shares reverse wednesday's gains following reports that regulators favor a cross-border tie-up with the european rival

a french bank blames a challenging environment for a 20% drop in revenues at its global markets and investor services unit. ab foods shares rise on their best day in over two years as they post stronger than expected sales for the christmas period good morning our top story today, british prime minister theresa may has narrowly survived a motion of no confidence winning by 325-306 votes. speaking after the results may reached across the aisle and invited opposition party leaders to talks in a bid to break the brexit impasse >> i believe it is my duty to deliver on the british people's instruction to leave the european union, and i intend to do so. now mps have made clear what they don't want. we must all work constructively together to set out what

parliament does want that's why i'm inviting mps from all parties to come together to find a way forward one that both delivers on the referendum and can command the support of parliament. this is now the time to put self-interest aside. >> however, opposition leader jeremy corbin has ruled out engaging in talks with the prime minister until one key condition is met >> last night the house rejected the government's deal emphatically a week ago the house voted to condemn the idea of a no deal brexit before there can be any positive discussions about the way forward, the government -- the government must remove clearly once and for all the prospect of the catastrophe of a no deal brexit and all the chaos that would come as a result of that

i invite the prime minister to confirm now that the government will not count on a no deal brexit from the european union >> let's get out to steve who is in westminster and has been following the story. i just want to go back a little bit, and i think what's interesting about yesterday's vote is that without the support of dup, she essentially would have lost the no confidence vote by one vote essentially. does that not mean that dup are effectively holding a sword over her head with respect to the irish backstop here, and what does that mean in terms of her future viability if there are further no confidence votes? >> i think you make a very good point. it's a point that's been raised ever since she failed to get a jrt for tories on their own when she went to the country, of course, in 2017. one could argue that the dup was never going to vote against the conservative government in a confidence vote even if they abstained, which would have made the numbers look -- it would have been tighter, but it wouldn't have got jeremy corbin to his stated aim of starting a

general election process that is the point of this first confidence vote. the reason why i say first is because there is no limit on the number of confidence votes that mr. corbin can call uponfor -- to test this government's metal and test her supporters steadfastness for her as well because there are traps being laid left, right, and center right after this small victory one would call it, a rare victory for mrs. may last night, she called on leaders of all parties to start an almost national dialogue, a consensus within parliament to try to get through the log jam, and as she quite rightly pointed out, parliament knows what it doesn't want, but it doesn't seem to have a majority for what it does want in terms of brexit going forward. mr. corbin laid another trap, of course, for mrs. may right after saying if you drop the no deal brexit as the default, then i will join these talks, of course, but if she does that, then there is a real danger she will lose support want only from the eig, and there's 118 mps who

backed her last night, but went against her on the previous night, but she could also lose more cabinet ministers from the more harder brexit leaning part of the party as well for mr. corbin, of course, the traps are there for him. if he goes into a dialogue with mrs. may along the lines of let's find a soft brexit solution, then, of course, he is alienating those in his party and there's 70 stated mps already, and there are a lot more who want a second referendum and want a people's vote as well as much as the tory party and the tory government is incredibly split, that can be said, of course, for the labour party as well, and mr. corbin has been steadfast in one thing. he wants to get rid of the tories and start a general election, but he has been less steadfast. i have yet to hear from a labour politician who can tell me that he definitely wants to go at some stage for a second referendum as well at the moment the log jam continues. what happens next? well, now we have this dialogue. now potentially we'll see whether mrs. may is going to drop her red line about the customs union because that does

seem to be somewhere where politicians of all stripes of conservative disposition could potentially find some common ground as well is mrs. may the right person to drive this consensus as much as she's a strong, she has great metal and steadfastness if her cause, is she the right person with the right charm to build this and, of course, whatever happens, we're going to find out what the plan b is by monday. >> i think -- you raise a lot of interesting points one of them particularly as it pertains to the parliamentary arithmetic, right? we heard from john mcdonald, and she said he believed if you look at the parliament right now, there would be a majority in favor of a permanent customs union. the question is whether or not that is true is i don't feel debatable, but the second thing is how would we get there without actually holding a general election or a change of leadership on the tory side? >> well, look, i think you've answered your own question if john mcdonald is right and

