i -- i have a long way to go, i think. and i definitely don't want this for any other family or any other mother. ♪♪ -- captions by vitac -- ♪ good morning welcome to "street signs." i'm julianna tatelbaum with roxanna lockwood tech bouncing back after the january selloff which has the nasdaq on course for the worse since 2008 and vodafone is building a stake and calling for structure

change while they deal with intel to deal with the chip archi architecture. and reluctant second term after lawmakers fail to agree. >> these conditions require one doesn't step away. naturally, these must have other prospects. and we'll be crossing the tensions as russia moves to oil at seven year highs. >> president number one thing that will stop vladimir putin taking action if he understands the costs of the action. this could result in the quagmire he should be well aware of that. good morning the final day of trade for the

month of january is here let's take stock of what we have seen over the last 31 days or so the dow jones industrial average down 4.4%. s&p is down 7% the loser over the month of january is the nasdaq. down nearly 12%. that was the real story of the last 31 days or so the u.s. tech selloff. the question of if this will continue or whether we are now at a point where investors can start buying into the tech names. let's look at u.s. tech in detail netflix which saw the massive plunge in shares after reporting. disappointing growth that stock down 36% for the month. it wasn't just netflix we saw the wider tech complex take a hit twitter down 18% for the month alphabet down 8% microsoft also taking a hit down more than 8%

tesla, the beloved stock, among tech, down 20% that is the picture as we head toward the second month of the year turning to treasury. all of the equity markets linked to fixed income. the ten-year note is trading at 1.7% turning to the european markets. the standout here has been the ftse 100 uk market and only bright point for the month of january up 5.5% uk market over index to energy and financials we saw the oil price rise over the course of the month significantly given the geopolitical tensions weighing on the oil supply outlook. outside of the uk, it was a difficult month for european

equity let's bring in the head of the equity strategy at barclays to help us understand where we go from here. great to speak with you. always a pleasure to have you on the show what do you think we've learned about market positions through the latest market selloff? >> good morning. what we learned is we are in a new regime easing money will force investors between overly benefit from easy money and purely speculative and what it has from the back up. what we have seen in the last couple weeks is mostly the highest level assets they sold we are seeing some of the tech stocks and that is shifting toward the old economy part of the market which has been less exciting the last couple years, but still has more support and

less impact from the liquidity >> emanuel, we are part of the way through earnings season. one of the interesting features is the companies that have disappointed seem to be getting hit hard on the other hand, companies are not benefits hugely. what is your take on earnings season so far and what can we take away on that market to action >> january was indiscriminate. the market was binary and we have growth stocks sold and value have other forms i do believe the reportings will force investors on less factors.

so far, the early numbers are good we are seeing a majority of companies estimating in the u.s it was indicated in the last few quarters with this cycle and normalizing to some extent the market overall numbers is important to put the selloff in a fundamental back drop. for now, we do find earnings in a somewhat reassuring position it is not the end of easy money, but earnings from the last two terms tell us growth is find and dividends is okay. overall, the corporate sector is providing stability to the market >> looking back at the month of january, the uk market stands out as the key out performer ftse 100 up at this point.

what do you think of the uk versus the rest of europe for the year >> it has been for a long time it seems it has been perfect uk is a value difference we have a lot of banks that is part of the value in the last couple weeks. the uk market has defensive sector with utilities. to meet value composition to the market with the uk with the cap in indices. we see the key index. it will continue we think value growth in january is highest in years. from here, if we lose the value

growth, which in the uk market short-term will struggle than last couple indices. s>> how do investors place themselves accordingly while there are issues with stock exposed to russia and also plays to be had in basic resources and energy >> absolutely. a lot of things going on and the focus at the time is growth not a lot of territory along with the situation in russia and crimea is one part of the mix. probably more negative for europe europe is close to the action here you know, it is key for germany and we he are seeing the french.

