hello. you're watching "worldwide exchange." i'm ross westgate. >> and i'm julia chatterley. these are your headlines from around the world. >> will we be blaming the weather again? investors going up for the latest jobs report in the u.s. saying it won't give a clear reading of economic health. hearing a turn around, arcelormittal says growth will finally occur this year. after two years of decline, shares jumped higher. the euro dropped after germany's constitutional court ruled on the legality of the

ecb's unlimited bond-buying program. and the olympic flame arrived in sochi ahead of tonight's ceremony. many leaders will not be turning up at the 2014 olympics. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> the olympics get -- it's amazing to think the olympics are under way. it seems to far in the future. >> yeah. >> and yanick node is with us. come in, come in. what did you say? >> i'm going there next week. >> are you? >> yes. >> fantastic. are you competing? >> no, no, i'm not competing. >> we'll talk to you about that. more from him in a few moments' time. plenty of other things coming up on this show. a tough week for social

networking stocks, right? disappointing outlook from linkedin sent shares lower after hour after twitter lost a quarter of its value on thursday's session. >> what to expect from india's latest gdp reading where growth is expected to accelerate. >> purchase, telecoms. purchase? we'll find out. the latest accepting payments in bit coins. we'll be in chicago later in the show to find out with the company's ceo and find out why he's betting on the company's virtual currency. >> and the most powerful businesswoman list. is she being paid a lot less than her male predecessor? we'll dig into that story a little later on. >> yeah. we'll drive it through for you. first -- >> it's friday. and the month of january jobs report is due. forecast calling for a rise in nonfarm payrolls of 189 those.

but with the impact of the bad weather expected to cloud the reading, will we get any clear idea of the health of the u.s. economy? yannick is with us from sturgeon capital. i'd rather talk about the olympics, actually, but we'll come on to that. how much stall are we going to set by the u.s. economic data at the moment? >> right now, the -- want to have some clear indication about the threat of -- >> about the economy. >> because what's happened at the beginning of the year, we need to have some clear ammunition. having said that, this number will be difficult to get and difficult to read because of a lot of different factors. the fact that the unemployment started in january, and you have

the -- all in all, a very difficult number to predict. >> is that not the point? >> let's not bother with it. >> direction. the direction that we're heading in rather than one individual data point. >> the american economy in the last few years has been creating something like 173,000, 175,000 job every month. it will be interesting to see this number as well as private employment. >> what is worth the markets, a good number or a bad number? >> i don't forecast at least in the u.s. an increase of interest rates. so i don't think there will be even -- as far as the commitment, you really should not have a greater impact in terms of the future. >> it is extraordinary looking

at the yield curve, 3.75%. >> in europe, we were 1% lower at least for the bund. >> for now. ars lore middle, the world's biggest steelmaker is impressing investors with its outlook. >> yannick, i think you think this is one of the top in the sector. explain why. >> we think the economy will grow about more than 3%. >> we start to see some signs in the eurozone will grow. japan is growing. all in all, ars lore milths is 47% in the states and it will be the company in the steel industrial that will benefit the most. >> how much does it matter what

will happen with the chinese industry or not? >> the chinese industry is a big industry. it's a very inefficient industry and it's a very -- industry. we saw some signs that the government wanted to tackle the problem, a less increase of prediction in china in order not to police as much as before. and, therefore, it should be beneficial for arcelor. >> long-term costs, currency effects, all these things come into play, as well. do you just get the sense that they'll cope with those? >> domestically, we could see a buyer of steel just holding up for softer price. but as long as the steel prices stay strong and so far it's not too bad, arcelor should be okay. if you look at the balance

sheet, i think there is a prediction of 5.2 billion euro in terms of debt. all in all, slowly as long as they don't add additional investment, i think they should be able to -- >> they did downgrade the forecast to china and brazil. we're going to quickly move on to another story. germany's constitutional court has deferred the complaint about the ecb's bond buying program to the european courts. the news sending the euro lower in trading this morning. around 40 points there. not particularly good news, but still weighing on the euro this morning. annette joins uses now with more details. is this a get out of jail card for them? are they not going to make a decision on this or pass it over to somebody else's?

>> yeah, well, that's exactly it. the constitutional court is saying they can't really be responsible for the whole phase of the eurozone by a ruling which they sense they're doing. so they're pushing it on to the european court. but their opinion is quite -- they're saying they see substantial reasons that the omc program exceeds the ecb mandate and infringes a ban on funding of the member states. six of the eight judges of the constitutional court were against or at least had substantial skepticism against the omt program of the ecb. and only two were saying we shouldn't have ruled at all. >> annette, the constitutional court, as expected, don't like the idea of this against the idea. they think the ecb is extending

its mandate. since the european court aren't going to be so crucial in stabilizing the eurozone, are they? why isn't the euro rallying here? >> i think there is substantial concern that, as well, the european court will be looking at the treaty than the treaty is actually -- well, it has to be everything that the ecb is doing has to be in line with the treaty. monetary financing of member states is banned. whether those stretches now come to do conclusion that the omt is not monetary financing or something else is still really up in the air and we can't really know. so far, the constitutional court in germany, which is a very, very influential legal organ here in germany, but probably has, as well, a sort of agenda setting role for other member states is having substantial concerns. and that is to add comes only

one day after ecb's president mario draghi is saying we haven't done any monetary financing and they're not planning to do so. with that, back to you. >> thanks, annette. great to talk to you. >> thanks, annette. thanks, jules. so just over an hour and ten minutes into the trading day in europe, we are weighted to the up site, 6/3 advancers outpacing decliners. the ftse 100 was up 100 points yesterday. the italian spanish market was up nearly 2%. this morning, the ftse is actually as is the xetra dax. the cac 40 is down 0.1% as is ftse mib. we've been talking about arcelormittal. forecast in consumption slowdown

growth in china and brazil, but improvement in the eu. meanwhile, finish mining auto companies, outotec, down 8.4% today. weaker than expected fourth quarter operating profits. it's forecasting a decline in sales this year. staff all in all is fairley flat. it's dropped the production target and it's turning attention to reigning in spending. speaking first to cnbc, the ceo held that the firm would spend $5 billion less than it had planned in the next three years. >> oil and gas and -- in 2013, we have a very strong space. so we can make harder choices and that will increase the return on the project and the return to the shareholders. >> finally, on some of the individual stocks, air france klm up welcoming traffic up. up 3.6% year on year in january

driven by growth en route to america. how does that impact where we are with the sectors. this is where we stand. insurance banks, construction technology, oil and gas a little lower today. best performance, basic resources up 1%. copper on call for its best weekly gain of the year today. also not hurting too much. now, as far as ash ya is concerned, we had china back today after their break from the lunar year. the nikkei doing very well. the dow up 1% for the first time this year. we've had the best day of the year so far, across the major u.s. indices. the hang seng is up about 1%. the s&p 500 up 0.6%, as well. bond markets, we talked about u.s. treasuries down 2.7% on monday. the yield, 2.7% is where we stand ahead of the employment report a little bit later. and on the currency markets with, euro/dollar, got up to 1.3619 on thursday after

plumbing that 1.347.0 two-month low. we've just come back, 1.3563 the constitutional court passing over the decision on the omt to the european court. dollar/yen, 102.03. cable pretty steady at 1.6326. jules. >> thanks, ross. china is back from its new year break having managed to escape from the turbulent trading we've seen this week. come the key underperformers in january, is it now time to buy? find out after the break.

