good morning, everybody. welcome. you're watching "street signs." i'm louisa bojesen. these are your headlines today. deutsbank down, the lender posts a 1.9 billion euro loss for the final quarter. a winning formula. reckitt benckiser confirms merger talks with baby foodmaker mead johnson for $16.7 billion, sending shares in both companies sharply higher.

poor timing. shares in swatch ticking lower after a full-year net profit loss. but the company's ceo tells cnbc he sees a return to growth in 2017. shares of novo nordisk slide after the danish drugmaker lowers its profit and sales outlook for 2017. good morning, everybody. welcome. glad you're with us. we have another very busy day already underway with loads of earnings, lots of talking points. european equity markets this morning slightly mixed. we opened on a lower note across europe. right now looking at some markets point together upside. the likes of the ftse 100, the ftse mib also seeing slight gains. the xetra dax and cac 40 lower. deutsche bank being one of the

main fallers out of germany, off by almost 7%, 6.5%. when it comes to the sectors and where we're seeing selling, healthcare off by 1%. telecoms down 1%. auto is off the most this morning. financial services and banks also off by a half per st. technology pulling up, travel and leisure hanging on to brightness. let's talk about one of our main stories, namely deutsche bank. shares there trading sharply lore as i mentioned after the german lender posted a net loss of 1.9 billion euros during q4. legal costs during the period weighed on the figure, even as trade revenue picked up. the bank raised its litigation reserved by 1.7 billion euros in the final three months of the year. you're looking at deutsche bank share prices off by 6.5% or so. over the past three months we have seen gains to the upside of around 40%. 41%.

now, the deutsche bank ceo is just speaking at the moment. he's saying in key areas, business is looking better at the start of the year than a year earlier. for example, in capital markets. the deutsche bank ceo speaking live in frankfurt as we start the show. we have geoff cutmore joining us from frankfurt. so deutsche bank hit by these legal costs. shares off by 7%. what happens now? >> it's interesting, isn't it? we had a recent run up in the deutsche bank share price because the market was convinced that john cryan was doing a good job turning this bank around. they also saw the pick up in market volatility and positive sentiment around markets which lifted revenue, particularly from bond trading. but i have to say, given the selloff we're seeing, maybe some of those shareholders are losing

heart. there is a sense of jam tomorrow, but how long do we have to wait for that john cryan saying in those flashes coming through now that he sees reengagement from a lot of key clients as they have now resolved the litigation risk around that doj fine on mortgage-backed securities. serendipity is important here. the improvement in bank trading revenue has also coincided with a significant pick up in interest in trading as a result of the trump trade story. i think for the time being john cryan can continue to point to that and say we are moving in the right direction. i think these numbers are pretty muddy. it's hard to get a clear sense of what the real business model will look like once they come through the restructuring process. though very much for the time

being i think you have to take a big pinch of faith if you feel you want to engage with deutsche bank and buy into the ceo. but there are some ugly figures here. effectively all the profit they made for this year is wiped out by the fines. this is a second year of significant losses for the bank. so i can understand why a few of those traders today may be losing patience and pulled the trigger on a sale. back to you. >> jeff, thank you very mugeoff. chris wheeler is with us, a banks analyst from atlantic equities. good morning. >> good morning. >> initial thoughts to some points geoff was making? >> i think they're valid points. we've seen a great improvement in capital, liquidity. that's all good. more litigation reserves put to

one side. john is doing the job he said he would do. the thing that stands out which is welling the market is if we look revenues, fixed income revenues, that puts them at the bottom of the pile underneath the u.s. banks. it used to be a top three player, now they're sitting down with morgan stanley fifth, and they saw revenues rise year on year. equity trading revenues of 428 million euros, about half of the biggest bank in the u.s. and about a quarter of what goldman's and morgan stanley posted. john has done all this good work in terms of building the platform, but in terms of revenues they are slipping backwards. >> is that because people have lost confidence? >> no, because asset management down 5% year on year. all of these things means every time somebody is sitting at the trading desk and sees another