we are pushing the prices which is a dilemma from a position standpoint, we are seeing a lot of stocks exposed to russia sold in the last couple weeks and the market seems to be aware of the risk. we have to see worsening of the situation and this is a case that europe could be more impacted this is what is happening for the year with the election and under performing with the u.s. that is something to keep in mind it is a bit more of an issue with europe than the market yesterday. we still need to keep an eye on geopolitics which is a risk in the short-term >> you mentioned european under

performance there. in the tech sector, it fell in bear territory it dropped 20% from the high in november what is the way forward for the tech darlings that were favored during the pandemic, but in europe really falling out of favor? >> there are two points. one is the direction of the bull market the fact is the global tech sector is the beneficiary of the financial repression from here, you know, clearly there would be some volatility in the market. probably from here, if it stays, the market will need to leave it more about how much they want to pay for the stock which is on a high multiple. the market from here needs to make a difference from the tech

sector which is driven by liquidity. we need more in terms of the tech which can grow than the rest of the market and which tech stocks with the best years on the back of the pandemic and then struggling to deliver much more growth over the long term look from here with a lot of taking away from space and value. if on top of that, it stabilized and earnings will need to deliver for this stock to justify the high valuation >> discretion and selection. don't ignore the bond market emanuel cau, thank you.

moving on to flight news ryan air with strong bookings for the summer and potential price hikes ahead of reduced capacity the airline posting a narrow loss of 96 million euro for the third quarter and saying it will continue discounting tickets for the coming months. ryan air did stick to the full year guidance expecting losses of 450 million euro. and more activist action in the uk with vodafone the latest target building an undisclosed stake in the uk teleco. now reportedly calling for a complete restructuring with the increased focus on key markets vodafone is due to post quarterly earnings on wednesday. stay with us coming up on the show. after six days, italy's government fails to agree on a

new president leaving a familiar face at the helm that's coming up next.

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welcome back to the program. european equity markets on the mend the stoxx 600 suffering the worse week ever last week. it is up 1.1%. european stocks fared worse than u.s. last week perhaps because of the tension at the ukraine border and u.s. markets rallied hard after the close on friday turning to the regional split. this is what the index is doing. green an across the board. lagging performance with the ftse 100 that is up .30%. for the month of january, uk market out performed the only one of the majors in green territory and positive territory for the month of january. the dax is up 1.5% along with with the italian market.

ftse mib that up 1.1% green across the board turning to the sectors every sector higher except travel we have ryan air stock in focus in the travel sector on the upside, technology getting a bit this morning up 3%. financial services and telecom on the down side basic resources under performing, but in positive territory. i want to take you to italian banks. highest level since 2018 this morning. that comes after the political news over the weekend. to detail that, let's hand it over to rosanna. >> thank you, julianna

italy has reelected as president after the coalition parties failed to agree on the candidate despite eight rounds of voting over six days of stalemate mattarella expressed desire to leave office before the intervention by mario draghi after accepting the mandate as the italy president, mattarella was obliged to put the country first. >> the difficult days of the election in the middle of the greater emergency that we are going through in terms of health and economy and society call for a sense of responsibility and respect for the decision these conditions require one doesn't step away to the duties. naturally, these must have prevalence over other considerations and other personal prospects with the commitment for the hopes of our

citizens >> now we have cladia joining us from milan how are people in italy feeling? >> reporter: well, it was a politically challenging week this week of elections here in italy. there's a saying that comes from the novel here in italy. everything changes so everything can stay the same. this time it isis the opposite. mario draghi and in his post means he can continue working on all of the reforms he has been working on he needed to stay where he was to get those through he needs to make all of the conditions to be in place in order to get the funds coming from the eu. he needs to work on the economic situation. we had strong gdp growth in

