and if you hear someone else, speak up. don't let a cry for help go by. [music playing] i'm julianna tatelbaum these are your headlines >> shares of credit suisse fall after thiam resigns which puts the head of the domestic business into the job. >> the french cosmetics giant posts better than expected like for like sales overshadowing the

concern for the coronavirus on the market nokia calls on the government to buy stakes to create viable competitors to huawei and the worst monthly decline as trade tensions, brexit, and coronavirus outweigh concern on the biggest manufacturers. a warm welcome to "street signs. let's get into our top story, credit suisse. tidjane thiam has quit in his resignation speech, he said he had no knowledge of the spying but added that he regrets that it happened and it should

never have taken place let's run through what thiam's tenure looked like he was appointed ceo march 2015. he unveiled a large restructuring plan in a bid to shore up the bank but still reported a net-year loss plagued by a cost of a fine to justice. in 2018, the bank was back in the black posting the first profit the high-profile resignation sparked the controversy that would cost thiam his job the move called such concern that bank's coo had him

monitored and followed by a private investigator once this was resolved, the coo resigned thiam remained under pressure to explain how much he knew he will be replaced by gottstein who currently runs the swiss business they have focused on the domestic retail bank business. the resignation and change in leadership will be effective on february 14. you have been covering this story for years. was there any other way for this to end >> yes he could have stayed in his position the interesting question unanswered yet is was it ultimately the spying scandal

that ultimately resulted in his departure. we haven't had confirmation of that one way or the other. we are a week away of 2019 and fourth quarter earnings. there are people in the market who are stepping away from the stock because they are suspicious around the timing of this we covered the second quarter, first quarter better than expected the problem, i guess from just the model, even as tidjane should take credit for running on a long program of the business, reducing the dependence on lower quality investment earnings. decentralize the structure reduce the costs, none of this has allowed him to get to the

rot target implied of around 14% back in 2015, when he tapped existing share holders for a capital increase there were a number of issues th that swirled around. some investors will stand clear while they wait for clarity. that old phrase, it is better to pay more than know more is applicable >> he has maintained he has no knowledge of the spying scandal. if that is the case, it raises questions around governance and that seems to overshadow all of the good that came under his leadership >> let me throw out another comment here the chairman of the business, if

tidjane is going and blamed for this happening, why is the chairman staying if there are e-mails or evidence that implicates the ceo, the chairman of the board is ultimately responsible for the action why is he staying if thiam is leaving? >> on are that point, i think a lot of investors had putting pressure on the chairman to leave. a lot of the investors came out in support of thiam. the question now, does that tension cease now that he's leaving? let's broaden out the conversation let's bring in james, senior investor manager and joining us

on the phone, francesco castelli starting with francesco, why in your view would investors be selling on this news >> caller: obviously, the story you are buying this morning is different from a few days ago. mr. thiam was in charge of the bank as the man would turn around, the safer to a certain extent to the strategy now you have the board saying maybe we were wrong. we prefer to put in charge, the guy who is currently leading the domestic swiss business.

so you've got a story with an extensive network in asia. the story engineered towards asia you get in exchange a story much auto mattis, you didn't want to have the story anymore apart from the considerations, he is a very experienced professional certainly the story, as i understand, certainly the opinion i heard before that a few investors would stay here a while and see what is the next chapter of the story >> is this the end of the road now for a change at the top. you talk about the chairman who

is still in place. is there continued pressure on him to step down >> of course if he leaves on april 2001, i think he would be lucky. there are in the last few days, we heard share holders with legal action there are legal considerations for the next few weeks in the fact that he tendered his resignation is a good compromise and leaves the legal story out of the picture but still is going to be a lot of confrontation in thele next few weeks from active investor

it will not be for the next few weeks for sure >> james, what are your thoughts >> as we already heard, thiam was seen to be the savor they've had to rip up the original model a completely different way where we've seen other banks trying and failing. markets have been for giving and very positive about the successes that thiam had had for the investment perspective, that is very much what that is about. to see this news this morning is a disappointment and shock we've seen that already. again, as you've raised, now the

question is what is the leadership going forward where there has been some evidence where we thought previously this hadn't filtered up, maybe it has. >> one of the spec sptories goig around, the problem, the in fighting going on within the management team has been whether the focus should be on growth in that business or whether it is thiam's strategy of trying to grow asia pack or the global growth story they have not moved to meet him. that's where the bank is

underwhel ammed. at any point, saying the announcement of earnings on thursday next week, you know what, we are going to start invest gating t invest gating the spinning out of the business. >> it is interesting i started as an investment banker at the time an asset management might produce 10 if you are lucky. it seems to be there is an echo here wheres you are clouded by the status quo or the recent past without remembering that the reason these sort of super banks, one-stop shops emerged with many different strings is that it should be more robusts

through multiple cycles. there are advantages of being smaller and more boutique. what happens if something happens in asia and only asia, will your business stay robust what will happen in the next five, 10 to 15 years >> thank you you will stay with us. jeff cutmore weighing in and fran k

francesco calling in thank you. we are looking at a bit of red on the board for european markets. the stoxx 600 trading down abou 15 basis points. advancing about 40 basis points across regions this morning, very different picture. german industrial data no doubt weighing on sentiment to some degree we'll squeeze? a quick break. ahead, a warning of potential coronavirus fallout. that's coming up next. i'm embarrassed to even say i felt like i was going to spend my whole adult life paying this off

