35%. the risk is obviously at the same time you have an overreaction and then a story about an em adjustment becomes the full balance of payment. it's not happening. >>. >> i wonder now whether people just decided it's either equity or it's solid sovereign debt which is treasuries. and actually forget about the em to a degree. >> yeah. that's probably true. but you also have to keep in mind that some of the yen debt, not all, but some of the yen debt has suggested lots. you get paid 11% fees on the

resident yield. that's 7.5% rate. will you get paid in spain? i would not have the same argument for clarity, for instance. but in some cases, actually, i think a big part of the adjustment, at least in terms of interest rates, not fx. i still believe the real has to go down. but in terms of interest rates, you get paid presumably well. now, if you drive an an tin mart yip, like you do -- >> i wish. >> jules has to take hers back to the showroom. the luxury carmaker is recalling 17,000 of its cars, over a possible defective part. aston martin says a chinese supplier was thought to be using a fake plastic material in part of the accelerator pedal.

now, the recall includes all of its drag models built since 2007 and all right hand drive models built sips may 2012, which affects nearly 75% of the cars around that period. it's not a mechanical issue, just a bit of plastic that you stick on is part of the accelerator was not the piece that it should have been. so there we go. aston martin retail up with, of course, 200,000 which makes a recall even more surprising. so we happen to know, do you think aston martin is overpriced? what would be your dream car? let us know. you can get in touch with us get in touch with us by e-mail, wor worldwide@cnbc.com, or tweet us @cnbcwex. >> they came out with a really

small model, an aston martin mi mini. >> that sort of thing is -- it's in the shop for a day, a morning, and then it's out, i imagine. we've been speaking to ceos all across europe and we've been asking them about the challenges facing their businesses. this is what some of them had to say. >> you know, great companies like this, and they are really as we are called to the business, they are a key lever to develop our business around the world. so i think there is a mixed balance. but it's clear that the taxation in the eurozone is unofficial in france is not really in favor of companies' performance. we've seen the impact in terms of egypt for the winter, what we've had to do to remix our programs. and that's the biggest issue for us today. and fuel the currency volatility. >> certainly this -- what i

would say is kind of a correction in the number of different markets. certainly start in the emerging markets, but spilling over into the developing markets, as well. we'll see how long that runs. i think we're still fundamentally relatively positive. constructive on the markets longer term. >> competitive pressures, the industry will have had a pretty good year in 2013. discipline has been around during the -- since the financial crisis. it's a question of whether that discipline holds or on the back of growth despite the u.s. economy being tough that every start is undermining each other. still to come on the show, come together, eagles fans. a really big piece of beatles memorabilia is going on the auction block. it expects to reach six figures. more details, right after the break. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.

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warns investors it will cut 5,000 jobs. european markets trade higher following asia into the green. policymakers prepare to unveil their latest rate decision. but will the ecb make a move to back deflation? troubling signs for twitter.

shares tumble, investors rattled by a key number. the company's first earnings report. user growth is slowing. and daimler posts a jump in quarterly profits, telling investors they expect growth this year. we will check in with the ceo first on cnbc in just over an hour's time. we're an hour and a half into the trading day here in europe. shares are making some gains. the ftse 100 is currently up 0.3%. the xetra dax up 0.6%, cac 40 up 0.5% and the ftse mib up 0.8%. treasu treasury yields now 2.67%.

gilt yields, 2.7%. we'll be looking ahead to the bank of england/ecb later. ahead of that, dollar/yen, 101.40. not much change in 24 hours. euro/dollar, 1.3523. cable, just below that 1.63 mark which we moved to yesterday post the services pmi figure. that's where we stand with our asset class services. jules. >> well, is it a big day of earnings here in europe? the first one i want to point out is alcatel lucent up over 9% here, surging despite posting a net loss of 1.3 billion euros last year. that's after a write-down in its mobile business. speaking first to cnbc, the ceo

said his plan for the company to be cash flow positive remains on track. >> it should be noticed that the country still is only about 15% of the total revenue, but it's going double digits. so we see a lot of good signs, i think, which position us well for 2014. >> okay. well, i think we just gave you the lowdown there from the ceo of -- i apologize. investors unimpressed with dassault systems. you heard there from the ceo saying that the company was still seeing growth, though, in emerging markets. now, another one i want to point out to you is that daimler, the shares there up over 3.8%. they posted a 45% surge in the fourth quarter boosted by higher margins in its luxury car

division, mercedes benz. stay tuned because the daimler chairman will be speaking first to cnbc at 11:25 cet. the company says it will continue to cut costs to offset demand in the year ahead. finally, qe travel up there in the red again. down 2%. the world's biggest operator operating an underlying loss for the fourth quarter. the ceo says 2014 is looking brighter for the british company. >> our business remains resilient even in difficult times because of the importance of the holiday. but i think what we're seeing is more people trading up, more people taking long holidays. we've now got the new dream liners, which are very successful. they fly much further. >> and we've also got danske bank here up 3.25% after the

danish lender announced paying a dividend to shareholders for the first time since 2007, despite a pretax profit of 2.86 danish crowns lower than expected. we will be speaking to danske bank's cfo at 11:25 cet, as well. i also want to draw your attention to credit suisse, currently down just over 2%. nearlily zero profit growth as a result of litigation costs continue to go weigh on the business. carolin is in zurich. she's been on the road all week. carolin, talk us through some of the numbers. legal costs regarding tax evasion, the sale of mortgage-backed bonds. but what about libor and what about the investigations going on in fx? is credit suisse actually less

