bric.t created that term, it was to try and demonstrate to people about their rising economic importance. it was not to suggest people should invest in bric funds or any other kind of fund. however, i don't want to go too far the other way. i think the best investments of the past decade and the next decade and beyond probably relate to things going on in all these countries because they are the ones that are increasingly shaping and driving the world. not necessarily directly in these countries, but other international countries that can do it better than any of those or might not necessarily just be the equity market, but i think because they are becoming economically more and more important, they are the heart of the best international investments even though there's a subtle difference between that and the investing in some specific fund or such. >> let's move on, then, from brics to mint. we look at the four nations, if you had to put your or your clients' money in one of those four co

but car sales dropped in bric countries last year, india down nearly 10% alone. there is a new group of emerging markets that could drive the auto industry before, but going beyond bric may be a bumpy ride for mayor car companies, especially the american big three. >> reporter: as auto sales in bric nations stall, the next frontier appears to be the so-called future 15, countries in asia, the middle east, south america, and north africa. expectations of economic growth mean sales could reach $14.5 million by 2020 but winning the race to these new consumers will not come without steep challenges. for starters many of these new markets already have established players. >> the governments in smaller countries tend to favor local car makers or big car makers that got in there fast and have relationship with the government. >> in north africa, french car makers dominate. and in southeast asia japanese consider companies control. toyota has built production in places like malaysia and thailand. >> toyota has five or six different brands. so the big players in asia are

now russia is of course one of the bric nations and dabbles is a great opportunity for russia to come here and warm up the internet. no image of course you've got an audience influence and power wallets now one of the themes this year was a loss of trust in the banking system so with russia having revoking thirty two licenses from its banks in just six months i caught up with the head of the t.v. the second largest lender in russia and i asked him about the clamp down if you take even the government for me poor before prepared before this meeting one of the weak point of for a russian unless the player meant was mentioned the relative weakness of the russian banking sector and this is because we do we still have quite a number all very weak financial institutions and banks so we are very much the porting the polish so the central bank i mean the those banks of the it was a i think thirty licenses with the ruble drawn these here it's only represent one percent of the banking of the people to all the retail deposits and their asses so he doesn't very much effect the. the banking sector

those countries are ready to take over from the brakes i absolutely hate to describe it as the new bric but it's its own thin you know but i think it has an equally valid you know state of being if you look at the countries these are countries that you cannot afford to ignore in the future you can't ignore indonesia or turkey with this director receives all mexico on nigeria because these countries need. israel will be the fourth largest country in the world by twenty fifty it's going to have a huge market. has vast resources you look at indonesia the same thing a large population big market in the future it's going to be powerful turkey you know has its characteristics of the in both the europe and asia you know it's very strategically important and mexico of course is not as a middle income country at the cutting edge of several of the things that brics are meant need to do well in terms of social protection and so on so yes i think this group it has its own dynamic and we're excited to be in it. now russia is of course one of the break nations and dabbles is a great opportunity for r

what happens to the brics?il is way down, china is still down and even india is slightly down and there's concern about the elections there coming up. >> is there greater optimism in the g-7 compared to the bric countries? >> as a whole, there is, yes. >> what is behind this momentum shift, do you think? >> well, i think what's happening is we're seeing a resurgence of manufacturing in the g-7 countries. we're seeing countries focused on their own economies and how they can improve. we're seeing energy getting stronger, health care. the automotive industry, when we talk to clients around the world, all the parts manufacture, they're seeing a rebound in their economies and they're locating their factories not just in china any more but all around the world. >> it's not being close to the markets, is that what it wants to do? >> yes. >> how has sort of the federal reserve tapering been perceived, as well, do you think? >> it's positive but it's not a complete cutoff. it's a gradual move. it's seen as a result of

important and mexico of course is not the middle income country at the cutting edge of several of the brics a mint need to do well in terms of social protection and so on so yes i think this group it has its own dynamic and we're excited to be in it. now russia is of course one of the brake nations and dabbles is a great opportunity for russia to come here and warm up the international image of course you've got an audience of influence on our wallets now one of the themes this year was a loss of trust in the banking system so with russia having revoking thirty two licenses from its banks in just six months i caught up with the head of the tb the second largest lender in russia and i asked him about the clamp down if you. will the government for many poor to be prepared before the speech one of the weak point zero for russian and west employment was mentioned the relative weakness of the russian banking sector and this is because we do we still have quite a number of very weak financial institutions and then just so we are very much to putting the polish over central bank i mean the buildin

