it will cost up to 950 moil euros in the first quarter as it aims to triple its cloud business in the next five years. >> we're doing extremely well,

and that's the precise time where you have to get your company fit and ready for the new market opportunities in front of us. the earlier you do it in the year, the more benefit you get on the performance of the company. norwegian shares sink to their lowest level after 2012 after announcing a share issue with a bid to boost its balance sheets the low cost carrier ceo says he is certain the company can become profitable. >> mp's prepared to debate brexit changes as theresa may votes for an amendment that would remove the irish backstop in favor of alternative arrangements zbliefrmgt good morning, everybody. welcome to "street signs." let's just go back and recap

some of the price action we've had over the last 24 hours u.s. equities ended the day red yesterday. nasdaq down just over 1% again, more concerns there about the trade tensions between the u.s. and china that sentiment really continued overnight as it meerjed that the u.s. had now formally criminally indicted the cfo of huawei, the telecom maker, that has sent ripples through asian markets overnight. it is eclipsing some of the talks set to take place this week between washington and the china counterpart with the vice premier heading to washington for talks this week. that is the picture overnight. you can eeurope, the mood is a little bit more positive

we've got it isn't really a meaningful vote, but it's amendments that could be done to the prime minister's deal. we'll have to see what amendments will go through and how that's going to impact brexit talks, whether or not the euro are going to respond to that cac up 3%. lvmh reports after the close today.

watch out for that from the luks know luksry perspective. switching to sectors so we can see where some of the leadership is coming from, and you have right at the top household goods. utilities are the main performers today, and you can see at the bottom we've got auto i was mentioning this is a sector that's underperforming. it's dragging down some of the german index here. there have been several down grades in that space too bmw, daimler also some of the names that spring to mind. technology, i mentioned, was some of the weak sectors yesterday. aleyes today on apple. apple earnings will be talking about that shortly we also heard from sap, the jrman tech company earlier today. a little disappointment being manifested down about 2% even though they beat on the cloud servicing business

right in the heart of earnings season juliana. >> excellent thank you. as you mentioned, sap in focus today. the company says it is targeting a company-wide restrict structuring that will cost 950 million euros in the first quarter. this after the company reported fourth quarter results operating profits for the period rose 22%, but missed estimates amid weakness and new cloud bookings however, revenue growth beat forecasts. now, europe's most valuable tech company says little planning to triple its cloud subscription revenue by 2023. earlier ceo bill mcdermott told cnbc that now is the best time to overhaul the company. >> we're doing extremely well, and that is the precise time where you have to get your company fit and ready for the new market opportunities in

front of us. now we're reinventing business software with experienced management the skilds that you have in the company that have accumulated over many years will have a chance to compete for those new jobs, but will not necessarily automatically go into them if they don't go into those jobs, we would obviously have a restricti restricti restricting change when you have very strong. that's what we do. >> the prime minister theresa may will ask conservative lawmakers to back an amendment later today that would pull for the irish backstop to be replaced the proposal from conservative mp's also calls for alternative arrangements >> u. kuchlt trade secretary liam fox, meanwhile, says there

is much less appetite for a no deal brexit across the e.u in an interview with the bbc, fox site cited the impact of a weaker german economy. fox also confirmed there will be another chance to vote against a no deal brexit now, wi liham joins us from westminster with more. good morning >> good morning, juliana i'm joined this morning by jonathan portis, a senior fellow that's an initiative to the main amendments today i want to vote on those to begin where. one that the government is seemingly proposing should be supported by conservative mp's coming from sir graham brady, that will try to replace the irish backstop with "alternative arrangements." has that got any chance of being well received in brussels, do you think? >> very little.

