♪ welcome to "street signs" i'm julianna tatelbaum. >> i'm willem marx these are your headlines this monday morning. >> european equities trade lowe china's services sector slows in january. >> the swiss bank cuts cost after full years earnings miss expectations the ceo blames lower client activity. the head winds in the markets will probably not go

away very quickly, and therefore we decided to come up with a more strategic cost and also efficiency program the goal there is to take out the 100 million cost block shares in ryanair tumble after full year profits will fall 31% and blames weaker fares. and tom brady helps the new england patriots beat the los angeles rams, 13-3, record sixth super bowl championship. ♪ well, a very warm welcome to "street signs" this morning. getting right into our first corporate story of the day, julian bear announced 100 million swiss franc cost cutting program. they reported a 4% increase to

735 million swiss francs we're getting out to joumanna with us in switzerland this morning. joumanna, thank you for joining us this morning. now, how are julius baer doing in net new money under management >> reporter: it's quite cold here and the reaction to the earnings this morning has also been quite cold in the marketplace as well. the stock is right at the bottom of the stock 600 i want to start off by pointing out something positive as you asked about the net new money inflows has come in at 17 billion swiss francs if you remember just two weeks ago, ubs 14 billion swiss francs lots of questions of what that meant for the broader sector, adverse market conditions and the fact that clients were not trading as much as they were in the past, but it looks as though

on that front julius baer has seen decent inflows coming in, 4 to 6% target range that was the positive. the negative is that their assets under management overall have declined by 2% and that's quite interesting because you would think in an environment where they're attracting net cash in, their assets would go up well, the adverse impact came from one decline in equity markets, stock market valuations have had an impact there and also negative currency on back of the euro as well. now, i had the chance to speak with the ceo just a couple hours ago, mr. hadler to go over some of the earnings. i think part of the negative reaction we're seeing in the marketplace today is on back of their weaker man gins. now their margins towards the end of last year were closer to 90 basis points range. they're now down to 86 basis points even though they're attracting net inflows, they're not making as much money from those clients as they were in the past i asked the ceo about this

let's hear what he had to say. >> last year we had fantastic first half and then the markets became more difficult and client activity was much lower in the second half. so, another drop and with regard to the return on asets is mainly coming from lower activity levels from clients and also performance-based fees that were certainly higher in '17. and looking forward a little bit into 19 we see that 19 started quite well with equities up about 7% and if i look at activity levels, they are higher than november/december, but not back fully at the level we saw in the first half of 2018. >> reporter: i think what's interesting about that is he mentioned specifically the first half of 2018 was quite positive when it came to client activity because people were trading more, because there was some

positive outlook on the european economy for whatever reason. so that attracted a lot more commissions. by the second half of the year, activity did subside there was a lot more hesitation in the air and even though they had attracted net new money as i mentioned, overall activity was a lot lower. they weren't able to capitalize or make as much purely from commission fees and the steady type of income they would have at the beginning of the year that was one of the reasons why those gross margins were a little bit lower and one of the reasons sited for the adverse reaction we've seen in the marketplace today. >> joumanna, you've seen this announcement of cost cutting what's going on with the cost side of the business there >> vil m, this is a theme reflected across the european banking sector as a whole. it's not just a question of profitability but one of reducing costs lots of head winds lots of competition in the marketplace when it comes to investing in technology, investing in r&d and digitization and overall

regulatory compliant costs as well all are constituting significant head winds this is 2% above their target of 68%. again i sat down with the ceo and asked him exactly what they're going to be doing on the cost income side of things because it doesn't look good from a cost cutting perspective. let's listen. >> expanding personnel last year specifically also in the front, more than 100 relationship managers, if i look back into 2018, we saw another slow-down the second half and we started with cost measures, tactical cost measures i would call it already. last year, slow down the hiring the second half if you compare to the first half. looking at marketing expenses and nonstrategic profits, butly call it more tactical. now we see that the head winds in the markets will probably not go away very quickly and therefore we decided to come up with a more strategic cost and

