that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] welcome to "street signs." live from davos. here are your headlines at this hour >> president trump lands in davos after striking another trade truce reaching an agreement with french leader macron to avoid a digital tax and tariffs. >> it is true only to say but i believe the lower the uncertainty, the better for business >> the better economy.

we have strong consumer demand if uncertainty is going down >> davos braces for a show down between trump and thunberg the 17-year-old activist encourages more to combat the climate crisis >> the climate is a hot topic. if you see it from another perspective, pretty much nothing has been done since the global co 2 emissions have not been reduced. >> the hang seng has fallen. we speak to chief executive carrie lam at 16:30 cet. >> european equities fall after

the open after a new virus fares weighs on asia >> swiss banking giant ubs falls to the bottom of the market after the bank misses return on equity returns for the year but their ceo tells us there may be obstacles ahead. >> expecting some growth and challenges there is a resolution of you fe outstanding items will bring back confidence. >> welcome to this special edition of "street signs" from the world economic forum in davos. we have seen movement on some of

the growth rates movement on digital taxes. a trade truce kicking out a deal between the french and the americans on digital taxes trump arriving here in davos we have plenty to talk about and a line up of guests joining us we'll speak to ellen, the ceo of shad ray the eagle has landed, the u.s. president has touched down at davos and is due to take the stage later this morning he will deliver his keynote speech at 11:30 cet. he was forced to skip the event last year due to the u.s. government shut down he will be meeting a series of foreign leaders while his

impeachment trial moves on at home president trump and french president appear to have reached a halt of the digital tax. officials from both sides have indicated the two leaders have reached a detant imposing tariffs on french goods including wine, cheese and hand bands. macron said he had great discussions with trump and they would work together to avoid economic sanctions >> sounding a cautious note on the next stages of negotiations. >> when phase one started, no one expected it to be so prolonged. there were periods where we thought there wasn't going to be a deal it is anybody's guess whether this will be pursued or very long and what kind of impact it

will have and it is hard to predict these days >> he surprises people often i hope the more we talk, the better it is for the environment. the better for the people and the economy. hopefully we will see a step in the right direction. >> phase one removes a lot of overhang for the economy despite of the overhang, i think the chinese economy performed admire rablly the last year on the bilateral trade for china group, it grew by over 5% or close to 5%. it made up largely with trade from other countries >> the other headline comes in the form of 17-year-old activist greta thunberg who gives a

keynote address. the event itself has been criticized for putting climate change at the top of the agenda. speaking on a panel early this morning, she said leaders need to listen to the warning signs >> the climate and environment is a hot topic right now a lot thanks to young people pushing. of course, if you see it from another perspective, pretty much nothing has been done since global co 2 has not reduced. that is of course what we are trying to achieve, among other things i mean we are all fighting for the environment and the climate. if you see it from that aspect, what has concretely been done, if you see it for a bigger perspective, basically nothing that's what we had expected.

it will require much more than this this is just the verying beginning. >> greta thunberg outlining that she's already used these numbers to shock the world into response just repeating herself if he's not getting the answers she wants. >> more from trump later on today whether he continues or if there is a switch. if you consider the vote later in the election. in the past in 2016, the evangelical vote was big to getting trump elected. if you look at many churches, there seems to be a lot of support for climate change >> that's a really good point, karen. i don't think there should be criticism of putting climate change front and center at the davos discussions. there are implications for not

just corporations but policymakers and governments around the world just today, since we are both australians here, bhp has said the poor air quality caused by the smoke from the bush fires is hurting coal production. coal being the largest export australia has to places like china, it does have a massive implication for the country. i believe when you see those statements from the like of blackrock and microsoft. for example, microsoft trying to go carbon negative you'll see other companies jumping on this. it is something that needs to be at the front and sentder of this agenda, i believe.