sirmly going back after making constructive workable proposal, the e.u. might be able to live, isn't going to get theresa may or indeed the u.k. anywhere. this really looked like just a recipe for the same loop we've been in in the last couple of months, which is the u.k. grappling around >> so critics of brady's proposal from within the conservative party seem to be that is just too vaguely worded. you're saying it doesn't matter how precise the concept it it's never going to get approved >> it is very vaguely worded, and the e.u. aren't going to like that. if it were precisely worded in a way which might just about make it at least an opening bid for renew negotiations with the

e.u., then it would lose the support of hard brexiteers once again, you have tleesa may trying to keep the conservative party together, rather than coming up with a realistic negotiating position frankly, we know prosecute experience that isn't going to work >> one thing that theresa may has repeatedly insisted upon as part of a negotiating strategy is holding open the possibility of no deal because she's argued without that she'll have no leverage if it there are going to be future negotiations. a number of the amendments that may be selected tonight for a vote involve ruling out no deal. what's the point of that proposal, do you think, given that you can rule something out, but unless have you an alternative, doesn't matter? >> that is indeed the problem. of course, the default is under the operation of article 50 we will be leaving the e.u. on march 29th without a deal if there is no deal what the amendments -- what the main amendments tries to do, the

so-called cooper bolles amendment is to say the prime minister would have to request an extension of article 50 from the e.u. now, actually, the e.u. preebl given that the alternative will be no deal, no with one really wants that, that's really just kicking the can. the e.u. is quite good at kicking the can. we've seen this before it may well happen obviously, it doesn't really solve the long-term problem, and, again, the problem remains the u.k. parliament is so far at least incapable of coming up with a majority behind one particular way out of this crisis >> are you concerned that there is a movement towards no deal that in the words of sir ian wayen, she's one of the chief negotiators that the u.k. is essentially heading towards no brexit almost by accident? >> well, i think as one twitter comment ator, i think, quite rightly put it, saying that we

could get there by accident isn't really right we do have a sovereign partly inlt if we get there, it will be because of willful ignorance, stupidity, and incompetent on behalf of both the government, theresa may, and collectively our mp's if they want to stop no deal, and, of course, the vast majority of them do want to stop it, it's really up to them to find a majority solution, a majority that gets behind a solution which isn't no deal whether that's theresa pay's deal, some alternative deal, a second referendum, which at least would throw it back to the people to select a new government and new mp's, or a second referendum, and i think at this point quite frankly, many of us would say actually simply settling on one of the alternatives rather than continuing to blunder around would be preferable. >> one final question before i let you go for those people watching across europe, whether they're business ornds, investors, ordinary citize citizens, is there going to be any further clarity by tomorrow morning? >> i think as i have explained,

neither of the two main amendments that are going to be voted on will in themselves solve anything very much we will know more about the balance of power within parliament by tomorrow we'll know more about just how week three -- we'll know more about the next steps, but we won't know where we're going >> really appreciate you coming this morning a senior fellow at u.k. interchanging europe that's an initiative at kings college london i'll hand you back in the studio >> thank you so much we will be back out to westminster shortly. meanwhile, in terms of the business impact of brexit, british grocers and fast food suppliers have warned of major disruption in the event of a no deal brexit. it warned that fresh food cannot be stockpiled. a spokesperson for prime minister theresa may said that plans are in place, should a no deal brexit occur.

>> phillips have reported comparable sales growth of 2016. core profit also jumped by 10% to 971 million euros easily beating on this expectations health tech companies said it expects strength in china to outweigh slower consumer demands and said it has moved hundreds of millions worth of production lines due to the trade war it's interesting that they're citing strong demand out of china. that's one of the few companies that's citing strong demand there. >>. >> semens has described its first quarter results as mixed with profits weighed down by its diagnostics unit the german firm also cited impact from currency volatility as it adjusted profits from 545 million euros just below expectations moving on to the banking sector sweat bank has posted 4.59 billion swedish crowns

that is a miss versus expectations volatility and stock markets hit trading results. net commission income also missed estimates, but the swedish lender ceo told us that there was still reason for optimism >> important message here is that the underlying business in all four markets was very strong in the fourth quarter. we still see mortgages we see lending across all segments in the baltics coming up, which is very, very go ahead. i think that the volatility will probably continue. we'll keep an eye on the net commission income. >> switching goers to the airline sector it's been quite an extraordinary week for norwegian air the shares this morning in norwegian air have plummeted t their lowest level since 2012 after the budget rarier announced says it's looking to raise money through a new share issue woosh the company says it's looking to strengthen its balance sheets as it moves its focus away from growth towards

