dennis murphy: did you talk to her in the courtroom that day? joe kowynia: yes. joe kowynia: that i love her. you know that we miss her and that we finally got him and hopefully you can rest in peace and we can move on. good morning welcome to "street signs." i i'm joumanna bercetche these are your headlines g7 leaders look for support as volodymyr zelenskyy leads a ceremony in kyiv. and europe trades higher, but u.s. futures dip with the s&p on pace for the worst week of the year. jamie dimon tells cnbc that rates could hit 6%

>> the fed will do what it has to do. it may not be enough i think -- >> 2% inflation? >> i think it will take a while. >> rates longer? higher and longer? >> possibly. europe's economy is worse than expected in the quarter with the gdp contracting in germany. and basf plunges as it posts a more than 600 million euro loss and slashes earnings guidance again good morning welcome to "street signs." today marks one year since russia invaded ukraine thousands of people have been

killed cities destroyed and the millions of people displaced across europe, key landmarks were lit up in solidarity of the country. the invasion drew condemnation from the western world to mark the one-year anniversary, eu leaders said they will not be passive and will hold the kremlin to account. meanwhile, the u.s. announced sanctions against russia president biden will hold a virtual meeting with g7 leaders and volodymyr zelenskyy. and sholof scholz says they will support ukraine as long as necessary and germany will do what is necessary to hold off the escalation we have annette in berlin with more we got the gdp data early today

that the economy contracted by 4 points in the last quarter of the year there has been a tangible impact of the war on the german economy. people are feeling it. industries are feeling it. consumers are feeling it how has that influenced the public perception in terms of the support that germany is providing to ukraine >> reporter: actually there is a wide majority of germans backing the support of ukraine with sending tanks. more than 50% are in favor of doing so there is a very entrenched culture. the ukrainian refugees, more than 800,000 people, did come to germany from ukraine since the onset of the war and have been integrated into various cities this is working very well. today's event here behind me is

the residence of the german president. the head of state although he has a more ceremonial role in germany. this is concentrating on reconstruction and repairing ukraine. the main focus currently from the russian side is to destroy the infrastructure of the country. i caught up with the special envoy from germany to the g7 an who is responsible for the coordination of aid from the german government. i asked what efforts are under way to reconstruct ukraine take a listen. >> we are in a state where it is about repairing and fixing things whenever they are destroyed. the energy grid, the water grid

and also schools or small enterprises. that is what we are doing. sending support when it is needed, but, of course, we need to have a view to the future and to reconstruction phase and that is why under the german g7 presidency, we were keen to get everybody together to form a platform to bring this in the right order for ukraine. >> how are you doing that on the ground hands on? are you working with international companies or sending people from the u.s. to ukraine or working with locals >> we are doing all of that. of course, one stream is through the u.n. institutions. unicef and others. we have our implementing

companies on the ground with hundreds of people still working in ukraine and helping to fix whatever needs to be repaired. on top of that now, we are in the phase of planning for the recons reconstruction >> reporter: germany so far has provided 14 billion euro in aid to the ukraine that makes them the second biggest donor to the country it is not only about military hardware, but as he was explaining, it is about repairing and infrastructure and humanitarian help to the ukrainian people here. also in the ukraine itself olof scholz, the chancellor of germany, today in a video message also was reiterating and preparing the german public that the conflict and war could actually last for much longer

time germany stands ready to keep on helping the country and keep helping through military means ands also through humanitarian help and through training of ukrainians on the military hardware here as well as on the ground in germany. as we were saying earlier, germany has a wide interest that there is no further escalation of the conflict. that is also why olof scholz, at least for now, is rejecting any claims to send fighter jets in the ukraine because that could actually trigger furthestr -- spshz -- further escalation. they are looking to repair the country some people can go home. the volume and how much money is needed is not predictable

because the war is pongoing and the focus is to destroy the infrastructure of the ukraine. >> absolutely, annette the german economy did shrink in the fourth quarter 0.4% contracting in the quarter. this number was revised down from 1.1 to 0.9% clearly the economic headwinds have started to bite the german economy in the data revised this morning for the fourth quarter. the hand over from asia has been mixed the stoxx 600 is up .30% it has been a bit bumpy. we are ending the week in the green. we focus on macro data as well as the individual company earnings getting toward the end

of the earnings season switches to individual indivindices. you see all trading in the green. dax at the flat line very much focused on the macro data basf at the bottom of the dax after disappointing earnings and announcing job cuts. cac 40 in france up .20% the uk with the ftse 100 inching back toward the 8,000 mark up .30%. we had hawkish comments from policymakers in the last day the bank of england saying more hikes are necessary. they are far away from a pivot in terms of stocks, rolls-royce is out performing versus yesterday. bp also doing quite well in terms of the sectors, this is the breakdown. telco and oil and gas up 1%.