also efficiency program. the goal there is to take out the 100 million cost block channel expenses but also personal expenses over the next two years. >> when is it reasonable to expect you to hit that 68% cost income ratio. >> yet to be -- it will be difficult in '19 because of the cost measures will not fully kick in, but we we feel comfortable that in '20, 2020, we should be below 68. >> reporter: i should mention when it comes to their cost income targets they tweaked them slightly today in the past they had a target of 64 to 68, today the ceo said it's 68 indeed unlikely they get there by the end of 2019 as we just heard from them. it's interesting on the one hand they want to attract net new money. they attracted 17 billion swiss franc net new money on back of hiring new relationship managers

who brought these roips and the cash flows with them so they hired about 100 people last year, but now the pressure is one of more strategic variety where tactically, yes, they made a lot of hiring in that space, but fundamentally there's a lot of pressure for them to bring down those costs, as it is for european banks that's one of the things investors will watch out for over the next 12 months and whether really that 100 million swiss franc will get that cost income ratio back in line again. questions on the profitability side, the gross margins, but also when it comes to overall expenses and both of those reasons i guess are one of the -- two of the reasons why the stock is trading down more than 3% in trading today. >> joumanna, thanks for bringing that interview with the chief executive there of julius baer news here in europe, we heard on thursday voting to recognize juan guaido.

we were expecting based on reuters stories released over the weekend to hear from individual european nation states about that. we have not heard from spain, pedro sanchez, the spanish prime minister confirmed he will recognize juan guaido as the leader of the venezuelan government and expecting to hear from other european nations the next day or so julianna. >> thanks, willem. it's worth recapping where we left off at the end of last week it was a fairly positive week for markets worldwide. u.s. stocks all three major indexes there as well as the stock 600 ended in positive territory for the week and this included march hire for the most part on friday last week's narrative was driven in large part by encouraging rhetoric over u.s./china trade talks and payroll on friday which was impressive and exceed analysts expectations. don't forget, we got some very weak data on the economic side of things particularly out of

europe as well as out of asia and perhaps that is why european stocks this morning are a little bit more cautious. we're seeing the stock 600 struggle for further gains right now the stock 600 is about 0.12% lower on the day now let's get into european markets and see where those losses are coming from in terms of different regions interesting to note that the ftse 100 is the best performer of the day up about 20 basis points of course, brexit, nobody can forget that resman ascii focus for investors. at the moment it feels like investors are in a wait and see pattern of sorts now moving along beyond the uk into europe, the dax is down 22 basis points the cac down 33 basis points and the ftse mib down as well. investors digesting that weak data we got last week in the manufacturing sector, in particular out of europe now let's get into the different sectors and see how things are shaping up in early trade.

fairly even split in terms of those in positive territory and those in negative territory. autos is the worst performing sector of the darks down about 1% but important to remember that on friday autos were the best performing sector. we're seeing a little bit of a pull back there. oil and gas the best performing sector up 60 basis points. last week was another positive week for the oil markets now today we're seeing brenton trading higher the week ahead, corporate earnings remain in focus the banks will be a big sector to keep an eye on. willem >> continuing our conversations about equities, we're joined at the table. the f&p numbers were surprisingly good. how are you advising clients about the apparent disconnect between these historically strong economic fundamentals

we're seeing in the u.s. and the continued concerns a lot of market participants have about the future performance of some of these asset classes in the united states? >> that was the actual central theme of our outlook for 2019, american preeminence in a rattled world. we're where they like them to be unemployment is low and stable inflation low and stable, but the sentiment, the survey data is going up and down around that data for quite some time there's two time rises looking for us a year or so out, strategic time rise five, ten years out that way as far as tactic goes, if the markets do set off based on some of these rattled themes, based on lower sentiment, we're looking to add equities and taking profits recently because the market has come back to where it was in december long-term perspective, comes to how much stocks versus bonds you own, that comes down to your own risk tolerance most of our clients it's a

reminder but wakeup call to check the risk tolerance q4 was difficult for a lot of people so tactically we took advantage of the selloff which we thought was sentiment driven but as far as the horizon goes, we believe growth assets portfolios right mix of safety and growth, we should get through this. >> based what you've seen for the current earning season, how do these numbers fit into this thesis >> well, we did -- this is one of the issues that has gone, we went through strong growth number in q2 and earnings numbers. down to a more modest number in fact, we were worried we were coming towards the end of the cycle, as you put it but when we look to the earnings numbers now, there pretty much is not a lot of surprises up or down the total numbers come down, there's not a lot of necessity huge when the negative surprises.