profitability. the death toll has risen to at least 65 people while more than 270 are unaccounted for this is according to officials the disaster was caused by a -- operated by brazilian firm valley the cfo says the group is doing all it can to provide support. shares plunged in monday's trading session losing $19 billion in market value. insurer allianz may have to cover some costs arriving from the veil dam collapse. they assumed from risks from the local insurers from a consortium that's according to reuters. allianz has declined to comment on the report. coming up on the show, we will hear from saudi energy minister call he'd al falee.

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saudi arabia's energy minister says he is confident russia will pull its weight on opec oil production cuts despite a slow start now, let's get a look at the oil price. it's been quite a roller coaster over the last 24 hours for oil yesterday we saw a big pullback in the oil price with brennan wgi each trading down about 3% this was on the back of growing global growth, growing concerns around slowing global growth, and also that data at the end of last week showing that u.s. rig count had actually increased >> you know what's interesting, juliana, there is so much going on in oil space right now. you have all of geopolitical concerns you have venezuela as well don't forget that as well. the u.s. sanctions, that is clearly having an impact and will have an impact as far as it concerns the venezuelan he exports. a big chunk of them, the largest portion of this do go to the

u.s. people in that space and energy investors are looking at this and saying, well, okay, even though there's not going to be an imminent impact oday, there will be an impact at some point in the future. you can see this in a price drop we're still down 30% from where we were back in october as people come to terms with this slowing demand outlook then as you mentioned, the number one catalyst is opec and what opec have decided to do and speaking of that, i believe that hadley had a good conversation with one of the energy ministers in saudi arabia. >> add hadly certainly did, and he had interesting comments on

russia in particular we can get over to hadley. what more can you tell us about this conversation? >> hey, good morning, guys >> saudi arabia right here in riyadh he was supposed to speak to us first on cnbc. not just foreign investment, but saudi investment as well to move the country forward, and this is about the 2030 vision. in terms of what he talked to me about oil, he told me he has his counterpart from russia, alexander nobeck on speed dial listen in. >> industry is the number one priority for the kingdom oil is important it's going to be important for as long as all of us live and beyond for generations to come

the next few generations of saudi arabia are going to be shaped by how we plan and ek cute programs for implementing vision 2030 like the program we're launching today, and i had to give it higher riority. dave yoes will be there next year i will go again. my colleague from russia, alexander novak is on my short dial on my phone we talk regularly. we exchange views. all indications is that so far so good in january >> and the russians are still on track with their number because i know they -- >> they plomsed me they will pick up the pace i am hoping that they do better in february than they've done in january, and i think they understand that. they've got some issues that they're dealing with, but just like last year they will catch

up >> so saudi's energy minister there talking about the cuts, confident that the russians will play their part. i did have to ask him as well. we're talking about energy we're talking about inf infrastructure development there is one big question on the horizon for a lot of people sitting in washington, sitting inside the beltway, and that is what it means if saudi arabia moves forward with their nuclear ambitions, and we know from the iaea that they've made significant progress there i asked them what's happening now and if he is prepared to work with the u.s. take a listen. >> we're talking to -- of course, within the kingdom we're building infrastructure. we've selected two sides that are undergoing careful technical examination, and this is a process that will take a year. we've created the regulatory agency, and we've split it from the kingdom of science and renewable so we will have an independent regulator. we're building that soft infrastructure, the federal bus system within the kingdom to insure that safety and security

are never compromised. we're engaged with international agency for more clear energy and meeting all the requirements to insure that the saudi program is robust and meets the best -- highest global standards we're engaged with five conslor shum of technology, you know, providers and a project developers, and we've moved from bun phase of the feasibility and evaluation to the front end engineering with these five, and we will be able to do technical and commercial evaluation in the near future. we hope that we will announce in 2019 who is the winning bid and start implementing the program in 2020. >> how likely will that be the united states? >> well, like i said, the united states has fantastic technology.