0.9% respectively. under performance in the more higher names autos down .70% today. the big focus for investors is going to be on that pce print which is fed's preferred inflation indicator. i'm happy to say that the co-head of the investment management joins me at the desk. let's start with the inflation print today. we had a surprise to the upside. cpi or ppi on or the jobs market data has come in strong. what do you say the expectation going into today's numbers also for an upward surprise for that number >> good morning. probably i think what i can take from the past few weeks is the surprising resilience of the economy and expectation on inflation last year, we anticipated maybe

the worst of the economy having such a spike in inflation and trend of central banks hiking rates. we priced immediately a recession. i think lately the macro data has been mixed and positive and negative let's see. i don't think the fight for inflation is over. every data matters. >> is it possible in your view for the central banks to, so-called, when we dip into recession? i find it difficult to believe that u.s. inflation can get back to 2% when you have unemployment of 3.5%? >> you are right that inflation fight is a tough fight. the difference versus previous years is the central bank's mission is fighting inflation and maybe less focused on not

hitting the economy. >> what does that mean as you say, we have mixed macro indicators coming in the market doesn't know how to price in what the fed does next. they are solely focused on inflation. the fed has a mandate and has to think about maximizing the employment rate. one of the two pillars will have to be to be forsake en. they have to bring back the macro economy? >> that is what the fed needs to do we need to accept short-term pain for a brighter future for the economy. >> what do you think of asset allocation how do you play the market last year was challenging. this year started off with good footing. now markets are beginning to reassess where we go from here with rate hikes. >> i think the big surprise last

year was the bond is back. a boring asset class we have an exciting asset class with higher yields it is not only interesting for institutional clients. you need to look at asset allocation with bonds in mind. cash is an asset class i want to look to everything on fixed income i would favor credit good, quality credit i would step foot in the higher segment with the best in class we tend to favor the sweet spot or crossover you can get a pick up in yield without much risk. all asset classes. we also look for resilience. you know how to invest in clients' money and protect in case of downturn >> i want to come back to bonds and bonds comingn couple weeks s

came on the show if we know the disinflation process started and now is the time to buy bonds is the logical conclusion that was a common theme the last couple weeks we saw the 10-year treasury note move back to 4%. this really just highlights that your entry point on the positions are extremely important. if you bought it a few weeks ago, you would be under water. >> you are right knowing asset allocation, it is also accepting the voluatilityv. at the end, when you look at fixed income, you can look at short-term duration and that gives a bit more security for the market to move or look for medium term. you know you will realize a good yield and accept short-term

vola volatility >> you are looking at credit spread products and venturing into high yields and you mentioned double b how much is a credit trade versus duration trade? >> i think credit has been extending duration investment compared to previous cycles. right now, you have a good mix of duration bets and credit bets at the end of the day, when you are going to the double b it is a mix of both. i think it is different when you go lower with credit with the single or triple c what matters is credit >> i would love to have you come back on the show again and talk more about your views of asset allocation thank you for joining me the co-head of lombard investment. financial leaders are meeting in india for the first

g20 presidency we have tambir with us live. >> reporter: thank you for that, joumanna good morning yes, i do have a special guest with me right here here with the g20 finance ministers meeting in b b banglador. thank you for joining us we talked about global trade and it remains resilient in 2022 and exports increased despite the war. did that surprise you? >> in a way, yes, because we had earlier predictions that were pessimistic. we estimate trade will grow 3.5% part of that is despite the war. now what we see is that what

