good morning to you. >> here are your headlines from around the world. >> digging deep, investors cheer a new debt reduction plan for glencore as they plan to further cut capex boosting stocks across the board. >> syngenta jumping at the open today on a report that chem china could be considering a multibillion dollar bid for the swiss agrigiant.

>> power play, edf boosting it's power target this year thanks to stronger new output in france sending shares sharply higher. >> let's get straight to the market action. glencore shares trading higher after debt retux plans. the company outlined an ambitious net target between 18 and $19 billion next year. along side this the mining and trading company plans to cut capex as it grapples with a continued commodity route. share prices up 10% in london trade. that's also helped boost the mining sector more generally and one has to say, susan, that glencore has handled this latest

head wind it's faced pretty well. if we rewind just a couple of months, wouldn't think it would have managed to reduce debt targets so significantly. >> yeah, credit default swaps were pricing in a 50% chance of default from glencore. the stock is still down 70%, you know, at one point we were down 75% on the year but is this really good news? because from what i understand yes we're looking at $2 billion in free cash flow but then they try to slash debt, reduce it and they're upping it by $3 billion throughout the next three years but what does it say about the business climate right now? >> the business climate, there's no question. it did reiterate it's guidance for the trading arl of the business, 2.4 to 2.7 billion and that's a slow reason for the positivity in the share price today but a reason to mention because of course even when commodity prices are down, the trading part of the business

should still be able to make a margin. needed to reduce debt in the face of lower prices but there's still fundamentals that could work. >> i'm so glad you brought the trading arm. you're right because in this investor meeting today they reiterated 2.4 to $2.7 billion in adjusted earnings before taxes and interest. they will make 2.7 from the trading arm. >> the long-term guidance is 2.7 to 3.7 but you can come pair what glencore is managing to achieve in the space compared to noble group in asia which continues to really struggle. share prices over medium term have fallen a lot but it's being to reduce it's debt and managed to raise that equity a month ago in a way they haven't been able

to do. >> good point. reducing net debt levels by a third. so investors are looking at that saying at least they're getting the issue through and try to clear it up at this point. okay. let's talk about chevron, shall we? and stay with commodities. cutting it's 2016 capital spending as it tries to weather the low oil price and this includes a sharp drop in the budget for exploration for new reserves and also a large cut when it comes to spending on u.s. production so the company says it's priority noies includ funding large developments and preserving longer term options. chevron shares, we're seeing declines of .4%. >> all right. let's have a look at flashes coming from mr. thomas jordan.

deposit unchanged at 0.75%. he is addressing investors at a press conference at the molt. he says even after the ecb's mild interest rate cut the swiss franc euro interest rate remains unchanged. they have stabilize since they lifted the cap in january. he says that the introduction of sovereign money would be a risky experiment. die verging monetary policy stances and major currency areas present huge challenges still. these are the flashes coming out at the moment. a lot of them coming out in swiss so just bring you the english flashes at the moment. maybe we'll have a quick look at what the swiss franc is doing as well. there he is addressing the media at the moment. no rate change. this is of course now year on from that move when they did abandon the currency cap seeing

it strengthen significantly but it has fallen back to similar levels it was a year ago and against the jurors owe no real change because there was no change in interest rate. 10833. >> and that timing of removing the ceiling from the swiss franc just in time for davos when the world's global elite were heading to switzerland and lattes were costing $15. >> it's an expensive place. do stay tuned to cnbc because we'll bring you an interview with thomas jordan after the central bank kept rates steady but it remains active in the currency market. >> all right. another new story that we are watching closely across europe, voblgs w vob volkswagen holding on to yesterday gains after it no longer expects to take a 2 billion euro hit in relation to

false carbon emissions data. only 36,000 cars may have understated their co2 level which is is far below the 800,000 that they originally provisioned for and set aside all the money for. looks like no longer needed. >> it's been nearly three months since volkswagen admitted to using defeat devices to cheat emissions tests. during the scandal, shares dropped over 40% but have since regained about half of those losses. it lead to the resignation of the chief executive who has been replaced by the ex-porsche ceo. 8.5 million vehicles were recalled and the pain for vw goes on as it's subsidiary audi admits many of its engines were fitted with a second illegal device. at 11:00 a.m. cet today