many of the technologies that by other countries are actually derivatives of u.s. technology the u.s. is a great partner for the kingdom on multiple fronts we built our energy and chemical business that has cleared the backing for us american partners, they trust us we trust them. as long as we reach an agreement on the one, two, three that we are talking to our u.s. friends, the u.s. will be certainly, you know, a high consideration. is this something you can comment on, or is this fake

news >> i really don't have any information one way or another, so i can't confirm or deny this is obviously not my portfolio. i would say that saudi arabia is today the receiver, unfortunately, of a barrage of blis allistic missiles that are being launched at civilian installations, including installations that i am responsible for running within the energy infrastructure. installations that are so critical to the rest of the world, and because this is the source of the lifeblood of the global economy the rets of the world is watching and letting us get away

with this. the kingdom needs to look after its own defense. >> you may be wondering why they're pressing as well as the report coming originally out of the washington post and being reported elsewhere as well now that there could potentially be a ballistic missile being developed by saudi arabia. why would i ask the energy minister this? one of the main concerns for western leaders in particular for those in capitol hill is the idea of an arms race between saudi arabia and iran and certainly the things that we've seen over the last several years would indicate certainly that saudi arabia is ready to do its part, given the threat they see from tehran. now, of course, the uae has their energy program as well their nuclear energy program they signed a one, two, three agreement with the united states they're not enriching europe one of the things that people are questioning is whether or not saudi arabia would go ahead and bypass that one, two, three agreement in any kind of agreement with the united states a lot of questions on the table, and certainly ones not just guys about energy and the future of energy markets, but also about regional stability, politics, oil. it all goes together guys >> all goes together, indeed

thank you for bringing us the latest from riyadh there and that excellent interview with the energy minister. also coming up on the show, venezuela's state-owned oil firm is slapped with u.s. sanctions as pressure rachets up on embattled leader nicolas moduro. more on what that could could mean for global oil prices after the break. ♪ (vo) here's a question. was it necessary to create a luxury car more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪

zbloinchts these are your headlines this morning >> tech and auto stocks lead to losses in europe after the u.s. hits huawei with sanctions sap unveils a major overhaul which the german software company says will cost up to 950 million euros in the first quarter as it rams to triple its cloud business over the next five years >> we're doing extremely well, and that's the precise time where you have to get your company fit and ready for the new market opportunities in front of us.

the low cost carrier ceo says he is certain the company can become profitable. >> british lawmakers prepare to debate a series of brexit changes as u.k. prime minister theresa may urges her party to vote for an mdment that would remove the irish backstop in favor of alternative arrangements snoo european markets are marching higher. we are seeing gains overall. many split in termds of the regions. the dax is underperforming down about ten basis points at the moment the strong outperformer of the day, the ftse 100, with u.k. stocks about 1.1% higher now, of course, a number of

top-down macro themes continue to hang over markets talks have been complicated by the news that the u.s. is pressing against huawei with criminal charges of course, we've got the fomc and brexit continuing to hang over markets as well today it seems to be largely about corporate stories for the most part, and that is what's driving a lot of these big movers let's get into the fx markets. as i mentioned, the fomc meeting this week is largely in focus, and what we have seen really is a story of dollar weakness right now this morning that is continuing to be the case for the most part. the euro is about 0.8% higher. 0 .08% higher at 1.4 the pound is holding on to recent gains just above that 131 mark as we've been discussing all morning. brexit sharply in focus as mp's debate the amendments today and will vote on those later this

evening. now, i want to take you to oil markets as well. we just mentioned, oil has been a big mover over the last 24 hours. right now it is marching higher to the tune of 1%. this follows concerns off the back of fears from china and higher rit count in the u.s. the bounce we're seeing now is on the back of the news that u.s. has imposed sanctions on state-owned oil company in venezuela. on the back of what's gone on there over the past week certainly one to watch a volatile mood around the oil markets for sure >> speaking of those sanctions, as you mentioned, the u.s. has imposed sanctions on venezuela's state-owned oil company. the move will remove the amount of export oil exported to the u.s., and the trump administration will ramp up pressure on nicolas moduro to step down. now, the u.s. treasury secretary said a new government was the only way to remove these sanctions. >> the path to sakes leaf is