happens is that while russia and ukraine exports remain depressed in volume terms, other suppliers came to the stream we see countries substituting wheat orrice we see countries substituting with import from argentina or u.s. or eu all of that meant that trade kept flowing despite the shocks. >> russia's situation is peculiar they have been selling energy and food commodities and fuel and other commodities at steeper stance in that sense, the value is supposed to go down and volumes go up and impacting the overall trade balance. that is not happening. volume has gone down and value has gone up. >> volume has gone down because industrial exports are to the

u.s. and uk and others have gone down exports of fuel, fertilizer and food have actually gone up prices have gone up as well. what we see here -- >> that's what i'm saying. these commodities at steep discounts to india and china >> they are selling a lot of that product not the industrial products. those are exports which are halted >> that has been the case. i wonder what this means for your global trade outlook for 2023. >> we are working on the annual forecast for 2023. our economists are crunching the numbers. last year, we had a downgrade outlook to 1% growth many things happened since most importantly the lifting of the covid-19 restrictions in china.

we will need to see how that plays out in april with the forecast for 2023. >> the recovery has not been as inflationary as expected do you think that would support trade? >> that would support trade. there are several factors that point to the direction that we might be increasing that outlook of 1% trade growth again, we need to see. >> okay. i want to talk about the function of the world trade organization the united states is entering a third phase of talks with countries to reform the dispute settlement system. expect all members to have a fully functioning system set up by 2024. are you on track for that? >> let me say having a fully functional system is a top priority for the great majority of our members the united states has fac facilitated a discussion among

members. there are a number of members who feel now is the time to move to negotiations so we will be able to have that mechanism working in 2024. >> what is expected? >> we hope not there is a mandate coming from ministers and that mandate is to have a fully functional dispute settlement mechanism by 2024 >> the other members agreed on the bodies first global trade rules, trade rules reform in last june, which was to do with fish subsidies talks were stalled because of concerns of who chaired d ed discussions. i know it could come up with different disputes to the wto and who is presiding over those

discussions and taking the final call has that been ironed out >> first, in june last year, we agreed on the first fish subsidy agreement. the environmental agreement in the wto. a very important agreement members would like to see more discipline added on to have a comprehensive agreement on fish subsidies. you are right. we didn't have a chair now we do. the ambassador of iceland. he has restarted the consultations. every now and then we have a disagreement, but so far we have been able to sort it out. >> what? >> we have disagreements for sure this was the case of the chair for fisheries and agriculture. you know, after some hard bargaining, it was sorted out. now the consultations have begun

again. >> the big question he with regards to u.s. and china trade tensions and while the surplus in china continues to expand and the u.s. as well as the rest of the world is demanding goods from china when it comes to the wto, it seems like the organization, trade bodies are stuck between a rock and hard place when managing these two countries one against the other. how do you feel about what the u.s. says regarding the wto having a soft economy for china? >> i think the wto has a set of rules which served the world well for close to 70 years if you think about the organization that preceded the wto. now it is true that a number of those rules could be revised and could be more fit for purpose. if you think that some of them are, yes, older than 70 years or

others are 25. the world has changed significantly. >> do you find it difficult to manage the two countries with the wto? >> the wto is an organization driven by members. so if the members are quarreling, that is more difficult to make progress having said that, the reality is that, you know, not everything is fighting. there are areas of disagreement. there are also areas where the interests converge when you think a topic of climate change, there are a number of areas where the interests are aligned. the wto is about managing -- >> two of the largest economies in the world are not willing to accept your verdict and the u.s. believes that the wto serves to shield china's non market policies china attacks the u.s. calling it a unilateral bully in the

process. you know, how do you resolve that matter? >> it is through dialogue and dk the tariffs in favor of china. the u.s. appealed that decision. you have appealed and counter appeals. how do you settle it >> you have a mechanism for settling disputes that is not functioning properly it is not functioning becausewe don't have the proper body we need to address that particular issue you know, the wto or world trading system has confronted this dispute before. in the 1970s, john jackson wrote the system was going through the most challenging crisis because of the sluggish economy at the