when you think about whether the germans are out the environmental protesters won't see those at odds. the other key about president trump that comes at a time arguably at his best and a phase one trade deal across business opportunities. the stock market response and investors are more positive at this point we come up to the start of the senate impeachment trials. a key day for trump here today many top executives have told cnbc that they expect technology to play a key role in the economy. >> the major trend is going for your profit. when you go to efficiency, you

do the same amount of thing for much lesser cost you want me to go to china, they engage on that nothing is perfect but everybody, every company and region has a target for efficiency in carbon reduction >> it is not moving fast enough but we are on a good journey i'm a chemist, carbon is a resource and not a poison. if we understand that, we'll create artificial fuel we need so technology will progress if you put a price ticket to carbon as we have now started >> it does not only work to talk nice, we have to have the right ino innovations. we try to incorporate in a way we make money. if businesses does not do that, it remains the sensitivity that

doesn't work >> let me say, the ceo of the forefront of the transition joins me now nice to see you. looking at your release positioning the company for the future so many buzz words bonding people and ideas unity, not uniformity. as the ceo at the forefront, what does stake holder value mean >> our founder said years ago, from science will arrive progress we need to reinvent it for all key stake holders. for the future leaders, the ng

o's, we got the earth as a loan and we need to bring it back to our kids in a better shape it is important but i'm also a man with a 14-year-old teenager. it is important to me and employees. >> you are in a position to benefit from some of these themes you are helping auto factories reduce emissions yet it is a bumpy road arriving at that. solvay recast its forecast and they are lower how do you stick to this value system and everything you are talking about while you have challenging numbers to present >> all of these are opportunities rather than stress i think companies who are afraid to cannibalize their products

are going to disappear the light weight, clean air, climate change improvements. all of this are opportunities. at solvay, when we move to the election call car, it's an opportunity. in health care, in consumer products, all towards building more sustainable products. >> we have seen this through the lens of the auto market. how do you get more action that you get to quicker than what they are doing >> i think the consumer is getting more and more aware of what he or she is buying number two is creating the echo system when you think about the election call battery, they just realized they are bringing all the products and solution from

asia you need to bring the manufacturer from the eco system also like recycling. the economy is in the augenda today. >> it has dropped up as we have said the same time the french use the opportunity creating the eco system how long is it going to take to reduce the alliance. >> the technology exists we have our largest battery lab close to our customers europe is playing a catch up they will win through innovation you need to bring the version 3.0. 50% of the cost of an electric car today is the battery

customers are asking for lower cost batteries >> let's hone in on china, you have $1 billion annual sales coming from that country you are increasing production of specialty plastics in the country and the combination of the phase one trade deal are those trade winds abating or still a threat >> at least we have a deal a version1.0 for solvay, the americas, europe and asia our customers they did suffer with the trade wars. china is important to us nobody can afford to ignore china. from china, we come to growth. last year was a bit of lower gdp and they put stimulus in the economy. for us, it is important to get closer to the customer in china

and in europe. >> thank you for joining us. lovely to see you again. plenty more conversations coming up. we'll speak to the ceo and chairman of merck. >> and ubs shares plunged after they missed key financial targets in 2019 despite a knockout fourth quarter. the strongest since 2010 posting a net profit of $222 million more than double than the year earlier it missed targets for the full year forcing it to tweak medium term guidance. going to joumanna who is in europe this is the biggest declining on the stoxx 600. what did the ceo say in terms of giving us some insight to the

future >> i'm sure ubs will be reacting this morning especially on the back of the very strong fourth quarter. the strongest fourth quarter since 2010 a lot of that is on the back of the central bank policies introduced towards the end of 2019 the medium term targets are what people are catching here they sette range of 12 to 15 percent and tapped in for 2019 i think the market is coming to terms coming in years. the negative interest rate environment that comes in years as well as the environment we are in there are still warning signs

ahead. i sad down with the new ceo and asked him how he's thinking about the outlook here >> for many of the forecast, things are changing very rapidly. we are seeing a more constructive attitude of investors. we have the season factor in the 2014 was an a nomly if you look at the pattern i see in the first few weeks of the year, a more normal environment bringing back confidence by investors.

we need to be focused and make sure we are not too complacent >> talking about brexit, trade war and resuming of plants and activities the medium term targets is what they are focused on and whether or not the global wealth and business is a focus. beefing it up and cash cow that is putting a lot of pressure on their margins. >> a range of gifts including oacd and more we'll be right back after this. stay tuned