headline, they turn around to their colleague and say what the hell is happening now. it's a big distraction than just getting on, dealing with clients. >> do you think we've seen the worst we've had to see from within deutsche bank or will there be more? there's two-ways of thinking about this. one, that the ceo has measures in place to try to get back on track after these huge litigation costs. the other side of the story is there might be more. i spoke to a number of people who have seen the balance sheets of deutsche bank, they fear there could be more waiting. >> i think there's a lot of misconceptions when they delivered the position because the way we account in europe and how big their position is. their position is half has of jpmorgan and citigroup. i don't have those fears. people are still worried about litigation, a foreign exchange litigation is still ongoing. those won't cost them the numbers they've seen in this

quarter. that's fine. the problem, geoff touched on the jam tomorrow issue, is at what point can john start to crank up the equity? now he's done a lot of hard work on the balance sheet? and they're having to start further back than two, three years ago. >> 11.9%, the strongest in three years, how do they compare to other main banks out there in europe? >> in terms of european perspective, that's pretty high. of course they are being kept to a higher level than a number of their peers who are not as involved in the investment banking, don't have a list profile. they're getting there. they're up with the u.s. counter parts. but those u.s. counterparts go through a much tougher stress testing regime than europe does. so the fed is already allowing them to start to return capital shareholders. john is still trying to build it

higher. so he's again behind the curve on that one. >> how do you think deutsche bank will fair over the next year or so? will investors look at this as a buying opportunity? >> it's come back quite strongly from all the fears about would they have a government bailout? which is complete nonsense. i think i said that at the time. they had that. the problem is the next has to be on performance. they have to think about what's happening with post bank. part of the strategy was to dispose of post bank. i can't find anything in the papers on post bank. that's another major step forward for them. it is now starting to say let's put all this behind us, start to crank up returns. that's the way the shares will move up. >> chris, lovely seeing you. john cryan is still speaking in frankfurt. i like the sunshine motif this morning. i feel like we need some sunshine in our lives.

>> my daughter's birthday is this morning. >> what's her name? >> leoni. >> happy birthday, leoni. geoff will be speaking to deutsche bank's cfo later today. we'll bring you that interview as it happens. nokia reporting better than expected fourth quarter net profits sending shares higher, this thanks to selling part of its digital mapping business. net profits hit 663 million euros. shares in novo nordisk languishing after fourth quarter profits missed expectations. that stock off by 5.5%. the danish drugmaker lowering the 2017 earnings and revenue outlook ahead increased competition in the u.s. the ceo is saying he's not concerned about president trump's stance on pharma. and reckitt benckiser received a booth after mead johnson said it is in talks to

buy out the company. shares there are up around 3%. it's lucky for your daughter if her birthday is today, then obviously it's going to be happening again and again and again and again, her birthday for very good reason, but it's also groundhog day, held yearly in pennsylvania. it follows the groundhog punxsutawney phil. if the animal sees his shadow, we'll have more than six more weeks of winter. if he doesn't, an early spring is on its way. for the 131st time, all eyes will be on phil and his weather outlook. this little guy is just saying get me out of here. let me lie under a hedge, be a bit groundhogy. e-mail the show, streetsignseurope@cnbc.com. we'd love to hear from you. you can also find us on twitter,

either the main show tweet handle, or tweet me as well, @louisabojesen. coming up, time to grow. swatch's disappointing results after the break. we'll also get more on strategy and some stocks from our guests coming up in ten minutes on that. and the bank of england. that driverless car? i have seen it all. intel's driving...the future! traffic lights, street lamps. business runs on the cloud... and the cloud runs on intel. ♪ i wonder what the other 2% runs on...(car horn)

hi everybody. welcome back. you're still watching "street signs." what happened in asia overnight? guess who knows? pauline. she's in singapore. hi, pauline. >> good morning to you. asia markets had a tough time trying to push higher even after the lead-in from wall street. we're seeing a divergence between north asia and southeast asia, which is doing generally better. jakarta in the green at the moment.