time and the difference of economic systems among members >> nowit is 2023 >> after that, the wto was created. it takes governments time to sort these things out. some of the differences are profound and important and not solved in a moment i see the glass half full because it has been done in the past you know, the wto has needed to tap into new sources of growth and manage tension and address global challenges. many reasons why the wto is needed >> i can say we wish you the best with the dispute settlement thank you very much for joining us on cnbc joumanna, back to you in the studio >> excellent thank you for bringing us that informative interview. on the sidelines of the g20 meeting, tambir asked the minister what drives his

confidence for the bloc's economy. >> we look back for the summer or autumn what is the perspective of our economy the discussion on the risk of blackouts for energy and the word was stagflation and an expectation of deep recession. so, we will not enter in this kind of very horrible situation. we can say the economy is doing better than we expect. this doesn't mean paper t-- mea that uncertainty is over we will have a growth of 8% next year that doesn't necessarily happen. after 2022, it was surprisingly strong with the european union having stronger growth than u.s. and china.

>> and tambir asked janet yellen if the u.s. is keeping communication channels open with china despite the tension. >> president biden and president xi agreed strongly that communication between our two countries is necessary and desirable in terms of our own relationship more broadly to the sake of the entire globe and there are many areas where we need to cooperate and work together to address global challenges i have had a meeting with my chinese counterparts it was constructive. one area where we have traditionally communicated and we agree it remains important to communicate concerns with the

macroeconomics and financial situation in our own countries and in the global economy more generally. as we head to break, we leave you with images across europe as buildings are lit up in the colors of the ukrainian flag to mark one year of the war. and volodymyr zelenskyy speaks as he the rallies support. >> translator: we will fight until the end at sea and in the air. we will continue to fight for our land whatever the cost. we will fight in the forests and in the fields and on the shores and in the streets >> against all odds and doom and gloom, all scenarios, ukraine didn't fall. ukraine is alive and kicking in britain, the king is an air

force pilot. in ukraine, today, every air force pilot is a king.

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl!

woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

welcome back to "street signs. i'm joumanna bercetche these are your headlines ukraine marks a somber one-year

anniversary of the invasion of ukraine by russia. >> europe is a unity of principles and allegiance to principles principles shape geography this is a truth that putin has never understood europe trades higher, but u.s. futures dip ahead of key inflation and consumer data with the s&p on pace for the worst week of the year jpmorgan chase ceo jamie dimon believes rates will hit 6% >> they will pause it may not be enough >> likely 2% are you there? >> it will take a while. i don't think. >> rates longer? higher and longer? >> possibly. and europe's economy is worse than expected with the gdp

contracting by 0.4%. and basf plunges to the bottom of the stoxx 600 with a 600 million euro full year loss and slashes earnings guidance once again. welcome back to "street signs. today is one year since the invasion of ukraine by russia. over the past year, russia was excluded from a number of international organizations while the eu and u.s. announce sweeping sanctions

g7 leaders imposed a price cap of russian oil after the prices surged after the invasion. the u.n. is calling for withdrawal of troops and cease-fire the council will meet today to mark the anniversary and volodymyr zelenskyy is rumored to join with a special address nbc's jay gray joins us from poland jay, give us a sense of the mood is like on the ground. >> reporter: joumanna, we are at the border crossing here the busiest roscrossing by far. more than a million refugees have come through the gates. part of the 10 million that left ukraine since the start of the war. so many of those still uncertain of where their journey to safety or security may end right now. the shelters still have hundreds

in poland and across poland and you have refugees moving into other areas of europe and across the world to be quite honest a lot of them, in fact, most we spoken with want to come back to ukraine, but don't feel it is safe 86% of refugees are women and children most of the men staying behind to fight that fight is expected to escalate as we move into the second year of the war many of the military analysts are saying they believe the fighting will become more intense along the frontlines over the next several months which we also believe will drive more people across the border and lead to more problems. many of the communities here in poland, specifically the capital, warsaw, pushed to the limits right now budgets have been wrecked by so manyi moving in

city services have been pushed to their limits with what they can do they are looking for help, obviously, from not only across europe, but around the world the u.s. specifically. we know the president was in this area just recently and committed to staying behind ukraine in every way possible. joining the other members of nato's eastern flank and saying they will continue to provide weapons and ammunition and radar systems and all of the things that they believe ukraine needs to continue this fight and to ultimately win russian president vladimir putin has said he is not ruling out the use of nuclear weapons in ukraine. that is something he said since the start of the war most from the west believe that is simply to be sabre-rattlsabrg