these brics in the wall seemed to be crumbling. >> if you travel to these countries -- is a proactivetrategy. you haven't indonesian financial anister -- you have indonesian financial minister declaring that a little bit of the crisis would be good because it would give him a mandate for reforms. you have i posco minister saying that we will have subpar growth. dia's ministeri saying that we will have subpar growth. i noticed that seven regions in china have lowered their for crest -- growth forecasts by one percent. the risk is that this will spill into europe in terms of less export. has been from the likes of germany, france, spain, even the u.k. >> what is the read from the credit numbers out of china? theit growth declined in second half by the most since 2003? that is a good thing -- what is the impact on growth? >> it is a good thing for the balance. i think what is most interesting in terms of pricing the shanghai composite and also overall growth is that in these conditions where you see slower growth, the lyrical lead -- the political leadership is concerned about lower grow

rest of the davos we've got the european parliament g elections what's going to come out of those the brics club as well brazil russia india china is instead a club doesn't really exist anymore but you know what everyone is waiting for mr sun rouhani as well as israel mr netanyahu people want to know if they're going to be communicating with each other and if mr rouhani is going to be able to woo some investors so as you can see it is a part agenda here in davos plenty to concern ourselves with stagnate growth being top of the agenda ready in terms of the thing it's all about five years on from the financial crisis what kind of an economy are we dealing with now that is the question so it's all about challenges going forward. the planet's richest eighty five business men control as much wealth as a half of the world's entire population this according to a new report by oxfam presented at davos max lawson who's the head of advocacy at the charity organization a bit skeptical about any progress being made in the annual forum despite their proclaimed goals you've got people having more money t

there is a great divergence between brics and other countries. >> does that mean we will continue topper prices? >> right now, we are in a broad- based bottoming pattern. there is so many mixed signals. when you look at supply, this is something we have not heard in so long, chilean copper output in november was 7.5% better year-over-year. on top of that, there is also supply of supply and if i had a dollar for every time i heard this is better than last year, i would be wealthy. it is hard to say. concentrate is in surplus. oncks are being drawn down the refined and as judged by shanghai, london, and new york but there is still a lot of unrefined copper behind that to fill the gap. at best, i think prices will be stable. price action will be hard, maybe partially stable at best. >> in december we saw a little pickup in copper prices but many people said that was due to short covering. do you think there is any more steam left in a short covering rally? >> i think any kind of rally above 345 in the march contract, we will start seeing selling. i think the shorts have all been squeeze

some and russia has gone up from one hundred twenty to ninety second it's now the easiest of all the brics for doing business according to the world bank whereas before it was the hardest place to do business but we need a lot more of that if we're going to get back to you know four percent five percent growth over. i mean i think you russia is one of these unique places where there is there's really no fine line between the government in business any longer and i think this this is a problem because you have a situation where the government can decide whether your company succeeds or fails whether you go to jail where you get out a deal i mean there's there's there's no you could you see used to be able to say there's a fine line between government and its role in the economy but here is not the case there's much more privatization needs to be done and you need more well they said when the market conditions are i understand along ok being i mean again you go back to the stories of the nine hundred ninety s. when things were sold for a song and so there's a quite a bit of a sensitivity let

the dive also we've got the european parliament g elections what's going to come out of those the bricsclub as well brazil russia india china is instead a club doesn't really exist anymore as well as our surveillance again. knology a top topic to say it's all going on there's plenty on the agenda but you know while everyone is waiting for mr hassan rouhani to turn out as well as. mr netanyahu they are expected to arrive here in davos of people want to know they're going to be communicating with each other and if mr rouhani is going to be able to invest as soon as you can see is a pattern he had to be to concern ourselves with stocks that great big top of the agenda ready in terms of the thieve it's all about five years on from the financial crisis what kind of an economy we dating with now that is the question what about challenges going forward. that was artie's katie pilbeam reporting. millions of people are hooked on the smartphone game candy crush the makers of these super popular and addictive game have trademarked the word candy that's right the word candy has been in the dictiona

of the dive also we've got the european parliament elections what's going to come out of those the bricsclub as well brazil russia india china is instead a club doesn't really exist anymore as well as that surveillance again. knology a top topic to say it's all going on there's plenty on the agenda but you know what everyone is waiting for mr sun rouhani to turn out as well as israel. mr netanyahu they are expected to arrive here in davos and people want to know they're going to be communicating with each other and if mr rouhani is going to be able to woo some investors so as you can see it is a packed agenda here in davos plenty to concern ourselves with stagnate growth being top of the agenda ready in terms of the thing it's all about five years on from the financial crisis what kind of an economy are we dealing with now that is the question so it's all about challenges going forward as. that was our a tease katie pell being reporting and still ahead here on r t the makers of the candy crush saga have a trademark the word candy is a sweet deal for candy crush but what does it mean for