impacted by these? >> you're absolutely right, julia. yes, it's dealing with a u.s. tax investigation, it is dealing with a u.s. mortgage situation, like so many other banks. but the impact from the fx investigation and libor, remember, they've been relatively limited. so the hope is that the skies are going to be a lot clearer after the u.s. tax and mortgage situation is out of the way. coming back to the share price, it really says it all, doesn't it? this resolve wasn't very convincing. there are three things you need to know. it missed on the private banking side with inflows, margins and profits below expectations. on the brighter side, we've got the capital position strengthening, leverage ratio higher than expected and credit suisse was able to pay out a dividend in cash. finally, investment banking revenues for the fourth quarter up by 35 basis points, advisory

underriding business. we see strengths there similar to what we saw at some of its rivals, though fixed income is still pretty weak. but when i spoke to the ceo this morning, he told me he expects this positive trend to. into the first quarter. >> well, we've said actually that so far our results are reasonably similar to what they've been in previous starts of the year, which as you say are usually seasonally relatively strong. largely, we're seeing the same kinds of trends but it is different in different areas. certainly some of the challenges in emerging markets have impacted that business there. but we've seen a pretty strong start in a number of different areas. we'll see how the rest of the quarter plays out. >> ross and julia, the swiss banks earnings season is done and dusted. what's the verdict from the analyst community? at least according to goldman sachs, they want to be buyers of ubs, they want to be sellers of deutsche bank, and they say credit suisse is somewhere in

the middle. back over to you. >> thanks for that, carolin. in the u.s., twitter has reported its first quarter results since going public three months ago. the firm's adjusted earnings beat forecast because revenues more than doubled. however, usage has slowed. it was the lowest sequential growth rate and below what was expected. another key metric, timeline views. this is how many times people visit twitter, refresh feeds or look at things like search results. that was down 7% from the third quarter. as a result, stock off 17% similarly in frankfurt at the moment. better news for disney. its profit up as revenue jumped. results boosted by the box office hit "frozen," topping the lion king as the most successful

disney branded movie to date. profit grew for its tv network as growth at espn offset weakness at abc. >> we're offering product to consumers that they feel not only that they want, but that is well priced. i'd say as we look at the economy, we don't really -- you know, we see a relatively decent economy for us today. we don't really have much visibility into the future. it's hard to look ahead and feel overly confident. we just feel that we're very, very well positioned in the marketplace. >> disney up more than 3% in after hours trading and it's up 3.5% in frankfurt. sony wants to gain a wash in red ink due to struggling

electronics business. it now expects a $1 billion loss for the year instead of the $300 million profit it had forecast. but just what is losing all that money? sony's tv business, which it says it will now spin off. and its pc business, which is also planning to sell to japanese investment fund. it wasn't just sony that disappointed investors, though, this in tokyo today. expecting to post a net loss for the ninth straight fiscal year in 2013 is renesas. from tokyo to tell us more. >> hi. the struggling semi conductormaker says restructuring costs weighed heavily on its profits.

despite some negative surprises, other major firms are posting positive full-year outlooks today. mitsubishi industries was one of them, forecasting profits up to $150 billion yen. it's expecting to post special profits with hitachi. suzuki motors says it will raise forecasts. and the weakening yen pushed up profits. that's all from the nikkei business report. back to you. >> thank you for that. for tomorrow, we've got growth in india being in the spotlight as its advanced gdp estimates for this fiscal year. we get third quarter results

from taper power while in japan, their corporate earnings story continues. we've got the likes of olympus, isuzu, marubeni and inpex among those reporting. still to come, i've been doing checking out london's shattering new exhibition. it's amazing. we have a renown glass blowing artist. he told me how to trying to break the glass ceiling of art, next. hmm, 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...

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with u.s. shale gas production booming and the hangover of the arab springs still fresh, they're looking to diversify its economy. hadley gamble spoke to two of the top ministers in the country and talked about welcoming more women into the workforce. let's take a listen to what he had to say about the impact, too, of the u.s. shale boom. >> in our view is that it's going to have a peak and then decline around the mid 20s or so. the product, as our -- in the minister of petroleum and the

ceo have repeatedly said we welcome the diversification of energy sources because it reduces the pressure on us to produce more. that is one side. the other side, i don't see it over the long-term impacting us. maybe in the short-term. we have enough ammunition to deal with it. >> and we're now three years on from the arab spring. and we're seeing public spending in saudi arabia slowing down a bit. does that reflect a government feeling that you've gone enough to promote stability in the kingdom, you've done enough to promote growth. >> i wouldn't say have done enough, but we have come a long way. we have prepared to many projects and programs. that one side of it is that yes, we have now in the pipeline a

huge number of projects. indeed, the cost of those projects that are now under implementation is clowe to 2 trillion. that's a very large number. that's one side of it. the other is that in the past, we have been underestimating the expenditures side. so we caught up with that and now we are -- now getting more accurate, i would say, not very accurate, but still close to that, yes. >> haddy gamble joins us now. hadley, you said longer term the u.s. shale isn't going to have an impact from saudi arabia, yet at the same time, they're adjusting lower the amount that they're planning to spend. so they do seem to be making adjustments even if they're not admitting it. >> they say the break even price

is going to have to remain around $85 a barrel. and the other challenge that they're facing, really, is a consumption issue, as well, because you have a growing population. and there's no sense of energy, you know, in terms of subsidies. there's no sense of taking down that consumption. so it might end up becoming an importer of energy. so this is interesting and this is something they're going to have to watch. and in items of the macroeconomic outlook, the finance minister saying he's very positive about it. but then at the same point, any fluctuation in the equity market is something they're going to have to watch. >> and you made the point about 28 million population, the vast employment of young people. what about the unemployment rate? the same structural issues remain. >> unemployment is a bit on of a problem. when i spoke with the economy minister, he basically said to me they're very proud of the