if it does happen, it changes things dramatically. officials in poland say the border right now is a revolving door you have families that continue to come in and looking for safety and looking for a place to stay and then you have people moving back into ukraine many with much-needed supplies and others going in to join the fight on the frontlines. >> thank you very much for your report stay safe out there. we are going to switch on and take you to live pictures coming from germany right now where the president issing giving an address to cremember the invasion >> translator: we all remember the short video which shows you

sitting there with so many women and men without food and medicine and by the end,s alsoend, also ammunition then we hear your voice and you are singing. you sing of the fight for ukraine's freedom. your country's freedom millions of ukrainians have st stood up to the russian at attackers every single day their courage and their belief that the independence and self determined life and freedom must be there and it is a powerful force. these men and women fear for their lives every day. they fear for their loved ones, but they fight for their country and free ddom every day. we germans admire the courage of the people of ukraine and we stand in solidarity with them. we are helping them to defend

themselves we share in the suffering of millions and we mourn their dead. honored guests, i would like to ask you to pause with me for a moment to remember the victims of russia's war of aggression against ukraine. please stand >> that was the german president marking the one-year milestone since the russian invasion of ukraine. a moment of silence now. he is talking about how important it is that the western world keep up with the support of ukraine in this fight for the preservation of the borders. 18.8 million ukrainians left the country in the past year according to the refugee agency unhr our reporter from nbc was just highlighting

most have returned, but over 8 million are presented across europe and millions more displaced within ukraine the unhr is assisting refugees all over the world and tanya caught up with the high commissioner and asked about the biggest concerns >> we're particularly concerned about the approximately 8 million refugees in neighboring countries and beyond and, of course, the 5 to 6 million people that are displaced inside ukraine. it remains the largest displacement crisis in the world. >> you met with volodymyr zelenskyy. what are his greatest priorities in terms of humanitarian aid and support? >> he thinks of recovery of the ability of people to respond to adversity very quickly he thinks of this also in order to create conditions for people to return. we have just conducted some surveys. we do it on a regular basis.

80% and perhaps more say we want to go back except conditions are difficult security and otherwise president volodymyr zelenskyy wants to assure those conditions are ready to receive people back. >> you said unhcr is looking for access into russia what cooperation have you had, high commissioner, from the government there and from president putin? >> we had some contact, but very limited. permissions are given. there is a system for that it is rather slow and cumbersome the offer is on the table. so far that response, that request for assistance, has been limited. >> what is your message to the ukrainian people and refugees displaced by this war? >> they are not alone. i hope they know, but it is good

to use an anniversary to remind them of that and remind ourselves not to forget. >> what would you say to president putin directly >> i hope for the sake of the ukrainian people and his own people he will reflect and offer possibilities of a just and rightful peace >> the united nations children's fund has been supporting children affected by the war in ukraine. tanya asked how young people's lives have been disrupted. >> ukraine is a challenging situation for children over 1,200 children have been killed that we can verify. many others with lives disrupted. many are killed. parents are away many children are living in neighboring countries. conflict, war, it is the worst enemy of children. it makes their lives difficult all of us have to do better in

the world and try to stop these conflicts before children suffer any more than they already are also coming up on "street signs," the incoming managing director in japan says rates need to stay higher for longer it's hard to run a business on your own. with shopify, you have everything you need to setup your online store, to connect with customers, and to bring your dream business to life. because when we work together, the future is bright. these days, your customers are not just down the hall. they're all over the world. so cute. it doesn't have to be lonely at the top. join the millions to finding success on their own terms. start your journey with a free trial today.

welcome back to "street signs. company news for you basf will cut jobs in europe and lowered the earnings forecast again. the company posted a 627 million euro net loss for 2022 and scrapped the buyback program you are seeing a big reaction in the stock today. and holcim with 29.19 billion swiss francs compared to 24.4 the building materials company posted a beat and 14% increase in dividend.