i want to start with the nifty trading higher today, up by 0.4%, a day after the federal budget was unveiled yesterday. that budget was generally well received. there was supposed to be more investment in rural areas and infrastructure. but auto stocks are lower after weak january sales were revealed. let's look at nikkei. tokyo had a tough time today with the yen strengthening. we saw the nikkei 225 down 1.2%. also we got disappointing earnings from the likes of mitsubishi heavy and mitsubishi electric. the kospi ended down by a half of a percent. inflation rose 2% in the month of january, which is the fastest pace in almost four years. what does this mean? it was driven largely by food prices. the bank of korea will have to look deeply into this. they did reduce their target range. now it's at the target range of inflation, but also the bank of korea may sit on its hands for

interest rates which are already at a record low. the apex 200 ended down as well. it was trading higher earlier off strong export numbers, but couldn't hold on to the gains. exports for december up 5%, which pushed australia's trade surplus to a record high. that's a look at the markets here this thursday evening. back to you. >> thursday evening. we'll be right behind you in a second. still thursday morning here. thank you very much. pauline joining us out of singapore. swatch shares moving lower after the group's 2016 net profits fell by 47%. this thanks to weak watch sales which hit the swiss company's profitability. sales fell by more than 10% on the year. swatch saying they expect to see healthy growth in 2017. ing reported fourth quarter total underlying income of 4.5 billion euros by beating analyst

expectations. it proposed a full-year dividend of 0.66 euros per share. we spoke to the company's cfo, patrick flynn. we asked him whether he's easing up on the cost cutting. >> i wish it would lessen up. we are facing a low rate environment. so we, unfortunately, do need to react to that. we do need to be more vigilant with costs. i say unfortunately because it comes with some degree of social costs. >> shell's fourth quarter profits missing expectations due to a one-off impairment charge on 5$500 million. europe's largest oil company, a billion dollars shy of what analysts were looking for. shell was hit by lower oil prices and increasing interest expenses, especially resulting from its bg acquisition. the news rolls on. daimler posted record revenue and earnings in 2016, but shares

are heading lower in premarket trade. mercedes-benz car brand was the main driver of the numbers with an operating margin of 10.6%. daimler saying it expects growth in earnings and sales in 2017. we'll speak to the ceo at 11:35, a first on cnbc. by all means join us for that. and bank shares have been rallying after pretax profits in the fourth quarter. the danish bank announced a share buyback program of 10 billion danish krone. i will be speaking to danske bank's cfo in a half hour's time. the prosecutor's office in frankfurt is investigating a manager at deutsche bertha on

investigation of insider trading. this in the second half of last year after deutsche boerse said they were looking into the executive in 012015, two months before merger talks. and the federal reserve kept interest rates on hold. we have the chief strategist d from julius baer. they didn't say when they could be looking to tighten.

>> yes, indeed. the timeline was open. that was a cautious approach which is something we subscribe to as well. we think the federal reserve after being wrong about the economy for years, being bullish about economic development will see this time it holds. and that core inflation is picking up maybe beyond the comps. so we think sometime towards mid year or so, there's a fair chance for another rate hike. >> but you still think they're going to be hiking three times through 2017? frnlg>> yes. we think there's more direction. we think everybody is waiting for the tax deal, which will actually shape the u.s. economy in not only until year-end but beyond that. as soon as those measures are clear in how reflationary they will be, there will be also more probably somewhat more hawkish

tone down the road. for the time being, it's a wait and see mode. in the second half of the year we could be in for another two rate hikes. share with me what your esteemed and experienced clients suggested to you with regards to how to look at the u.s. and trade strategy. >> very seasoned investors, clients of ours made me aware of that, in terms of how to deal with trade balances. his suggestion was actually to look at those with the greatest imbalances versus those with the smallest. his thesis was those with the smallest were friends of donald trump and co, and those with the biggest balances were not. it was pretty much mexico and