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welcome back to "worldwide exchang exchange". pmi dipped to 53.7 in january, the lowest level in nearly 2 1/2 years. helen from goldman sachs joins us now. helen, we keep looking at these data points. we keep saying it's the weakest level we've seen for x number of years. but we know this adjustment is taking place. the market corrected quite sharply this year, but you say we should be buying on dips. tell us why.

>> that's right. you know, i think if you look at the china market over the past few years, it's what we would call a fat and flat market. in other words, there's some significant volatility up and downward moves of 20%, 30%, and that's largely been driven, particularly recent by by some of the cyclical moves in the economy. last june, for example, people were very worried about liquidity. that was the culprit in december, as well. but looking forward, we think some of these recent unfavorable data points may be transitory. the dm, external demand picture, is still reasonably good. it's likely to lift exports to make a greater contribution this year. and we don't think that policymakers are likely to take any extreme drastic measures to push the economy into a hard landing. and moreover, valuations are at

the end of that historical range. >> is better data points going to be enough, though, if we look at the concerns over the trust product, the concerns of debt of the local government level, we think they're trying to deleverage, at the same time allowing the term structure of interest rates to rise. do they have ultimate control of this? >> well, you're right. you know, i think there's a differentiation between cyclical, you know, trading opportunity for the market and a multi year bull market. we don't know who the had makings for the latter yet, but we think we're well positioned in terms of a cyclical upturn in the market. now, resolving some of these issues that you mentioned are very much going to take many, many years of very delicate and focused attention. policymakers pushing forward on the reforms when they feel like the cyclical picture can support it and gently backing up a little bit or putting things on pause when they feel like the cyclical picture is a bit more fragile. so i think that will be a

gradual process and that's not going to give us a situation where, you know, very macro sensitive sectors like banks can have a huge rerating for the near term. but nonetheless, we think there are other types of reform that can advance even in absence of a very robust cyclical picture. social safety net related, financial innovation related, soe reforms, reforms of various industries like the railroads, etcetera. and those types of reform progress will continue to be catalyst for the latter part of this year, as well. >> regarding banks, we have seen there is a big fight for the deposit. there's the large internet companies, baidu, are trying to get past that deposit. do you think the trend is continuing? >> very much so. i think effectively interest rate regulation happening in front of our eyes without

official interest rate deregulation on the positive side. it's still a relatively small percentage of the overall base of deposits in china. but it's certainly becoming a bigger and bigger proportion of the overall flow. now, this is structurally the direction that policymakers do want to see. but of course, sufficient regulation and safety protections have to be put in place to ensure that the incremental flow doesn't come in in a way that, for example, relies on things like implicit guarantees. that may be their medium to the longer term. so it's a structural trend, but one that needs to be regularly populated. >> in japan, we expect the prime minister there to continue to strengthen japan's security posture. square the relationship between the relationship between japan and china's numbers and risk measurement and whether we could see any trade impact throughout 2014. >> that's a great question. i think it's something that people have been watching very closely over the last year, year

and a half. in terms of an earnings and growth impact, we've actually done some analyses that show that generally speaking, china and japan's export relationship isn't one of direct head on competition as much as, you know, japan's relationship with korea or taiwan may be. we think overall the earnings and growth impacts will be relatively limited. but, of course, if things with japan continue to intensify in an unfavorable direction, then there could be more valuation related impacts on both sides and specific to china equities, for example, you know, sectors like auto or machinery may have more down side exposure. >> really interesting. helen zhu, thank you for chatting with us. the ecb has made a formal response to the constitutional court's ruling in germany. it's reiterated that the omt program does fall within its

mandate and they're going to hand it over to the eu court to decide on its validity or not. so the german court neither said whether it was within the constitution or not. as sales in vehicles accelerated 18% in january and expects the trend to continue to year. and a rare display of unity in the u.s. senate. it's hard to believe. the chamber at voted 96-0 to approve the nom nation of max bachus as america's next ambassador to china. the democratic senator from montana has helped steer trade policy with beijing and promises to be firm but fair during his confirmation hearing next week. >> yannick, talk to me about

your outlook on china. >> i think overall, china have to move away from having growth by investing into a -- we have to think that the government will have everything under control, in terms of banking, investment or local government. but there's a lot of moving part. >> the biggest moving part is 3.5 trillion worth of fx reserves they can use if they need to, surely. >> yes. but all in all, the surplus is not there any more. the situation is not fully incurred. the economy is still growing, but there's a lot of challenges, i think, in the next few months. >> yeah. an interesting look at the challenge, 2013 was the year of the -- the year of the central bank. does that mean it's the year of currencies? >> yes. >> i'm pulling a -- i can see emerging market currencies with all sorts of things partnership look at euro/dollar and i think,

they can't get out of the range between 1.34 and -- >> right. the courts -- >> we've been between 1.32 and 1.40 now for -- >> i don't think it will -- i hope it will not happen. but if in the end we find out that unconstitutionally we will not be able to do it -- >> we know that's not going to happen. they're not going to pull the rug from the very thing that has ensured that there was no break-up of the eurozone, are they? they're not that stupid. >> the german constitutional court is very independent -- >> they passed it over. >> passed the buck. >> they were supposed to vote on this on the 21st of january. >> and they keep refusing to do it because they're afraid. >> they don't want to be responsible for putting fresh pressures on that might break the euro, right? >> the eu -- >> come back to the currencies, though. how are they going to drive it for investors? >> i think in 2014 we have seen

a shocking move in emerging market currencies. obviously, the fragile five current account deficit and quite a lot of ip flexion. so you will see the currency starting to more value. it's a good thing overall for the emerging market. >> everything is saying the developed markets are going to decouple from emerging markets. you're talking about an isolated market in emerging markets. type. but what about the rest of the world? that's not still the driver, is it? central banks are not still on the hot seat. >> yes. we think, for example, in europe and japan, the two, euro, ecb and the bank of japan will be the most economic central bank in europe in the world. therefore, we should see the euro being weakened. we don't see it right now because it is a safe haven during the emerging market problem. nevertheless, i think the euro

should weaken. >> do you own that t trade? >> i'm not that good. i'm just trying to go and to see the ice hockey. >>. >> are you taking your laptop, your -- >> it's a worker. >> you're going to build an igloo? >> how long are you going for? >> a couple of days. >> maybe when you're there, because michelle is there -- >> oh, i will be very happy to get some insight. >> maybe we'll talk about that. it could be a good -- >> we're going to be talking about it a lot during the show, aren't we? >> you need a big hat. jules knows all about those. now, heading to the polls on saturday to decide whether the country should raise immigration barriers to its neighbors. the swiss party has collected

the vote by collecting the support needed for the referendum. switzerland receives around 700,000 immigrants or has done so in the last 13 years. uk prime minister david cameron will today issue b a warning that the uk will be damaged if scotland chooses independence in september's referendum. in advance extracts of a speech at the olympic park in london, cameron is set to tell delegates that the uk will be deeply diminished without scotland. recent polls pick up in support for separation. >> if they voted to separate, part of the uk basis becomes pointless because there will be mps in there who will be leaving. you can't have an election ahead of -- the whole thing would be a complete mess, which no one i don't think in market is -- >> the mess, right. still to come -- >> has abe-nomics helped shift

japanese manufacturers? >> we'll take a look at earnings from isuzu 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. 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.