there is a consensus and a parliamentary majority for a customs union, then why would one need a second referendum why would one need a general election if there are the mps in place who can get over the line of a simple majority of the 650 mps in parliament, then they should go for it with the current parliamentary makeup rather than dragging the country through -- let me just remind everyone, with he had an election in 2015 just about got the tories over the line as well we had the brexit referendum in 2016 52-48. we talked about those numbers a lot. we had mrs. may dragging the country, again, to the polls in 2017 is there really the appetite amongst the british people for yet another referendum or indeed a general election or both of those, and there is the point which john mcdonald knows full well, as do politicians from the other side of the divide as well, is that there doesn't seem to be the numbers for a majority for either the conservatives or indeed the labour party going forward.

it's the same if a second referendum what happens if the second referendum is 51-49. 52-48. either way as well it leaves the same questions lying there and leaves the same splits in the country. all those people who advocate a second referendum, and, again, i'm apolitical all those people advocating a general election the arithmetic, the numbers could be exactly the same or a very similar picture to what we have now there is no way that anyone, john mcdonald, the conservatives, anyone asking for a second referendum or indeed a general election, knows -- in fact, they know full well -- it will be very difficult to get a majority view, a clear and decisive view in any of those snar yoez. that's the problem >> still very much in gridlock then, and, yet, one of the other proposals that keeps coming up is this idea of extending article 50 we've heard that the europeans may be open to the idea, but, of course, there is the elections are coming up. even if it's extended, we're only looking at an extension of

a couple of months will that really change anything, steve? >> well, i think you make an absolutely great point about the extension. that does seem to be a logical conclusion where i might differ from you is that it might be a couple of months as well i have seen anything from three months to six months to actually a whole year extension as well i think what they would almost certainly want from the european point of view, the quid pro quo, the part of it is let's clearly the big hurdle, a major european hurdle of the parliamentary elections, let's clear that and leave clear ground between that and any article 50 if march 29th were to be extended, and it seemds to me, dare i say it seems quite logical, so what do i know, that there's so much parliamentary business to be done, lots of indicative votes there may be 71 days left until brexit or until the article 50 deadline, but actually there's only 30 odd days of parliamentary business 30 odd days isn't a lot to get through the multitude of legislation indicative votes and

what have you and consensus that needs to be done in the meantime perhaps the only way i differ from ow that one is i think it would have to be at least three months, possibly six months, possibly even a year to get this over the line. >> we'll be back with you in about 20 minutes time anyway for more on the developments in westminster. one former irish prime minister has warned that a no deal brexit would mean psychological and political isolation for the u.k. for more head to cnbc.kcom. juliana. >> let's take a look at where things are trading at the moment we're an hour into european trade. it has been a morning where yourp even stocks have struggled for direction, and as you can see on the board behind me, the ftse 100, the dax and cac are all in negative territory. it is shaping up to be a bit of a cautious day here. this is despite a strong hand-over from the u.s. yesterday driven in large part

by u.s. banks and driven by -- and also despite a mixed hand-over from asia. of course, brexit sharply in focus here on the ground, and we are looking at a continued picture of uncertainty it looks as though equity investors are exhibiting some cautiousness today let's have a look at the biggest gainers of the morning in terms of sectors now, interestingly, food and bev, oil and gas utilities among the top performers, so a bit of a defensive tilt this morning suggesting that investors are taking a more risk-off approach to trade in the early hours of today. let's look at the losers of the day. the worst performing sectors this morning it is, though -- are those more trade-sensitive? cyclical sectors, autos at the bottom of the pile chemicals as well. banks as well. we'll get into a few single stock stories in the banking space, but interesting to note that despite the strong u.s. bank session we saw european banks are struggling this morning. >> all right more corporate news for you.