2021 the second best in europe. this year will be challenging as we nknow the tensions and energy prices rising. manufacturing has had a good 2021 and can benefit from the backlog in early 2022. the rest of the year will depend how things go with covid and so forth. mario draghi needs to stay where he is. the other thing we can see and needs change and may come because of what we saw this week is politics. we see the political parties having had a very difficult time coming to some sort of solution that was different from mattarella they need to work out their issues and the coalition fighting the center right coalition also needs to work on its political situation in terms of the

coalition and each political party.remained united has been going through an existential crisis we hope they can work through their issues and go through what has been going on and trying to find a common ground in order to face the elections that will be in 2023 in a better political state. overall, it has been a difficult week, but looks like this monday morning things have settled and you see how the market is reacting the market is happy that mario draghi is where he was last week and so is mattarella. >> cladia, thank you for breaking this down for us. let's switch and talk about monetary policy. the federal reserve to opt for a half point rate hike if needed in the interview with the financial times. bostic stands by the call for three quarter point rises in

2022, but says all options are on the table at every fed meeting. u.s. annual inflation rose to the highest level since 1983 last month the index rose 4.9% year on year the data which is watched closely came in higher than expected employment costs hit a two-decade high-rising 4% which was lower than expected. u.s. president joe biden warned of more uncertainty telling cnbc the january figures could fall short. >> if you think of omicron in january and terms of the people out sick, we expect there to be real variation in the data we are trying to look through that the underlying question of omicron impact there is better news we saw unemployment claims and moderation in the data that came out yesterday. we need to be prepared for january employment data that

could look strange >> the bank of england will give a clue how far and fast it will move in combating inflation when the central bank meets on thursday bank of england is the first mover in the rapid global tightening of monetary policy. a hike on thursday would complete the first back-to-back increase since 2004. rosanna, a big week for central banks. bank of england and european central bank it feels like the analyst community is in agreement here the other piece that there seems to be a lot of consensus is the uk labor market and inflation pressures are robust >> they do, julianna i think the markets on downing street are having their cake and eating it with the volatility.

they want the steering and guidance from the central banks of when the hikes are coming and how many it is not his job to guide the markets when the rates rise. the personalities are coming to the front floor now. how much longer can christine le garde hide also brings to mind that bostic. you mentioned him there. tilting toward the hawkish side with the central policy decisionmaker. however, worth bearing in mind, doesn't have a vote. so much to keep our heads around it is the first week of the new month. plenty of data on tap. >> absolutely. with the bank of england are the rate hikes in full focus, but the balance sheet and more analysts talking about

quantitative tightening. the questions about that gathering momentum and due more over the months. you have the balance sheet which could have an impact on markets and interest rate side so much coming up on thursday. i'm glad you are here so we can do it together >> looking forward to this obviously i'm in asia. i don't get to go both in one day. it might be a historic one for the boe. remind viewers on thursday with the packed edition of decision time the boe decision at 13:00 central time and the ecb decision at 1:45 cet. the key press conferences. you do want to join us for that. we'll have fun you are looking at live images from 10 downing street as the uk looks to the crucial gray

report amid the report that could be released this week with a lot on the line for prime minister boris johnson. we will speak with the mp for east conservative party. stay with us

welcome back to "street signs. i'm roxanna lockwood along with julianna tatelbaum these are your headlines european markets start the week in the green with tech leading the charge bouncing back after the january selloff which has the nasdaq on the worse course since 2008. and vodafone is calling for structure change it teams with intel to boost chip architecture. reluctant president sergio

mattarella signs on after lawmakers fail to make agreement on a candidate >> that must have prevalence over personal prospects. and russia helped push crude prices to seven-year highs new sanctions will send a clear message. >> the number one thing that will stop vladimir putin taking action is if he understands the costs of that action this could result in a quarter me quagmire he should be well aware of that. european markets off to a strong start for the final day of trade for the month of january. of course, this comes after a difficult week for traders and investors who were in the european market. the stoxx 600 ended 2% lower for

the week the worse week since late november it was green across the board this morning dax up 4.4%. the italian market is catching political stability preserved with mattarella signing on for a second term. ftse 100 is up .30% after the strong performance from the rest of europe for the month of january. turning to energy markets. wti and brent. the final day of january brent trading around $90.62 a barrel up .70% for the day. wti up $70 a barrel. double digit gains in the month of january with the tension around the ukraine border kept energy prices high >> we're keeping a close eye on all of the events.