headlines from around the

globe, many saying the jobs report won't give a clear readsing of economic health. as lore milths says there will be gains this year after two years of declines. germany's constitutional court says the ecb's bond buying program could be deemed illegal. it's referring the ruling to the european court. and as the olympic flame arrives in sochi ahead of tonight's opening ceremony, but many western leaders will not be turning up at the 2014 olympics. uk industrial up 4% on month, 1.4% on the year. it was forecast up by 2.2% on the year.

it was forecast weaker than expected. it's forecast up 0.5 and 2.3% on the year. the trade deficit, other than the, narrowed sharply in december and it was at its lowest since july 2012. boosted by a jump in exports, and a fall in imports of erratic items. i don't quite know what the o&s says are erratic items. but anyway, narrowed by more than 2 billion pounds in december to 7.72 billion pounds. we're looking for a shortfall of 9.3 billion pounds. vol and good exports in december, fallen by lower imports in aircraft and ships. normally, if you had the narrowing of the trade deficit, you would think that might help sterling. clearly, they didn't quite like the weaker industrial production and manufacturing data.

let's get some thought on that if we may. joining us in the studio is jonathan webb. >> thanks for having me. >> trade versus slightly weaker than we thought economic data. >> i think it's a growth story. that's what we're interested in in the uk. we're interested in the growth, we're interested in when the bank of england is going to have to raise rates. that's our focus. our bias is that the uk economy is causing a real head of steam and the bank of england is going to -- people are going to be looking to the bank of england to do something about -- >> something? >> actually raise rates. >> well, that's an interesting -- when? >> i mean, i think it's probably -- you know, we're probably -- most people think it's probably the end of the year. but it's really the prospect. i think it's just this recovery in the uk. it's really the speed. there is a lot of slack in the economy. >> there's no wage inflation,

though. and we're still, what, wage inflation is still over 0.2%. there's still a squeeze auto real take home pay. >> that's the key, really. i think that's the key story. when wages turn, it's not just in the uk. look at the u.s., when wages turn, that's when the world changes. there's a lot of slack in the uk recovery. >> i mean, didn't we bake an awful lot in the cake with that -- at that exchange rate? >> i think so, yeah. i mean, i think you've got to keep knit perspective. but you also have to keep in perspective that the dollar, in our view, is going to be strong. the key trade for us is slower euro/sterling, long sterling/swiss is our favorite trade. >> how much cheaper is it going to get for me to go skiing, then? >> it could go quite a long way.

dwr really? >> i think the swiss in particular, if we start seeing inflation zone -- >> i think this should be your trade. >> really? >> yeah. >> what is the target? we see 1.55, 1 .60, really, as -- working on both sides, really, working with stronger pound but also we think at some point this safe haven swiss money will start to come back. >> big surplus there. i don't know. european equities, a little bit mixed. we're flat, really. we had some big gains, the ftse up 1.5% yesterday. the italian and spanish markets up over 2%. pretty flat ahead of the employment report. why wouldn't you be? >> ten-year note inching higher in terms of yields. 2.70 we're trading. no concern as far as that omt, a decision from the german courts

this morning on peripheral yields this morning. actually, two to three basis points price. >> we talked about sterling, eu euro/dollar went up to 1.3619 on thursday. we are a little lower this morning on euro/dollar down from 1.3574. dollar/yen, just above that 1.76 we hit at the beginning of the week, as well. we're watching germany's constitutional court has referred a complaint about the ecb's bond buying program, the omt, to the european court on. in the last few minutes, the ecb has come out to say that the program does fall within its mandate. annette joins us with more details. annette, go on and say it, the german constitutional court chickened out of making a decision. >> that's very much true. but they have voiced an opinion. this opinion seems to be critical of the omt as such. they're saying they see substantial reasons to suggest the omt program exceeds the ecb

mandate and they're imprinting a ban on funding member states. so that doesn't really sound very much positive. what had constitutional court is doing now, they're giving the case to the european court which then is going the make a ruling. but the starting point of their decision making will go -- the opinion of the constitutional court of germany. so they will come to a conclusion and give it back to the german constitutional court. and based on that ruling they, again, will come to a decision. so there's still a lot of unclarity around what actually is then going to happen. the time frame is totally unclear. experts are saying that the

european court has a reputation of european law on a broader basis. there is higher likelihood that they're saying, okay, it is the omt program is illegal and it's obeying to the treaty and there shouldn't be a problem. so there is actually one -- yeah, that is one of the opinions i have gathered so far. so this could well be the case. what that all means now for the ecb, it's still not clear because the ecb is actually, as you were saying, as well, saying that they are thinking that the omt is perfectly within their mandate. but at the same time, there also ideas of stopping the sterilization program. >> thanks so much. that's a really great point you

mentioned there. what do you think of this? we've got the constitutional court now saying we think it's entirely illegal, we hate it, but they've avoided making a ruling on it. they're going to pass it over to the european courts. >> well, in a way, we've been here a few times. >> yeah, we have. >> each time, they've found a solution. they're saying it's interpreted restrictively, maybe there is some ground there. but i would be very surprised if this is -- if we end up with the omt sort of being ruled -- >> haven't negative been used. >> absolutely. >> annette did make a point that there is a lack of denial of the bundes bank. so perhaps inching forward as far as further policy stimulus in europe is concerned. do you agree with that? >> yeah, i think so. i think they're going to have to do something. i know draghi came out yesterday and said there's no deflation, we're going to blow inflation, not deflation. our guys, our economists are

very worried about falling prices. you know, risk of deflation and in the eurozone. >> you don't necessarily need to focus on -- you don't need deflation to have a problem. it's just the current rate of inflation of 0.7% means potentially that italy, for example, is unsustainable. >> yes, i think that's right. i think it's very important. with no growth, nominal gdp befalling, that's an awful situation. in the end, the ecb is going to have to do something and that something is probably qe. but that is some way down the road. and at that point, the euro may weaken. >> we think it might go down. but at this point, it's not necessarily an issue. now, some of the other corporate news, arcelormittal has impressed investors today

with its outlook. it says european demand for steel will increase this year and that ends two years of decline. what a two years it's been. stephane has been there for all of them. hi, stephane. >> hey, ross. the company remained unprofitable for the forty quarter, but it's because of some exceptional items. one of charges for a total of 1.3 billion euros. but still, arcelormittal, if you look at the growth profit, it's actually 3% on the fourth quarter. because of the costs and also thanks to a higher shipment of steel up 4.4% on the quarter. arcelormittal says it's cautiously optimistic for the noou new year and believes europe will grow slowly. for the first time in three years, it's targeting a 3.5% to 4% rise in global steel demand. that's an increase compared to last year where the growth was