well, the full year outlook after posting a 16% increase in third quarter sales. the french group says its proposed rail tie-up with siemens is making progress and it expects to conclude the deal within the next six months the two companies are battling to win over european regulators who have raised competition concerns alstom says it has raised appropriate solutions but that there is no guarantee that the european commission will approve the merger in banking news societe generale the french bank now expects to book a 20% decline in its global capital markets and investor services units during the period socgen said it would book one-off costs reeld to some disposals. elsewhere in banking news, the european central bank doesn't want to see deutsche bank merge with its german

commerce bank according to multiple media reports they instead want them to tie up with a european rival to drive integration in the reasonable. according to reuters, sources commerce bank is thought to be too small to make a difference in deutsche's profitability. deutsche bank and commerce bank have declined to comment having a look at the share price, as we continue this morning, we are seeing a pull-back in deutsche shards this comes after a massive rally yesterday in the shares. we also saw a big bump in commerce bank in terms of that reaction, and deutsche bank, no doubt. some short covering going on yesterday in a knee jerk reaction to the news, and now this morning we're seeing some of those gains come off. i want to get out to aneta who joins us in frankfurt who has more on the deutsche story deutsche at the moment is facing record low it share price. they've also got a number of things going on internally christian, the ceo of deutsche bank, has a lot to do to get their house in order before thinking about a merger.

how much appetite is there within deutsche bank to do a deal aneta. >> well, actually, there is not much appetite currently inside deutsche bank to do a deal, but it's probably not what they wanted it's more or less the question whether they can afford not to do a deal. not just looking at the equity side, the equity story is miserable, but the bond story is even worse financing costs are on the rise, and when i recently spoke to the cfo, he was utterly concerned about those rising costs when it comes to financing the bank on the bond side. having said that, what's the picture? what's the story now, we have two kind of conflicting views. one comes from the regulators side, the ecb, and also the german watchdog. they are said to prefer a european solution, and it's quite clear why that is the case they togetherwould mean just two sick banks being tied up together, which does not essentially mean that they're

going to be healthy afterwards, and also, in addition to that, any merger between those banks would mean a massive loss of jobs here in frankfurt and elsewhere, a massive closure of branches it wouldn't go down too well yet nationally, so that's why, actually, many people do not like that tie-up scenario, but at the same time we have the different view coming out of berlin because clearly olaf schultz, the german finance minister, he was very vocal also already last year. also, when we spoke to him that he favors one big german champion as a first move and then eventually one could look at a wider cross-border merger especially because the banking union is not finalized yet it is quite handy to talk about a cross-border merger, but without an intact banking union, it might actually not really be feasible just from the laws,

legal side of things it's not easy to get it done essentially where we stand now, there's a lot of noise, a lot of rumors, but my sources also from command are saying that they haven't been contacted yet from the finance ministry for now it's purely a scenario analysis it's, of course, being calculated what it means to tie them up together, and now the german finance ministry apparently wants to have those documents, to have a look at the numbers behind such a potential deal having said that, there is a growing momentum in that story because those share price and the bond side of things are putting loads of pressure on the banks, and also, the looming downturn is not making things easier going forward >> interesting about this story, and that says that there's also another angle to it, and now we know that the finance ministry is actively involved there's a report in the ft this morning saying that between may

and december of last year a senior policymaker from the finance ministry had 23 talks with deutsche bank's chairman. 23 times they met in that period clearly, there is a lot of scrutiny on deutsche bank, and on their drive to actually do something beyopd the strategic turnaround that he has been pointing to. does that not mean from a shareholders' perspective that irrespective of whether the tie-up is with commerce bank or with some other trans-national, european champion bank that there will be a merger of some sort in the near future because of the pressure that's coming from the finance ministry? >> well, the finance ministry, not necessary, can trigger a merger for deutsche bank because they don't have a stake in it. what they could do, because they own a substantial stake in the bank still dating back from the years of the financial crisis, they could pull up that stake for sale, and they could trigger a merger or some sort of sale am

commerzbank. the ceo of deutsche bank is also known as being close to berlin he wants to have the support from berlin because in the past deutsche bank had a very sort of strained relationship with berlin with the political side of things, and that is changing with christian, and clearly, he probably also thinks that in the years ahead, he needs to have the support from berlin. needs to have some more lobbying also for a strong financial strl, but whether such a merger is imminent like first quarter, second quarter, it's hard to tell, and it's not very realistic, to be fair. back to you. >> excellent thank you for bringing us the latest on deutsche, and i'm sure this is not the last time we have a discussion about this topic. thank you. let's have a look at how the european banking sector is trading this morning on the back of this news as i mentioned earlier, we are seeing deutsche bank and commerce bank give up some of the strong gains that we saw yesterday. deutsche bank down about 90 basis points