fact that it's 5.6% among ex pats and saudi nationals, unemployment is at 5.6%. however, in terms of saudi nationals, it's still around 11.7%. if you break that number down even further, about 30 ers of the unemployed are young people. if you break that down .look at male versus female, male unemployment is around 2.8% and the rest of that is female unemployment. how are they going to create sectors for women to go into? when i speak to women in saudi arabia, professionals, they say we're sick and tired of hearing the story of women coming out of saudi arabia is whether or not we can drive. it's a much bigger picture. in terms of what's happening in saudi arabia, check it out. >> what time is it on tonight? >> 2300 cet. >> we'll look out for that. if you, like hadley, drive an aston martin, obviously

probably be taking it back to the showroom. they're recalling cars made since 2007. a chinese supplier was thought to have used a fake plastic piece in the accelerator. all of its right hand drive models built since may 2012. i said earlier there wasn't any -- to this. nothing has happened, but aston martin have said it may cause some stickiness of the acceleration, although i don't think -- >> could it melt? does the accelerator pedal get hot? >> depends how much you press it, i suppose. >> good point. >> they're quite expensive. >> yes. cost you a little bit. >> 200,000, which makes the recall related to counterfeit plastic even more surprising. are they overpriced? that's what we want to know. what would your dream car be? >> i can't say i really have a favorite car.

>> all right. they are overpriced now. so tell james bond. that's from ed. >> one doesn't pay for his own, though. >> no. the taxpayer does. if you want to join the conversation here on "worldwide exchange," get in touch with us. >> i was going to ask the sweet handles, but you did it for me. talk to me about your -- >> some people think cars are art. from the background of a simple glass blowing, huge sculpted chandeliers, dave chapule had made a make for himself. he's launched a brand new exhibition. i was down there yesterday. have a look.

it may be glass, but not perhaps was we know it. the weird exotic shapes and colors. welcome to the world of one man who on his own has turned glass blowing into an art that can be truly breath taking in its scale. dave chahulie. >> what i learned a long time ago, maybe back in the 80s, maybe even the 70s, is to let the glass kind of make itself, use the glass and the heat and the centrifugal force and the gravity. there are very few tools that i use. >> you said you think more about space than the objects. what do you mean by that? >> if i make a basket or a cylinder, i usually don't think of them as one object.

i think of them in a group. >> chihuly dipped into other mediums, like the kneon in this period. >> i've experimented with neon. the piece here is totally unique. it's on a platform and it's about ten feet long with this beautiful midnight blue color. i'm quite proud of this piece. >> talk to me about the pergola, which is here in the middle of the entrance hall. >> it's got 300 or 400 pieces on the top and the light projects down through it and you can look at it. it can also project the images on the floor. i've never put a piece in a gallery before. it's the first time we've done that.

>> and you're making these big pieces for museums and exhibition space. do you still create small pieces for the individual collector? >> yeah. small for me is maybe, you know, this size. and so i started to make pieces that said and up. you know, i've done pieces as high as 60 feet. so it goes anywhere from 2 feet to 60 feet. >> so you go from 2 feet to 60 feet, what's the price bracket between those two? >> probably 25,000 to as high as 10 million. >> what have you learned along the journey about how you combine your passion with business? >> i don't know. i was just lucky. a lot of people want to tell about my work and i was happy to make it for them. a lot of museums wanted to show

my work and, you know, i don't even -- i can't even explain it myself how it all happens. >> where do you want this to go to? where would you like it to go to? >> i just, kind of in a way, along for the ride, you know? i've always got an idea. if somebody gives me the opportunity, i'll make something. >> wow. >> and there we go. it is wow. and it is worth going down there. it's amazing. he's got this -- he's based in tacoma, seattle. and he develops these on a boat house where they do the blowing. he lived there for a while, lives above the shot. he doesn't do the blowing himself. he hurt his eye in the '70s in a car accident. but he directs the people. there ever there's four or five guys there that are all kind of handling it.

it is extraordinary. some people wonder whether it's art or craft. he doesn't really care. >> i feel like art is something i couldn't create myself. modern art, throw some paint on to a wall, that i think is art. and never mind a car. i want kind of like an entrance hall, but i want a light installation in an entrance hall in a house, please. >> we'll work on that. >> thanks. >> we won't make that out of glass. has twitter's wings been clipped? >> we'll look back at the possible earnings and just what is left for twitter. coming up. [ male announcer ] the wright brothers started in a garage. amazon started in a garage. ♪ the ramones started in a garage. some of the most innovative things in the world come out of american garages. introducing the lighter, faster cadillac cts.