through the expeditious transfer of control to the interim president. meanwhile, nicolas moduro said president trump would be responsible for any violence to break out in the country >> translator: i make donald trump responsible for any violence that might happen in venezuela. you will be the one responsible, mr. president donald trump, responsible for this policy of regime change in venezuela and the blood that could flow in venezuela that will be blood that will be on your hands you are the one responsible even though you don't show your face. you are responsible even though you sent john bolton, mike pompeo and mike pence. you will have your hands full of blood if you bring venezuela to partial and unrealized violence. steve joins us now from flornsz at the annual meeting of baker hughes, a ge company, and,

steve, i believe you were joined with a commodity strategist who can hopefully shed some light on what this break sbeen e between sugs and venezuela means for the oil markets. steve. >> i think -- there are so many factors going into the market. let's see what she did can do. cnbc contributor and also head of kmoddy strategy when we get to all these -- this isn't a crazy meeting. this is about people buying and selling products we have so many crazy meetings and so many geopolitical situations, it's hard sometimes to work out what's the key factor certainly what the most interesting factor, the key factor, is what's going on with vends wail why as well you've been writing extensively about this as well just tell us what your pem is is for what's happening at the moment and what could happen next with regard to venezuela. >> the trump administration finally pulling the trigger on energy sanctions putting him

south on thee united states. why isn't venezuela national oil company sending any exports to the united states if they cannot get paid >> there is another view, which i've heard here as well. actually, it's quite a vague opaque statement as well you were alluding to this off camera as well the product can get to the united states to be a third party as well because there is capacity in the wording there. >> it's going to create a lot of risk for operating with venezuela, and it's going to cause a lot of concern for foreign companies. four ioc's how do you deal with now a sanctioned entity with the u.s. treasury department. it says u.s. persons cannot be do business. that's a pretty vague concept. >> i have been reading a lot of your copy as well. venezuela has been a tragedy for a long, long time. i think we can say huge

corruption, huge inept ability to run the economy very, very good oil ministers have been cut out of their position over years. people you and i have known for many years elpeno, and go back to ramirez as well. we've seen a whole host of ministers come and go, and with all due respect, the opec president as well, he is not an oil man through and through. the world can ready for this >> the tragedy, though, two decades in the making. i remember the oil strike in 2003 they never recovered from that first purj when thousands of -- it's a recovery of this country that's going to be an enormous challenge. we're just not there yet we keep saying, well, will the militarize up against moduro well, this is effectively a military government. he comes out of the national gua guard. the defense minister runs a food service industry in the country. will this put so much pressure on these sanctions that they finally turn on moduro

it's an open question. >> especially when you have such a geopolitical consequence on the back of this as well many people drawing parallels with syria as well, how mr. putin prevented the u.s. from imposing its vision of the middle east on syria we know there are russian assets in venezuela wra we know the chinese are also vested behind this regime as well this is an enormous geopolitical story. >> i mean, you are so right to bring up the syria example because that became a frozen conflict once the russians intervened they had a base there. that was a key strategic military asset that the russians wanted to protect. the question is does venezuela constitute the same type of asset for the russians they have apparently sent their military contractors down there. they've lent venezuela a tremendous amount of money there's a close relationship with the venezuelan government for years. how much financial support do

they give going frard? >> trump needs a win pelosi is one up in the long battle over the shutdown as wrshl there are other concerns about the trade war with china as well. mr. bolton had 5,000 troops to columbia that was an extraordinary faux pas, or was it on purpose? he never mentioned it, but it was on his copy, wasn't tsh as well do you think trump would go as far to create an international situation, possibly an invasion, in order to deflect from other issues he is having? >> i don't believe that this is the first thing they wanted to do i think they like to ep could the idea out there that every option is on the table we don't know if president trump -- he talks a big game in terms of u.s. power, but the question is does he really want to get caught in a military conflict in venezuela. we don't know. sanctions are the first step they would like the military to do this for them, to turn on moduro, but they certainly left the door open to something more serious. >> we haven't even talked about chinese demand, about what's going on with iraq