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yeah. bring your phone. switch your carrier. save hundreds a year with xfinity mobile. plus get $100 back when you bring in an eligible phone. call, click or visit a store today. welcome back to "street signs. ab foods has backed its full year outlook after posting positive revenue growth over the christmas period the company said total sales rose 4% at currency, but modestly declined on a light for light basis. while revenues in the sugar business fell 12% on the year. in the banking space, goldman sachs shares saw their

biggest one-day gain since 2009 jumping 9% as the bank topped expectations in fourth quarter earnings the u.s. bank reported just over $6 per share in profit for the fourth quarter as well as around $8 billion in revenue. it's the stock's best earnings reaction since 2008. meanwhile, bank of america also beat forecasts as quarterly profits tripled to a record 7.3 billion dollars. shares rose over 7% on the back of strong performances in its consumer banking business coupled with lower corporate taxes. wednesday's news has been an underwhelming earnings season for u.s. banks morgan stanley set to announce its quarterly earnings today meanwhile, jp morgan ceo jaime diment has described a hard brexit as a disaster for the u.k. he said that a no deal outcome is unlikely as it would damage both the u.k. and the e.u. dimon also said jp morgan had no choice but to prepare for any

possible outcome >> we're prepared for hard brexit we had no choice from right from the start. the jp morgan chase can't be in a position where we get to march 19th and march 20th and we can't conduct business in europe it isn't possible. we've already spent hundreds of millions of dollars getting prepared for that. it's a really complicated situation, and the brits were dealt a bad hand, and they played it badly. >> all right speaking of brexit, let's take a look at some of the sterling crosses this morning in fx space. actually, this morning bucking the trend over the last couple of sessions, sterling is trading slightly on the back foot, but even so, we're still up a point and a half or so from where we were heading into the meaningful vote just a couple of days ago it feels like a long time ago now. the reaction, of course, since then was a big bounce in the currency that is the picture for sterling versus dollar. we're also seeing more strength in sterling versus euro this morning. weakness in the versus euro this morning to the tune of .1

percentage point if you put it into context over the last couple of days, it's still one of a positive sterling reaction to the developments on the political side of things that is a picture in the fx space. let's move on and look at fixed income as well, and here you can see that we are seeing a little bit of a bid for a core european fixed income it's trading at 22 basis points, and france at around 63. gui gilt unchanged, and still, very, very low compared to obviously where we were at just a couple of years ago there is that risk premium certainly being priced into gilt here i'm happy to bring in an expert on the subject gregory peters, the managing director and senior portfolio manager from fixed income. thanks for joining us. >> thanks for having me. >> i was just talking about the currency impact here since -- well, since the meaningful vote and also the no confidence vote, we have seen a bounce in the currency we've also seen a bid in equity space, particularly in home builders, the banking sector as

well are you seeing the similar phenomenon in credit >> i mean, the brexit news is really just highlighting the uncertainty, right i think investors just have uncertainty everywhere you have it in the u.s. with the government shutdown and the trade deal with china. you have it here with brexit, obviously. you have it in germany and italy. what i think that means is that you'll just see volatility what i'm trying to say is that it's really hard to interpret kind of the day to day price moves. i don't think there's a lot of informational content in that necessarily, but you have seen a strong rally this year versus the end of last year, but -- >> i would say around november, december, the topic dujour was what was happening in the credit space. we had the sell-off in december. credit, particularly in high yield space, since the beginning of the year, though, we've seen a massive tightening in high

yield. a big credit melt-up is occurring. do you think this is just a function of what's happening in the stock market and some of the macro-volatility risks you just highlighted there subsiding and moving to the background >> yeah, that and a change of calendar perhaps the end of the year was punctuated by just illiquidity the market moved a lot in fixed income, but there wasn't a lot of trading necessarily then we turned the calendar, and there was a change in sentimen just by virtue of that i mean, there was such a big move it was really difficult to play as a fixed income investor just because it was trading in a vacuum, but it definitely feels better, but there's been a really big repricing and who knows, maybe it was missed >> now, look at europe in terms of the economic data over the last several months. the data has been pretty soggy, would say, at best, and just earlier this week we saw german gdp come in 1.5% that's down significantly from