volkswagen is due to give an update on this scandal which is on going. ahead of that let's give a point of view from on the ground. nancy is there for us now. nancy. >> thanks, wilfred. in less than an hour the ceo will take the stage in a room just behind me and the big focus here today will be on the initial problem with the diesel defeat device. that was on 11.1 million cars worldwide but 500,000 in the united states and we largely know that the european fix has already been approved. that's expected to go forward early next year with the recall process across europe. just exactly what recall plan is there and what it will cost this auto maker. they set aside about 8.7 billion euros. 2 billion of which was for the carbon emissions deviations which is much less than feared. 36,000 vehicles impacted so that

euro amount is expected to come down substantially but we still need to know what the recall costs are in the u.s. some analysts speculated they may not have a fix in order to meet standards which are more stringent when it comes to emissions scandals. if that's the case we're opening it to potential car buy backs and how to compensate customers. we also need to get to the bottom of what the ceo has to say when it comes to repairing the image, the brand here, specifically in the u.s. we did see sales drop off more recently. about 25%. i spoke to a dealer on the phone yesterday. he is chairman for the national dealer's council in the u.s. he said customers are interested. it's more the pricing issue. so volkswagen now potentially is facing a problem of having to reduce prices in order to maintain their market shares in volumes in the u.s. and what cost that will come especially when you consider the hefty

fines and lawsuits stacking up. another issue we're expecting to hear today is more information about the organization and restructuring because the scandal brought to the front here how concerned investors are that the company has not been efficient enough and agile and responsive to the problems that we know have been going on for quite sometime but we'll get comments from the ceo on that and wondering where we go from here when it comes to cost cuts. the company did layout plans to cut it by 1 billion euros. normally they issue plans for 3 to 5 years so the assumption is they needed to get this eternal investigation to decide how far the cuts need to go but there's one big issue hanging over here and that is negotiation with the labor unions. the work council is extremely powerful. they hold a big stake in the company as well and it's been reported that they have been reluctant to bring in further cost cuts. they want to preserve as many

jobs as they can at volkswagen given how significant the company is for this country. the sheer amount of people they employ here. negotiations are still going on but that is a serious issue going forward. back to you. >> thank you for that. we'll be live from the volkswagen press conference where the ceo will be speaking coming up at 11:00 cet. >> let's stay with cars and autos and fiat chrysler will pay $70 million in fines to resolve a u.s. probe over the failure to disclose death and injury reports. reuters saying the settlement will be announced by the national highway safety administration later today. they reach a separate $105 million settlement over it's handling of close to 2 dozen recalls. let's check in on shares of fiat

chrysler. let's talk about gm and the fund that general motors set up to compensate victims of accidents has now been paid out. nearly $595 million. that's half a billion dollars there in penalties and in it's final report before winding down operations the fund says gm's costs now top $2 billion. gm created the fund last year under intense pressure for failing to disclose that it was aware of switch defects in older cars for close to a decade's time. >> right in m&a news let's have a look at shares in syngenta jumping amid renewed speculation that the swiss acompany is clos to a take overful they rejected an offer last month but they're reporting they're coming back with a $44 million cash offer. speculation a deal could be

announced as soon as this friday. up some 5%. of course this comes after yesterday was between dupont and dow chemicals as well and they have been heavily involved in this space for sometime. last month we had the share man saying they were still extremely active. that was the quote among leading companies in the sector but this china bid relatively close. >> also been rumored that another agriculture chemicals company in china might be buying into the agri names globally but timing is suspicious when the two largest players in the u.s. are thinking of merging up in this $130 billion tie up and when the gorillas are getting bigger you have to think about your play as well. >> sure. >> but monsanto, didn't they offer $46 billion to buy syngenta which they said no to? >> absolutely. they have been playing a tough

game where we wonder what the price is. if we have the share price come back it's below where the monsanto offer was that was rejected. but as you can see there we go up 5% today, up 24% the last 12 months. >> so dow and dupont, a lot of agencies out there are saying this deal could be done this week. >> but a lot of competition issues as well. they have big exposure to the u.s. syngenta and a chinese company is probably not going to face the same kind of issues because of that. >> but part of the discussions right now between dow and dupont is they're going to merge and then split off into three entrities to try to get through the anti-trust hurdles but if they have problems with staples getting together and beer and stove top ranges that we talked about this week, what are are they going to think about the two largest chemicals agri