plenty of issues and nato urging europe to diversify the energy supply as tension with russia continues to grow. europe is too reliant on the gas del deliveries russia amassed 120,000 troops on ukraine border the russian oligarchs would be hard hit if russia invades ukraine. they will set out new legislation allowing the uk government new business if there is significance from the kremlin. >> from taking action. that is why we are offering to deploy extra troops into estonia. we are providing more air support across the black sea

we are supplying defensive weapons to ukraine to make sure they are in the best possible position should vladimir putin try to stage an incursion. what i'll be an noungsnouncing s sanctions to target russia influence. we need to stop this happening that is our number one priority. >> u.s. president joe biden also plans to move troops to eastern europe soon warning of the distinct possibility of the russia invasion of ukraine biden said the u.s. would not send troops to ukraine meanwhile, lavrov accused ukraine of being pulled into the alliance nbc's erin mclaughlin is live on the ground in kyiv erin, the u.s. and uk and also

parts of european leadership have sdtepped up the rhetoric against vladimir putin we have the united nations security council coming up today. what is expected to go down at the council meeting? >> reporter: well, first, let's talk, julianna, what we are hearing from ukrainian officials. calling on russia to withdraw troops on three sides of the border to avoid a so-called new war. yesterday, we heard from the ukrainian foreign minister in a tweet. saying if russia is interested in avoiding a new war as it says it is, it needs to withdraw its forces and engage diplomatically that tweet marking a slight shift in tone from the ukrainians officials calling out the rhetoric from washington saying the dire warnings that we have been hearing are alarmists causing panic and economic

uncertainty inside ukraine over the weekend, dire warnings from the united states continue. we heard from the university secretary of state saying despite calls for deescalation, russia continues with the troop build up including 30,000 troops from russia stationed in belarus. that said, she pointed to proposals on the table one from nato. one from the united states there are signs that the russians want to engage with those proposals. pointing to a meeting expected to happen or phone call expected to happen later in the week with the u.s. secretary of state and the russian foreign minister now, as you say, all eyes will be on the u.n. security council meeting scheduled for later today. that is expected to be broadcast around the world where the united states is expected to push russia to explain itself

and explain the massive troop build up surrounding the ukraine border russia calling that meeting a quote pr stunt and insisting despite the demands of the west and massive troop build up, it has no plans to invade ukraine back to you. >> erin, in terms of what may ultimately deter president putin or lead to a deescalation, what is the expectation of what could deter him from moving forward with any kind of incursion >> reporter: well, that remains an open question what exactly the kremlin's calculus is here it is up to one person at this point. the next steps that's russian president putin western officials as we heard from the british officials as we heard before me saying it is up

to the west to clearly outline the costs of an incursion into ukraine and that calculus as i said is up to russian president vladimir putin it is worth noting that washington does not believe the kremlin and vladimir putin have made a final decision yet. >> erin, thank you so much for joining us and your reporting live on the ground we hope to get to see your continued coverage this week erin mclaughlin from nbc. cnbc will speak to ukraine's foreign minister dmytro kuleba we will bring you that interview on friday. julianna, staying with the politics, but bringing uk into the picture. prime minister boris johnson will hold a call with vladimir putin this week ahead of the visit to eastern europe. johnson's trip coming as anticipation is fever pitch of the report into lockdown parties

at 10 downing street to get more, let's bring in tobias great to have you with us this morning from the conservative party. i want to start with the culture issues at number 10. is it time in your mind for a military style shakeup what do you make of the former army man putting his hat into the ring over the weekend? >> thank you for having me on. i think it is a reflection of talent in the conservative party. the fact we are discussing about it first before turn to ukraine shows how it continues to distract from the big issues of the day. we are waiting for the gray report to land i think many mps will make judgments once that happens. >> in terms of dealing with ukraine situation. what do you make of the idea