3.5%. arcelormittal is targeting a core profit of $8 billion for this year. that's to compare with 6.9 last year and that's roughly in line with the expectations at thompson reuters. on a negative note, the steelermaker believes that the conception growth will slow down into emerging countries, two important ones. one is brazil and the other one is china. that's the reason why it's optimistic, but cautious. over to you. >> thanks, stephane. japan's wave of earnings this week continues with more record beating profits. sachiko kishida has the story. >> up 38% on the year, pickup truck sales dropped higher in the domestic market as demand continued to acceleration from

reconstruction projects. isuzu's key market, the political instability there took a toll on the japanese carmaker. but followed sales in the domestic market covered the loss. trading company beni reported record earnings for the month, as well. it posted a jump in profit to 1.5 billion. strong sales in an agricultural commodity segment helped the top line. the weaker yen and the stronger demand from abroad also contributed. meanwhile, machinerymaker kubota revised up its full fiscal year forecast. it now expects to post a net profit of $1.2 billion, up 57% on the year. followed sales of farm machines in china and other foreign markets helped top its previous record. julia, back to you. >> perfect. thanks so much for the update. now, ross, take a listen to this. >> i'm listening. >> mary berra, topped the list

of the most powerful business women. she's gm's first female ceo. but findings show she will only be paid $4.5 million in salary while her predecessor made double that. >> well, he was overpaid. clearly. >> not the point. >> wasn't worth the money. >> can i tell you, he's still being paid $4.68 million annually as a senior adviser to gm. so he's actually still earning more than the current ceo. >> yeah. >> go on, say something inflammatory like -- what's the problem? >> well, there is a problem, apparently, because everyone was obviously outraged and gm have come out and said we still haven't worked out the long-term incentive plan despite the regulatory filing. actually, she may be paid more money.

it's wrong, isn't it, ross? isn't it wrong? >> it's wrong. executives are paid too much money in the states, i agree. >> big picture, they're all paid too much money. there's a distinction between how much -- >> she might bring it down for everybody across the piece. >> a man could do that as easily. >> i agree. >> no, it's stupid. it's crazy. >> thank you, ross. thank you. >> i do agree with that. still to come on the show -- i'm going to go somewhere where i don't want to go. it's the once explosive royal consumption story in india coming to an end? could it be? we'll find out. we'll talk about what it means to the gdp number in a moment.

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india is bracing for slower growth. today they're expected to officially cut their five-year gtp estimates. the forecast depends heavily on output. the head of em for the asia economic research unit of

jpmorgan is with us. jahanga, thank you so much indeed for joining us. you have a note here, india in 2014. five questions that keep us awake. i guess there are a little different from the five questions that keep me awake. >> i hope so. i think the -- has been falling quite sharply. and i think what has been missed in all of this is the fact that not only has demand come down, but there has been a significant decline in potential growth, the trend growth or capacity, whichever way you want to look at it. so that even if growth has fallen from 9% back in the heydays of 2003, 2008, down to 4.5%, 5% now, so has the additional capacity of potential growth. the capacity in the economy is just not there. you have this very strange combination of falling growth and very stubborn, sticky, high

core inflation which currently is running at 8%. >> can i ask you how trustworthy these stats are going to be? they're going to slash forecasts. down turn is far more acute, perhaps, than you had first thought. >> sure. >> the numbers in india are always a bit dodge i didn't knowy, especially if you want to three demand side break youp. but i think the early numbers are pretty accurate. they do get revised and sometimes they do get revised substantially. but like all authorities they miss turning points very badly. if the economy is in a downturn, they miss the downturn. if the economy is in an upturn, they miss the upturned. i don't think the economy is in such a point in time. you can see much of that, you know, estimate to be fairley accurate. my guess is that it is going to be somewhere slightly below 5%. >> you're the chief economist of

the world bank said far more important than focusing on inflation control in india is to actually get growth back up to 8%. that's directly contributing to what the central bank is doing right now. who's right? >> i find it very amazing that even in, you know, 2013, after about 30 years of empirical evidence, we still insist on growth inflation tradeoff. if you look at across countries, and it doesn't matter if it's india, back in the 1980s, they talked about they're around 4% or 5%. there's a cutoff point. any inflation above that, this isn't a growth inflation tradeoff. that stands for india, too. if you have inflation above 4% or 5%, i don't see where this is coming from. bringing down inflation is crucial to bringing

macroeconomic stability, investor confidence, revising the investment cycle and, therefore, medium term growth. >> and what happens with this? we mentioned at the beginning the rural consumption stories. is that coming to an end? >> yeah. i mean, it looks like it. and i think, you know, there's a -- and that has been a big part of the support that gdp growth has provided over if last three or four years. there are multiple reasons as to why rural consumption had moved us so quickly up in the last three or four years. if we go back to 1950s and you look at real wage growth and rural india, real wage growth more or less as it goes to zero, about 2005 and '6when the indian government launched the unemployment guarantee scheme. since then, we've seen a significant increase in the minimum wages. and as a result of that, we've

seen real wages grow about 14%, 15% on an annualized rate. until last year. when that has started to slow down. as a result of that, overall demand growth from rural consumption going up, and you can see that in consumer goods and, you know, that's been falling very sharply. so it is a matter of concern. you know, on a long-term basis, clearly, unemployment schemes cannot keep real wages up. the only way real wages can be kept up is if india manages significant reforms. >> i think you might be right. thanks so much for joining us from jpmorgan. have a good weekend. let's get a look at what's on the agenda in asia on monday. we have key earnings due, including nissan motors and taiwan's thc along with january figures from umc and au

optronics. now, as the olympic torch enters the city of sochi, final preparations are under way for the opening ceremony. 65 world leaders are expected to attend the event including shinzo abe and ban ki-moon. notable absentees including the u.s. president, the british prime minister and germ kwhan chancellor angela merkel. there's been a string of looming costs and diplomatic issues. arcadia, thanks for joining us. first of all, how real and big are the security concerns?

>> well, i mean -- joining you from sochi now and we are only a few hundred miles away from what is, in fact, a war zone. you know, the heart of insurgency in the north. so the concerns are very real. security on the ground is incredibly stringent. it almost feels as if the whole place has been taken over, occupied by security forces. there's a lot of police on the ground. the security is obviously not -- but the concerns are very real. >> mr. kozak, the deputy prime minister is saying, look, there's no reason to believe the danger is different than anywhere else on the planet, including boston or london. we don't go along with that, do we? >> it is true that, you know, in this day and age, a threat for terrorism is as real in london as it is in sochi.

the -- vicinity to a dangerous spot, to trouble spots is -- to real trouble spots. >> arcady, we're going to leave it there. >> not the clearest line, unfortunately. >> i wanted to ask him whether after $50 billion worth has been spent on this, whether he can see that or can it be a holiday destination. that's what the hope is, isn't it? >> it was originally the holiday destination for members of the polit bureau. that's why they've gone there. bodidy miller, i see, is quoted as saying the american skier saying sochi has xooet exceeded

his expectations. there have been other journalists saying the hotels haven't been finished. if you want good coverage about an event, make sure the journalists hotels, okay, are all right, and are finished. after all, they are journalists. still to come on this show, will january's temperatures hit the u.s. employment picture? we'll preview nonfarm payrolls, coming up. >> yeah. how much is the weather going to take the shine off things? we'll find out. second half of "worldwide exchange" coming right up.

welcome to "worldwide exchange." i'm julia chatterley. >> and i'm ross westgate. the headlines from around the world, will we be blaming the weather again? investors gearing up for the latest jobs report with many saying it won't give us a clear reading of economic health. germany's constitutional court decides it will let it european counterpart rule on the legality of the bond buying program. treasury secretary jack lew says treasury will hit the debt limit leaving the treasury with

just weeks of cash to pay its bills. and the flame arrives in sochi. but many western leaders will not be turning up at the 2014 olympics. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. the january u.s. jobs report is out at 8:30 a.m. eastern. most economists expecting hiring rebound after being held down by cold weather in december. the forecast calls for nonfarm payroll toes rise by 189,000. following the disappointing 74,000 back in december. unemployment rates seen ticking down to 6.6%. while the weather continues to be nasty last month, the jobs report survey was taken the week of january the 12th when conditions were relatively calm. so that could have a knock on impact here. however, january traditionally has the largest seasonally adjusted factor of any month.