germany bashing, or german automakers bashing, on the other side, those who have a large imbalance with the united states, very, very soft tone versus the uk and russia, which have small imbalances. so there seems to be a pattern. if that pattern is there, how do i trade it? >> i think for the time being, it's pretty immaterial despite the headlines, all the people that are shocked about the tone. we don't think this is a market mover per se. if the big elephant is addressed, china which runs the biggest surplus, according to that donald trump would need to immediately attack and confront china. if that starts to happen, it

gets more market impact. but we think the absence of that, in the first ten days tells us there's a lot of economic rationality behind that. we think this will not make the market fall out of bed. >> looking at some of your trading ideas. i'm looking in particular at some ideas of the week that you have. you talk about how in commodities you would be short oil, short copper and soybeans. is that a direct inverse play to a weaker dollar? excuse me, stronger dollar for the time being? >> of course some of those trades are heavily linked into the u.s. currency. we think it's more of a position issue when it comes to oil. simply too many speculative long positions of nonindustrial participants out there. it's been a bit

overenthusiastic. we think at these levels it's always a possibility. talking about days and weeks of opportunity to see that reverse. this is not something that moves the needle in the medium term but shorter term opportunities there. >> why do you like swiss and european small caps? >> because of fundamentals, in global economy which is broadens. we think this has caught on, not only from the european and global demand. secondly we got the second ctec signals. we see a lot of those names, but also indices everall, actually breaking to the upside. we think this is confirmation of this analysis. we are still bullish on those

names. >> stanley, black and decker you would buy. why? >> this is fundamental franchise which fits what's going on in the united states. it has a link into the housing market. it has a strong link into the domestic economy. so we think it's actually a great way to participate in a reflation mode in the united states and beyond. >> thank you very much. yes, valentine's day is coming quickly, thank you very much patrick. greatly appreciated. loads of you writing through with questions and comments. keep your tweets coming in, @louisabojesen or on e-mail, streetsignseurope@cnbc.

good morning. welcome back. you're still watching "street signs." i'm louisa bojesen. these are your headlines today. deutsche down. shares in the lender fall as the troubled lender posts a 1.9 billion loss for the final quarter of 2016 and ups its litigation reserves. a winning formula. reckitt benckiser confirms merger talks with baby foodmaker mead johnson for $16.7 billion, sending shares in both companies sharply higher. shares of novo nordisk slide after the danish drugmaker lowers its profit and sales outlook for 2017. >> brexit negotiations inching

closer after uk mps back a bill that will allow prime minister theresa may to trigger article 50. welcome back, everyone. super busy morning. that's always the case when we have the earnings season upon us. also we just got a bit of uk pmi data just hitting our wires as well. cable currently on screen for you. i have to be honest, i don't see it. let's see. actually, here we go. uk january construction pmi falling 52.2. versus 54.2 for december. that's coming in a bit lower than what we saw a month ago. and construction pmi input prices, the component there rising to 73.2 from 72.4, the

highest since august of '08. just glancing at some other lines. you have essentially construction in britain growing slightly stronger and we're seeing costs rising. that's according to the pmi data put through by reuters. five-month low for construction pmi data of 52.2 in january after a nine-month high in december. u.s. futures still nice and early if you're waking up in the states. hope you're not an insomniac. hope you had a good nights sleep. the implied open slightly lower on the right-hand side of the screen with loads of companies reporting stateside. we continue to watch key levels being played with in the u.s. on some of these indices. when it comes to european markets, slightly mixed. the ftse mib bucking the trend, the ftse 100, xetra dax and cac also seeing just some slight losses now.

just keeping in mind we opened on a back foot. the fx markets, we saw the dollar a tad bit weaker over the last couple of hours. we're seeing that in euro/dollar trade. 1.08. a lot of focus on sterling today. 1 126.80. solid uk data yesterday as well. today the bank of england decision. also the inflation report. that will be interesting to see whether we see changes to the growth forecast and whether they continue to toe this neutral policy line. some economists think governor mark carney could be braising britain's 2017 frogrowth outloo for the second time in three months, this after the brexit vote we had last year. at the same time, britain's exit