they announced the current ceo will be proposed as the company's chairman with a new ceo appointed in the future. the ceo told cnbc the company is well positioned to handle price pressure >> there is no recession at holcim we have strong order books there is a softening in europe ever since the first half of last year and we have strong demand in the north american market we look forward to a successful year. switching up a bit i want to bring comments from the japanese prime minister kishida. this is in remarks that the bank of japan governor nominee mr. ueda when he gave testimony to the lower house and kishida is responding the nominee is approved. we want to meet at the earliest

day to confirm the coordination. we are aware of government n nominee's comments saying no need to tweak the policy government does not have discomfort over the government bank of japan policy statement those are lines coming through with respect to the new appointee to be the bank of japan governor ueda. his remarks were being looked forward to i want to flag the japanese cpi hit a 41-year high 4.2% increase on the year in line with forecasts. it does pile more pressure on the central bank to tighten the monetary policy. the incoming governor told lawmakers that rates should actually remain low. >> translator: i believe the current bank of japan monetary

policy is appropriate. it is necessary to maintain easing and support the economy in order to create an environment for companies to raise wages. >> certainly a bit disappointing for those hoping for japan or the big japan trade for an imminent removal of the ycc policy or a hike in interest rates. if you listen to the language delivered by the bank of japan governor overnight, they are indicating for now, planning on staying the course and following in his predecessor's steps that is something to watch out for. here in europe, we are anticipating that pce inflation number like all investors around the world. there is whispers for upside print north of 0.5% month on month. that is something to watch out for. it would be another indicator that u.s. inflation is proving to be sticky that will have ramifications on monetary policy. that will be a key point for investors to watch out for

later. in terms of europe markets dax dipping a bit. gdp numbers at 0.4% revised for the year that is the reason the dax is dropping and then basf with the company down 3%. cac 40 is up .20%. ftse 100 is up .30%. the likes of rolls-royce is doing well as well as bp this is what they look like for the week the only green index for the week is the swiss index. up .30%. other indices ending the week in losses ftse 100 is down .90% for the week one of the names that drags on the index this week was nat west the dax down about .80%. let's get to president

volodymyr zelenskyy who is speaking to mark the one-year invasion of ukraine. >> translator: occupied by russians in mariupol, there are no buildings russia did everything to kill everyone there we almost had 1.5 million people living in mariupol destroyed up to 90%. remains of buildings were that burned down and destroyed by russians are being destroyed and done away with the rubble is done away with these ruins are turned into rubble that is to be used for the construction of new roads. we need to do everything in our power to not allow russia to occupy ukraine and our neighbors

and turn our cities in rubble. do we have the resolve and the power? yes, we are empowered. we are in unity. we stand together. we are capable to end the russian aggression this year from the very beginnings, the minutes of the russian invasion, germany stood by our side. germany helps us protect from terror from russia germany will be on our side. germany will stand by our side when we rescue our cities from russian terror mr. president, mr. chancellor, german people, today, now is the time to restore peace with our courage and with our weapons and

to create a security for all no one will attack us. no one will attack freedom if he knows that the free world is resolved enough to defend this freedom. no one will repeat the 24th of february of last year. if he knows on the whole of territory of ukraine, there is no more aggressor or occupier. we can make sure this happens. together with you. together with everyone >> that is president volodymyr zelenskyy delivering a speech to mark the one-year invasion of ukraine on russia. i'm joumanna bercetche "worldwide exchange" is coming up next. snoring. so, you can both stay comfortable all night. and now, save 50% on the sleep number 360 limited edition smart bed. ends monday. when we started selling my health products online

our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster and we're saving a ton. go to shipstation.com /tv and get 2 months free.

the eagle has landed. that's one small step for man... hey, what's up? uh... houston... we have a situation. how did you get here? you're characters in our video game!

video game? yeah, it's what we do with xfinity 10g. it's like, you know, the best network imaginable. what the heck is that? those are the bad guys. are they friendly? the 10g network, only from xfinity. one giant leap for mankind.

it is 5:00 a.m. here at cnbc global headquarters. here is the top "five@5. we begin with stocks under pressure on track for the worst week of the year as the fed looks for the read on inflation today. futures are lower. late to the game what jamie dimon has to say about the fed and policy and path forward and impact on price stability. one year on. the west doubles down on the financial support for ukraine and the war with russia. this as a third party tries to call for a cease-fire. anti-trust alert justice department is busy targeting tw