however, anything goes. let me give a look at how the markets are trading ahead of the u.s. session today. we did see the dow and the s&p 500 post their best day of the year, the dow closing up more than 1% for the year. we seem to be addling to those gains in the futures trading this morning. as you can see, we're higher by around 12 points. the nasdaq higher by around 12 points and the s&p 500 higher by around 3.5 points. let me give you a look more broadly at how the markets are trading today. positive session in asia. we welcome china back, of course, after their new year holiday. and we are seeing green across the board, gaining over the session this morning. the ftse 100 higher by 0.2%. so adding to the gains that we saw more than 1.5% in yesterday's trading session. german markets, higher by 0.2%. cac 40 relatively unchanged over in france. and the eye too well tallan markets higher by around 0.1%.

strong gains over 2.5%. >> yesterday, 1.5%. no surprise by caution today ahead of that u.s. employment report. and what is it worth, anyway, right, with all the weather that we've had? we could just ignore it and say look, a lot of snow, maybe doesn't need very much. >> but will the markets ignore it? >> you can't, and that's the other point. ahead of that number coming out a little bit later, such a key one of course for everybody. ten-year treasury yields, 2.7%. 2.57% was the yield that we hit on monday. we started the year at 3%. so it's been quite volatile for yields. now, a ten-year gilt yield snapped a little bit higher. 2.72%, the yield today. we try to see quite a substantial narrowing of the trade deficit for the uk. manufacturing industrial production came in a little weaker than expected. as far as fx is concerned, sterling has result steady, 1.6334. the dollar has been trying to go a little bit lower during the session, apart from the aussie

which had a big move this week off its 3 1/2 year lows. dollar/yen, 102.13. euro/dollar, on monday we hit a two-month low of 13470. a little bit lower to 1.3567%. the reason it's come lower is because of the story that jules is about to tell you. >> thanks, ross. we're watching germany's constitutional court has has referred on complaint about the ecb's bond buying program to the european court. in the last few minutes, the ecb now has come tout to say the omt program does fall within its remix. we've got annette back ready to give us all the details of this. so the german ves basically said it's illegal, we don't like it, but we're not going to make a ruling on this. we're going to pass its over to somebody else. it's not going anywhere, is it? >> well, actually, the germans are going to do some --

literally telling us that they want to have a european institution ruled by the european court. so that is what is actually happening now. but their opinion is quite vocal. they're saying that it looks as if there's substantial reason to suggest that the omt program exceeds the ecb mandate. but they are also saying that it's possible, however, that limited interpretation of the omt could make it to conform with the law. so what happens now? they're handing it over to the court of justice. but then the case comes back where the constitutional court is located because those cases have to be terminated or finished where they started.

we don't know if the constitutional court will say the european court is overruling us. that is totally unclear. but what is quite interesting, back last year when the whole thing started, or the year before, i should say, 2012, is that wolfgang shroybler, the german finance minister, said the constitutional court is not the right place to discuss these things. it has to be at the european level because it's a european institution. and the latest, what i was hearing from the ecb, that they're reiterating that our measure hes, meaning the omt announcement were necessary, that they are effective and that they will fall within the mandate of the ecb. so the institution is staying strong. with that, back to you. >> thanks, annette. all this fuss over a scheme that's never been used. i like it. we're gearing up fort january jobs report this morning. so far, more of the economic reports have cited a harsh winter as down on output in

sales. january's esm manufacturing number, auto sales numbers and the adp employment report all falling short of expectexpectat. it may be the weather, but will the market react if it's a weak one? >> yes, they will. they'll try and strip it out. but i don't think anybody believes -- we're looking at very poor numbers. >> i don't believe that the -- >> that's what i'm saying, you have to get some really weak numbers. in that sense, there's positioning going into it as it always is and then whatever happens. >> do you think some of the bounce we saw in the resource markets yesterday was you know what? we can put this aside? >> yeah, we can relax a little bit. >> and the employment component of the ism manufacturing was really weaker, the weakest since june of last year. there has to be spengtation built into the cake, but we could be disappointed here, i guess. >> we don't know that. that's always the number. these are the things that have been impacted. car sales, we already know, down

1.3%. and this january, kind of a weakish month. the ism manufacturing, 51.3. and the nonmanufacturing, which is okay, right on the surface, right? it's not a bad number. >> the coldest january since 1998 in the u.s. coldest fourth quarter in ten years and it's expected to be a colder than expected february. these charts from merrill lynch that we're showing you now, 48% correlation between the average temperature in q1 and what we see for u.s. gdp growth. so a very cold january. as i said, coldest level since 1998, expected to see a very cold february, too. >> yeah. i think we'll get some that will calm a little bit. maybe that's what we priced in. coldest -- the wettest january in britain for, like, ever. and that means it's pretty wet, let me tell you. still to come, we'll be talking more about that jobs report and get some analysis. plus, coming up later --

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and a recap of the

headlines. will the winter weather snow is in the jobs recovery in the u.s.? nonfarm payrolls due out today. germa germany's constitutional court, the first eu on the legality of the bond buying program has pushed the euro a little lower. and let the games begin. the winter olympics opening ceremony will be kicking off in sochi. but without the presence of many western leaders. >> let's get you up to speed with today's other top stories. today is the day when u.s. treasury secretary jack lew said the country would hit the del debt ceiling. earlier this week, lew said the government would run short of cash to pay its bills by tend of january. on thus, house speaker john boehner said the republicans don't want the u.s. to default. reportedly mulling several ideas the house could consider next week, including tying extension of the restoration to recently cut military benefits. apple has bought back $14 million in stocks since

reporting disappointing earnings two weeks ago. apple was surprised by the 8% drop in its shares the day after the earnings report. the company bought back more than $40 billion worth of stock in the last year which cook says is a record for any company over that span. he says it means we're really confident about what we're doing. the move comes just weeks before apple's annual meeting where shareholders will vote on carl icahn's proposal to greatly boost the buyback program. ibm is looking to shed more assets. the financial times reports the sale of its chip business and goldman sachs has been hired to find potential buyers. however, they could see a joint venture partner. the news comes two weeks after ibm sold its low end server business to lenovo for $2.3 billion. ibm shares this morning trading higher. it's outperforming the german markets today. and former sac capital

portfolio manager matthew martoma has been convicted of insider trading. u.s. prosecutors claim he helped insiders more than a quarter of a billion dollars. the month-long trial featured testimony from two prominent doctors who confessed to passing information to martoma in 2008. eats the eighth sac research analyst to be convicted or plead guilty to insider trading. his attorney says they plan to appeal. let's give you a look at what's on today's agenda in the united states. the bulk of everyone's focus, of course, is going to be on that january jobs report. we get consumer credit figures at 3:00 p.m. eastern time. .it's just a handful of earnings today from the likes of apollo global management, cigna and moody's. still to come on the show, it cost $50 billion, protests against the kremlin's anti-gay laws.

>> will hosting the winter games pay off for russia? we'll get into it when we come back. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection.