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welcome back to the program. after the q 4 earnings significantly missed expectations coming in 45% lower than forecast.

expecting a surplus amid chinese production growth. bringing in the cfo who joins us now. thank you for being with us this morning, sir your earnings have come in well below what the markets were expecting. i know you've taken serious weakness talk us through the quarter and where those have come from >> if you look at our portfolio of companies, then where we have seen the specific market weakness is part of our operations it is close to market, we've seen 10% volume decline driven by the general negative

sentiment. >> it is rare to see forecasts so out of line with results. 45% lower. what caused that disconnect? >> that is a good question at the end of the day, it is a big percentage when the markets move specifically as they have done and volumes have been weaker and weaker, you have a tendency to sometimes surprise market expectations especially the last months of 2019 building infrastructure in europe and north america. >> will that carry through into

2020 what is your expectation for the first months of this year? >> if you look at the year-on year basis, we expect 2020 to continue at the weaker speed than what we saw at the start of 2019 that is still indicating a lower year-on year development >> i see you are expecting a surplus mid-2020 outside of china. how is the coronavirus going to impact the aluminum market >> that is a big question for most it is too early to assess. as with any uncertainty, that

can impact the willingness of consumers and the company to invest as you know, some facilities are close to china now we'll see when the facilities get the permit to start up again if that happens or not >> finally, i know brazil has been a big focus area for investors and those operations are getting back up and running. how are those brazil yoperations going? >> we were happy to be up to 90% of full capacity if you look at our improvement programs, we are delivering more

than target improvements with the large release driven by the efforts and quota. >> thank you for giving us the detail this morning. let's push on to another set of earnings this morning, l'oreal has posted the biggest sales growth outpacing competitors and beating estimates. this company seems to be moving from strength to strength. break it down for us and what we know about the impact of coronavirus on the future of l'oreal. >> you are right another set of really strong results for l'oreal. another strong quarter net revenue 9.6% like for like all the divisions growing faster

than previously. doing very well. even the consumer products division has had growth. it is picking up there as well revenue of 4.4%. active cosmetics where l'oreal has been buying the brands and up 20% on the quota. one of the main driver of that growth has been luxury we've seen that story with others the massive appetite for luxury. up 15% for the quarter another has been asia pacific, revenues up 30%. all the divisions up in double digits very impressive growth all of this overshadowed by the concerns of the coronavirus

epidemic and the chinese consumer there in asia you've seen estee lauder there concerned about the impact and the same with burberry the previous crisis similar like with sars. after a dip, they are hoping it will be similar effect this time still comfortable that it will outperform the beauty market in 2020 they have 12,000 employees in china. they have been closed and meant to reopen on monday. they will reopen the bright spot is e commerce. they've really been up

this could have them buffer disruptions on the high street at the moment in asia. they are hoping all of this could help a little bit for the impact of q 1. we ask all of the questions joining us at 12:30 cet. >> we look forward to that interview. the update on the coronavirus. the number of fatalities has hit 636. over 30,000 cases have been confirmed globally chinese president xi jinping and trump discussed this on a phone call in china, the doctor who warned about the virus has passed away,

prompting public warning in japan, 61 people have been confirmed to have contracted on a cruise ship. bu burberry has warned that 24 out of 64 shops have been shut the rest of the stores are seeing a decline of foot fall. back to the senior investor at aberdeen standard. i thinks it fair to say this caught us all by surprise. is it fair to call this a black swan event in. >> absolutely. this could never have been forecast the nearest comparison seems to

be 2003 sars outbreak. it is something which we are going to need to really focus on quite considerably there does seem to be a lot of conflicting information on the numbers. as a macroinvestor, what is most important are the steps taken so much as the actual spread of the virus, itself. from that basis, we are talking about a meaningful shock to the region and by extension across the globe. >> knowing all of that, we are seeing record closes in the u.s. s&p, the dow and nasdaq all experiencing losses because of the fear at the outset what is giving investors confidence at the outset