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global health authorities are increasing screening measures following the virus in china. the world health organization is considering branding the out bre outbreak of global concern >> believing easing tensions will help pick up growth and will stay neutral because of china's high level of debt beijing's trade dispute, he hopes phase two will solve issues on the economy including black listing of chinese companies but it is up to the trump administration to make the first move >> we'll not only see the global

gdp growth is going down more important is global trade global trade really went down almost to zero right now that means not only the gdp growth but all the different streams of growth around the world is not growing anymore capital spending, you have to look at what is in that number a lot of people are hiring that is capital spending but that might not go into the number you import. you look at jobs the job market could not be better >> it is definitely the case, that's the case everywhere in the world. there is a tremendous amount of money looking for a return we see the money flowing everywhere to early stages, tech is a place where tremendous money flows there are parts in history where it was again very, very heated

joining me the ceo and chairman of merck. >> good morning. >> you are very much a science and technology company but you also have drugs in the portfolio. we are wondering what that means in the world and what your response would be. what is your immediate take. many of us are talking about trade and the environment. this spread is coming out of nowhere. >> bill gates has published the landmark article a couple of years ago, where he said pandemic preparedness is key and it is not a question of whether 134g like that could happen or when we don't know if this is the corona virus but a lot has happened when we saw the ebola crisis, a lot was due from that.

here at the economic forum that many other player's industry, the who had started to develop a nobel type of approach the world is better prepared but we need to watch this very, very carefully. >> do you think technology plays a better role now and tracking where and getting to the answers much more quickly. >> there are quite a few technologies that have joined the coalition of the groups and picking up trends through mobil phone usage, social media is really very important. >> let's talk about what you are up to hear at davos. one of the most important issues is how they compete in the glob global environment

we have seen the roll back that has the tension to roll back further with target and tariffs. what do you make of how we are setting up for competitiveness is there an issue. >> biotech, laboratory, semiconductor materials. three high tech fields in which america is operating in my current mantra is that we need to create a european innovation eco system it exists in the united states, china and israel we have seen a couple of countries making progress. president macron has grown, europe is lagging behind on this >> i wonder if europe is hampered by regulations there. i noticed you announced the

investment with funds going to the startups in china. there is the ability to use ai to gather and assess information and come out with outcomes for health there are different ballgames where we are not necessarily able to use data across companies or sek torz. isn't europe going to be hampered by the regulation >> there is a lot of discussion whether they are hampering or enavailabling progress difficult to judge what i think it missing is the venture capital. you have in the u.s. and china and other spaces you have a lot more capital available that is about legislation, pension funds, insurance and whether they need to invest in government bonds or intervention where you could make progress. they could make areas that they

mention that there is a closerly collaboration between the government, academics and we need to do more of that in europe >> let's talk about the back drop particularly in europe. we have seen the imf come up with assumptions for world growth which is lower than in october. just skirting recession in 2019. how optimistic are you >> our company would do less than 6% of our revenue in germany. we have almost 40% of revenue in asia the biggest market is the u.s. and will stay the u.s. what happens is actually more important than what happens in europe europe is our home base and regulation developing a matter

of a lot to us i feel that europe has too little public awareness about the competitiveness of european economies in the global scale. >> a conversation we'll be having with angela merkel this week >> she's called a round table together to discuss the competitiveness of european bioindustry. we look forward to that. >> we appreciate your time thank you for stopping by live plenty more conversations coming up live from davos we'll be speaking brexit with robyn niblett from chatham house more when we come right back pros of visibly healthy skin. try olay total effects.

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welcome to "street signs" live from davos. these are your headlines >> president trump lands in davos after striking another truce reaching an agreement with french leader macron to avoid

digital tax and tariffs. they've welcomed the recent trade deals. >> phase one removed a lot of overhang for the economy despite the overhang, i think the chinese economy performed admirably for the last year. >> davos braced for a show down between trump and thunberg the 17-year-old activist urges delegates to do more to combat the crisis >> the climate is a hot topic right now thanks to the young people pushing but if you see it from a different perspective, pretty much nothing has been done since the co 2 has not reduced >> moody's cut hong kong's credit rating. we speak to carrie lam at 16:30

cet. risk aversion with fears of a new virus. merck says the world is better prepared for these type of scares >> it is not a question of whether something like this would happen but when. we don't know whether that's going to develop into a corona virus or pandemic. >> hello and welcome back to "street signs. thank you for tuning in. let's take a look at the u.s. you foo turs the u.s. market was closed for the martin luther king day holiday. the last time u.s. markets were open was on friday when they closed at a record high.