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the dow up for over 1% for the first time this year. the best day of the 188 points. right now, futures indicate a fairley cautious start. the s&p called higher by 3 points, dow called higher by 6 points and the nasdaq higher by 10.5 points. >> most economists expect hiring rebounded last month after being held down by cold weather back in december. forecasts call for nonfarm payrolls to rise by 189,000 after a disappointing 74,000 in december. unemployment seen ticking down by 6.6%. the jobs report survey was taken in the week of january the 12th. this is quite crucial, when conditions were relatively calm. however, january traditionally has the largest seasonal adjustment factor of any of that month of the year. so far this month, four of the

six major u.s. economic reports have priced the harsh winter are putting a dampener on output and sales. we've seen january's ism manufacturing number, the auto sales number, and the adp employment report on wednesday are falling short of expectations. >> did the ism nonmanufacturing was okay? >> it was. but the employment components of the ism manufacturing was really dire. >> yeah. i mean, i -- it's kind of interesting. might be the weather had less impact in january. we'll have to see what happens. the other thing is whether we get a -- we might get an increase in the workforce, right? that's the bounce back in the labor force in which case the unemployment rate might go up. >> i think the point about the survey period being a week where the weather was less bad could be an issue here. are we over weather now? do we get it? we've priced it. is it a weak number? do we go, okay, fine, it's weather? what happens? >> yeah.

i think you're going to have a -- some, you know, three or four months of very bad data to pause. but it will be interesting to see whether -- >> the fed has gone -- >> yeah, which is really what people care about more than anything else. now, plenty of snow in the states. plenty of snow, we hope, for the winter olympics. the opening ceremony today is getting under way in sochi. the u.s. state department has warned travelers not to expect any privacy, even in their hotel rooms. as richard engle found out, you're less exposed the second you turn on your electronic devices. >> one of the first thing visitors in russia will do is log on. hackers here are counting on it. so we decided to find out how dangerous that can be. >> welcome to russia. >> thank you. >> with the help of kyle wilhoyt, a top american computer security expert and two brand new computers.

>> the purpose of this experiment, we start out with these fresh machines and we're going to see what happens when you turn them on in russia. >> exactly. >> back in the u.s., wilhoyt had created a fake identity for me. phony contact list with fake names and addresses. the only real detail, my name. >> so you're putting my profile on these computers. >> that's exactly right. >> with our new computers now loaded with potentially attractive data, we headed for a restaurant where we used a new smartphone to browse for information about the sochi olympics. almost immediately, we were hacked. >> did you see where it said downloading? >> yeah, i did. >> it's downloading a piece of malware. >> malicious software hijacked our phone before we finished our coffee, stealing my information and giving hackers the option to tap and record my phone calls. >> anything i say on this could endanger my financial security, maybe even my physical security

depending on who is listening. >> exactly. >> one of the largest computer companies in the world is charged with protecting the games. but experts here say visitors will bring so many devices, the hackers will have plenty of targets. >> i risk every segment of this huge, huge, huge infrastructure can be under attack. >> back at the hotel, wilhoyt was using special software to monitor my computers and sure enough, they were attacked. >> you were able to tell very, very quickly someone was poking around. >> exactly. >> it had taken hackers less than one minute to pounce. within 24 hours, they had broken into both computers and started helping themselves to my data. >> so where is this information going? >> that computer in particular, the traffic is going to a server within russia. >> american athletes and fans now coming to russia by the thousands are entering a minefield. the instant they log on to the internet.

>> interesting report from nbc's richard engle. we'll get more on the olympics in just a second. south africa is going to hold a general election on may 7th, according to jacob zuma, the president of south africa. may 7th, general election in south africa. we listened to richard engle's report about security. meanwhile, an estimated $50 million has been spent on preparations for this event. this figure would make the sochi games the most expensive in olympic history. it's going to reap the benefits from this influx of capital. joining us is pabel berko. nice to see you. >> good morning. >> thanks soucher indeed for joining us. it's a lot of money. where has it all gone? >> exactly. most of this money is taken from the taxpayers pockets, either directly from the states budgets, regional budgets or

indirectly from the budgets of state controlled companies and banks. >> you're saying half of that budget into into infrastructure in the area and -- >> even more than half, according to most estimates. more than half of this money went not directly on the olympics. we could maybe say this is the most expensive olympic games, put it in the guinness book of world records. but, in fact, most of the money went to build railways, automobile roads, housing, hotels, seaports and airports were refurbished. so more than half of this money was actually spent on the infrastructure in the region. >> how much will that benefit the region itself if -- i mean, are they hoping that sochi becomes a place where people visit after the games?

>> that's the general idea. i think most of this money will benefit the economy. the people that worked on this project and the local owners of the hotels, of housing, hopefully more tourists -- >> one could argue there's more efficient ways to stimulate the economy with $25 billion, $30 billion. i don't know. >> it's very important that the government now pays more attention to the region. because if you look at moscow and st. petersburg, the cities are quite advanced and moerp, even if you compare it with europe. but in the regions outside, the infrastructure is quite old and outdated. and that is exactly why the amount of 50 billion is so high because there's a lot that needs to be done. >> there is a lot that needs to be done as far as the economy is concerned. we go through the issues,

downgrade this year singled out by the world bank and the imf. russian assets have traded off with other emerging markets. do you think it's gone too far? >> it's quite likely that it's gone too far. looking at the currencies and the equity markets, you'll see that they move through the election line with the general emerging market trends. if you look at russia, specifically, such metrics as huge international reserves of more than $500 billion, the consistently positive current account balance of fairley moderate level, external debt, these things place russia in a better position than average emerging markets. >> growth, dependency, an underdeveloped private sector, i can name you a million things that are critically wrong with this country. i'm concerned about picking up growth. you can talk about the reserves, find if the direction is wrong, isn't it, for russia? >> i wouldn't say that the direction is wrong. you mentioned quite correctly that there is a dependency on

the price of oil. but there's also a private sector where you might say that it's underdeveloped. but that means that the potential for growth is huge. in fact, if you look at the russian equity markets, you can see that there are two groups of companies which are becoming more and more polarized. there is this old company mainly from energy and utility sectors where the government's involvement is quite high versus direct control or regulation where there is a -- >> i have to stop you there. your message, look at private companies. thank you for joining us. still to come, we'll get more on the forthcoming jobs report and, of course, the debt ceiling space. see you in a few moments. [ male announcer ] the new new york is open.