this is not the old brics paradigm. >> brics story is over. emerging markets are being broken up into natural resource driven economies like brazil which are suffering from inflation and these new consumer-driven economy that is have take. the next leg up in growth. you can play it in mexico in china, you can play it in poland as you suggested. one thing we talked about earlier, bob my favorite emerging market play in the whole space right now is actually not emerging market at all. it's spain. >> spain? you think spain is an emerging market? >> it's the best maeshlemerging market for investors. >> why is it an emerging market? >> if you think of where it was three, four years ago, 25% unemployment, high deficits old labor laws. they have been forced to get rid of those. their industrial economy is turning around. >> spain as an emerging market. kelly, get back in. >> currencies are such an important part of the story anytime people invest outside the u.s. in fact they can be entirely responsible for the gain or loss, forget what the fundament

. >> i just got to point out, out of the four bric nations, brazil, russia india, and china, india is on the year whereas we're seeing major movement in -- >> policy accountability. >> inflation dropping for the first time in five months. stabilization in the rupee. that's something -- >> the last time around it was the rupee that had everyone worried. >> i think what's really important is emerging markets were one of the worst performing asset classes last year and we really haven't gotten capitulation, and i think what's happening right now is going to give us an opportunity to actually get a bottom in our markets but also maybe a buying opportunity in emerging markets as over the coming weeks we actually finally get that capitulation through investors. >> okay. hold that thought, everybody. i want to bring in "fast money" steve grasso just off the floor. steve, as we waited for markets to settle it looks like 318 points off the dow. what do you make of it 1234. >> in the middle of the day when we had that touch or that break of the 50-day moving average, to touch on something mary

bric economies that were supposed to lead us out of the economic malaise we have been in. >> shanghai, china slowing down. south africa, brazil, a lot of countries supplying raw materials to china. if they don't have as much demand there, it's a real problem. let's take a look at what's happening in the u.s. markets. bring it back home to what it means for you. we have currently got the dow accelerating its losses, down by 235 points right now. goldman sachs' ceo lloyd blankfein spoke about the merging market sell-off earlier today on cnbc. in short, he says over the longer term, there is still big opportunity. let's take a listen. >> somebody said you take a position on the emerging markets and you can't change your mind for fill in the blank, one year, five years, i would be long, not short. doesn't mean i'm going to feel good. sure, in the long run you have to bet on growth. you have to bet -- you see, you know, growth, education, mobility in these countries, you know, basically the flattening of the world has given tremendous opportunity in these countries. >> lloyd blankfein, one

also on tap on "street signs," the goldman sachs strategist who coined the term bric nations will giveideas right now. after a terrible start to the year, what is wrong and maybe also right with retailers and who can still win? >>> and we want to hear from you. who do you think is the

>> if you're going to go for bric countries you have to make sure your currency is weak.y fluctuation really hurt their bottom line and also, the german consumer did not save christmas. it was a lot of talk among german retailers heading into this christmas season that the germans would spend more. from these figures, there is an indication that they didn't. in line with estimates, overall down 3.3%. , puttingare want to do a brave face on. offnew financial year got to a solid start in spite of this challenging economic backdrop. soft christmas sales prevented a better development. revenue down 1.9%. germany, downin 2.2%. that is what jumps out at me here. the german figures were down. the cash for kerry business was up a little bit if you don't have strong growth in germany which is 40% of metro's revenues, expanding abroad with a strong euro is a dicey proposition. we may see something similar when we get carrefour's numbers litter in the week. there has been speculation ahead of these numbers about whether investors are putting pressure on the business to sell assets.