from the european union has taken a giant leap forward after the mps voted to back a bill allowing the prime minister, theresa may, to trigger article 50. the legislation passed by a majority of 384 votes. it will face further juteny before it can become law. the british government will publish what it calls a white paper outlining its strategy for leaving the european union. gemma joins us to talk about the white paper and the bank of england as well. let's kick off with the bank of england. no change anticipated there what should we be looking out for? >> i think you hit upon all the main points, insofar as looking to say to what extent the bank of england decides to revise its growth inflation yet again. they already revised upwards in november, but cut them quite dramatically in the wake of the

brexit vote at the end of june last year. yes, they are likely to revise it upwards again, that's after a cut since brexit. since november, when they last revised them upwards, there's been continued positive momentum in the uk economy and exceeding expectations. so q4 growth coming in at 0.6%. and annual inflation at around 1.6% as of december. this, again, was higher than people had been anticipating. governor mark carney said recently that he is willing to look through above target inflation for a certain period of time, but there are limits to how long he would be able to maintain that attitude. one thing we are looking at is will the bank of england maintain its neutral policy or will it be looking to send a more hawkish message with

regards to inflation. sterling will be playing into this process as well. >> what do you think we'll hear in this white paper? just for viewers who might not have been following this closely from abroad, what is the white paper? >> we don't know very much about the white paper. theresa may announced 24 hours ago she would be publishing one today. there's been different views in the media, speculation ever since then about what exactly will it contain. some people say it's going to be nothing more than an effective rehash of the speech on the 17th of january, during which the prime minister laid out her 12 guiding principles for britain's exit from the european union, a bubble most important, we don't intend to be a part of the single market going forward, and the union is not something we will be a part of in the current format. and other people think it will be in regards to strategy or the

government's thought about the post-brexit world. one thing that is questioned is what happens the around the 3.3 million eu citizens residing in the uk. so looking for more clarity on that issue. >> gemma, thank you very much. >> thank you. now, ian steely is visiting with us. good morning. what do you anticipate from the bank of england today? >> i think they will have to be looking out to the growth forecast. i think, as mentioned, growth and data has been stronger since. the interesting thing is if you think back to november, what they did was raise up near-term forecasts. they took down the longer term forecasts. whether we get a rehash of that. something they're concerned about is what brexit means and

what the impact of the uk economy will be post that. >> are you surprised by how resilient the uk economy has been since the brexit vote? >> brexit has not happened yet, we talked about it a lot, but what has happened is sterling collapsed. that's a bit of a boost for the uk economy. so near-term numbers, when you think back on it, they start to make sense. the question will be going forward and how it will play out. >> i look at the quantitative easing measure of 435 billion in total. are they moving closer to wrapping this up, do you think? >> they'll wrap up the government purchase. we'll find out more today, but i don't think there's need given the current data for them to do more government purchase. they wanted to keep a bit of ammo aside if things do turn down in the later stages of this year. the corporate purchase, i would expect them to continue with that. they're going at a much faster clip than first thought. we expect them to wrap that up over the next couple of months.

>> where are we heading now on gilt yield? >> i think gilt yields to me will move around with the rest of the global government bond market. when you look around the rest of the world, data is strong, whether it's the u.s., europe. which i do think will put upwards pressure on government bond yields, and gilt yields will probably follow that. >> so not a safe haven play pushing yields lower and removing us from this traditional relationship with the dollar to the upside? >> we could see that later in the year if we see the data turn down. at the moment the data wouldn't justify that. if anything, the data is looking good. the uk was the top growing economy out of the g 4. it defied all expectations, so there's no reason for guilt yields to go lower. >> where do you see value at the moment in bond markets? what should i be buying? >> there's a few places. everyone is discarding picked income. fixed income this year is doing better than most people had been

thinking. improving economies should be good for the credit markets. we still like the high yield markets. we acknowledged spreads have come in a long way since this time last year. there's still things to be done. parts of the emerging markets, maybe country by country, but still opportunities there. not completely disregarding fixed income, but a bit more opportunistic and flexible in how you invest in it. >> i see relevant questions coming in on e-mail. actually, they just disappeared. okay. i'll leave that for now and figure out where they went. ian, thank you very much. ian steely from jpmorgan assets management. now, join me in just over two hours time at 12:55 cet we'll host our bank of england decision time special. we'll give you full coverage of what takes place with regards to that vote and the press