that the uk reaffirming the u.s.-anglo relations could cause further divisions and split with the eu or the uk relationship with the eu? >> you touch on something that is important here. the division across europe which is exposed and taken advantage of by president putin. i'm pleased to see britain and the united states stepping forward and helping to put sanctions together and moving troops, ships and planes to nato countries. offering to visit moscow for meetings these are all tactical responses without an overall strategy. this will not deter putin's behavior moving our tanks, not into ukraine, but a full country away, will not stop an invasion. agreeing to formally meet putin, that feeds his ego he wants to be taken seriously and treated like a super power

again. imposing western sanctions. this falls into his strategy he wants to take russia from looking west and involved and reliant on the west to turn toward china that is, i believe, where he wants to take his country and his people us placing sanctions providing the ammunition he requires to actually convince his people look, we're better aligned with. oil and gas prices will rise if there is an invasion and food prices because ukraine provides one-third of the world's grain we are in denial of the bigger picture. it would make more sense for us to stand up and look him in the eyes and actually place our nato capabilities in ukraine that will deter putin. >> sir, it sounds like boris johnson, the prime minister, is trying to certainly raise the

alarm bells and ramp up the rhetoric against president putin. i wonder how much influence the uk has on the geopolitical world stage at this i'm afraid i'm half american. we look to the west leadership when awe annoyou announce what l not do saying you will not use nato fo forces to stand up to russia gives russia the green light to invade ukraine furthering its agenda. it cares less if there is sanctions. if america steps back, it is up to britain to step forward and rally troops i get the impression that the penny is dropping and people are gaining greater understanding of the wider consequences this is a moment of how we handle this international

change this is our cuban missile crisis we mustn't blink. >> what is the likelihood that russia does invade ukraine >> almost 100% the reason why it hasn't happened now is it decided to align with china a symbiotic relationship of russia providing oil and gas and the military hardware. china providing tech and infrastructure both with a discrustrust and dik of the west. they have not invaded so far because of the winter olympics are about to take place in beijing and china would not want to lose that limelight >> i'm glad you brought china into this. the idea we might be so wrapped up and focused in europe and we would take our eyes off the ball you are vocal. what concerns you so much about china? >> china is reinterpreting the

international rules. it is taking advantage of the weak west to pursue its own agenda militarily and technology. it is likely to overtake the united states in the next 10 to 20 years it will be china's century it will be harder if russia aligns with china as well. authoritarianism is on the rise. you could argue that the rules based order which served us well after the second world war reached its peak after we decided to depart from afghanistan. we need to regroup we have been distracted by covid and domestic events. not pointing in the same direction. russia and china are taking advantage of that. >> minister, the critics would argue that boris johnson is leading into the geopolitical issues to divert attention away

from the scandal within the party and investigations that are going ongoing. how do you describe the mood within the conservative party relative to when the allegations and partygate erupted? >> this isn't good this is watched across the world and frankly embarrassment that we are in the limelight in this way. the leadership and convening power that we know we can produce is not there to the level its required when america, for different reasons, decided to step back somewhat we need to get through this. we need to have the gray report land and understand where the party is going to go and get back to the important issues the world is changing fast in my fview, i posed the question will the world be safer or more dangerous in the next five

years? if it is dangerous, we need to know what we are doing about it. >> going back to the ukraine point. i hear your point about sanctions playing in putin's playbook if we have the further east consolidation of nato and placement of weapons in eastern ukraine, could that be seen as poking the bear? which country lights the match under real invasion? >> how can you poke a bear when you are defending a democracy? we need to stand up. we need to speak the language that putin recognizes. ukraine asked for support. serious support. we are not giving it right now we are moving our tanks, ships, planes around ukraine. we are leaving space for invasion to take place it is part of a tactical move by russia to advance its relationship to china. that is what we need to wake up on the defending democracies around the world should not be seen as

a bad thing. >> sir, thank you for taking the time to speak with us this morning and sharing your thoughts tobias ellwood on the topic of ukraine, we have some fresh comments coming through from the kremlin the kremlin saying uk sanctions threat is alarming for russia and companies. it amounts to a clear attack on business it is likely a cause for concern for financial and business communities because it demonstrates that the uk is unpredictable an kremlin saying the sanctions is an issue with tension because british companies are shareholders in russian companies. putin will respond when he considers it necessary no date set. any attack would require moscow to respond such measures would be based on russia's interests if they are needed these are fresh lines coming

from the kremlin in response to what we have been hearing from the uk and the u.s. over the weekend. we will take a quick break coming up, the beginning of the end or opportunity not to be missed i'm talking about crypto a closer look at bitcoin next which seies half of the value wiped up since the november high