we feel comfortable we're slowing down to modest earns growth looks like we're gradually revising down towards that level. >> so you just mentioned that consensus has gradually moving down to that level are you expecting to see further consensus downgrades and how do you justify holding equities into further downgrades. >> we expect numbers to come down roughly towards our range i said 3 to 6% range then that goes back to the sentiment. if those downgrades are happening in the environment people feel comfortable with unemployment and inflation, we'll take that's what normally happens. normally you get down high numbers to more modest numbers happening in more rattled environment, in other words, if there's more noise from trade talks, more noise about whatever it might be, the market might find that more difficult to digest. >> in terms of the bond side of things, in corporate borrowing has increased tremendously in recent years and as you say

corporate earnings growth is coming down but to still a fairly modest level, at what point do you get concerned around slowing growth impacting the corporate bond market? >> this is a key issue and another reason our clients are getting rattled the household debt has come way down, delivered a long way corporate debt is going back up, now slightly above the level it was in 2008. now, that wasn't the cause of the crisis in '08. can the economy carry that debt? we look for downgrade, big talk downgrade. these things tend to happen in recessions goes back to the issue of are we close to resnegs if we are, that debt level becomes problem to hold see more downgrades and issues not close to recession, more comfortable with the debt levels are sustainable. >> you mentioned the recession word i want to ask you about the interplay from your view between market sentiment and the

underlying performer we look at things like the investigation, trade disputes, authoritarianism in beijing, wherever you want to name it people clearly voiced concerns about. is there a concern at your shot that these worries could lead into falling asset prices and that itself could be enough to trigger a real significant downturn in the economy? >> well, this is important issue because we've all said to our clients, don't worry about the bear market and stocks we had the tip of bear market down 20% in q4 well, if we have a bear market again, that causes a recession there has been roughly 14 almost bear markets tip 20% and there abouts half have been involved in recessions and half haven't. bear market tends to be cause for recession but we can't say cause of recessions. if you talk of trade war and that's whole other big issue, to

us the damage isn't what it does to trade but to sentiment and everything else. that's as much as a drag on growth as the cut itself. >> we'll come back to the u.s./cu.s. u.s./china trade issue later in the show in your view is the fed doing the right thing for putting the pause right now for rate hikes. >> we think so a lot of people were surprised the fed was so auto pilot last year that was chairman powell's words and flipped to being patient and flexible it's not really the fed's responsibility to always pacifying the markets. but insofar as the markets can influence sentiment and give the chance the fed achieving the goals, they're trying to do the right thing. lot of unknowns with the impact of tightening, trade conflict that the fed has been responsible just taking a breather, see what the data is doing and start going again later this year once or twice. but for now, the pause seems to have the right effect. >> excellent as i say, we'll be back with

more later in the show certainly get to u.s./china trade. that was donough at goldman sachs private wealth management. if you want to weigh into the conversation, as always, get in touch with us on twitter at "street signs" cnbc and tweet us directly. coming up on the program, growth in china services sector falls slightly down. back with a full breakdown right after this break

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♪ welcome back to the program. bank of america merrill lynch upgraded the european auto sector from neutral to bearish for the first time in nine months now taking a look at the auto sector this morning, we are seeing stocks trade lower, but as i mentioned earlier, we did see a big bounce on friday so perhaps just getting back some of those gains we saw at the end of last week now switching gears away from the auto sector, wild card says an external law firm has found

no evidence of misconduct by its employees. the payments firm saw its share price tank last week after a financial times report about financial irregularities at its office in singapore. the german firm issued a statement that the investigations finding, quote, fundamentally contradicts the ft's report and in fact, confirmed the strength of its government procedures. meanwhile in the airline space, ryanair reported a 20 million euro loss in the third quarter and blamed on weaker fares. they expect the losses to continue through 2019, means forecast profits for the year to march will drop 31%. the company also blames strikes, higher oil prices and overall capacity for the outlook they cut their profit loss for the second time in three months. activity in china services sector lost a little bit of momentum in january, according to a private survey. the pmi fell from 53.9 in