tracking the asian markets to the down side, we see the implayed open looks like it will be sharply in the red. let's look at the european markets. after yesterday, the markets closed flat with the down side with thin trade. they also closed at a record high on friday we see the ftse 100 down along with the dacx and the cac as wel as the ftse mib with a very red day with the hang seng suffering the worst day in months. i want to show you what is going on with the luxury stocks right now. ber berry down nearly 4% a lot of red there on the screen you also have the imf, whichdown

grad -- downgraded its 2020 forecast and they are forecasting global economic growth. all of these factors along with the corona virus scare weighing on the markets in the region today. let's flip back and look at the day that was in asia we saw the hang seng suffer its worse day in months. down by 2.8% here. you have moody's downgrading the credit to double a 3 from double a 2 citing the absence of response of how the government is planning to deal with the prodemocracy planning which are dealing with multimonth protests there which are having big economic effect as well. you have here in china, the

shanghai down 1.4% this is the same family as starz tzars. you remember it affected thousands of people. it spread through asia and canada as well it has very bad timing with the lunar year holiday millions of people travel around china, outside and around asia as well. we have confirmed it can be transmitted from human to human, there is a fear it could affect not just the asian region but the globe as well. i believe there is a man in australia that had traveled to woo hand who has the virus >> today, down 218 points or 1%.

part of the problem for the nikkei 225, we have a stronger yen as a risk aversion, a flight to safety. a stronger yen is often bad for the exporting names. back over to you in davos. >> thank you you set the scene around the corona virus one of the safe haven has been around brexit. boris johnson has experienced his first parliamentary defeat members of the house of lords voted against the government in favor that they'll put forth to give eligible eu citizens the right to stay after brexit also voting against the court these decisions but pass the house of commons for approval. >> we've been speaking to martin gilbert who shared a positive assessment of the prime minister

and of course brexit >> he's the right man for the time at the moment to a certain extent, that's when we need to do at the moment >> having a fun conversation about the house rules. apparently not everybody knows what they stand for. >> they see it as part of the vegas rule what happens in vegas, stays in vegas. >> it was a rule of openness designed in the 20's to enable people to share information with each other to get the information out and keep the public informed. it does not say who said it or who they work for. protect the identity and share information. >> thank you for clarifying for us i want to talk about brexit. as we move throughout 2020, it

remains front and center for investors. what happens here, putting the hard scenario back on the table. it won't be alignments on goods and services what do you make of the commentary so far? >> number one, there is political posturing with tense and short negotiation if we meet the headline of having the first deal done by calendar year 2020. the government needs to put down a firm line that is not going to bring in the eu or the backdoor. >> if we reverse back to the have cake and eating it moment, we don't want any rules that go with it. >> after he became leader, he accepted the border down the irish sea, which theresa may had never considered accepting ended up paying in the deal,

which he said could never be paid he invested the status tough talk at the beginning, he can do compromises towards the end. what are the compromises on? when people talk about the alignment, whatever export services will go into the eu, you have to solve the laws like every other country in the world, the uk will have to save those. they won't find those rules back in the uk on environmental, taxation and state aid eu is worried that the uk-based company is starting from a stronger position. that is where the tough line is. if you can't decide you are on state aid, what is the point of trying to be sovereign >> we have certain environment

around trade phase two will begin there still are issues with europe based on the united states what do you make of the trade environment and headline risk to investors and ce o's looking to park their money elsewhere >> particularly if donald trump doesn't win the election, we are in a phase where you can't act with winds in your sails we've moved globalization to stall. we want to make sure it doesn't go backwards the truce is signed between u.s. and china, looking like the additional sales tax where we'll not see things get worse i think most companies need to see things like regionalization,

different rules on technology. competition being used on state aid. perhaps tariffs being used that is the new world. more operating close to the markets and global supply chains >> with the global market and the digital tax year, does that tell us trump does not want to be having trade fights he wants to have these wins? >> absolutely. my sense what do you want to have us do, he could go back and say, look, i've done a deal. we no longer have nafta. i've got europeans pulling back. he wants the nice line of stories. he made some progress on most of the voters won't know the difference between the deal he had and what he is having

>> thank you very much director of chatham house. coming up, we speak to the man who was expelled from russia bill browder, ceo of hermtage after the break. and test your e. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take. they learn that embracing those challenges is what sets them apart. i am justin rose, and we are morgan stanley.