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welcome back to the program. u.s. investors are racing for the final trading day of january in a choppy month for stocks dow jones industrial average looking at a modestly negative start. down 33 points indicated at this point. s&p 500 is flat open the tech heavy nasdaq with a bounce of 91 points. u.s. stocks ended the week with little changed on friday after the rally in the last 90 minutes of trade on friday the s&p climbing 2%. nasdaq climbing 2.5% the overall little change week

on week masks volatility intraweek. slide of risk asset sees bitcoin shed value from the high in november. drumming up fears of the drawn out cryptocurrency bear market anthony abel joins us now. great to have you on the program. you know, over the last couple years talking to proponents of bitcoin, one of the key bull points on the asset, is it would perform as an inflation hedge. it is not working. what do you think of the plunge of bitcoin >> that's a very good point. we're still long on crypto we feel it is a hedge for inflation. a lot of the post-stimulus economy where we see monetary

inflation in multiple economies. certainly crypto is volatile it can be a roller coaster ride. fundamentals are there the policies that are being pursued in multiple jurisdictions have resulted in a degree of inflation. people measure it differently. it is like others view it and it is here to stay. people are looking the markets are looking for a hedge against inflation. crypto is one of those what follows crypto is interesting. digital asset economy. that is where we think there will be fundamental strides made over the next 12 months. >> anthony, the laureate wrote an article about the crypto craze and compared to the global

crisis what do you think? >> that is one we he believe i strongly crypto is a proving ground it has value it isis extrinsic value there are different systems coming through the digital asset economy. they have to mature. effectively it says trading at extrinsic value, you are trading at intrinsic value that space is very interesting and one we are actively pursuing >> regulation is absolutely key, anthony. we think of the development and

adoption of life cycle of the cryptocurrency what is the ban? how has that shaken the asset? >> here is the fundamental truth with the exception every time they tried to quash crypto, it improved the market for crypto when the chinese tried to do it, crypto went up when the russians are doing it, i suspect, putin put a block on it, i understand for cryptos at the moment with what is happening in ukraine i suspect many are keeping crypto alive for a considerable time >> what we're seeing in crypto at the moment is not divorce from central bank policy decision making. it is flights of risk on and risk off appetites in the market can bitcoin or crypto assets ever be divorced from the financial market system? >> no, it shouldn't be we have the system

it has checks and balances it has ramps on and off in particular here. that provides stability. it needs market surveillance to some degree. most societies do not want the proceeds used in their markets to be able to have good regulators is fundamental to the success of the crypto technology from our point of view, we have been watching this space for years. we are great believers in the technology it is still volatile it is getting more stable and it is ma turing as we see with the exposure to the asset class. that will continue over the months and years to come undoubtedly. this is largely speaking from our point of view as a hedge against inflation in the marketplace. as the markets mature and technology matures and assets start to come into the marketplace as as they become more trusted and as inevitably,

they hemature as well that space is increasingly interesting compared to the fee-based economy. that is where the markets are trending. >> anthony, great to speak with you. director of valuable pitch. let's look at markets. two hours into the session green across the board we have the italian market out in front leading the gains up 1.1% we have come off the highs of the morning. the ftse 100 now in positive territory. we are on the mend after that difficult week last week that's it for today's show i'm julianna tatelbaum alongside roxanna lockwood "worldwide exchange" is coming your way next.

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it is 5:00 a.m. at cnbc. here is your top five at 5:00. investors ready to slam the book closed on january. where do we go from here stocks fall and oil on the rise this year. another big week for russia and opec monday morning deal news cloud computing company set to go private. spotify set to