players merging in the u.s. speaking of mergers, we have something in the hotels. accor is to acquire frhi hotels. the deal is the biggest ever acquisition made by europe's largest hotel operator. it will be paid partly in cash and partly by issuing 47 new shares. didn't we have that big merger recently with grand hyatt tying up with ihg. there's a lot happening. $2 trillion in the year. >> we will have to wait and see. lots more to come on worldwide exchange including mario draghi's stimulus package which proved many analysts long.

how should you rejig your portfolio with that in mind. jp morgan are in studio next to discuss their 2016 calls.

welcome back. we were just talking about consolidation m&a in the agricultural sector and the

press conference continues where they're considering either a trade sale or ipo to sell their agricultural stake so there will be more action on the trading side of that particular sector. glencore as we said earlier up nicely 10% on more aggressive plans to reduce it's debt. >> looked a little surprised there. >> nice little sting to get us into the mood of earnings. edf shares are are pairing higher after the profit outlook of 2016. it now expects at least 3% organic growth this year of a previous range of between 0 and 3%. shares up 11.3%. german steal distributor has written down 270 million euros on good will charges on north american operations. it's expected to lead 30 million euros by the end of the year.

shares off slightly 1.2% but as you can see over the long-term suffering down still 60% over five years. >> sports direct shares in the red today as the company posted a slight miss when it comes to first half results and this despite seeing a 25% increase when it comes to profits on the bottom line. the company remains confident of reaching full year targets with the olympics and european football championships expected to provide a boost. let's check in on sports direct shares hammered today we're down 12.5%. the companies trading update showed coffee sales missing forecasts. the company said it has not seen the normal christmas build up but growth did continue across the group with sales up over 11%. the stock is still down 1.5% so far. >> we're in the red today but

not too pronounced. it's been a negative week for european equities. we are at negative territory but not too much. down 0.25%. let's have a look to see how that plays out and we'll look at that now and as you can see we got a little bit of negativity on the ftse 100 despite the basic material stocks doing well. the likes of glencore up 10% but the broader ftse 100 down by 0.2% and continental europe in the green but nothing too significant. around about a quarter of 1% for italy leading the pack. let's check in on trade in asia. sri is standing by in singapore for us as ever. over to you. >> hi, yes we continue to see the after effects of the stresses in the commodities complex play out in the asian markets so that's denting confidence but there's a number

of country specific themes i wanted to talk about. let's start with the nikkei under pressure. one of the last leaders today up by 0.3% at the settlement and it was largely down to the weakness in oil that we have seen. a degree of stabilization today in the oil price. however the yen was stronger. dollar on the defensive. that hit the exporters. staying with the currencies, we saw the yuan, spot rate, four month lows so perhaps there's an element of beijing trying to engineer softer currency to get exports going and we saw the data underperform on the external side when you look at the trade balances earlier on this week. shanghai off by about 0.5%. blowout jobs numbers down under from australia. the stock market took these very cautiously. off by 1%. very different story with the currency. the awe sy dollar off to the races today off by 1%. so divergence there with regard to the data.

i would say that china is going to remain the theme heading into next week because over the weekend on saturday wilf and susan we get the second part of the day from china. we get fixed asset investment and retail sales and industrial production so we'll have to wait for monday to really see the reaction play out in the markets here. so that's going to be the next big test of confidence. that's where we stand out here, back to you now. >> as ever, thank you very much for that, right, let's switch focus back to europe and have a little look at some of the flashes coming out of the s and b press conference. thomas jordan, he said that inflation lower than in the last quarter. he says the swiss franc still clearly overvalued. he says that the s and b staying active in the market and the willingness to intervene should keep the euro down. let's have a look at flashes. revised growth forecasts for the