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welcome to "worldwide exchange." i'm julia chatterley. >> and i'm ross westgate. the hlgs from around the globe -- >> investors gear up for the latest jobs report with many sag it won't leave a clear reading of the economic health. germany's constitutional court says it will allow the ecb to rule on the omt case. treasury secretary jack lew said the government will hit the debt limits leaving the government with weeks of cash to

pay its bills. and the olympic games have arrived in sochi after tonight's olympic games. but many western leaders will not be turning up at the 2014 winter olympics. >> 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 u.s. markets are fairing ahead of the open. the dow and the s&p 500 the best day of the year we had all year. the dow closing up more than 1% in the session yesterday, indicating higher as far as the futures are concerned. a bit more of a tentative start from the futures this morning. as you can see, indicating higher here by around 1 1 points. and for the s&p 500, higher here by around 3 points. just a little bit offer more of a tentative start. but certainly taking a cue from what we've seen in the asia and the european session, a very positive session.

the chinese back from their new year holiday, too, and the european markets this morning. gains, again, we're obviously waiting for the payroll number this afternoon. 0.2% higher for the ftse 100. the german markets here, 0.25% higher. the cac 40 relatively unchanged and the italian markets managing to hold on to gains here, too, up over 2% in yesterday's trading session, too. positive for the periphery here. >> yeah. so there we stand holding on to the gains of yesterday not making any more. what are investors to do today with the employment report ahead of us? here is a recap of some of the thoughts we've already had today. we were going to give you some of those thoughts, but we don't have them now. we'll try and find it. now, today is also a day when u.s. treasury jack lew says the country would hit the debt ceiling. earlier this week, lew said the government would run short of cash to pay its bills unless congress raises it debt limits.

thursday, john boehner said republicans don't want the government to default. he's reportedly mulling several ideas including time le extension to recently cut military benefits. patrick, you're probably feeling a little better after that bounceback in u.s. markets yesterday. >> yes. a little bit of confidence coming back after a little bit of nervousness. >> the worst january since 1933. not worst year, but worst january. >> yes. we had the best market in 15 years last year, so the markets don't go up in a straight line. a bit of healthy profit taking is perfectly normal. >> right. >> and what now? we're looking at the jobs report. we'll come off of that. but also the political situation which we kind of got through okay. >> yes.

i think that they did the right thing in the end and, you know, they didn't commit political suicide, which i've never seen in the u.s. and you've got to remember, you know, through sequestration, they've got the debt down to 2%, 3% of gdp. it's been as high as 15%. so the worries about the debt crisis has really sort of disappeared. and i think, you know, you've got midterm elections coming up this year. the republicans were embarrassed by i think that ship last year. they'll want a smooth passage and i think a negotiation will happen. >> and that's why the markets took care, basically. they've done brinkmanship. they're not going to do it again. i guess my question here is if we don't postpone the deadline again beyond 2014, what does that mean for business? they can't make investment decisions. it still has an implication, doesn't it? >> yes. the companies themselves are in

rude health. and the companies themselves will be benefiting this year because the fiscal dral drag that was created because of sequestration last year won't be here this year. so it's actually going to benefit them, the fact that they actually did a deal last year. so i don't think companies are too concerned about, you know, the fiscal side of things. i think companies, you know, are more concerned, i think, at the moment about confidence. >> all right. let's remind us about this jobs report, then. 8:30 eastern. most economists expect hiring rebounded last month after being held down by cold weather in december. forecasts calling for nonfarm payrolls to rise by 189,000 following a disappointing 74,000 in december. unemployment seen ticking down to 6.6%. of course, that was dependent on the labor force. the labor force increases, that right might go up a little bit. how are you going to view this number bearing in mind what happened in december and continued bad weather? >> numbers always traditionally

very volatile. we tend to, you know, not look at just the monthly number. i think you have to look at it directionally. if you saw where unemployment started last year in 2013, it was 7.8% of the workforce. it's now down to 6.7% of the workforce. >> some of that may be because the worst force slupg. >> correct. directionally -- and that's obviously what yellen has to deal with, as well. she's got a new job coming. directionally, unemployment is declining. defense is definitely improving. this report is going to be so weather related -- if it is weaker again than expected, will you start thinking another one one of those in the force and what do we do with that story? >> yes. no, i don't think so. as i say, directionally, unemployment is coming down. you're very close to the threshold where they actually got review, you know, how they

view forward guidance, which is 6.5%. so, no, we won't be concerned. i mean, what we are concerned which is -- i think the market is going the concentrate more this year is on earnings. what moves stocks generally is earnings and not basically fed policy. and you've got to look and see what's happened to earnings this quarter. you know, they have been pretty powerful. >> and the reaction to the negative ones have been -- on year than we saw last year. >> stick around. more to come from you. and we have got those sorts of the other at cnbc today. the tape we couldn't fine as turned up, or the digital code has turned up. anyway, let's listen in. yields in the missed part of the curve will be turning significantly higher through the end of the year. i think 3.5%, 3.5% plus by the year-end. and i think the spread over bund yield will widen significantly.

we've seen it around 100 basis points in total. i think a very significant widening and that treasury bund spread is on the cuff for this year. >> you want to be long dollar, then still against the yen. stocks below 100 or so, but i think we'll go back on the potential. dollar cap, by the way, has been also a favorite. long dollar cap as the bank of canada has taken quite a bit turn. >> you can afford to double its dividend on an iron ore price that loses a third of its value. just so long as it gets toss capital projects back under control. the free cash flow from rio tinto that we really like. that . ♪

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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." let's give you some headlines. will the winter weather slow the jobs recovery in the u.s.? job numbers out later today. germany's constitutional court defers to the eu on the legality of the bond buying program that sends the euro falling. and let the games begin. the winter olympics opening ceremony kicks off in sochi, but without the presence of many world leaders.

>> now, a day after twitter set off alarm bells about slowing growth, another high flying social media stock is giving investors a little bit of heartbu heartburn. kayla tousche has been taking some tablets for it and is at cnbc headquarter with the details. >> social media is not good for squeezy stomach these days, that's for sure. linkedin reported solid fourth quarter results, but is prompting first quarter numbers lower than investors would like. weekly fourth quarter revenue rose 47%. that topped all forecasts. sales in the company's recruiting and human resources business was 53% and just a quarter of all total revenue as the company keeps diversifying its earnings. but investors are a bit spooked. that first quarter revenue will likely be in the range of 455$4 to $460 million. that would mark a really big

increase, but that is below what analysts were expecting. linkedin have beaten targets every quarter since it went public in 201 1. the lower outlook comes the day after twitter reported growing user growth and a decline in use. twitter shares dropped 24% on thursday to close at about $50. in contrast, linkedin says it membership grew 7%. but it's paint ago cloudy picture on how much time users are spending on the site. data from comescore shows monthly views fell 1039 million. page views fell 10.6 billion. analysts say the key priority to linkedin is to find new ways to make money from the mobile ads, through features such as

sponsored updates as well as expanding its user base outside the u.s. linkedin is adding for $120 million, bright. bright is a company that helps match employers with candidates. meanwhile, linkedin falling 6.8% in after hours. shares right now at $151.40. guys, for now, back to you. >> thanks for that. quickly weighing in here, tech stocks, twitter got hammered this week, are they a buy on weakness? >> definitely. tech stocks, roes, 20%. all these internet companies are so young, they're so early in their ages and, you know, they're up sharply. seeing a bit of profit taking. i think you've got to give these time and you've got to give these companies time to grow. it's very early days. >> early days, right. next to us, something else that is also in its infancy, bitcoin takes another step towards

entering the global financial system. telecom provider perseus has announced that it will start accepting the virtual currency. jobs perse joins us now. you're going to accept the bitcoin. you're doing it through something called a go-coin, which is only three months old. are you not concerned about the infancy of both of these things? >> well, not entirely. go coin has a pedigree which is backed by brach pearson, his management team. there is a pedigree to this and the currency has been in production for five years so far. >> i understand the appeal of bitcoin if you're dwroog it for transactions in the likes of asia and south america rather than the credit card transactions. is that part of the appeal? is it just the fact that actually it's going to influence your ability to trade?