december to 53.6 in january. it still stayed well above the 50 market that indicates growth, but chinese services maintain relatively solid pace of expansion at a time when the country's manufacturing sector continued to cool. separately, chinese economic weakness has shown up to mixed effect in global earnings report consumer and luxury companies performed particularly well so far and on going corruption crackdown has for some time reduced demand for high end goods. last week, lvmh reported broad based strength in china. the country's tech sector is showing some signs of pain nvidia, qualcomm blamed trade tensions for a slow down apple, the world's largest smart phone maker shocked markets with falling revenue in the chinese market we just have fresh headlines around the uk who has said that they alongside european allies

now recognize juan guaido as interim president until credible elections can be held. another government coming out in support of guaido. that's the latest in terms of what is going on with venezuela and how the rest of the world is reacting to developments there. >> should expect to hear, i suppose from other european naxs over the next day or so as again reuters reported last week following that european parliament decision to recognize mr. guaido i'm not going to ask you about venezuela but do want to ask you about china. essentially from your perspective in terms of giving advice to clients what can you possible say about this trade dispute and potential resolution other than what's based on various statements from leaders. >> it's a fair question. we've long been nervous about china not to do with trade fwou do with the industrial model they have, the amount of credit

they built in the market we have been under for a long time because of this the trade order, this is one part of a very, very long term competition we're going to have between the u.s. and china we believe they'll do a deal in the coming months mainly because both sides want to do some kind of dpeel president trumps wants to do a deal and china wants to do a deal there are bigger issues they have to fix, intellectual property, the whole chinese model, much bigger than any trade deal will fix soon we do believe we'll see something along the lines of chinese increasing imports of u.s. goods, for example, and noise around that. >> all these structure problems the reasons that the kind of, i don't know, commercial economic brain trust and the trump administration went for this fight in the first place if all it means you're going to buy 34r of our products but long-term does it not just delay the inevitable conflict we'll see down the road?

>> well, it definitely delays. the competition will always be there for sure and different voices in the trump white house. when it comes to it, neither side wants to go into more aggressive combat on trade we think they will settle for some sort of deal trade balance the reduced. that long-term competition based on the whole chinese model will be there for a long time. >> this uncertainty for investors, do you think that extends to people like jerome powell as they're facing this very unclear threat matrix from china and what it could mean for the u.s. economy >> that's a good point one thing we stresed in the outlook, all the things we're hearing from president trump and the rest of the chinese, the style may be different but it's not unprecedented. we had, for example, reagan went after the japanese, a big ally at the time on auto tariffs. we've had presidents in the past, whether it be president

nixon, president truman and president reagan went after the fed -- went after too strong word influence the fed to change their policy the u.s. has gotten over these things that have happened before the style may have been different, but these are things the u.s. has dealt with and got over multiple times before gives us confidence we don't know the exact path through this, u.s. does get through this. >> sounds like your base case is that we do see some sort of resolution that brings the trade into more of a balance between the u.s. and china assuming that's what happens, what does this mean for europe >> that's a very good point. europe is very open, large economy. very open for trade. and export growth large growth entire cycle and germany is case in point if the chinese agree to buy more from u.s., auto parts or cars or sales, they'll buy less from somewhere else look at the trade substitution, what does china buy from the other countries might then buy from the u.s.? unfortunately automobiles and

parts huge part of european export machine could see negative impact. >> now, if we look at the data and just overnight we had the services pmi coming out of china, which was did weaken a bit but is on the strong side still, still well into growth territory, in stark contrast what we've seen in the manufacturing side of things, in terms of that divergence and performance, how should we look at this for european companies in terms of the slowdown we're seeing in china given the services sector remains fairly robust. >> europe and china both do lots of exporting chinese growth numbers last yeerks 6.6 the lowest numbers since 1990 5 was internal demand. so, both those big export economies, china, germany and eurozone, we wouldn't surprised as the export numbers come down but the internal consumer demand

stay up and that's very important. >> excellent thank you very much for the insight. meanwhile, jp morgan says beijing has been ineffective in attempts to revive its slowing economy. head to cnbc.com to find out more. coming up ahead the governor of the bank of italy speaks out after the country is thrown into recession. stay with us