economy and downward, slow growth felt in switzerland. undoubtedly a factor and the last couple of lines for 2016, expect growth of 1.5%. the swiss franc euro interest rate differential is significantly wider than at the beginning of the year. that's the latest flashes and the u.s. swiss franc not moving because the main interest rate did not get changed. it remains. do stay tuned later this morning. ooel bring you an interview with the chairman of the swiss national bank. after the central bank kept rates steady but said it remains active in the currency market. >> the new zealand dollar rallied around half a u.s. cent after the country's reserve bank cut the official cash rate to 2.5% however the bank did go on to hint that this cut could actually be the last one. also the new zealand central bank referred to china and the

groe global financial conditions for the reason behind this further cut. >> we have the bank of england situation coming today so lots to discuss and the senior european income strategist at jp morgan joined us around the desk. thank you for joining us. and come back to roughly where i were. they have to decide what to do trying to pursue policy following the ecb. and the next question is how far down can you take interest rates and today's decision is a validation that yes there is no

solid bound at 0% but there's a limit to how much further down you can go: is it a traditional safe haven. >> it's certainly a very safe haven currency. the swiss national bank is trying to go against it and telling people if you want to have this currency you have to pay quite a lot to hold it so the question about 2016 is going to be do you need safe haven currencies and in our central scenario there is nothing that's going to be so dramatic to push the s and b into very uncomfortable territory. the other problem for the snb is potential action. but either people's expectations have changed. possibly you're going to get a lot less stimulus in 2016 and that makes his life easier.

>> i was looking at the gpm 2016 markets outlook and the title is more divergence representing more opportunity. so i assume like you and 87% of the market you expect the fed to be hiking interest rates in less than a week's time. >> yes we have been expecting an increase of interest rates by the fed in a long time. the communication now is pretty clear. >> it's pretty clear but what is the reaction from other central banks when this is being lead by the federal reserve? they're hiking while japan might be easing? i'm just wondering if you're in switzerland what are you thinking? >> basically it's working it's way. you have a central bank like the fed that decided to be very aggressive in 2009. that policy has worked. now you have a tightening in the labor market. we expect a wage pressure to -- >> what do you think the bank of england is thinking? >> to me they are in a fairly

similar situation. they started early and you have improvements and our best case scenario is they'll start to increase monetary interest rates in may of next year. >> at the moment the level of dovishness we had from mark carny would suggest we won't get a hike later in the year at the earliest. do you think he'll be less dovish today? >> take a look at what the fed has done. they have layed the ground for a hike in december a few weeks ago. there's very, very little point given how few economies are performing well to tell everyone i want to raise interest rates. please push my currency up so i think it's a wise move but ultimately it's the macro developments that dictate what the central bank will do. >> thank you so much. >> right. let's bring you a quick flash before we go to break relating to orange, and bouygues. no discussions under way

regarding the possibilities of orange buying the controlled french opportunities. the price action not much movement just a little bit from bouygues. >> okay so we're going to go to break here on worldwide exchange but we're going to be talking about a company that wilf is such a big fan of. big fan of. >> i cannot stand this company. >> come on. it's because there's too many pieces. >> it's because it's the most stressful place to spend time. i've only been once. >> you've only been once? we have to go again. you're probably wondering where is that. where has wilf only been once? it's ikea. and we'll hear about the steps the company is taking to integrate renewable energy into it's business plan.

>> good morning. let's get to the headlines. investors cheer a new debt reduction plan as the mining giant plans to further cut capex boosting resource stocks across the board. >> rumor has it syngenta jumping at the open on a report that chem china could be considering a bid for the agri giant. >> highly anticipated updates of

the ceo on the emissions scandal in under one hour's time. >> thomas jordan saying die vergi -- monetary policy is a huge challenge for the swiss bank. saying it would stay active in the currency markets. >> should we have a look at forex susan? >> why not. >> well t euro is softening to the tune of 0.6%. it had a bounce yesterday crossing above 110. in the space of a month we had gone from above 108, down into 105. back above 110. extraordinary volatility in how much that was crowded in term of monetary policy. tension on the pounds today which is flat as we stand right now. 15176. expecting to rate change from mark carney. he is due to speak in an hour

and a half's time. a rate change would be a surprise for the market. we're looking at the yen weakening 5.3% today. let's look at equities in europe as well where we're in the red for the ftse 100 despite glencore and other basic material stocks doing well. up to the tune of 10%. continental europe up fractionally but a soft couple of days. nothing too pronounced. leading the pack is italy up 0.3%. let's talk about tui and they're seeing revenue grow 8% in the first half. rising 23% to over a billion euros and this despite a terror attack on one of its most popular destinations, tunisia. speaking earlier on the show, they said the company was managing the heightened travel concerns. >> we have a lot of alternatives for our customers. revenue was by 8% and profits by