. >> we talk about elections as a turning point, possibly for bric countries.our biggest concern? does it mean that we are going to see more m&a in the banking sector? elections,erence to the expectation is a stable outcome. if we get a stable outcome that is good for india. if we do not, that could lead to instability. we are seeing a pickup and advisory business. indian banking will require some consolidation and strength. some new banks might come in, plan to open the banking system in india. have 100have fun, you million dollars to invest. you can put it in indian stocks, u.s. stocks, bitcoin, picassos. 50-50 between global stocks, u.s. and india. >> why are you bearish on bitcoin? >> the question is how legitimate the currency gets, countries like china set it -- accepted as legal tender. on some level, it is creating money. how do you inshore it does not create new money without global monetary controls. >> thank you so much for joining us. uday kotak, founder of cuts at mahindra bank. and matt miller. guy, more interviews coming up. >> really looking for

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when we look at the data, we see that 90% of all fdi projects from the bric's economies have gone into manufacturing and services and not into fm resources. and that's really massive here. because what this tells us is that these economies, they believe in the long-term opportunity of africa, much less the short-term returns. >> so what can western multi nationals do to get back in the game and compete better? >> well, there's various strategies they can implement. what western multi nationals can do is highlight the service continent. caterpillar has done that successfully in mon goal la. if a truck breaks done in rural mongol mongolia, they can fix quickly. that gives them an advantage. there are products that are -- in the market, not just what they would sell in the west, anyways. for that, they should take advantage of the technology revolution that is currently conforming development in africa. samsung has been doing as they've produced a whole range of devices made for africa. for example, medical devices that allows doctors to conduct remote patient diagnostics. so if there's s

there are some issues regarding the bric market where it seems it is slower than what we are used to. are still some issues regarding brazil as well as india. so it's something which is quite complicated and europe is not yet taking off and we don't expect europe to reach the average of the industry or the gtp growth. so we have a contracted picture. africa but not the big market that has been doing extremely well. as well as the gulf countries. >>> pimco suffered its biggest annual loss since 1994 according to data from morning star. total return loss of almost 2%, compared to gains of over 10% the previous year. andrew, if you want income, you say you want to look to income, not yield. explain that. >> historically when people find that income in their portfolio, it's from traditional sources such as conservative fixed income, government bonds and things of that nature. >> first of all, within fixed income, i think it's important to spot and this is tough for people because you have to move down on the risk spectrum as you age and move down the requirement. but the reality is you ca

international economy recovers stimulus will once again be in plague place for emerging economies, such as the brics. we only accelerated in the recent past. with the american recovery, which seems to be consolidate, some level of economic recovery for europe as well as for japan and the uk, you may possibly see recovery. and probably also from china which will continue to grow by about 7%. india, which will grow by 6.5%. >> do he see both for further follow tilt this year? you're talking about a u.s. recovery, by that has not impacted tapering and tightening of u.s. rates. could we see a similar effect this year than we saw last? >> translator: tapering causes some volatility in exchange rates. hahas started and started in ma last year, i do want believe we will see a lot more than we've seen. >> you're fighting high inflation. analysts believe we could see rates as high at 1 1.5% this year. that's going to have an impact to consumer demand. that's going to have a huge impact, isn't it? >> actually, next month, we'll see the first tapering take effect and subsequently it will depend on the performa

finally, the so-called bric nations, including brazil, are moving backwards. brazil plunged 14 places to 114 and is now judged as being among the mostly unfree countries on the index. those are the main findings. i wanted to hit the top ones. there was a lot in there. now i want to sort of moved to the discussion and get the reactions of our panelists. i am just going to introduce all three of them and get it over with and you will come one after the other. the first speaker will be derrick morgan, vice president for domestic and economic policy here at heritage. he was promoted to this post in 2012 after 2 years as chief of staff for the president of heritage. he was a policy expert on the republican policy committee in the u.s. senate and before that he worked for 4 years as a staff secretary to vice president richard b cheney. next is stephen moore, editorial board number and senior economics writer for "the wall street journal." he was the founder and former president of the club for growth. over the years he has served as a senior economist on the rationa

revenuefvenues in the bric countries decreased 14%. that's 11% constant currency.ncluded, continue to be a trouble area for them. that is going to be an issue for a number of enterprise players as we see this earnings season play out most likely. some of them some of the smaller ones have been able to buck this trend. but some of the big u.s. companies having trouble not only in china but other emerging markets which are seeing a slowdown. that's going to be an impact on revenues for the rest of them. >> shares are climbing a little higher, up 1.5% despite those headwinds and those important markets you cite. dan, i wonder how we can think about this potential sale of the server business to a lenovo a decade ago. how that might fit in with the headwinds they're facing in some emerging markets. >> well exactly. ibm has struggled in hardware. it was down 16% on the third quarter, down 11% before that. and they obviously want to get in the higher growth areas which are going to be software and obviously services. so we're seeing that trend tonight as you mentioned in