>> i want to use the word slightly surprising rather than shocking we've seen this for a decade markets have been rewarded for buying dips. it is self-fulfilling to some degree i don't think we've seen anything that is good news in terms of likely reduction or that the progress of the virus i think we've seen that investors have been rewarded and continue to do so. >> to the fact that central banks are ready. earlier this week, the fed and pboc are standing by >> i'm glad you said it. i'm tired of hearing myself bang on about central banks but that is 95% of the answer here.

you know the fed continues to do so we saw the pboc responding we now know central banks everywhere are completely trapped. there is no chance of anybody -- no chance of the central banks hiking things. they've shown they are willing to provide liquidity for that reason again, it supports this mentality. >> assuming this could be more effective. there comes a point where it is not. >> thank you for being with us >> the senior investment manager at aberdeen standard coming up, find out how president trump has reacted to the decision to key huawei's

role in 5g networks.

welcome back to "street signs. i'm julianna tatelbaum these are your headlines

shares of credit suisse fall after thiam resigns as ceo which puts the head of its domestic business into the top job. investors buy into beauty. overshadowing a warning about the impact of the coronavirus on the chinese market nokia and ericcson rally after t after a call on the government to buy stakes to create credible competitor to wah sway the worst industrial decline as the threat of trade tensions, brexit and the coronavirus weigh on the biggest manufacturers >> we are now about 1.5 hours

into the final trading session of the week. a bit of red on the board. the dax down about a third a percent. ftse 100 down about the same in italy, the ftse mib slightly in positive territory. european investors taking not quite the same positive step forward where the s&p, the nasdaq and dow posted fresh record closes. record earnings and more comments on the impact of the coronavirus and various businesses in europe >> on that note, in the earnings space, l'oreal, the bright spot today up 2.6%. they may see an impact on their business as well burberry shares down 2%.

luxury, heavily exposed in the china market and abroad. they do expect to see due to the widening travel restrictions, an impact of chinese demand outside of china and hong kong within those two areas. credit suisse shares down after the major news the ceo of credit suisse will be stepping down effective february 14 after those spying scandals. let's look at the 4 x market the pound versus the dollar under that 1.30 mark in europe, the euro down about 20 basis points. investors with the weak industrial data and is trading around the 1.10 mark

we saw record closes for the s&p, the dow and the nasdaq yesterday. today, the major news of none pharm payroll report we've seen 60% of s&p and more than 70% have beaten earnings. let's get to one of the key stories today in the tech space. president trump was, quote, apoplectic in a call with the prime minister today despite strong pressure from washington, d.c. to exclude the chinese telecom company. they were neutral in tone, several accounts say johnson's break has caused serious strain in the so-called relationship and may even weigh on coming

trade negotiating. william barr has argued looking at ericcson and nokia. saying they lack huawei's scale and the backing of a large country. he added that the u.s. would have to squiedecide, what, quot, horse we are going to ride in this race. this is likely to raise tensions between the u.s. and china arjun is with us with more pretty extraordinary to see the u.s. weighing in on this and to call president trump's directive. we are talking two different countries here, the uk and the u.s. >> we have to go back to what 5g

is it is not about faster speeds. this is infrastructure we'll talk a little about william barr's comments. he was explaining that the u.s.'s side here is that, if china, via huawei, owns the majority of infrastructure that underpins economies, his fear is that china could shut these downey moment. that's the argument the u.s. has put across that is why the u.s. has been on a campaign to block the company, which is why they are so angry the uk didn't block huawei huawei isn't having free reign it is only allowed to participate in the peripheral part of that network

i think any participation was just too far important to note just how critical 5g is and that they don't have a horse in this race. >> absolutely. u.s. doesn't have a horse in this race. mr. barr is saying these two companies are at a disadvantage? is that fair >> his argument is that the chinese are offering huge s subsidies. from huawei, they have denied that they get any government assistance the feeling is from washington at least that china is really pumping the companies and helping them expand. that's why they've been able to grow to the world's largest telecom maker. it is interesting to see

reactions hire what william barr is suggesting. we have no idea what that would look like. what vehicle the u.s. would use to do that and second, that the european union would go along with that i think this would become an issue in europe. these are technology champions in europe. they would be very keen to protect that from the american focus and to drag the companies into the political fight between the u.s. and china >> absolutely. we had a guest on the show saying this is a bit of a misnomer what is your take on that view