22 to terrorism attacks are there and they're everywhere but you know we're not too concerned when it comes to the reflection of business. >> what have they done internally at the business in terms of changing destinations or, you know, managing lower bookings on certain routes? >> there is a little bit of reluctance to book in tunisia and also they're effected but at the same time our business model is flexible enough to offer alternatives to our customers like in the winter and in the summer. >> okay and stage koef was another name we were talking about yesterday. really falling because of the concerns in the declining traveller numbers to paris. let's talk about the members of congress and they say they'll receive high level classified briefings now on the san bernardino shootings later on

today and this just a day after fbi director revealed new information to congress about the background of these attackers. let's get up to washington d.c. tracie potts joins us this morning. >> so what might we learn after these briefings today? of course as you noted they are classified. they're likely to get a lot more detail than we have publicly about what the fbi is earning about these shooter bfrs ts bef attacks. they believe these two were radicalized years ago. before they started dating and before they met online and before the wife was brought here on a visa and before the rise of isis and before tashfeen malik was approved for that visa here. now the white house says it's too early to make pronouncements about whether or not that system failed to detect her radical

leanings before she was allowed to come to the united states. we are also learning as investigators dig for clues into san bernardino they're hooking into the smashed phones and hard drives that were left at the house. we're learning more about what their plans may have been. california high school, another building. another public event based on what they learned so far. >> tracie potts in washington d.c. >> first, solar shares are slumping in the overnight session after it cut it's revenue guidance for next year to between 3.9 billion to $4.1 billion and that missed expectations and this despite the renewables company beating the street when it comes to earnings guidance. climate policy makers they have stripped 19 pages from a draft climate agreement as tomorrow's deadline looms at cop-21 in paris and that's exactly where we're going where steve has been

holding court for the last few weeks. so what does this mean for this, i guess, all encompassing climate change deal that we're expecting for the first time in 17 years. >> do you know what, i think in the united states they call it where's waldo. we call it where's wally and you play the game where you try to find wally. but here you try to find the contention. it's easy to do. on page 2, page 3, you can see the point. decarbonization. 1.5 degrees. monitoring. global adaptation. it's all in here. so i would suggest yes it's slimmer but there's still the same old bones of contention, financing, trust, 1.5 or 2 degrees c. monitoring verification. i could go on. i normally do but there's still a lot of work to be done. i know they all work through the night on this one as well. so a lot of work still to be done to firm up this deal as well. an interesting note that china which has been seen at the front of pushing for a deal, some

people say has been a laggard on some of the issues. so interesting to see how things are changing very quickly. elsewhere, i have been out and about. where else do you go in paris? ikea. yes, i went to ikea to talk to the ceo. we had a tv exclusive talking to him about the yearly summary and numbers that have just come out. big increase in net profit. 11.2% higher. 19% tax rate. people will be interested in that because it's a dutch based company and there's been questions about tax previously but they're paying a 19% tax rate there. revenues are well on track for their figure of 50 billion by 2020 as well. i spoke to him about a lot of things and about whether they're getting to a saturation point. there's a lot of ikeas all over

the place. >> absolutely not. markets are below 10%. so we still see a fairly large tun to continue to grow and to develop and besides that there's a growing middle class in many countries, growing middle class that would like to have a place to eat. a place to cook. a place to dine. >> and i think you can all get the answer to this one. where are most of their big stores? where are are 8 out of 10 of their largest stores? not the states, china. interesting. already massive in china as well. we talked about sustainability as well. i have to say it would take a better man than me to pick too many holes in their credentials on the sustainability front. 53% of their energy equivalent have wind farms. they'll grow that to 100% by 2020 and looking at recycling of products as well but listening to what peter had to say about