conference will be covered. two-thirds of french voters would like to see the scandal hit center right candidate francois fillon withdrawing from the french presidential race, that's according to a commission polled by french media outlets. the former french prime minister denies the claims and is pushing ahead with his campaign. president trump's administration has put iran on notice after the country tested a ballistic missile over the weekend. important to note that the response from the u.s. came as well midway through a three-day exercise by 18 u.s., french, british and warships close to iranian waters in the gulf. michael flip, trump's national security adviser, suggested that

iran's actions were destabilizing the middle east as the country feels emboldened by a nuclear accord reached under president obama. with the environment and everything taking place out of the u.s., you have to try to see it from iran's side to understand the greater picture. nbc's kristen welker has more. >> reporter: a surprise at the white house briefing. president trump's national security adviser, michael flynn, unleashing a stern warning to american adversary iran. >> as of today, we are officially putting iran on notice. >> reporter: at issue, a series of provocations, including iran launching a ballistic missile test on sunday. flynn accusing iran of violating a u.n. resolution on ballistic missiles even though the u.n. is still assessing the situation. late this afternoon, a senior administration official says they are considering retaliating and wouldn't rule out economic sanctions or even military action. >> iran continues to threaten

u.s. friends and allies in the region. the obama administration failed to respond adequately to tehran's malign actions. the trump administration condemns such actions. >> reporter: iran said on tuesday it wasn't a violation and would never use its ballistic missiles to attack another country. the state department telling nbc news it was informed about flynn's statements ahead of time but not fully briefed. the diplomatic drama happening an hour before president trump's new secretary of state was confirmed. national security experts warn, escalating tensions with iran could have serious consequences. >> i just think that while we need to be very tough-minded and contain iran, there are more ways to achieve this objective than starting out the administration on such a bellicose, threatening way. >> reporter: as a candidate, mr. trump railed against the obama administration for not being tougher with tehran. today's actions could be indicative of a new tone. >> the statement is a signal of that rupture, that change in policy towards a more

confrontational, a more aggressive stance towards iran and its activities. >> we'd love to hear from you on this issue. iran, anything else you want to talk about. you can find us on street signs on the e-mail, streetsignseurope@cnbc.com or find me directly on twitter, @louisabojesen. it apparently wasn't a good first phone call between president trump and the australian prime minister, malcolm turnbull according to a report in the "washington post" which cites white house officials. trump told turnbull he held several other calls with foreign leaders throughout the day and this call was the worst by far. among the topics discussed was the resettlement of refugees on islands as part of a deal brokered by the obama administration. president trump later tweeted his criticism of that agreement,

saying he will study this dumb deal. some argue he should have studied the deal before yelling at the prime minister. coming up on the show, skipping all the way to the bank. analysis of danske bank's earnings, and an interview with the cfo, that takes place very shortly.

. welcome back. you're watching "street signs." net profit of the swedish bank

swedbank. when we spoke to the ceo earlier, we asked her how comfortable she was with the bank's capital levels. >> look at our capital levels today, 300 basis points above the actual requirement. we have a really, really comfortable, strong position. we are ready to meet whatever is coming. the uncertainty around basal 4, and we want capital so we can grow with customers. >> danske bank shares up by 4% on the session. up some 16% over the past three months. now, this thanks to strong income from interest and trading among other things. the danish bank announced a share buyback program of 10 billion danish krona. jacob aarup-andersen is the cfo

after danske bank. pleasure to have you on "street signs." pretax profit coming in higher than anticipated. net profit up 12%. talk us through some of the key points from your release. >> thank you. thanks for having me. to be honest, it's been good numbers across the board. we're pleased to see lending growth across markets being strong. that has been driving a good net interest income combined with the fact that we're seeing margins more constructive now. so some of the margin prices in previous quarters is ebbing out. so stabilization of margins combined with good volume growth gives us good net interest income. activity higher, so fees strong, and a very strong thick franchise. overall a continuation of the strong credit quality in our books. we are basically delivering 2016