2017 france is facing issues with the yellow vest movement impacting economic growth. bear this in mind on top of the political uncertainty in europe, how do you see the risk-reward, and how do you see it compared to the u.s.? >> i think the risk-reward is upside down. i think your up side is capped you're up against a slowing, ever slowing, global growth environment. europe, u.s. as well, and i'm not sure you're necessarily getting paid for that. you will see a tradeable rally, but as far as an investment theme, year, two years down the road, i think it's more challenging. >> reading between the lines, underweight european credit. what do you think about u.s. credits here particularly as we found out in the last month that the fed are turning a little bit more cautious even the hawkish members of the fed committee are turning dovish now. i said hawkish i meant turning dovish what does that mean for fixed income space in the context of what you just discussed now? >> i think it's a slightly

better environment, but it's the same situation where your up side is capped in my view. if you have a situation where, let's say, economic growth improves and let's say equities do better, i think that reintroduce the fed risk again the ability to tighten, i think, is limited by that at the same time you still own all the down side of the economic cycle slowing and just a general risk factor. to me it's still one of caution even though it's not nearly as concerning with the fed seemingly being much more dovish >> with the fed saying that they're turning more data-dependent, in your view does that mean that the market is right, they're not going to hike again in 2019, or does it mean that the market has gotten just a little too skeptical? >> the market is not pricing in a cut, which seems somewhat heroic to me i think the market has pushed it a little too much. the market has been leaning against the fed now for the past, you know, five years

you know, i think the real answer likely is in between what the market is pricing and what the fed is telling you that they want to do, but we still see a couple of rate hikes this year not in march most likely, but the data strengthens i think that reintroduce the fed. that risk, that reintroduction of the fed is a risk that i think you'll constantly battle throughout the course of the year >> certainly makes sense as you say with the market pricing in a cut for 2019 thank you so much for joining us today. gregory peters, managing director and senior portfolio manager from pgim fixed income i just want to bring you some news that we got. we've been following this story very closely carlos ghosn, obviously, still under arrest in japan, and we've just had news come out now saying that his lawyers say that the tokyo court has rejected his bail appeal. they plan to submit a special appeal as early as tomorrow. that is as early as friday of course, this obviously has had knock-on effects on shares across the board from renault to

nissan and mitsubishi. all three names in that key alliance we will bring you the latest developments coming up on the show, another confidence vote. greek prime minister alexis tsipras narrowly survives. the battle over macedonia rolls on details after the break. stay with us hey, darryl. would you choose the network rated #1 in the nation by the experts, or the one awarded by the people? uh... correct! you don't have to choose, 'cause, uh... oh! (vo) switch to the network awarded by rootmetrics and j.d. power. buy one of our best phones, get one on us.

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welcome back "street signs." >> these are your headlines. european markets follow asia into the red after british prime minister theresa may narrowly survives a no confidence vote spelling further brexit deadlock deutsche bank and commerzbank shares follow reports that regulators favor a cross-border tie-up with a european rival >> socgen sees red as they have -- global markets and investors services >> ab foods shares rise on their best day in two years as they

post stronger than expected sales for the christmas period well, e.u. leaders have made clear that the irish backstop must remain part of any brexit deal this after several u.k.mps cited theresa may's proposal over the irish border as the main reason for rejecting her deal as ever, steve has been monitoring the developments. steve, we spent a lot of time the last couple of days talking about the reaction in equity markets and fx markets and the interpretation at least from the markets perspective is that the threat of a no deal scenario has subsided the big question is what are rating agencies saying >> i think you're right. i'll give you a little aside the gossip mill, it's nice being done at westminster, other than it's freezing. it's great i've been speaking to one shadow cabinet member he said to me he doesn't like the idea -- well, he doesn't

feel confidence in the idea that cross-party talks, whether it be at leader letter, ie mr. corbin or mrs. may, or the likes of oliver and others from the labour party, he doesn't think that actually there's much traction in that maybe he is just talking it over maybe is he like jeremy corbin and wants to get to the general election and another no confidence vote. his lack of confidence in cross-party talks, what does that mean for the u.k. what does it mean for financial assets going forward >> good morning to you >> good morning. >> i'm trying to make a financial decision on the back of brexit, and it's stunningly difficult. we're all trying to negotiate a torturous route path in terms of current thinking in terms of where britain stands, just run us through it >> so looking -- the political crisis is ongoing. you know, we're looking forward to hearing from theresa may in