>> certainly. i mean, our customers keep telling us so we provide global -- the world's fastest global multi versatile network, serving financial traders, exchanges and media and online gaming. and our customers keep tells us that end users, the customer base continued to look to faster and more efficient, morificive cheaper authorized of transacting value between market participants. >> jock, are you happy to take payment in bitcoin? are you going to accept payments for your business in bitcoin? >> yes, we are. in fact, we've managed to modify our business model such that we can manage what is probably currently a widespread and some volatility. and payment from online gaming companies, from financial market participants, and others who want to use our global network as a form of payment. we chose go-coin as a authored

for us to sweep the bitcoin and translate that into u.s. dollars or another form of currency that we need to build out with -- >> how would you deal with the enormous volatility that we've seen? a bill run up and big pullback, as well. that will play havoc with your account, doesn't it? >> it does require significant modification and sometimes price adjustment. but we've managed to adapt to that volatility at this stage. that being said, the spreads are starting to narrow. and i think that with additional credibility and even high precision traders coming into that space, i do think that the spreads and volatility will continue to narrow as more credibility is given to this authored of transathing values. >> and regulation only goes one way, jock. great to see you, jock percy, the ce of of perseus. >> and that's a good thing. >> thank you.

let's look at the today's top stories. apple has bought back $40 billion in stock since disappointing earnings two weeks ago. apple was surprised by the 8% drop in its shares the day after earnings reported. apple has bought back more than $40 billion in stocks in the past year which cook says is a record for any company over that time span. he says it means we are really confident on what we are doing and we've come just weeks before apple's annual meeting where shareholders will vote on carl icahn's proposal to boost the buyback program. matthew ma amartoma has bee convicted of insider trading. the month-long trial featured testimony from two prominent doctors who confessed to passing the information to martoma in 2008. he's the eighth fac capital

portfolio manager or research analyst to be convicted or plead guilty to insider trading. >> it's been a great month for mary barra. she took over gm's ceo weeks ago. now she's been named the most powerful woman in business. fortune says factors search as the size and importance of the company, its health and direction and the arc of the leader's career played an impact. still to come on the show, will january's dipping temperatures hit the u.s. employment picture? >> we'll take a look at how markets could react to the nonfarm payrolls right after this. [ male announcer ] the new new york is open.

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u.s. futures ahead of the unemployment report are calling for a slight -- after the best day of the year for the dow. we're up the best day of the year for actually most of the major indices. right now, we are currently just 3 points above fair value for the dow at the moment. the nasdaq is some 13 points above fair value and the s&p 500 at the moment is around 3 points above fair value. so the futures just got very cautious as we got closer to the employment report. >> and those expectations, 189,000 jobs are forecast to be added to the u.s. economy in january. with the unemployment rate expected to kick down to 6.6%. now, all week on cnbc, we've been asking our guests for their predictions on today's nonfarm payrolls numbers after last month's huge miss. >> we're looking at around 170k and around 6.7%. so pretty much on par with the specations. >> we're looking for around 180,000. i don't think it is about where the number comes in. i think it's how the market

interprets the number in the context of how risky assets trade. >> the u.s. economy will add probably somewhere around 200,000 jobs in january and we're expecting that awful print from december to be revised upward. >> friday's number has the big question mark around it. i think anything over 120 to 150,000 might be viewed as a bit of a victory. . >> those are the views we've had on the channel. joining us now is todd horwitz. todd, was your thought? >> good morning, ross. you know, i think there's going be a fairley significant miss here. i think the street has priced in a beat, but i think if you look at it and you look back and you look at the history, i think this is going to be a fairley significant miss. and i think that even the jobs number dropping down to 6.6, which is what they're talking about, that's a lack of participation in the workforce. you know we're at 40-year lows of overall job participation.

i'm not real enthused. if you want to tie in the weather, i don't know how they're going to make 189,000. it seems to me 140, 150 would be the highest we'll see. >> but because of weather, todd, we'll look through it, won't we? >> you know, i don't really think -- i think that's more of an excuse, ross. i think that truthfully what we haven't seen is growth. you know, you look at some of the earnings and some have been good, but a lot more have not been good and what we're not seeing is the top line growth where companies are going back to work and really manufacturing. they're making their numbers because they're cutting back on expenses and because they had the availability of cheap money. i have not seen any significant growth in any of the major companies which is not going to bring back jobs, which i think continues to be a problem and with the market growing artificially. >> based on what you just said there, then, if it is a miss today on the numbers, is the market going to sell off? >> i think the market continues to sell off either way.

i think even if we get a spark up this morning in the rally, i think that the market continues the sell off. i think we are now in what we call pretty good correction mode and they're we're going to work our way down, maybe even 1660 in the s&p before it's all done. i think this is very healthy for the market because it does need some sort of correction that will allow buyers to come back in. i think right now you've seen a big flight to quality. look at the treasury bonds. the fed stops tapering, yet bonds are going up which means interest rates are coming down naturally instead of being artificially pushed on by the fed. >> part rick, your thoughts, as well? >> inventories have been run down sharply because of the weather. and i think they'll be in a completely different place in six weeks' time when we start to see inventory rebuilding. and i know it might be a knee jerk reaction, depending on the number today. and i think it really has been, you know, weather related. what to me is far more important is yellen's testimony in terms

of congress next week. i think she'll obviously basically calm markets and, you know, that is when we think, you know, markets will begin to recover. >> you get this number out of the way and position for a rally next week, then, yellen induced? >> maybe a knee jerk reaction today. earnings continue to be strong. yellen will calm the market next week, i feel. >> todd. >> i don't agree. i think that the market continues to work its way lower. i think that there's a lot more issues that are in focus here and i think that the fed will now stay the course. so it looks like they're going to be able to taper and continue their program. and i don't think that the fed actually will now calm the market. i think that they're going to let the markets trade and i think we continue to work our way lower. >> as a trader, though, you don't mind if the markets are allowed to trade, i'm presuming. good to see you. thanks for that, todd horwitz, founder of average joe options. that number, of course, is coming up on "squawk box." they'll take over the reigns in just a few moments.

so for julia and i -- >> have a great weekend. ♪ [ male announcer ] you're watching one of the biggest financial services companies in the country at work. hey. thanks for coming over. hey. [ male announcer ] how did it come to be? yours? ah. not anymore. it's a very short story. come on in. [ male announcer ] by meeting you more than halfway. it's how edward jones makes sense of investing.

good morning and welcome to "squawk box." it is jobs friday and the expectations are for a strong number. but will the weather take its toll? just blame it on the weather if it's not good. google is going to get a stake in lenovo after selling its motorola mobility unit is complete. and apple goes on a buying spree, $14 million of its own shares. it is friday, february 7th, and "squawk box" begins right now. good morning and welcome to

"squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen and becky quick who are in pebble beach this morning. sara isen is joining me on the set this morning. it is jobs friday. we have a lot to talk about. >> the super bowl. >> the super bowl of jobs and the super bowl of golf. we also have to talk to joe about his -- i had a big birdie. >> birdie number seven. >> on the seventh hole. but in the meantime, i want to talk jobs. the january nonfarm payrolls, polled forecasters say the economy likely added 189,000 jobs last month. many also saying that december surprisingly low count at 74,000 net new jobs may be raised sharply. now, the unemployment rate is seen falling to 6.6%. average hourly earnings are expected to rise by 0.2%. economists say the wild card in today's report, of course, the weather. and this winter's relentless freezing. tempur