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welcome to "worldwide exchange." i'm julia chatterley. >> and i'm ross westgate. the headlines today from around the globe. >> sony warps investors it will post a billion dollar loss for the year. it will cut 5,000 jobs. markets are trading higher in europe following asia into the green as policymakers prepare to unveil their latest rate decisions. will the ecb make a move to battle deflation? >> shares of twitter tumble after a rattle in the key numbers by the company's

earnings report. user growth is slowing. daimler is expecting a drop in quarterly profits. we'll catch up with the chairman first on cnbc in 30 minutes. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> if you're just tuning in, thanks for joining us here on "worldwide exchange." let me give you a look at how these market res faring ahead of the u.s. open. stocks yesterday failing to post back to back gains. they did finish on the session highs yesterday. it looks like we'll continue to see that momentum continuing in the session today. we've got the dow futures indicating higher by around 64 points so far in this morning's trading. we've got the nasdaq futures higher here by around 15 points and for the s&p 500, also indicating higher here by around

7 points this morning. interesting session in the asia markets. we did see the nikkei slumping, but the rest of them were in a green territory. the big story here, sony selling off its pc and television business. how activist shareholderism taking effect. we'll talk about that later on. positive for the european markets. the ftse 100 here higher by 0.6%. the german markets biggest outperformer today on the markets here in europe, 1 % higher. french market, 0.9% higher and the italian markets seeing a bit of an outperformance, up 1.2%. let's take a quick look at the asian session. i mentioned it just earlier, as you can see. we've got the aussie market up 1.2%. the hang seng, 0.7%. the nikkei, underperformer continuing to see a weakness in this market in particular. down 0.2% in the asian session. ross. >> that's where equities have been trading today.

focusing on the bank of england/ecb here in europe. treasuries, 2.68%. mixed data yesterday. nonmanufacturing ism okay. adp did drop a little bit. up 175,000 private sector employment growth. keep our eyes on bund yields and gilt yields, as well. on the currency markets, the pound, kind of where we were yesterday post the services pmi number. nothing really expected from the bank of england today. the aussie/dollar, 0.8948. dollar/yen, 101.52. this is kind of where we were this time yesterday. similarly, also for euro/dollar, we hit that two-month low of 1.7477. currently at 11.7521. jewels. >> thanks, ross.

central bankers face a challenge at their meeting today after falling inflation in the eurozone came closer to slipping into deflation. geoff and annette are still in frankfurt. geoff, as i see it, you've got three challenges. disinflation, tighter monetary conditions and credit points from the deleveraging that we're seeing. is he going to continue to manage it with words alone today? >> it's interesting what the markets are telling you, isn't it? ross running us through the euro/dollar rate here. and the fact that we came off the 1.3477 off 1.35. and the markets thinking with no announcement today that is materially more dilutive, we could go 1.36. the indication from the money market seems to be we're not anticipating any real change here in monetary activity. >> yeah. but i'll tell you the story once again. back in november, it was the same. you know, when they showed us on the -- proudly the chart of the

euro/dollar exchange rate and we saw a huge movement after a surprise move of the ecb. interestingly, it is, as well, the case that the recent polls really like the beginning of this week are showing more analysts, they are thinking that there might be some movement in the rate. of course, the polls from back -- from last week don't show the same picture. so there is a potential for rate cut. >> yeah. but you know, the problem is what different does it make, anyway? so this key policy rate is, what, 25 basis points. if they sliver 15 basis points off that and then we go negative deposit rate, what difference does it make? >> i think that's a very strong signal if you go negative with the deposit rate, isn't it? >> it's another signal, i would say. in a way, we were discussing this off air. we were saying, yeah, but what does that tell you about how dysfunctional european economies are if we have to go to a negative deposit rate to try and

stimulate further lending activity? >> yeah. one last point on that, i think the rationale is to weaken the euro to the u.s. dollar. >> that doesn't seem to be working at the moment, does it? let's send it back to you on that point. i think what you've learned here is that the analysts are all over the place. a number of the banks are making calls for cuts in rates. that is not a consensus, by any means. we are waiting to see what mr. draghi can do here just to convince the market that he remains committed to low monetary conditions. jules, ross, back to you. >> thanks for that. we've got that rate decision at 13:45 cet. manager of the press conference at 14:30. joining us with his view, tim skeet from the institution of pcm at rbs. morning. >> thanks for joining us, tim. what do you think? >> our house view is there will be a cut. going back to the point your

colleague just made, why bother? and the answer is the signal. it's incredibly different right now to know what to do. >> the last signal didn't do anything. >> well, you say that. you're always trying to interrupt ahead interpret ahead of what they do. the fundamental problem we have is is there growth, how much growth? how do we fuel growth? one of the problems we need to get back so is what's happened to the banking industry, how fast is it shrinking? is it balance sheet capacity to fuel the growth? what draghi says about that is going to be equally interesting, right? >> surely the big signal here is what else, what else he can do. >> exactly. >> what else can he do? >> he's talked about monetizing all sorts of other assets, providing the finance or securitization. cut back a few years. securitization was a word not used in pligolite company. now it's coming back on to the economic agenda. what we're looking for is how

can we take the existing frut and releverage the without causing the problem that we had before. that's the challenge. >> the balance sheet is shrinking. we can't escape that fact. one of the things that's been muted over the past few days is sterilizing what they've made -- >> absolutely. >> is that a move we could see today? >> maybe we do. but what we're trying to do is better direct the flows. at the end of the day, we're beginning to see what the impact of all the different collective po policies we've had, the reregulation of the banking industry. we now need to deal with the symptoms of it, if you like. and i think the ecb will be trying to be creative to see how can they support the industry. remember, we've got the asset quality review still looming over the banking system. you've got people still looking to deleverage, to shrink their balance sheets. is that what the real economy needs? is it? more risk within the banking system? because lending is risk at the end of the day. what we need to find is a balanced way to continue to foot

fuel growth, but without the banks actually loading up. >> how do you trade this? >> well, i think you've got to look at it -- banks, in my view, where are you going to go in terms of investment. >> the fixed income is very confused. but you've got core europe looking good and you've got peripheral europe looking very good. so you've got to look at the system and say actually, europe is looking better. you can buy the banks, the senior, you can take a look at the periphery. we've seen great performance out of pain is something i've said consistently for the past two years in the face of all sorts of ridicule from some of your colleagues. >> surely not. >> surely not, no, absolutely. but just look at the way in which they've gone about sorting themselves out. look at portugal and so on. >> the spreads have narrowed a lot, you think there's more to go? >> i think we have pore to go because i think if we believe in the growth story in europe, if we think the european economy is