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the russian president putin proposes changes the reform has been described as an attempt to extend his influence at the end of 2024 giving us his take on the landscape. >> this is very big. i think to a certain extent. those reforms will give more power to others probably rather than the president putin explained that he sees it

as a next step whether he sees aniche for himself, it is are hard to say >> a man some what close to putin to the man described as putin's number one enemy does that description fit, do you think? >> well, i've done a lot of things to make putin and ray most importantly getting the act passed in the united states which freezes the assets yes, they are pretty mad >> putin announced the shake-up and the removal of the prime minister medvedev that many have gotten used to

>> so, first thing everyone should know there is no democracy in russia. it is a facade they have to go through this pretend exercises. the constitution says putin will have to leave in 2024. he'll never leave power. he's got to find a way to stay in power >> we don't have evidence of the removal of funds i want to talk about the comments he doesn't favor that concept. why does he want to retain power. >> you can't believe a word he says he said they didn't shoot down

mh flight, they did. he said they didn't cheat in the olympics they did >> people in russia want to believe they are a european country that has a democracy they cheat and pretend and go through the motions. he has no intention of giving up pow you are. it is all tinkering with the rules and looking like democracy and adding the absolute power that they can keep the position and be safe. >> we've been debating the concept. we've said better the devil you know than the devil you don't. >> is there a stability behind russia and the failed regimes. they had been removed. where you had seen chaos this is the country with significant fire power is this a good thing >> putin is a cancer for russia.

he's terrible for the country. completely stripped the country of the natural resources he's stripped people of any freedom or any ability to have any control over their lives he's a terrible menace and it would be an absolute godsend and bring back a normal democracy to the country. >> let's bring back focus for the united states. president trump's messaging has been confusing as there has been some what an air of closer ties and distance how will he approach russia this year is russia a big negative for him? >> it is an odd situation. on one hand, the u.s. government not donald trump, the government is pretty robust on russia

policies and various other things are as one in my shoes would hope them to be. on the other hand, you have these absurd statements from president trump saying that putin is a good guy, he's not a killer, et cetera. for the most part, he hasn't been able to follow through on those statements if he were able to follow through on those, it would be very bad for the world and the united states. he seems to try to be convincing p emthat russia is okay but i don't think it is really working. i don't think most people in the united states or anywhere else thinks putin is a force for good >> more recently, we saw some tension in the middle east with the killing of the iranian commander soleimani by the americans. and russia was quickly in syria having conversations what do you think of the angel with the instability in iran and the treaty on nuclear deals?

>> i think what putin is trying to do is put his foot down in the middle east wherever he can and create a situation where he has some leverage. by trump withdrawing from northern syria, that created an opportunity for the rush yosiano take over bases. >> is this his moment? >> everywhere is his moment. libya is his moment, syria, iran, iraq he wants to be a king maker even though his country is not that powerful >> thank you so much mandy. >> we may not have a crystal ball but we have futures to give us a sneak peek. the implied open is sharply negative here for the u.s. market after the three-day weekend. the last moment in the sun was at a record high on friday this is following on from negative asia and now a very

negative europe. a number of things going on, mounting concerns about a new strain of pneumonia, the corona virus that could ripple around the world. one of the other reasons why the uk is weak is because sterling is stronger a of much better than expected uk jobs data a bit of a blow hoping for jobs data >> the imf was outlining the downside to the risk of the economy. he'll be speaking to carrie lam. that is a first on cnbc interview at 16:30 cet you don't want to miss that as we get to the latest unfolding there in hong kong we'll head over to our other location in davos. love actually director about how you can make your money matter

i'm pretty sure you are a "love actu actually" fan. >> i watch it every time i'm on a plane. it is a beautiful movie. looking forward to that. >> i think you are a softy at heart. that is all for "street signs. we'll bring you plenty more live from the mountain as the sun comes up this is the best of it across the course of the day. it is warming up now >> it looks gorgeous coming up after the break, we have more speaking with ubs chairman axel weber. stay tuned

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