the coming days the next step, so we are -- we confirmed our rating on the u.k. as a triple-a in december for a variety of reasons, but one of the key reasons is the u.k.'s resilience >> if the no deal scenario looks more likely, i presume that that risk for the derating of that triple-a >> brexit has the potential to, you know, potentially reduce the long-term growth in the u.k. via the trade, the investment on the migration channels however, you know, a no deal scenario, we would look at that as a kind of an event risk, and, you know, because of the resilient institutions in the u.k., our expectations are that the u.k. authorities would be able to manage any financial or economic shock that came from a no deal scenario >> so you don't think that we'll be downgraded from triple-a then >> we have a variety of rating

drivers for the u.k. rating drivers, of course, are a downgrade because the country is a triple-a brexit could effect after those rating drivers those rating drivers are, for example, the break-up of the united kingdom another one is, you know, a potential big financial shock completely unexpected, not foreseen by the financial stability authorities. or something like, you know, over time the u.k. shrinking its share of world trade this loses its reserve currency status those things, you know -- they're really long-term factors. you know, of course, we appreciate that there is some event risk, and they could be some dislocation we need to monitor that. >> it's completely and ut lertu. there is a view if jeremy corbin were to get into power, there would be risk of nationalization

of a whole host of assets. there would be a huge amount of money potentially raised in order to simulate positive investment is that a positive or negative for the u.k. investment scenario >> going back again to the u.k. institutions, says they're really strong and end pent they should be able to function in a way beyond any change in the political landscape. for example, the independence of the central bank, the fiscal rules, which would hold any future government into fiscal consolidation on reducing the debt ratio of course, there's the discipline of markets. of course, any change in the leadership, any change in government policy will be monitoring our baseline is that there are sufficient firm frame works in the u.k. to prevent any deviation from the fiscal trend. >> what about the sterling we do run a big twin deficit, trade deficit, which the trade deficit with the e.u., as many of the brexiteers thinks it's a

bonus, but it hasn't worked that way so far on the current account deficit, which is more challenging, if the pound were to suffer, if confidence in the u.k. were to go down the back, is this a sterling inspired scenario that actually would have you very worried about the current account and about the economy? >> i think we see the flexibility of sterling as a big positive it's the flexibility of sterling that would allow the current and the capital account to go back into balance >> okay. >> i know that the last few years we've seen a reduction in the current account deficit. that requires less net capital in flows to off set it and have a balance in payments. >> it would actually boost, of course, our competitive position and say in some perverse way if there were a harder brexit or brexit even asoft brexit the concern about the british may be misplaced then because the pound would offset that and would improve this competitive position >> we state that quite clearly this flexibility of the exchange rate to allow the adjustment is a strong benefit, and it does

mean that in past crisis the u.k. economy has been able to recover quite quickly, so even if we were to see a couple of quarters of recession, the exchange rate flexibility would come in and start improving export performance and import performance. >> the sun has come out, and you see more optimistic as well. all of a sudden my brexit gloom has disappeared. very nice to see you >> thank you very much >> co-head of sovereign ratings at dbrs. quite an optimistic outlook, dare i say triple-a rating and here to stay for a bit. back to you. >> thanks so much for joining us from westminster once again. now, i want to bring you some fresh headlines coming out of the french prime minister with regards to brexit. remember, the french have been pretty vocal in the aftermath of the vote earlier this week, and now the french prime minister has said that a no deal brexit is more and more likely, and france must get ready for this they have triggered a plan to prepare for a hard brexit, and

they will invest 50 million euros in french ports and airports to mitigate an eventual hard brexit. now, specifically the french prime minister has said that they will do more work on phishing they will defend the interests of french fishermen. really putting the pressure on the u.k. government. some pretty hard lines coming out there from the french prime minister meanwhile, hit afternoachi s brexit uncertainty and rising costs. in response the u.k. government said it will review alternative funding models for future nuclear projects after the announcement hitachi's horizon nuclear power said it will start a separate development program. meanwhile, greek prime minister has survived a vote of no confidence. this is days after his coalition partner withdrew support over a long-running dispute over macedonia's name here's more. you've been following greece very closely