picking up, and if there are lots of signs anecdotally that it is, that's what the ecb is all about right now. how do we make sure that we don't snuff it out too early on? same problem with the bank of england. so i'm bullish still. i think let's put our money there. >> always good to speak to you. nice to see you. tim skeet, from rbs. let's give you a look at what's on today's agenda in the united states. weekly jobless claims are out at 8:30 eastern. also at 8:30, we've got december trade deficit numbers and fourth quarter productivity and labor cost date data. we've got boston fed president eric rosengren talking about the economy. later on this evening, we've got general motors reporting results before the opening bell, as well as 21st century fox, aol and the "new york times" among others. after the close, we'll hear from activision, linkedin and news corp. twitter reported its first

set of results since going public back in november. investors were not impressed with lackluster user numbers. julia boorstin filed this report. >> twitter's announcements disappointing for investors. down more than 17% after hours. this despite better than expected revenue growth of 116% to 243 million while earnings came in at 2 cents per share, excludeing one-time items beating expectations of a loss of 2 cents per share. but the loss determined on how slowly the company added subskrooip scribers to end the quarter with 241 million users. for the first time, timeline's use, a measure of usage, declined from the previous quarter. they're confident in twitter's ability to scale revenue by expanding its global reach.

he says the plan is to add users by making twitter easy to use and especially easier for new users to start using and making it more media rich with video, making it easier for private conversations as well as public ones by organizing content by topic so people can browse all the conversations on twitter more easily. this game plan didn't reassure inesters as the stock dropped over the course of the call. over to you. >> kind of interesting, the metrics. >> i'm not surprised by that share reaction. it was trading at 30 times 2014 sales. it was twice as expensive on that metric as facebook. if you look at their mobile ad revenue in the u.s., twitter takes people at 2%, facebook at 16%. there's potential there, but can they monetize it? >> there is all of that. interesting the difference in some of the notes. you know, rbc saying this morning, weaker than expected

user metrics. they believe the latter will eventually inflect up, right? so they've got to outperform. others say that's the user deceleration is over-shadowing everything else, which is clearly the consensus view on the stock. >> it wasn't just about the revenues, it was about the turnover time, the amount of time people were refreshing. is this a mainstream platform for news and for sharing information or isn't it? there's two problems there. >> yeah. have a look. now, sony, meanwhile, has warned investors it will post a full year loss, but investors aren't too put off. we'll get the latest from tokyo. [ male announcer ] the new new york is open. open to innovation. open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york.

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mario draghi faces a clem ma at the ecb policy meeting. the rate decision due in just over two hours. a blockbuster movie about a frozen winter wonderland heats up disney's earnings lighting a fire under the company's stocks. and german carmaker daimler revs up quarterly profits by 45%. we'll be speaking to the chairman fairley shortly. no change at the bank of england, that's what analysts

are expecting as the ecb holds its monthly meeting later today. we've got helia in london outside the bank of england. you've got a bit of a policy headache going on right now, helia. but is it going to wait until the inflation report next week to address it? >> i know. viewers might think that i'm standing outside the bank of england and, again, nothing is happening. but honestly, something will happen because the debate about the uk economy, how it's growing, how fast it's growing and how far it can grow in relation to precrisis levels is really gathering pace. as one commander in chief has been in the news today for altogether different reasons, it's all about the economy, stupid. and as you said, we've got one eye towards the inflation report next week. because mark carney, the canadian bank of england governor might have to eat a bit of humble pie when he updates or abandons forward guidance, depends how you look on it because a key metric for the

bank of england was unemployment. of course, that's been falling much faster than expected. what he will say is the uk economy still needs time. we have an issue with productivity. we still need some wage inflation. until we see some of that back in the economy taken up, until the time for interest rates to come up. so we probably won't see interest rates to go up, to conclude for a while, but we might get a statement later today and, of course, all eyes next week when the bank of england .and what they say on forward guidance. back to us, julia. >> thanks for that. we're also facing a second morning of travel chaos getting to work because the underground strike continues. the strike will end this evening. bus cues and train caps bringing yesterday's traffic to a halt.

>> we're always open for business and you're seeing that in the huge investments coming into london at the moment and nothing that i've seen in the last 24 hours is going to discourage that. of course, i apologize for the delays you've had getting into work. but 86% of our car users were able to commute as normal yesterday. and we've got almost 40% of the line going. and clearly there are lots of alternative ways for people to get into work. all the signs i'm seeing is that the londoners will not being deterred. still to come on this show, denmark's largest bank is to recommend its dividend payout for the first time since 2007. that despite fourth quarter profits coming in below expectations. we'll be speaking first to the cfo right after the break. plus, before we do that, a reminder, european stokes were to the up side, 9/1, advancers