the sustainability credentials. >> we'll come back to that in a couple of years but that's the way we have set it up. in a way it's a transformational change. it's a transformational change of our business. producing by 2020 the same amount of energy from our own renewable sources. from wind turbines, installations, et cetera. it's a huge challenge and of course you need -- you need sometime to do that. >> for a company like yours and obviously you have your wind farms, is wind the answer for northern europe or is there something else -- is it a combination of wind and solar? i just wondered because a lot of corporates are looking at how they source energy. you think wind is the key. >> what we see is our wind turbines are very effective and we have 314 of them now and we have 700,000. it takes a lot to create the same amount of energy and even

if we have big roofs, still it's a limitation but the efficiency of them are improving significantly on the solar panels but wind for sure is going to be very very porn but there's other things, heating that is very efficient that we have done in my old home store. so it depends from country to country. >> let me ask you a cultural thing. i go through the marketplace and every single department as well and i can't help thinking and clearly it is designed to make me buy more as well. to make me buy potentially things that i don't necessarily need. a little bit more conspicuous consumption as well. is that sustainable? is that green?

is that in the spirit of the 21st century? i wonder because i come into ikea and i buy more than perhaps i wanted to buy when i walked in the store. >> it's a very good discussion. there is the long natural way and what we try to do in our stores is share inspirations with our customers on how to have a better life at home and what we do is that we visit homes, we understand their needs, their dreams, we stand outside of a bathroom, on tuesday morning to understand how that's working and then we try to help people to live a more sustainable life at home and better life at home and then you need a lot of inspiration to be able to communicate that to the customers. you the point in of course there's people coming into our stores and probably pick out more than they expected from the

beginning. i still hope that it's need based and buying for the sake of buying. >> find out how ikea could be hitting the high street near you. more on their expansion plans. >> right, latest flash from the snb press conference. thomas jordan the chairman saying we do not exclude a further rate cut. that's the latest flash of course they left rates at minus 0.75% and we had no real reaction to the swiss frank off the back of that. jordan also says we don't comment on monetary policy of other central banks. so the euro swiss flat today. >> we're going to talk tech. the global vice president of chinese electronics giant

xiaomi. he is the international face of xiaomi which is called china's apple. and whether he's concerned about the smartphone market and saturation. we could be seeing slow down. no matter how fast the markets change, at t. rowe price, our disciplined investment approach remains. we ask questions here. look for risks there. and search for opportunity everywhere. global markets may be uncertain. but you can feel confident in our investment experience... ... around the world. call a t. rowe price investment specialist, or your advisor... ...and see how we can help you find global opportunity. t. rowe price. invest with confidence. is a really big deal.u with aches, fever and chills... there's no such thing as a little flu. so why treat it like it's a little cold?

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>> south africa's rand weakened

against the dollar to a record low on news that president jacob zuma removed his finance minister from office. he gave no details on why he has been dismissed after holding his position for less than two years. last week south africa was cut to just one notch above sub investment grade citing the impact of the commodity sell off. let's also have a look at some of the latest flashes coming out of fitch relating to south africa. the dismissal raises negative questions. that comes after the cut just a week or so ago. >> this is the apple of china. xaiomi has maintained the top smartphone spot replacing it at 16% of market share. one thing all researchers agree on is that the chinese smartphone market matured

greatly, possibly even slowing down. eunice spoke to the global vice president of xiaomi about the market conditions he's seeing. >> the smartphone market in china has gone through a couple of transitionary waves. it's migrating from 3-g smartphones to 4-g smartphones. we have gone through the majority of the waves already. it's a replacement market but it's a market where 400 million smartphones are sold every year which is much bigger than any other market. it's more than twice the size of the united states. so whether or not the market is growing almost doesn't matter because it's such a huge company. the migration from off line retail sales is only

accelerating. and that is changing quickly and in a few years time almost the entire market will be online and that's something that only we are well positioned to attack because we're not the hardware company but rather we're an internet company so we ride that off line to online wave really, really well. >> now we also asked him about copyright concerns ahead of enerring other developed markets. >> we're not the first asian smartphone company to get into markets around the world. many others have come before us and the path is clear. as a company entering any market you have to make sure that you have all of your ip licenses in place. so we have licensed those. you have to be prepared of course to the fact that people are going to come after you and try to, you know, sue you with their own patents and so forth.