what's interesting about yesterday's vote, rather like mrs. may, only just one. let's not forget that he is staring at the prospects of a general election in a couple of months time, new democracy are way ahead in the polls, so really it's just a matter of fighting against time here, isn't it >> exactly speaking to different analysts this morning, and all of them have been saying that the risk of a narrow election is very, very likely. there are two big risks that we need to look at even though tsipras won the confidence vote last night for instance, tsipras is heading now, effectively, minority government, so there's a question as to whether he will survive until the end of the mandate, and then, of course, there's a question of when snap elections could take place let's bear in mind that the prime minister-elect was in charge of ending the third of the bail-out program that happened last august. alexis tsipras mentioned that yesterday at the greek

parliament let's listen in. >> translator: i call on you whole-heartedly to give a vote of confidence for the government who managed to take the country out of the bail-out agreement. the government continues to fight to revive the economy and to bring the country back to normality. >> there's one particular party that he is very keen on having that early election, and then, of course, is new democracy, the opposition party, and the conservative party they are heading the opinion polls with about 10% difference. they keep calling for a general election, and he renewed those calls last night at the greek parliament as well >> translator: the country needs political stability. without stability, there is no growth without stability, there are no investments. without stability, you cannot regain the confidence that greek

desperately needs today. orders cannot be offered by a government patchwork it can only be offered by a powerful government with a fresh popular mandate. elections are the only solutions to move the country forward. it's important to monitor what happens next in greece over the coming weeks and months to understand, of course, whether that snap election will become a reality. >> all right sylvia, thank you for breaking it down for us and let us not forget, it will be also another tumultuous year for greek politics we'll keep an eye on that. let's take a look at european markets and check in where equities are trading this morning. really looks like they are struggling for momentum here the ftse 100, the dax and cac are down this morning. swiss stocks are up by a touch, but an overall cautious morning for european equities. this is despite another strong session stateside driven by strong u.s. bank performance no doubt the brexit gridlock is weighing on investors' decision making staying cautious as we

await prime minister theresa may's plan b that will be presented by monday. definitely a bit of hesitation in european markets this morning. let's get over to 4x markets and check in where sterling is in terms of the different currencies sterling is slightly weaker versus the dollar today, but very important to note that it is really holding within that 1.28 to 1.29 ban that has been trading in since the first vote of the two important votes this week again, this note that investors are waiting for what comes next and it's incredibly hard to make any high conviction decisions given the amount of uncertainty that currently hangs over the market looking across the other currencies, the euro is currently slightly stronger versus sterling, and compared to the yen, sterling trading slightly weaker just under that 140 mark now, coming up on the show, netflix, this is the first fang stock to report after a volatile quarter for tech giants. what to expect later today what to expect later today coming up after the break.croh's symptoms following you?

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s sss. welcome back to the program. chinese's vice premier will make

a two-day trip to the u.s. on january 30th for the next round of trade talks the country's commerce ministry confirmed the visit, adding that it "hopes the u.s. will be constructive." elsewhere netflix will report its fourth quarter earnings later today with investors keen to see how the streaming media giant has grown internationally. shares, including netflix, have jumped since last december, in part due to renewed optimism over u.s.-china trade talks. netflix is an interesting one. if you had bought the stock on november 24th, you would be up 50% by now a staggering jump there in the stock price. elizabeth joins us to break it down i remember the last time we were talking about netflix earnings, we focused a lot on the wedge between their international subscribers versus domestic vibe subscribers. is that something we'll be watching closely in today's announcement >> the number two watch in netflix earnings is always subscriber growth.

netflix projecting it texpects o add 9.4 million subscribers in the last quarter with 7.8 million of those coming from international. international growth is what is driving netflix. especially when it comes to markets like india where it sees massive potential. other things we'll be looking very closely at in netflix earnings today is the effect of these price hikes on its guidance netflix announced that it will be raising prices by $1 to $2 across its subscriptions in the u.s. and a few other markets the question is how much will this affect its guidance in the first quarter and going forward? some analysts saying this could turn away some customers, but others saying this is when netflix needs in order to fund its massive investments in original content netflix inves about $8 billion in original content the first nine months of last year, and that's because it's facing extreme competition in this market woef seen all sorts of players entering this space. apple expected to enter the streaming market this year nbc universal announcing that i