without loan losses for the second year in a row. strong cost controls. pleased across the board. the one thing i would highlight, we're building strong capital. we generated another 50 basis points in the quarter. we have a strong capital position. overall pleased with the numbers, which reflects good internal initiatives and strong customer growths. >> your swedish industry colleague frsounding optimisticn capital levels and that that bank would stand solid if anything were to happen of an upsetting nature. do you feel the same way with regards to danske bank? >> definitely. i heard the 300 basis points mentioned. i have 420 basis points buffer, we feel strongly capitalized. we have the highest capital in

the nordic region, generating 2% a quarter. so strong cash flow generation. at the same time when we look at the potential regulatory changes coming in the coming years, there is a lot of debate around basal, but even looking at the more negative or adverse scenarios, we can deal with that within the current plans. very comfortable. >> let me ask you, because people i talk to are kind of scratching their heads quite confused with regards to the lack of transparency in the markets now. do you find your customers are holding back on investment products because of this? >> that's a good point. we see a dichotomy of behavior. market volatility leading to retail clients being more passive, subdued activity levels from them. at the same time institutional investors are being more active. so the volatility uncertainty we're seeing now is leading to

very different reactions and customer groups. i guess that's the strength of a diversified business model. >> yeah. >> how about mortgage activity? some are talking about whether we're seeing a normalized level again. >> remortgaging was strong for us for a couple years in a row. for '16, it's been more of a normalization. i think we've seen the big interest rate moves, which has led to the big remortgages activity. you need to see big moves again in the curve before clients start remortgagiremortgaging. we are expecting more wealth management units seeing an increasing assets under management, so we expect more on the fee side from that part of the business. >> as the cfo of a financial institution, what impact do you think a trump presidency is going to have on your sector?

>> i think trump for now, it's early days. the only thing we've seen from a financial perspective is steepening of the yield curve which is good for the sector. otherwise it's early days. i will refrain from politics and focus on what i can see, that's the steepening of the yield curve which is a mild positive. >> might be a smart thing. jacob, thank you very much. jacob aarup-andersen from danske bank. sony trimmed its full we're operating profit outlook from 270 billion yen to 240 billion yen. operating profit for the october to december quarter also fell. facebook stock breaking through all-time intraday high in after-hours trade with investors cheering solid earnings. the social giant posting better than expected profits and revenue along with an increase

in daily and monthly users. facebook shares were paring gores after it warned it would stop increasing the number of ads it shows on its quarterly product. >> reporter: the key take away, the social giant outperformed expectations on every single metric, despite tough comparisons. revenue, earnings, daily and monthly active users coming in better than expected. i spoke to cheryl sandberg about what is driving facebook's growth, she said more people joining the community, more businesses, particularly small businesses moving online and bringing ad dollars with them, and product improvements, putting more video on. another record for facebook, this time it's for photo sharing. beyonce apparently has broken the record for the most liked posts with her announcement that she and her husband jay z are

expecting twins. beyonce posted the news yesterday afternoon and it has notched up 7.5 million likes. our european markets, again, we're slightly mixed right now. just bucking the trend a bit with some periphery markets like italy, like spain. you have mainland europe trading a bit lower. now, we're going to be breaking in a half however's time or so to bring you an interview with the ceo of daimler. so, be sure to stay tuned for that. and incidentally, in around two hours or so we'll have the bank of england rate decision. no change anticipated but the press conference could be interesting. stay tuned. i'm louisa bojesen. i'll see you very soon again.

good morning. earnings alert. facebook beats the street. we'll tell you what mark zuckerberg and cheryl handbesan had to say. and the trump administration warning iran its on notice for its missile test. and renminbi in talks to buy baby food maker mead johnson for nearly $17 billion. it's thursday, february 2, 2017. "worldwide exchange" begins right now.