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by 7 points on the s&p, dow up 67 points and nasdaq up 16. sony is warning of layoffs due to its struggling electronics business. it now expects a $1.1 billion loss instead. joining us for more is kaori enjoji in tokyo. they have big restructuring going on. i wonder whether we've been surprised by the extent to which they've gone. >> i think so, ross. i think the sale of the pc operation, although not a surprise, i think it was -- we didn't expect it quite so soon. we're selling it to a private equity company. and the spin-off of the television operation was a complete surprise. it's a very similar pattern to what we saw with sony computer entertainment which runs the play station business. and they're effectively spinning the two entities off. one is the complete sale, of course. these were the two bottlenecks

of the electronics division and has been a headache for the ceo since he came in nearly two years ago. i think that element was a complete surprise. these restructuring elements will be accompanied by further job cuts. where i am, this is a very difficult move to make. as explained by the ceo today because it is very difficult to layoff jobs here in japan. take a listen to what he is to say. >> translator: this was a very hard decision to make. my task is to turn around the electronics division and it's my responsibility to expand the entertainment and finance divisions so they contribute even more to sony's growth. >> for now, hirai-san is saying they're not considering a sell-off of the television operation, but they say next year will be the magic year. where finally the television

operations can push into the black. i think we're counting big time on the popularity of 4k, particularly in some of the bigger markets. but i think that remains to be seen. i think investors generally are going to applaud this move when the markets reopen here in tokyo on friday. i think the scale of the restructuring was beyond most people's expectations and i think it addresses some of the concerns, long-term concerns, that they have had surrounding this iconic company for many years now. >> do you think the team is high fiving this morning in the message that this business needs to be radically changed is actually sinking in? >> i think they were high fiving a long time ago when they saw the share price surge right after they wrote that bettlette. but in all earusness, i think investors have long been wanting to see restructuring at sony because they know the brand is very much worth -- a lot, especially in the developed markets, especially in some of the emerging economies, as well.

which is, of course, entertainment in the mobile gaming business and so forth. and they've always been talking about merging these platforms together. and i think that basic scenario is still there, but they had this big lag and this drag from these two divisions, pcs and televisions and those will no longer be there. >> kaori, fantastic. thanks for the update. >> danske bank shares higher after the bank is paying dividend to shareholders for the first time since 2007. this despite a pretax profit 2.87 danish crowns lower than expected in the fourth quarter. her nrik, by your own admission, these results are satisfactory. but can we say we're at a turning point for the business here? >> yes. it is a turning point for the bank. we are pleased with the end result of 7.1 billion, roughly

equal to analyst expectation. we are taking up a dividend again. we are satisfied with that. but on the other hand, we are still far from our goal in 2015 and the potential for the bank. but it is a step in the right direction. >> i know you've steam lined your operation, but there's talk that you should completely sell off your northern ireland business. is this something you should consider? >> i will not comment on any specific ideas. but we, of course, will also going forward into into all our business units to see how we can improve operations. >> henrik, you've got a dividend coming back. that's the good news. analysts still say costs are a little too high. >> i don't think our costs are too high, but in order to stay competitive, we need to do more

on our cost line. and that is also in our plans and that's also why we are guiding that our cost will come down roughly 1 billion into 2014. so definitely we need to do more on costs and we also expect our cost income rate to come down in 1 '14 and '15. >> is the fact that you're paying a dividend your way of saying, look, we're now through the financial crisis, that period is over? >> yes. we have a little bit more confidence in the future, in 2014 and '15 and it's also important for a bank, given our size, to pay what is expected to all our stakeholders, including our shareholders. so we are pleased to now pay a dividend of two corner per share. >> your trading income line always seemed to be more volatile than your competitors out there. are you concerned by the volatility pick up that we've seen so far this year or do you see it as an opportunity?

>> you're right. our trading line is quite volatile. the drop is due to the fact that 2012 was good and 2013 have on the trading line been a difficult year. but we are looking into ways of diversifying our income stream so going forward that trading line can be a little less volatile. >> citi's analyst yesterday suggestion your return on equity could double by 2015. you're reporting 5.3% now. they're suggesting a 9% return by then. does that sound reasonable to you or is that a bit too much in terms of expectations? >> our goal is that to improve our return on equity from 5% now until to 9% in 2015 and that's all -- that is where all our focus currently is. you can take into account also

that a much better result in our noncooperation in '15 will contribute, let's say, roughly one percentage point to that. but all our focus is now on delivering the guide to 12 billion in '14 in order to be able to deliver the 9% in 2015. >> henrik, we'll continue to watch those numbers, henrik, cfo of danske bank. sony warns investors it will post a $1 billion loss for the full year. the firm is spinning off its struggling pc business and cutting 5,000 jobs. troubling signs for twitter. shares tumble on the can company's first earnings report. user growth is slowing. plus a movie about a frozen winter wonderland boosts disney's earnings, lighting a fire under the company's stock.

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thanks for joining us here on "worldwide exchange." let's give you a look at how the markets are faring ahead of the u.s. open this morning. stocks not managing to post back

to back gains yesterday. that momentum appearing to continue here. we've got the dow futures indicating higher by around 68 points. nasdaq higher about 17 and the s&p 500 higher by around 8 points, too. let me give you a look at what's going on as far as the european equity markets are concerned this morning. gains across the board here this morning, as you can see. the uk markets higher by 0.7%. the german market outperforming here up over 1%. french markets, 1% higher, too, and the italian market adding to this week's gains, strong performance there up 1.3%. >> yeah. the best levels of the session so far. down 7 out of 10 for the major u.s. indices. clearly numbers out today including the german car group daimler is posting a 35% surge in fourth quarter profits boosted by higher margins. joining us is did i eter zetrecha, head of daimler. you've upped your dividend,

you've improved your margins, as well, as mercedes benz. what happens to profits over the course of this year? >> thank you for having me. as we just said in our guidance, we expect sales to grow significantly and we expect profits from ongoing business to grow significantly as well in 2014 compared to 2013. >> yeah. the profitability of mercedes benz, what's driving that -- going to drive the increase this year? you didn't start off last year very well, but things obviously changed around. >> that's correct. our business is driven by-product. we have launched a number of products being received very well by the market. we will continue on this course, the new c class for this year already has gotten great reviews