will be entering streaming netflix trying to really put its money into that content to try to differentiate stay at the top of this business we'll have to see what they say about that on the call this evening. netflix stocks does tend to be volatile on earnings we'll have to be watching closely on any of its guidance and subscriber numbers to see how that turns out, guys >> excellent, elizabeth. thank you for setting the scene as we look towards that release later today. our next guest adds it is critical that customers feel confident in the new products and services tech firms release. that is rachel botsman thank you so much for joining us this morning now, throughout the rise of tech, we have associated efficiency and speed with innovation and advancement, but in your research, you interestingly shed light on the fact that now those two features are actually the enemy of trust, and we're seeing apps build in speed bumps to slow down the

process. shed some more light on this topic for viewers in terms of what's going on with this phenomenon >> i think this is going to be a big theme davos. if we move so fast, it's not necessarily great for mental health, but we also don't always think about the things that we're sharing, the way the technology is consuming us i noticed on instagram last night when i was mindlessly scrolling, it came up with the you are all caught up. that's what i talk about in terms of the speed bump. it's this idea that a little bit of friction is really healthy. that it can slow us down and really ask ourselves where we're placing our attention and our trust. >> now, a year ago actually you were on a davos panel with one of our cnbc colleagues, and you were talking about the importance of trust when it comes to marketing of brands if anything, 2018 was a year where story after story went on to a road consumers trust and all of these social media platforms, whether it was cambridge analytica with

facebook, whether it was amazon, the numbers and the stories kept piling up. when you look at the landscape today and, of course, looking back at what we found out in 2018, i mean, how critical is this crisis of trust now that consumers are facing versus the social media companies >> yeah. i mean, i think the panel last year, and it was interesting because i had dara from uber on my left and martin soros who has seen a real fall this year i think it was a narrative last year it was more of a theme the pendulum has started swinging now leaders are startingto say when consumers, when users lose faith in technology, when they don't trust these companies anymore, what does that mean in a good way we're starting to get far more specific and precise. we're starting to have conversations around responsibility everything from the site of these companies, the responsibility around taxes, the responsibility of their products, the impacts that they really have in our lives i think the conversation is going to move away from a very

general narrative around trust and tech and an erosion of trust. what does that really mean, and how do we move forward now >> the big question on how we move forward is whether governance can keep up with technology, and that is another thing that came up in 2018 as well do you think that at the end of the day now the pendulum has shifted away, and people understand that regulators are trying as hard as possible to stay up-to-date with some of the innovation coming out of the tech sector, but ultimately, we as individuals bear responsibility and have to take ownership of what type of information we're putting out there? >> yeah. i mean, i am a huge believer in the role of regulation, but i don't think that's where the change has come from, and i think this year we've seen two types of pressures really starting to change the conversation and changing the behaviors in these companies the first is internally. i mean, if you look at the employee protests across google, amazon, facebook, them putting pressure on the companies themselves saying we don't necessarily trust you, we want to feel like we're actually making products good for the world, and that's having more impact on the regulation, and then consumers and users

themselves actually starting to ask really smart ethical questions. i think regulation plays a role, but, again, the conversation is going to shift in terms of where the pressure is really coming from >> quick last question, will we get to a place in the western world where citizens are actually scored not just on their credit rating, but on their citizen rating >> it's the number one question i'm asked because of what's happening in china around trust scores it's easy to point the finger at china and say that would never happen, but it's a really good question to ask in terms of how far we are off in the west in terms of constant tracking and surveillance that we will have some kind of trust score >> a little bit scary. rachel, thank you very much for joining us rachel, author and lecturer. that is it for today's show. we'll just leave you with a shot at how u.s. futures are looking anyofowahiup thk u r tcng he people? uh... correct! you don't have to choose, 'cause, uh... oh! (vo) switch to the network awarded by rootmetrics and j.d. power. buy one of our best phones, get one on us.

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welcome to this special worldwide exchange no top five at 5:00 today because today wall street and the entire investment community is remembering the life of a man who forever changed the way we invest and the way we think about investing. jack bogle, the founder of van garde group. he passed away last night at 89 years old. considered one of the world's great long-term thinkers and investors, bogle revolutionized wall street by creating the world's first index mutual fund. he was a true pioneer, someone that we got to know professionally over the years and one of the most cherished guests here on