so many issues as well thank you very much indeed i think we're going to see you on wordwide exchange as well >> very soon >> viewers will get to see more. personally i'm very pleased. helema craft very long business cards back tu. >> steve, brilliant interview and very good analysis there on what was going on venezuela and obviously the impact it's going to have on oil markets skpshs i i should just say that we just got some word from russia's foreign minister who says that the usa is violating international law with venezuela. it says u.s. sanctions on venezuela are ill legitimate and unlawful steve has been very busy, and receive has also spoken exclusively with the egyptian petroleum minister

>> what we intend is to optimize the sceneries that we have among the countries -- six, seven ktsz this is the region, and the seven is italy where is italy representing europe in this forum, and not only that, but italy plays an important role in gas. italy also we consider it as the gate to europe what happens is that we want ultimately to have unified or optimized policies for the gas and capitalize infrastructure that we have by optimizing the usage of the infrastructure that we have in equipped, for example, and the source that we have in cyprus and israel and as

well as putting because it is not talking only about producing countries ear consuming countries, bulgts also transient countries. whereby gas with -- and we have potential countries that could be connected to our -- >> final question. can this act as a catalyst for peace because there are parts of the region that are having horrendous strife at the moment as well? can this act as i broader part of a peace strategy for the region >> this is typically what we are looking for. we were very proud and very happy to host the palestinians, the israelis sitting together in one room on the roundtable together with other neighboring countries like greece, cypress, jord know, and italy, like i said, and egypt. the benefit would be there the welfare will cover all the

countries because gas will be the cause of the revenues to generate opportunities, job opportunities, business opportunities, and it will bless all the people there hence, it is the catalyst, and it would be the peace maker really >> that was steve speaking to the egyptian energy minister there. also coming up on the show, u.s. authorities filed charges against huawei and its cfo ahead of trade talks, but the american and chinese officials later this week stay with us unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb.

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welcome back the u.s. has filed charges against huawei the justice department alleges the chinese telecommunications equipment maker and its cfo violated u.s. sanctions on iran and stole tech secrets from t mobile huawei has denied the allegations as the ministry has

called on the u.s. to stop the quote on reasonable suppression of chinese firpz >> chinese fifs are slamming the u.s. indictments with the i.t. ministry calling the move unfair and immoral while the foreign ministry accused the u.s. of are un -- the ministry also urged the u.s. to lift and an arrest warrant for huawei's cfo the justice department unveiled two sets of indictments. one is a 13 count indictment filed in new york, including money laundering, bank fraud, wire fraud, and conspiracy it alleges that huawei misled bankers and u.s. authorities to continue to do business in iran despite u.s. sanctions the u.s. charges that cfo joe orchestrated the scheme. this is what the justice department said. >> huawei asserted that all of its iranian business was in compliance with american sanctions. these alleged false claims led banks to do business with the company and, therefore, to

unknowingly violate our loss one bank facilitated more than $100 million worth of sky com transactions through the united states in just four years. huawei allegedly lied about other ritchs as well >> they attempted to steal robotics -- from carrier t mobile huawei has issued a statement saying it's disappointed to learn of the charges it also denies that it or its subsidiary or affiliate have committed any of the asserted violations of u.s. law, and it's not aware of any wrong doing of -- the indictments came the same day that vice premier arriveed in washington the u.s. commerce secretaries that the two ooeftds are unrelated, but the chinese have been viewle targeting of huawei as political, and so the latest move by the u.s. is very likely to weigh on the negotiations.