>> i think it is not going to be a winner take all race huawei is not going to get 100%. nokia and eric scson will be bigger players there if nokia has an outside share, which is possible. the way they've grown is offering high-quality products but undercutting competitors particularly in areas like latin american or africa where they've done particularly well where they are more cost effective and able to offer this technology. it is interesting to see how it plays out. i don't think nokia and ericcson will struggle on the technical front. >> fascinating debate there. very nice to have you with us in

london, for a change let's stick with tech, shares in twitter jump after the social giant beat revenue. the key metric, daily users hit a record 152 million in an interview, saying the company remains focused making the platform safe and admissiblible for users. >> we mentioned on the call today that we've reduced bystander reports. one person releases a tweet they've seen could be offensive by someone else. to remove the suspicious behavior and the author of a tweet the ability to hide replies if they might be

offensive. we've made a ton of progress and have more work to do shares in uber drove higher after reporting better than expected fourth quarter results. the ride sharing service moved up ahead of the originalpromis of profitability in 2021 u.s. hedge fund manager has built a $2.5 billion stake in so softbank pushing the technology giant to rebuy stock and make changes to the governance practices the latest to be targeted and at current prices, it would be the equivalent to about 3% of the

market cap it is nonfarm payrolls day unemployment rate is forecast at 3.5%, average hourly earnings growth is seen rising 0.3% monthly. the head of fixed income joins me around the desk thank you for be with us what do you thift consensus numbers of 158 k >> that seems a little high. we would expect to see numbers like 130,000 >> in terms of wage growth, we all know the market is really

strong it comes down to actual spinding power, doesn't it? >> one, the consumer demand is very strong corporate profits on the margins have been going down over the past 18 months. here, you are seeing a double-edg double-edged sword somebody has to pay for it >> manufacturing has been a weak spot the latest data showed an improvement there. how much weight should we be putting on that. >> certainly, more globally, we did have ism figures around the globe. generally, they've been pretty

good the manufacturing sector has been healthy the question for a lot of people has been the coronavirus, the impact on the economy. should we even be paying attention or wait a couple of months >> on that note, we were speaking about the fact that there are now records despite the uncertainty and the known impact on demand we don't know what that number is going to be clearly that will have some impact why are investors willing to look through that weakness >> one is that the fed has been generous that adds to short term

productivity when the economy does slow down, that impact will be nasty. is that the mechanism you are worried about. >> odd given the data over the past couple of months. the u.s. corporate margins will encourage reduced hiring and reduced cap ex it has been reasonably weak but will continue to come down that will lead to a corporate-led slow down seeing deceleration as well a story for the second half of the year rather than the first half

a year is a long time. >> thank you for this. the head of fixed income research our u.s. colleagues will speak to new u.s. labor secretary at 19 cet. the euro has sunk to a four-month low after falling 3.5% in the worst drop in over a decade trade tensions, brexit and the coronavirus has weighed on some of the biggest manufacturers trade data for december was also weak with exports rising while imports fell for just a month. just ahead, virgin sport with a challenge to get from the work place to the wilderness do you have what it takes?

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welcome back i want to bring you to a press conference in hong kong right now. the chief second has been

speaking and now other members of the leadership team there are speaking let's listen in. >>. >> translator: for the past several days, on wednesday, 5 of february, the cdc announced those from the main land will see mandatory quarantine measures reducing the risk of infection. the new measure will take effect at midnight on the 8 of february we'll focus on all the people returning from the main land including hong kong residence and passengers from other countries. upon arrival, they have to receive 14 days of mandatory

quarantine for those who entered hong kong through other places, they will be subject to the same arrangement. all people entering hong kong will have temperature taken and have to be a sim tsymtomatic they will be subject to 14 days of house quarantine. these people must wear a mask around the clock and they are not allowed to leave hong kong any breach of these requirement is an offense. on this requirement of the last

six months the hong kong residence has been arranged to stay in the hotel. subject to quarantine in those places for those who refuse to accept quarantine or if they cannot be put, they don't have accommodation, they will be put into quarantine in temperatuora residence given by the government given health care kit and they should minimize contact with family. they will be required to report temperatures daily >> that is a live conference in hong kong on the latest measures to combat the spread of the coronavirus. we have got news from taiwan in

terms of actions they are taking they will suspend most flights from mainland china and continuing on. the flight ban will be enforced until april 29 so quite a long period of suspension there from taiwan let's talk u.s. politics inconsistencies and potential errors of the iowa caucus found dozens of faults calling the accuracy of the results into question it did not produce a clear winner the pete buttigieg and bernie sanders in a virtual tie. let's look at u.s. futures a solid day of trade yesterday for wall street as investors shrug off the fears.

we saw record closes for the s&p, the dow and the nasdaq. more companies have now reported this quarter more than 70% have beaten expectation. it has been a strong earnings run. now look at u.s. futures it looks like we'll see a bit of a pull back. the dow set to open nearly 100 points lower the s&p 500 looking at a muted start as well. and looking to that nonfarm payroll report from january. "worldwide exchange" is coming up next.

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it is 5:00 at cnbc global headquarters your "five@5." breaking news of a ceo shake-up at a major bank. >> potential end to this win streak waiting for an end to the jobs report. >> and no sight in end, the death toll rises from the coronavirus. >> ceo says to expect profits sooner thate