so how do you do that? you have to have your own patents as well. we have so far filed over 6,000 patents and the world. 40% of the patents we filed we filed outside so we're also prepared for that. it's a known path, right? so license and assert your own intellectual property. we know that well and we're well prepared. >> okay. let's talk through it. >> good to have you. they call the founder of xiaomi the steve jobs of china. it's marl that phone sales are coming down a bit. >> indeed, that's been the case. not just for xiaomi but many other chinese brands. apple is growing a lot in china which put a lot of pressure on xiaomi who are competing for the

same segment and it's also expanding to air purifiers, tablets, fitness trackers and that sort of thing. >> also action cameras. but some are also reading this as desperation because in some ways when you look at actual growth percentages it's a maturing market but apple is making a lot of in road there is in china. >> exactly but what xiaomi is trying to do is recognizing that ultimately harder manufacturing is an extremely low margin business for everyone, basically, except apple. so by trying to spread it around and all of these other products and move out internationally it's trying to basically leverage some size and really try to make that margin more substantial. >> they're also trying to invest in developing their own

software. how far away are they from that being a realistic proposition where they don't have to rely on android. >> ultimately they'll be based and using android in the short-term. it's really not -- i can't see a future where they will completely move away from android particularly as it looks to expand globally. if you look at, you know, what's happening to blackberry and microsoft over the past couple of years as they have tried to challenge android and that mainstream market they have not been successful at all. they had big, big problems building an app ecosystem which is the major issue for any alternative platforms. even only yesterday they announced its going to be at least stopping it's firefox os efforts on smartphones so, you know, that's a trail that's littered with dead bodies. so i think the better solution

is to focus on whatever improvements xiaomi can bring to android and what ways can it look distinct from the likes of samsung and the other android brands out there. >> will those companies will look over their shoulder and pretty worried? apple managed to carve out it's own area of the market in china but the rest of those companies, you just mentioned they all rely on android. to what extent is xiaomi eating up market share. are they suffering because of xiaomi's growth? >> they're suffering and not just because of xiaomi. but you have local kings where you have local brands cropping up in turkey. in india you have micromax and you have other brands in indonesia and brazil and russia,

even in france. so you have the smaller brands and as, you know, as markets now are beginning to saturate and not just in china or europe but many other countries worldwide a lot of these brands are looking to international expansion to try to keep the growth going so there's going to be a lot more of competition over the next couple of years. a lot of these brands are probably going to fall by the wayside as a result. so that will be an interesting couple of years. >> a quick question for you. it's either coined or labeled as the most valued private company. so when are they going to ipo? >> i think that's actually tied to the issue of the market share in china. >> but if you were a betting man, when do you think it might

come? >> i honestly don't know precisely but you have to wait until xiaomi gets real momentum in india or brazil which will probably be late next year and can prove something good and positive to the market and investors. >> okay. thank you. >> now you can read more by heading to the tech transformers special report page right there on our website. cnbc.com. >> facebook at work. the professional version of the social network is set to launch in the coming months. a facebook spokesman says the new service is fwegeared toward collaboration in the work place. it looks like your personal facebook page with news feed likes and chat function but users will have separate profiles from their existing ones. facebook plans to charge a few dollars per month for users.

>> you would hope that's a little bit different from the personal ones. >> exactly. it needs to have quite a different feel, doesn't it? >> let's talk about walmart quickly. jumping into the crowded mobile payments market launching it's own system later on today called walmart pay. in select stores near it's headquaters in arkansas. a full u.s. roll out is expected in next year. it works with ios and android devices and it can handle any major credit, debit, prepaid, and walmart gift card. walmart down some 1.5%. okay. so we're going into the next hour of worldwide exchange. it's been nearly three months since it was discovered that volkswagen was cheating on emissions tests. we'll cross over live to volkswagen headquaters in germany.

>> hi, everybody good thursday morning. welcome to worldwide exchange. >> here are your headlines from around the world. >> ceo preparing to take the stage in a highly anticipated update on the emotions battled car makers emission scandal. >> digging deep. investors cheer a new debt reduction plan from glencore as they pledge to further cut capex poosting basic resources stocks across the board. >> rumor has it syngenta jumping at the open today on a report that chem china could be