shares slumped to their worst day after the industrial bellweather reported fourth quarter earnings below expectations as weaker demand in china tloed a decline in construction equipment sales the company also saw costs rise due to an ongoing stairive war between washington and beijing the ceo jim says caterpillar is closely watching costs but warned of cooling your every yearly sales and stalling chinese growth.

china represents aabout 10% to 15% of our total construction industry sales and about 5% to 10% of total caterpillar sales and revenues >> caterpillar was not the only stock flagging the slowdown in china yesterday. nvidia shares dropped after the u.s. chip maker slashed its fourth quarter revenue guidance as it warned of slower chinese demand for its graphic processing units the lowered outlook has weighed on some of the the peers as well, including taiwan's semiconductor, advanced microdevices, and micron.

they've already given a preguidance, and that's one of the reasons why apple is suffering versus its peers just taking a quick broader look nasdaq up almost 6% on the year. apple down 1%. do you think all of the bad news is baked into the price sno? >>. >> that's difficult to tell, and we'll find out more. the big problem for apple really is aside from all the china stuff, which we've heard an awful lot about in the last five minutes already, that its biggest problem is that two-thirds its revenue is iphone, and the premier smartphone market has basically topped out there is no more organic growth for it to be had realistically it needs to find other ways to grow, and that's going to be very, very difficult >> just specifically coming back to the smartphone market as you mentioned, two-thirds of the revenue comes from selling the smartphone devices the i phones

what is the best clue that investors can get from today's earnings announcement on how the sales are actually going if they're not going to break them down by units? >> aside from what apple is saying, probably one of the best indicators for investors to look at is actually to look at component manufacturing every manufacturers. the display manufacturers are saying, what their camera manufacturers are saying and try to get that kind of input from if you want to slook at precise volumes. at the same time you can come at it from the other way, from what companies might want like our own where we provide data on what the sell-through is coming out from retailers and from distributors and operators >> appear willing has fried to shift investor focus which is expected to be a high margin business, and will be looking for guidance around what margins we can expect today.

the biggest problem is it's a complete retoolg of how the business operates, and that's probably the biggest struggle that apple will have the second big problem for apple is that apple has very much operated with a closed wall -- a closed ecosystem where it has very much been within its own devices. if you want to have a very services-led business model, you won't have the services on as many devices as possible bev already seen a shift happening. a few weeks ago in las vegas at ces, you had itunes being made available in smart tvs for the first time that to me is the first step in apple trying to reach out and put service says on other devices and to try to broaden that base and maybe those services much more accessible to consumers.

what does it mean for apple to be left out of the biggest trend in tech right now? >> that betts becomes a big issue. apple traditionally has been a little bit slower than its counterparts in terms of adopting new technologies. it's tended to want to wait until component prices drop a bit, and use cases can clearly be fleshed out, and it could really implement a very good solution for its customers however, it's in a point now where the market is very, very strict it doesn't have a lot of flexibility in terms of waiting. you know, it may feel like it's pushed to put in 5g early. >> very quickly we talked about smartphones and services what about thewearables units? are you expecting any good growth in that as well >> i would hope to see growth. it's very difficult because apple has never broken out precise numbers on that so far

it's definitely one of those areas where we expect apple to push more into we would expect apple generally over the next couple of years as well to broaden its devices base not just in wearables but to look towards more pushing more into smartphone speakers, pushing more into other areas to really try to broaden and diversify. >> great daniel, thank you for joining us on street signs. daniel glees orn, senior analyst from the consumer technology unit at ovem quick look at u.s. futures before we head out dow about 50 points. all eyes on the apples earnings as we were just discussing that is it for today's show. i am joanna versacy. worldwide exchange is up next. stay with us - in a crossfit gym, we're really engaged with

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pg&e filing for bankruptcy protection china firing back after huawei is charged with fraud. meantime, the u.s. imposing tough new sanctions on that guy, venezuela's nicolas moduro will russia or china bail him out? we're going to find out. theresa may staring down another big brexit vote in the u.k. parliament apple fixing a major security bug that lets facetime users eavesdrop on others. yikes. it is tuesday, january 29th, and worldwide exchange