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snoex ♪ ♪ welcome back to "street signs" i'm willem marx. >> i'm julianna tatelbaum, these are your headlines. european equity markets trade mostly lower as china's services sector slows in january. >> julius baer falls to the bottom of the stock 600 after full year earnings miss expectations the ceo blames lower client activity >> the head winds in the markets will probably not go away very quickly, and therefore we decided to come up with a more

strategic cost and also efficiency program the goal there is to take out the 100 million cost block the uk and spain formally recognize juan guaido after nicolas maduro fails to organize free elections. tom brady helps the new england patriots beat the los angeles rams 13-3, a record sixth super bowl championship. ♪ markets have now been open for about one and a half hours, and it's proving to be a relatively negative day. european stocks are struggling to hold on to the gains that we saw last week, of course the nar tiff last week was supported in large part by the market-friendly fed as well as the strong nonfarm payrolls report on friday a number of strong corporate

earnings and some positive rhetoric around u.s./china trade talks. this week we're seeing investors really start to digest that weak economic data we saw last week from europe as well as from asia now, taking a look across the different regions, the best performer of the day right now is the ftse 100 up about 25 basis points the dax is down about 8 basis points and the french index is down about 23 basis points the italian stock index has just crossed into positive territory after seeing some losses earlier on this morning. now, italian banks in focus this morning. i want to take a look at how they are trading if we can bring them up here just behind me, we had some news over the weekend from the bank of italy governor. as you can see here, i'll tell you just in a moment about what he said, but just taking a look at the italian stocks, we are seeing a bit of a mixed picture in terms of early trade this morning. the best performer is bank upm

media banca down 22% points. he warned the country faces, quote, significant downside risks to its growth estimate this year. italian gdp contracted for the second consecutive quarter at the end of 2018 and this threw the economy into a technical recession. the data could increase the government to meet the deficits after last year's budget row with the commission. the bank of italy still predicts 0 .6% growth our colleague from cnbc class joins us live from rome with more details around vis koe's wait a second comments good morning what can you tell us about this weekend's comments from the bank of italy governor? >> reporter: well, you see, his message was very loud and clear especially for the government. why is bank of italy so concerned about the outlook of

the italian economy? the main reason given there's a global slowdown, germany declined 2.8% last year and in italy 0 .8%. the two economies were interconnected there's a more domestic reason, yes, there was an agreement late december between the european commission but when in april the government will start to draw the guidelines of the next budget, they will have to face a huge risk, which is around 1.2 and 1.5 of gdp, so 23 billion and 25 billion to find in 2020 and 2021, just to prevent an automatic increase the government wouldn't find the resources or political will to find the resources, well, the deficit to gdp will jump well above 3% so what's the consequences of

this it's twofold what used to being the first four months of 2018. the consequence again is that this level of spread is harming the savings of this italian families, the balance sheet of financial institutions and the ability of banks to give support, to give credit to the real economy because financing costs for italian banks are skyrocketing or going up above the european average so this is why he is so concern saying we have to stop this vicious cycle. he's asking for more clarity on the fiscal policy on the government but also for new reforms and public investment. real point is there anybody listening out there? because you know the government and especially salvini, they're fighting basically on everything currently, from the economic measure to who to recognize as

the venezuelan president the campaign for the european vote has already started, and all the eyes in rome are more on the political side than on the economic perspective of the country. this is again a concern for bank italian. >> one thing it seems that mr. salvini can agree on is that the blame should lie at the feet of their predecessors we heard that from them over the weekend. i just wonder when we look at these comments from visco, he says this greater uncertainty was linked to quote the difficult passage of the budget law marked by clashes with the european commission. is this italian government not just shooting itself in the foot >> well, this is an interesting point because, you know, yes, they are all blaming what the previous government did. if you look at the numbers, pay parentally for 14th quarter in a row, italian growth was positive and in the last couple quarter was negative the real point is what impact

will have the measures on the economy in the second half of 2019 this morning in rome we'll present the citizen income, which someone of the key measure that he pushed for having it's about 6 to 7 billion overall, but will be useful to italian growth there are many questions on this, from political and especially from a content point of view, this would be crucial to understand how they will position in the future and if they're going to make more to sustain the economy with different measure when they will look at the next budget. >> thank you so much for joining us live from rome. over the weekend, they dropped plans to build its large suv here in exland the company blamed brexit