by the media and we're looking forward to more to come. therefore, we are very confident that based on product plus our efficiency programs, we will further improve our margins. >> you've also struggled with sales to china at the retail level versus your peers. can you give us your outlook for the rest of the year? >> well, it's known that in china we were falling behind our main competitors, significantly we have made many changes during last year and we're seeing these changing bearing fruit. so we are very happy with the development in recent months. this year started well, as well, with an increase of more than 40% for the first month. >> yeah. do you think -- what's the trick to cracking china or doing better in china? i also wonder whether the sort

of crackdown -- that may be the wrong word -- but government officials trying to stay less away from luxury. i wonder whether that also has an impact. >> well, first of all, for the brand of mercedes, we had to make a number of corrections in various areas, including the sales, structure, number of dealers, branding position of the vehicles and so on. and like everywhere, new products are giving us the momentum for new sales increases. all of this together has created the better momentum, which we think will further increase during 2014, 2015. as far as the total economy is concerned, and the impact of some directions being given by the government, we do believe that the luxury segment will

continue to grow at least at the same speed as the total car market, which is expected to grow, again, in a low two digit percentage margin. >> i realize that you're not connected with aston martin in regards to the product recalls that they've had to do, but can i ask you whether the troubles that they're seeing gives you concern about the quality of suppliers and also suppliers from the likes of china? >> well, i certainly cannot comment on aston martin's current business. what i can say is that their request to work closer together and to provide our components and technology will certainly give them a great opportunity for the future for new products to come to rely on the proven and very competitive technology which we owning. >> brilliant.

dieter zetsche, great to talk to you. if you drive an aston martin, the luxury carmaker is recalling 17,000 of its cars as a possible defective part. aston martin says a chinese supplier was thought to be using a fake plastic material in parts of the accelerator pedal. they recall into all of its left hand driving models built since november 2007 and all right hand drive models built since may 2012, affecting 75% of all cars built during those periods. now, aston martin's retail up around $200,000, which makes the recall related to counterfeit plastic even more surprising. but we want to know, do you think aston martin is overpri overpriced? and what would be your dream car. morgan tweets my droeam car is

00a. >> slightly overpriced, as well. what a perfect way to get back into the shop to see the new aston martin. >> that's a genius point. >> you might consider whether you want to buy another one after having to go back for a plastic part. >> keep your e-mails coming in on that. >> or tweet us, of course. disney shares posted higher after record earnings in the first quarter. the firm stealing the show with box office trumps like "frozen." beat expectations up from 33% from a year earlier. operating income at walt disney's studios up 75%. speaking to cnbc, the cfo bark iker says he's pretty confident about his company's position.

>> we're offering products to consumers that they feel not only that they want, but that is well priced. i'd say as we look at the economy, we see a relatively decent economy for us today. we don't really have much visibility into the future. it's hard to look ahead and feel overly confident. we just feel that we're very, very well positioned in the marketplace. >> alex joins us for a little bit more. that's the film business, the media business. we don't have much businessbility. that's the thing with film. you don't know. for everything you still don't know whether it's going to be a massive hit or a bit of a turkey, do you? >> you can be lucky and have three hits back to back, to influence performance at a given quarter. likewise, you could have no hits and that would depress earnings. so it's the benefit of diversification. but certainly in the last quarter, they've produced blowout numbers. >> if you strip tout film, what

is the rest of the business? >> it's growing. it is a media business. espn is growing. the other aspects of the business are growing. what we've seen is a pick up from the second half of last year into this year. consumers have a bit more money, there's a bit more advertising. >> and there's a weak spot for them. if you look at what time warner said, there's still a problem here, isn't there? >> there may be a problem at the margin, but overall the trend is a positive one. don't forget, we have the benefit of the olympics to be felt. both of those are blockbuster events that tend to concentrate advertising. >> don't be fooled by the numbers, perhaps. >> not necessarily. everything i'm hearing from the companies i follow here domestically, but also internationally, is that trading is as good as it's been for quite some sometime. >> and you're saying all numbers reporting a better -- >> absolutely. and it matches what we're hearing about the economy in

general. media companies by .large tend to track the economy. >> warner. >> with warner, you know its similar trend, the big picture there is the spin-off from the publishing business. frankly more sexy nontraditional media businesses. that story is more about spinning up the publishing asset. >> good to see you. thanks for that. now let's take a look at today's other top stories. twitter reports its first set of results since going public in november. the company beat forecasts as revenues more than doubled. but analysts are focusing on user growth. 241 million users during the course are up nearly 4% from the third quarter, but that's the lowest sequential growth rate since twitter began user numbers. refresh feeds, visit twitter fell 7% from the third quarter.

shares fell 18% in after hours trade. a similar performance as far as we can see in the german market today, down just shy of 19% in trading today. now, atlanta fed president dennis lockhart says the fed's $10 billion tapering of its bond buying program says although policymakers could adjust the pace if necessary to face a material change in the economy, especially for the worst, could make them re-evaluate. but he says it's highly likely that the current pace could continue. lockhart says he's not sprieurpd by the recent market sell-off. >> now, they might have been yesterday, but they're still very much today. a really big piece of beatles memorabilia is going on the auction block. a section of the stage back drop signed by the group is going up for sale in april. it's expected to be the largest

set of autographed piece. coming up, coke adds some fizz to shares of green mountain. buys a big stake in themaker of those single cup coffee machines. more on their plans for the future and what that could mean for the competition, coming up.