uncertainty for the decision and said it would instead manufacturer the vehicles in japan. it was, of course, soon after the brexit referendum nissan announced the x-trail. prime minister's government may hailed the decision. yesterday they said it was blow to the sector and the region now, prime minister theresa may vowed to return to brussels, quote, armed with a freshman date and new ideas as she bids to renegotiate her own brexit deal may wrote in the sunday tell le graph over the weekend that she will seek a pragmatic solution to replace insurance policy known as the irish backstop. the eu warned it will not reopen the withdrawal agreement that contains that backstop to help us make sense of what all this could mean, we're joined by a senior research fellow on the phone from paris thanks so much for being with us i have to ask you, we heard a lot from politicians and

businesses here in the uk in recent weeks about what no deal between the united kingdom and the european union could mean, but from the perspective of voters like countries in france, businesses in france, how significant would the impact be of no deal >> well, of course the fact that france is just on the border, it would mean more important impact than other states in the eu. they're considering the no deal as very serious and worrying perspective. and so, government in paris has taken some decision and is trying also to address the business community so the small business some contingency measures what could be a serious risk in the coming weeks. >> if you had to compare how the uk is preparing versus the

european nations, who is taking the risk of no deal scenario more seriously in terms of their contingency planning >> well, i think at the moment on the european side, they're really worrying to see theresa may not considering seriously the idea of an extension of the period of article 50 and once again the idea of a no deal is taken really seriously and from brussels from the different capitols, they're really taking seriously this measure and they have the impression that the uk side with the idea to rejecting no deal perspective with the amendment passing last week, nobody wants a no deal in the uk, but that's not enough we should have engaged really more seriously on the idea of an

extension of article 50 and if it's not considering the coming days, we're losing precious time. >> we talked about the logistics of no deal, but what about the political fallout of no deal if we have a situation come the end of march where the united kingdom crashes out of the european union and blamed on politicians on both sides of the english channel, what does that mean going into the parliamentary elections about the european project more broadly, do you think? >> well, of course that's the main focus for the europeans because it will come just two months afterwards. and the question would be how will the european citizens react to the no deal at first the no deal would be such a cause that it would be -- it would really present very negative impact of the willingness to get out from the eu so the lesson would be very strong lesson for the european

citizens on the other side, we could also have some populist movement trying to take advantage of that situation and trying to present negative image from the eu but at the moment, there's a very strong problem made on the european side also explaining what other forces in the eu as legal construction and what does it mean to be member of the eu and what other impact of all the regulatory framework of the eu but it will definitely have an impact on the european elections. but at the moment, even i think on the 27-member state side, what they consider would be more the impact for the citizens, the uk citizens in eu, the european citizens in the uk and the economic impacts that it would have. >> elvire, we'll leave it there.

thank you so much for joining us this morning meanwhile, coming back to one of the top stories we mentioned earlier, venezuela, the uk, spain and austria formally recognized juan guaido as venezuela's leader. nicholaolas maduro continues toc calls to resign. they sent ma dur ra an eight-day deadline to call fresh elections. u.s. president donald trump says there is a good chance his administration will make a trade deal with china. he told cbs news margaret brennan that china was paying a, quote, big price and that the u.s. had imposed, quote, very massive tariffs on the country in the same interview, president trump insists that iran was a, quote, real problem. he said he wanted to maintain a u.s. base in iraq in order to monitoring the neighboring

country. >> i want to be able to watch iran all i want to do is be able to watch. we have an unbelievable and expensive military base built in iraq it's perfectly situated for looking at all over different parts of the troubled middle east rather than pulling up this is what a lot of people don't understand, we're going to keep watching. >> with baghdad the iraqi president responded to that by saying that the u.s. was not there to watch iran in terms of its iraqi presence but instead had been asked to be there to combat terrorism now president trump separately sought a loan from deutsche bank in the middle of his presidential campaign for work on his scottish golf course according to news reports. the german lender rejected that request and believe trump's candidacy made a loan too risky. if he defaulted while winning the election, they would have to seize assets from a sitting u.s.

president. the trump organization spokesperson has rejected the story. a separate report suggests that deutsche bank rushed to shed 600 million loan in late 2016 as it looked to reduce its russian exposure the german lender only managed to sell half of the loan to russia's alpha bank and held on to the remainder vtb paid back the loan in 2017 deutsche executives reportedly become increasingly concerned about connections to moscow amid claims that russia interfered in the same u.s. presidential election and coming up on the show, the patriots bring home the super bowl for a sixth time. join us for the highlights after the break. plaque psoriasis can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks

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to kill more than 900,000 pigs the epidemic comes as the chinese pork industry also battles against u.s. tariffs our colleague has filed this report >> china's tariffs were meant to hit american pig farms, but not tai lin's. >> tariffs are hurting the wrong people. >> the realluate against president trump's tariffs, the chinese raised duties on american pork last year to a total of 62% but even the pig business is global >> this farm in eastern china is 100% american. u.s. private equity fund along with an american hog farming company invested $100 million in the complex four years ago last year, the farms sold 500,000 pigs but chinese eat more pork than anyone else in the world, as much as the rest of the world combined. >> lin's pigs have been in

greater demand since an african swine fever epidemic hit the local industry last summer. >> we're using automatic feeder systems. >> he says u.s. technology and standards helped him avoid the disease. >> the slaughter houses will see or meat us safe and high quality and so they will pay a slight preem upovmium over the marketp. >> reporter: the epidemic also gave a boost to farmers in the u.s. at first, pork imports from america tanked when the tariffs hit, but the swine fever created pork shortages in certain provinces. the outbreak of african swine fever here forced china to import american pork any way, despite the tariffs. >> as we go deeper into 2019, prices should come back up again because the total stock of livestock is just really low and also happens to be the year of the pig, so we should be lucky year for pigs. >> and american pig farmers.

♪ in a rather separate story, the new england patriots beat the l.a. rams in a close game in atlanta last night the victory brings them their sixth super bowl title that equals the all-time record and our resident sports reporter adam reed joins us in the studio doesn't sound like it was the most exciting game of football, but what were the highlights >> depends what you're into, willem likes defensive play and lots of work to make sure their teams stop each other scoring, it was the perfect super bowl for you 13-3 was the score that the patriots beat the l.a. rams. no, it wasn't a classic in that sense. it was the lowest scoring super bowl record in history the fewest amount of touchdowns obviously as a product of that,

but the main man who was being touted as is this going to be his swan song, it turns out it's not as he says he stepped up and the play of the game really came in the fourth quarter throwing out to his old mate rob gronkowski the wide receiver to set up a first and goal attempt he later michelle bureaued in and that proved to be the defining moment which led to that historic sixth super bowl win. now the patriots go level with the pittsburgh steelers, so that result did not go down too well in pittsburgh because their record is now not their own, but tom brady is the oldest man to start a super bowl, therefore he's the oldest man to win a super bowl and his coach bill belichick joined him as the oldest man to coach a super bowl winning team and he now has six brady has six. we were just talking about pigs, these two have been called goats. >> they need two hands that's really impressive. >> really impressive indeed. quite an extraordinary sporting

event to attend, but it is coming at an incredible price. i learned this morning that the average selling price was $5810 according to ticket master and fans from massachusetts made up about 14% of the tickets add in airline costs, hotels, that's a hugely pricey event for football fans. >> yeah. it's not your average football fan can get to this. it's very much a bucket list kind of idea you don't regularly go, unless you're a patriots fan and been to the last three at least yeah that number you quoted from ticket master very much secondary sales coming with that amount of money. 2,700 was the average price if you got it from firsthand. yeah, huge amount of money and expense if you do want to go to a super bowl. >> adam, we'll leave it there just to bring your viewers news from france. the french president emmanuel macron writing on twitter that france has also recognized juan

guaido saying that that is joining the uk, spain and austria, number of european countries taking individual decisions on that recognition following from the european parliaments decision on friday night to do the same joining the u.s. and canada as well. before we hand you over to our u.s. colleagues, let's look at u.s. futures and see how they are shaping to open up today looks like a bit of a mixed picture which is where we left off on friday, fairly mixed trading for thethree major u.s indexes. but overall a positive week for u.s. stocks. that is it for today i'm julianna tatelbaum. >> i'm willem marx, "worldwide exchange" is coming up right now. (client's voice) oww, it hurts...

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♪ it's 5:00 a.m. at cnbc, 5:00 a.m. in boston and top five at 5. crude, what is driving it straight ahead earnings remaining front and center the last of the fang stocks reporting results. we'll let you know and expect from google. president trump saying that military intervention in venezuela is, quote, an option as thousands take to the streets over the weekend china facing, get this, a pork problem as it kicks off the year of the big. live to beijing, it's a real story. yep. they did it again, the new england patriots making history as they roll the rams to win super bowl liii. in case yont