welcome back to "worldwide exchange." let me give you some headlines. mario draghi faces an inflation dilemma at the ecb policy rate meeting today. a blockbuster movie about a frozen winter wonderland boosts up disney's earnings, lighting a fire under the company's stocks. daimler revs up its quarterly profit by 45%. they expect sales to grow significantly. and coca-cola is adding some pop to green mountain shares. what's going to happen, seema? >> a big beverage deal here, ross. coke is buying a 10% stake in green mountain for $1.25 billion with an option to increase to 60% over the next few years. now, under their ten-year deal,

the companies will develop a line of coke products for green mountain new cold drink machine. that will be able to serve soda, tea, and juice. the machine could go on sale as soon as october. green mountain's keirig or k-cup machine has made easy the single cup brewing at home or the office. the deal makes green mountain the exclusive global partner for the sale of coke branded pods. but ceo brian kelly tells reuters can company can sign contracts with other cold drinkmakers, including coke's archrival, pepsi co. the coke-green mountain deal comes as soda stream is making a push to get its machines into every u.s. kitchen. they have advertised in the past two super bowls. but soda stream has been under pressure amid competition and slowing growth.

soda stream after hours, in frankfurt, down about 5.6%. green mountain soaring more than 40% in after hours. checking shares today, we'll bring that board up, shares up 45% in premarket trade. green mountain has been a favorite of short sellers. now most notably david einhorn. he's been critical of the company ever since devoting an hour-long presentation at the value investing congress more than two years ago, questioning its accounting and transparency. iron horn isn't commenting about the coke deal and it's unclear if he's still shorting the stock. back of to you, ross. have you had your coffee this morning, seema? >> i absolutely have. i can't start the day without it. >> tea, much better for you. steven, thanks for that. good to see you. plenty still to come. >> twitter's earnings report as a public company is facing concerns about whether people are losing interest in the site. >> is twitter overvalued?

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ahead of the u.s. open, european equities are at the best levels of the day. we have percentage gains, the xetra dax, cac who and the italian market the ftse mib. the ftse 100 is a bit of a lagger after being up 8 points yesterday. this is how futures look, jules. >> we've seen seven out of ten of the last sessions in the red. green across the board so far. the dow jones indicating higher by around 66 points this morning. the nasdaq higher by around 16 points and the s&p 500 around 7 points higher there, too. so we'll have to see how the session plays out. but for now, it's in the green. twitter has reported results since going public in november.

investors are not impressed with lackluster user growth numbers. bruno delmara is in new york and joins us now. bruno, as far as i see it, they have two things to prove here, that they can reach more advertisers and that they can increase the users and the turnover. are they going to be able to do that? >> well, it sounds like when looking at the financial results, a resounding yes for one of the questions and probably a no for the second question. they had very interesting financial results from pure financial perspective, incredible results. revenues up 116%. they have strong to profitability when you exclude stock options, both of which weigh ahead of expectations and a result of that, yes, they can very effectively monetize on the user base and do much better at that. on the other hand, the user growth end user engagement are

decelerating. that is problematic for a company that's supposed to be growing very, very rapidly. >> bruno, if the year's engagement was up but they hadn't made anywhere near as much revenue, what would the reaction be? >> well, you probably would still have a little bit of a similar reaction. i mean, they need to do well in both fronts. they clearly need to increase their financial metrics as strongly as over 100% have done a good job at that. but they -- you know, when you're looking at a company that's supposed to be in the early stages of a few years ahead of sort of a growth trajectory of where facebook was, say, five years ago, they need to do well in both fronts and they're certainly failing to some extent or to a significant extent, really, with regards to both user growth and user engagement. >> we've got facebook at 16%,

going the above 40%. is that an opportunity or a limitation? can they get into that market or have they already missed the boat in a sense? >> that's the key question, is this a company that's a very effect i effective player within a niche segment of the social media space that is using very effectively and broadly we think, sort of the media landscape, or is this a company where our mothers are going to engage in? the answer to that question so far is no. they're very, very effective within a certain niche. that's going to continue to grow significant revenues for these company. but if they want to become a much bigger player, they really need to be better at engaging more people within twitter and that's something that seems to be a little bit limited at the moment. >> bruno, great to chat with you. >> and that's it for today's

"worldwide exchange." "squawk box" up next. for u.s. viewers. [ male announcer ] this man has an accomplished research and analytical group at his disposal. ♪ but even more impressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing.

good morning and welcome to "squawk box." the markets are in a wait and see mode. there is plenty of data between now and friday. and movers and shakers, investors getting a britain tie social after twitter's report and green mountain soaring after coke deciding to take a stake in that. and then sony making very big moves with its pc and tv units. maybe dan loeb is happy about that one. it is thursday, december 6th, 2014, and "squawk box" begins right now. good morning and welcome to

"squawk box" here on cnbc. i'm kayla tousche along with andrew ross sorkin and brian sullivan. becky and joe will join us tomorrow from pebble beach, california. the major averages are coming off their seventh losing session in just the last ten trading days. the losses yesterday were fairley slight. 53 points today would be the implied open to the upside for the dow. the s&p would open about 7 points to the upside. the nasdaq would be about 15 points from the green. that's because a lot of the european markets are firmer as we awaited the decision from the ecb and the bank of england. we are earnings and economic data. first on the economy, here is the calendar. it all happens at 8:30 eastern time. weekly jobless claims, december international trade and fourth quarter productivity. throughout the morning, a number of the neigh's major retailers will report january same-store sales. as for earnings central,